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Nurture Education and Development (NED)
Dr. Belete D. W/Gies
Agricultural TVET; Livelihood Improvement of Unemployed/Vulnerable Youth
for food Security in Amhara Region (L4W Program)
Value Chain Assessment in Mida Oromo, Merhabete and Menz Gera
Woredas, of N/Shewa Zone
June. 2014
Addis Ababa, Ethiopia
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1. Executive summary
2. Background of the study and the study area
3. Overview of the sub-sector(s) and VC Selection
4. Value Chain Analysis (to be done for each selected VC)
4.1 Mapping
4.2 Quantification
4.3 Economic analysis
4.4 End market
4.5 Value Chain Constraints
4.6 Market Based Solutions
4.7 Value Chain Governance
5. Value Chain Vision and Mission/Objectives
6. Upgrading strategies
7. Proposed Intervention Programs
8. Foreseen risks and mitigation mechanisms.
9. Action Plan
10. Monitoring and Evaluation
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Acronyms
ACSI: Amhara Credit and Saving Institution
CLRA: Customs and Land Authority Agency
COOP: Cooperative
FTCs: Farmer Training Centers
IGAs: Income Generating Activities
MOA: Ministry of Agriculture
MOTI: Ministry of Trade and Industry
NED: Nurture Education and Development
TVET: Technical and Vocational Education Training
WADO: Woreda Agriculture Development Office
WCRA: Woreda Customs and Revenue Authority
WTVEDO: Woreda Technical and Vocational Enterprises Development Office
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I. Executive Summary
Agriculture has always been the backbone of Ethiopia’s economy. Yet, lifting millions of
Ethiopians out of poverty requires a transformation from centuries-old subsistence agriculture to
dynamic, technology-driven, market-oriented than production oriented production to transform
the rural poor from food secured to income secured. This only happen if the market itself
functions in such a way as to serve the needs of all concerned.
To improve the livelihood of project beneficiaries, it is highly important to create visible ground
that production of marketable agricultural products for the real existence of unsatisfied demand
sticks the rural poor with the market. Production of commodities by understanding marketing
concept not production concept also play vital role to conceptualise the main actors for both back
ward and forward integrations. Understanding of such business environments results half solved
problems for the rural poor specially for unemployed youths engagement in demand driven or
market sensitive production activities.
Nurture Education and Development (NED is a not-for -profit, charitable organisation officially
established in August 1999 and re- registered by the Charities and Societies Agency on 7
October, 2009. The main objectives of the charity are to contribute for the advancement of Food
Security and Livelihood improvement, Improved Women and Children nutrition, Education,
Youth and women IGA and employment, Sexual and Reproductive Health, and Water,
Sanitation and Hygiene, and Institutional and Organizational Capacity Building of local actors.
Currently NED is implementing a project entitled “Agricultural TVET; Livelihood Improvement
of Unemployed/Vulnerable Youth for food Security in Amhara Region” being as a lead partner
with financial support from L4W Program and Edukans foundation. the project is being
implemented by NED (in Mida,Merhabete and Menz Woredas in North Shewa zone), Wabe
Children’s Aid and Training (in Debretabor woreda in South Gondar zone), Guhion
Development Aid Organization (in Debremarkos Woreda administration in East Gojam zone)
and Facilitator for Change (in Bure zuria woreda in Western Gojam zone) in Amhara regional
state, Ethiopia.
The project is aimed to equip vulnerable/unemployed youths with market demandable
agricultural vocational skills training in close collaboration with Technical Vocational Education
and Training (TVET) colleges and private institutions. In order to identify market demandable
agricultural vocational courses, value chain identification and analysis is part of the project
activities to identify business entry point in the agricultural business on a sustainable basis.
Value chain analysis is a means to understand the actors both in input suppliers, producers,
consumers, processors, wholesalers, retailers, exporters, brokers, agents and others
individuals/institutions that depend on the product buying and selling or processing. Conducting
value chain analysis of a particular product of the society will lead to identify both the
constraints in procurements of inputs, channelling of market and designing of market territory
and missed opportunities in a particular chain. Well addressed or studied analysis results
increasing in income and reducing vulnerability of the household.
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The Value chain identification and analysis is conducted in Mida Woremo, Merhabete and Menz
Gera Woredas of North Shewa Zone by NED in close collaboration with woreda level
government offices, TVET colleges and local private enterprises.
II. Background of the study area and Approach
2.1 Background of North Shewa Zone
North Shewa is one of the Zones in Amhara Region. The Zone is bordered on the south and the
west by the Oromia Region, on the north by South Wollo, on the northeast by the Oromiya Zone
of Amhara Region, and on the east by the Afar Region. The highest point in the Zone is Mount
Abuye Meda (4012 meters); other prominent peaks include Mount Megezez. Debre Birhan is the
capital city of North Shewa Zone located ----- km from Addis Ababa to ------ direction of Addis
Ababa.
According to North Shewa Zone Finance and Economy Development Department (2014), this
Zone has a total population of 2,012,342, of whom 1,016,547 are male and 995,795 with an area
of 15,936.13 square kilometers.
Merhabete Woreda
Merhabete Woreda is located 134 km far from Debre Birhan to the ------------ direction. The
woreda is bordered by Mida Woremo Woreda on the North, by Moret and Jiru Woreda on the
south, by Menz Keya on the east, by Oromiya Region on the Northeast, and by Ensaro Woreda
to the West direction. The capital city of Merhabete woreda is Alem Ketema. According to the
woreda Finance and Economy Development office (2014), the total area of the woreda is
126,000 ha with a total population of 117,169, of whom 59,388 are men and 57781 are women.
