The document summarizes a study on the commercial enjera markets in urban Ethiopia. Some key findings: 1. The enjera markets are rapidly growing and transforming, driven by rising women's opportunity costs and urbanization. Over 120,000 people are now employed in enjera making and retailing. 2. Large enjera making enterprises now mix teff flour with imported rice to cater to the growing food service sector, where 16% of urban food budgets are now spent on meals outside the home. 3. This sector generates significant employment, especially for women, and has important impacts on farmers, prices, and urban food security. Further attention and regulations may be needed as these markets

1. FOOD PROCESSING,
TRANSFORMATION AND JOB
CREATION:
The case of ready-to-eat staple food (enjera) markets in
urban Ethiopia
Bart Minten, Thomas Assefa, Girum Abebe, Ermias Engida, and Seneshaw Tamru
International Food Policy Research Institute
17th International Conference on the Ethiopian Economy
EEA, Addis Ababa | July 18, 2019

2. 1. Introduction
 Important changes in agricultural markets worldwide
 One cause of food system transformation: Quick growth of cities and the
emergence of an urban middle class
oGlobally: in 1950 30%; in 2010 more than 50% in cities;
 Impact on food systems:
- Higher commercial flows urban to rural
- Changes in the types of food eaten
- Modern retail revolution
- Take-off of branded and packaged foods
 In this analysis, we look at commercial enjera making and retailing in Ethiopia

3. 2. Data
 Fielded a number of primary surveys in three cities:
1. Addis Ababa; tier 1 city: 3.3 million people
2. Dire Dawa; tier 2 city: 340,000 people
3. Nekemte; tier 3 city: 75,000 people
 Survey (stratified sample) with:
 Mills
 Enejra sellers:
o Four general categories: Large Wholesalers (>5 mitads), Small wholesalers (3-4 mitads),
Retailers, and Gulits
 Enjera making enterprises (EME)
o Three categories: Large(>5 mitads), Medium(3-4 mitads), and Small(1-2 mitads)
 In total, 243 mills, 345 enjera sellers, and 214 EMEs
 Proper extrapolation done for calculation market shares

4. 3. Enjera and urban markets
 Enjera traditional pancake/bread
 Main ingredient teff, but other cereals used as well
oFlour mixed with water and starter (yeast); mixture ferments for a couple of
days; dough forms
 Baked on an electric or wooden mitad

5. 4. Enjera consumption
Food consumption and real per capita expenditures of teff grain and teff enjera,
1996 to 2011
1996 2000 2005 2011
Birr
Share
(%)
Birr
Share
(%)
Birr
Share
(%)
Birr
Share
(%)
Real per capita expenditures (birr/capita/year)
White teff 16 21.9 18 22.0 17 25.4 18 20.0
Mixed teff 22 30.1 28 34.1 18 26.9 19 21.1
Red teff 31 42.5 32 39.0 22 32.8 19 21.1
Enjera 5 6.8 5 6.1 9 13.4 34 37.8
Total teff 73 100.0 82 100.0 67 100.0 90 100.0

6. 4.1 Enjera and urban markets
 HICES 2011, urban areas: 16% of food budget on food eaten away from home;
 Striking differences by poverty quintile
0
5
10
15
20
25
30
q1 q2 q3 q4 q5
Shareinfoodexpenditures(%)
enjera
out-of-home

7. 4.2 Operations enjera sellers and EMEs
Share in commercial enjera sales (%)
(Mean)
Unit Large wholesalers Small wholesalers Retailers Gulits
Share of commercial enjera sales in city
Addis Ababa percent 20.1 6.5 70.1 3.4
Dire Dawa percent 24.9 3.2 62.3 9.6
Nekemte percent 11.9 26.9 38.4 22.8
Enjera seller
Male percent 55 29 33 9
Share cooperative percent 64.5 36.4 6.2 0
Share of enjera in total sales of outlet percent 77.7 86.1 49.2 95.9
Share of sellers that make enjera
themselves
percent 100 95.2 45.8 100
Observations number 31 45 225 44

8. 4.3 Operations enjera sellers and EMEs
How important commercial enjera markets?

