chickpea production, technology adoption and market...
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Chickpea Production, Technology Adoption and Market Linkages in Ethiopia Chris O. Ojiewo On behalf of TL III Team-Ethiopia and partners Pan-African Grain Legume and World Cowpea Conference Livingstone-Zambia Feb 28 – Mar 4, 2016
Chick pea production in Ethiopia by zone
Place of Chickpea Production among Major Pulse Crops in Ethiopia
3
Faba bean31%
Fieldpea14%
Haricot bean 19%
Chickpea14%
Lentil7%
Grass pea10%
Soyabean1%
Fenugreek2% Gibto
2%
Faba bean33%
Fieldpea13%
Haricot bean 17%
Chickpea15%
Lentil6%
Grass pea12%
Soyabean2% Fenugreek
1%Gibto
1%
Share of Major Pulse Crops to Total Pulse AcreageAverage (2009/2014): 1.6 million ha
Share of Major Pulse Crops to Total Pulse ProductionAverage (2009/2014): 11.5 million tons
Source: CSA, Various Reports (2009-2014)
Chickpea Area, production and yield in Ethiopia during the TLII & TLIII Intervention Years (2007-2014)
Source: CSA (2007-2014)
Chic
kpea
are
a an
d pr
oduc
tion
(‘000
)
Chic
kpea
pro
duct
ivity
(t/h
a)
Chickpea Technology Dissemination Under TL Projects
Regional State
National
Zone
Woreda/District
Kebele/village TL focus
Technology Adoption in Sample TLII Intervention areas
Adoption trends - Chickpea adoption increased from 30-80%
0%10%20%30%40%50%60%70%80%90%
2006/07 2009/10 2013/14Season
Improved variety
Local Desi
Country 000 Ha Kg/Ha ‘000 MT 1. India 9553 922 26413 2. Pakistan 996 599 1786 3. Iran 557 530 885 4. Australia 538 1430 2304 5. Turkey 409 1199 1474 6. Myanmar 336 1472 1482 7. Ethiopia 236 1913 1278 8. Tanzania 152 745 330 9. Mexico 118 1822 654 10. Malawi 116 576 200
1 The Success Stories of Ethiopian Agriculture
Ethiopia’s chickpea productivity is the highest in top ten producing countries of the world (FAOSTAT, 2012-14 avg.)
0102030405060708090
Kg/h
a/yr
Ethiopia has the highest yield gain of chickpea among the top 10 producing countries in the world, 2000-14, (FAOSTAT, 21/01/2016)
The position of Ethiopia’s chickpea production
3/9/2016 10 Source: Compiled from FAOSTAT, 2013
3/9/2016 11
STRUCTURE OF THE CHICKPEA MARKETS
Source: Bekele & Hailemariam, 2007
80% of the total annual chickpea trade volume
factors favoring the large share of local markets:
a. low incentives for exporters (low volume & unreliable supply)
b. grain quality problem (standards)
c. Problem of price competitiveness
The marketing supply chain involves a number of actors to reach the final consumers
Increases transaction costs
Chickpea Markets: LOCAL MARKETS
EXPORT MARKETS
highly variable Ethiopia’s share in the global chickpea export market is very
limited: average about 4% by value and volume (2000-2010);
However, it accounts for 63.5% of the total chickpea export from Africa (ranks first in Africa)
Ethiopia Rest of world
945,680
96%
4%
Market share of Ethiopia in world exports (2010-12 average – million USD)
Composition of Ethiopian Pulse Export
14
Composition of Ethiopian Pulse EXportAverage (2010/2012): 709 thousand tons
Composition of Ethiopian Pulse EXportAverage (2010/2012): 7.8 Billion Birr
Field Peas0.13%
Chickpea25.02%
Haricot bean45.60%
Others1.81%
Lentil2.65%
Faba beans18.02%
Mung bean6.77%
Field Peas0.11%
Chickpea25.56%
Haricot bean
43.88%Others1.92%
Lentil3.12%
Faba beans17.02%
Mung bean8.39%
Source: :Ethiopian Customs and Revenue Authority, 2014
0
10
20
30
40
50
6019
61