Mida Woremo Woreda
Mida Woremo Woreda is of the 27 woredas of North Shewa Zone. The capital city of Mida
Woremo woreda is Meragna which is located at 191 km from Debre Birhan town to the ------
direction. Mida Woremo Woreda is bordered by South Wollo Zone on the North and East, by
Oromiya Region on the West and by Merhabete woreda on the South directions. According to
the woreda Finance and Economy Development office (2014), the population of the woreda is
105,734, of whom 53,070 are men and 52,664 are women. The total area of the woreda is 83,799
ha.
Menz Gera Woreda
Menz Gera Woreda is located at the eastern edge of the Ethiopian highlands in the North Shewa
Zone. Menz Gera is bordered on the south by Menz lalo Midir, on the southwest Menz Keya
Gebreal, on the west by the Kechene river which separates it from the South Wollo zone, on the
north by Gishe Rabel, on the north east by Antsokiya Gemza, and on the east by Efratana Gidim.
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The capital city of Menz Gera Woreda is Mehal Meda which located ---- kms far from Debre
Birhan to the _______ direction. According to the woreda Finance and Economy Development
Office (2014), the woreda population is estimated 88,943, of whom 44,765 are men and 44,179
are women. The total area of the woreda is --------- km.
2.2 Approach
In the first task the focus was on a 40 hours-training of the program staff of the implementing
partners in Value Chain Analysis and Labour Market Assessment. During the training the
partners developed their own assignments: which information to collect from whom. The partners
also developed the questionnaire, FGD checklists, and reporting template for the assessment
during the training in order to keep uniformity of reporting so that the compilation of cluster
level assessment report will be easy. Each implementing partners took responsibility of the
leading role in conducting the value chain assessment in their respective operational areas,
namely; WCAT in Debretabor woreda, FC in Bure Woreda, GDAO in Debremarkos woreda, and
NED in Merhabete, Moda Woreo and Menz Gera Woredas.
Secondly, each organization conducted the assessment in its respective project woredas by
organizing an assessment team composed of professionals/persons from Technical and
Vocational Enterprises Development (TVED) Promotion Office, Women Children and Youth
Affairs office, TVET colleges, Local private enterprises, CBOs and CSOs in each respective
woredas. In the third and last mission the outcomes of the assignments were reviewed and
discussed in a final common workshop where they were also translated in action points for the
next steps.
NED gives special highlighting for the production of marketable agricultural products and
thereby to integrate the rural poor and unemployed youths with the market. To carry out the
analysis, primary data was collected from knowledgeable actors in the chains and secondary
market survey reports were reviewed. The analysis was followed the steps by collecting data at
grass root level to prepare the report that serve as an initial document for further intervention.
Lastly, _________________________ were selected as focused commodities.
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III. Overview of the Sub-sectors
3.1 Economy
Similar to other areas of Amhara, livestock possession, particularly oxen holding, and land
ownership are the main determinants of wealth in the zone. Lack of plough oxen, money and
land hamper further crop production among the poor and very poor, including unemployed
youths, while high input prices, insufficient cultivatable land and poor soil fertility hamper the
middle and better-off households attempts to increase crop production. Land renting is the
prominent arrangement between the poorer and wealthier farmers to overcome their respective
problems of a lack of oxen and a lack of land to plough. They enter a crop sharing arrangement
where each party takes half the harvest. The very poor do not own sheep and cattle. Eucalyptus
tree numbers are another indicator of wealth. All wealth groups grow the same types of crops,
except that the very poor do not grow lentils. There are no other major economic activities apart
from the crop and livestock production and paid agricultural work in this livelihood zone.
Moreover land and household assets are the major and decisive production factor for the farming
family. However, the youths do not have access to land where they work to make a living; land
reallocation is not there in the region. In cases where the families are willing to provide a plot of
land to their children, it has become highly fragmented since one family owns as high as four to
seven children. Therefore, the younger generation is running out of the shortage of land and
remained jobless.
In addition, the farming and farm management practices in the areas are traditional. Because
small holders own very fragmented land discourages the use of modern farm implements such as
tractors, thresher and other farm machines. The awareness level of the subsistence farmers did
not allow them the use of production boosting technologies and farm inputs. This kept
agricultural production at lower level.
3.2 Agriculture
3.2.1 Crop Production
The zone is mainly depending on the agricultural economy in which livestock rearing makes an
important contribution to household incomes. The zone has one season of agricultural rains – the
kremt from June to September and one harvest - meher. The soil in most places is black and
vertisol, however there is clay loam in a few areas. The area is known for its moderately good
productivity and is considered to be self-sufficient in grain. Land preparation uses oxen for
traction power. Wheat, teff, barley and beans are the most common crops grown in the area.
Teff, beans, wheat and pulses are thus ranked in importance in terms of cash earned from sales.
With the exception of land preparation which is done by men, all other agricultural activities are
done by both sexes. Aphids, bollworm and rust are the most common crop pests/disease
particularly affecting wheat and beans.
3.2.2 Livestock Production
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Sheep, cattle, poultry and a few goats and equines are the livestock kept in the area. The source
of animal feed is pasture and crop residues. Livestock and butter, eggs and skins are sold in the
area. Boys and girls are responsible for looking after shoats, whilst men help them with cattle
and equines. Women manage chickens. Oxen are replaced by purchase and from within the herd
while cows are replaced mainly from within the herd. Common livestock diseases are blackleg,
pasteurellosis and sheep pox.
Other important in cash income generating activities particularly for poorer wealth groups are
paid work in local agriculture (weeding and harvesting), sale of firewood and work migration –
this last being rather small scale and to neighboring areas like Debre Zeit, Addis Ababa and
Nazareth for urban and agricultural labor. Firewood collection and sale in nearby towns is done
by both men and women.
3.3 Market
Access to market is generally good. This is attributed to the zone’s proximity to the main roads
and towns. There are many road networks beyond the Addis – Dessie main high way. Main
markets are in Debre Berhan, Ankober and Enewari. Teff, pulses and wheat are moved here from
the local rural markets with Debre Berhan as the final collecting market for the major trade down
to Addis Ababa. Similarly sheep and cattle are sold from main markets Ankober, Chacha,
Enewari and Deneba directly to Addis Ababa. The main staple food purchased are maize and
sorghum, which is brought in from Addis Ababa when local stocks are depleted (some having
been sold to Addis Ababa in the first place).
