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ETHIOPIAVALUE CHAIN ROADMAP FOR PULSES 2016-2020
ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES
ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES
This value chain roadmap was developed on the basis of the process, methodology and technical assistance of the International Trade Centre (ITC) within the framework of its Trade Development Strategy programme.
ITC is the joint agency of the World Trade Organization and the United Nations. As part of the ITC mandate of fostering sustainable development through increased trade opportunities, the Trade Development Strategy programme offers a suite of trade-related strategy solutions to maximize the development payoffs from trade. ITC-facilitated trade development strategies and roadmaps are oriented to the trade objectives of a country or region and can be tailored to high-level economic goals, specific development targets or particular sectors, allowing policy makers to choose their preferred level of engagement.
The views expressed herein do not reflect the official opinion of ITC. Mention of firms, products and product brands does not imply the endorsement of ITC. This document has not been formally edited by ITC.
The International Trade Centre ( ITC )
Street address : ITC, 54-56, rue de Montbrillant, 1202 Geneva, SwitzerlandPostal address : ITC Palais des Nations 1211 Geneva, SwitzerlandTelephone : + 41- 22 730 0111Postal address : ITC, Palais des Nations, 1211 Geneva, SwitzerlandEmail : [email protected] : http :// www.intracen.org
Layout: Jesús Alés – www.sputnix.es
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ACKNOWLEDGMENTS
The value chain roadmap was elaborated as a component of ITC’s Supporting India’s Trade and Investment project ( SITA ), a South-South trade and investment initiative that aims to improve the competitiveness of select value chains through the provisions of partnerships from institutions and business from India. SITA is funded by the U.K. Department of International Development ( DFID ).
The formulation of the value chain roadmap was led by the Government with the technical assistance of the International Trade Centre ( ITC ). This document repre-sents the ambitions of the private and public sector stakeholders for the develop-ment of the sector. Stakeholders’ commitment and comprehensive collaboration have helped build consensus around a common vision that reflects the realities and limitations of the private sector, as well as policymakers and trade-related institutions.
The document benefited particularly from the inputs and guidance provided by the members of the sector team :
� Genzeb Akele � Kassahun Bekele � Eyerusalem Regassa � Ahmed M. Mukred � K.P.C. Rao
Technical support and guidance from International Trade Centre ( ITC ) was rendered through Alberto Amurgo Pacheco, Anna Victoria Quiñones Barr, Aman Goel, and Bharat Kulkarni. Assefa Yohannes provided valuable support as national consultant.
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CONTENTS
Acknowledgments v
EXECUTIVE SUMMARY XIV
GLOBAL TRENDS IN PULSES 19Global production of pulses 19
Global trade in pulses 20
Top markets for pulses 23
PULSES IN ETHIOPIA 25
VALUE CHAIN ANALYSIS 25
STRATEGIC ISSUES AND COMPETITIVE CONSTRAINTS 31
Supply-side issues 31
Business environment constraints 33
Market entry constraints 34
Socioeconomic and developmental constraints 36
STRATEGIC IMPLICATIONS FOR THE VALUE CHAIN ROADMAP 37
THE WAY FORWARD 40
THE STRATEGIC OBJECTIVES 40
THE VALUE CHAIN ROADMAP FOR THE NEXT FIVE YEARS 44
FDI AND SOUTH–SOUTH COOPERATION 45
The Ethiopian business environment for the pulses sector 48
FUTURE VALUE CHAIN 50
MOVING TO ACTION 52
ROADMAP PLAN OF ACTION 53
APPENDICES 65
Appendix I : Ethiopia’s production of pulses 66
Government policy 66
Scope of the pulse sector 66
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Employment 67
Pulse market 68
Planting and harvesting season 68
Planting regions 69
Production 69
Appendix II : Ethiopia’s exports of pulses 75
Export partners 75
Export products 78
Appendix III : Policy environment and trade agreements 80
Agricultural policy 80
Industrial policies 82
Trade policy 83
Development policies 85
Appendix IV : Sector development targets 86
Appendix VIII : List of participants at consultations 92
References 94
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FIGURES
Figure 1 : The logical framework of the roadmap xvi
Figure 2 : World import basked of pulses ( US $ thousands ) 20
Figure 3 : Imports by pulse category and leading importing region ( US $ thousands ) 21
Figure 4 : Exports of pulses by region or regional group, 2004–2013 ( US $ thousands ) 22
Figure 5 : Value chain of the pulses sector in Ethiopia 26
Figure 6 : Key determinants for a vision for the pulses sector 40
Figure 7 : The logical framework of the roadmap 44
Figure 8 : The future pulses value chain 50
Figure 9 : Ethiopia’s pulse area–production metric 1993–2013 70
Figure 10 : Ethiopia’s pulse production metric 1993–2013 70
Figure 11 : Ethiopia’s pulse area harvested metric 1993–2013 71
Figure 12 : Ethiopia’s pulse yields metric 1993–2013 71
Figure 13 : Yield of ‘Beans, dry’ : world-leading top three and top six African countries 2000–2013 73
Figure 14 : Ethiopia’s pulse exports 2001–2014 75
Figure 15 : Ethiopia’s top 20 markets for pulses, 2009 and 2014 ( US $ thousands ) 76
Figure 16 : Ethiopia’s exports of pulses by region or regional group, 2001–2013 ( US $ thousands ) 77
Figure 17 : Ethiopia’s export basket of pulses, 2001–2014 ( US $ thousands ) 78
Figure 18 : Ethiopian exports a share of world exports 2001–2014 ( % ) 79
Figure 19 : Geographical distribution for tariffs applied 89
Figure 20 : Comparative yields 2012 ( hectograms / ha ) 90
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TABLES
Table 1 : World-leading exporters of pulses, market share >=1 % ( US $ thousands ) 22
Table 2 : World-leading importers of pulses, average for 2012–2013 >= US $ 100 million ( US $ thousands ) 24
Table 3 : Value chain segments needing FDI and likely sources 47
Table 4 : The investment climate in Ethiopia and possible competitors for pulse investment 48
Table 5 : Comparison of costs and competitive factors 49
Table 6 : Number of private holders of temporary crops by size of holding during the Meher season 67
Table 7 : Pulses : estimates of improved seeds, irrigation, and areas that applied pesticides and fertilizer ( private holdings, Meher season ) 2008 / 09–2011 / 12 72
Table 8 : Regions share in total production by pulse variety ( 2014 / 15, Meher season ) 74
Table 9 : Ethiopia’s top 20 markets for pulses 76
Table 10 : Ethiopia’s pulses export growth 2009 / 10–2013 / 14 86
Table 11 : Countries granting preferential schemes to least developed countries 88
Table 12 : Pulse varieties’ and regions’ share in total pulses production ( 2014 / 015, Meher season ) 90
Table 13 : Estimates on improved seed, irrigation, pesticide and fertilizer applied area by pulse variety ( private holdings, Meher season ), 2008 / 09–2011 / 12 91
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ACRONYMS
The following abbreviations are used :
ADLI Agricultural Development Led Industrialization
AGOA African Growth and Opportunity ActATA Ethiopian Agricultural Transformation
AgencyBoA Bureau of AgricultureCAGR Compound Annual Growth RateCOMESA Common Market for Eastern and Southern
AfricaCRGE Ethiopian Climate Resilient Green EconomyECX Ethiopian Commodity ExchangeEGTE Ethiopian Grain Trade EnterpriseEIAR Ethiopian Institute of Agricultural ResearchENAO Ethiopian National Accreditation OfficeEPOSPEA Ethiopian Pulses, Oilseeds and Spices
Processors-Exporters AssociationESE Ethiopian Seed EnterpriseEU European UnionFAO Food and Agricultural Organization
of the United NationsFCA Federal Cooperative AgencyFDI Foreign Direct InvestmentGCC Gulf Cooperation CouncilGDP Gross Domestic Product
GSP Generalized Scheme of PreferencesGTP Growth and Transformation Planha HectaresICRISAT International Crops Research Institute
for the Semi-Arid TropicsIPM Integrated Pest ManagementITC International Trade CentreMFN Most Favoured NationMoA Ministry of AgriculturePASDEP Plan for Accelerated and Sustainable
Development to End PovertyPoA Plan of ActionRARI Regional Agricultural Research InstituteSITA Supporting Indian Trade and Investment
in AfricaSNNPR Southern Nations, Nationalities,
and Peoples’ RegionSNV Netherlands Development OrganizationTL III Tropical Legumes III projectUSAID United States Agency for International
DevelopmentWEF World Economic ForumWTO World Trade Organization
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FOREWORD
MR. AYANA ZEWDIE STATE MINISTER,
ETHIOPIA MINISTRY OF TRADE
The Ministry of Trade of the Federal Democratic Republic of Ethiopia is pleased to welcome the Value Chain Roadmap for the development of Pulses sector in Ethiopia. This Roadmap has been developed with technical assistance from the International Trade Centre ( ITC ) as part of their Supporting Indian Trade and Investment for Africa ( SITA ) project – the first South-South Aid-for-Trade project funded by the United Kingdom’s Department for International Development ( DFID ).
This document follows comprehensive sector-wide consultations that guided its designed. The Strategy will contribute to facilitate productivity, improve the quality and the effective promotion of the Pulses sector in the country.
We believe that this Pulses Roadmap, will not only offer us guidelines on the best way forward but is of vital importance for Ethiopia as it comes at a time when the country is launching its second growth and transformation plan ( GTP II ).
I also take this opportunity to thank the ITC-DFID association in taking up the initiative, as well as all stakeholders who have contributed to the creation of this document. Through your continued support and commitment.
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FOREWORD
MR. HAILE BERHE PRESIDENT OF THE ETHIOPIAN
PULSES, OILSEEDS AND SPICES PROCESSORS-EXPORTERS ASSOCIATION
The Ethiopian Pulses, Oilseeds and Spices Processors-Exporters Association ( EPOSPEA ) has been established with the objective of building the capacity of its members to make them competitive in the global market. In this context, EPOSPEA is pleased to have partnered with ITC-DFID Supporting Indian Trade and Investment ( SITA ) project, having closely collaborated since the start of its implementation phase.
This Value Chain Roadmap, aimed at strengthening the Ethiopian Pulses sector, is prepared after extensive consultations – on the opportunities and constraints in pulses production, productivity, quality, processing and packing as well as marketing aspects – with members of EPOSPEA and other stakeholders at the national level.
I wish to thank the International Trade Centre ( ITC ), the implementation agency of the SITA project, and the United Kingdom’s Department for International Development ( DFID ), the funding partner, as well as all other stakeholders involved in the making of this strategic document. As we embark on the imple-mentation of the project, EPOSPEA will endeavor to work closely with ITC and other stakeholders for the overall benefit of the Pulses sector, as well as members of the Association.
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FOREWORD
ITC MS ARANCHA GONZALEZ
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Photo: (CC BY-SA 2.0) DFID - UK Department for International Development (CC BY 2.0) , A AAAA AA AAAAA AAAAAAAA
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EXECUTIVE SUMMARYThe objective of this roadmap is to improve the performance of Ethiopia’s pulses sector by raising productivity and improving its internal organization while preserving the environment and contributing to the developmental divi-dend. The roadmap begins with an introduction to the global supply and demand of pulses. It then details Ethiopia’s local supply in the context of global demand. This is followed by an analysis of the various constraints currently impeding the Ethiopian sector from realizing its full potential. Finally, it lays the roadmap for removing the current constraints and presents a detailed Plan of Action ( PoA ).
Global trends in pulses
The global importance of pulses makes these crops ideal for simultane-ously achieving three developmental goals – reducing poverty, improv-ing human health and nutrition, and enhancing ecosystem resilience.
Pulses’ nutritional value and versatile use has rendered them a hot com-modity on the global market. In fact, by 2013, pulse exports amounted to US $ 9,425,000,000. While developed countries are increasing both supply and demand, demand is still largely driven by population growth in developing countries. Nonetheless, Ethiopia is keeping up with the developed countries, as it is the leading African exporter of pulses. Between 2012 and 2014 Ethiopia ranked twelfth among global pulse exporters.
Though African countries are lagging behind the leading pulse suppliers, the conti-nent is attracting more investors in agriculture as production costs rise in Asia. The 2014 Grow Africa annual report stated that in Ethiopia alone there was US $ 29 million in agricultural investments during 2014. As investments and agricultural outputs in-crease, it is important that African countries target the largest markets, notably India and China. For the last decade, India has been by far the largest importer of pulses. Since 2010, China has become the world’s second-largest importer of pulses.
Pulses in Ethiopia
Ethiopia’s pulses sector has experienced tremendous growth in the last five years and is now the second-largest component of Ethiopia’s agricultural sector and an important part of Ethiopia’s gross domestic product ( GDP ). This growth is largely due to the Growth and Transformation Plan ( GTP ) which parliament approved in 2010. This development plan spearheaded the Government’s strong support for the agricultural and pulses sectors.
Photo: (CC BY-SA 2.0) DFID - UK Department for International Development (CC BY 2.0) , A AAAA AA AAAAA AAAAAAAA
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[ EXECUTIVE SUMMARY ]
As Ethiopia’s pulses sector has grown, so have its export markets. Between 2001 and 2014, the number of markets with sales val-
ued above US $ 1 million grew from six to 31. Thus, Ethiopia is clearly gaining ground in many markets. However, it
has still not capitalized on all opportunities and should focus on the Indian and Chinese markets within the
next five years.
Constraints on the pulses sector
The roadmap unveils a wide set of con-straints that are directly or indirectly holding the Ethiopian pulses sector back from reaching its full potential. These constraints are then catego-rized into production, intermediation or developmental issues. Each of these categories of constraints is finally addressed in the PoA.
Production issues : the production issues section focuses on describing three main causes of Ethiopia’s pulses sector’s low production level. First, it
details four reasons for the high cost of local pulse production. These include :
the small average farm size, the limited affordability and availability of seeds, the
excessive cost of finance, and the poor production mechanization and postharvest
techniques used.
Next, the main causes of low productivity among smallholders are described. These include : limited
pesticide and fertilizer use, the lack of crop rotation, low-yielding seeds, and the lack of mechanization. Finally, six
causes of the low quality of pulse yields are noted. These include the absence of quality diagnostics, low seed quality, the absence of
quality incentives, the lack of technical skills, poor postharvest techniques, and unskilled labour and outdated machinery.
Intermediation issues : the intermediation issues section focuses on the causes of the sector’s poor internal organization, its limited competitiveness in existing markets, and inability to enter new markets. The section notes five main causes of the sector’s poor organization including : the lack of institutional organization and sector representation, the lack of necessary information, agents’ misaligned price expectations, the excessive number of mediators and brokers in the value chain, and the limited and flawed use of contracts.
xvi
It continues to describe six causes of the sector’s limited competitiveness and in-ability to enter new markets including : inadequate financial support for international trade, underinvestment, costly transportation and logistics, inadequate sources of market intelligence, weak trade promotion and the sector’s overall lack of adequate business skills.
Developmental issues : the developmental issues section focuses on two causes of the high level of unskilled labour among women and youth – i.e. land scarcity and social restrictions – and on two causes of possible environmental issues, i.e. low crop rotation and poor disposal and management.
The way forward
The Ethiopian pulses sector stakeholders’ vision is to create an internationally com-petitive sector that supports Ethiopia’s overall development. The realization of this vision is to be achieved through the implementation of three strategic objectives, which are broken down into operational objectives that define the scope of their implementation.
The strategic objectives include major thematic issues that are addressed throughout the roadmap and solidify the intended goals and purpose of this project. The three strategic objectives include : ( 1 ) boosting local productivity and product quality ; ( 2 ) improving intermediation ; and ( 3 ) maximizing the developmental dividend of the sector. Figure 1 provides an illustration of how each strategic objective and their succeeding operational objectives contribute to the overall improvement of Ethiopia’s pulses sector over the coming five years.
Figure 1 : The logical framework of the roadmap
xvii
Boosting productivity and quality aims to bring the pulse supply to the level re-quired by international markets, and requires the creation and use of public and market-led incentives. There are three steps that must be taken for this objective to be met. First, the average cost of pulse production must fall ( 1.1 ). Second, the production of pulses must expand ( 1.2 ). Finally, the overall quality of pulses must increase ( 1.3 ). As seen in figure 1, the combination of cost reduction and production expansion, along with the implementation of the operational objectives of the second and third strategic objectives, will place the sector in a situation where it can start to tackle structural quality issues ( 1.3 ).
Improving intermediation aims both to increase exports and to obtain the informa-tion necessary to channel to producers. This requires strengthening the connection between producers and the relevant intermediaries and will result in increased export competitiveness. The strategic objective is broken down into two operational objec-tives. First, the sector’s internal organization must be strengthened and improved ( 2.1 ). Second, the sector’s export competitiveness must increase ( 2.2 ). As seen in figure 1, the implementation of the first operational objective, combined with the execution of the third strategic objective, should lead to an increase in the sector’s export competitiveness ( 2.2 ).
Maximizing the developmental dividend aims to ensure that development of the sector still preserves the environment and contributes to the developmental dividend. Specifically, this includes protection of the environment and the inclusion of women and youth. There are two steps that must be taken for this strategic objective to be met. First, the skills of women and youth must be strengthened ( 3.1 ). Second, the development of the pulses sector must be done in an environmentally sensitive manner. In other words, development cannot jeopardize the environment and must contribute to the developmental dividend ( 3.2 ).
PoA
The PoA provides the overall framework that will guide the implementation of the roadmap over the next five years. This contains strategic objectives, operational objectives and relevant activities. Activities define the precise actions that will be undertaken and the responsible organization( s ). Activities specify concrete targets and measures.
Photo: (CC BY-SA 2.0) Helen, GrAAn LAnAAAAAAAA
[ GLOBAL TRENDS IN PULSES ]
19
GLOBAL TRENDS IN PULSES
Pulses are the edible dry mature seeds of leguminous crops, excluding those harvested for fresh products, which are classified as vegetables.1 Pulses include dry beans, dry peas, dry broad beans, chickpeas, lentils, cow peas, pi-geon peas, lupins, vetches and pulses.2 This excludes green beans and green peas, which are considered vegetable crops.3 Also excluded are crops that are mainly grown for oil extraction ( oilseeds like soybeans and peanuts ), and crops which are used exclusively for sowing ( clovers, alfalfa ).4
Pulses are very high in protein and fibre, and are low in fat. Like their cousins in the legume family, pulses are nitrogen-fixing crops that improve the environmental sustain-ability of annual cropping systems.
Because of their versatility and nutritional value, the glob-al market for pulses is large and rapidly increasing. Indeed, the Food and Agricultural Organization of the United Nations ( FAO ) and its Member states declared 2016 the International Year of Pulses.5 According to the FAO Statistics Division, roughly two-thirds of pulses are used for human consump-tion, 20 % to feed animals, and the remainder is used as seeds.6
Pulses are a vital source of proteins and amino acids for humans.7 Pulses are a large part of many countries’ traditional diets and are the main protein source for lower-income people worldwide. They also have medicinal value. In a 2014 study, Canadian doctors found that ‘dietary pulse intake significantly reduces low-density lipoprotein choles-terol levels.’8 Another study conducted in 2015 demonstrated
1.– Food and Agriculture Organization of the United Nations ( 2002 ). AArAAuA-tural Commodities : Profiles and Relevant WTO Negotiating Issues, chapter 1 – Basic Foodstuffs : GrainsA Rome : FAO. Available from : https : / / www.fao.org / docrep / 006 / y4343e / y4343e02.htm.2.– Ibid.3.– Pulse Canada ( 2015 ). What is a pulse? Available from https : / / www. pulsecanada.com / about-us / what-is-a-pulse.4.– Food and Agriculture Organization of the United Nations ( 1994 ). Definition and classification of commodities – pulses and derived products. Available from https : / / www.fao.org / es / faodef / fdef04e.htm.5.– The International Year of Pulses aims to recognize pulses’ nutritional ben-efits, their importance for food security in developing countries, and their posi-tive impact on soil fertility when used in rotation with other crops.6.– Food and Agriculture Organization of the United Nations ( 2015 ). 2016 International Year of Pulses website. Available from https : / / www.fao.org / pulses-2016 / en / . 7.– Ibid.8.– Ha, V. and others ( 2014 ). Effect of dietary pulse intake on established therapeutic lipid targets for cardiovascular risk reduction : a systematic review and meta-analysis of randomized controlled trials. CAnAdAAn MAdAAAA AAAAAAA-AAAn JAurnAA, 17 April. Available from https : / / www.ncbi.nlm.nih.gov / pmc / arti-cles / PMC4016088 / pdf / 186e252.pdf.
that increased consumption of pulses decreases the risk of colorectal cancer.9
Pulses are also used globally as animal feed because of their high protein content.10 Thus, they are increasingly serv-ing emerging countries, which are increasing their consump-tion of meat. In addition, because pulses are leguminous plants that have nitrogen-fixing properties, including pulses in farming rotation will replenish the soil with oxygen that crops like corn deplete from the soil. Thus, pulses increase soil fertility and have a positive impact on the environment.11
The importance of pulses makes them ideal crops for simultaneously achieving three developmental goals – re-ducing poverty, improving human health and nutrition, and enhancing ecosystem resilience.
GLOBAL PRODUCTION OF PULSES
This section provides analysis of global trends and sheds light on pulse crop production, price, trade and consump-tion patterns observed globally. As mentioned above, pulses include dry beans, dry peas, dry broad beans, chickpeas,12 lentils, cow peas, pigeon peas, lupins, vetches and pulses.13 Pulses are produced globally. Typically, especially in devel-oping countries, pulse crops are planted on marginal land and often grown under rain-fed conditions.14 This explains their low yields and large year-to-year production variability.15
Production of the major pulses ( except dry peas ) is con-centrated in developing countries, which account for 70 % of production.16 Dry pea production is dominated by devel-oped countries, accounting for over 80 % of global dry pea output. Since 1980 global trade of pulses has exhibited an
9.– Beibei Zhu, Yu Sun, Lu Qi, Rong Zhong and Xiaoping Miao ( 2015 ). Dietary legume consumption reduces risk of colorectal cancer : evidence from a meta-analysis of cohort studies, Nature.com, 5 March. Available from https : / / www.nature.com / articles / srep08797?WT.ec_id=SREP-692-20150310. ( The study broadly encompassed legumes, which they defined as ‘a diverse group of foods, including soybeans, peas, beans, lentils, peanuts, and other podded plants, which are widely cultivated and consumed.’ Most of these also qualify as pulses. )10.– Food and Agriculture Organization of the United Nations ( 2015 ). 2016 International Year of Pulses website. Available from https : / / www.fao.org / puls-es-2016 / en / . 11.– Ibid.12.– Available from https : / / www.cgiar.org / our-strategy / crop-factsheets / chick-pea / .13.– Food and Agriculture Organization of the United Nations ( 2002 ). Agricultural Commodities : Profiles and Relevant WTO Negotiating Issues, chapter 1 – Basic Foodstuffs : GrainsA Rome : FAO. Available from https : / / www.fao.org / docrep / 006 / y4343e / y4343e02.htm.14.– Ibid.15.– Ibid.16.– Ibid.
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
annual growth rate of 7 %, which translates into an annual increase of roughly 5 million tons.17 The proportion of pulse production that is traded increased from 6 % to 7 % in the early 1980s to about 15 % currently.18
As demonstrated in figure 2, dry peas are the most-trad-ed pulse with a 37 % share of the total pulse trade, followed by dry beans ( 28 % ), lentils ( 9 % ) and chickpeas ( 8 % ).19
17.– Ibid.18.– Ibid.19.– Ibid.
Global trade in pulses is not a residual market, as several countries produce for the export market while many others rely on the world market to meet domestic demand. The largest markets for food pulses are in Bangladesh, India, Pakistan and Sri Lanka, while the largest market for feed pulses is the European Union ( EU ).20
20.– Ibid.
Figure 2 : World import basked of pulses ( US $ thousands )
0
2.00
0.00
0
4.00
0.00
0
6.00
0.00
0
8.00
0.00
0
10.0
00.0
00
Beans,small red (Adzuki)
Beans dried, shelled... nes(071339)
Broad beans&horse beans..(071350)
Leguminous vegetables..nes(071390)
Mung,black/green gram…(071331)
Chickpeas, …(071320)
Lentils dried, shelled…(071340)
Kidney &white pea beans …(071333)
Peas dried, shelled…(071310)
Pulses
Avg.12-13 Avg. 08-09
SAurAA : International Trade Centre ( 2015 ).
Note : The arrows indicate Ethiopia’s pulses with more than 1 % share in world’s export basket in the period 2012–2013.
GLOBAL TRADE IN PULSES
Pulses are a globally consumed commodity. Hence, trade trends for this crop are determined by importing countries’ local production and by production in exporting countries, both of which are affected by weather conditions, manage-ment of plagues, price increases of other crops ( as farmers can be compelled to move towards a higher rent crop ) and countries’ trade policies ( such as export incentives ). Such characteristics are reflected in the sector’s trade data ; in other words, unstable flows are observed in world trends.
For example, as seen in figure 3, although Asia is the region that imports the most pulses, not all categories of pulses have Asia as the leading importing region. The reasons underpinning these trends depend not only on the specif-ics of the product, but also on the value chain in which the commodity has been used as input and the end market. Evaluating a country’s trade participation in any segment, therefore, should be conducted in a holistic fashion.
[ GLOBAL TRENDS IN PULSES ]
21
Figure 3 : Imports by pulse category and leading importing region ( US $ thousands )
SAurAA : International Trade Centre ( 2015 ).
Top expor ters of pulses
In the past three decades there has been impressive growth in the global exports of pulses. A 2004 FAO study observed that exports of these crops doubled in 2003 in compari-son with the previous 20 years.21 In subsequent years, the trend continued along the same path. Between 2004 and 2008, annual percentage growth varied from 10 % to 35 %. The compound annual growth rate ( CAGR ) between 2004 and 2008 was 22 %. By 2013, pulse exports reached a re-cord high of US $ 9,425,000,000. This may be surpassed in 2014 as available trade values are already close to those of 2013, and the trade data for pulses of many countries is still missing.
Such trends on the supply side may be explained by increased yields, especially in developed countries, and the surge in cultivated areas ( chiefly led by developing coun-tries ). On the demand side, the trends may be explained by the increasing world population, the increased consumption of meat in developing countries, and by greater importance being given to pulses’ nutritional value around the globe.
21.– Food and Agriculture Organization of the United Nations ( 2005 ). Pulses : Past Trends and Future Prospects. Summary of paper contributed by FAO to the Fourth International Food Legumes Research Conference, New Delhi, 18–22 October. Available from https : / / www.fao.org / filead-min / templates / est / COMM_MARKETS_MONITORING / Pulses / Documents / PulsesStudy.pdf.
On the supply side, the pulses sector has seen an increase in the number of exporters and suppliers during the last five years. The number of countries with export values above US $ 1 million went from about 70 in the early 2000s to 78 in 2008, and reached 90 in 2013. The two leading export-ers of pulses, Canada and China, increased the value of their exports almost every year. Other leading suppliers are catching up rapidly. Countries such as Australia, India and the Russian Federation have shown growth in double digits and have expanded their share.
Another country that is carving a path in international markets is Kenya. This is the only country with export values above US $ 10 million with a triple-digit CAGR between 2009 and 2013 ( it was 111 % ), and a rising market share ( from 0.1 in 2008–2009 to 0.4 in 2012–2013 ). Notwithstanding Kenya’s remarkable growth over the decade – 59 % CAGR between 2004 and 2013 – trade flows during that period saw extreme peaks. For example, in 2009, exports fell below US $ 10 mil-lion and reached US $ 59 million in 2013.
Ethiopia is also keeping up, as it is the leading African exporter of pulses. Between 2012 and 2013 Ethiopia ranked twelfth among the world’s exporters of pulses, and it ranked seventh when using 2013 data.
Table 1 provides further details of today’s world-leading exporters of pulses. Average values were preferred to single years because of the volatility of trends that characterize the sector, and to present a more accurate picture.
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Table 1 : World-leading exporters of pulses, market share >=1 % ( US $ thousands )
Rank ExporterAverage
2012–2013CAGR
( 2004–2013 ) ( % )CAGR
( 2009 – 2013 ) ( % )
Share
Average 2008–2009 ( % )
Average 2012–2013 ( % )
World 9 237 100 14 11
1 Canada 2 288 784 17 9 30 25
2 China 1 011 932 13 5 13 11
3 Australia 970 553 16 18 6 11
4 United States 859 038 13 6 11 9
5 Myanmar 817 815 13 -4 14 9
6 Argentina 348 142 10 -4 4 4
7 India 273 967 15 46 1 3
8 Russian Federation 244 570 33 28 1 3
9 France 234 192 2 7 3 3
10 Mexico 233 949 9 4 2 3
11 Turkey 210 531 3 -6 4 2
12 Ethiopia 208 027 25 20 2 2
13 United Kingdom 147 047 5 6 2 2
14 Egypt 137 041 28 6 2 1
15 United Republic of Tanzania 93 489 19 10 1 1
16 United Arab Emirates 74 165 n.a. 20 1 1
17 Netherlands 73 943 5 12 1 1
18 Kyrgyzstan 61 007 26 25 0 1
19 Ukraine 55 191 6 -10 1 1
20 Nicaragua 48 295 10 -8 1 1
SAurAA : International Trade Centre ( 2015 ).
Figure 4 : Exports of pulses by region or regional group, 2004–2013 ( US $ thousands )
-
1.000.000
2.000.000
3.000.000
4.000.000
5.000.000
6.000.000
7.000.000
8.000.000
9.000.000
10.000.000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
World
Americas
Asia
Oceania
Europe
Africa
CIS*
GCC**
SAurAA : International Trade Centre ( 2015 ).
* The Commonwealth of Independent States ( CIS ) includes Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan,
the Republic of Moldova, the Russian Federation, Tajikistan, Turkmenistan, Uzbekistan and Ukraine.
** Gulf Cooperation Council ( GCC ) members include, Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.
[ GLOBAL TRENDS IN PULSES ]
23
As table 1 shows, Ethiopia and the United Republic of Tanzania are the only African countries growing at double digits in the top 20 world exporters of pulses. Nonetheless, as figure 4 demonstrates, Africa is lagging behind in the export of pulses, although it has arable land and more than 50 % of its population lives in rural areas and depends on agriculture.
Stakeholders aiming to develop the pulses sector in Africa may consider examining Ethiopia and the United Republic of Tanzania’s success stories and the factors impeding further development of the sector. Stakeholders across the region may also consider joining forces because low yields, low productivity and limited access to quality seeds are issues that most African countries must resolve. In addition, government policies and entrepreneurial prac-tices also dictate the destiny of the sector. Thus, cooperation across countries could provide the level playing field from which African countries could escalate their share in the in-ternational pulses market.
Although African countries have yet to make the cut among leading suppliers, the continent is attracting more investors in agriculture as production costs ( such as labour ) are rising in some Asian markets ( notably China ), emerging countries’ policies are shifting towards knowledge-based sectors, and the agricultural sector is seen by many as a profitable business at present and in the future. In fact, the sector could seize the opportunity provided by initiatives of reputed organizations with international reach, such as the World Economic Forum ( WEF ) New Vision for Agriculture.22
The WEF New Vision for Agriculture programme sup-ports multi-stakeholder partnerships in 11 countries across Africa, Asia and Latin America – including Kenya, Ethiopia and the United Republic of Tanzania. Similarly, in partner-ship with the African Union and the New Partnership for African Development, WEF began the Grow Africa partner-ship.23 This partnership connects producers and investors, and facilitates the use of best practices.24 Thus far, invest-ment commitments within the Grow Africa partnership have more than doubled to a total of US $ 7.2 billion, with most to be converted in the next three to five years.25 The 2014 Grow Africa annual report stated that in Ethiopia alone, there has been US $ 29 million in agricultural investments.26 Stakeholders may want to capitalize on the momentum of
22.– World Economic Forum ( 2015 ). New vision for agriculture. Available from https : / / www.weforum.org / projects / new-vision-agriculture.23.– For more on GrowAfrica see https : / / www.weforum.org / projects / grow-africa.24.– For more on GrowAfrica see https : / / www.weforum.org / projects / grow-africa. Best practices – a set of guidelines, ethics or ideas that represent the most efficient or prudent course of action – are often set forth by an authority, such as a governing body or management, depending on the circumstances. While best practices generally dictate the recommended course of action, some situations require that such practices be followed. Read more about best practices at https : / / www.investopedia.com / terms / b / best_practices.asp#ixzz3mjyzd4jN.25.– World Economic Forum ( 2014 ). Grow Africa Annual Report. Availa-ble from https : / / www.3.weforum.org / docs / IP / 2014 / GA / WEF_GrowAfrica_ AnnualReport2014.pdf.26.– Ibid.
such programmes by finding their position and proper strat-egy to increase production and add value to their produce.
TOP MARKETS FOR PULSES
From 2004 to 2012, the demand for pulses witnessed a steady, two-digit annual percentage change. In 2012 and 2013, increases were estimated at 7 % and 5 %, respectively.
India is by far the largest importer of pulses over the past decade,27 as it accounts for about 23 % to 25 % of world imports. Specifically, India’s imports increased from US $ 1,459,000,000 in 2008 to US $ 2,291,000,000 in 2013.28 The high demand for pulses is due to its vegetarian popula-tion, the increase of purchasing power across its poorest population, and unfavourable local weather conditions.29 This is clearly a county that is worth exploring further, be-cause it is one of the world’s most populated countries, its economy is booming, and a greater demand may be fore-seen in both the near and the long term.
Another country that has shown an impressive rise of demand for pulses during the past five years is China. Since 2010, China has been the world’s second-largest importer of pulses. Its CAGR between 2009 and 2013 was 50 %, and its share in world markets has risen from a 2 % average for the years 2008–2009 to a 6 % average for 2012–2013.30
Other countries that have also increased their demand and expanded their market share are, in descending order : Brazil, Algeria, Saudi Arabia, Canada, Indonesia, Sudan and South Sudan. It would be interesting to look further into these countries’ production, government policies ( including preferential access ) and factors driving growth.31
India is also a large exporter of pulses, ranking seventh in the world. This may be explained by the creation of vari-ous governmental incentives within the last five years that advance the sector. Brazil, Algeria, Saudi Arabia, Indonesia, Sudan and South Sudan are also net exporters of pulses.32
Table 2 provides information on importers of pulses whose international demand, on average for 2012–2013, was above US $ 100 million.