9. 5. Procurement and sales
Sales

10. 5. Procurement and sales
Mixing of flour for enjera by EMEs
(Mean)
Large Medium Small
Share magna teff 19.5 11.9 4.9
Share white teff 52.6 50.6 35.9
Share mix teff 11.2 24.7 37.6
Share red teff 2.4 0.6 3.0
Share rice 10.1 8.7 8.4
Share sorghum 1.3 0.9 8.1
Share wheat 1.4 0.0 0.1
Share maize 1.4 0.9 1.9
Share millet 0.0 0.0 0.1
Share others 0.0 1.7 0.1
Total 100.0 100.0 100.0
Share of rice by city
(Mean)
Large Medium Small
Addis Ababa 10.9 11.5 13.1
Dire Dawa 10.0 3.8 1.9
Nekempte 0.0 0.0 0.0

11. 5. Procurement and sales
 Rapidly growing rice imports in the country
 Estimate that about 15% of imports used in Addis for preparation of enjera
0
25
50
75
100
125
150
175
200
MillionUSD
Value of imports
0
50
100
150
200
250
300
20002002200420062008201020122014
1000tons
Quantity imported

12. 6. Employment, and productivity
6.a. Productivity of EME

13. o One of the most important employment generating sectors in Ethiopia’s
cities
o Flower sector generated 100,000 jobs over 2010-2015; 183,000 upto 2017
6.b. Job creation
Unit
(mean)
Large Medium Small
Total number of enterprises, estimate
Addis Ababa number 139 172 7413
Dire Dawa number 4 4 281
Nekemte number 4 14 93
Employment in enjera making and retailing in city, estimate
Addis Ababa 1 929 1 242 27 535
Dire Dawa 129 34 373
Nekemte 22 67 218
Total employment in enjera making and retailing in city, estimate
31 549
• In 2015, ¼ of
Ethiopia’s urban
population lives in
these three cities
• Extrapolation of these
numbers - assuming
similar rates of
commercialization of
enjera
• Implies that over
120,000 people in
urban Ethiopia are
involved in enjera-
making or retailing

14. 7. Drivers of the changes
1. Rising opportunity costs of women
 Increasing employment opportunities
 Costs of maids increased by 60 percent between 2000 and 2015 (CSA data)
2. Growth of the food service sector
 Issue of comparability but HICES: 4% out-of-home consumption in 1996; 16 % in
2011
 Sector mostly supplied by the increasing EMEs, giving an impetus to th
emergence of especially larger EMEs.

15. 7. Drivers of the changes
3. Two potential drivers for the increasing mixing with rice
- rice is replacing sorghum for whiteness and flexibility of enjera
- improved price ratios compared with teff and with sorghum
0.0
1.0
2.0
3.0
4.0
5.0
Ratio rice over teff
Ratio rice over sorghum

16. 8. Conclusions
 Urban enjera markets quickly growing and transforming:
- More than 100,000 people employed in the sector
- Mostly women
 Trade effects:
- Enjeras being prepared by mixing the local teff with imported rice
 Enterprise growth (overall still very small enterprises)
- By size: value addition and profitability
- Relatively larger ones cater to the rapidly increasing food service sector
(already 16 percent of food budget)

17. 9. Implications
Off-farm segment in agriculture needs more attention:
- important impacts on employment (especially for women),
prices, and food security for urban populations
- important impacts on farmers
With food system transformation, international trade
issues more important
oMore focus needed on stimulating local (import-
substituting) rice production

18. 9. Implications
 Attention to regulations of food processing when markets take off
Addis Admas newspaper: “… police arrested about 5 people in
Lideta sub city, about 23 in Kolfe Keranyo sub city (13 recently and
8 people already arrested related to the case before). 5 owners and
12 workers were suspected in Akaki Kaliti with 3 of the owners and
the 12 workers being arrested while the 2 owners are still on the
run. These people mix teff flour with earth, sawdust and other
cereals’ waste products and bake injera using unpurified flour.
These guys do mix 30 percent of teff flour with about 70 percent of
the stated foreign matter.”

19. THANK YOU!

20. 4. Enjera consumption
Food consumption and real per capita expenditures of teff grain and teff enjera,
1996 to 2011
1996 2000 2005 2011
Birr
Share
(%)
Birr
Share
(%)
Birr
Share
(%)
Birr
Share
(%)
Real per capita expenditures (birr/capita/year)
White teff 16 21.9 18 22.0 17 25.4 18 20.0
Mixed teff 22 30.1 28 34.1 18 26.9 19 21.1
Red teff 31 42.5 32 39.0 22 32.8 19 21.1
Enjera 5 6.8 5 6.1 9 13.4 34 37.8
Total teff 73 100.0 82 100.0 67 100.0 90 100.0
Consumption (kg/capita/year) kg
Share
(%)
kg
Share
(%)
kg
Share
(%)
kg
Share
(%)
White teff 5 20.0 6 19.4 7 25.9 8 27.6
Mixed teff 8 32.0 11 35.5 8 29.6 9 31.0
Red teff 11 44.0 13 41.9 10 37.0 10 34.5
Enjera 2 8.0 3 9.7 3 11.1 7 24.1
Total teff 25 100.0 31 100.0 27 100.0 29 100.0

21. 5. Procurement and sales
a. Procurement

22. 6.b Associates of value added