According to the woredas Technical and Vocational Enterprises Development Promotion
(TVEDP) Offices, Credit has been available from Amhara Credit and Saving Institute (ACSI),
food security and cooperatives. Available credit packages include: sheep husbandry, improved
inputs (eg fertilizer and seeds), and livestock fattening. The interest rate for the ACSI is 18% and
that of food security is 10%. The repayment period is 3 years.
3.4 Youth Unemployment
According to the labour statistics compiled by the woredas Technical Vocational Enterprises
Development offices, significant number of rural youths is unemployed. The number of youths
dropped out from school at various educational levels, and those who do not get the opportunity
to be enrolled to tertiary education is high. These youths do not have other options and remain
burden to their families who still have a hand-to-mouth income. The Ethiopian government has
recognized the issue of youth unemployment and formulated a youth development package for
supporting to working towards resolving the problem. Yet the problem remained appalling, and
this becomes the major pushing factor for human trafficking and youth migration to the major
cities, neighboring regions and to abroad.
Population and number of unemployed youths in Mida Woremo, Merhabete, and Merhabete
Woredas
No. Name of Woreda Population No. of un employed youths
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Male Female Total Male Female Total
1 Mida Woremo 53,071 52,665 105,736 3,456 1,363 4,789
2 Merhabete 59,388 57,781 117,169 2,656 739 3,395
3 Menz Gera 44,765 44,179 88,943 1,967 818 2,785
Source: Technical and Vocational Enterprises Development Promotion (TVEDP) Offices of
Mida Woremo, Merhabete and Menz Gera woredas (June, 2014)
TVET colleges charge high cost to offer vocational skills trainings which the youths from poor
households cannot afford. In cases where they manage to, the quality of the training they receive
is too low to compete for remunerative jobs. Hence the youth remain unskilled or incompetent
job seekers. This forces them to migrate to other countries mainly illegally where they face
significant socioeconomic problems. Therefore, skill gaps among the youth have become one of
the major causes for migration of the youth to abroad, mainly to the Arab Countries which in
turn resulted in other social and economic problems. Particularly, as female youths go far from
family supervision, they are exposed to various forms of abuses including sexual, psychological,
physical and economic exploitations. The fact that more than 150,000 Ethiopian youths were
repatriated from Saudi Arabia only in 2013/14 is a reflection of this.
3.5 TVET Institutions
There are 2 TVET colleges in the project target woredas namely Almaz Bohem TVET College in
Merhabete woreda and Mehal Meda TVET College in Menz Gera Woreda. Woreda Technical
and Vocational Enterprises Development Promotion (TVEDP) offices of the woredas also
provides short term vocational skills trainings, however they do not have sufficient human,
material and technical capacities to serve the needs of the youths in delivering market
demandable short term courses. The workshops in TVEDP offices and TVET colleges do not
have the required agricultural tools and machines both in terms of number and quality.
However there is market opportunities for starting new viable enterprises in the informal
agricultural production sector, the TVET providers failed to provide short term vocational skills
trainings on a predefined on-farm ventures. This is due to limited capacity of researching and
identification on the viability of vocational skills trainings on agriculture sector. In addition,
most of the TVET providers in the targeted woredas have limited experience in providing
agricultural skills trainings with poorly equipped training workshops.
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IV. Value Chain Selection
Value chain analysis is an excellent tool that aimed at to increase the income of households by
identifying marketable commodities and integrating them with effective marketing channels and
innovative actors, has steps and stages to design and implement particular locally produced
commodity by considering both vertical and horizontal linkages. When the investigation was
doing, each step has been followed thoroughly. Steps or stages were seriously exercised to avoid
overstated mistakes. The results are explicitly discussed as follows based on the steps.
4.1 Decide on the selection criteria
To arrive on conclusions about the selected commodities, developing selection criteria provide a
clue. Based on such fact, the analysis was discussed in depth which criteria will better match and
address the woredas’ potential. Lastly among the many criteria, the following have been taken
for the commodities selected.
Unmet market demand and growth potential
Potential for increase in productivity
Reaches large numbers of micro/small businesses of unemployed youths
The selected criteria are in priority of their weight. Based on such factors each commodity has
weighted and will be analysed further.
4.2 Information on each selection criteria.
We identified potential commodities that are really in maximum production with oscillating
demand, we have been chosen based on the selection criteria unmet market demand, potential for
increase in productivity, reaches large numbers/small businesses of unemployed youths.
4.2.1 Growth Potential and Market Demand
Sheep and cattle breeding and poultry production among the main source of income to meet the
household’s immediate cash needs and they protect other household assets in Mida Woremo,
Merhabete, and Menz Gera Woreda. Farmers produce sheep and poultry primarily for sale and
occasional slaughter at home for household consumption and cattle are used for crop production,
for example, for plaguing and threshing and for sale. Hotels and restaurants in the woredas have
also higher demand for poultry products, sheep, and fattened bull since woredas are among
tourist attractive parts of the region.
The main finding on livestock marketing was that the demand for sheep, bulls and poultry
products is good. Actors higher up in the VC find the supply insufficient to provide for Addis
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Ababa market. The due attention given by the government for livestock production is a good
opportunity to increase productivity. The Agriculture Development offices, animal health
centres, TVEDP offices, and credit service institutions play a vital role to support the
engagement of unemployed and vulnerable youths on small scale agricultural businesses.
4.2.2 Potential Increase in Productivity
Rural and Agricultural Development policies embarked on the production of marketable
agricultural commodities. Thus, rural people have got access to credit to relay on targeted and
marketable agricultural production. To the extreme, they have also technical support in their on-
farm and off-farm activities, and from this sheep and bull fattening and poultry production are
among these activities.