27.– Reddy, A.A., Bantilan, M.C.S. and Mohan, G. ( 2013 ). Pulses production scenario : policy and technological options. Policy Brief No. 26. Documen-tation. International Crops Research Institute for the Semi-Arid Tropics, Pa-tancheru, Andhra Pradesh, India. Available from http : / / oar.icrisat.org / 6812 / .28.– Shalendra, Dr ( 2012 ). Marketing of Pulses in India. Jaipur : CCS National Institute of Agricultural Marketing. Available from https : / / www.ccsniam.gov.in / research / 2013-research %20report %20on %20pulses.pdf.29.– Reddy, A.A., Bantilan, M.C.S. and Mohan, G. ( 2013 ). Pulses production scenario : policy and technological options. Policy Brief No. 26. Documen-tation. International Crops Research Institute for the Semi-Arid Tropics, Pa-tancheru, Andhra Pradesh, India. Available from http : / / oar.icrisat.org / 6812 / .30.– Ibid.31.– Food and Agriculture Organization of the United Nations ( 2012 ). FAO Sta-tistical Yearbook 2012 : part 3 : feeding the world. Available from https : / / www.fao.org / docrep / 018 / i3107e / i3107e03.pdf.32.– Shalendra, Dr ( 2012 ). Marketing of Pulses in India. Jaipur : CCS National Institute of Agricultural Marketing. Available from https : / / www.ccsniam.gov.in / research / 2013-research %20report %20on %20pulses.pdf ;
24
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Table 2 : World-leading importers of pulses, average for 2012–2013 >= US $ 100 million ( US $ thousands )
Rank ImporterAverage
2012–2013CAGR
( 2004–2013 ) ( % )CAGR
( 2009–2013 ) ( % )CAGR ( average 2008–
2009 to 2009–2013 ) ( % )
ShareAverage
2008–2009 ( % )Average
2012–2013 ( % )
World 9 869 341 13 9 18 100 100
1 India 2 281 740 19 3 14 25 23
2 China 631 915 41 50 105 2 6
3 United States 445 946 11 12 29 4 5
4 Egypt 430 648 12 12 22 4 4
5 Pakistan 343 360 14 2 23 3 3
6 Bangladesh 341 271 15 15 19 3 3
7 Brazil 318 162 28 38 36 2 3
8 Spain 302 787 0 11 20 3 3
9 Italy 278 124 6 10 12 3 3
10 Algeria 264 234 13 18 22 2 3
11 Mexico 258 431 13 -3 23 2 3
12 Turkey 238 098 37 6 -6 4 2
13 United Kingdom 229 088 10 1 0 3 2
14 United Arab Emirates 210 963 n.a. 6 -2 3 2
15 Japan 192 263 5 5 15 2 2
16 Venezuela 151 947 15 6 20 1 2
17 Sri Lanka 141 000 14 0 -5 2 1
18 France 120 422 7 6 4 2 1
19 Saudi Arabia 118 506 22 96 147 0 1
20 Canada 113 337 14 11 20 1 1
21 Colombia 108 403 8 8 21 1 1
22 Germany 105 168 9 10 15 1 1
23 Belgium 105 130 2 12 8 1 1
SAurAA : International Trade Centre ( 2015 ).
Trade data disaggregated by region illustrates the rising de-mand for pulses not only in Asia, but also in Africa and Gulf Cooperation Council ( GCC ) members.33 The CAGR for im-ports of pulses between 2009 and 2013 in the last two regions has been at double digits, at 10 % and 14 %, respectively.34
These three regions are particularly interesting for African countries due to their geographical proximity and their po-tentially stable demand. This demand may occur because pulses are used in traditional foods, the increased purchas-ing power of the poor, population growth and government policies encouraging production of pulse crops.
In 2012 and 2013, Ethiopia’s share in Asia’s imports hov-ered at 1.5 %, in Africa at 4.3 % and in GCC at 3 %. In 2013, Ethiopia’s share in Commonwealth of Independent States countries amounted to 14 %.35 Investors and buyers from
33.– GCC members include Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman.34.– International Trade Centre ( 2015 ). Trade Map Database. Available from https : / / www.trademap.org / Index.aspx. Accessed 19 August 2015.35.– The Commonwealth of Independent States are Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, the Republic of Moldova, the Russian Fed-eration, Tajikistan, Turkmenistan, Uzbekistan and Ukraine.
Asia, GCC and Africa are already partnering with countries in Africa in agriculture and agro-industry.36 However, the pulses sector is still underdeveloped in most African countries.37
To unlock the potential of the pulses sector, high-growth potential markets must be identified, understood and target-ed.38 This would allow the drafting of compelling investment projects that would probe project viability. In addition, these projects would also be aligned with Ethiopia’s national de-velopment objectives.
Regarding the specific case of expanding exports within and from Africa, it would be beneficial for African governments to find common ground on cooperation and the promotion of pulses, and build on their existing agreements. Such collabora-tion could unleash their competitive advantage – notably in terms of costs – and could promote the development of segments with higher added value, as well as diversifying end markets.
36.– World Trade Organization ( 2015 ). International Trade Statistics 2014. Availa-ble from https : / / www.wto.org / english / res_e / statis_e / its2014_e / its2014_e.pdf.37.– Ibid.38.– This means understanding of their needs and constraints, such as iden-tifying the seasons in which they face the greatest deficit, singling out distri-butional channels, and so on.
[ PULSES IN ETHIOPIA ]
25
PULSES IN ETHIOPIA
VALUE CHAIN ANALYSIS
A value chain describes the full range of activities necessary for moving a product or service from conception through the different phases of production, delivery to final con-sumers and final disposal after use.39 Value chains act as frameworks for understanding how a sector works, and for finding relevant issues and formulating proper solutions.40 Value chain analysis, therefore, is a proper mechanism to understand how Ethiopian pulse crop farmers may engage, improve the effectiveness and quality of their inputs and, ultimately, increase their exports.41
With over 90 million inhabitants, Ethiopia is the most populous landlocked country in the world, as well as the second most populated nation on the African continent.42 It occupies a total area of 1.1 million square kilometres and is the world’s twenty-seventh-largest country.43 Ethiopia is sub-Saharan Africa’s fifth biggest economy with promising signs of growth in the future.44 In 2013, agriculture accounted for 43 % of Ethiopia’s GDP and 51 % in 2007.45 The agricultural
39.– Kaplinsky, R. and Morris, M. ( 2001 ). A Handbook for Value Chain Re-search. Ottawa : Interna tional Development Research Centre. Available from https : / / www.value-chains.org / dyn / bds / docs / 395 / Handbook %20for %20Val-ue %20Chain %20Analysis.pdf.40.– Mitchell, J., Coles, C. and Keane, J. ( 2009 ). Upgrading Along Value Chains : Strategies for Poverty Reduction in Latin America. Overseas Develop-ment Institute. Available from https : / / www.odi.org / sites / odi.org.uk / files / odi-assets / publications-opinion-files / 5654.pdf ; United Nations Conference on Trade and Development ( 2013 ). Global Value Chains and Development : In-vestment and Value Added Trade in the Global Economy – A Preliminary Analy-AAA. UNCTAD / DIAE / 2013 / 1. Available from http : / / unctad.org / en / Publication-sLibrary / diae2013d1_en.pdf.41.– Mitchell, J., Coles, C. and Keane, J. ( 2009 ). Upgrading Along Value Chains : Strategies for Poverty Reduction in Latin America. Overseas Develop-ment Institute. Available from https : / / www.odi.org / sites / odi.org.uk / files / odi-assets / publications-opinion-files / 5654.pdf : Herr, M.L. ( 2007 ) Local Value Chain Development for Decent Work : An Operational Guide. Geneva : Interna-tional Labour Office. Available from https : / / www.ilo.org / wcmsp5 / groups / pub-lic / ---ed_emp / ---emp_ent / ---.ifp_seed / documents / instructionalmateri-al / wcms_115490.pdf.42.– International Federation of Freight Forwarders Associations ( 2015 ). FIATA Review, No. 108, July. Available from http : / / fiata.com / fileadmin / user_upload / documents / fiata_reviews / FIATA_Review_Nr._108_-_July_2015.pdf.43.– Ibid.44.– Ibid. ; Deloitte & Touche ( 2013 ). The “new” economies in Africa. Deloitte on Africa Collection, Issue 5.Available from https : / / www.2.deloitte.com / con-tent / dam / Deloitte / au / Documents / international-specialist / deloitte-au-aas-new-economies-africa-13.pdf.45.– International Federation of Freight Forwarders Associations ( 2015 ). FIATA Review, No. 108, July. Available from http : / / fiata.com / fileadmin / user_upload / documents / fiata_reviews / FIATA_Review_Nr._108_-_July_2015.pdf.
sector also generates over 70 % of export values and em-ploys 85 % of the population.46
The pulses sector is the second-largest component of Ethiopia’s agricultural sector and contributes immensely to the country’s economic growth, second only to cof-fee.47 According to recent export performance data for the 2013 / 14 fiscal year, the pulses, oilseeds and spices subsec-tor contributed US $ 920 million to Ethiopia’s export earnings with a share of over 28 %.48 Ethiopia produces more than 400,000 tons of chickpea annually and is the sixth-largest chickpea producer in the world.49
The strategy under development by all key stakeholders in Ethiopia’s Agricultural Transformation Agenda envisions the creation of an efficient and well-functioning value chain in the country’s pulses sector.50 To achieve this, all value chain actors must be well-integrated and unified.51 The pulse value chain, however, is lacking integration and unification. This value chain analysis, shown in figure 5, attempts to iden-tify the various impediments in order to develop possible solutions to help Ethiopia achieve its goal of having an ef-ficient and well-functioning value chain in the pulses sector.
As seen in figure 5, the value chain is divided into five broad stages : input, production, assembly, processing and markets. A characterization of each stage and general chal-lenges faced in each stage of the value chain are elaborated below.
46.– Ibid. ; Ethiopia, Agricultural Transformation Agency. Available from htt-ps : / / www.ata.gov.et / programmes / value-chains / pulses / .47.– United States Agency for International Development ( 2014 ). USAID works to strengthen Ethiopia’s pulses, oilseeds and spices sector, November 12. Available from https : / / www.usaid.gov / ethiopia / press-releases / usaid-works-strengthen-ethiopias-pulses-oilseeds-and-spices.48.– Precise Consult International ( 2014 ). Nation working to expand pulses, oil seeds market linkages, 13 November. Available from http : / / preciseethiopia.com / nation-working-to-expand-pulses-oilseeds-market-linkages / .49.– United States Agency for International Development ( 2014 ). USAID works to strengthen Ethiopia’s pulses, oilseeds and spices sector, November 12. Available from https : / / www.usaid.gov / ethiopia / press-releases / usaid-works-strengthen-ethiopias-pulses-oilseeds-and-spices ; Parkinson, N.J. ( 2015 ). Why Ethiopia just got its 1st industrial chickpea processor Now?, 26 August. Available from https : / / www.linkedin.com / pulse / ethiopia-get-its-first-industrial-chickpea-processor-parkinson.50.– Ethiopia, Agricultural Transformation Agency. Available from https : / / www.ata.gov.et / programmes / value-chains / pulses / 51.– International Food Policy Research Institute ( 2010 ). Pulses value chain in Ethiopia : constraints and opportunities for enhancing exports. Working Paper, July. Available from http : / / cdm15738.contentdm.oclc.org / utils / getfile / collec-tion / p15738coll2 / id / 8106 / filename / 8107.pdf.
26
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Figure 5 : Value chain of the pulses sector in Ethiopia
Rain Water
Unskilled Labor
(abundant)
Seeds (poor varieties)
Manure
Land
Farm Equipment (mechanization)
Chemical Fertilizers
(small proportion)
Pesticide and Insecticide (in small
proportion)
State Commercial Farms 1-2%
(Very few left)
Smallholder Producers 95%
(8 to 9 Million)
Cleaning
Sorting & grading
International Transporter
Regional Wholesalers
Farmers’ Unions
Local Retailers
Local Wholesalers
Processors
International Consumer 20%
National Consumer 50%
Assemblers
Brokers
Primary Cooperatives
Exporters (40 Adama)
Input Production Assembly Processing Markets
Marketing & labeling
National Component International Component
Packaging
Subsistence Needs 30%
• Urban supermarket
• National Local Consumer
Warehousing (Processors, ECX,
EGTE)
• India • China • Egypt • Pakistan • Bangladesh • UK • Italy • Spain • Algeria • Other
Biofertilizers
Farm Equipment
Private Commercial Farms 2.5%
(Very big)
ECX
EGTE
Quality control
Dehusting, splitting (local consumption)
Transformation
Inputs
Ethiopia is endowed with fertile soil and abundant water re-sources. It is no wonder that agriculture accounts for over 40 % of its GDP and that the pulses sector accounts for over 13 %. Major pulse crops include chickpeas, red kidney beans and white pea beans.52 Nonetheless, local pulse pro-duction is characterized as labour-intensive and low-input, and is rain-fed.53 Because of these inefficiencies, production is low. However, the potential for increasing production is tremendous. Productivity per hectare ( ha ) could be dou-bled simply with increased use of fertilizers, the use of better quality seeds, and the use of irrigation systems rather than
52.– Netherlands African Business Council and FME-CWM ( n.d. ). BuAAnAAA Opportunity Report : Oilseeds and Pulses. Available from https : / / www.nabc.nl / uploads / content / files / BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final( 1 ).pdf.53.– Ibid.
relying on rainwater, not to mention that only 20 % of total available agricultural land is used, mainly in the highlands.54
Ethiopia’s pulses sector value chain inputs are character-ized as land, rainwater, unskilled labour, seeds, biofertilizers, manure and farm equipment.
Rainwater
Ethiopia’s two extreme seasons are the summer or AArAmAA ( the rainy season between June and August ) and the win-ter or bega season ( the dry season between December and February ). It is during the three summer months that
54.– Leonard Berry and FAO, 2003 Land degradation in Ethiopia : Its extent and Impact. https : / / www.google.co.uk / url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cad=rja&uact=8&ved=0CCgQFjABahUKEwjE4bfQp9HIAhUDaxQKHQYJC0k&url=http %3A %2F %2Fwww.fao.org %2Fnr %2Fla-da %2Findex.php %3Foption %3Dcom_docman %26task %3Ddoc_down-load %26Itemid %3D165 %26gid %3D477 %26lang %3Den&usg=AFQjCNH61XzdNene954T2fTiR10EGLLnzA.
[ PULSES IN ETHIOPIA ]
27
most of the country receives at least 90 % of its total annual rainfall.55 The drought that results from the winter season is thought to be the environmental stressor of greatest con-cern in the highlands of Ethiopia.56 Autumn or belg, which takes place from September to November, is the harvest season.57 Meher season, the main planting season, which takes place from April to June. Finally, spring or tseday oc-curs from March to May and is the hottest season, with spo-radic showers.58
Smallholders, the backbone of the pulses sector, rely on rainwater for their crop irrigation. Because of the low reli-ability of rainwater for crop irrigation and the lack of drainage systems, it is not uncommon for full crop losses to occur in high rainfall areas.59
Unskilled labour
According to World Bank’s data, Ethiopia’s total labour force was measured at 45,145,776.60 Of these, 80 % to 85 % are employed in farming. Thus the availability of human labour is not the issue. Rather, it is the lack of best practices knowl-edge and resources that disable the potential and current human labour to reach their full potential. What is more, drought, lack of availability of productive land and the poor productivity of available land often lead these labourers to migrate into urban areas.61
Seeds
‘The Ethiopian Seed Enterprise ( ESE ) was established in 1979 as a fully Government-owned parastatal to undertake seed production, processing and distribution, while regula-tory functions were managed by the Ministry of Agriculture and Rural Development.’62 Pulse seed varieties include
55.– Wordpress.com ( 2011 ). The science of rainy season and the problem of drought in Ethiopia, 31 August. Available from https : / / threepotsofbuna.wordpress.com / 2011 / 08 / 31 / the-science-of-rainy-season-and-the-problem-of-drought-in-ethiopia / .56.– Morrissey, James ( 2008 ). Rural–urban migration in Ethiopia. Forced Migration Review, Issue 31, October. Available from https : / / www.fmreview.org / FMRpdfs / FMR31 / 28-29.pdf.57.– Wordpress.com ( 2011 ). The science of rainy season and the problem of drought in Ethiopia, 31 August. Available from https : / / threepotsofbuna.wordpress.com / 2011 / 08 / 31 / the-science-of-rainy-season-and-the-problem-of-drought-in-ethiopia / .58.– Ibid.59.– Netherlands African Business Council and FME-CWM ( n.d. ). BuAAnAAA Opportunity Report : Oilseeds and Pulses. Available from https : / / www.nabc.nl / uploads / content / files / BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final( 1 ).pdf.60.– Netherlands African Business Council and FME-CWM ( n.d. ). BuAAnAAA Opportunity Report : Oilseeds and Pulses. Available from https : / / www.nabc.nl / uploads / content / files / BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final( 1 ).pdf.61.– Morrissey, James ( 2008 ). Rural–urban migration in Ethiopia. Forced Mi-gration Review, Issue 31, October. Available from https : / / www.fmreview.org / FMRpdfs / FMR31 / 28-29.pdf.62.– Kassie, M. and other ( 2009 ). Current Situation and Future Outlooks of the Chickpea Sub-sector in Ethiopia. Nairobi : ICRISAT & EIAR. Available from https : / / www.icrisat.org / TropicalLegumesII / pdfs / Current_Situation.pdf.
horse beans, chickpeas, haricot beans, lentils, dry peas, vetches and mung beans.63
Biofer tilizer & manure
Ethiopian smallholder farmers’ typically apply two types of fertilizers : chemical fertilizers ( i.e., urea and diammonium phosphates ) and fertilizers from manure and crop residuals. The high-quality chemical fertilizers are imported from an in-ternational provider, which makes access to these products limited and costly. Thus, most smallholder farmers rely on manure-based fertilizers.64 Unfortunately, according to local farmers, the preparation of this type of fertilizer is also costly because it is labour intensive. As a result there is limited, or often lack of, fertilizer use.65
Land
Ethiopia has a total area of 112 million ha. Only 15 % of this is arable and only 1 % is currently cultivated.66 Pulses are grown throughout Ethiopia and account for roughly 13 % of cropped land area. However, production is concentrated in the Amhara and Oromia regions.67 Together, these areas account for 92 %of chickpea production, 85 % of faba bean production, 79 % of haricot bean and white pea bean pro-duction, and 79 % of field pea production.68
Farm equipment
Ethiopia’s agriculture is characterized by its low level of mechanization. Land preparation on smallholdings is typi-cally done with oxen. Tillage performed three times is rec-ommended to create a fine seedbed, but in practice labour and oxen are limited during the sowing season,69 leading to shortages.70
63.– Sutton, J. and Kellow, N. ( 2010 ). An Enterprise Map of Ethiopia. London : International Growth Centre. Available from http : / / personal.lse.ac.uk / sutton / Enterprise_Map_Ethiopia_Book.pdf.64.– Gebre-Selassie, A. and Bekele, T. ( 2012 ). A review of Ethiopian agricul-ture : roles, policy and small-scale farming systems. In Global Growing Case-book. Global Growing Campaign. Available from http : / / global-growing.org / sites / default / files / GGC _Ethiopia.pdf.65.– Ibid.66.– Netherlands African Business Council and FME-CWM ( n.d. ). BuAAnAAA Opportunity Report : Oilseeds and Pulses. Available from https : / / www.nabc.nl / uploads / content / files / BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final ( 1 ).pdf.67.– Netherlands African Business Council and FME-CWM ( n.d. ). BuAAnAAA Opportunity Report : Oilseeds and Pulses. Available from https : / / www.nabc.nl / uploads / content / files / BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final( 1 ).pdf68.– Ibid.69.– Gebre-Selassie, A. and Bekele, T. ( 2012 ). A review of Ethiopian agri-culture : roles, policy and small-scale farming systems. In Global Growing Casebook. Global Growing Campaign. Available from http : / / global-growing.org / sites / default / files / GGC _Ethiopia.pdf..70.– Ibid.
28
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Ethiopia’s major agricultural imports include agricultural machinery.71 However, the purchase and use of modern machinery such as tractors and combine harvesters is typi-cally limited to large-scale farms.72 This is because of the high cost and low availability of modern farming machinery for smallholder farmers.73
Production
The next step in the value chain is production. This is mostly undertaken by small and medium-scale farmers and, to a limited extent, by large-scale farmers ( i.e. private and state commercial farms ).74 Indeed, Ethiopian smallholders are the backbone of the agricultural sector. They produce approxi-mately 95 % of pulses and number 8 to 9 million farmers.75
Private commercial farms lag far behind, accounting for only 2.5 % of pulse production, and state commercial farms account for around 1 % of production. Recent policy changes are the cause of the near extinction of state com-mercial farms.
Assembly
The assembly stage of the value chain involves the process where the producers ( smallholders and commercial farms ) sell their product to the Ethiopian Grain Trade Enterprise ( EGTE ), assemblers, brokers, primary cooperatives, local re-tailers, local and regional wholesalers, farmers’ unions, and processors. One popular place to trade these commodities is the Ethiopian Commodity Exchange ( ECX ).
The ECX is a relatively new initiative for Ethiopia and the first of its kind in Africa. It is an organized marketplace where buyers and sellers come together to trade and are assured of quality, quantity, payment and delivery. ECX is jointly gov-erned by a private – public board of directors.76
The EGTE most typically purchases and exports white pea beans ( haricot beans ), chickpeas, horse beans ( faba
71.– Enterprise Canada Network ( 2015 ). Agricultural Technology and Equip-ment Sector Profile – Ethiopia. Available from https : / / www.enterprisecanad-anetwork.ca / _uploads / resources / Agricultural-Technology-and-Equipment-Sector-Profile-Ethiopia.pdf.72.– Netherlands African Business Council and FME-CWM ( n.d. ). BuAAnAAA Opportunity Report : Oilseeds and Pulses. Available from https : / / www.nabc.nl / uploads / content / files / BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final( 1 ).pdf73.– For a list of importers of Agricultural machinery and equipment in Ethiopia see : Enterprise Canada Network ( 2015 ). Agricultural Technology and Equip-ment Sector Profile – Ethiopia. Available from https : / / www.enterprisecanad-anetwork.ca / _uploads / resources / Agricultural-Technology-and-Equipment-Sector-Profile-Ethiopia.pdf.74.– Sutton, J. and Kellow, N. ( 2010 ). An Enterprise Map of Ethiopia. London : International Growth Centre. Available from http : / / personal.lse.ac.uk / sutton / Enterprise_Map_Ethiopia_Book.pdf.75.– Netherlands African Business Council and FME-CWM ( n.d. ). BuAAnAAA Opportunity Report : Oilseeds and Pulses. Available from https : / / www.nabc.nl / uploads / content / files / BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final ( 1 ).pdf76.– Ethiopia Commodity Exchange ( 2009 ). Website. Available from http : / / www.ecx.com.et / .
beans ), whole brown lentils, red kidney beans and green mung beans.77
Processing
After the assembly phase comes the processing phase. Processing not only adds value to pulses but also main-tains the quality, thereby increasing farmers’ confidence in their product.78 Processing is where the product is cleaned, sorted and graded ; goes through quality control ; is de-husked and split for local consumption ; is warehoused at ECX or EGTE ; packaged, marketed and labelled ; and / or transformed.
Cleaning
Most of the agricultural research centres and universities that are responsible for breeder seed, pre-basic or even ba-sic seed production, have seed cleaning facilities.79 Similarly, ESE, the Ethiopian Public Health Institute, Farmer-Based Seed Production and Marketing Schemes, and the Swedish International Development Cooperation Agency Seed Project have seed processing plants and / or cleaners.80
Sorting and grading
The Edget Seed Production and Marketing Union has 15 pri-mary seed production and marketing cooperative members that operate in three Silte zone woredas ( districts ) ( Silte, Lanfro and Sankura ) and three woredas in Gurage zone of the Southern Nations, Nationalities, and People’s Region ( SNNPR ) ( Sodo, Marako and Meskan ), with six and nine cooperatives, respectively.81 These 15 cooperatives united in 2009 to facilitate their access to cleaning, sorting, grading and warehousing services, and seed marketing.82
77.– Ethiopian Grain Trade Enterprise ( 2014 ). Export products. Available from https : / / www.egte-ethiopia.com / en / products.html ; for more informa-tion on each see Ethiopian Grain Trade Enterprise ( 2014 ). Pulses. Available from https : / / www.egte-ethiopia.com / en / 2014-04-06-10-45-01 / pulses.html.78.– Gebeyehu, G., Dabi, G. and Shaka, G. and Bishaw, Z. ( 2001 ). Focus on Seed Programs : The Ethiopian Seed. West Asia and North Africa ( WANA ) Seed Network Secretariat, International Center for Agricultural Research in the Dry Areas ( ICARDA ), Aleppo, Syria. Available from https : / / www.goog-le.co.uk / url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&ved=0CCcQFjABahUKEwixtoyR_ZnIAhUGjnIKHYW9Cm4&url=https %3A %2F %2Fapps.icarda.org %2FwsInternet %2FwsInternet.asmx %2FDownload-FileToLocal %3FfilePath %3DResearch_publications_archive %2FSeed_sys-tems %2FSeed_Focus %2FFOCUS-Ethiopia.pdf %26fileName %3DFOCUS-Ethiopia.pdf&usg=AFQjCNGC5680GVSkW8Ibw-fxLb_Jv28mxw.79.– Ibid.80.– Ibid.81.– Alemu, D. ( 2011 ). Farmer-based seed multiplication in the Ethiopian seed system : approaches, priorities and performance. Working Paper 036, Fu-ture Agricultures Consortium. Available from https : / / www.future-agricultures.org / search-documents / research-and-analysis / working-papers / 1554-farmer-based-seed-multiplication-in-the-ethiopian-seed-system-approaches-priori-ties-performance / file.82.– Ibid.
[ PULSES IN ETHIOPIA ]
29
Quality control
Quality is the major limiting factor for the export of pulses from Africa. The Asian market generally has quality pulses but the availability of these at the grass-roots level is not suf-ficient. The mechanism of quality certification and standardi-zation is not very common. Hence, the buyer finds it difficult to trust that the supplier understands the quality demanded and will supply the same. Also, each destination country has a different quality expectation. Hence, the supplier needs to understand the buyer’s requirements in terms of qual-ity and should have the necessary structure to supply the quality. Buyers in international markets prefer to buy from transnational companies rather than from exporters in Africa, because transnationals offer a better assurance of quality.
Dehusking
Dehusking or splitting for local consumption. Pulses are mainly consumed in the form of dehusked split pulses.83 Dehusking is a process that reduces the fibre content and improves the appearance, texture, cooking quality, palat-ability and digestibility of the pulse.84
Emery rollers are typically used to dehusk pulses. Roughly 50 % of pulses are dehusked in a single operation ( in one pass ). Dehusked pulses are then split into two parts and are separated by sieving.85 The whole process is re-peated two to three times.
In Ethiopia, however, dehusking is a much more labori-ous and time-consuming task completed without modern technology. Dehusking can be performed by the dry method or the wet method. Traditionally in African and Asian coun-tries, the dry method involves pounding of the dried grains in mortars with pestles or in hand-operated wooden or stone shellers.86 The wet grinding process for dehusking involves soaking of the grains before drying.87 The separated husks are removed from the cotyledons by winnowing. Winnowing is also typically done manually, which is time-consuming and laborious.88 Finally, the seeds are separated. This pro-cess is used to remove or separate whole grains from split,
83.– Tamil Nadu Agricultural University Agritech Portal ( 2015 ). Postharvest technology : agriculture : pulses. Available from https : / / www.agritech.tnau.ac.in / postharvest / pht_pulses.html.84.– M. Shafiur Rahman, ed. ( 2007 ). Handbook of Food Preservation. Boca Raton : CRC Press. Available from https : / / books.google.co.uk / books?id=sKgtq62GB_gC&pg=PA126&lpg=PA126&dq=dehusking +and+splitting+pulses+seeds&source=bl&ots=DGL9_JTEAV&sig =Mjyn2mK7AVIR-h8GWsirk2-4MVY&hl=en&sa=X&ved=0CCAQ6AEwAGoVChMIu9DDw9GtyAIVx4ssCh0xhw4N#v=onepage&q=dehusking %20and %20splitting %20pulses %20seeds&f=false.85.– Ibid.86.– Subuola, F., Widodo, Y. and Kehinde, T. ( 2012 ). Processing and utiliza-tion of legumes in the tropics. In Trends in Vital Food and Control Engineering, Prof. Ayman Amer Eissa, ed. InTech. Available from http : / / cdn.intechopen.com / pdfs / 35126.pdf.87.– Ibid.88.– Ibid.
broken and powdery ones. It is also typically done manually using sieves.89
Warehousing
Recommended storage techniques imply that pulses must be stored below 25 degrees Celsius and above the freezing point. Ethiopia is blessed with highlands where the tempera-ture is naturally within this range and, as a result, storage in these locations can naturally reduce postharvest losses.
Both bag-based storage through warehouses and bulk storage through silos and bins can be used. In Ethiopia, the most common method used is storing produce indoors in industrially produced sacks.90 This storage mechanism is not effective as insect and rodent infestations are common threats.91
Depending on the weather conditions in storage ar-eas, storage can happen in different ways : in permanent structured warehouses, in refrigerated warehouses or even in the open. In the warehouse-based storage system, pe-riodic checks and spraying of insecticides is important. If a silo system is used, then silos made from metal sheet or concrete can be used. Proper ventilation to reduce the temperature is required.
Efficient control of storage pests. The most common pest that damages the pulses crop is bruchids, or pulses beetles. There are various types depending on the area. The major sources are fields, carryover commodities, process-ing plants, re-used sacks or even transportation sources. To control this, a proper monitoring, identification and control mechanism is required. It will be important for the ware-house to carry out regular inspections to detect infestations or potential infestations for proper treatment. The inspection can be visual, by sampling and counting, Detection of latent infestation can be done through chemicals, X-rays, sound amplification and use of chemical attractants. Treatment can be done through physical methods or chemical treatments, or by exclusion and sanitation.
Transformation
Pulses often go through ‘transformation’ : secondary pro-cessing in order to transform the raw dehusked and split pulse into an edible product. Among the various second-ary processing methods are roasting, frying and canning. Roasting improves the taste and edibility of pulses and re-duces or eliminates anti-nutritional factors. This entails roast-ing the pulses on an open frying pan in the presence or absence of salts or ash.92
89.– Ibid.90.– Gebre-Selassie, A. and Bekele, T. ( 2012 ). A review of Ethiopian agri-culture : roles, policy and small-scale farming systems. In Global Growing Casebook. Global Growing Campaign. Available from http : / / global-growing.org / sites / default / files / GGC _Ethiopia.pdf.91.– Ibid.92.– Subuola, F., Widodo, Y. and Kehinde, T. ( 2012 ). Processing and utiliza-
Photo: (CC BY-SA 2.0) Swathi Sridharan, Chickpea seller in Addis Ababa, Ethiopia.jpg
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Frying improves the digestibility of pulses and reduces their anti-nutritional factors. For this, several pulses are wet milled and mixed with other ingredients in preparing different local or oriental dishes.93 CAnnAnA is a sophisticated technology of packaging cooked beans in cans. The packaged beans are usually in brine, sugar or tomato purees. This technology allows for year-round availability of the product and for food preservation. However, legumes processed in this form are expensive.94 Transformation of exported pulses in Ethiopia is rare because global demand is for unprocessed pulses.
Markets
The last step in the value chain is the exporting phase.95 The geographic position of Ethiopia provides a competitive
tion of legumes in the tropics. In Trends in Vital Food and Control Engineering, Prof. Ayman Amer Eissa, ed. InTech. Available from http : / / cdn.intechopen.com / pdfs / 35126.pdf.93.– Ibid.94.– Ibid.95.– All the pulses exporters of Ethiopia are listed here : Ethiopian Exporters Institute ( n.d. ). Exported Ethiopian Products. Available from https : / / www.
advantage for exports, mainly due to the relative proximity to major chickpea importing countries. Specifically, it has close proximity with the world’s leading four importers : India, Pakistan, Algeria and the United Arab Emirates ( UAE ).
Trade data demonstrate that in 2014, the biggest im-porter of Ethiopian pulses was Pakistan. In terms of vol-ume, Pakistan’s imports of pulses went up by 107,672 tons ( 41.02 % ) to 370,181 tons in July–January 2014–2015 from 262,509 tons in July–January 2013–2014.96 Pakistan depends on Australia, Myanmar, the United Republic of Tanzania and Ethiopia for its pulses imports to meet about 0.6 million tons of demand for the commodity every year.97 Pakistan is followed by Nicaragua, Sudan and Indonesia as importers of Ethiopian pulses. Appendix II provides further information regarding Ethiopia’s pulses exports.
ethiopianexporters.com / pulses.html.96.– Black Sea Grain ( 2015 ). Pakistan. Pulses import surges to $224.135 million, 26 February. Available from https : / / www.blackseagrain.net / novo-sti / pakistan-pulses-import-surges-to-224-135-million.97.– Ibid.
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31
STRATEGIC ISSUES AND COMPETITIVE CONSTRAINTS
Border IssuesBorder-In Issues
Border-Out IssuesDevelopment Issues
CapacityDevelopment
Cost ofDoing Business
Developinig skills
and Entrepreneurship
Capac
ity
Diversi
ficati
on
Infrastructure and
Regulatory Reform
Trad
eFa
cilita
tion
Market Accessand Policy Reform
National Promotion
and Branding Trad
e Su
ppor
t
Serv
ices
Poverty Alleviationand Gender Issues
Regional Development
and Integration
Envir
onm
enta
l
Sust
aina
bilit
y and
Clim
ate
Chan
ge
The traditional approach to strategic planning tends to focus exclusively on market entry issues such as market access, trade promotion and export development. This restrictive approach can lead to ignoring several important factors in a country’s export competitiveness. Effective tools for export strategic planning address a wide set of constraints, includ-ing any factor that limits the ability of firms to supply export goods and services, the overall quality of the business envi-ronment, and the development impact of the country’s trade, which is important to its sustainability.
The schematic above illustrates the four-gear integrated approach that has been followed to uncover the main com-petitiveness constraints of the pulses sector. The four gears encompass supply-side constraints, business environment constraints, market entry constraints and social and devel-opmental constraints.98
SUPPLY-SIDE ISSUES
Supply-side constraints affect the production capacity of the sector. These include challenges in areas such as the avail-ability of appropriate skills and necessary competencies, the capacity of the sector to diversify, and the technological content and value added in the sector’s products.
