Ethiopia Nuffic Agribizz WHO BENEFITS? MARIJKE DHAESE - - PowerPoint PPT Presentation

Ethiopia Nuffic Agribizz

WHO BENEFITS? MARIJKE D’HAESE AGRICULTURAL ECONOMICS GHENT UNIVERSITY ¡

Partners @ Department of Agricultural Economics, Ghent University

• Jimma University - College of Agriculture and

Veterinary Medicine

• Haramaya University - School of Agricultural

Economics & Agri-business Management

• Ambo University
• Hawassa University

Market ¡mapping ¡(adapted ¡from ¡Poole ¡& ¡de ¡Frece, ¡2010) ¡

!

Driven'by' donors,' NGOs,' agrifood' firms'' High!value! Low!value! Domestic! markets! Organic!&! fair!trade! markets! Coffee! Speciality! markets! coffee! Export! markets! High! quality! dairy! products!! Traditional! food!crops!! Driven'by' domestic' supermarket' chains,' restaurants,' hotels' Food'security' Weak'drivers,'' philantrocapitalism' and'some'donors'' Local! industrial! crops!! !for!import! substitution! IndustryDled! processing! and!value! addition!!! !Processed! food!crops!! Spices,! ginger!! Driven'by' international' market' institutions'' Intra!and!interDorganizaional!coordination! Institutional'development' Increasing! supply!chain! management!! Longstanding! production! constraints!!! Commodity! exchanges!! Decommodification!!

Ongoing @ UGent

• Value chain integration and its impact on

performance, the case of malt barley value chain in Ethiopia

• Efficiency of alternative institutional

arrangements in the coffee market in Ethiopia

• Comparative analysis of alternative coffee value

chains in Southwest Ethiopia; A way forward to enhance competitiveness and income of smallholders

• Market policy reform and the introduction of

Ethiopian commodity exchange in directing the Ethiopian coffee market

• Biophysical controls on Ethiopian Arabica coffee

quality

• Proximate composition and minor constituents
• f Oromo Potato (Plectranthus edulis) as

Influenced by storage duration and potentials for value addition

Ongoing@UGent

Value Chain Development Gender aspect

Collaboration in the value chain

• Focus on domestic and export chains
• Coffee, Barley, Potatoes, Roses, Dairy
• Actors?
• Small scale producers at the bottom of the

market chain

• Farm workers
• Traders or cooperatives
• Unions
• ECX
• Exporters

Value Chain Development

Coffee ¡Chain ¡ ¡ (Zekarias)

Q1: Who benefits?

• How can farmers be included in value chains?
• How does inclusion affect smallholder/resource

poor farmers?

• Pathways of change
• Outcomes:
• Price received
• Information and advice
• Economic and social wellbeing
• Labour conditions
• Gender empowerment
• Incentives

Value Chain Development

• Q2: Why do we ask this question in a context of

value chain development?

• Equity - fair price to producer or farm worker
• Efficiency - food production & transaction

costs

• Quality - e.g. asymmetric information, sorting

and classing

• Upscaling and development

Value Chain Development

• Inclusive business models

Private sector for-profit initiatives which include the poor with the stated intention to improve their well-being through mechanisms going beyond arms’-length market transactions

Value Chain Development

CSR ¡ Corporate ¡Social ¡ Responsibility ¡ Supply ¡ ¡ Quality Farmers Farmers ¡groups ¡ Cooperatives

• Ethiopian Commodity Exchange
• Established 2008
• To bring actors together and overcome

information problems

• Studies for the coffee sector (Tinsae)
• Limited price integration with international markets
• Larger but still limited national integration between

the coffee producer zones

• High quality areas dominate price setting
• Yirgachefe and Sidama adapt price more quickly

Value Chain Development

• Certification systems - compliance in production
• Organic
• Fair trade
• Industry specific - e.g. flower sector

Value Chain Development

Buyer Farmers Farmers ¡groups ¡ Cooperatives Large ¡scale ¡ producer Third ¡party ¡ ¡ Monitoring Impact ¡but ¡monitoring ¡challenging

• Actors - vertical and horizontal links
• Small-scale producers in cooperatives,

associations

• Contracts
• Who benefits?
• Cooperative members?
• Contracting parties?

Collaboration in Value Chains

• Coffee cooperatives (Zekarias)
• Large heterogeneity between cooperatives

and amongst members

• Eventual effect is not large
• Important side-selling

Collaboration in Value Chains

• Gender empowerment through inclusion?
• Who benefits? Women?
• Do female cooperative members have

benefits

• women’s decision making on expenditure
• awareness/knowledge on improved

techniques

• control over finance
• Coffee sectors (Zekarias)- limited effects, yet

heterogeneous amongst cooperatives

Gender in value chain

Value Chain Development Gender aspect

Collaboration in the value chain