The provision of inputs that support the sheep and bull fattening and poultry production are
facilitated by the Agriculture development and TVEDP offices, and cooperatives of the
respective woredas to maximize their output. Trainings and technical support have been
conducted periodically to achieve goals stated on policies even at kebeles, youth groups and
individual producer level.
4.2.3 Reaches large numbers of micro/small businesses of unemployed
youths
Agribusiness is the major area that needs the involvement of small, large business and
individuals for input supply, production, processing, wholesaling, retailing, brokerage, agent,
import export of inputs and outputs. Input suppliers play a role by providing inputs and
equipment timely for producers directly or through their established marketing system. Producers
are the origins of the product but the second party on the production system of agribusiness. In
the marketing channel, wholesalers, retailers, brokerage, and agents have their own pressure on
the selling, pricing and channelling of the product in the market. In addition to this conduit of
market create potential buyers to have access for the commodity by applying their own selling
strategy.
Sheep, bull and poultry products are parts and parcels of the agribusiness commodities. It needs
its own input and activity feet input procurement. Suppliers of such inputs are businesses
whether they are large or small in their size. The regional and woreda governments pay due
attention for youth employment in rural areas. Organizing the unemployed youths in form of
small business groups is one of the ways to embark them on viable on-farm activities.
A large number of unemployed and vulnerable youths can be engaged on the small scale viable
agricultural activities by taking the opportunities of being organized in different forms of
producers, access to credit, and technical support from the Agriculture and TVEDP offices,
financial and technical support from NGOs, and the market demand for these agricultural
commodities from traders and hotels. Hence, these agricultural activities have a potential to
reach a large number of poor.
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4.3 Market survey and initial listing of Potential Value Chains
At woreda level, there is no available research document so far undertaken on value chain.
Therefore, we focused on to collect primary data and valuable information from different
knowledgeable participants drawn from woreda professionals from Agriculture Development
and TVEDP offices, agricultural enterprises owners, program beneficiary youths and other
knowledgeable persons.
As mentioned in step one, we identified three criteria via. Unmet market demand and growth
potential, potential for increase in productivity, reaches large numbers of micro/small businesses
of unemployed youths in priority order.
We have focused on major commodities of the woredas and lastly reached on three commodities.
Therefore, ____ agricultural commodities are identified as tabulated as follows.
List of selected commodities and problems Vs suggested solutions
No. Commodity
type
Major problems Suggested Solutions
1. Honey Using traditional way
Gap on Quality
Absence of processing
packing and machine
All production are not come
to market
Doing extension works at grass root
level
Using local processing and packing
machine
Create awareness by continuous
education
2. Poultry Incidence of poultry disease is
high
Improved varieties cannot
adapt the environment
Shortage of poultry feed
Market fluctuation (during
fasting days)
Working with close linkage with animal
health centres
Using hybrid of local improved breeds
of poultry
Taking agreements with cooperatives to
supply poultry feed
Technical support to producers to
prepare feeds at local level
3. Highland fruit Limited awareness on it
Long duration to deliver
production
Limited production quantity
Using merely household
consumption
Continues extension work
Identify and using fast variety
Expand the intervention
4. Fish Lower demand by the local
communities
Lower amount of productivity
Seasonality of production
Trying to build manmade water ponds
Limited experiences of the woredas
professionals to provide technical
support on fishery
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5. Bull Higher initial cost
Poor supply of livestock feed
Lack of working land
Linking with micro finance institutions
Technical support to producers to
prepare improved livestock feeds at
local level
Taking agreements with cooperatives to
supply poultry feed
Linking with the towns’ municipality to
provide working land for organized
youths
6. Milk Lack of market
Absence of milk processing
firms
Producing butter for sale
Try to organize milk processing
cooperative
7. Vegetables Pest and disease
Mostly sown by irrigation
Attack by wild animal
Using IPM (integrated Pest
Management)
Continues extension work
8. Lentils Pest
Weeding
Absence of continues plough
using IPM
continues extension work
9. Sheep Forage shortage
Disease incidence
Housing
Focus on quantity instead of
quality
Absence of improved variety
Controlling free grazing and using
improved forage development
Expand medical service
Separate man and animal shelter
Educate to give emphasis for quality
Engaged on variety improvement and
hybrid
4.4 Short-listing of Value Chain Commodities using Matrix
To identify potential marketable commodities, shortlisting of selected potential value chains was
undertaken to identify the best agricultural commodity among the mentioned. Using the matrix,
all commodities were evaluated against competitiveness in the market and their potential to reach
a large number of unemployed and vulnerable rural youths.
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Highland fruit
Honey
Sheep
Poultry
Bull
Vegetables
Lentils
Fish
Milk
According to the evaluating criteria, the assessment team and FGD participants selected five top
commodities namely sheep, bull, poultry, highland fruits and honey for further analysis.
4.5 Ranking of Shortlisted commodities using scoring grid
The value chain assessment team and FGD participants were agreed to select a maximum of top
three commodities for further promotion and value chain actors empowerment. The five
commodities were ranked using scoring grid method to identify the top three commodities. A
total of four criteria namely unmet market demand, potential for increase in productivity, and
potential to reach large numbers of micro/small businesses of unemployed youths were used to
select the top three commodities.
Competitiveness
Target youths
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Criteria Weight Honey Poultry Bull Highland
fruit
Sheep
rate score rate score rate score rate score rate score
Unmet market
demand
3 4 12 4 12 4 12 3 9 4 12
Potential for
increase in
productivity
2 2 4 3 6 4 8 3 6 4 8
Potential to
reach large
numbers of
micro/small
businesses of
unemployed
youths
3 2 6 4 8 2 6 2 6 3 9
Total
weighted
score
40 22 26 26 21 29
Rating: 1=poor, 2=fair, 3=good, 4=very good, 5=excellent
Lastly, sheep, poultry and bull have got the highest score to be marketable commodity of Mida
Woremo, Merhabete and Menz Gera woredas for further analysis. Based on our plan we consider
on these three commodities so for next step of analysis.