98.– This integrated approach is called the four-gear approach, whereby gear one deals with market entry issues, gear two with supply issues, gear three with the business environment, and gear four with developmental constraints. Overall competitiveness is affected by the four gears.
Limited farmer productivity ( low quantity of output and high cost of production ) stems from :
� Limited technical skills of farmers and specialists � Limited knowledge and application of best agronomic
practices � Weak extension services � Low capacity utilization on farms � Limited development of commercial farms � Limited development of collective farms � Lack of mechanization ( outdated machinery, unaware of
machinery on the market, unable to evaluate needs, lack of maintenance planning and budgeting, lack of financing )
� Lack of irrigation ( no financial means to irrigate, no aw-areness of what they should be doing )
� Limited use of appropriate agro-inputs including certified seeds, pesticides and fertilizers
� Low yields of local seed varieties � Limited use of crop rotation.
Value chain segment Production
Severity ● ● ● ● ●
Highlight
The sector is dominated by fragmented smallholder farms that lack economies of scale. The investment
required to boost production ( mechanization, irrigation, fertilization, pesticides ) may not pay off for such small
operations. Even so, current levels of production are just enough to satisfy local demand. Expanding exports will
require improvements in productivity.
PoA reference Operational objectives 1.1 and 1.2
Limited quality of pulses stems from : � Lack of price incentive ( premium ) for quality � Limited access to quality seeds � Lack of appropriate storage facilities � Heavy handling by numerous intermediaries � Poor agronomic and postharvest handling practices � Weak capacities of processors � Low awareness of international standards, including vol-
untary standards � Limited awareness of the benefits of adhering to foreign
standards � Reliance on outdated machinery during all segments of
the value chain � Limited farmer skills � Limited use of appropriate inputs � Fragmented farming system ( which makes it difficult for
farmers to access knowledge and extension services, and results in lack of uniformity )
� Poor waste disposal mechanisms � Lack of guidelines on quality standards and quality con-
trol mechanisms.
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
Quality management is neglected due to limited knowledge among farmers and management of
processing companies. Stakeholders lack knowledge of both modern practices and market requirements.
PoA reference Operational objective 1.3
Limited use of quality inputs stems from : � An inefficient supply chain � The rural dispersion of fragmented stallholder farmers � Limited access to finance � Weak extension services � Limited knowledge of best practices and their benefits � Weak research and development capacities to produce
improved inputs � Limited availability of improved seed varieties � Adulteration / mixture of seed varieties on delivery ( both
intentional and unintentional ).
Value chain segment Inputs
Severity ● ● ● ● ●
HighlightMost pulses in Ethiopia are grown from the seeds
local farmers retain from their produce.1 This leads to decreased crop quality due to low genetic potential.2
PoA reference Activities 1.1.4, 1.3.2 and 1.3.6
Limited alignment of goods with international demand stems from :
� Lack of business skills among farmers, assemblers, co-operatives and exporters
� The presence of middlemen that put space between pro-ducers and final buyers
� Limited trade intelligence and poor awareness about cus-tomer requirements
� Limited exposure to export markets � Poorly developed market research departments at small
and medium-sized enterprises and support institutions.
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
Most farmers, cooperatives and assemblers do not have a market-driven approach to their customers.
Instead, farmers are production driven, looking to supply assemblers with their pulses regardless of market trends
and requirements.
PoA reference Activities 1.3.2, 1.3.3, 2.1.4 and 2.2.7
Limited value addition stems from reliance on outdated ma-chinery, limited use of trade intelligence, and poor sourcing practices.
Value chain segment Inputs, processing
Severity ● ● ● ● ●
Highlight
The combination of obsolete equipment and poor knowledge of agronomic practices diminishes
productivity and hinders value addition. The limited value addition reduces competitiveness in international
markets.
PoA reference Activity 1.3.6
Postharvest losses and quality degradation stem from : � Lack of adequate warehouse space, both domestically
and in destination countries � Poor warehouse management skills � Improper storage practices that lead to infestation � Poor ventilation, moisture, sunlight exposure and tem-
perature management � Inadequate sanitation of premises.
Value chain segment Processing
Severity ● ● ● ● ●
Highlight
Recommended storage techniques imply that pulses must be stored below 25 degree Celsius and above
freezing point. Ethiopia is blessed with highlands where the temperature is naturally within this range and, as a result, storage in these locations can naturally reduce
postharvest losses.
PoA reference Activity 1.3.5
Limited capacities for sector coordination stem from : � The long supply channel � Smallholder farmers dispersed over large distances � Many middlemen in the value chain � Weak domestic and international market linkages � The prevalence of short-term business relationships � Limited information sharing � Limited use of information and communications technol-
ogy tools � Weak institutional strength � Lack of a platform for dialogue between stakeholders � Limited value chain integration.
Value chain segment All segments
Severity ● ● ● ● ●
HighlightStakeholders lack the necessary trust among themselves
to be able to find ways to work together for the betterment of the sector.
PoA reference Operational objective 2.1
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33
BUSINESS ENVIRONMENT CONSTRAINTSBusiness environment constraints influence transaction costs, such as regulatory environment, administrative proce-dures and documentation, infrastructure bottlenecks, certifi-cation costs, Internet access and cost of support services.
Weak institutional capacities stem from limited expertise in areas such as policy advocacy, market intelligence, trade promotion, and quality management among other issues ; and inadequate financial resources.
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
Institutions are unable to effectively coordinate sector participants. This lack of coordination is a key roadblock
to sectoral development, as it would allow for group bargaining and the consolidation of orders to flexibly
meet larger orders.
PoA reference Operational objective 2.1
Weak quality management infrastructure is a result of the lack of international accreditation of the Ethiopian National Accreditation Office ( ENAO ) ; lack of laboratory capacities to perform relevant tests ; lack of third-party consulting services related to quality and certification issues ; and the lack of an institution for food safety dealing with aflotoxins.
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
ENAO is responsible for accrediting all conformity assessment bodies in Ethiopia. Nevertheless, its
accreditation is only valid at the national level, as it is not yet recognized by International Laboratory Accreditation Cooperation and the International Accreditation Forum.
The test results of Ethiopian conformity assessment bodies, such as laboratories, are therefore not
recognized internationally. This means that even where enterprises are able to produce goods of adequate
quality, they are unable to prove compliance without resorting to expensive foreign testing.
PoA reference Activity 1.3.1
Expensive and inaccessible financial services stem from : � Lack of skills at financial institutions for loan and risk anal-
ysis and generally weak capacities at banks � Shortage of foreign exchange � Limited credit registry and bureau coverage � Low depth of credit information � Inadequate financial / legal framework � Stringent collateral requirements � Frequent delays in processing financial transactions � Lack of online banking � Single borrower limit ( no entity can borrow more than
US $ 22 million ).
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
Basic services such as letters of credit are expensive ( 3 % for import letters of credit and 2 % for export letters of credit as opposed to 1 % in China ), and the National
Bank charges a 1.5 % foreign exchange commission for the dollars required to purchase inputs. As such,
manufacturers looking to import materials must pay a total of 4.5 %.
PoA reference Activities 1.1.4 and 2.2.1
Poor contract enforcement stems from the lack of arbitra-tion mechanisms ; conflicts between exporters and import-ers for price and quality defaults ; inadequately developed futures contracts ; and an inadequately developed legal framework for contract farming.
Value chain segment All segments
Severity ● ● ● ● ●
HighlightIt is not unusual for exporters to default on international
buyers and vice versa.
PoA reference Activities 2.1.5 and 2.1.6
Expensive and unreliable transportation network stems from : � Ethiopia’s status as a landlocked country � High port handling fees in Djibouti � Poor road and rail infrastructure, particularly in rural areas � Limited transportation services in rural areas � An inadequate number of trucks � Lack of competition in the trucking industry � Limited quality of vehicles � Lack of financing for road construction and maintenance.
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
Transportation costs are so high that, under the right conditions, they can almost nullify Ethiopia’s other
competitive advantages ; it costs 60 % more to ship through Djibouti to the United States of America and the
EU than it does to ship from China. The Government is building a new railway to Djibouti which is expected to
reduce transport costs by 25 %. In addition, a new road and rail corridor is being built in conjunction with Kenya.
PoA reference Activity 2.2.3
The inefficient and unreliable Customs system stems from : � Weak information technology infrastructure � Inadequately trained Customs agents, particularly regarding
their knowledge of international standards for commodities � Burdensome document requirements � Limited opportunities for interaction between firms and
Customs agents � Lack of a fast-track system for reputable importers /ex-
porters � Lack of updated prices at Customs posts.
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Value chain segment Inputs, distribution
Severity ● ● ● ● ●
Highlight
According to the World Bank’s Doing Business Report 2015, it takes 44 days to export or import from Ethiopia, significantly longer than the 30.5 and 37.6 days it takes
to export and import respectively from the average sub-Saharan country.
PoA reference Activity 2.2.6
Weak communications infrastructure stems from the lack of competition in the telecom space, and low fixed line penetration.
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
Although mobile communications and high speed Internet are not available in all areas of the country ( and
can be unreliable outside of major urban areas ), the Government is committed to investing heavily in the information and communications technology sector.
Improvements would help improve price dissemination and logistical services, and increase value chain
cooperation.
PoA reference Activity 2.1.2
MARKET ENTRY CONSTRAINTS
Market entry constraints are external to the country but manifested internally. These include issues related to market access, development and diversification, as well as export promotion.
Limited access to and use of trade intelligence stems from :
� The multilayer value chain dominated by middlemen ( these do not serve as information conduits and simply put space between producers and final markets )
� Limited availability of information and advisory services � The high cost of data from the private sector � Limited availability of relevant public services � Weak extension services � Limited skills at small and medium-sized enterprises, as-
sociations and institutions in analysis and use of trade intelligence.
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
Ethiopia enjoys preferential market access to the United States under the African Growth and Opportunity Act
( AGOA ), to the EU under the Everything But Arms initiative, and to the Common Market for Eastern and
Southern Africa ( COMESA ) by virtue of its membership. As a result, many pulses can enter duty-free to some of the most important regional and international markets.
Even so, stakeholders have thus far been unable to fully benefit from these market access opportunities. The key constraint on export expansion is limited understanding
of the opportunities offered by these markets and the requirements of entry.
PoA reference Activities 2.1.2, 2.2.4 and 2.2.5
Limited branding and sales capacities due to : � The absence of a coherent ‘voice’ for the sector � Limited attention from the Government / absence of strategy � Poor market information and limited knowledge of export
markets and their requirements � Poor product quality that has damaged the sector’s repu-
tation � Weak product presentation � Limited marketing and sales skills � High marketing costs.
Value chain segment Marketing and distribution
Severity ● ● ● ● ●
Highlight
Europeans perceive Ethiopia to be food insecure, leading to a lack of confidence from international buyers. This image is further hindered by high rates of default and
the inconsistent quality of pulses coming from Ethiopia. As long as these negative perceptions persist, they will
continue to present roadblocks to market expansion and investment promotion.
PoA reference Activities 2.1.1, 2.1.2 and 2.2.4
Inadequate trade promotion capacities stem from : � Limited skills of small and medium-sized enterprises in
marketing, promotion and strategy development � Insufficiently prepared managers � Inadequate university curricula � Limited exposure to foreign markets � Lack of trade intelligence � Absence of in-market support from institutions and
Government � Weak financial and technical capacities at institutions � Lack of support from embassies and trade attachés.
Value chain segment Distribution
Severity ● ● ● ● ●
HighlightThe recently formed Ethiopian Export Promotion Agency
also lacks adequate capacities, and it engages in limited and unstructured participation in trade fairs.
PoA reference Activities 2.2.4 and 2.2.5
Photo: (CC BY-SA 2.0) Rod Waddington (CC BY-SA 2.0), SAAAAnA PAAAAAAA
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35
Limited foreign direct investment ( FDI ) promotion stems from lack of skills in relevant agencies to identify, approach and engage with potential investors ; and limited coordina-tion among actors.
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
In addition to the federal Government’s investment commission, each region has its own investment
promotion agency. As such, there is little coordination among agencies.
PoA reference Activity 2.2.2
Limited incentives to export stem from an imbalance be-tween domestic costs and international prices. During some months of the year the domestic price of pulses is higher than the international one.
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
Domestic prices for most pulses have risen at a faster pace than international prices. This largely reduces
the incentives to export during the periods of the year when these episodes take place. When transportation is included, production costs are such that producers may
actually suffer a loss if they sell their goods abroad.
PoA reference Operational objective 1.2
The sector’s strategic development is hindered by the lack of a strategy and Government support ; the prevalence of short-term export relationships ; short-term thinking ; lack of coordination within the sector ; and lack of a customer-oriented mentality.
Value chain segment All segments
Severity ● ● ● ● ●
Highlight
Less than 50 % of export relationships survive the first year, significantly worse than the roughly 70 % one-year
survival rate of its competitors. This is the result of a variety of factors, and while the prevalence of short-term relationships is a result of underlying challenges, it also
represents a challenge in and of itself : more stable relationships would lead to longer-term thinking and a shift towards a strategic development mentality. In
addition, stronger partnerships with buyers can serve to facilitate a customer-oriented mentality.
PoA reference Activity 2.2.7
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
SOCIOECONOMIC AND DEVELOPMENTAL CONSTRAINTSSocioeconomic constraints include issues related to pov-erty reduction, gender equity, youth development, environ-mental sustainability and regional integration.
Gender-specific challenges stem from : � Women’s limited access to productive resources ( credit,
markets, market information ) � Restrictive social norms � Inadequate implementation of equality laws � Limited mobility ( the opportunity cost of leaving children
to tend land and access markets ) � Limited land tenure rights.
Value chain segment Production
Severity ● ● ● ● ●
Highlight
‘Social norms restrict women from tiling land and female-headed households are forced to enter into
share-cropping arrangements, asking male relatives to till the land for them, in return for sharing half of the crops
produced on their small plot’.*
PoA reference Operational objective 3.1
* Global Water Initiative (2013). Valuing women in rural agriculture, 24 September. Available from http://www.gwieastafrica.org/valuing-woment-in-rural-agrticulture/; Ethiopian Institute of Agricultural Research. Available from http://www.eiar.gov.et/16-featured-articles/ 185-enhancing-women-s-engagement-in-chickpea-production.
Limited entrance of youth into the pulses sector stems from lack of access to agricultural land and other resources ( capital, skills and inputs ) ; migration from rural to urban areas ; and limited interest in pursuing farming and other agricultural activities.
Value chain segment Production
Severity ● ● ● ● ●
Highlight
The majority of the youth in Ethiopia live in rural areas where farming has traditionally been the main
source of livelihood.* However, the participation of youth in the pulses sector is very low. They generally lack representation and leadership roles in farmers’
organizations. Only 9 % of the rural youth in the south of Ethiopia plan to pursue agriculture as their livelihood.**
PoA reference Operational objective 3.1
* Bezu, Sosina and Holden, Stein, (2014), Are rural youth in Ethiopia abandoning agriculture? World Development, Volume 64, December, pp. 259–272. Available from http://www.sciencedirect.com/science/article/pii/S0305750X14001727.
** Ibid.
Potential for environmental harm stems from :i. Land degradation :
– Deforestation ( estimated at 62,000-150,000 ha per year ) – Overgrazing
– Population growth – Inappropriate land policy – Limited application of best agronomic practices,
including crop rotation that would aid soil fertility management in the cereal belts
– Poor rural infrastructure – Low levels of technology – Poor waste disposal mechanisms and an inappropri-
ate reject product / grain management system.2. Water pollution :
– Limited awareness of the benefits that might come from more sustainable processes
– Limited application of best agronomic practices.3. Large-scale farming :
– Lack of appropriate environmental impact assess-ments
– Land in national parks has been turned over to farm-ing operations.
Value chain segment Production
Severity ● ● ● ● ●
Highlight
Corporate social responsibility is becoming a core requirement for many of the world’s most important
buyers. Should these buyers believe that a part of the pulses value chain regularly benefits from environmentally unfriendly practices, the sector’s growth potential may be
imperilled as buyers look for more socially responsible suppliers.
PoA reference Operational objective 3.2
Potential violations of indigenous rights stem from an ex-pansion of farming in fertile agricultural lands traditionally oc-cupied by indigenous peoples ; lack of proper consultations with indigenous peoples and reports of forced evictions ; and lack of proper environmental impact assessments.
Value chain segment Production
Severity ● ● ● ● ●
Highlight
The SNNPR is home to 26.3 % of pulse farmers. This region includes the Lower Valley of the Omo, the home of many of Ethiopia’s indigenous people and a United
Nations Educational, Scientific and Cultural Organization world heritage site. As such, every effort should be made
to ensure that impacts to its ecosystems and cultural landscape are adequately assessed and considered
before the implementation of large-scale projects.
PoA reference Operational objective 3.1
Thus, as explained in detail above, the four gear diagnostic shows that there are seven pressing supply-side constraints, seven business environment constraints, six market entry constraints, and four socioeconomic and development con-straints that are holding Ethiopia back from becoming a global competitor in the pulses sector. What follows is a brief descrip-tion of the format and context in which the competitive con-straint issues will be addressed and resolved in this roadmap.
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STRATEGIC IMPLICATIONS FOR THE VALUE CHAIN ROADMAP
To sum up, the previous sections and related appendices have identified a series of issues in the Ethiopian pulses sector.99 Given the scope of this strategic roadmap, not all the issues identified so far in the document are going to be addressed in the same manner by the PoA. All of the is-sues identified can, however, be qualified under at least one of the three overarching types of issues that fall within the scope of this roadmap. This section provides a description of the three types of issues, i.e. production issues, inter-mediation issues and developmental issues. Then it briefly addresses the sub-issues that lie within each of these types.
Production issues
Production issues encompass three overarching prob-lems causing the low productivity in Ethiopia’s pulse sec-tor. Specifically, ( 1 ) the high cost of local pulse production, ( 2 ) low crop yields and ( 3 ) the low quality of pulse yields. Together, the combination of these three issues causes the sector’s low productivity.
The main production issues can be summarized as follows. � High cost of production. The following four sub-issues
are the main causes of the high cost of local production. – Small average farm size. Smallholders encompass
95 % of Ethiopian pulse production. This leads to a number of issues including production fragmentation. The PoA addresses this in section 1.1.1.
– Limited affordability and availability of necessary seeds. This is an issue most African countries face, including Ethiopia. The PoA addresses this in sections 1.1.2 and 1.1.3.
– Excessive cost of finance. In summary, this is due to the lack of financial systems that cater to the agricul-tural sector. The PoA addresses this in section 1.1.4.
– Poor production mechanization and postharvest techniques. There is a lack of adequate warehouse space ( i.e. with proper ventilation, moisture, sunlight, temperature, sanitation ) and storage practices ( i.e. management, pesticide use ). This is addressed in section 1.1.5 of the PoA.
� Low smallholder production output. – Limited pesticide use. This issue is because of the
lack of availability and affordability of quality pesti-cides, and farmers’ lack of best practices knowledge. The PoA addresses this in section 1.2.1.
99.– The current value chain, strategic issues and competitive advantages, appendix I : Ethiopia’s production of pulses, appendix II : Ethiopia’s exports of pulses, and appendix III : Policy environment and trade agreements.
– Limited fertilizer use. This issue is due to the lack of availability and affordability of quality fertilizers. It is also due to farmers’ lack of best practices knowledge. The PoA addresses this in section 1.2.6.
– Lack of crop rotation. In short, this issue is due to the lack of best practices knowledge. The PoA addresses this in sections 1.2.2 and 1.2.3.
– Low-yielding seeds. This is due largely to the lack of quality seeds and limited seed variety available to farmers. This is addressed in section 1.2.4 of the PoA.
– Lack of mechanization. This is due to the lack of knowledge about, and limited availability and afford-ability of, modern machinery. The PoA addresses this in section 1.2.5.
� Low pulse quality. This refers particularly to the lack of uniformity in the colour, size and weight of the pulses. The quality of the pulses is low and suffers from issues related to the production and distribution stages of the value chain.
– Lack of a quality diagnostic. There is often a lack of uniformity in bean size, quality and weight due to the lack of quality standards and control mechanisms. The PoA addresses this in section 1.3.1.
– Low seed quality. There is low awareness of interna-tional standards regarding pulse quality and a lack of access to quality seeds. The latter is due in large part to poorly developed seed systems. This issue is addressed in section 1.3.2 of the PoA.
– Absence of quality incentives, e.g. quality-linked pricing. This is due to the limited attention by traders to pay a premium price for high-quality products. The PoA addresses this in section 1.3.3.
– Lack of technical skills. Quality management is neglected due to limited knowledge among farmers of both modern practices and market requirements. The fragmented farming system makes it difficult for farmers to access knowledge and extension services that would improve such techniques. This issue is ad-dressed in section 1.3.4 of the PoA.
– Poor postharvest techniques. This limits the quality at the production stage and is due to the lack of stor-age facilities and poor agronomic and postharvest handling practices. The PoA addresses this in section 1.3.5.
– Unskilled labour and outdated machinery. Local farmers’ low skill levels, together with outdated ma-chinery, limit value addition and diminish the profit-ability of the sector. These factors are largely due to the lack of technology that enables the development of value added products. The PoA addresses this in section 1.3.6.
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The combined effect of the production issues is that the pulses sector struggles to produce what the market demands. The current growth model of the pulses sector shows important signs of exhaustion. Ethiopia’s pulses sec-tor has yet to realize its full potential, as sales are heavily concentrated among a few product categories of fairly low value addition and market diversification is limited. Despite the increase in FDI and governmental support in recent years, all five stages of the value chain remain underdevel-oped. Productivity meanwhile continues to suffer as a result of limited skills in the workforce, weak management capaci-ties and reliance on old equipment, among other factors. In addition, remaining problems in the business environment create unnecessary cost burdens and delays.
Intermediation issues
Intermediation issues refer to the sector’s poor internal or-ganization, its competitiveness in existing markets, and the sector’s ability to enter new markets.
� Poor internal organization. This refers to the capacity of the sector to undertake initiatives in its favour and to ensure the effective flow of information along the value chain.
– Lack of institutional organization and sector repre-sentation. This is due to the large number of unorgan-ized smallholder farmers. This is addressed in section 2.1.1 of the PoA.
– Lack of necessary information. This is due to lack of an effective forum for information sharing and gather-ing. This is addressed in sections 2.1.2 & 2.1.3 of the PoA.
– Agents’ misaligned price expectations. This is largely due to the lack of business orientation among farmers. The PoA addresses this in section 2.1.4.
– Excessive quantity of mediators and brokers in value chain. This is due to the overload of intermedi-aries in the value chain, which results in a decrease in product quality. The PoA addresses this in section 2.1.5.
– Limited and flawed use of contracts. Smallholders’ limited and flawed use of contracts is due, in large part, to the lack of contract enforceability. In turn, this diminishes the effectiveness of legally binding agreements and often leads to market defaults. This is addressed in section 2.1.6 of the PoA.
� Limited competitiveness in existing markets and inabil-ity to enter new markets. This refers to the capacity of the sector to ensure its profitability in domestic and inter-national markets.
– Inadequate financial support for international trade. This results in difficulty in remaining in existing mar-kets and entering new ones. The PoA addresses this in section 2.2.1.
– Underinvestment. There is a serious problem with underinvestment, especially among Indian suppliers. This can be explained by the absence of good pro-cessing companies, which impedes the sector’s abil-ity to exploit these opportunities. This is addressed in section 2.2.2 of the PoA ;
– Costly transportation and logistics. The cost of transportation and logistics is high and there is a lack of storage for international trade. This is addressed in section 2.2.3 of the PoA ;
– Inadequate sources of market intelligence. This is due to the lack of competency of trade and invest-ment support institutions. The PoA addresses this in section 2.2.4.
– Weak trade promotion. This is partially due to limited participation in trade fairs. This is addressed in sec-tions 2.2.5 and 2.2.6 of the PoA.
– Overall lack of adequate business skills. This is ad-dressed in section 2.2.7 of the PoA.
The combined effect of these intermediation issues is a poor flow of information along the value chain. Exporters are not capable of sending the correct signals to farmers. This information refers to pricing, volumes, characteristics, etc. Concurrently, local farmers are incapable of interpreting market signals. Together, these issues cause the market and the production sides of the value chain to be dissociated.
Developmental issues
Developmental issues include those that impede the sec-tor from maximizing its socioeconomic impact through the protection of the environment and inclusiveness of women and youth.
� Unskilled labour, particularly among women and youth. The participation of women and youth in the pulses sec-tor is relatively low as a result of land access restrictions as well as constraining social norms.
– Land access restrictions. The lack of access to ag-ricultural land limits the involvement of women and youth. Specifically, this results in the discouragement of youth from farming pulses and prevents the emer-gence of a new generation of entrepreneurs. This is addressed in sections 3.1.1, 3.1.2 and 3.1.3 of the PoA.
– Social norms. Social restrictions limit women’s and youth’s access to arable land. This is addressed in section 3.1.4 of the PoA.
� Risks of environmental harm. There is a risk that the development of the pulses sector could cause environ-mental harm.
– Low crop rotation awareness. There is low aware-ness of optimizing rotational cropping of pulses for soil fertility management in the cereal belts. This is addressed in sections 3.2.1 and 3.2.3 of the PoA.
Photo: (CC BY-SA 2.0) Swathi Sridharan, MArAAA An AddAA AbAbAAAAA
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– Poor disposal and management. Poor waste dis-posal mechanisms and inappropriate product / grain management systems. This is addressed in section 3.2.3 of the PoA.
The combined effect of the developmental issues is that the long-term sustainability of the sector could be af-fected. As shown in the four gears analysis, the sec-tor’s sustainable development will require a set of integrated actions that holistically address challenges across the entire value chain. These challenges are not limited simply to farms’ capacities or government policy. Many challenges are the result of a combination of factors that require wide-ranging poli-cies. It is for this reason that a comprehensive roadmap becomes all the more nec-essary : individual stake-holders, and even small groups of stakeholders, will not be able to ad-equately deal with the constraints on their own. It is only through strategic cooperation that the most effec-tive results will be achieved.
The identification and acceptance of these issues allows for the roadmap’s proposed solutions to tackle them in a strate-gic and effective manner. It is critical that, moving forward, public and private stakeholders work together and build on past successes. In addition, the Government must remove the remaining policy and business environment road-blocks to competitiveness. What is more, because a continued increase of FDI is critical for the sector’s development, the Government ought to more effectively tar-get foreign investors and help modernize the pulses value chain by allowing local farmers greater access to machinery and skill development workshops. These efforts will prove fruitful, as they will result in improved agricultural technology, the generation of income, increased quality of inputs and outputs, and the overall competitiveness of the pulses sector.
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THE WAY FORWARD
Figure 6 : Key determinants for a vision for the pulses sector
After several consultations ( i.e. public and private dialogue meetings ) it was evident that there were four overarching goals that were important to all sector stakeholders. This is shown in figure 6. These include : ( 1 ) improvement of agri-cultural technology, ( 2 ) increase the generation of local in-come, ( 3 ) increase the quality of inputs and outputs, and ( 4 ) increase the overall competitiveness of the pulses sector.
The stakeholders’ vision is to build an internationally com-petitive sector that supports Ethiopia’s development. This will be done through the adoption of innovative agricultural technology and the use of quality inputs, which will lead to the production and global sale of high-quality pulses and the increase of local income. This, in turn, will result in the movement of the pulses sector in Ethiopia’s GDP from num-ber two to number one.
The realization of the stakeholders’ vision will not be an easy task. However, following the roadmap’s suggestions in an organized and united manner will ensure that Ethiopia’s pulses sector becomes internationally competitive and sup-ports Ethiopia’s development.
The following section explains the strategic and operational objectives for the sector. This will act as the framework that will guide the implementation of the roadmap. It will focus on three main objectives : ( 1 ) boosting productivity and quality through incentives ; ( 2 ) improving export competitiveness by strengthening the connection between intermediaries and producers in the value chain ; and ( 3 ) maximizing the developmental dividend of the sector through environmental protection and inclusiveness.
THE STRATEGIC OBJECTIVES
The realization of the vision for the sector will be achieved through three strategic objectives that will take place over a period of five years. Each strategic objective provides a major area that the roadmap will address in greater detail. Each of the strategic objectives is further broken down into two or three operational objectives.
The PoA is organized around the three strategic objectives and the corresponding operational objectives. The three strategic objectives are : ( 1 ) boost productivity and quality ; ( 2 ) improve intermediation ; and ( 3 ) maximize the devel-opmental dividend.
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Strategic objective 1 : Boost productivity and quality by using public and market-led incentives.
This strategic objective aims to bring the current pulse sup-ply to the level required by international markets. Because of this, only the supply side of the pulses sector is dealt with. The supply side includes : operating costs of pulse production, total sector output, pulse quality and sector productivity.
A description of the operational objectives follows.
Lower the average cost of producing pulses.To achieve this, a group of purpose-designed activities will be undertaken. First, incentives that help increase the aver-age size of pulse farms must be created. This is necessary because large-scale farms operate under lower average cost structures. Second, it is necessary to facilitate com-mercial farms and smallholder farmers’ access to sufficient amounts of affordable seeds and establish a seed bank that guarantees farmers’ access to seeds when needed. These two initiatives are necessary because seed-related issues are very prominent in the cost. Third, smallholder farmers’ access to finance must be facilitated. This is likely to reduce the cost of inputs and other production services. Finally, existing technical solutions that can sustainably lower pro-duction costs should be exploited. Access to finance issues related to international trade will be addressed in the second strategic objective.
Expand the production of pulses.For this, a two-pillar approach is proposed. This is based on the use of modern agricultural practices and better in-puts. The use of crop rotation should increase total pulse production without increasing the amount of land used.100 Improving the availability and use of quality inputs such as biofertilizers, pesticides and modern mechanization should increase the sector’s output. The use of new high-yielding pulse seed varieties should also raise yields.
Extending seed supply will also likely increase pulse pro-duction. This will require identifying and developing varieties of pulses that are suitable for each region and that are in line with international market requirements. In addition, a plan to make these publicly available must be created. This could include piloting farm initiatives for production and harvest-ing. Farmers’ associations and private sector stakeholders should be involved in the distribution of the improved seeds.
100.– A nationwide crop rotation plan can only be completed after an agro-nomic assessment of the land has taken place, and the potential for differ-ent types of pulses has been assessed. Logistical considerations, storage infrastructure, market structure and trading practices will also be taken into consideration in order to obtain a clear picture of the pulses industry.
Improve the overall quality of the pulses that are produced.This will be achieved through a three-layered approach that helps build farmers’ capacity to produce quality pulses. The approach includes : ( 1 ) availability of improved seed varieties ; ( 2 ) pre- and post-harvest techniques ; and ( 3 ) increased awareness of quality standards and market requirements.
� Availability of improved seed varieties. This concen-trates on securing sufficient improved varieties of seeds for production, particularly those with higher demand in target markets.
� Pre- and post-harvest techniques. This focuses on pro-moting the use of new technologies and quality controls, and on improving planting, agro-techniques and posthar-vest management. For this, training and skill upgrading programmes should be created to strengthen farmers’ and assemblers’ capacity to effectively deal with various postharvest challenges. Improving postharvest manage-ment and ensuring that the crop is handled and stored properly is essential across all the activities in this opera-tional objective.101
� Increased awareness of quality standards and market requirements. Issues related to quality standards will be addressed by a gap map of Ethiopian pulses. This will focus on the quality standards and requirements of po-tential target markets. Another area that will be improved is international accreditation and quality infrastructure. Ethiopian farmers should be able to certify their produc-tion to the relevant standards of their target markets. To support these changes, key regulations must be adjusted so as to streamline the sector’s functioning.
Strategic objective 2 : Improve expor t competitiveness by strengthening the connection between producers and the intermediaries in the value chain.
This strategic objective aims both to increase exports and to obtain information necessary to channel to producers. This then simultaneously targets both the demand and the sup-ply sides. A description of the operational objectives follows.
Strengthen the organization of the sector to ensure the exchange of information between producers and international markets.This operational objective aims to strengthen the sector’s organization to ensure an effective exchange of informa-tion between farmers, international markets and all of the intermediary value chain stakeholders. For this, the sector
101.– The Supporting Indian Trade and Investment in Africa project intends to collaborate with the Government to improve the use of existing collection centres and warehouses by the pulses sector. New storage facilities should also be created where a need has been identified. This network of ware-houses will help develop a structured national wholesale market for pulses.
Photo: (CC BY-SA 2.0) Swathi Sridharan, Securing incomes for women in Ethiopia.jpg
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must be united. This will enable it to speak to the authorities with one voice, to act as the focal point for issues affect-ing the sector, and to promote the overall development of the sector in Ethiopia and abroad. This shall be achieved by the creation of a ‘national pulses platform’ that, together with the Ethiopian Pulses, Oilseeds and Spices Processors-Exporters Association ( EPOSPEA ), should coordinate the implementation of the activities and recommendations in-cluded in this roadmap.
In addition, the working modalities between farmers, processors and exporters in the value chain must improve. In particular, the degree of transparency with which infor-mation is exchanged along the value chain must increase. An Internet-based platform providing real-time and up-to-date information relevant to all the stakeholders of the pulses value chain will enable this improvement.102 In parallel, the capacities of each linkage in the value chain must be in-creased to ensure that the information is used to increase crop and market diversification. The sector should discuss whether there could be some room for ECX to provide trans-parency to pricing practices.
Ensuring that the sector abides by the rule of law is an-other central aspect of this operational objective. Farmers, farmers’ organizations and assemblers are expected to be trained on the use of contract farming and similar contrac-tual arrangements to avoid market defaults. This is should help streamline the number of intermediaries in the pulses sector and change their roles to better serve various stake-holder needs. This should also positively affect potential investors’ perception of the sector.
102.– Trade information, market reports, trade intelligence, trade deals, pulses knowledge, market reports, and domestic and international prices are ex-amples of the different types of information expected to find a space on the site. The development of reliable market information systems will ensure the continuous growth and global reach of the sector.
Improve the capacity of the sector to enter new markets and to remain competitive in existing ones.The activities included in this operational objective are in-tended to promote exports and market development.103 The strategic objective includes crucial activities designed to provide adequate access to finance for those involved in international trade ( e.g. importers of inputs and exporters of pulses ) and to ensure that the sector has the capacity to absorb international investment and deliver on the ad-ditional exports. In this regard, some efforts exist to make the operational environment more suitable, including trade facilitation issues involving Customs and the development of business skills.