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Expo
rt v
alue
(US$
mill
ions
)
1 The Success Stories of Ethiopian Agriculture
Ethiopia’s chickpea export earnings also grew substantially (FAOSTAT, 22/01/2016)
2014: Volume exported: 48,739 t Value: 22.56 M USD
The s
hare
of m
ajor E
thio
pian
chick
pea
expo
rt m
arke
ts to
to
tal c
hick
pea t
rade
volu
me f
or th
e per
iod
2005
-201
0
Sour
ce: c
ompil
ed fr
om E
thiop
ian C
ustom
s Auth
ority
30.51%29.50%
12.62%9.11%
4.93%2.13%2.65%
1.19%0.95%1.17%
0.85%0.66%0.40%0.48%0.32%0.46%0.29%0.35%0.24%0.19%0.32%0.13%0.20%0.07%0.05%0.06%0.06%0.05%0.03%0.03%0.00%0.00%0.00%0.00%0.00%
0% 5% 10% 15% 20% 25% 30% 35%
PakistanUnited Arab Emirates
SudanBangladesh
IndiaSaudi Arabia
SingaporeIsrael
JordanDjibouti
Iran, Islamic Republic ofTurkey
United StatesBulgaria
EgyptCanadaYemen
NetherlandsAlgeria
LebanonSenegal
ChinaSomaliaBelgium
SpainMauritiusIndonesia
UkraineSouth Africa
CubaIcelandGreece
United KingdomSweden
Italy
% trade volume
86.60%
Major Export Market Destinations…
3/9/2016 16
Share of Regional Chickpea Export Destination Markets: Global Chickpea Export (2010): 822 million USD
3/9/2016 17
Source: Compiled from FAOSTAT, 2013
INDIAN SUB-CONTINENT
39.3%
MIDDLE EAST24.4%
EUROPE15.1%
NORTH AFRICA10.2%
SOUTH & CENTRAL AMERICA
3.4% NORTH AMERICA3.2%
ASIA2.9%
SUB-SHARAN AFRICA
1.3%
COMMON WEALTH OF
INDIPENDENT STATES0.2%
Major Export Destination …
3/9/2016 18
Source: Compiled from FAOSTAT, 2013
913.08882.93 875.02 867.45
788.88740.54
686.27
556.22
697.28
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
1,000.00
EUROPE SOUTH & CENTRAL AMERICA
NORTH AMERICA NORTH AFRICA MIDDLE EAST ASIA SUB-SHARAN AFRICA
INDIAN SUB-CONTINENT
World
Uni
t Pric
e (U
S$ P
er to
nne)
Unit Value of Chickpea Export in Major Regional Markets (US$ per ton): 2010
Major Export De stination …
I. Poor product quality Mixture: kabuli with desi, or with other crops like grasspea and foreign materials
sources of quality problems: 1. Poor post harvest practices (harvesting and
threshing), 2. Deliberate mixture for unfair advantages (some
farmers and traders/exporters) Small seed size (kabuli) Mostly < 7 mm ( >= 8 mm for export market)
Major challenges in Ethiopian chickpea export?
3/9/2016 19
II. Chickpea export price determination is entirely based on spot prices (present demand)
Exporters are price takers and highly vulnerable to price risk
III. Lack of marketing information • Lack of information on prices, demand,
and quality requirements of different chickpea export markets
III. Lack of marketing information • Lack of information on prices, demand, and
quality requirements of different chickpea export markets
IV.Unable to meet export demand not only in
terms of quality but also in terms of supply
Major challenges …?
3/9/2016 21
Government commitment e.g. establishment of ECX untapped potential in terms of yield gap (local
varieties??) • Cropping calendar does not coincide with
major chickpea competitors
III.Poorly coordinated and extended market chain High transaction costs
V. High price fluctuation in local markets
Opportunities
3/9/2016 22
• Spatial advantage: proximity to major export markets The major global chickpea export markets
(75%) (S. Asia, M. East, and Europe) are situated at a convenient distance
• Ethiopian chickpea production can safely be considered as organic: limited application of chemicals and external inputs
Amasegnalehu (Thank you)