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V. Value Chain Analysis of Sheep, Poultry and Bull in Mida Woremo,
Merhabete and Menz Gera Woredas
To link the rural poor product to market or prospective buyers, market analysis of the selected
product is mandatory. Understanding the product’s situation of the past, present, and future
market conditions results half solved problem for the later market channel analysis and demand
launching.
Value Chain analysis of the commodity considers the market environment and channels, through
which the product flows to arrive on final customers, supply (production) and demand of the
product, price analysis of the commodity across all actors and identifying the marketing costs,
margins generated by market actors and the price variations that set by those involved in the
marketing system of a specific product. Not only these but also the market infrastructure that
participants use to store, transport, and their individual market places should be analyzed. In the
production side of the product, the supply of inputs is also considered in the study. The major
marketing challenges, possible solutions, and value chain governance will be analyzed in the
study.
5.1 Market Channel
Marketing of commodities passes through different actors in the market until its consumption.
These channels themselves play role for the distribution of the product and attract potential
buyers by applying their own selling strategies for the intention of profit maximization. Through
which these commodities passes is discussed below.
5.1.1.1 Market Channel of Sheep
While we are identifying the possible channels in which sheep market pass through, the
following channels acting on the market be it formally or informally. Smallholders in Merhabete
woreda provides their majority of their products for hotels and individuals in Alem Ketema and
the remaining to Lemi, Chancho, Enewari and Addis Ababa Merkets. Smallholders in Menz
Gera woreda also provide their sheep to hotels and individuals in Mehal Meda town, and part of
their products goes to Deneba and Jirru markets. Sheep production is the main source of income
to meet the household’s immediate cash needs and they protect other household assets. Farmers
produce sheep primarily for sale and occasional slaughter at home for household consumption.
Sheep in Menz Gera have higher demand in Addis Ababa and other markets relative to other
areas. Products in each woreda pass to another markets outside their woredas through traders
who collects products in each villages and towns and then they took such collections to markets
in other markets outside their towns. Graphically;
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5.1.1.2 Market Channel of Poultry
In the context of target woredas poultry production is known by farmers for the past years. The
production is more traditional and mostly women are benefiting from it. Small holders in the
respective woredas provide their chickens in their respective towns of the woredas mostly for
individuals in their woredas. Traders also collect chickens from local markets and provide for
Addis Ababa Market. Graphically;
Producers (Smallhold
ers each
woreda)
Traders (in each
woreda)
Consumers (in
Lemi, Chancho,
Enewari, Jirru,
Deneba and
Addis Ababa)
Retailers (in
Lemi, Chancho,
Enewari, Jirru,
Deneba and
Addis Ababa)
Producers (Smallhold
ers each
woreda)
Consumers (individuals &
hotels in
respective towns
of woredas)
Producers (Smallhold
ers each
woreda)
Traders (in
respective
woredas)
Consumers
(individuals & hotels
in respective towns
of woredas and
Addis Ababa)
Producers (Smallhold
ers each
woreda)
Consumers (individuals
respective
towns of
woredas)
Producers (Smallhold
ers each
woreda)
Traders (in
respective
woredas)
Consumers
(in Addis
Ababa)
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5.1.1.3 Market Channel of Bulls
The production of bulls in Mida Woremo, Merhabete and Menz Gera Woredas is traditional and practiced
aside to crop production. Mostly animals are going to be used in for reproductive use and crop
production purpose. Part of livestock goes to different markets outside the targeted woredas. The
Marketing of oxen from Merhabete outside the woreda goes to Addis Ababa Market. The same to this,
oxen from Mida Woremo provided for Alem Ketema and Addis Ababa’s market by traders. Besides
these, some hotels in Meragna and Alem Ketema buys fattened oxen. Individuals’ consumption is high in
holidays like in Easter, Christmas, and New Year. Graphically;
Producers (Smallhold
ers each
woreda)
Consumers (individuals and
hotels in
respective towns
of woredas)
Producers (Smallhold
ers each
woreda)
Traders (in
respective
woredas)
Consumers
(in Alem
Ketema and
Addis Ababa)
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5.2 Value Chain Mapping
Value Chain Mapping is the process of indicating flow direction of products and services starting from
input supplier to their end market/buyer. Map of the three selected agricultural products is provided below
with a specific business channels. The maps grasp the whole picture of the markets in chosen channels
which provides overall information about the market and identifies participants and actors in the value
chain at all levels.