An important component of export promotion is devel-oping the capacity of commercial attachés in selected dip-lomatic missions to promote Ethiopian pulses and related processed products abroad. This will be accompanied by other initiatives to help promote the participation of the pulses sector in international trade fairs and exhibitions, and branding strategies : for example, developing pilot activities with key foreign organizations, piloting a market entry pro-gramme with India and organizing regular trade missions to selected target markets. Given the importance of the Indian pulses market, fostering knowledge-sharing and business connections between Ethiopian and Indian pulses produc-ers would benefit the sector by providing a better under-standing of Indian market requirements. Several activities factor this in through field trips.
Another central component is the use of market in-centives to facilitate access to financial resources for pro-cessors and exporters. Facilitating exporters’ access to finance should help them better cope with cash flow issues
103.– There is much diversification scope for the pulses sector in terms of markets and products.
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generated by international transactions. Strengthening the business skills of farmers, assemblers and exporters will be achieved by teaching a group of trainers on international trade issues. These trainers will then be expected to repli-cate the training.
This operational objective requires developing transpor-tation and logistics services as well as dealing with the most pressing trade facilitation issues.104 The emphasis of this activity is on infrastructure services. While the Supporting Indian Trade and Investment in Africa ( SITA ) project will not directly contribute to the development of transport infrastruc-ture, it may play a key role in improving services based on existing infrastructure and creating awareness of important infrastructure deficits. It may also leverage resources and strongly advocate for improved road and rail networks and cheaper transport to the port.
The investment absorption capacity of the sector will be increased by creating incentives that help retain existing in-vestors and attract new ones. Particularly, Indian FDI could be mobilized for product upgrading, e.g. processed food containing pulses.105 To become more attractive for foreign investors, Ethiopia should also incorporate specific policies for FDI in the production and processing of pulses. This involves creating incentives for foreign enterprises.
Strategic objective 3 : Maximize the develop-mental dividend of a booming pulses sector by ensuring the protection of the environment and inclusiveness.
This strategic objective aims to ensure that the benefits of the sector’s future growth will be passed through to sensi-tive segments of the population such as women and youth while protecting the environment. This strategic objective targets medium-to-long-term conditions that need to im-prove in order to ensure both the country’s and the sector’s sustainable development. A description of the operational objectives follows.
Strengthen the training and skills of the youngest actors in the pulses value chain, and ensure that gender-sensitive issues are addressed.The most important dimension of this operational objective is to provide the sector with the necessary skills needed to achieve the vision. Thus, the activities will rely heavily on women and youth. Whenever possible, skills should be developed for these two segments of the population. The
104.– Transportation, logistics and trade facilitation have also been identi-fied as major obstacles for trade, highlighting a crucial need for support to address these bottlenecks.105.– Following an export ban on processed pulses imposed by India since 2006, Indian investors have established processing plants abroad to be able to continue to supply the large South Asian diaspora across the world. Indian FDI has targeted countries like Nepal, Myanmar and the UAE. African coun-tries – including Ethiopia – could also take advantage of this market oppor-tunity and become a preferred destination for pulse processors from India.
activities in this section are geared towards enhancing the capacity of youth and women to participate in the value add-ing segments of the value chain. Tackling land access for women is one of the most pressing issues in this regard.
Although Ethiopia enjoys a large workforce, it still re-quires extensive training and specialization in a wide range of areas for full agricultural development. Developing the skills of the sector’s stakeholders will ensure that the sector’s growth is supported by an adequate labour supply. This implicates farmers and managers alike.
Developing the skills of stakeholders in the pulses sec-tor will be achieved through developing the knowledge and skills of key market actors, with a particular focus on seed production, storage, testing and certification. These actors, who are instrumental in relaying information at grass-roots level, will be trained regularly to keep them abreast with the latest technology and practices. Trainings will also cover ele-ments such as sowing and harvesting techniques, posthar-vest handling and market opportunities.
Ensure that the development of the pulses sector does not jeopardize the preservation of the environment.To not jeopardize the environment, the activities that are foreseen promote management and agricultural practices that environmentally neutral, e.g. promoting the use of pulse crops to replenish soil fertility in non-pulse crops.106 Pulses add nitrogen and also a significant amount of or-ganic residues to the soil in the form of root biomass and leaf litter. Roots and leaf litter, being rich in nitrogen, fa-cilitate the decomposition of crop residues in soil and in-crease microbial activity.107
This operational objective has been designed with the additional objective of ensuring the sustainability of the agri-cultural development of Ethiopia by putting the pulses sector at the forefront of the promotion of most sustainable prac-tices. To achieve this, a position paper describing the overall benefits that the pulses sector can bring to the preservation of the environment and the economic development of the country will be developed.
106.– Crop rotation involving pulses is beneficial to soil structure and stability.107.– The fungi present in the pulse crop rhizosphere produce a glycopro-tein called glomalin. The sticky part of glomalin entraps soil mineral, organic matter and debris to form stable soil aggregates. Hence, microbial activity of the rhizosphere is directly responsible for the improved soil structure in crop rotations involving pulses. Pulse crops have the ability to reduce the pH of the soil in the rhizosphere and make the micro-environment favourable for nutrient availability. Since pulses acquire a greater part of their nitrogen requirement from the air as diatomic nitrogen rather than from the soil as NO3, their net effect is to lower the pH of soil. Chickpea reduces the pH most, followed by pea and pigeon pea. This reduction in pH of the soil helps to create a favour-able soil environment, especially in neutral and alkaline soil environments, and also to increase the nutrient availability and microbial activity.
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THE VALUE CHAIN ROADMAP FOR THE NEXT FIVE YEARS
Figure 7 : The logical framework of the roadmap
Figure 7 crystallizes the chain of logic behind the roadmap for the sector. The ultimate objective is to improve the per-formance of the sector by raising productivity, improving the organization of the sector, and preserving the environment and the developmental dividend of the sector.
The numbers in the chart correspond to the following strategic and operational objectives.
1. Boost productivity and quality by using public and market-led incentives. This operational objective ulti-mately aims to adapt the current offer of pulses to what the international market demands.1.1. Lower the average cost of producing pulses.1.2. Expand the production of pulses.1.3. Improve the overall quality of the pulses that are
produced.
2. Improve export competitiveness by strengthening the connection between producers and the intermediar-ies in the value chain. This strategic objective has the double aim of increasing exports and obtaining infor-mation that needs to be channelled to producers. This simultaneously targets both the demand and the supply sides of the sector.
2.1. Strengthen the organization of the sector to ensure the exchange of information between producers and international markets.
2.2. Improve the capacity of the sector to enter new markets and to remain competitive in existing ones.
3. Maximize the developmental dividend of a booming pulses sector by ensuring the protection of the en-vironment and inclusiveness. This strategic objective aims to ensure that the benefits of the future growth of the sector will be passed through to sensitive segments of the population such as women and youth, while at the same time protecting the environment. This strategic objective targets the medium-to-long-term conditions that need to improve in order to ensure the sustainable development of the sector and the country.3.1. Strengthen the training and skills of the youngest
actors in the pulses value chain and ensure that gender-sensitive issues are addressed.
3.2. Ensure that the development of the pulses sec-tor does not jeopardize the preservation of the environment.
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FDI AND SOUTH–SOUTH COOPERATIONEthiopia has a significant advantage in the production of pulses, which still has considerable room to grow in terms of both acreage and yield. However, the country’s pulse export ban on foreign traders denies FDI its most advantageous entry point, and the challenges upstream and downstream of trading leave investors looking at the United Republic of Tanzania and Kenya as better places to invest. Ethiopia could improve its position through certain policy meas-ures, most notably lifting the trading ban and completion of agroprocessing-focused export processing zones. Even without these measures, Ethiopia is attractive to providers of agribusiness services and suppliers of agricultural inputs, making them viable targets for Ethiopia’s FDI promoters.
Target FDI source countries
India is the world’s largest producer of pulses. Among the six countries ( India, Pakistan, Canada, Myanmar, Australia and the United States ) that dominate global production, there are only two net importers : India and Pakistan. India is both the largest producer and importer, accounting for 26 % of the global import market. Pakistan is the second-largest producer and seventh largest importer, accounting for 3.5 % of the global import market. With high consumer demand and expertise in the production and marketing of pulses, India and Pakistan are the two most likely sources of FDI in the pulses sector.
Medium-sized pulse processors and distributors ( 20–50 tons per day ) in India and Pakistan, who had been importing pulses from East Africa, have begun exploring the possibil-ity of setting up trading offices in the region. The United Republic of Tanzania has won the most attention thanks to its high pulse volumes and established trading networks with India. This appears to be further stimulated by the com-petitive threat of the giant Export Trading Group expanding from Africa-based trading alone into processing and dis-tribution in its South Asian markets. As such, South Asian investors are under competitive pressure to cut out middle-men and directly source their inputs. These investors pre-sent very immediate opportunities for investment generation in the pulses sector and could be targeted for investment promotion, backed by sector-strengthening public policies to increase Ethiopia’s competitiveness with alternatives like the United Republic of Tanzania and Myanmar.
In the past few years, Ethiopia has seen so much inter-est from Indian buyers and investors that the Export–Import Bank of India has sought to facilitate business by opening an Ethiopian branch – one of only seven foreign branches and only the second one in Africa after the one in South Africa. However, Ethiopia presents several obstacles to in-vestors which competing locations do not and which seri-ously threaten to neutralize its advantages. These include a ban on raw pulse exports by foreign traders ; high-profile and
controversial failures of large-scale pulse farming projects by Indian investors ; and the difficulty South Asian buyers ex-perience in obtaining the short-term visas needed to inspect pulses prior to purchase and shipment.
The activities of a company successfully investing in a foreign country tend to follow a typical evolutionary path, depending on the product and sector. For a commodity such as pulses, one might expect to see foreign investors first establishing buying offices for the procurement and export of raw supply, then investing in basic processing, then in increasingly diverse product lines and value added processing. This allows investors to secure supply of inputs, learn the particularities of doing business in a new location, and establish marketing channels before committing larger amounts of capital.
The Ethiopian ban on raw pulse exports by foreign traders is, therefore, a major impediment to the sector’s attraction of FDI and its market-organizing, efficiency-promoting benefits, such as contract farming arrangements and connectivity to export markets. An investor might choose to enter the mar-ket further downstream, but a company venturing into un-familiar territory for the first time is unlikely to risk skipping the earlier steps in that evolutionary path in favour of more sophisticated, more capital-intensive steps, especially where competitors have not already demonstrated the possibility of success. This added risk and the higher level of industrializa-tion in a competitor such as Kenya makes Ethiopia relatively uncompetitive for the attraction of FDI in pulse processing.
Another alternative for market entry is to enter upstream, in primary production. With competitive land leases avail-able in Ethiopia, a number of Indian companies have estab-lished large-scale farms to produce pulses and other crops but with mixed success and a degree of controversy. Most notable is the case of Karuturi, which leased 300,000 ha of land in Gambela but has struggled to produce at more than a low percentage of targets and to service loans of several million dollars from Ethiopian banks.
Other modes of investment and engagement with do-mestic stakeholders, including those that are more funda-mental to the sector’s development ( e.g. contract farming, collateral management ) and those that promise higher value added ( e.g. packaged food manufacturing ) will be linked to government action to improve pulse quality and supply, as described in the four gears and PoA sections of this road-map. Top actions relate to the improvement of inputs ( seeds, fertilizer and pesticides ), better-organized pulse markets at the farm-gate level, better access to financing for small farm-ers, and more widespread farm mechanization.
FDI would both follow these improvements and play a role in achieving them. For example, a few early successes in attracting contract farmers or foreign development of seeds would make it easier for other investors to follow. In this way, FDI is both a means and an objective of sector development.
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
The market for FDI in pulses and agribusiness
As the global population grows and concern over food se-curity with it, the fact that 60 % of the world’s uncultivated arable land is in Africa is earning the continent considerable attention as a source of food commodities and agribusiness investment opportunities. The African population itself is projected to double between 2010 and 2050, many of whom will represent a new middle class, as six of the world’s 10 fastest growing economies are in Africa. As a consequence of these trends, Africa’s food market is projected to grow from US $ 313 billion in 2010 to US $ 1 trillion in 2030, with a corresponding boom in investment.
A US $ 500 million investment announced by Syngenta across multiple African countries is an example of the sort of large-scale investment which is becoming possible and which Ethiopia could be targeting. Syngenta plans to make the investment over 10 years in local production, logistics, distribution channel development, recruitment and training for seed and crop protection products.
Pulse trading and basic processing
In the short term, trading in pulses is the main opportunity likely to attract foreign investors. Medium-sized pulse pro-cessors and distributors ( 20–50 tons per day ) in India and Pakistan who had been importing pulses from East Africa have begun exploring the possibility of setting up trading offices in the region, with the United Republic of Tanzania’s high pulse volumes and established trading networks with India winning it the most attention.
If the export ban on foreign traders were lifted, these investors would present very immediate opportunities for investment generation and could be targeted for investment promotion. Although trading itself is a low value added activ-ity, FDI in this area would strengthen Ethiopia’s competitive-ness with alternatives like Myanmar, the United Republic of Tanzania and Kenya, assuring higher volumes of low value added FDI, attracting more FDI to critical agribusiness ser-vices, and laying the groundwork for higher value added food processing in the longer term.
Primary production of pulses on a large scale has not historically been an activity to attract FDI ; however, there is significant investment opportunity for existing domestic farmers to expand pulse yields and quantities, including through contract farming arrangements with foreign traders and processors. Although Ethiopia is already a global leader in pulse production, there remains significant room for ex-panded production, especially considering the suitability of pulses as an intercrop with several of Ethiopia’s major food crops : teff, wheat, barley, maize, sorghum and millet. At the same time, global demand for pulses as a heart-healthy food is growing and may be boosted further by the United Nations designation of 2016 as the International Year of Pulses.
Traders and processors with experience in contract farming arrangements could have a large effect on total production and, importantly, on the organization of the Ethiopian mar-ket. By guaranteeing prices to farmers and committing them to predetermined volumes, such arrangements add visibility on market volumes and prices, which is sorely lacking for pulses in Ethiopia today.
Agribusiness inputs and services
Perhaps the most attractive investments in the pulse sector are those that go beyond pulses specifically and have much larger markets in agribusiness generally, such as seeds, farm machinery and agrochemicals. Approximately 80 % of Ethiopians depend on agriculture in one way or another for their livelihoods, yet agriculture is largely conducted by small-holder farmers who make little use of the most modern inputs.
Table 3 presents the value chain segments where FDI is both needed and viable, along with leading sources of such FDI and competing locations in the region where in-vestors are active. Where a company is already present in Ethiopia, it may not yet be active in the product lines of most benefit to the pulses sector ( e.g. seed pulses, pulse-specific herbicides, pulse cultivation machinery, pulse processing technology ).
Ethiopia’s investment promoters and sector stakehold-ers should work to present proven investors with Ethiopia’s investment opportunities and, simultaneously, to advocate investment climate reforms that will enhance Ethiopia’s attractiveness. Table 3 presents the group of companies which collectively control large majorities of the global mar-kets in their given fields. These are not the only potential investors, and smaller regional companies may be better poised to move quickly into Ethiopia given their proximity and knowledge of the country. However, world-leading com-panies wanting to retain that leadership are likely to con-sider expansion into Africa more and more as the continent is given increasing importance in global food strategies. Conversely, realizing full potential for agribusiness is more likely if the world’s leading players are involved in the scaling up of its production.
Furthermore, most of the companies in Table 3 already have presences in the region. Future investment projects in Ethiopia might originate with headquarters or with these regional affiliates. For the companies with no presence cur-rently in Ethiopia, a first venture would likely take the form of a sales office. Although this does not create the jobs, technology spillovers or skill spillovers of a manufacturing project, for example, the possibility of a sales office should not be dismissed by investment promoters as being of low value. A first sales office is an opportunity for a foreign com-pany to make tentative entry into a new market, learning the business landscape and achieving a level of comfort. Of more immediate importance, it can provide Ethiopia’s pulses sector with valuable access to more affordable, high-quality inputs that are essential to the strengthening of the sector.
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47
Table 3 : Value chain segments needing FDI and likely sources
Value chain segments where FDI is needed and viable
Leading companies with foreign affiliates in
Eastern and Southern Africa
Source countryEastern and Southern African countries
with an existing affiliate
Seeds, fertilizers and pesticides – sales, distribution, manufacturing, and research and development
BASF Germany South Africa
Bayer CropScience Germany Mozambique, South Africa, Sudan, Zambia, Zimbabwe
Dow AgroSciences United States South Africa
DuPont ( Pioneer ) United StatesEthiopia, Kenya, South Africa, the United Republic of
Tanzania, Zambia, Zimbabwe
KWS Saat ( seeds ) Germany Kenya, South Africa, Sudan
Monsanto United States Kenya, Malawi, South Africa, Zimbabwe
Syngenta SwitzerlandEthiopia, Kenya, Mozambique, South Africa, Sudan, the
United Republic of Tanzania, Zambia, Zimbabwe
Farm machinery and equipment – sales, distribution, manufacturing, operation, maintenance and repair
AGCO United States None
CLAAS Germany None
CNH Netherlands South Africa
John Deere United States South Africa
Kubota JapanKenya, Madagascar, Mozambique, South Africa, the United
Republic of Tanzania, Uganda
SAME Deutz-Fahr Italy None
Animal feed – manufacturing, and research and development
Brasil Foods Brazil None
Cargill United States Kenya, Mozambique, South Africa, Zambia, Zimbabwe
Charoen Pokphand Thailand None
New Hope Group China None
Tyson Foods United States None
Vertically integrated trading, including warehousing, transportation, and risk management ( as well as agricultural consulting and manufacturing of biofuels and animal feed in some cases )
Archer Daniels Midland United States None
Bunge United States Kenya, South Africa
Cargill United States Kenya, Mozambique, South Africa, Zambia, Zimbabwe
Louis Dreyfus Commodities Netherlands Kenya, South Africa
Quality testing and certification
Cotecna Switzerland South Africa
Intertek United KingdomDjibouti, Kenya, Mozambique, South Africa, the United
Republic of Tanzania, Uganda
NSF United States South Africa
SCS United States None ( Only Ghana in Africa )
SGS Switzerland
Burundi, Djibouti, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Mozambique, South Africa, United Republic of
Tanzania, Uganda, Zambia, Zimbabwe
SAurAAA : Shand, Hope ( 2012 ), Noealt Corporate Services ( 2013 ), Peter Best and Ken Jennison ( 2012 ),
Murphy, S., Burch, D. and Clapp, J. ( 2012 ), and company websites.
Ethiopia’s investment promoters and sector stakeholders should work to present proven investors with Ethiopia’s in-vestment opportunities and, simultaneously, to advocate investment climate reforms that will enhance Ethiopia’s attractiveness. Table 3 presents the group of companies which collectively control large majorities of the global mar-kets in their given fields. These are not the only potential investors, and smaller regional companies may be better
poised to move quickly into Ethiopia given their proximity and knowledge of the country. However, world-leading com-panies wanting to retain that leadership are likely to con-sider expansion into Africa more and more as the continent is given increasing importance in global food strategies. Conversely, realizing full potential for agribusiness is more likely if the world’s leading players are involved in the scaling up of its production.
48
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Furthermore, most of the companies in Table 3 already have presences in the region. Future investment projects in Ethiopia might originate with headquarters or with these regional affiliates. For the companies with no presence cur-rently in Ethiopia, a first venture would likely take the form of a sales office. Although this does not create the jobs, technology spillovers or skill spillovers of a manufacturing project, for example, the possibility of a sales office should not be dismissed by investment promoters as being of low value. A first sales office is an opportunity for a foreign com-pany to make tentative entry into a new market, learning the business landscape and achieving a level of comfort. Of more immediate importance, it can provide Ethiopia’s pulses sector with valuable access to more affordable, high-quality inputs that are essential to the strengthening of the sector.
THE ETHIOPIAN BUSINESS ENVIRONMENT FOR THE PULSES SECTOR
The national investment climate
Table 4 presents several indicators of the attractiveness of Ethiopia’s business environment, particularly as it com-pares with those of other likely destinations for pulse FDI. In terms of the ease of doing business, Ethiopia is in the same ballpark as India, Pakistan, the United Republic of Tanzania and Kenya. Myanmar, which is the source of 90 % of India’s imports of pulses, lags significantly, giving East African countries a relative selling point among Indian and Pakistani investors.
Based on interviews with sector experts, it appears that Myanmar, the United Republic of Tanzania, and Kenya are Ethiopia’s closest competitors for Indian and Pakistani investment in pulse trading and basic processing. By the investment climate measures below, Ethiopia consistently
outranks Myanmar. With respect to the United Republic of Tanzania and Kenya, Ethiopia ranks significantly worse in terms of economic freedom and level of industrialization ( United Nations Industrial Development Organization ), al-though it does better in terms of the perception of corrup-tion. In terms of the ‘set of institutions, policies and factors that determine the level of productivity of a country’ ( WEF ), Kenya does significantly better than Ethiopia.
Perhaps more important than the position of Ethiopia’s investment climate is its trajectory. Its impressive eco-nomic growth of the last several years ( 6 %–12 % per year, depending on the data source ) and recent reforms have helped Ethiopia achieve significant positive buzz in inves-tor circles as a rapidly emerging economy. Underlying the Government’s business environment reforms is its national development plan, the GTP.
The GTP targets Ethiopia achieving middle-income sta-tus by 2025, with enhanced productivity in manufacturing as a key driver. Public expenditures and domestic savings are far from adequate to the task, so foreign investment is cited as crucial to realization of the GTP. Anecdotal evidence suggests that investors generally view Ethiopia’s high-level government commitment to FDI in certain sectors as being deep and meaningful, with investors being given ‘red carpet’ treatment, including direct access to the Prime Minister and other officials. Agroprocessing is one of the GTP’s eight sec-toral priorities and well-organized sector stakeholders with a clear vision of the sector’s development potential would, in principle, receive the same practical commitments from the Government.
Chief among the Government’s business environment reforms have been large public investment in infrastructure and power generation ; creation of industrial zones with dedi-cated infrastructure and special incentives ; and streamlining of Government procedures through clarification of the com-mercial code and setting up of an effective one-stop shop.
Table 4 : The investment climate in Ethiopia and possible competitors for pulse investment
International benchmark IndiaUnited Republic
of TanzaniaPakistan Kenya Bangladesh Ethiopia Myanmar
Average of six major rankings 94 108 115 121 125 127 136
Ease of Doing Business ranking ( World Bank Group, 2015 ) 142 131 128 136 173 132 177
Competitive Industrial Performance ranking ( United Nations Industrial Development
Organization, 2010 ) 43 106 74 102 78 130 Not ranked
Global Competitiveness Index ( WEF, 2014 ) 71 121 129 90 109 118 134
Inward FDI Performance Index ( United Nations Conference on Trade and
Development, 2010 ) 97 59 110 129 114 120 52
Corruption Perception Index ( Transparency International, 2014 ) 85 119 126 145 ( tie ) 145 ( tie ) 110 156
Economic Freedom Index ( Heritage Foundation, 2015 ) 128 109 121 122 131 149 161
Photo: CIAT (CC BY-SA 2.0)
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Table 5 : Comparison of costs and competitive factors
Estimated value Ethiopia Kenya United Republic of Tanzania India China
Cost of labour ( US $ / month ) 50–60 110–150 70 175 550
Labour skills Low Low–medium Low High High
Cost of electricity ( US¢ per kilowatt-hour ), estimated average 2–5 16–18 12 7–12 9–15
Percentage of annual sales lost to electrical outages 2.6 5.6 5.5 2.0 0.1
Cost of construction ( US $ / ft2 ) 40 21 34 18–20 15–20
Lending rates ( estimated ) 8.5 14–18 19 7–13 7
Time to clear Customs, imports & exports ( days ) 37 31 44 12 17
In terms of FDI policy specifically, investors enjoy standard protection from expropriation and unrestricted repatriation of profits, although a shortage of foreign exchange can cause delays. Ethiopia is a member of the Multilateral Investment Guarantee Agency, thereby offering investors the possibility of qualifying for invest-ment guarantees. There is a minimum capital requirement of US $ 200,000 for wholly for-eign-owned projects, although this is not required of reinvestments.
Sector specificsThe Ethiopian Agricultural Transfor-mation Agency ( ATA ) is implement-ing a strategy to increase integration of pulses and cereals in a way that is meant to raise the percentage of cropland under pulse cultivation from 13 % to approximately 40 %. Standard incentives available to foreign agribusi-ness investors are as follows :
� Customs duty exemptions of up to 100 % on imports of capital goods
� Income tax exemptions for a period ranging between one and nine years, depending on the specific activity and the location of the investor
� Loss carry forward for businesses that suffer losses during the income tax exemption period, for half of the tax exemption period
� No export tax is levied on Ethiopian export products � Duty drawback scheme, voucher scheme, bonded fac-
tory and manufacturing warehouse schemes � Various non-fiscal incentives for exporters.
In Ethiopia, agricultural wages are approximately US $ 55 per month, and electricity is US $ 0.02–0.05. This is much more competitive than in either the United Republic of Tanzania or Kenya ( see table 5 ). However, the agricultural value add-ed per worker ( in constant 2005 US $ ) in Ethiopia ( 269 ) is lower than in both the United Republic of Tanzania ( 310 ) and Kenya ( 390 ).
The percentage of agricultural land that is irrigated is very low and comparable to the percentages in Myanmar and Kenya, though lower than in the United Republic of Tanzania. In terms of the average application rate of fer-tilizer ( in kilograms / ha / year ), Ethiopia’s ( 14 ) is more than the United Republic of Tanzania’s ( 5 ) but less than Kenya’s ( 30 ).
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
FUTURE VALUE CHAIN
Figure 8 : The future pulses value chain
Irrigation
Skilled Labor
Quality Seeds
Land
State Commercial Farms 1-2%
(Very few left)
Smallholder & Medum-sized
Producers
>95% (8 to 9 Million)
Cleaning
Sorting & Grading
International Transporter
Processors
International Consumer 20%
National Consumer 50%
Assemblers
Brokers
Primary Cooperatives
Exporters (40 Adama)
Input Production Assembly Processing Markets
Marketing & labeling
National Component International Component
Packaging
Subsistence Needs 30%
• Urban supermarket
• National Local Consumer
Warehousing (Processors, ECX,
EGTE, ESE)
• India • China • Egypt • Pakistan • Bangladesh • UK • Italy • Spain • Algeria • Other
Quality Fertilizers
Modern Machinery
Private Commercial
Farms <2.5% (Very big)
EGTE
ECX
Quality Control
Dehusking & Splitting
Transformation
Quality Pesticide & Insecticide
ESE
Customs
Local Retailers
Local Wholesalers
Regional Wholesalers
Farmers’ Unions
Unlocking the potential of the pulses sector will require transformations throughout the value chain. These adjust-ments, as reflected in the future value chain schematic ( fig-ure 9 ), are the result of the targeted efforts detailed in the PoA that address the constraints identified in the four gears analysis. The future value chain will be characterized by :i. Greater use of quality inputs including quality irrigation
systems, skilled labour, quality seeds, quality fertilizers, quality pesticides / insecticides, land and modern farm machinery ( e.g. planters, sprayers ) ;
ii. An increased percentage of medium-sized farms and a decrease in smallholder producers ;
iii. Increased transparency and support services between all stakeholders during the assembly phase ;
iv. Development and promotion of quality standards and increased use of modern machinery during the process-ing phase ;
v. Increased markets, i.e. India, and strengthened ties to current ones.
Of the segments depicted in the future value chain, FDI will be the sector’s main engine of growth over the next several years. Realizing a future value chain with the aforementioned characteristics depends heavily on the ability of the sector stakeholders to :i. Create linkages between FDI and domestic producersii. Quickly address the infrastructural, bureaucratic
and logistical constraints that harm Ethiopia’s global competitiveness
iii. Proactively develop smallholders’ agricultural skills and knowledge of agricultural best practices.
FDI in support services and industrial zone development would closely follow. Also, as the quality and quantity of do-mestic pulse production increases, a greater supply of FDI may flow to integrate processing systems, thereby further reinforcing the national value chain.
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51
Inputs
a. Rainwater irrigation. Smallholders and mid-sized farmers move from exclusively relying on rainwater to understanding the benefits that various alternative or complementary types of irrigation can bring.
b. Unskilled labour skilled labour. Part of the labour force acquires important skills through their participation in crop rotation, planting and postharvest programmes, and their increased exposure to sector specialists.108
c. Seeds quality seeds. A quality standards gap map of Ethiopian pulses is developed, use of improved seed varieties is promoted, and quality seeds are cheaper and readily accessible from ESE.109
d. Fertilizers quality fertilizers. Quality fertilizers are affordable and accessible, and classes are available to understand and implement the proper use of these. This leads to increased production.110
e. Pesticides & insecticides quality pesticides & insecticides. Quality pesticides and insecticides are affordable and accessible, and classes are available to understand and implement the proper use of them. This leads to increased production.111
f. Farm equipment modern machinery. Appropriate farm mechanization technologies have been identified i.e. raw planters, combine harvesters and threshers are purchased and are being used. This leads to significant reductions in farmers’ production costs.112
Production
a. Smallholder farms smallholder & medium-sized producers. The average size of private commercial farms increases. A plan to increase the average size of pulse farms is implemented. This includes trainings on the use of contract farming, which leads to the increase in private commercial farms.113
108.– This would be achieved as a result of the implementation of the activi-ties delineated in the PoA in sections 1.2.2, 1.3.4, 1.3.5, 2.2.7, 3.2.2 and 3.2.1.109.– The PoA targets this area in sections 1.1.2, 1.1.3, 1.3.1 and 1.3.2.110.– 1.2.6 Increase production through better use of biofertilizers and similar inputs and agronomic practices.111.– 1.2.1 Increase production through increased and responsible use of pesticides.112.– 1.2.5 Increase production of pulses through better use of available and / or affordable mechanization. 1.1.4 Set up a funding and credit guaran-tee plan involving commercial banks, microfinance institutions, donors and the public sector. The beneficiaries of the fund would have to first graduate from the credit guarantee mechanism to later tap into the funds that would be intended for more capital-intensive projects with a high impact potential.113.– 1.1.1 Develop a plan to increase the average size of pulses farms. 2.1.6 Train farmers, farmers’ organizations and assemblers on the use of contract farming and similar contractual arrangements to avoid market defaults and to streamline the number of intermediaries in the pulses sector.
Assembly
a. ECX potentially includes pulses under its trading umbrella.b. ESE potentially acts as a seed bank. It also has vis-
ual dictionary on file for the benefit of all value chain stakeholders.
c. Local retailers, regional and local wholesalers, and farmers’ unions begin working together. There is effec-tive information exchange between these. There is also an Internet-based platform that provides real-time and up-to-date information that is relevant to pulses value chain stakeholders.
Processing
a. Quality control. Quality standard requirements are de-veloped, promoted and implemented by stakeholders in the processing phase.
b. Dehusking and splitting. Modern machinery is pur-chased and used for dehusking and splitting pulses.
c. Warehousing. Educational programmes and increased skills have led to the use of pesticides during storage and the use of better storage units.
Leveraging market oppor tunities
Customs. Customs processes are modified to reduce both the amount of time needed to clear Customs and the amount of paperwork to export pulses.
In order to take advantage of existing and future market opportunities, Ethiopia should continue to deepen trade of unprocessed pulses and simultaneously develop an indus-try of processed pulses.
The move towards gluten-free diets is promoting the use of pulses. The last few years have seen important changes in dietary patterns that affect pulses. For example, greater awareness of coeliac disease and gluten sensitivity has made the demand for gluten-free products rise.114 A variety of gluten-free grains, flours and starches can be substituted for wheat, rye and barley in product formulations. However, replacing grains with gluten-free alternatives in food prod-ucts is not easy. Pulses, such as yellow peas, lentils and chickpeas, are already gaining recognition as the ‘new and improved’ heart of healthy foods. The high-quality protein in dry pea, lentil and chickpea flour makes for a perfect amino acid offering when blended with other gluten-free grains such as rice flour. What is more, these pulses deliver quan-tity as well as quality : Dry pea, lentil and chickpea flours contain 22 %–25 % protein, are high in lysine and listed as both a vegetable and protein. This is pushing the demand for pulses from non-traditional consuming countries.
114.– Gluten is comprised of proteins ( e.g. gliadin, glutenin ) predominantly found in cereal grains such as wheat, rye and barley.
52
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Pulses are increasingly being used for products like noo-dles, pasta and chips, and as ingredients in other processed foods as an alternative to animal protein. The rise in the mid-dle class in non-traditional markets like the Africa and Asian markets, followed by the rise in supermarket culture, has led to an increase in demand for processed foods. The types of pulses that are seeing an increase in use by the processing industry overseas are chickpeas and dry peas. These are precisely the types that are grown in Ethiopia.
The opportunity for Ethiopia is further increased due to some structural changes that have taken place in recent times in India – the largest consuming and importing coun-try. Traditionally the large South Asian diaspora across the world imported processed dhal from India and other neigh-bouring countries. However, since 2006 Indian exports of
pulses, even processed pulses, have been banned. This has led to some structural changes, and processing plants are being relocated to places like Dubai and Singapore, in part because raw materials for processing are readily avail-able to Indian processors in these locations. Also, the cost of processing is low and exporting is less competitive. In addition, transnational companies have started to dominate value chains. With a big regional market for dhal, the ben-efits of agreements like AGOA and Everything But Arms cre-ate opportunities for Ethiopia to attract FDI.
Processing is an option in the short term given the low cost of processing pulses in Ethiopia. However, processing for other products like pasta and chips may take some more time. Box 1 illustrates the matrix of product and market op-portunities available to the sector.
Box 1 : Ethiopia’s product and market opportunities
Existing pulses New pulses
Existing markets
Deepen the marketHaricot beans, pea beans, horse beans, chickpeas and lentils :
� Gulf States ( Saudi Arabia, Yemen, Israel ) � EU � Asian countries ( mainly Pakistan ) � Neighbouring African countries
Product development � Processed dhal to the regional market,
the United States and the United Kingdom � Processed pulse flours to the UAE and the EU
New markets
Market development � Mung beans and lentils to India
Diversification � Pigeon peas to India � New varieties of chickpeas to India,
Pakistan and the UAE
MOVING TO ACTION
The development of the future value chain for the pulses sector is a five-year project defined through a consultative process between public and private sector stakeholders in the country. Achieving the future value chain of the pulses sector depends heavily on the ability of sector stakeholders to implement the activities defined in the roadmap. For this reason, it is recommended that the following key areas of intervention be implemented with priority in order to facilitate the implementation of the pulses roadmap :
� Establish a network of institutions to guide development efforts to maintain public–private dialogue
� Build collaboration with national and international techni-cal and financial partners to support the implementation of the roadmap
� Strengthen the ability of key national institutions to attract national and international investment to the value chain.
These actions aim to enable the implementation of the road-map’s PoA in a coordinated and transparent manner. Pulses being an emerging sector, a large share of value chain de-velopment will fall under the responsibility of the private sector as key drivers and beneficiaries. By enabling and supporting private sector operators to develop the sector, policymakers will be able to contribute to its overall national development goals.
ROADMAP PLAN OF ACTION
The following PoA provides the overall framework that will guide the implementation of the strate-gic roadmap over the next five years. The PoA contains strategic objectives, operational objectives and relevant activities.
Strategic objectives represent the major thematic issues that the roadmap addresses. They embed the ultimate goals and purpose that the programmed actions are intended to achieve. For clarity of purpose, strategic objectives are broken down into operational objectives that define their scope of implementation. There are short-, medium- and long-term operational objectives. Operational objectives are in turn broken down into activities. The activities define the precise actions that will be undertaken and the organization( s ) that will be responsible. Activities specify concrete targets and measures.
Photo: CIAT (CC BY-SA 2.0), climbing beans.jpg
54
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Stra
tegi
c ob
ject
ive
1 : B
oost
pro
duct
ivity
and
qua
lity
by u
sing
pub
lic a
nd m
arke
t-led
ince
ntiv
es.
Oper
atio
nal o
bjec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
2016
2017
2018
2019
2020
1.1
Lowe
r the
ave
r-ag
e co
st o
f pro
ducin
g pu
lses.
1.1.
1 De
velo
p a p
lan to
incr
ease
the a
vera
ge s
ize o
f pul
se fa
rms.
This
activ
ity is
divi
ded
in tw
o pa
rts. I
n th
e sho
rt ter
m, i
t co
nsist
s of p
ilotin
g a c
luste
ring
appr
oach
that
allow
s farm
s to
pool
reso
urce
s and
mate
rializ
e som
e of t
he b
enefi
ts of
integ
ra-tio
n in
a loo
se fo
rm. I
n th
e med
ium-to
-long
term
, the
activ
ity co
nsist
s of m
aking
use
of f
iscal
incen
tives
to en
cour
age p
ulse
far
ms t
o ga
in siz
e.In
the s
hort
term
, the
clus
tering
appr
oach
will
seek
to es
tablis
h a g
roup
of 1
0 clu
sters
of p
ulse
farm
s dea
ling
with
chick
peas
( fo
ur ),
pige
on p
eas (
two )
and
mun
g be
ans (
four
). Th
e aim
of t
hese
clus
ters w
ould
be t
o :
• Or
ganiz
e sm
allho
lder
farm
ers f
or co
llecti
ng p
rodu
ction
;•
Pool
reso
urce
s to
guara
ntee
acce
ss to
appr
opria
te m
echa
nizati
on se
rvice
s thr
ough
seco
nd-h
and
acqu
isitio
n an
d im
ports
, an
d tes
ting
of n
ew m
achin
ery,
amon
g ot
her i
nitiat
ives ;
• Int
rodu
ce, a
dopt
and
pilo
t new
farm
mac
hiner
y for
plo
ughin
g, p
lantin
g, h
arves
ting
and
thres
hing
appr
opria
te fo
r pul
ses ;
• Al
low
farm
s to
enjo
y the
ben
efits
of si
ze u
nder
a lo
ose f
orm
of i
nteg
ratio
n ;•
Supp
ly th
e mark
et wi
th af
ford
able
impr
oved
seed
varie
ties o
f pul
ses t
hat a
re in
dem
and
thro
ugh
the i
ntro
ducti
on, t
estin
g an
d m
ultip
licati
on o
f see
ds.
In th
e med
ium-to
-long
term
, the
fisc
al ap
proa
ch w
ould
seek
the f
orm
ation
and
cons
olid
ation
of l
arge-
scale
farm
s thr
ough
ap
prop
riate
incen
tives
. Som
e of t
he in
cent
ives t
hat c
ould
be c
onsid
ered
inclu
de th
e fol
lowi
ng :
• Th
e use
of f
iscal
incen
tives
( i.e.
tax i
ncen
tives
, tem
porar
y reb
ates )
for f
arms t
o int
egrat
e or m
erge
• Th
e use
of i
nteg
ratio
n inc
entiv
es su
ch as
man
dato
ry m
inim
um vo
lum
es•
The p
rom
otio
n of
land
rent
al m
arket
mec
hanis
ms.
Larg
e-sc
ale fa
rms o
perat
e und
er lo
wer a
verag
e cos
t stru
ctures
. The
y are
in a b
etter
pos
ition
to ex
ploi
t eco
nom
ies o
f sca
le an
d sy
nerg
ies d
erive
d fro
m co
stly i
nves
tmen
ts in
irrig
ation
and
mec
haniz
ation
. This
activ
ity sh
ould
be d
evelo
ped
in pa
rallel
to
2.1
.6 o
n co
ntrac
ting.
3X
XX
• Inc
rease
in th
e ave
rage
farm
size
dur
ing th
e im
plem
entat
ion
of th
e ro
adm
ap•
Increa
se in
the n
umbe
r of
large
-sca
le far
ms d
edica
ted
to p
ulse
s•
Num
ber o
f pul
ses c
luste
rs es
tablis
hed
• Nu
mbe
r of p
ulse
s vari
eties
pr
ovid
ed•
Num
ber o
f ben
eficia
ries o
f im
prov
ed va
rietie
s•
Num
ber o
f im
plem
ents
intro
duce
d, ad
opted
and
distr
ibut
ed to
use
rs
Ethio
pian
Inve
st-m
ent A
genc
yM
inistr
y of A
gri-
cultu
re ( M
oA )
Mini
stry o
f Fin
ance
and
Eco-
nom
ic De
velo
p-m
ent,
Ethio
pian
Insti
tute
of A
gricu
ltural
Re
searc
h ( E
IAR )
, se
ed en
terpr
ises
Inter
natio
nal
dono
r age
ncies
, Int
erna
tiona
l Cr
ops R
esea
rch
Instit
ute f
or th
e Se
mi-A
rid Tr
opics
( IC
RISA
T )
1.1.
2 De
velo
p a p
lan th
at fac
ilitat
es co
mm
ercial
farm
s’ an
d sm
allho
lder
farm
ers’
acce
ss to
suffi
cient
amou
nts o
f affo
rdab
le se
eds.
The f
ocus
of t
his ac
tivity
is o
n se
ed m
ultip
licati
on. T
he el
abor
ation
of t
he p
lan w
ould
take
into
cons
ider
ation
som
e of
the f
ollo
wing
elem
ents.
• Ide
ntify
the i
mpr
oved
seed
varie
ties t
hat a
re ( a
nd sh
ould
be )
mos
t com
mon
ly us
ed to
redu
ce th
e cos
t of p
rodu
ction
whil
e en
surin
g th
e req
uired
leve
l of q
ualit
y.•
Crea
te aw
arene
ss am
ong
farm
ers o
n th
e cos
t adv
antag
es o
f the
iden
tified
varie
ties.
Expo
rters
shou
ld g
et inv
olve
d.•
Deve
lop
a see
d m
ultip
licati
on p
rogr
amm
e tha
t ena
bles
the s
uppl
y of s
uffic
ient s
eeds
. Farm
ers’
asso
ciatio
ns w
ill p
lay a
role
in di
strib
uting
the s
eeds
.•
Expe
rienc
e- an
d kn
owled
ge-s
harin
g be
twee
n Ind
ian an
d Et
hiopi
an fa
rmer
s. De
velo
p a p
acka
ge o
f bes
t prac
tices
for
prod
ucing
pul
ses c
rops
pro
fitab
ly.•
Traini
ng o
f exte
nsio
n pe
rsonn
el, an
d pr
omot
ing p
rodu
ction
and
orga
nizing
dem
onstr
ation
s thr
ough
farm
er tr
aining
cent
res.
Colle
ct an
d inc
orpo
rate f
armer
pref
erenc
es an
d fee
dbac
k.
1X
XX
• Ei
ght w
ored
as in
four
regi
ons
( Oro
mia
– th
ree, A
mha
ra –
three
, Tig
ray –
one
, SNN
PR
– on
e )•
Star
t with
600
ha u
nder
each
va
riety
• Fiv
e exte
nsio
n of
ficer
s and
50
farm
ers i
n ea
ch w
ored
a tra
ined
EIAR
Regi
onal
Agric
ul-
tural
Res
earc
h In-
stitu
tes ( R
ARIs )
, Bu
reau
of A
gri-
cultu
re ( B
oA ),
MoA
, Fed
eral
Co-
oper
ative
Age
ncy
( FCA
), AT
AEd
get S
eed
Pro-
ducti
on an
d M
ar-ke
ting
Unio
n
Tropi
cal L
egum
es
III pr
ojec
t ( TL
III )
( fund
ed b
y the
Bi
ll an
d M
elind
a Ga
tes F
ound
a-tio
n ) o
n ch
ickpe
aNo
pro
ject o
n pi
geon
pea
ICRI
SAT,
Inter
natio
nal
Trade
Cen
tre
( ITC )
1.1.
3 Es
tablis
h a s
eed
bank
that
guara
ntee
s farm
ers’
acce
ss to
seed
s tha
t the
y nee
d wh
en th
ey n
eed
them
. This
activ
ity w
ill
focu
s on
relau
nchin
g th
e rol
e of E
SE, w
hich
is th
e ins
titut
ion
with
a m
anda
te th
at is
close
st to
a se
ed b
ank.
The m
ain fu
nc-
tions
of t
he b
ank w
ould
inclu
de th
e fol
lowi
ng.
• St
ore s
eeds
as a
sour
ce fo
r plan
ting
or m
ultip
licati
on in
case
seed
rese
rves e
lsewh
ere ar
e des
troye
d. E
nsur
e ava
ilabi
lity o
f pu
lse va
rietie
s tha
t are
strate
gic t
o Et
hiopi
a, an
d fo
r bio
dive
rsity
reaso
ns.
• M
aintai
n sto
cks o
f cer
tified
seed
s for
farm
ers.
This
func
tion
shou
ld o
perat
e und
er a
syste
m o
f quo
tas fo
r farm
ers.
The s
eed
bank
aim
s to
lowe
r the
cost
of in
puts
while
ensu
ring
the l
ong-
term
susta
inabi
lity o
f the
pul
ses s
ecto
r.
3X
X•
Seed
ban
k esta
blish
ed o
r the
ro
le of
ESE
rede
fined
• Nu
mbe
r of s
eeds
iden
tified
• Nu
mbe
r of s
tock
s ava
ilabl
e
Seed
com
panie
sM
oA, I
CRIS
AT,
ESE
FAO
[ ROADMAP PLAN OF ACTION ]
55
Stra
tegi
c ob
ject
ive
1 : B
oost
pro
duct
ivity
and
qua
lity
by u
sing
pub
lic a
nd m
arke
t-led
ince
ntiv
es.
Oper
atio
nal o
bjec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
2016
2017
2018
2019
2020
1.1
Lowe
r the
ave
r-ag
e co
st o
f pro
ducin
g pu
lses.
1.1.
4 Se
t up
a fun
ding
and
cre
dit g
uara
ntee
plan
invo
lving
com
merc
ial b
anks
, micr
ofina
nce i
nstit
utio
ns, d
onor
s and
the
publ
ic se
ctor.
The b
enefi
ciarie
s of t
he fu
nd w
ould
hav
e to
first
grad
uate
from
the c
redit
guara
ntee
mec
hanis
m to
later
tap
into
the f
unds
that
woul
d be
inten
ded
for m
ore c
apita
l-int
ensiv
e pro
jects
with
hig
h im
pact
poten
tial.
Cred
it gu
arant
ee w
ould
be
prov
ided
again
st a c
ombi
natio
n of
facto
rs, in
cludi
ng th
e ‘ex
pecte
d’ re
turn
on
capi
tal an
d th
e unc
ondi
tiona
l cap
acita
tion
of th
e be
nefic
iaries
. The
sche
me w
ould
be o
pen
to al
l stak
ehol
ders
of th
e valu
e cha
in ex
cept
expo
rters
( they
will
hav
e a d
edica
ted
mec
hanis
m u
nder
2.2
). So
me o
f the
mos
t im
med
iate a
ction
s wou
ld in
clude
the f
ollo
wing
.
• Ide
ntify
the f
inanc
ial in
stitu
tions
that
woul
d tak
e par
t in
the s
chem
e.•
Nego
tiate
the s
pecif
ic all
ocati
on o
f fun
ds fr
om th
e priv
ate se
ctor,
dono
rs an
d th
e Gov
ernm
ent.
The p
rivate
secto
r wou
ld
have
to as
sum
e mos
t of t
he in
itial
capi
tal, t
he p
ublic
secto
r a sm
all p
ercen
tage,
and
dono
r( s ) a
marg
inal o
ne.
• Ide
ntify
a do
nor( s
) will
ing to
par
ticip
ate w
ith a
small
perc
entag
e of t
he to
tal am
ount
of f
unds
and
to p
rovid
e or f
inanc
e the
co
nditi
onal
capa
city-
build
ing.
• Ide
ntify
the c
apac
ity-b
uildi
ng tr
aining
pro
gram
mes
that
will
be re
quire
d.•
Decid
e the
prio
rity a
reas t
o su
ppor
t, inc
ludi
ng se
ed d
evelo
pmen
t res
earc
h, se
ed m
ultip
licati
on, t
echn
olog
y dev
elopm
ent,
infras
tructu
re an
d pr
oces
sors.
• Ide
ntify
the e
ligib
ility
cond
ition
s for
pul
ses v
alue c
hain
stake
hold
ers,
i.e. f
armer
s, co
mpa
nies,
indivi
dual
entre
pren
eurs
and
coop
erati
ves.
• Ch
oose
dec
ision
-mak
ing cr
iteria
and
rules
for t
he fu
nctio
ning
of th
e fun
d.Fa
cilita
ting
small
hold
er fa
rmer
acce
ss to
fina
nce i
s exp
ected
to h
elp th
em re
duce
the c
ost o
f inp
uts a
nd o
ther
pro
ducti
on
servi
ces.
It is
also
expe
cted
to cr
eate
oppo
rtunit
ies fo
r oth
ers i
n th
e valu
e cha
in to
incr
ease
pro
ducti
on an
d qu
ality
and
re-du
ce th
e ove
rall c
ost o
f pul
ses.
This
activ
ity is
cros
s-cu
tting
to o
perat
iona
l obj
ectiv
es 1
.1, 1
.2 an
d 1.
3.
1X
XX
X•
Cred
it gu
arant
ee p
lan
estab
lishe
d•
Num
ber o
f fina
ncial
ins
titut
ions
par
ticip
ating
• Fu
nd es
tablis
hed
• Nu
mbe
r of f
armer
s who
hav
e ac
cess
to cr
edit
Non-
gove
rnm
ent
orga
niza
tions
Micr
ofina
nce
instit
utio
ns, c
om-
merc
ial b
anks
, SI
TA
Mul
tinati
onal
finan
cial i
nstit
u-tio
ns
1.1.
5 Ide
ntify
and
pilo
t app
ropr
iate f
arm
mec
hani
zatio
n tec
hnol
ogies
( raw
plan
ters,
com
bine
harv
ester
s and
thres
hers
) tha
t ca
n lea
d to
sign
ifica
nt re
ducti
ons i
n far
mer
s’ pr
oduc
tion
costs
. This
shou
ld in
clude
matu
re tec
hnol
ogies
and
equip
men
t tha
t ca
n be
easil
y mad
e ava
ilabl
e to
large
gro
ups o
f farm
ers a
t rea
sona
ble c
ost.
The a
ction
s wou
ld co
nsist
of t
he fo
llowi
ng :
• Fo
rm a
mec
haniz
ation
core
team
• Co
nduc
t des
k and
field
rese
arch
( par
ticip
ation
in tr
ade f
airs a
nd o
n-sit
e visi
ts of
Indi
an p
artn
ers )
to id
entif
y app
ropr
iate
farm
mec
haniz
ation
tech
nolo
gies
• De
mon
strate
the i
dent
ified
mec
haniz
ation
equip
men
t at f
arms i
n co
llabo
ratio
n wi
th fa
rmer
s’ or
ganiz
ation
s, alo
ng w
ith
traini
ng•
Deve
lop
good
prac
tices
for t
he in
trodu
ction
of t
echn
olog
ies an
d eq
uipm
ent i
n th
e pul
ses s
ecto
r.Th
is ac
tivity
inten
ds to
dem
onstr
ate th
at th
ere ar
e affo
rdab
le tec
hnica
l sol
utio
ns th
at ca
n su
staina
bly l
ower
pro
ducti
on co
sts.
In or
der f
or it
not
to ra
ise p
rodu
ction
cost
it sh
ould
be d
evelo
ped
in pa
rallel
to 1
.1.1
.
2X
X•
Mec
haniz
ation
core
team
fo
rmed
• Pa
rticip
ation
in si
te vis
its•
At le
ast t
hree
tech
nolo
gies
id
entif
ied
Non-
gove
rnm
ent
orga
niza-
tions
/ Gov
ern-
men
tM
elkas
sa A
gri-
cultu
ral R
esea
rch
Cent
re,De
brez
eit A
gricu
l-tu
ral R
esea
rch
Cent
re, m
odel
farm
ers /
farm
ers’
orga
nizati
ons
56
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Stra
tegi
c ob
ject
ive
1 : B
oost
pro
duct
ivity
and
qua
lity
by u
sing
pub
lic a
nd m
arke
t-led
ince
ntiv
es.
Oper
atio
nal o
bjec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
2016
2017
2018
2019
2020
1.2
Expa
nd th
e pr
o-du
ctio
n of
puls
es.
1.2.
1 Inc
rease
pro
ducti
on th
roug
h inc
rease
d an
d res
pons
ible
use o
f pes
ticid
es, a
ltern
ative
wee
d co
ntro
l mec
hanis
ms a
nd
agro
nom
ic pr
actic
es. T
he ac
tions
for t
his ac
tivity
wou
ld co
nsist
of t
he fo
llowi
ng.
• Ide
ntify
, tes
t and
pro
mot
ing th
e use
of h
erbi
cides
that
affec
t chic
kpea
s.•
Prom
ote t
he u
se o
f Int
egrat
ed Pe
st M
anag
emen
t ( IP
M ) p
ractic
es to
cont
rol p
re- an
d po
st-ha
rvest
pests
and
dise
ases
by
traini
ng an
d ca
pacit
y-bu
ilding
.•
Ident
ify an
d pr
omot
ing to
ols a
nd m
achin
es th
at ca
n red
uce t
he co
st of
wee
ding
, harv
estin
g an
d th
reshin
g.•
Prom
ote t
he u
se o
f pes
ticid
es fo
r pes
t man
agem
ent.
• De
velo
p a p
lan to
facil
itate
farm
ers’
acce
ss to
pes
ticid
es. T
his p
lan co
uld
inclu
de so
me o
f the
follo
wing
actio
ns :
–M
ap o
ut th
e main
plag
ues a
nd d
iseas
es an
d th
e mos
t suit
able
pesti
cides
to ad
dres
s the
m ;
–Ide
ntify
soil
chara
cteris
tics a
nd th
e typ
e and
qua
ntity
of f
ertil
izers
and
the m
axim
um am
ount
of p
estic
ides
for
susta
inabl
e dev
elopm
ent o
f the
secto
r ; –
Deve
lop
a mec
hanis
m to
diss
emina
te inf
orm
ation
on
the r
espo
nsib
le us
e of p
estic
ides
amon
g far
mer
s, us
ing b
ulk
text m
essa
ges a
nd ra
dio.
Exp
lore
alter
nativ
e way
s to
mak
e farm
ers c
onsc
ious
of t
he im
porta
nce o
f res
pons
ible
use o
f pe
sticid
es.
Impr
oving
the c
apac
ity o
f the
secto
r to
deal
with
pes
ts is
inten
ded
to b
oost
the p
rodu
ction
of a
ll cu
rrent
pul
ses b
ut w
ill al
so
have
a sig
nifica
nt im
pact
on im
prov
ing th
e qua
lity o
f the
pul
ses (
oper
ation
al ob
jectiv
e 1.3
).
2X
XX
X•
At le
ast o
ne h
erbi
cide
iden
tified
, tes
ted an
d reg
istere
d•
A gr
oup
of tr
ainer
s trai
ned
in IP
M p
ractic
e•
Five e
xtens
ion
offic
ers a
nd
50 fa
rmer
s in
each
wor
eda
traine
d pe
r yea
r in
IPM
• On
e piec
e of e
quip
men
t id
entif
ied•
Num
ber o
f farm
ers u
sing
pest
man
agem
ent s
ystem
s•
Num
ber o
f IPM
tool
s int
rodu
ced
to fa
rmer
s
MoA
EIAR,
RAR
Is, B
oA,
FCA
TL III
pro
ject o
n ch
ickpe
aNo
pro
ject o
n pi
geon
pea
ICRI
SAT,
ITC
1.2.
2 Pil
ot a
crop
rota
tion
prog
ramm
e tha
t enc
ourag
es th
e use
of t
his ag
ricul
tural
prac
tice a
mon
g lo
cal f
armer
s. Th
e acti
ons
for t
his ac
tivity
cons
ist o
f the
follo
wing
.
• M
ap th
e reg
ions
and
the m
atchin
g cr
ops w
ith th
e hig
hest
poten
tial f
or cr
op ro
tatio
n. Th
e exa
ct cr
oppi
ng p
atter
n ca
n on
ly be
defi
ned
after
agro
nom
ic tes
ting
of th
e lan
d an
d lo
gisti
cal c
onsid
erati
ons h
ave b
een
taken
into
acco
unt,
e.g. s
uitab
le sto
rage.
• De
velo
p a c
rop
rotat
ion
pack
age a
nd p
ractic
e suit
able
to d
iffere
nt ag
roec
olog
ies. T
he p
acka
ge sh
ould
spec
ify a
grou
p of
pi
lot r
egio
ns.
• Se
lect t
he g
roup
of f
arms t
hat w
ill p
ilot t
he in
itiati
ve.
• As
sess
the r
esul
ts of
the p
ilot p
rojec
t.•
Decid
e on
wheth
er ex
tensio
n of
the p
ilot i
s des
irabl
e.Cr
op ro
tatio
n inv
olvin
g pu
lses i
s ben
eficia
l to
soil
struc
ture
and
stabi
lity.
Pulse
s add
nitr
ogen
and
also
a sig
nifica
nt am
ount
of
org
anic
resid
ues t
o th
e soi
l in
the f
orm
of r
oot b
iom
ass a
nd le
af lit
ter. R
oots
and
leaf l
itter,
bein
g ric
h in
nitro
gen,
facil
itate
the d
ecom
posit
ion
of cr
op re
sidue
s in
soil
and
increa
se m
icrob
ial ac
tivity
. This
activ
ity is
inten
ded
to h
ave a
n im
pact
on ra
is-ing
pro
ducti
vity.
2X
XX
• M
appi
ng o
f the
regi
ons w
ith
poten
tial f
or cr
op ro
tatio
n do
ne•
Num
ber o
f pac
kage
s de
velo
ped
• Pil
ot p
rojec
t com
plete
d
MoA
1.2.
3 Pil
ot a
prog
ramm
e of e
xpan
sion
of th
e pro
duct
ion
area
by i
nteg
rating
the p
rodu
ction
syste
ms o
f the
pul
ses a
nd th
e ce
real s
ecto
rs. Th
is ac
tivity
wou
ld in
clude
the f
ollo
wing
actio
ns.
• Inc
rease
the a
rea u
nder
pro
ducti
on b
y pro
mot
ing cr
op ro
tatio
n wi
th ch
ickpe
a and
inter
crop
ping
with
pig
eon
pea.
• Im
prov
e pro
ducti
vity b
y pro
viding
supp
lemen
tal ir
rigati
on, e
spec
ially
in se
mi-a
rid ar
eas.
Impr
ove h
arves
ting,
thres
hing
and
trans
porti
ng.
• Pr
omot
e pro
ducti
on o
f chic
kpea
and
pige
on p
ea in
non
-trad
ition
al are
as w
ith th
e pot
entia
l to
grow
thes
e cro
ps. T
he ‘D
esi’
varie
ty of
chick
pea i
s quit
e com
mon
, but
the ‘
Kabu
li’ o
ne is
new
to E
thio
pia.
Pigeo
n pe
as ar
e a re
lative
ly ne
w pr
oduc
t to
Eth
iopi
a. In
areas
like
Bec
ho W
oliso
, Lum
e Ada
ma a
nd Ts
ehay
, sev
eral
initia
tives
for p
rom
oting
chick
peas
are a
lread
y be
ing d
evelo
ped
and
shou
ld b
e tak
en in
to ac
coun
t.Th
is ac
tivity
wou
ld h
ave t
he ad
ditio
nal p
ositi
ve ef
fect o
f boo
sting
pro
ducti
on w
ithou
t inc
reasin
g th
e sur
face o
f lan
d de
dica
ted
to ag
ricul
tural
use
s. Th
ere is
a lin
k with
activ
ity 3
.2.1
on
envir
onm
ental
susta
inabi
lity.
1X
XX
X•
At le
ast 8
% in
crea
se in
pr
oduc
tion,
5 %
incr
ease
in
area p
er ye
ar fo
r chic
kpea
fro
m ye
ar th
ree o
nward
s•
At le
ast 1
,000
ha u
nder
pi
geon
pea
expo
rting
at le
ast
750
tons
EIAR
RARI
s, Bo
A, M
oA,
FCA,
ATA
TL III
on
chick
pea
No p
rojec
t on
pige
on p
eaIC
RISA
T, ITC
[ ROADMAP PLAN OF ACTION ]
57
Stra
tegi
c ob
ject
ive
1 : B
oost
pro
duct
ivity
and
qua
lity
by u
sing
pub
lic a
nd m
arke
t-led
ince
ntiv
es.
Oper
atio
nal o
bjec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
2016
2017
2018
2019
2020
1.2
Expa
nd th
e pr
o-du
ctio
n of
puls
es.
1.2.
4 Fa
st tra
ck th
e int
rodu
ction
of n
ew h
igh-
yield
ing p
ulse
see
d va
rietie
s in
the c
ount
ry. Th
is wo
uld
inclu
de th
e fol
lowi
ng
actio
ns.
• Ta
ke st
ock o
f exis
ting
regist
ered
varie
ties t
hat h
ave n
ot b
een
com
merc
ialize
d. M
oA h
as a
datab
ase o
f all
regist
ered
seed
s.•
Pilot
a pr
ivate
and /
or co
mm
unity
-bas
ed se
ed m
ultip
licati
on m
odel,
pref
erab
ly wi
th co
oper
ative
s tha
t hav
e the
ir ow
n far
ming
land
for s
eed
mul
tiplic
ation
. ICR
ISAT
coul
d als
o pl
ay a
role.
• Fa
cilita
te di
alogu
e am
ong
resea
rch
cent
res fo
r bas
ic se
eds,
seed
pro
duce
rs, se
ed u
sers,
pro
cess
ors a
nd ex
porte
rs.•
Share
bes
t prac
tices
from
with
in an
d ou
tside
the c
ount
ry th
at ha
ve w
orke
d.•
Expl
ore n
ew ty
pes o
f see
ds. T
rials
will
be co
nduc
ted b
y res
earc
h ins
titut
es.
• De
velo
p a n
umbe
r of d
emon
strati
on p
lots
for f
armer
s to
unde
rstan
d th
e ben
efits
of h
ybrid
/ hig
her y
ieldi
ng va
rietie
s.•
Facil
itate
inter
actio
n be
twee
n se
ed co
mpa
nies,
expo
rters,
farm
ers a
nd IC
RISA
T.•
Intro
duce
, tes
t and
relea
se / r
egist
er m
arket-
dem
ande
d leg
ume v
arieti
es.
• M
ultip
ly br
eede
r, ba
sic, p
re-ba
sic an
d ce
rtifie
d se
eds o
f the
se le
gum
e vari
eties
.Th
is ac
tivity
is in
tende
d to
pro
vide h
igh-
yield
ing, m
arket-
dem
and-
drive
n im
prov
ed va
rietie
s and
inpu
ts of
targ
eted
pulse
co
mm
oditi
es fo
r sm
allho
lder
s.
3X
X•
Amou
nt o
f see
d su
pply
and
num
ber o
f vari
eties
• Pil
ot p
rogr
amm
e con
ducte
d
MoA
Agric
ultu
ral R
e-se
arch
Instit
utes
EIAR,
coop
-er
ative
s, se
ed
enter
prise
s ( ES
E,
regio
nal s
eed
enter
prise
s )Ed
get S
eed
Pro-
ducti
on an
d M
ar-ke
ting
Unio
n
ICRI
SAT
1.2.
5 Inc
rease
pro
ducti
on o
f pul
ses t
hrou
gh b
etter
use
of a
vaila
ble a
nd / o
r affo
rdab
le m
echa
niza
tion.
The a
ction
s for
this
activ
ity co
nsist
of t
he fo
llowi
ng.
• Co
nduc
t an
asse
ssm
ent o
f farm
ers’
mec
haniz
ation
nee
ds fo
r the
nex
t five
years
. Em
phas
is sh
ould
be p
laced
on
irrig
ation
, lig
ht in
frastr
uctu
re an
d eq
uipm
ent t
hat c
an b
e use
d fo
r pul
ses a
nd o
ther
crop
s, su
ch as
tool
s and
mac
hines
that
reduc
e th
e cos
t of w
eedi
ng, p
lantin
g, h
arves
ting
and
thres
hing.
• Co
nduc
t an
asse
ssm
ent o
f ass
embl
ers,
and
asse
mbl
ers’
mec
haniz
ation
nee
ds fo
r the
nex
t five
years
( i.e.
pac
kagi
ng
equip
men
t ).•
Defin
e a p
lan to
ensu
re th
e ava
ilabi
lity o
f spa
re pa
rts an
d aff
orda
ble s
uppo
rt se
rvice
s.•
Bring
Indi
an eq
uipm
ent m
anuf
actu
rers a
nd d
istrib
uter
s in
the r
egio
n fac
e to
face w
ith fa
rmer
s.•
Expl
ore o
ppor
tunit
ies fr
om so
urce
s alte
rnati
ve to
Indi
a tha
t can
offe
r sim
ilar v
alue f
or m
oney
( i.e.
Braz
il, It
aly, J
apan
, Chin
a an
d Vi
et Na
m ).
This
activ
ity is
inten
ded
to p
rom
ote t
he u
se o
f mor
e mod
ern
mec
haniz
ation
and
to co
nnec
t pot
entia
l ben
eficia
ries o
f equ
ip-
men
t to
its p
rovid
ers.
3X
XX
• As
sess
men
t on
mec
haniz
ation
com
plete
d•
Asse
ssm
ent o
n pa
ckag
ing
com
plete
d•
Plan
for p
rovis
ion
of sp
are
parts
dev
elope
d•
Visit
from
Indi
an d
istrib
utor
s or
ganiz
ed
EIAR
MoA
.
ITC
1.2.
6 Inc
rease
pro
ducti
on th
roug
h be
tter u
se o
f bio
ferti
lizer
s an
d rel
ated
input
s and
agro
nom
ic pr
actic
es. T
he ac
tions
for
this
activ
ity w
ill in
volve
the f
ollo
wing
.
• M
ake a
n inv
ento
ry of
the m
ost c
omm
on ty
pes o
f fer
tilize
rs cu
rrent
ly us
ed. F
ertil
izers
shou
ld b
e gro
uped
acco
rding
to tw
o br
oad
categ
ories
: org
anic
and
non-
orga
nic.
• Te
st th
e pro
perti
es ( i
.e. p
rodu
ctivit
y, im
pact
on th
e env
ironm
ent )
of th
e ide
ntifi
ed fe
rtiliz
ers a
gains
t affo
rdab
le alt
erna
tives
in
the m
arket.
This
study
shou
ld b
e don
e tak
ing in
to co
nsid
erati
on th
e soi
l diff
erenc
es am
ong
the d
iffere
nt p
ulse
gro
wing
reg
ions
.•
Docu
men
t the
less
ons f
rom
the p
revio
us p
oint
s and
mak
e the
main
conc
lusio
ns av
ailab
le to
farm
ers a
nd in
put p
rovid
ers
in th
e valu
e cha
in.•
Prom
ote t
he u
se o
f the
iden
tified
ferti
lizer
s thr
ough
a pi
lot e
xerc
ise in
volvi
ng a
limite
d nu
mbe
r of f
armer
s.•
Deve
lop
a plan
to su
pply
the f
arming
com
mun
ity w
ith th
e req
uired
ferti
lizer
s.Th
is ac
tivity
inten
ds to
incr
ease
pro
ducti
on th
roug
h m
ore e
ffecti
ve u
se o
f fer
tilize
rs. A
lthou
gh in
the s
hort
term
it co
uld
have
a c
ost i
mpl
icatio
n, in
the m
edium
term
it w
ill al
so co
ntrib
ute t
o lo
werin
g th
e ave
rage p
rodu
ction
cost
of p
ulse
s ( op
erati
onal
objec
tive 1
.2 ).
2X
XX
• Inv
ento
ry of
ferti
lizer
s use
d co
mpl
eted
• At
leas
t five
ferti
lizer
s id
entif
ied, t
ested
and
regist
ered
• A
grou
p of
train
ers t
raine
d in
biof
ertil
izer p
ractic
es•
Five e
xtens
ion
offic
ers a
nd
50 fa
rmer
s in
each
wor
eda
traine
d pe
r yea
r•
One p
iece o
f equ
ipm
ent
iden
tified
• Nu
mbe
r of f
armer
s usin
g bi
ofer
tilize
rs•
A pl
an to
intro
duce
ferti
lizer
s de
velo
ped
MoA
EIAR ;
RARI
s, Bo
A, F
CA
TL III
on
chick
pea
No p
rojec
t on
pige
on p
eaIC
RISA
T, ITC
58
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Stra
tegi
c ob
ject
ive
1 : B
oost
pro
duct
ivity
and
qua
lity
by u
sing
pub
lic a
nd m
arke
t-led
ince
ntiv
es.
Oper
atio
nal o
bjec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
2016
2017
2018
2019
2020
1.3
Impr
ove
the
over
-all
qua
lity o
f the
puls
es
that
are
pro
duce
d.
1.3.
1 De
velo
p a q
uality
sta
ndar
ds g
ap m
ap fo
r Eth
iopi
an p
ulse
s. Th
e acti
ons f
or th
is ac
tivity
wou
ld co
nsist
of t
he fo
llowi
ng.