5.2.1 Map of Sheep Value Chain with specific business channel (Mida Woremo and
Menz Gera Woredas)
M
I
C
R
O
M
E
S
O
M
A
C
R
O
Input Provider Farmers (in Mida
Woremo and Menz
Gera WOredas)
Traders (in Mida
Woremo and Menz
Gera WOredas)
Consumers (in Lemi,
Chancho, Enewari,
Jirru, Deneba and
Addis Ababa)
Farmers’ Integrated
COOPs
WADOs and FTCs
ACSI branches
WTVEDO
TVET Colleges
WADO and FTCs
TVET Colleges
Woreda Land
Administration
ACSI branches
WCLRO
Research
Admin/NBE
MOA & COOP’s
Promotion
Agency
TVET Agency
MOA and MOTI
Research
Admin/NBE
CLRA
Research
Admin/NBE
20
5.2.2 Map of Poultry Value Chain with specific business channel (Mida Woremo,
Merhabete and Menz Gera Woredas)
M
I
C
R
O
M
E
S
O
M
A
C
R
O
Input Provider Farmers (in Mida
Woremo and Menz
Gera Woredas)
Traders (in Mida
Woremo and Menz
Gera WOredas)
Consumers (local and
at Addis Ababa)
WADOs and FTCs
ACSI branches
WTVEDO
Animal Health
Centers
WADO and FTCs
TVET Colleges
Woreda Land
Administration
ACSI branches
WCLRO
Research
Admin/NBE
MOA
TVET Agency
MOA and MOTI
Research
Admin/NBE
CLRA
Research
Admin/NBE
Transport Service
Providers
21
5.2.3 Map of Bull Value Chain with specific business channel (Mida Woremo,
Merhabete and Menz Gera Woredas)
M
E
S
O
M
A
C
R
O
Input Provider Farmers (in Mida
Woremo and Menz
Gera WOredas)
Traders (in Mida
Woremo and Menz
Gera WOredas)
Consumers (in Alem
Ketema Addis Ababa)
Farmers’ Integrated
COOPs
WADOs and FTCs
ACSI branches
WTVEDO
TVET Colleges
WADO and FTCs
TVET Colleges
Woreda Land
Administration
ACSI branches
WCLRO
Research
Admin/NBE
MOA & COOP’s
Promotion
Agency
TVET Agency
MOA and MOTI
Research
Admin/NBE
CLRA
Research
Admin/NBE
M
I
C
R
O
Transport Service
Providers
Animal Health
Centers
22
5.3 Value Chain Quantification
Value Chain quantification indicates the number of actors involved at different levels and the
volume or quantity of product transacted with in the chain which helps understanding of which
actor and channel matters in the value chain. Quantities in the quantification are indicated in
absolute or proportion. The value chain quantification is provided for each of selected products
as shown below.
5.3.1 Sheep Value Chain Quantification (Mida Woremo and Menz Gera Woredas)
Input Supply
Production
Trading
Retailing
Woreda
Agriculture
Offices (2)
Agricultural
Research (1) ACSI
branches (2)
> 95% of farmers
in the two
woredas
Small Enterprises
(25-40)
Consumers (in Lemi,
Chancho, Enewari, Jirru,
Deneba and Addis Ababa)
Local consumers
(hotels and
individuals)
Traders (15 –
30/woreda)
30% 70%
10%
90%
75% 15% 10%
Farmers
integrated
Coops
Almaz Bohem and
Mehal Meda
TVET colleges
23
5.3.2 Poultry Value Chain Quantification (Mida Woremo and Menz Gera Woredas)
Farmers
integrated
Coops (3)
Trading
Retailing
ACSI
branches
(3)
> 80% of farmers in
the three woredas
(>85% women)
Small Enterprises
(35-50)
Consumers (in local and
Addis Ababa markets)
Local consumers
(hotels and
individuals)
Traders (25 –
40/woreda)
50% 40%
5%
95%
65% 25% 10%
Agricultural
Research (1)
Woreda
Agriculture
Offices (3)
Input Supply
Production
Almaz
Bohem and
Mehal Meda
TVET
colleges
Woreda
TVED
offices
(3)
10%
24
5.3.3 Bull Value Chain Quantification (Mida Woremo and Merhabete Woredas)
Farmers
integrated
Coops (3)
Trading
Retailing
ACSI branches
(2)
> 65% of farmers in
the two woredas
(mainly better-off)
Small Enterprises
(10-15)
Consumers (in Alem Ketema
and mainly in Addis Ababa)
Local consumers
(hotels and
individuals)
Traders (25 –
40/woreda)
40% 55%
10%
90%
80% 15% 5%
Woreda
Agriculture
Offices (2)
Input Supply
Production
Almaz Bohem
TVET College
Woreda
TVED
offices
(2)
5%
25
5.4 Economic Analysis
Economic analysis of selected value chains is examined which shows value additions along the value chain, contribution of chain
segments to total value, profitability of each chain actors. It also indicates benchmarking with important value chain parameters
compared with others using unit cost of production, labour and other factor productivities, and comparative advantages.
5.4.1 Economic Analysis of Sheep Value chain with specific channel (Mida Woremo and Menz Gera Woredas)
Sheep (for meat) Economic Analysis/sheep (2014)
Sales Price/sheep
Cost of inputs (including cost of unattended sheep, drug, man power) 760 1617 2175
Materials cost (feeding materials, rope...) 15 5 7
Net Value Added 825.00 378.00 168.00
% V. Added 60% 28% 12%
Production Trading Retailing Consumption
1,600.00 2,000.00 2,350.00
26
Operational cost (transport, tax, shelter rent, loading/unloading...) 15 68 25
Total Cost 790 1690 2207
Operational Benefit 810.00 310.00 143.00
Operational Margin 51% 16% 6%
Farmers Traders Retailers
27
5.4.2 Economic Analysis of Poultry Value chain with specific channel (Mida Woremo, Merhabete and Menz Gera
Woredas)
Poultry (Chicken) Economic Analysis/Chicken (2014)
Sales Price/sheep
Cost of inputs (including cost of egg, hen, drug, man power, shelter) 36.5 95
Materials cost (feeding materials, rope...) 5 2
Net Value Added 38.50 23.00
% V. Added 63% 37%
Operational cost (shelter rent, loading/unloading, transport...) 1 5
Total Cost 42.5 102
Production Trading and
Retailing
Consumption
80.00 120.00
28
Operational Benefit 37.50 18.00
Operational Margin 47% 15%
5.4.3 Economic Analysis of Bull (ox) Value chain with specific channel (Merhabete and Menz Gera Woredas)
BUll (for meat) Economic Analysis/Ox (2014)
Sales Price/sheep
Cost of inputs (including cost of un fattened sheep, drug, man power) 6481 13200 18662
Materials cost (Feeding materials, rope...) 50 25 25
Net Value Added 6,469.00 4,775.00 3,813.00
Farmers Traders/ Retailers
Production Trading Retailing Consumption
13,000.00 18,000.00 2,250.00
29
% V. Added 43% 32% 25%
Operational cost (transport, tax, shelter rent, loading/unloading...) 25 125 125
Total Cost 6556 13350 18812
Operational Benefit 6,444.00 4,650.00 3,688.00
Operational Margin 50% 26% 16%
Farmers Traders Retailers
30
5.5 End Market Analysis
5.5.1 Sheep
Local butcheries slaughter sheep and supply for domestic consumption in the form of raw/
roasted meat. Hotels and restaurants slaughter sheep mainly to prepare dishes indifferent forms.