• Cr
eate
aware
ness
of q
ualit
y stan
dard
s am
ong
farm
ers.
• Ide
ntify
the g
aps i
n th
e qua
lity o
f pul
ses f
or ex
port,
e.g.
one
of t
he m
ajor p
robl
ems i
n qu
ality
has b
een
the s
ize o
f ch
ickpe
as. T
he m
ajor c
onsu
ming
mark
ets lo
ok fo
r grai
n siz
e of 8
-10
mill
imetr
es in
the ‘
Desi’
varie
ty ; h
owev
er, E
thio
pian
ch
ickpe
as ar
e a b
it sm
aller.
Also
, the
colo
ur o
f pul
ses i
s ofte
n a q
ualit
y im
pedi
men
t.•
Benc
hmark
exist
ing q
ualit
y aga
inst t
he d
esire
d qu
ality
in 1.
3.2.
• De
velo
p co
llabo
ratio
n be
twee
n EN
AO an
d Ind
ian in
stitu
tions
for m
utua
l rec
ognit
ion.
• W
ork w
ith E
NAO
to d
evelo
p a n
etwor
k of m
utua
l rec
ognit
ion
agree
men
ts an
d co
nfor
mity
asse
ssm
ent b
odies
.Th
is ac
tivity
is in
tende
d to
focu
s on
quali
ty iss
ues i
n pr
oduc
tion.
1X
X•
Num
ber o
f doc
umen
tsEIA
REP
OSPE
A,EN
AO
1.3.
2 Pr
omot
e the
use
of i
mpr
oved
var
ieties
of s
eeds
for p
rodu
ction
per
mark
et req
uirem
ent.
The a
ction
s for
this
activ
ity
will
cons
ist o
f :
• Ide
ntify
ing im
prov
ed va
rietie
s for
qua
lity
• Int
rodu
cing
and
adop
ting
the i
mpr
oved
varie
ties
• M
ultip
licati
on an
d sc
aling
up
of th
e im
prov
ed va
rietie
s•
Map
ping
out
seed
varie
ties t
o de
stina
tion
mark
ets•
Base
d on
the r
esul
ts of
1.3
.1, m
atchin
g th
e qua
lity g
aps t
o th
e mos
t suit
able
seed
s per
regi
on.
The m
arket
requir
emen
t refe
rred
to is
relat
ed to
varie
ties t
hat t
he m
arkets
pref
er. F
or ex
ampl
e, in
India
the v
ariety
of c
hickp
ea
that
is pr
eferre
d is
a bit
bigg
er in
size
and
mor
e yell
ow in
colo
ur.
This
activ
ity is
inten
ded
to fo
cus o
n qu
ality
issue
s in
prod
uctio
n.
2X
XX
X•
Num
ber o
f vari
eties
int
rodu
ced
and
prom
oted
MoA
EIAR,
seed
s en-
terpr
ises
ITC–S
ITA,
ITC
1.3.
3 De
velo
p an
d pr
omot
e qua
lity s
tand
ard
requ
irem
ents
by t
arget
mark
et. Th
e acti
ons f
or th
is ac
tivity
cons
ist o
f :
• Fo
rming
clus
ters o
f pro
ducti
on ar
eas t
argeti
ng sp
ecifi
c vari
ety an
d qu
ality
as re
quire
d by
the t
arget
mark
et•
Deve
lopi
ng an
d pr
omot
ing cl
eanin
g an
d gr
ading
tech
nolo
gies
to m
eet t
he g
rades
and
stand
ards o
f targ
et m
arkets
• Inc
entiv
izing
pro
duce
rs to
pro
duce
qua
lity p
ulse
s by l
inking
pur
chas
e pric
e with
qua
lity
• Tra
ining
exten
sion
offic
ers a
nd b
uyer
s on
grad
es an
d sta
ndard
s•
Deve
lopi
ng a
mod
ule o
n int
erna
tiona
l qua
lity s
tanda
rds f
or p
ulse
s•
Orga
nizing
a tra
ining
wor
ksho
p on
qua
lity s
tanda
rds.
A be
nchm
arking
stud
y tha
t will
dev
elop
a matr
ix of
the q
ualit
y req
uired
and
prod
uced
is n
eede
d.
3X
XX
X•
Expo
rt rej
ectio
ns re
duce
d to
5 %
from
the c
urren
t 12 %
EIAR
RARI
s, Bo
A, M
oA,
ATA,
Ethio
pian
Stan
d-ard
s Age
ncy,
Ethio
pian
Con
-fo
rmity
Ass
ess-
men
t Ent
erpr
ise,
EPOS
PEA
TL III
on
chick
pea
No p
rojec
t on
pige
on p
eaIC
RISA
T, ITC
1.3.
4 De
velo
p pr
e-ha
rves
t cap
aciti
es fo
r farm
ers,
trade
rs an
d ex
porte
rs. Th
e acti
ons f
or th
is ac
tivity
cons
ist o
f the
follo
wing
• Tra
in 10
0 m
odel
farm
ers f
rom
each
clus
ter in
1.1
on
pre-
harve
st, p
lantin
g, h
andl
ing an
d m
anag
emen
t agr
o-tec
hniq
ues.
• Tra
in de
velo
pmen
t age
nts,
agric
ultu
ral ex
perts
and
coop
erati
ve ex
perts
from
the F
armer
s’ Co
oper
ative
Unio
n.•
Raise
aware
ness
amon
g se
ed p
rodu
cers
and
farm
ers o
n th
e nee
d to
pro
perly
sort
seed
s prio
r to
plan
ting.
• Ide
ntify
the v
arieti
es th
at req
uire v
alue a
dditi
on ( c
olou
r sor
ting,
size
sorti
ng, e
tc. ).
Atten
tion
shou
ld b
e paid
to h
igh-
quali
ty pr
oduc
ts wi
th a
prem
ium p
rice.
• Or
ganiz
e a kn
owled
ge-s
harin
g an
d ex
posu
re vis
it to
Indi
a for
farm
ers,
trade
rs an
d ex
porte
rs.Th
e frag
men
ted n
ature
of th
e farm
ing sy
stem
mak
es it
diff
icult
for f
armer
s to
acce
ss kn
owled
ge an
d ex
tensio
n se
rvice
s th
at wo
uld
impr
ove t
heir
techn
ique
s. Th
is ac
tivity
aim
s to
mak
e the
nec
essa
ry tra
ining
avail
able.
In ad
ditio
n, th
e acti
vity i
s ex
pecte
d to
hav
e an
impa
ct on
redu
cing
mark
et de
faults
from
buy
ers a
nd su
pplie
rs th
at cu
rrent
ly oc
cur a
t the
mom
ent o
f de
liver
y due
to ad
ulter
ation
of p
ulse
s.
2X
XX
XX
• Nu
mbe
r of t
raine
es•
Num
ber o
f exp
osur
e visi
tsM
oAEIA
R, E
POSP
EA
[ ROADMAP PLAN OF ACTION ]
59
Stra
tegi
c ob
ject
ive
1 : B
oost
pro
duct
ivity
and
qua
lity
by u
sing
pub
lic a
nd m
arke
t-led
ince
ntiv
es.
Oper
atio
nal o
bjec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
2016
2017
2018
2019
2020
1.3
Impr
ove
the
over
-all
qua
lity o
f the
puls
es
that
are
pro
duce
d.
1.3.
5 St
rengt
hen
the c
apac
ity o
f farm
ers a
nd as
sem
bler
s to
deal
effec
tively
with
the c
halle
nges
asso
ciated
with
the p
osth
ar-
vest
link
ages
of t
he va
lue c
hain.
The a
ction
s for
this
activ
ity co
nsist
of t
he fo
llowi
ng.
• Pr
omot
e the
use
of e
xistin
g sto
rage i
nfras
tructu
re an
d sy
stem
s. Im
prop
er st
orag
e may
lead
to in
festat
ion
and
loss
due
to
moi
sture.
Pro
per v
entil
ation
, tem
perat
ure a
nd co
ntro
lling
expo
sure
to su
nlig
ht ar
e im
porta
nt as
pects
that
need
to b
e m
aintai
ned
in de
velo
ping
stor
age i
nfras
tructu
re. S
anita
tion
of th
e prem
ises,
expo
sure
to p
ests,
and
rode
nt m
anag
emen
t are
criti
cal.
• De
velo
p ad
ditio
nal s
torag
e cap
acity
whe
re ne
eded
. This
will
cons
ider
the r
ental
of a
fford
able
wareh
ouse
s und
er co
st-sh
aring
sche
mes
and
publ
ic–pr
ivate
partn
ersh
ip co
oper
ation
stru
ctures
. For
exam
ple,
a pilo
t ware
hous
e at p
rimary
co
oper
ative
s / un
ions
( cem
ented
floo
r and
corru
gated
iron
wall
s ).
• Pr
ovid
e cap
acity
-buil
ding
on
posth
arves
t man
agem
ent t
echn
ique
s for
farm
ers a
nd ag
greg
ators.
Train
farm
ers o
n sto
rage,
and
coop
erati
ves /
unio
ns o
n wa
rehou
se m
anag
emen
t. Ex
porte
rs an
d pr
oces
sors
shou
ld al
so ta
ke p
art i
n th
is tra
ining
. This
wo
uld
inclu
de, a
mon
g ot
her a
reas,
pre-
clean
ing m
achin
ery a
nd th
e use
of g
rading
mac
hiner
y to
reduc
e im
purit
ies.
• Pr
ovid
e effi
cient
cont
rol o
f sto
rage p
ests.
Inse
cts an
d m
icroo
rgan
isms d
amag
e pul
ses d
uring
their
stor
age.
The
recom
men
ded
storag
e tec
hniq
ues i
mpl
y tha
t the
pul
ses m
ust b
e sto
red b
elow
25 d
egree
s Cels
ius an
d ab
ove t
he fr
eezin
g po
int.
This
activ
ity is
inten
ded
to fo
cus o
n qu
ality
issue
s tha
t orig
inate
posth
arves
t. Th
ere is
a co
mm
on u
nder
stand
ing am
ong
the
stake
hold
ers t
hat f
armer
s can
assu
me t
he p
osth
arves
t acti
vities
, pro
vided
the p
rice o
f the
pul
ses i
s hig
h en
ough
.
1X
XX
X•
Num
ber o
f pos
tharv
est
hand
ling
struc
tures
• Nu
mbe
r of t
raine
es•
Posth
arves
t los
ses a
re red
uced
to 1
5 % fr
om th
e cu
rrent
20 %
–30 %
MoA
Priva
te su
pplie
rs,EIA
R, R
ARIs,
BoA
, M
oA, F
CA, A
TANe
ther
lands
De
velo
pmen
t Or-
ganiz
ation
( SNV
) ( d
elive
r trai
ning )
TL III
on
chick
pea
No p
rojec
t on
pige
on p
eaIC
RISA
T, ITC
1.3.
6 Pr
omot
e the
use
of n
ew te
chno
logi
es an
d qu
ality
cont
rols.
This
activ
ity w
ould
requ
ire th
e fol
lowi
ng ac
tions
:
• As
sess
tech
nolo
gica
l nee
ds•
Diag
nosti
c of i
nnov
ation
capa
city
• Pr
omot
ion
of p
rodu
ction
to q
ualit
y ass
uran
ce an
d sp
ecifi
catio
ns th
roug
h m
ass m
edia
and
othe
r com
mun
icatio
n m
ateria
ls.Th
is ac
tivity
is in
tende
d to
focu
s on
the l
ong-
term
dete
rmina
nts o
f pro
ducti
vity.
3X
XX
XX
• Nu
mbe
r of p
rom
otio
nal
mate
rials
prod
uced
, air
time
for p
rom
otio
n co
vered
EIAR
MoA
, bro
adca
st-ing
servi
ces
60
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Stra
tegi
c ob
ject
ive
2 : Im
prov
e ex
port
com
petit
iven
ess
by s
treng
then
ing
the
conn
ectio
n be
twee
n pr
oduc
ers
and
the
inte
rmed
iarie
s in
the
valu
e ch
ain.
Oper
atio
nal
objec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
20162017201820192020
2.1
Stre
ngth
en th
e or
gani
zatio
n of
the
sect
or to
ens
ure
the
exch
ange
of
info
rmat
ion
betw
een
prod
ucer
s an
d in
tern
atio
nal
mar
kets
.
2.1.
1 Es
tablis
h a n
atio
nal p
ulses
plat
form
that
acts
as th
e foc
al po
int o
f the
secto
r. Th
e main
func
tions
of t
he p
latfo
rm ar
e to
repre-
sent
the i
ntere
sts o
f the
secto
r and
to co
ordi
nate
all th
e effo
rts o
f the
stak
ehol
ders
in th
e valu
e cha
in. Th
e plat
form
shou
ld co
mpr
ise
repres
entat
ives f
rom
bot
h th
e pub
lic an
d th
e priv
ate se
ctor.
Its ac
tions
shou
ld b
e the
follo
wing
.
• De
fine t
he re
latio
nship
betw
een
EPOS
PEA
and
the p
latfo
rm. I
n pr
incip
le, th
e plat
form
shou
ld b
e spo
nsor
ed b
y EPO
SPEA
( i.e.
fac
ilitat
ion
and
orga
nizati
on o
f mee
tings
).•
Learn
from
the e
xper
ience
of t
he h
oney
secto
r to
crea
te a s
takeh
olde
r plat
form
whe
re th
e stak
ehol
ders
addr
ess p
olicy
issu
es an
d sh
are b
est p
ractic
es in
a sim
ilar p
latfo
rm. S
NV an
d ITC
also
hav
e am
ple e
xper
ience
s on
simila
r typ
es o
f bod
ies. B
uild
on ex
isting
ini
tiativ
es an
d ad
apt t
hem
to th
e pul
ses s
ecto
r.•
Gene
rate a
nd d
issem
inate
com
petit
ive in
tellig
ence
.•
Estab
lish
a tas
k for
ce w
ithin
MoA
that
focu
ses o
n bo
ostin
g th
e pro
ducti
on o
f pul
ses o
n th
e gro
und.
A si
mila
r init
iative
alrea
dy
exist
s at t
he fe
deral
leve
l. Th
is tas
k for
ce sh
ould
act a
t reg
iona
l lev
el.•
Deter
mine
effec
tive w
ays t
o pr
omot
e the
secto
r and
to in
fluen
ce re
levan
t pul
ses p
olicy
.Th
e nati
onal
pulse
s plat
form
shou
ld p
rom
ote t
he d
evelo
pmen
t of t
he p
ulse
s sec
tor i
n Et
hiopi
a and
abro
ad. F
undi
ng re
quire
d : m
eetin
g fac
ilitie
s tha
t sho
uld
be su
ppor
ted b
y its
mem
bers.
The i
nstit
utio
ns fr
om w
hich
the p
artic
ipan
ts or
igina
te m
ust b
e will
ing to
share
the
costs
.
1X
XX
• Es
tablis
hmen
t of
the n
ation
al pu
lses
platf
orm
• Co
mpo
sitio
n of
the
publ
ic an
d pr
ivate
secto
r mem
bers
deter
mine
d•
Defin
ition
of c
oncr
ete
gove
rnan
ce ru
les•
Defin
ition
of s
pecif
ic ter
ms o
f refe
rence
for
its m
embe
rs
EPOS
PEA
ATA,
EIA
R, M
oA,
ECX,
all o
ther
relev
ant
stake
hold
ers s
uch
as re
searc
hers,
pro
-du
cers,
trade
rs, co
unty
gov-
ernm
ents
and
othe
r rep
resen
tative
s fro
m
the p
rivate
secto
r
Inter
natio
nal d
o-no
r age
ncies
ITC–S
ITA te
amSN
V
2.1.
2 Es
tablis
h an
Inter
net-b
ased
know
ledge
plat
form
that
prov
ides
real-
time a
nd u
p-to
-date
info
rmat
ion
relev
ant t
o th
e stak
ehol
ders
of th
e pul
ses v
alue c
hain.
The i
nfor
mati
on sh
ould
be m
ade a
cces
sible
to al
l stak
ehol
ders.
The f
ollo
wing
wou
ld b
e the
mos
t im
med
i-ate
actio
ns.
• Ide
ntify
the d
ata an
d inf
orm
ation
al ne
eds o
f the
diff
erent
valu
e cha
in ac
tors.
Info
rmati
on o
n do
mes
tic an
d int
erna
tiona
l pric
es
for t
he d
iffere
nt ty
pes o
f pul
ses s
houl
d be
mad
e ava
ilabl
e. In
addi
tion,
relev
ant i
nfor
mati
on o
n de
man
d tre
nds,
mark
et ou
tlook
, ex
porte
d qu
antit
y, inp
uts,
requir
emen
ts, et
c. co
uld
also
be m
ade a
vaila
ble.
• De
term
ine th
e mos
t reli
able
sour
ces f
or th
e inf
orm
ation
requ
ired.
• De
cide t
he m
ost d
esira
ble w
ay to
mak
e the
info
rmati
on av
ailab
le, i.
e. se
tting
up
adeq
uate
text m
essa
ge an
d int
erac
tive v
oice
res
pons
e inf
orm
ation
-sha
ring
syste
ms.
• Co
ordi
nate
this
activ
ity w
ith E
POSP
EA to
ensu
re th
at its
curre
nt w
eb p
ortal
is u
pgrad
ed fo
r effe
ctive
info
rmati
on d
issem
inatio
n.•
Enha
nce t
he ca
pacit
y of t
he re
levan
t org
aniza
tions
( EPO
SPEA
and
othe
rs ) t
o m
anag
e and
main
tain
the i
nfor
mati
on sy
stem
.•
Capa
citate
the u
sers
of th
e plat
form
on
the u
se o
f the
info
rmati
on, e
.g. c
oach
pro
cess
ors a
nd fa
rmer
s’ or
ganiz
ation
s on
setti
ng a
trans
paren
t pric
ing m
echa
nism
.Th
is ac
tivity
will
enha
nce t
he ca
pacit
y of v
alue c
hain
acto
rs to
acce
ss in
form
ation
and
enha
nce t
ransp
arenc
y in
the s
ecto
r. Inf
orm
a-tio
n fro
m 2
.2 co
uld
also
be ev
entu
ally d
issem
inated
und
er th
is ac
tivity
.
3X
X•
Estab
lishm
ent o
f the
sy
stem
• At
leas
t 2,0
00
bene
ficiar
ies
acce
ssing
the
infor
mati
on fr
om th
e pl
atfor
m•
One w
eb p
ortal
up
grad
ed
Mini
stry o
f For
eign
Affai
rs ( tr
ade a
t-tac
hés )
EPOS
PEA,
ATA
, EIA
R, M
oA, B
oA,
Ethio
pian
Cha
mbe
r of
Com
merc
e & S
ec-
toral
Ass
ociat
ions
,EC
X, F
CA
Inter
natio
nal d
o-no
r age
ncies
ITC
2.1.
3 Pr
epare
a vis
ual d
ictio
nary
of p
ulse
s for
the b
enefi
t of a
ll th
e stak
ehol
ders
in th
e valu
e cha
in. Th
e dict
iona
ry wi
ll pr
esen
t pic-
tures
of t
he d
iffere
nt ty
pes o
f pul
ses a
ccom
panie
d by
their
mos
t com
mon
nam
es in
diff
erent
coun
tries
. This
will
inclu
de th
e scie
ntifi
c na
me a
s well
as th
e com
mon
nam
e in
diffe
rent l
angu
ages
. The
actio
ns fo
r this
activ
ity w
ill co
nsist
of :
• Pa
rtner
ing w
ith a
relev
ant a
cade
mic
instit
utio
n th
at ca
n ca
rry o
ut th
e bul
k of t
he ta
sk•
Obtai
ning
pictu
res o
f the
diff
erent
type
s of p
ulse
s tha
t will
be i
nclu
ded
in th
e dict
iona
ry•
Obtai
ning
the s
cient
ific n
ames
as w
ell as
their
mos
t com
mon
nam
e in
Engl
ish•
Obtai
ning
equiv
alent
nam
es in
oth
er la
ngua
ges u
sed
by tr
ading
par
tner
s•
Prod
ucing
a sh
ort p
ublic
ation
with
the r
esul
ts an
d di
ssem
inatin
g it
amon
g sta
keho
lder
s.Th
is ac
tivity
aim
s to
prov
ide a
prac
tical
solu
tion
to a
frequ
ent p
robl
em o
f tho
se in
the v
alue c
hain
with
som
e int
erna
tiona
l exp
osur
e. Di
scus
sions
betw
een
expo
rters,
inve
stors,
neg
otiat
ors,
etc. v
ery o
ften
suffe
r fro
m a
lack o
f a co
mm
on u
nder
stand
ing o
f the
pro
duct
at ha
nd.
1X
• Di
ction
ary p
ublis
hed
Colla
borat
ion
be-
twee
n EP
OSPE
A, a
relev
ant a
cade
mic
instit
utio
n ( to
be d
e-ter
mine
d ) an
d EIA
R.
Ident
ified
acad
emic
instit
utio
n’s S
choo
ls of
Lang
uage
s, Tra
de
[ ROADMAP PLAN OF ACTION ]
61
Stra
tegi
c ob
ject
ive
2 : Im
prov
e ex
port
com
petit
iven
ess
by s
treng
then
ing
the
conn
ectio
n be
twee
n pr
oduc
ers
and
the
inte
rmed
iarie
s in
the
valu
e ch
ain.
Oper
atio
nal
objec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
20162017201820192020
2.1
Stre
ngth
en th
e or
gani
zatio
n of
the
sect
or to
ens
ure
the
exch
ange
of
info
rmat
ion
betw
een
prod
ucer
s an
d in
tern
atio
nal
mar
kets
.
2.1.
4 De
velo
p an
d pi
lot e
ffecti
ve in
form
ation
exch
ange
and
work
ing
mod
alitie
s be
twee
n far
mer
s, pr
oces
sors
and
expo
rters
in th
e va
lue c
hain.
The a
ction
s will
be t
he fo
llowi
ng.
• De
sign
and
pilo
t an
infor
mati
on ex
chan
ge m
echa
nism
to al
ign
the p
rice e
xpec
tatio
ns o
f farm
ers,
asse
mbl
ers,
proc
esso
rs an
d ex
porte
rs.•
Ident
ify th
e pul
se va
rietie
s tha
t are
dem
ande
d in
inter
natio
nal m
arkets
( Eur
ope,
India,
Chin
a, etc
. ) an
d are
pref
erred
by E
thio
pian
pr
oduc
ers a
nd ex
porte
rs. Th
e majo
r pul
ses t
hat h
ave a
n inc
reasin
g m
arket
share
and
are p
rodu
ced
in Et
hiopi
a are
chick
peas
, len
tils,
dry p
eas a
nd p
igeo
n pe
as.
• Or
ganiz
e a jo
int m
issio
n to
targ
et m
arkets
( the
team
shou
ld in
clude
rese
arch
instit
utes
, farm
ers a
nd ex
porte
rs ).
Trade
miss
ions
sh
ould
be o
rgan
ized
on b
oth
sides
– vi
siting
buy
ers a
nd ex
porte
rs.•
Deve
lop
a cos
t-sha
ring
sche
me f
or co
mpa
nies t
o pi
tch in
for t
estin
g an
d se
ed m
ultip
licati
on co
sts.
This
activ
ity in
tends
to al
ign
the e
xpec
tatio
ns o
f farm
ers a
nd ex
porte
rs by
pilo
ting
a see
d m
ultip
licati
on m
echa
nism
of s
electe
d va
rie-
ties o
f pul
ses.
There
is a
link t
o 1.
1.2,
whic
h de
als w
ith d
evelo
ping
effec
tive s
eed
mul
tiplic
ation
sche
mes
.
2X
X•
Infor
mati
on ex
chan
ge
mec
hanis
m cr
eated
• Tra
de m
issio
ns
cond
ucted
EPOS
PEA
2.1.
5 Di
scus
s with
ECX
and
all th
e rele
vant
stak
ehol
ders
the p
ossib
ility
of in
cludi
ng p
ulse
s und
er th
e ECX
trad
ing
umbr
ella.
The a
c-tio
ns fo
r this
activ
ity w
ill co
nsist
of :
• An
alysin
g th
e pot
entia
l im
pact
that
this
solu
tion
woul
d ha
ve o
n red
ucing
of t
he n
umbe
r of a
ctors
in th
e valu
e cha
in.•
Disc
ussin
g th
e pot
entia
l nec
essa
ry ex
pans
ion
and
stren
gthe
ning
of E
CX to
dea
l with
pul
ses.
• Bu
ilding
a co
nsen
sus a
mon
g sta
keho
lder
s.•
Deve
lopi
ng an
actio
n pl
an w
ith sp
ecifi
c tim
eline
s.•
Spon
sorin
g th
e nec
essa
ry leg
al ch
ange
s.Th
is ac
tivity
is in
tende
d to
pro
vide t
ransp
arenc
y to
prici
ng p
ractic
es.
2X
• Th
e pos
sibili
ty th
at m
ajor e
xpor
ters’
trade
thro
ugh
ECX
is an
alyse
d
ECX
Mini
stry o
f Trad
eITC
2.1.
6 Tra
in far
mer
s, far
mer
s’ or
ganiz
ation
s and
asse
mbl
ers o
n th
e use
of c
ontra
ct fa
rmin
g an
d sim
ilar c
ontra
ctual
arran
gem
ents
to
avoi
d m
arket
defau
lts an
d to
strea
mlin
e the
num
ber o
f int
erm
ediar
ies in
the p
ulse
s sec
tor.
The a
ction
s for
this
activ
ity w
ill co
nsist
of
the f
ollo
wing
.
• As
sess
men
t of t
he in
cent
ives f
or al
l par
ties t
o de
fault
on co
ntrac
ts un
der e
xistin
g co
ntrac
tual
prac
tices
.•
Analy
sis o
f alte
rnati
ve co
ntrac
tual
solu
tions
avail
able
that
woul
d ad
dres
s defa
ult i
ssue
s.•
Train
a gro
up o
f farm
ers,
asse
mbl
ers a
nd ex
porte
rs to
test
cont
ractin
g un
der n
ew fo
rms o
f con
tracts
. Par
ticul
ar att
entio
n wi
ll be
pa
id to
defa
ults
in qu
ality
or sp
ecifi
catio
ns o
f pul
ses (
colo
ur so
rting
in re
d kid
ney b
eans
, size
sorti
ng o
f chic
kpea
s, qu
ality
seed
s ).
• Pil
ot th
e con
tract
farm
ing sc
hem
es in
selec
ted co
oper
ative
s. Le
gal c
ouns
el to
be p
rovid
ed.
• Se
t up
an ag
rono
mic
team
for e
ffecti
ve fo
llow-
up o
f the
train
ing.
• Pil
ot a
trial
cont
ract f
arming
agree
men
t betw
een
a gro
up o
f farm
ers,
an ex
porte
r and
Indi
an im
porte
rs.Th
is ac
tivity
inten
ds to
ensu
re th
e rul
e of l
aw in
the s
ecto
r and
to p
repare
a co
mm
on p
ositi
on o
n alt
erna
tive i
nter
med
iatio
n m
ethod
s. It
woul
d ha
ve th
e add
ition
al be
nefit
of l
evell
ing th
e play
ing fi
eld fo
r for
eign
inves
tors.
3X
XX
• Fa
rmer
s trai
ned
• Pil
ot p
rogr
amm
e co
nduc
ted
Coop
erati
ves
Unive
rsity
( law
facul
ty )
ITC–S
ITA
2.2
Impr
ove
the
capa
city
of th
e se
ctor
to e
nter
new
m
arke
ts a
nd to
re
main
com
petit
ive
in e
xistin
g on
es.
2.2.
1 Fa
cilita
te ac
cess
to fi
nanc
e fo
r pro
cess
ors f
or in
terna
tiona
l mark
ets an
d ex
porte
rs th
roug
h th
e use
of m
arket
incen
tives
. The
ac
tions
for t
his ac
tivity
will
inclu
de th
e fol
lowi
ng el
emen
ts.
• Se
t up
a fun
d fo
r exp
orter
s. Th
ere w
ill b
e a fu
nd se
t up
thro
ugh
dono
r ass
istan
ce p
lus a
bud
getar
y allo
catio
n fro
m G
over
nmen
t to
pro
vide r
efina
ncing
and
subs
idize
d ac
cess
to fi
nanc
e. Th
is co
mpo
nent
will
be i
mpl
emen
ted th
roug
h pr
e-id
entif
ied p
ublic
and
priva
te ba
nks.
The a
ssist
ance
will
be f
or p
rovid
ing cr
edit
guara
ntee
s and
refin
ancin
g fo
r loa
ns fo
r inp
uts.
• De
velo
p th
e cap
acity
of p
roce
ssor
s to
impr
ove t
echn
olog
y tran
sfer t
hrou
gh th
e pro
visio
n of
acqu
iring
pro
cess
ing m
achin
ery f
rom
Ind
ia th
roug
h lin
es o
f cred
it fro
m th
e Exp
ort–
Impo
rt Ba
nk o
f Ind
ia.•
Prom
ote p
ulse
s as a
strat
egic
crop
and
intro
duce
easy
term
s of f
inanc
e for
expo
rters,
inclu
ding
estab
lishm
ent o
f an
expo
rt de
velo
pmen
t fun
d.Fa
cilita
ting
expo
rters’
acce
ss to
fina
nce s
houl
d he
lp th
em an
d th
ose l
inkag
es o
f the
valu
e cha
in clo
sest
to in
terna
tiona
l mark
ets to
co
pe b
etter
with
cash
flow
issu
es g
ener
ated
by in
terna
tiona
l tran
sacti
ons.
2X
X•
Inves
tmen
t in
proc
essin
g fac
ilitie
s•
Amou
nt o
f cred
it rec
eived
• Nu
mbe
r of c
apac
ity-
build
ing p
rogr
amm
es
EPOS
PEA
Mini
stry o
f Fina
nce
and
Econ
omic
De-
velo
pmen
t
ITC, E
xpor
t–Im
port
Bank
of
India
62
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Stra
tegi
c ob
ject
ive
2 : Im
prov
e ex
port
com
petit
iven
ess
by s
treng
then
ing
the
conn
ectio
n be
twee
n pr
oduc
ers
and
the
inte
rmed
iarie
s in
the
valu
e ch
ain.
Oper
atio
nal
objec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
20162017201820192020
2.2
Impr
ove
the
capa
city
of th
e se
ctor
to e
nter
new
m
arke
ts a
nd to
re
main
com
petit
ive
in e
xistin
g on
es.
2.2.
2 Im
prov
e the
inve
stm
ent a
bsor
ptio
n ca
pacit
y of t
he se
ctor b
y crea
ting
incen
tives
to re
tain
exist
ing in
vesto
rs an
d to
attra
ct ne
w on
es. T
his ac
tivity
will
inclu
de th
e fol
lowi
ng ac
tions
.
• Pr
omot
e tec
hnol
ogy t
ransfe
r for
inve
stors
to ac
cess
tech
nolo
gy fo
r pro
cess
ing an
d pa
ckag
ing.
• Ide
ntify
the p
ulse
s-ba
sed
proc
esse
d fo
ods w
ith g
reates
t pot
entia
l.•
Deve
lop
a mec
hanis
m fo
r int
rodu
cing
techn
olog
y sup
plier
s to
inves
tors.
• Pr
omot
e joi
nt ve
ntur
es w
ith in
terna
tiona
l pro
cess
ors a
nd E
thio
pian
inve
stors.
• De
velo
p an
inve
stmen
t pro
file f
or E
thio
pia’s
pul
ses s
ecto
r.•
Map
out
all e
xistin
g an
d po
tentia
l inv
esto
rs. P
artic
ularl
y, id
entif
y Ind
ian in
vesto
rs int
ereste
d in
estab
lishin
g pr
oces
sing
plan
ts in
Ethio
pia.
• Or
ganiz
e visi
ts to
forei
gn co
untri
es fo
r inv
estm
ent p
rom
otio
n to
expl
ore i
nves
tmen
t opp
ortu
nities
for n
ew m
arkets
, new
pro
ducts
an
d ne
w bu
sines
s par
tner
s.•
Prom
oting
FDI
attra
ction
thro
ugh
the o
rgan
izatio
n of
bus
iness
-to-b
usine
ss m
issio
ns.
• At
tract
Indian
inve
stmen
t, tak
ing ad
vant
age o
f the
Indi
an b
an o
n ex
ports
of p
roce
ssed
pul
ses.
2X
XX
• Nu
mbe
r of
agree
men
ts sig
ned
• Nu
mbe
r of i
nves
tors
Mini
stry o
f For
eign
Affai
rsEP
OSPE
A, E
thio
pian
Inv
estm
ent A
genc
y,M
inistr
y of T
rade t
o be
invo
lved
ITC,
ITC–S
ITA
2.2.
3 De
velo
p th
e tra
nspo
rtatio
n an
d lo
gist
ics se
rvice
s nec
essa
ry to
supp
ort t
he se
ctor.
This
is int
ende
d to
be a
chiev
ed b
y pro
vid-
ing in
cent
ives t
o se
rvice
pro
vider
s to
lowe
r the
cost
and
increa
se th
e effe
ctive
ness
of t
he tr
ansp
ortat
ion
need
s of t
he se
ctor.
This
activ
ity w
ill in
clude
the f
ollo
wing
actio
ns.
• M
ap th
e exis
ting
prov
ider
s of l
ogist
ics an
d tra
nspo
rtatio
n se
rvice
s. Sp
ecial
atten
tion
will
be p
aid to
all t
he co
mpa
nies o
fferin
g ro
ad
trans
porta
tion
servi
ces t
o Dj
ibou
ti.•
Asse
ss th
e cos
t and
pric
ing st
ructu
re of
road
tran
spor
tatio
n co
mpa
nies v
is--
vis in
form
ing a
nego
tiatio
n pr
oces
s betw
een
the
secto
r and
servi
ce p
rovid
ers.
• Or
ganiz
e a p
ublic
–priv
ate co
nsul
tatio
n be
twee
n rep
resen
tative
s of t
he se
ctor a
nd tr
ansp
ortat
ion
and
logi
stics
servi
ces p
rovid
ers.
As p
art o
f this
mee
ting
a neg
otiat
ion
shou
ld ta
ke p
lace t
o ag
ree o
n sp
ecifi
c mea
sures
to re
duce
the c
ost o
f roa
d tra
nspo
rtatio
n of
pu
lses t
o Dj
ibou
ti.•
Agree
on
a way
forw
ard fo
r the
secto
r to :
( 1 ) s
tart p
repari
ng sh
ipm
ents
in Et
hiopi
a as o
ppos
ed to
Djib
outi.
Whe
n co
ntain
ers a
re pr
epare
d in
Djib
outi
it tak
es lo
nger
and
costs
mor
e ; an
d ( 2
) pro
cedu
res fo
r con
taine
r con
solid
ation
. Diff
erent
pul
ses f
rom
diff
erent
co
mpa
nies t
o be
ship
ped
in co
mpa
rtmen
ts of
the s
ame c
ontai
ner.
• Ide
ntify
spec
ific s
torag
e nee
ds fo
r exp
ort o
perat
ions
, e.g
. col
d sto
rage f
or p
artic
ular
types
of p
ulse
s.•
Ident
ify th
e lon
g-ter
m in
frastr
uctu
re ne
eds o
f tran
spor
tatio
n co
mpa
nies.
• As
sess
, tog
ether
with
Cus
tom
s offi
cials,
the m
ain im
pedi
men
ts th
at slo
w do
wn p
ulse
expo
rts at
the b
orde
r. De
sign
a pilo
t pr
ogram
me t
o str
eam
line t
he p
roce
dures
for t
he se
ctor.
This
activ
ity ai
ms t
o red
uce t
he co
st of
tran
spor
tatio
n an
d lo
gisti
cs to
mak
e exp
orts
mor
e com
petit
ive. T
he m
ain tr
ansp
ortat
ion
cost
is fo
r roa
d tra
nspo
rtatio
n fro
m d
iffere
nt p
arts
of E
thio
pia t
o th
e por
t of D
jibou
ti. Th
ere is
a lar
ge sc
ope f
or re
ducti
on o
f this
cost,
as w
ell
as g
reat p
oten
tial f
or co
nsol
idati
ng sh
ipm
ents
and
prep
aring
ship
men
ts in
Ethio
pia r
ather
than
Djib
outi.
3X
XX
X•
Redu
ction
of
trans
porta
tion
costs
Mini
stry o
f Tran
spor
tEt
hiopi
an R
even
ues
and
Custo
ms A
u-th
ority
2.2.
4 De
velo
p th
e cap
aciti
es o
f dip
lom
atic
miss
ions
to p
rom
ote E
thio
pian
pul
ses a
broa
d. Th
e acti
ons f
or th
is ac
tivity
will
cons
ist o
f th
e fol
lowi
ng.
• Ide
ntify
a gr
oup
of p
ilot c
ount
ries f
or th
e init
iative
. Ind
ia wo
uld
be am
ong
this
list.
• Ide
ntify
and
cont
actin
g th
e rele
vant
miss
ions
, and
agree
with
them
the s
cope
of t
heir
invol
vem
ent.
• Pr
oduc
e the
nec
essa
ry sa
les an
d di
ssem
inatio
n lit
eratu
re an
d sa
mpl
es.
• Tra
in pe
rsonn
el in
dipl
omati
c miss
ions
to ca
rry o
ut th
e tas
k.•
Asse
ss th
e ove
rall i
mpa
ct of
the i
nitiat
ive an
d tak
e a d
ecisi
on o
n wh
ether
to ex
tend
it to
new
coun
tries
.Th
is ac
tivity
shou
ld le
ad to
the g
ener
ation
of f
oreig
n res
erve
earn
ings a
nd m
arket
dive
rsific
ation
. In
addi
tion,
the d
iplo
mati
c miss
ions
wo
uld
obtai
n inf
orm
ation
on
relev
ant t
rade f
airs.
There
is a
link w
ith ac
tivity
2.2
.5 o
n tra
de fa
irs.
2X
X•
Num
ber o
f dip
lom
atic
miss
ions
invo
lved
Mini
stry o
f For
eign
Affai
rsEP
OSPE
A
ITC,
ITC–S
ITA
[ ROADMAP PLAN OF ACTION ]
63
Stra
tegi
c ob
ject
ive
2 : Im
prov
e ex
port
com
petit
iven
ess
by s
treng
then
ing
the
conn
ectio
n be
twee
n pr
oduc
ers
and
the
inte
rmed
iarie
s in
the
valu
e ch
ain.
Oper
atio
nal
objec
tive
Activ
ityPr
iorit
y1=
high
2=m
ed3=
low
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l pa
rtner
s
20162017201820192020
2.2
Impr
ove
the
capa
city
of th
e se
ctor
to e
nter
new
m
arke
ts a
nd to
re
main
com
petit
ive
in e
xistin
g on
es.
2.2.
5 Pr
omot
e par
ticip
ation
of t
he p
ulse
s sec
tor i
n int
erna
tiona
l tra
de fa
irs an
d ex
hibiti
ons.
The a
ction
s for
this
activ
ity co
nsist
of t
he
follo
wing
.
• Ide
ntify
suita
ble t
rade f
airs.
This
invol
ves d
eterm
ining
thos
e tha
t will
max
imize
the c
hanc
es o
f esta
blish
ing co
ntac
ts wi
th re
levan
t pr
oces
sors,
tech
nolo
gy co
mpa
nies a
nd in
vesto
rs ( fo
r exa
mpl
e, Gu
lfood
).•
Prom
ote p
artic
ipati
on in
glo
bal e
vent
s, es
pecia
lly th
ose r
elated
to 2
016
being
the I
nter
natio
nal Y
ear o
f Pul
ses.
• St
udy t
he fe
asib
ility
of o
rgan
izing
an in
terna
tiona
l trad
e fair
in E
thio
pia i
n wh
ich g
loba
l buy
ers o
f pul
ses w
ould
be i
nvite
d to
take
pa
rt.•
Foste
r coo
perat
ion
with
ove
rseas
pul
se fa
rmer
s’ or
ganiz
ation
s. Th
is wo
uld
invol
ve d
etaile
d id
entif
icatio
n an
d pr
ofili
ng o
f the
key
farm
ers’
orga
nizati
ons o
perat
ing in
coun
tries
such
as In
dia ;
and
evalu
ating
the r
each
of t
he o
rgan
izatio
ns, t
heir
past
work
on p
ulse
s va
lue c
hains
, and
their
bes
t prac
tices
;•
Asse
ss th
e cur
rent v
alue o
f the
‘Eth
iopi
a bran
d’ fo
r pul
ses.
This
shou
ld le
ad to
a se
ctor-w
ide d
iscus
sion
on b
randi
ng is
sues
.Th
is ac
tivity
is g
eared
towa
rds p
rom
oting
Eth
iopi
an p
ulse
s abr
oad
and
deve
lopi
ng p
ilot a
ctivit
ies w
ith ke
y for
eign
orga
nizati
ons.
There
is
a link
betw
een
this
activ
ity an
d 3.
1.
2X
XX
• Nu
mbe
r of e
xhib
ition
s an
d / or
trad
e fair
s•
Num
ber o
f trad
e fair
s att
ende
d•
Datab
ase o
f for
eign
asso
ciatio
ns of
pul
ses
farm
ers e
stabl
ished
• Di
scus
sion
on
bran
ding
take
s plac
e
Mini
stry o
f Trad
eEP
OSPE
A, E
thio
pian
Ch
ambe
r of C
om-
merc
e & S
ecto
ral
Asso
ciatio
ns
ITC ITC–S
ITA
2.2.
6 Pil
ot a
mar
ket e
ntry
pro
gram
me w
ith In
dia.
The a
ction
s for
this
activ
ity w
ill co
nsist
of t
he fo
llowi
ng.
• Im
prov
e farm
ers’
acce
ss to
the c
hickp
ea an
d pi
geon
pea
seed
varie
ties t
hat a
re pr
eferre
d by
the I
ndian
mark
et. Th
e chic
kpea
varie
ty th
at is
mos
t com
mon
in In
dia i
s call
ed D
esi.
India
requir
es a
size b
etwee
n 8
and
10 m
illim
etres
. The
pref
erred
varie
ty of
pig
eon
pea i
s the
Lem
on Tu
r tha
t is m
ostly
impo
rted
from
Mya
nmar.
• Ind
ian im
porte
rs an
d Et
hiopi
an ex
porte
rs vis
it IC
RISA
T hea
dqua
rters
in Hy
derab
ad to
defi
ne th
eir re
quire
men
ts an
d id
entif
y va
rietie
s tha
t mee
t the
ir req
uirem
ents.
• De
velo
p a c
ertif
ied se
ed p
rogr
amm
e thr
ough
nati
onal,
regi
onal
and
priva
te se
ed en
terpr
ises.
This
inclu
des d
evelo
ping
bree
der a
nd
foun
datio
n se
eds f
or th
e ide
ntifi
ed va
rietie
s.•
Prom
ote c
ontra
ct far
ming
agree
men
ts be
twee
n Ind
ian im
porte
rs an
d Et
hiopi
an fa
rmer
s.•
Evalu
ate th
e pot
entia
l to
exten
d th
e pilo
t to
othe
r cou
ntrie
s.•
Asse
ss th
e les
sons
learn
ed fr
om th
e pilo
t int
erna
tiona
l con
tract
farm
ing ex
perie
nce i
n Ind
ia.•
Evalu
ate th
e perc
eptio
n of
Indi
an im
porte
rs of
the ‘
Ethio
pian
bran
d’ fo
r pul
ses.
This
activ
ity sh
ould
gen
erate
forei
gn re
serve
earn
ings.
1X
XX
X•
At le
ast t
wo va
rietie
s of
chick
pea a
nd tw
o va
rietie
s of p
igeo
n pe
a ide
ntifi
ed•
Three
tons
of
bree
der s
eed /
varie
ty pr
oduc
ed•
Sixty
tons
of
certi
fied
seed
pr
oduc
ed / v
ariety
• 60
0 ha
cove
red b
y ea
ch va
riety
• Nu
mbe
r of c
ontra
cts
EIAR
Regi
onal
and
feder
al se
ed en
terpr
ises,
BoA,
farm
ers’
coop
-er
ative
s, AT
AM
oA, t
rader
s and
pr
oces
sors,
coop
era-
tives
, exp
orter
s
SITA
TL III
on
chick
-pe
aNo
pro
ject o
n pi
geon
pea
ICRI
SAT,
ITC,
ATA
2.2.
7 St
rengt
hen
the b
usin
ess
skills
of f
armer
s, as
sem
bler
s and
expo
rters
by tr
aining
a sm
all g
roup
of t
raine
rs in
the s
ecto
r. Th
e ac-
tions
for t
his ac
tivity
will
cons
ist o
f the
follo
wing
.
• Ide
ntify
a gr
oup
of fa
cilita
tors
to p
rovid
e the
train
ing. T
he tr
aining
shou
ld fo
cus o
n m
anag
emen
t skil
ls fo
r com
petit
ive b
usine
sses
. It
shou
ld b
e cus
tom
ized
for f
armer
s, as
sem
bler
s and
expo
rters.
Pub
lic o
fficia
ls an
d rep
resen
tative
s of t
he p
ublic
secto
r sho
uld
also
take p
art i
n th
e trai
ning.
• Ide
ntify
a sm
all g
roup
of f
armer
coop
erati
ves t
hat c
an p
ilot t
he re
plica
tion
of th
e trai
nings
( buil
d on
exist
ing in
itiati
ves o
f de
velo
ping
par
tner
s ).
• De
velo
p th
e cur
ricul
a of t
he tr
aining
. Som
e top
ics w
ill in
clude
: pro
ducti
on, m
arketi
ng, f
inanc
e and
mark
et lin
kage
s.Th
is ac
tivity
aim
s to
build
capa
cities
to ef
fectiv
ely m
anag
e a b
usine
ss ac
ross
the e
ntire
valu
e cha
in.
2X
X•
Num
ber o
f trai
ners
traine
d•
Num
ber o
f cou
rses
give
n
SNV,
ATA,
ECX
, AC
DI / V
OCA
ITC ( E
nter
prise
Co
mpe
titive
ness
se
ction
)
64
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Stra
tegi
c ob
ject
ive
3 : M
axim
ize th
e de
velo
pmen
tal d
ivid
end
of a
boo
min
g pu
lses
sec
tor b
y en
surin
g th
e pr
otec
tion
of th
e en
viro
nmen
t and
incl
usiv
enes
s.
Oper
atio
nal
objec
tive
Activ
ities
Prio
rity
1=hi
gh2=
med
3=lo
w
Star
ting
perio
dTa
rget
mea
sure
sLe
adin
g na
tiona
l in
stitu
tion
and
poss
ible
impl
emen
ting
partn
ers
Ongo
ing /
futu
re
deve
lopm
ent
prog
ram
mes
+
inte
rnat
iona
l par
tner
s
2016
2017
2018
2019
2020
3.1
Stre
ngth
en
the
train
ing
and
skills
of t
he
youn
gest
act
ors
in th
e pu
lses
value
cha
in,
and
ensu
re th
at
gend
er-s
ensit
ive
issue
s ar
e ad
dres
sed.
3.1.
1 En
hanc
e you
th an
d wo
men
’s ca
pacit
y to
par
ticip
ate
in th
e valu
e cha
in. Th
e acti
ons f
or th
is ac
tivity
will
cons
ist o
f the
fol-
lowi
ng.
• Or
ganiz
e a st
akeh
olde
r con
sulta
tion
with
wom
en’s
asso
ciatio
ns an
d rep
resen
tative
s, an
d tec
hnica
l and
voca
tiona
l edu
catio
n an
d tra
ining
stak
ehol
ders.
• M
ap th
e spe
cific
ways
in w
hich
the l
egal
syste
m m
ight
be i
mpe
ding
the p
artic
ipati
on o
f wom
en ac
ross
all t
he se
gmen
ts in
the
valu
e cha
in ( a
cces
s to
arabl
e lan
d in
parti
cular
).•
Orga
nize a
cons
ultat
ive b
ody o
f wom
en th
at lo
bbies
for c
hang
es to
impe
ding
laws
and
advo
cates
on
gend
er-se
nsiti
ve is
sues
in
the p
ulse
s sec
tor.
This
activ
ity ai
ms t
o en
sure
equit
able
acce
ss to
the o
ppor
tunit
ies o
ffered
by t
he se
ctor b
y rais
ing aw
arene
ss o
f wom
en’s
and
yout
h iss
ues.
There
is a
link w
ith ac
tivity
2.1
.1 o
n th
e nati
onal
pulse
s plat
form
.
2X
XX
X•
Cons
ultat
ion
orga
nized
• A
10 %
incr
ease
in
wom
en
and
yout
h pa
rticip
ating
in
the v
alue c
hain
All o
rgan
izatio
nsITC
3.1.
2 Pr
ovid
e sk
ills c
apac
ity-b
uild
ing
for t
he d
evelo
pmen
t of a
gent
farm
ers a
nd ag
ricul
ture
expe
rts. T
he ac
tions
for t
his ac
tivity
wi
ll co
nsist
of t
he fo
llowi
ng.
• St
rengt
hen
the s
kills
of th
e you
nges
t acto
rs in
the p
ulse
s valu
e cha
in an
d en
sure
that
gend
er-se
nsiti
ve is
sues
are a
ddres
sed
along
the e
ntire
valu
e cha
in.•
Stren
gthe
n th
e cap
acity
of w
omen
and
yout
h to
assu
me r
epres
entat
ion
and
leade
rship
roles
in th
e sec
tor.
This
shou
ld in
clude
en
surin
g th
at wo
men
and
yout
h pa
rticip
ate in
mark
eting
, bus
iness
netw
orkin
g an
d tra
ining
with
the I
ndia
Pulse
s and
Grai
n As
socia
tion.
• Pr
ovid
e trai
ning
to w
omen
and
yout
h on
pro
ducti
vity-
enha
ncing
pro
ducti
on te
chniq
ues f
or th
e pul
ses s
ecto
r.•
Prov
ide t
rainin
g to
wom
en an
d yo
uth
on p
roce
ssing
of v
alue a
dded
pro
ducts
bas
ed o
n pu
lses.
• Pr
ovid
e trai
ning
to w
omen
and
yout
h on
inter
natio
nal t
rade.
This
activ
ity ai
ms t
o str
engt
hen
the c
apac
ity o
f wom
en an
d yo
uth
to en
gage
in th
e hig
hest
valu
e add
ing se
gmen
ts of
the p
ulse
s va
lue c
hain.
2X
XX
X•
Num
ber o
f tra
inees
MoA
EIAR,
Indi
a Pul
ses a
nd
Grain
Ass
ociat
ion
ITC–S
ITAIC
RISA
T
3.2
Ensu
re th
at
the
deve
lopm
ent
of th
e pu
lses
sect
or d
oes
not
jeopa
rdize
the
pres
erva
tion
of
the
envir
onm
ent.
3.2.
1 Pr
omot
e the
use
of p
ulse
crop
s to
replen
ish s
oil f
ertili
ty in
non
-pul
se cr
ops.
This
activ
ity d
epen
ds o
n th
e com
pleti
on o
f 1.
2.1
and
1.2.
2. Th
e acti
ons f
or th
is ac
tivity
will
cons
ist o
f :
• De
velo
ping
mark
eting
and
best
prac
tices
diss
emina
tion
mate
rials
for f
armer
s in
othe
r sec
tors
• Or
ganiz
ing a
yearl
y sem
inar w
ith th
e par
ticip
ation
of g
over
nmen
t offi
cials
and
repres
entat
ives o
f oth
er se
ctors
• Pu
tting
pul
ses a
t the
cent
re of
disc
ussio
ns ab
out s
oil f
ertil
ity in
the c
ount
ry•
Orga
nizing
farm
ers’
mee
tings
to p
rom
ote p
rodu
ction
of p
ulse
s as i
nterc
rops
.Th
is ac
tivity
aim
s to
ensu
re th
e sus
taina
bilit
y of t
he ag
ricul
tural
dev
elopm
ent o
f Eth
iopi
a by p
uttin
g th
e pul
ses s
ecto
r at t
he fo
re-fro
nt o
f the
pro
mot
ion
of m
ost s
ustai
nabl
e prac
tices
.
3X
X•
Redu
ce th
e cere
al to
legu
me c
rop
ratio
by 2
0 %
from
the c
urren
t 6 :
1 rat
io
EIAR
RARI
s, Bo
A, M
oA, F
CA,
ATA
TL III
on
chick
pea
No p
rojec
t on
pige
on
pea
ICRI
SAT,
ITC
3.2.
2 Pr
omot
e man
agem
ent a
nd ag
ricul
tural
prac
tices
that
are as
neu
tral a
s pos
sible
on th
e env
ironm
ent.
The a
ction
s for
this
activ
ity w
ill co
nsist
of :
• Cr
eatin
g aw
arene
ss o
f the
dam
aging
impa
ct on
pub
lic h
ealth
and
the e
nviro
nmen
t tha
t can
be p
rovo
ked
by th
e use
of s
pecif
ic ch
emica
ls an
d ag
ricul
tural
prac
tices
;•
Appr
oach
ing al
l the
stak
ehol
ders
in Et
hiopi
a who
hav
e a sa
y on
envir
onm
ental
issu
es an
d req
uesti
ng th
eir su
ppor
t for
the s
ecto
r.Th
is ac
tivity
aim
s to
obtai
n su
ppor
t for
the s
ecto
r fro
m en
viron
men
tal p
ractit
ione
rs.
2X
XX
X•
A red
uctio
n of
20
% in
the u
se
of ch
emica
ls fo
r pe
st co
ntro
l
EIAR
RARI
s, Bo
A, M
oA, F
CA,
ATA
TL III
on
chick
pea
No p
rojec
t on
pige
on
pea
ICRI
SAT,
ITC
3.2.
3 W
rite a
pos
ition
pape
r tha
t des
crib
es th
e ove
rall b
enefi
ts th
at th
e pul
ses s
ecto
r can
brin
g to
the c
ount
ry. Th
is pa
per w
ill
later
be u
sed
to lo
bby t
he G
over
nmen
t for
an in
crea
sed
focu
s on
the s
ecto
r. Th
e main
area
s tha
t the
pap
er sh
ould
tack
le inc
lude
:
• Th
e cur
rent a
nd p
oten
tial n
utrit
iona
l ben
efits
of p
ulse
s for
the p
opul
ation
• Th
e pos
itive
envir
onm
ental
and
ecol
ogica
l asp
ects
of p
ulse
s•
The p
ositi
ve so
cioec
onom
ic be
nefit
s of t
he se
ctor a
s a g
ener
ator o
f em
ploy
men
t and
reve
nue
• Th
e main
chall
enge
s ahe
ad an
d sp
ecifi
c nee
ds to
stren
gthe
n th
e sec
tor.
The p
aper
shou
ld b
orro
w he
avily
from
the c
urren
t roa
dmap
doc
umen
t.
2X
• Pa
per p
ublis
hed
Inter
natio
nal L
ivesto
ck
Rese
arch
Instit
ute i
s alr
eady
wor
king,
refer
to
their
doc
umen
tsInd
ian In
stitu
te of
Pul
ses
Rese
arch
coul
d be
a po
-ten
tial p
artn
er
APPENDICES
Photo: ICRISAT, Livestock graze on chickpea stalks in dryland Ethiopia.jpg
66
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
APPENDIX I : ETHIOPIA’S PRODUCTION OF PULSES
GOVERNMENT POLICY
Over the past decade, Ethiopia’s pulses sector has been subject to swift devel-opment and increased national importance. Underpinning its development are Ethiopia’s national agricultural development blueprints, the Agricultural Development Led Industrialization ( ADLI ) strategy and the GTP. The notion of ADLI was introduced as the key policy thrust for national development in the first half of the 1990s.115 After overcoming a series of difficulties arising from internal politics, external conflicts, droughts and famines, Ethiopia became ready to earnestly undertake economic development strategies guided by ADLI principles in the early 2000s.116
Based on its developmental experience and policy learning of the last several years, the Ethiopian Government launched a five-year plan, the GTP.117 This was approved by the parliament in November 2010.118 As the highest national policy framework, the GTP has governed Ethiopia’s developmental policies, budgets and government organizations, as well as the actions of development partners and foreign investors, during the past five years.119
Although the country is blessed with fertile land and has benefited from the growing worldwide demand for pulses, it is certainly the above-mentioned development plans that spearheaded the Government’s strong support for agriculture and the pulses sector. Indeed, in line with the GTP, Ethiopia has committed itself to increasing pro-ductivity through new seeds, research and technology. To this end, the Government allocates 10 % of its annual national budget to delivering enhanced production tech-nologies and support services.120
SCOPE OF THE PULSE SECTOR
Ethiopia is endowed with fertile soil and abundant water resources. It is no wonder that agriculture accounts for over 40 % of its GDP and that the pulses sector ac-counts for over 13 %.121 In fact, the pulses sector is the second-largest component of Ethiopia’s agricultural sector, and it contributes immensely to the country’s economic growth, second only to coffee.122
A total of 12 varieties of pulses are cultivated in the country. The cooler highland regions grow faba beans, field peas, grass peas, chickpeas, lentils, fenugreek and lupins, while all other varieties ( i.e. red and white haricot beans, cowpeas, pigeon
115.– Japan International Cooperation Agency & National Graduate Institute for Policy Studies ( 2011 ). Ethiopia’s industrialization drive under the growth and transformation plan. In Intellectual Partnership for Africa Industrial Policy Dialogue between Japan and Ethiopia. Available from https : / / www.grips.ac.jp / forum-e / pdf_e12 / JICA&GDFReport_Ethiopia_phase1 / Intellectual_Partnership_for_Africa / 5Final_Report_ch3.pdf.116.– Ibid.117.– Ibid.118.– Ibid.119.– Ibid.120.– Ethiopia, Ministry of Agriculture ( 2013 ). Working Strategy for Strengthening Ethiopia’s Chickpea Value Chain Vision, Systemic Chal-lenges and Prioritized Interventions. EIAR and ATA.121.– Netherlands African Business Council and FME-CWM ( n.d. ). Business Opportunity Report : Oilseeds and Pulses. Available from https : / / www.nabc.nl / uploads / content / files / BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final( 1 ).pdf122.– United States Agency for International Development ( 2014 ). USAID works to strengthen Ethiopia’s pulses, oilseeds and spices sector, 12 November. Available from https : / / www.usaid.gov / ethiopia / press-releases / usaid-works-strengthen-ethiopias-pulses-oilseeds-and-spices.
[ APPENDICES ]
67
peas and mung beans ) are generally cultivated in the warmer lowlands.123 Notably, Ethiopia produces more than 400,000 tons of chickpeas annually and is the sixth-largest chickpea producer in the world.124
EMPLOYMENT
Smallholders are the backbone of the pulse sector. The term smallholders is widely understood to include small farmers who do not own or control the land they farm.125 Smallholders number between 8 and 9 million farmers, and they account for ap-proximately 95 % of the pulses sector’s production.126 The majority of these farmers grow faba beans, red haricot beans, field peas and chickpeas.127
According to Ethiopia’s Central Statistical Agency, and as detailed in table 6, during the 2008 / 09 to 2011 / 12 Meher season :
� 1 %–2 % of pulses were cultivated in farms of between 5.01 and 10 ha � 15 %–17 % were cultivated on farms of between 2.01 and 5 ha � 25 %–28 % were cultivated on farms of between 1.01 and 2 ha � 24 %–25 % on farms of between 0.51 and 1 ha � 24 %–27 % on farms of between 0.10 and 0.5 ha � 5 %–6 % of pulse crops were cultivated on farms under 0.1 ha.
These statistics serve as further evidence of the importance of smallholder farming to the sector.
Table 6 : Number of private holders of temporary crops by size of holding during the Meher season
Term Total
Area : pulses /
temp crop
Size of holding ( ha )
> 0.1 0.10–0.5 0.51–1.00 1.01–2.00 2.01–5.00 5.01–10.00 10.01+
2008 / 2009
No. holders 12 710 825 14 % 614 683 3 230 400 3 168 362 3 524 811 1 992 137 169 358 11 073
Share ( % ) 5 25 25 28 16 1 0
2009 / 2010
No. holders 12 647 843 12 % 609 960 3 040 419 3 166 745 3 516 654 2 120 428 179 099 14 537
Share ( % ) 5 24 25 28 17 1 0
2010 / 2011
No. holders 13 909 361 11 % 891 008 3 695 894 3 455 009 3 498 910 2 099 754 241 672 27 114
Share ( % ) 6 27 25 25 15 2 0
2011 / 2012
No. holders 13 931 157 13 % 832 419 3 617 757 3 297 838 3 578 761 2 350 266 227 136 26 980
Share ( % ) 6 26 24 26 17 2 0
123.– International Food Policy Research Institute ( 2010 ). Pulses Value Chain Potential in Ethiopia : Constraints and Opportunities for En-hancing Exports, p. 9.124.– United States Agency for International Development ( 2014 ). USAID works to strengthen Ethiopia’s pulses, oilseeds and spices sec-tor, 12 November. Available from https : / / www.usaid.gov / ethiopia / press-releases / usaid-works-strengthen-ethiopias-pulses-oilseeds-and-spices ; Parkinson, N.J. ( 2015 ). Why Ethiopia just got its 1st industrial chickpea processor Now? 26 August. Available from https : / / www.linkedin.com / pulse / ethiopia-get-its-first-industrial-chickpea-processor-parkinson.125.– Women in Informal Employment : Globalizing and Organizing ( 2015 ). Smallholder farmers. Available from http : / / wiego.org / informal-economy / occupational-groups / smallholder-farmers.126.– World Bank ( 2013 ) ; Trading Economics Ethiopia ( 2015 ) ; FAO ; Netherlands African Business Council and FME-CWM ( n.d. ). BuAA-ness Opportunity Report : Oilseeds and Pulses. Available from https : / / www.nabc.nl / uploads / content / files / BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final( 1 ).pdf.127.– In the Harmonized System classification these varieties will fall under broad beans, dried beans, dried peas and chickpeas respectively.
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Term Total
Area : pulses /
temp crop
Size of holding ( ha )
> 0.1 0.10–0.5 0.51–1.00 1.01–2.00 2.01–5.00 5.01–10.00 10.01+
CAGR 3 % 11 % 4 % 1 % 1 % 6 % 10 % 35 %
2014 / 2015
No. holders 24 214 182 12 %
Pulse holders 7 931 562
Share ( % ) 33
SAurAAA : Ethiopia, Central Statistical Agency ( 2011 and 2012 ). Statistical Abstract, Section D, Agriculture ; and Ethiopia,
Central Statistical Agency ( 2015 ). Agricultural Sample Survey 2014 / 2015 ( 2007 E.C. ).’128
Regarding the distribution of pulse farmers across regions in 2014 / 2015, it was found that the highest percentages were in Oromia ( 36.5 % ), Amhara ( 31.8 % ) and SNNPR ( 26.3 % ) ; the rest were located in Tigray ( 4.1 % ), Benishangul-Gumuz ( 0.9 % ) and Somali ( 0.2 % ).129
PULSE MARKET
After the revolution, pulses were grown mostly for individual sustenance, although a small portion was used as a commercial crop.130 This is largely due to the fact that pulses are the second most important element in the national diet and a principal protein source for the local population.131 Boiled or roasted, they are used as both a main dish and as a supplementary food.132
The share of pulses cultivated for commercial purposes is rising, as this is becoming a mature market that provides an important source of income for Ethiopian farmers. It is worth noting, however, that the proportion of the marketed pulse output varies significantly across regions, pulse types and production years. For instance, lentils and chickpeas are grown primarily for local consumption ( almost 100 % ), whereas nearly 100 % of white pea beans are produced for export.133
PLANTING AND HARVESTING SEASON
Pulses are typically grown during Ethiopia’s main rainy season of production, the Meher season.134 These crops are generally harvested from September to February, having relied on the significant rains that fall from mid-June to mid-September. A smaller proportion ( 5 % ) of pulses are planted during the BAAA season. This is the short rainy season from March to April.135
128.– Ethiopia Central Statistical Agency ( 2015 ). Agricultural Sample Survey 2014 / 2015 ( 2007 E.C. ), Volume I : Report on Area and Produc-tion of Major Crops ( Private Peasant Holdings, Meher Season ).129.– Performance Monitoring and Accountability 2020 Project, School of Public Health – Addis Ababa University ( 2014 ). Detailed Indicator Report : Ethiopia 2014. Baltimore : PMA2020. Available from https : / / www.pma2020.org / sites / default / files / DIR-PMA2014-ET-V4-2015-04-14.pdf.130.– Pulses were a particularly important export item before the revolution.131.– Wubne, Mulatu ( 1993 ). Agriculture ( and subsections ). In Ethiopia : A Country Study, Thomas P. Ofcansky and LaVerle Berry, eds. Library of Congress Federal Research Division.132.– Ibid.133.– Ethiopia, Central Statistical Agency ( 2015 ). Agricultural Sample Survey 2014 / 2015 ( 2007 E.C. ), Volume I : Report on Area and Produc-tion of Major Crops ( Private Peasant Holdings, Meher Season ).134.– Ethiopia, Central Statistical Agency ( 2014 ). Agricultural Sample Survey 2013 / 2014 ( 2006 E.C. ), Key Findings.135.– Encylopaedia Britannica ( 2015 ). Belg season. Available from https : / / www.britannica.com / EBchecked / topic / 1534292 / belg.
[ APPENDICES ]
69
PLANTING REGIONS
Pulses are grown in almost all Ethiopian regions. The most important region for pulse production is Oromia, which is responsible for 45 % of national output. This is closely followed by Amhara ( 39 % ) and SNNPR ( 12 % ). Other regions include Tigray ( 2.1 % ), Benishangul-Gumuz ( 1.3 % ) and Somali ( data on the share of output is not available ).136 Oromia produces the majority of white haricot beans and contributes greatly to the majority of pulse varieties. Amhara is the most important region for many pulse varieties and it grows over 50 % of Ethiopia’s grass peas, lentils and fenugreek. In addition, 100 % of Ethiopia’s gibto and mung beans are cultivated in Amhara. SNNPR meanwhile produces 44 % of the red haricot beans as well as 20 % of the field peas.137
PRODUCTION
The production of pulses has followed a fluctuating but upward curve since the early 1990s. From the turn of the century until 2013, there have been six years in which double-digit growth was registered, and just three in which there was nega-tive growth.138 After more than a decade in which Ethiopia’s share of world pulse production increased, it reached a record high of 4.1 % in 2012 before declining to 1.9 % in 2013.
According to FAO Statistics Division data, Ethiopia’s production of most pulse crops dropped by nearly half in 2013.139 The data suggests that dried peas and lentils were the only segments that continued to grow in 2013 in all metrics, while broad beans and dry beans140 witnessed the most severe decreases. The severity of the drop is observed in Ethiopia’s world share of area harvested : Ethiopia accounted for 16.6 % of the world area harvested in 2012, but in 2013 its share shrank to 5.1 %.141
Figures 9, 10, 11 and 12 illustrate the trends concerning Ethiopia’s area harvested, production and yields for the sector, and by segment. Note that the data used here are from FAO, the product classification of which differs somewhat from the Harmonized System codes used when analysing trade trends. Here, ‘Beans, dry’ in-clude : ‘Kidney beans...,’ ‘Beans dried,’ ‘Mung, black / green gram bean...,’ ‘Adzuki…,’ and ‘Bambara bean’ ( i.e. Harmonized System codes 071331–071335 and 071339 ) ; similarly, ‘Vetches’ and ‘Pulses, n.e.s.’ form part of ‘Leguminous vegetables dried’ ( 071390 ).
136.– Miklyaev, M., Jenkins, P. and Pankowska, K. ( n.d. ). A Cost-Benefit Analysis of Small Scale Red Haricot Beans Production in Ethiopia : Intercropping as a Risk Diversification Mechanism. Available from https : / / www.queensjdiexec.org / publications / qed _dp_238.pdf.137.– Appendices IV and V provide further detail on regions share in total production by pulse variety ( 2014 / 15 Meher season ).138.– Food and Agriculture Organization of the United Nations ( 2015 ). Statistics database. Available from https : / / www.fao.org / statis-tics / en / . Accessed 7 June 2015.139.– Ibid.140.– Dry beans includes kidney beans, which account for 64 % of the total.141.– Data calculated from Food and Agriculture Organization of the United Nations ( 2015 ). Statistics database. Available from https : / / www.fao.org / statistics / en / . Accessed 7 June 2015.
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Figure 9 : Ethiopia’s pulse area–production metric 1993–2013
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SAurAA : Food and Agriculture Organization of the United Nations ( 2015 ).
Figure 10 : Ethiopia’s pulse production metric 1993–2013
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SAurAA : Food and Agriculture Organization of the United Nations ( 2015 ).