Sheep are consumed by domestic consumers either in the form of processed meat from
hotels/butchers and at home. The main channel is that sheep transported to Addis Ababa
butchers, supermarkets and consumer markets and some sheep slaughtered at Modjo export
abattoirs. Sheep from the targeted woredas are also provided for Chancho, Enewari, Jirru and
Deneba markets which are relatively near to Addis Ababa and have higher selling price since
there is relatively high number of traders. Sheep from the targeted woredas have higher market
demand in Addis Ababa with market good will.
5.5.2 Poultry
The main channel of chickens marketing is that producers provide their products to individuals at
the local market for reproductive household consumption purpose. Some part of poultry products
are also channeled to Addis Ababa market by traders who collect chickens from local markets
and provide to Addis Ababa market.
5.5.3 Bull
Fattened oxen marketing is mainly channeled to Addis Ababa market by small traders who
usually uses on foot transport and big traders who uses vehicles to provide to Addis Ababa
Market. However it is seasonal, oxen have demand by the local communities for consumption
especially in holidays like Easter, Christmas, and New Year. Local communities also buy bulls
for reproduction and crop production purpose.
5.6 Value Chain Constraints
Value chain constraints are factors which bottlenecks of the market channels of selected
commodities (sheep, poultry and bulls) and which helps to show recommendation for future
intervention. The factors are mainly categorized from the view of technology or product
development, market access, organization and management, finance, input supply for primary
production and infrastructure.
The value chain constraints for the selected agricultural commodities are provided below in
summarized form of table.
31
Factors Sheep Value Chain Poultry Value Chain Bull Value Chain
Technology/product
development
- Small scale farmers lack
technical skill to produce
improved varieties which
reach to slaughter relatively in
a short period of time
-Farmers lack knowledge and
skills of improved forage
development
-producers have no
experience to use incubators
which yield more within a
short period of time
-Farmers lack knowledge and
skills of improved forage
development
Market Access - farmers lack access to big
buyers that reduces their sales
potential,
- Farmers Lack of up-to-date
market information that
reduces their bargaining
capacity for better sales.
- Lack of strong marketing
organizations and supply
chain facilitation limits market
out lets of smallholders,
- Weak bargaining power of
producers
- farmers lack access to big buyers
that reduces their sales potential,
- Farmers Lack of up-to-date
market information that reduces
their bargaining capacity for
better sales.
- Lack of strong marketing
organizations and supply chain
facilitation limits market out lets
of smallholders,
32
Organization & management - Inability of
smallholders to
organize for
economies of scale
limits their
opportunities to access
higher value markets,
- Smallholders lack of
capacity to develop
business plan
decreases their
potential of sales
- Smallholders lack of
capacity and time to
do accounting
increases their cost.
- Most of smallholders
(specially men) do not
give attention for poultry
production
- Poor quality of poultry
houses
- Inability of smallholders to
organize for economies of
scale limits their
opportunities to access higher
value markets,
- Smallholders lack of capacity
to develop business plan
decreases their potential of
sales
- Smallholders lack of capacity
and time to do accounting
increases their cost.
Finance
- Inability of farmers to
pre-finance improved
inputs, resulting in
reduced yields,
- Youths are not able to
engaged on bull
fattening due to lack of
starting capital
- It’s obligatory to have
- - Inability of farmers to
provide adequate collateral
reduces their access to
working capital loan,
- Youths are not able to
engaged on bull fattening due
to lack of starting capital
- It’s obligatory to have own
33
own contribution to
get loans
contribution to get loans
Input supply
- Limited availability of
improved varieties,
reduces productivity of
smallholders
- Limited availability of
improved varieties,
reduces productivity of
smallholders
- No access to poultry
feed
- Limited access to improved
animal feed
- Low access to veterinary
services
Infrastructure
- poor roads and other
facilities increase the
price of final products
and makes competing
with imported
commodities difficult,
- Lack of appropriate
information source and
limited access, reduces
farmers awareness on
market situation and
the possibility to
capture market
opportunities.
- poor roads and other
facilities increase the
price of final products
and makes competing
with imported
commodities difficult,
- Lack of appropriate
information source and
limited access, reduces
farmers awareness on
market situation and the
possibility to capture
market opportunities.
- poor roads and other facilities
increase the price of final
products and makes
competing with imported
commodities difficult,
- Lack of appropriate
information source and
limited access, reduces
farmers awareness on market
situation and the possibility
to capture market
opportunities.
34
5.7 Market Based Solutions for the Value Chains constraints
Organizing unemployed youths in producers cooperatives/for sheep, poultry and bull/ and
promote producer cooperatives.
Timely provision of market information from various sources by enabling the youths to
use/access internet.
Publicizing market information consistently for all farmers.
Integrating farmers/youths and their cooperative to market.
Identifying potential markets capable enough to take up the production through branding
of the product.
Provide loan for youths by linking with rural micro financial institutions
Provide technical trainings on sheep, poultry and bull production for youths
Organize youths on cooperative forms to increase their bargaining power
Provide training on basic business planning and management
Organize producers to jointly transport their products using vehicle
VI. Vision/Mission/Objectives of Value Chains
Vision: to see well-structured Value chains of Sheep, Poultry and Bull for equal and mutual
benefits of actors in the channels.
Mission: NED works to strengthen the Sheep, Poultry, and Bull value chains by promoting
unemployed youth engagement in the production process, and linking the local markets to
regional markets.
Objectives of the Value Chains:
NED wants to achieve the following objectives in close collaboration with governmental, private
institutions and development partners with in the value chains of sheep, poultry and bull in Mida
Woremo, Merhabete and Menz Gera Woredas of N/Shewa zones.
To promote production and productivity of sheep, poultry and bull yields
To build the skills of unemployed and vulnerable rural youths on improved agricultural
productions and business management
To build the capacities of TVET institutions to deliver quality short term trainings for
vulnerable and unemployed youths
To increase rural youths access to quality short term vocational skills trainings
To strengthen the Public Private Partnership for a sustained youths employment on
agricultural vocational sector
To strengthen flow of market information among rural smallholders
35
To establish contractual basis transactions of selected commodities among actors in the
selected value chains
To increase the benefit of value chain actors reasonably based on their share on the chain
VII. Proposed Intervention Programs
Currently NED is implementing a project entitled “Agricultural TVET; Livelihood Improvement
of Unemployed/Vulnerable Youth for food Security in Amhara Region” being as a lead partner
with financial support from L4W Program and Edukans foundation. the project is being
implemented by NED (in Mida,Merhabete and Menz Woredas in North Shewa zone), Wabe
Children’s Aid and Training (in Debretabor woreda in South Gondar zone), Guhion
Development Aid Organization (in Debremarkos Woreda administration in East Gojam zone)
and Facilitator for Change (in Bure zuria woreda in Western Gojam zone) in Amhara regional
state, Ethiopia.
Recognizing the problem of youth unemployment and their dependency on their parents, NED is
implementing this project in close collaboration with Almaz Bohem and Mehal Meda TVET
colleges, Technical and Vocational Enterprises Development offices, Women Children and
Youths Affairs offices, and small scale private enterprises in Mida Woremo, Merhabete, and
Menz Gera woredas and F-FARM PLC. With regard to the project contribution to the value
chains of selected commodities, NED intended to strengthen the value chains for the benefit of
rural poor specifically for the targeted unemployed and vulnerable youths.
Provision of short term agricultural vocational skills trainings: In close collaboration with
Almaz Bohem and Mehal Meda TVET colleges; NED has signed project agreement to provide
market oriented short term agricultural vocational skills trainings for a total of 300 unemployed
and vulnerable rural youths to enable them engaged on viable small scale agricultural income
gaining activities.
Strengthening the capacities of TVET institutions: The project has also a capacity building
component for TVET colleges to deliver short term and flexible market demandable agricultural
courses for rural youths who have no access to TVET. The main actions under this component
are; strengthening TVET institutions agricultural workshops by equipping with necessary
materials, trainers capacity building through training and experience sharing, and linking with
public and private institutions to provide trainings on joint basis.
Engage the youth on viable agricultural IGAs: After the successful completion of the short
term agricultural courses, the next step is that youths will be organized to start small scale
agricultural businesses. The woreda TVED offices will be responsible to support the youths on
the preparation of business plans and follow up.
36
Strengthening market linkages: The project will also strengthen flow of market information
and create linkage with potential buyers by searching big traders at Addis Ababa with
appropriate prices. In addition a web-site will be developed which will have full information of
the project and its approaches.
VIII. Monitoring and Evaluation
It is relevant to monitor and evaluate the project towards the improvement of selected value
chain and we need to set indicators to measure the performance of value chains. The monitoring
and evaluation process helps to determine the progress towards goals of value chains (to prove);
make necessary revisions of programs based on lessons learnt from past experiences (to
improve) and also it is important to report relevant stakeholders/donors. The monitoring and
evaluation of value chains should be done jointly with all concerned stakeholders and actors in
the chain.
Model of the Value chains development
Performance Indicators;
Number of rural unemployed youths engaged on small scale agricultural businesses
The capacity of TVET intuitions to provide market demandable flexible agricultural
courses
The level of partnership among private and public institutions for the provision of viable
agricultural vocational trainings
The level of income that the chain added to the unemployed and vulnerable youths
The level of youth employment on agricultural business
Role of farmers/producers in the economic activity
Flow of information among chain actors
Activities
of the project
Sustainable Market
Based solution
Improved
MSME performance
Food Security ensured
among rural youths
Outputs Outcomes Impacts
37
IX. Conclusion
The engagement of farmers on animal fattening and poultry production increases year to
year. This on-farm activity is taken by most of farmers to boost the number of income
generating performance however it is performed in a very traditional way.
Farmers have different customers for their products. The most buyers of their products are
local communities and traders but no relation with cooperative.
Youths encountered problems in animal production and fattening to improve their operation
scale. From these tribulations lack of capital, limited skills of production, and lack of
working land were the three major ones.
Youths are facing problems of accessing credit services due to complication of requirements
from micro financial institutions to borrow.
Most of rural youths have no vocational skills and they have lower access to flexible
agricultural vocational skills trainings
Most of TVET institutions have no experience in providing agricultural vocational skills
trainings and their courses lack flexibility
TVET institutions have poor linkage with private and public institutions
Most of rural youths have no capacity to cover costs of trainings for TVETs
The roads from Mida Woremo, Merhabete, and Mehal meda needs improvement for better
market linkages with Addis Ababa and other regional markets
38
X. Recommendations
To improve the production and productivity of sheep, poultry and bull, there is a very huge
space to increase unemployed youth training on short term vocational skills trainings and
engage them on production on an organized form which needs a collaborative efforts of
CSOs, government, and private firms and TVET institutions.
To increase rural vulnerable and unemployed youths’ access to marketable agricultural skills
trainings, it is the best way that to introduce mobile trainings which can provide the trainings
by moving from kebele to kebele.
Woreda level TVED offices also need capacity building to expand their activities to all
youths to support and follow up their businesses.
TVET institutions capacity also should be improved to deliver quality short term agricultural
courses by equipping their agricultural workshops with relevant materials, books and kits;
capacitating trainers, and linking them with private and public sectors.