[ APPENDICES ]
71
Figure 11 : Ethiopia’s pulse area harvested metric 1993–2013
-
100.000
200.000
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a)
Broad beans…
Peas, dry
Beans, dry
Chick peas
Vetches
Lentils
Pulses, nes
SAurAA : Food and Agriculture Organization of the United Nations ( 2015 ).
Figure 12 : Ethiopia’s pulse yields metric 1993–2013
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SAurAA : Food and Agriculture Organization of the United Nations ( 2015 ).
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Despite the significant growth that the sector has been registering over the past decade, it is still faced with a number of threats that are taking a toll on yields and productivity. The most notable threats include overgrazing ; soil erosion ; lack of irrigation systems ; lack of quality seeds, fertilizers and pesticides ; and lack of knowledge of best practices. Specifically, smallholder farmers typically rely on inef-ficient traditional agronomic practices and technologies.
Moreover, a closer look at factors underpinning yields reveals that most segments still have much work to do with regards to increasing the use of improved seeds, fertilizers, pesticides and irrigation. According to data from 2008 / 09 to 2011 / 12, less than 1 % of the area that cultivated pulses used improved seeds or irrigation systems during that period. The only exceptions were ‘Haricot beans’ ( part of ‘Beans, dry’ ) and ‘Lentils’ with regard to seeds, and ‘Haricot beans’ and ‘Chickpeas’ in terms of irrigation.142
In terms of pesticide and fertilizer application, these were more widely applied by most segments. It must be recalled that crop yields are inevitably affected by many factors, including the weather, input prices, changes in agronomic practices, the amounts of fertilizer used, the quality of seed varieties, and the use of irrigation. Table 7 provides the yearly trends, and appendix VI presents the breakdown of the trends by pulse variety.
Table 7 : Pulses : estimates of improved seeds, irrigation, and areas that applied pesticides and fertilizer ( private holdings, Meher season ) 2008 / 09–2011 / 12
Total cropImproved seed
appliedIrrigated Pesticide applied Fertilizer applied
Area ( ha ) Area ( ha ) % Area ( ha ) % Area ( ha ) % Area ( ha ) %
2008 / 09 1 585 236 14 918 0.94 6 680 0.42 42 679 2.69 103 996 6.56
2009 / 10 1 489 308 12 912 0.87 7 891 0.53 143 451 9.63 112 194 7.53
2010 / 11 1 357 523 6 933 0.51 - - 51 991 3.83 36 074 2.66
2011 / 12 1 616 809 8 824 0.55 6 356 0.00 79 122 5.00 - -
SAurAA : Ethiopia, Central Statistical Agency ( 2011 and 2012 ). Statistical Abstract, Section D, Agriculture.
It is important to note that no data was found regarding the production breakdown by quality, productivity, value added, farmers’ incomes or production costs. This information would have enabled a better assessment of the position of the sector. It should be recalled that up-to-date data is of the utmost importance for decision mak-ers. This is especially true for investors aiming to assess and forecast the potential of the sector.
According to the above-mentioned information, it is clear that ‘Peas, dry’, ‘Lentils’ and ‘Chickpeas’ are promising areas for the future growth of the sector. Indeed, global demand for these goods is high. Specifically, the growth in world demand for chickpeas was the second-highest among pulses, with a 15 % CAGR between 2009 and 2013. However, Ethiopia is lagging behind, as the country has been reducing its exports of chickpeas over the past few years. Thus, greater and more dynamic efforts are needed to increase the sector’s global competitiveness.
Another segment in need of further attention is ‘Beans, dry’, as yields have been falling since 2009, and the increase in production was mainly due to increases in
142.– Regarding chickpeas, the implementation of improved seeds was below 1 %. However, this segment was among the few for which the use of improved seeds could be calculated for the entire period.
[ APPENDICES ]
73
harvested areas. In fact, after being the segment with the highest growth in yield between 2003 and 2008 ( 10 % CAGR ), it registered the second-lowest growth among Ethiopian pulses between 2008 and 2012 ( 5 % CAGR ) and recorded the highest fall between 2009 and 2013 ( -8 % CAGR ).
In terms of the international comparison for yield, Ethiopia ranked 61 in 2012–2013 for ‘Beans, dry’, 13 for production and 18 for area harvested. Among countries far-ing better than Ethiopia for yield in 2012–2013 were five African countries. Notably, Ghana and Cameroon had similar yields to Ethiopia in the early 2000s, although their yields did not always grow as much as Ethiopia’s. Also, the two countries did not experience the fluctuations and downward trends seen in Ethiopia, and they managed to maintain the high levels that they attained. Figure 13 illustrates the trends for the ‘Beans, dry’ yield of the five African countries mentioned, and for the three countries that showed the highest yield in 2012–2013.
Figure 13 : Yield of ‘Beans, dry’ : world-leading top three and top six African countries 2000–2013
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Ethiopia
SAurAA : Food and Agriculture Organization of the United Nations ( 2015 ).
Even though Ethiopian yields have commendably made important progress over the years, they have yet to reach their full potential.143 Given Ethiopia’s fertile lands, its yields are well below those which could be achieved according to international standards and research trials.144
Among the main factors holding the sector back, as identified by ATA ( 2015 ), are : access to seeds and to rhizobium inoculants ; extension services ; access to finance, quality standards, market information and trade intelligence ; and mechanization uptake.145 While access to inputs and the use of appropriate agronomic practices are sine qua non conditions for the development of the sector, trust across economic actors operating in the sector is also a critical issue highlighted in most studies.
143.– Figure 13 illustrates Ethiopia’s yield in 2012 against East African countries and the world ; out of all Ethiopia’s principle varieties, only the yields for ‘Peas, dry’ were well below global averages in 2012.144.– International Food Policy Research Institute ( 2010 ). Pulses value chain in Ethiopia : constraints and opportunities for enhancing exports, p. 23. Working Paper, July. Available from http : / / cdm15738.contentdm.oclc.org / utils / getfile / collection / p15738coll2 / id / 8106 / file-name / 8107.pdf.145.– Ethiopia, Agricultural Transformation Agency ( 2015 ). Assessment of Systemic Interventions Pulses and Oilseeds.
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[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
Important pitfalls for the industry are the lack of an appropriate business model underpinning the industry and the development and implementation of standards for products and the industry. This extends from knowledge and credibility of post-harvest processing techniques to contract enforcement.
In addition, mixed bean quality, price speculation resulting in contract defaults, a lack of information on production levels,146 and a lack of appropriate quality inspections147 are reducing the incentive for the adoption of technology in cleaning, grading and sorting grain at the farm level. Furthermore, these issues are reducing the quantity of pulses available for export.148 Although some steps towards enhancing the situation have been taken, such as organizing supplies through ECX,149 most reports indicate the need for further action.
The potential and space for further strengthening the Ethiopian pulses sector and for developing niche markets is clear. The sector can and ought to emerge as a driving force of sustainable economic development for the people of Africa’s second most populous country.
Table 8 : Regions share in total production by pulse variety ( 2014 / 15, Meher season )
Variety Tigray Afar Amhara Oromia SomaliBenishangul-
GumuzSNNPR Gambela
Faba beans 2.27 % n.a. 36.34 % 48.27 % n.a. 0.11 % 13.01 % n.a.
Chickpeas 1.94 % n.a. 49.24 % 46.71 % n.a. 0.06 % 2.05 % n.a.
Field peas 1.79 % n.a. 34.34 % 43.28 % n.a. n.a. 20.59 % n.a.
Red haricot beans n.a. n.a. 10.08 % 44.39 % n.a. 1.42 % 44.12 % 0.00 %
Grass peas 5.02 % n.a. 62.07 % 32.88 % n.a. n.a. 0.04 % n.a.
White haricot beans 0.39 % n.a. 35.80 % 61.20 % n.a. 1.29 % 1.32 % n.a.
Lentils 4.59 % n.a. 56.75 % 38.30 % n.a. 0.01 % 0.34 % n.a.
Fenugreek n.a. n.a. 71.82 % 27.64 % n.a. n.a. 0.54 % n.a.
Gibto n.a. n.a. 100.00 % n.a. n.a. n.a. n.a. n.a.
Mung bean / ’maho’ n.a. n.a. 100.00 % n.a. n.a. n.a. n.a. n.a.
SAurAA : Ethiopia Central Statistical Agency ( 2015 ).
146.– This makes exporters unable to enter into new contracts.147.– This is often induced by a mismatch between domestic and export markets’ standards.148.– The ATA estimates that 10 %–25 % is rejected by exporters. See Ethiopia, Ministry of Agriculture ( 2013 ). Working Strategy for Strength-ening Ethiopia’s Chickpea Value Chain Vision, Systemic Challenges and Prioritized Interventions. Ethiopia Institute for Agricultural Research and ATA.149.– Bekele, K., ( 2013 ). An overview on Ethiopian pulses production & market perspective. Presentation. Acos Ethiopia PLC.
[ APPENDICES ]
75
APPENDIX II : ETHIOPIA’S EXPORTS OF PULSES
Ethiopia exported US $ 287 million of pulses in 2014, up nearly 20 % compared with 2013.150 Exports experienced steady growth over recent years, expanding by 22 % annually between 2009 and 2014. Moreover, Ethiopia consistently gained ground relative to competitors : while its share of global pulse exports was just 0.7 % at the turn of the century, it was 2.8 % in 2014.
Figure 14 : Ethiopia’s pulse exports 2001–2014
0,0%
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2013
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14
Ethiopia's pulse exports (USD thousands, lhs)
Ethiopia's share of global pulse exports (%, rhs)
SAurAA : International Trade Centre ( 2015 ).
EXPORT PARTNERS
Trade data shows that Ethiopia’s pulses sector has increased its sustainability in a number of foreign markets. The number of markets with sales valued above US $ 1 million grew from six in 2001 to 31 in 2014. Similarly, concentrations have improved. Today, the top four and eight markets receive just 45 % and 70 % of Ethiopia’s total pulse exports respectively, as opposed to 66 % and 80 % in 2009.
In 2014, the biggest importer of Ethiopian pulses was Pakistan ( 12 % of Ethiopian pulses ), followed by Nicaragua ( 12 % ), Sudan and South Sudan ( 11 % ) and Indonesia ( 11 % ). Growth was strong in the majority of Ethiopia’s main markets over the past five years, including Pakistan ( five-year CAGR 34 % ), Nicaragua ( n.a. ),151 Indonesia ( n.a. ),152 India ( 50 % ) and Yemen ( 29 % ). Particular note should be given to the negative growth to Sudan ( five-year CAGR of -5 % ) and the UAE ( -5 % ). While the fall in exports to the former may be explained by the sanctions placed on Sudan,
150.– Data calculated from : International Trade Centre ( 2015 ). Trade Map Database. Available from https : / / www.trademap.org / Index.aspx. Accessed 19 August 2015.151.– Five-year CAGR not available due to the absence of exports to this market in the base year, 2009.152.– Ibid.
76
[ ETHIOPIA VALUE CHAIN ROADMAP FOR PULSES ]
the decline towards the UAE is partially explained by under-invoicing. Even so, both of these countries continue to be some of Ethiopia’s most important markets for pulse exports.
Figure 15 presents Ethiopia’s exports trends to its principal markets during the 2013–2014 term. Table 9 provides further details regarding exports to those markets.
Figure 15 : Ethiopia’s top 20 markets for pulses, 2009 and 2014 ( US $ thousands )
-
5.00
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Sudan (North + South)
India
Russian Federation
United Arab Emirates
Kenya
Bulgaria
Netherlands
Belgium
Romania
Exports in 2009 Exports in 2014
SAurAA : International Trade Centre ( 2015 ).
Table 9 : Ethiopia’s top 20 markets for pulses
CountryAverage
2013–2014( US $ thousands )
CAGR ( 2004–2008 )
( % )
CAGR( 2009–2014 )
( % )
CAGR ( 2004–2014 )
( % )
Share
Average2008–2009 ( % )
Average2013–2014 ( % )
World 226 861 41 18 23 100 100
Pakistan 38 954 76 31 37 9 17
Sudan + South Sudan 23 702 42 -12 10 35 10
Indonesia( 1 ) 21 034 50 60 86 0 9
Nicaragua( 2 ) 18 970 n.a. 78 n.a. n.a. 8
India 18 197 6 47 32 2 8
Yemen 14 138 31 23 18 7 6
Russian Federation 11 643 70 194 77 0 5
Turkey 10 634 48 26 38 2 5
UAE 9 068 122 -9 25 15 4
[ APPENDICES ]
77
CountryAverage
2013–2014( US $ thousands )
CAGR ( 2004–2008 )
( % )
CAGR( 2009–2014 )
( % )
CAGR ( 2004–2014 )
( % )
Share
Average2008–2009 ( % )
Average2013–2014 ( % )
South Africa 7 941 75 27 35 3 4
Kenya 7 033 -100 49 33 0 3
Italy 4 982 17 23 15 2 2
Egypt 4 622 124 14 43 2 2
Bulgaria 4 501 83 38 50 1 2
Portugal( 3 ) 4 319 n.a. 431 n.a. 0 2
United Kingdom 3 674 8 -19 1 4 2
Belgium 3 195 36 9 20 2 1
Netherlands 2 663 12 6 4 2 1
Romania 2 603 70 22 30 1 1
Spain 2 577 -9 47 14 0 1
SAurAA : International Trade Centre ( 2015 ).
Note : ( 1 ) Indonesia : export flows recorded in 2008 and from 2010 to 2014 ; ( 2 ) Nicaragua : export flows only in 2010
and 2014 ; ( 3 ) Portugal : export flows recorded since 2013.
The data depicted in figure 16 suggest that the expansion in Ethiopian pulse exports is being driven by demand in a number of regions. While growth of exports to South Asia and East Asia & the Pacific has been particularly notable, at 38 % and 89 % respectively ( CAGR 2009–2014 ), it is clear that the same level of progress has not been achieved in all markets. Growth was slowest in the Middle East & North Africa, and exports of pulses to this region have yet to return to the highs achieved in 2008. Growth to sub-Saharan Africa meanwhile was driven by notable expansion in the South African and Kenyan markets ( five-year CAGR of 29 % and 52 % respectively ).
Figure 16 : Ethiopia’s exports of pulses by region or regional group, 2001–2013 ( US $ thousands )
0
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Latin America & Caribbean
Sub-Saharan Africa
East Asia & Pacific
Middle East & North Africa
Europe & Central Asia
North America
SAurAA : International Trade Centre ( 2015 ).
Although Ethiopian firms are gaining ground in many markets, they still have not capitalized on all opportunities. Tapping into remaining markets is achievable, as Ethiopian firms are continuously acquiring experience exporting to international buy-ers. This includes buyers from demanding countries, such as those in the EU, where requirements are quite stringent. In addition, Ethiopian stakeholders are investing in the quality, productivity and sustainability of the sector, which will eventually lead to greater competitiveness.
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Box 2 : Opportunities to leverage preferential market access
Ethiopia benefits from the United States’ AGOA,* a prefer-ential duty programme, and the United States Agency for International Development ( USAID )** programmes for trade development in the East African region. Similarly, the EU grants preferential access to Ethiopia in the framework of its programme Everything But Arms.
Moreover, as a least developed country Ethiopia receives preferential market access to other developed countries and to most emerging and frontier markets. In fact, about 22 countries ( the EU is counted as a single entity ) grant, on
a non-reciprocal basis, zero tariffs or reduced rates to least developed countries’ goods. While not all countries apply preferences to all pulses, data indicates that there are countries applying zero Customs duties to products exported by Ethiopia, such as ‘Peas dried...’ ( 071310 ). Some of these markets remain untapped by Ethiopian firms. Appendix V summarizes the list of countries providing non-reciprocal preferential duties to Ethiopia, and presents an example of tariffs applied to Ethiopia by geographical distribution.***
* Williams, B.R. (2015). African Growth and Opportunity Act (AGOA): Background and Reauthorization. Congressional Research Service.
Available from https://www.fas.org/sgp/crs/row/R43173.pdf.
** United States Agency for International Development (2015). Mission, vision and values. Available from
https://www.usaid.gov/who-we-are/mission-vision-values.
*** For further detail on tariffs, please see: International Trade Centre (2015). Market access map. Available from www.macmap.org.
EXPORT PRODUCTS
The majority of Ethiopia’s pulse exports are comprised of ‘Kidney beans....’ ( 64 % of exports ), ‘Leguminous vegetables...’ ( 13 % ), ‘Broad beans & horse beans...’ ( 10 % ) and ‘Chickpeas...’ ( 9 % ).
Figure 17 : Ethiopia’s export basket of pulses, 2001–2014 ( US $ thousands )
0
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Lentils dried, shelled, whether or not skinned or split
Dried, shelled Pigeon peas
Peas dried, shelled, whether or not skinned or split
Beans,small red (Adzuki) dried,shelled,whether or not skinned or split Urd,mung,black/green gram beans drid shelld,whether/not skinnd/split
Beans dried, shelled, whether or not skinned or split, nes
SAurAA : International Trade Centre ( 2015 ).
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Product concentration remains an issue, as the top four products account for 96 % of exports. In addition, while diversification improved somewhere between 2001 and 2007 ( during which time the number of products whose exports were valued above US $ 1 million grew from two to seven ), it has since stagnated ( today there are six products with exports valued above US $ 1 million ).
Both ‘Kidney beans...’ and ‘Leguminous vegetables...’ grew significantly over the past five years ( CAGR of 35 % and 114 % respectively ), as did less important products including ‘Beans, dried...’ ( 86 % ) and ‘Urd, mung, black / green gram bean’ ( 67 % ). Exports of ‘Broad beans...’ meanwhile stagnated ( -1 % CAGR ), whereas exports of ‘Chickpeas...’ grew at a lesser pace ( 8 % ). Of particular concern, however, is the decline in exports of ‘Lentils dried...’ While this used to be an important product whose exports were valued at nearly US $ 16 million in 2010, exports of this product are now negligible.
As illustrated in figure 18, Ethiopia’s exports of ‘Broad beans...’ and ‘Chickpeas...’ have been declining as a share of world imports, whereas exports of ‘Kidney beans...’ and ‘Leguminous vegetables...’ have been increasing as a share of world imports. While the former two products have failed to keep pace with growing global demand, Ethiopia’s exports of the latter two have grown at a much faster relative pace.
Figure 18 : Ethiopian exports a share of world exports 2001–2014 ( % )
0%
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12%
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Peas dried, shelled, whether or not skinned or split
Kidney beans&white pea beans drid shelld,whether o not skinnd o split
Lentils dried, shelled, whether or not skinned or split
Urd,mung,black/green gram beans drid shelld,whether/not skinnd/split
Chickpeas, dried, shelled, whether or not skinned or split
Broad beans&horse beans dried,shelled,whether or not skinned or split Beans dried, shelled, whether or not skinned or split, nes
SAurAA : International Trade Centre ( 2015 ).
Trade statistics show that Ethiopian pulses have yet to realize their full potential. While market concentrations have improved and exports are selling to demanding markets such as the EU and United States, efforts must be made to improve survival rates and penetrate new markets. In addition, limited product concentrations remain an issue. Stakeholders must work to boost productivity and leverage growing global demand for a wider basket of pulses.
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APPENDIX III : POLICY ENVIRONMENT AND TRADE AGREEMENTS
Ethiopia’s economic growth has been strongly supported by the Government, and agricultural, industrial and trade policies are set so as to create an enabling environ-ment for the private sector. Ethiopia has consistently promoted pro-business and pro-market policies based on the principle of export-led development.
The overall strategy for economic development in Ethiopia today is enshrined in the GTP. The ultimate goal of the GTP is to help Ethiopia reach middle-income status by 2025, and agricultural development has been identified as a priority. In order to reach its goals, the GTP provides a strategic framework for tackling issues related to eco-nomic development, environmental degradation, productivity of natural resources, food security and the protection of vulnerable households from natural disasters.153 As the first phase of the plan is set to be completed by 2015, this is an appropriate moment for stakeholders to evaluate its progress and provide considerations for the next phase.
AGRICULTURAL POLICY
Public policy has played a central role in facilitating the growth of the pulses sector. Markets were liberalized in the late 1990s, and the development of the private sector was encouraged. The pro-liberalization policies helped spur gains in production and exports, while other measures were successful in increasing the competitiveness of smallholder farmers. These policies were instrumental in developing the sector’s potential for supplying high-quality products to domestic and export markets.154
The ADLI policy is the Government’s main agricultural policy. Its goal is to enhance food security and agricultural productivity, and it has been used as a major policy framework since 1991.155 ADLI strategies relevant to the pulses sector include tai-loring interventions for assessing the country’s agroecological zones, establishing growth corridors, improving the supply of inputs, and implementing the Productive Safety Net Programme.
Based on ADLI, the Government implemented the Plan for Accelerated and Sustainable Development to End Poverty ( PASDEP 2005 / 06–2009 / 10 ). The objective of this plan was ‘to accelerate the transformation from subsistence to commer-cialization of smallholder agriculture through attaining increased productivity and increased share of marketed production and continued support to pro-poor basic agriculture within the framework of the national food security programme.’156 PASDEP endeavoured to reach these objectives by promoting :
improved pulse production technologies with high-yielding varieties, adoption of rec-ommended fertilizer application rates and crop protection practices, and the promo-tion of pulse export trade and financing incentives to enhance the competitiveness of
153.– Ethiopia, Agricultural Transformation Agency. Available from https : / / www.ata.gov.et / priorities / national-growth-transformation-plan / .154.– International Food Policy Research Institute ( 2010 ). Pulses value chain in Ethiopia : constraints and opportunities for enhancing exports, p.19. Working Paper, July. Available from http : / / cdm15738.contentdm.oclc.org / utils / getfile / collection / p15738coll2 / id / 8106 / filename / 8107.pdf.155.– Government of Ethiopia ( 1996 ). National Strategic Plan on Food Security. Available from https : / / www.africanchildforum.org / clr / pol-icy %20per %20country / ethiopia / ethiopia_foodsecurity_1996_en.pdf.156.– Ethiopia, Ministry of Agriculture and Rural Development ( 2006 ). Agricultural Policies, Programmes and Targets for a Plan for Acceler-ated and Sustainable Development to End Poverty ( PASDEP ) 2005 / 6–2009 / 10. Addis Ababa.
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pulse exporters. In large part, these farm level efforts have fallen short of achieving the key goals of increasing smallholder productivity, maintaining steady and high-quality production, and ensuring consistency in export volumes, primarily because of the lack of inputs, effective agencies to implement, and a cross-sectoral vision for the sector with the confidence of multiple stakeholders.157
Most of these issues still resonate today.
Building on ADLI, agricultural policies are currently anchored in the GTP ( 2011–2015 ), which succeeded the five-year PASDEP plan. The GTP pursues the following objec-tives that are relevant for the pulses sector :i. ‘Enhance productivity and production of smallholder farmers and pastoralistsii. Strengthen marketing systemsiii. Improve participation and engagement of the private sectoriv. Expand the amount of land under irrigationv. Reduce the number of chronically food insecure households.’158
Within this framework, the pulses sector has been identified as a priority segment.
A more recent policy is the Proclamation on Seeds, which was passed by Ethiopia’s parliament in January 2013.159 This provides guidelines for the release and registra-tion of seed varieties, as well as internal quality control. In addition, it also regulates the relationship between the federal MoA and the regional BoA.
Box 3 : Ethiopia’s Proclamation on Seed, 2013
A study comparing Ethiopia’s emerging seed regulatory framework with laws and regulations in nine other countries observed that:
Ethiopia’s private seed industry has been held back by limits on private variety introductions and absence of a seed retail market through thousands of (non-existent) private dealers. Ethiopia’s new 2013 Seed Proclamation is flexible, allowing Regulations and directives to fit various policy orientations; draft Regulations are more detailed, outlining a pattern of government controls that could either continue or significantly relax long-standing barriers to the development of Ethiopia’s private seed industry. What will happen depends on what MoA does with the authority it gets from the Regulations.
For example, the Proclamation requires variety registration for all crops, but does not say how this is to be done. Draft Regulations ask for one season of [Value for Cultivation and Use, and Distinctness, Uniformity, Stability] tests for varieties
registered in another country, or two seasons for varieties not yet registered elsewhere. The impact of these controls will de-pend on whether MoA accepts information from companies’ own tests and on how reliable MoA is to approve varieties that companies want to introduce. The draft Regulations do not clarify if seed certification is compulsory for any class of seed and, if so, for what classes. Article 23 of draft Regulations could be interpreted to allow truthfully labelled seed. One objective of the new regulatory framework is to share re-sponsibility with regional authorities. The Ministry has sole authority to register varieties. Both the Ministry and regional authorities are expected to issue certificates of competence allowing people to start seed-related businesses. Regional authorities are solely responsible to certify seed in domestic trade. This design roughly parallels practices in the US and India, where central governments and states share authority to regulate seed trade.
(United States Agency for International Development / Ethiopia Agriculture Growth Programme – Agribusiness and Market Development
(AGP-AMDe) Project (2013). Comparative Analysis of Ethiopia’s 2013 Seed Proclamation and Draft Seed Regulations, p.7. USAID).
157.– International Food Policy Research Institute ( 2010 ). Pulses value chain in Ethiopia : constraints and opportunities for enhancing exports, p. 20. Working Paper, July. Available from http : / / cdm15738.contentdm.oclc.org / utils / getfile / collection / p15738coll2 / id / 8106 / filename / 8107.pdf.158.– Ethiopia, Agricultural Transformation Agency. Available from https : / / www.ata.gov.et / priorities / national-growth-transformation-plan / .159.– United States Agency for International Development / Ethiopia Agriculture Growth Programme – Agribusiness and Market Develop-ment ( AGP-AMDe ) Project ( 2013 ). Comparative Analysis of Ethiopia’s 2013 Seed Proclamation and Draft Seed Regulations. USAID.
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A number of other agricultural strategies have developed as part of the Agricultural Transformation Agenda, including the Seed Sector Strategy, the Cooperative Sector Strategy, the Agricultural Cooperative Sector Development Strategy 2012–2016, the Household Irrigation Working Strategy document, and the Ethiopian National Agricultural Mechanization Strategy.160
The MoA Rural Economic Development and Food Security Sector Working Group was established in April 2008. This group serves as the Government–donor coor-dination platform for agriculture, natural resource management and food security. Its objective is to ‘jointly review sector level implementation status and coordinate and harmonize efforts of various development partners supporting thematic areas under RED & FS.’161
With regards to programmes that specifically target pulses, the ATA Pulses and Cereals Integration Strategy seeks to increase soil fertility and raise farmer incomes by improving land use. The strategy foresees cropping interventions in the Oromia, Amhara, Tigray and SNNPR regions for the 2014 / 15 season. Its goal is to reach 121 woredas and close to 1 million farmers.162
The pulses sector also benefits from the Comprehensive Africa Agriculture Development Programme, signed by Ethiopia in 2009. Established by the African Union, this programme is a framework for increasing food quality and quantity, and for stimulating food exports.
In order to stimulate FDI inflows, the Government protects investors through Ethiopia’s Investment Proclamation. The proclamation guarantees the repatriation of foreign investors’ capital and the remittance of dividends and interest. It also protects against certain measures of expropriation and nationalization.163
INDUSTRIAL POLICIES
The country’s industrial policies are framed in the GTP. The plan drafted for the industrial sector is organized according to three phases ; the first, ‘Enhancing the productivity of major industries’, started in 2013 and is to be completed by 2015.
Box 4 : GTP
Growth and Transformation Plan
1. Phase 1: Enhancing the productivity of major industries (2013–2015)
2. Phase 2: Diversifying and emerging new key industries (2016–2020)
3. Phase 3: Building up high-tech industries (2021–2025)
Source: Abtew, Ahmed (2014). Ethiopian industrial development. Presentation made at United Nations Industrial Development
Organization Inclusive and Sustainable Industrial Development Second Forum, Vienna, 4 November.
160.– Ethiopia, Agricultural Transformation Agency. Available from https : / / www.ata.gov.et / news / resources / sector-strategies / .161.– Rural Economic Development and Food Security Sector Working Group ( RED & FS WG ) https : / / www.moa-redfs.gov.et / .162.– Ethiopia, Agricultural Transformation Agency. Available from https : / / www.ata.gov.et / programmes / value-chains / pulses / .163.– Ethiopia, Ministry of Agriculture ( 2013 ). Investment incentives. Available from https : / / www.moa.gov.et / web / pages / investment-incentives.
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The Government has made the following relevant efforts within the overall framework of the GTP’s first phase :
� Promoting and developing an internationally competitive infrastructure : the Government has expanded the availability of hydropower, allowing for very competitive electricity prices ( US $ 0.03 per kilowatt-hour versus US $ 0.18 per kilowatt-hour in neighbouring Kenya ). Other infrastructure projects include the development of a road from Addis Ababa to the port of Djibouti ( 71,000 km of roads and 2,395 km of railways ). The Ethiopian Railway Corporation has also embarked on a project to construct 5,000 km of railways to connect various production centres in the country with import and export markets.164
� Reinforcing both foreign and domestic investment ( investment and fiscal poli-cies ) : the Government has implemented a number of investment incentives. The following are relevant for the pulses sector :
– Preferential rates for land lease and / or factory lease – The Development Bank of Ethiopia provides a 70 % loan for 30 % own equity,
and interest rates at 7.5 % – Tax exemptions for incoming raw materials and machinery – A tax holiday for a period of two to seven years, depending on the location – A profit tax exemption for up to seven years based on the size and / or the
location of the investment – Government support through support institutions such as the Ethiopian
Investment Agency – The Government is also taking part in joint ventures so as to attract more
risk-averse investors – Nine industrial zones are currently operational or planned.
TRADE POLICY
The Government of Ethiopia has made concerted efforts to foster a competitive ena-bling environment that stimulates international trade and strengthens domestic mar-keting systems. To this end, the Government has pursued the following strategies :
� Providing trade registration and licensing services according to international standards
� Improving the regulatory framework on competition � Liberalizing its market and promoting trade partnerships.
Regarding trade partnerships, Ethiopia is member of COMESA, and it receives and applies preferential tariffs. While the group has implemented a Free Trade Area, Ethiopia does not yet take part. Even so, the Government has stepped up its efforts in recent years to liberalize its trade policy. To this end, it is undertaking negotiations to finalize its membership to the World Trade Organization ( WTO ), complete the Economic Partnership Agreement with the EU as part of the Eastern and Southern African countries, and conclude the tripartite agreement for a Free Trade Area be-tween COMESA, the East African Community and the Southern African Development Community.
164.– Elissa Jobson and Marshall Van Valen ( 2014 ). Transport : riding the rails in Ethiopia and Kenya. The Africa Report, 25 March. Available from https : / / www.theafricareport.com / East-Horn-Africa / transport-riding-the-rails-in-ethiopia-and-kenya.html.
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Box 5 : Ethiopia and COMESA seed trade harmonization
‘Heads of State of COMESA member countries are expected to consider and approve COMESA Seed Trade Harmonization Regulations later this year. Harmonization is expected to “encourage investment in seed business” and to “stimulate the breeding and availability of improved seed varieties resulting in increased variety choices for all farmers” (quoted from the draft Regulations).
Ethiopia is well-situated to benefit from COMESA harmoni-zation due to its large population and seed market, the suit-ability of its climate to produce healthy seed, and the avail-ability of breeders and others with skills in seed production. COMESA seed trade harmonization would require at least one small but significant change in Ethiopia’s current draft Regulations. Specifically, harmonization proposes to create
a COMESA Variety Catalogue, which would include varie-ties registered in at least two member states. All COMESA countries are to accept all varieties in the Catalogue. Ethiopia’s Seed Proclamation is sufficiently flexible to allow MoA to accept varieties in a COMESA Variety Catalogue. However, Ethiopia’s current draft Seed Regulations specifi-cally require at least one season of [Value for Cultivation and Use, and Distinctness, Uniformity, Stability] tests for varieties registered in another country; this would have to be revised to accommodate COMESA harmonization.’ (United States Agency for International Development / Ethiopia Agriculture Growth Programme – Agribusiness and Market Development (AGP-AMDe) Project (2013). Comparative Analysis of Ethiopia’s 2013 Seed Proclamation and Draft Seed Regulations, p. 7. USAID).
As noted previously, 22 countries ( including the EU as a single entity ) grant zero tariffs or reduced rates to least developed countries’ goods in a non-reciprocal manner. Note that although most preferential tariffs are mentioned on the Ethiopian Revenues and Customs Authority website, not all are included, including the prefer-ences granted by India. It is important that such information is disseminated in a more efficient manner in order to stimulate pulse market diversification. Indeed, several studies on non-reciprocal preferential arrangements find that limited aware-ness among the private sector, and sometimes even among the public sector, is one of the main reasons that preferential duties are not leveraged to their full extent.
In addition to improving trade relations, the Government has also looked to facilitate trade by improving the Customs, tariff and trade facilitation environment.165
� Import tariffs on raw materials and fabrics were amended in 2013 to promote im-port substitution ; qualifying products face a tariff of 20 % instead of 35 %. Capital goods meanwhile receive a 100 % exemption. Imported products are subject to five types of levies, namely Customs duty, excise tax, value added tax, surtax and withholding tax. Note that the collection of Customs duties represents an important source of revenue for the Government ; the Ethiopian Revenue and Customs Authority estimates that this was 11.8 billion Ethiopian birr in 2009.
� In its aim to promote exports, the Government has withdrawn its export tariff on the majority of products.
� Customs have opened a separate window for exporters, and large exporters can now gain access to bonded warehouses inside Customs by being designated Authorized Economic Operators. In addition, Customs is minimizing documenta-tion and simplifying the process for the release of imports. A multi-modal system using dry ports has also been implemented.
Despite these improvements, logistics in Ethiopia remain an important cost factor. Ethiopia ranked 104 in the World Bank’s global trade Logistics Performance Index
165.– For further information see : Ethiopian Revenue and Customs Authority ( 2015 ). Imports and taxes in Ethiopia. Available from https : / / www.erca.gov.et / index.php / customs / others / 100-imports-and-taxes-in-ethiopia.
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( 2014 ), and it takes an average of 44 days to import or export a container.166 In a world where cost and reliability are some of the most important factors in a buyer’s decision, the Government must increase its efforts to address bottlenecks in the areas of trade facilitation.
DEVELOPMENT POLICIES
The GTP has served as Ethiopia’s national planning document for development from 2010 to 2015. The national development plan for the period 2015–2020 is under preparation, and the most relevant development policies for the pulses sector are presented below :
� Ethiopia’s Food Security Strategy was issued in 1996 and is anchored in ADLI.167 Its goal is to ensure food security at the household level. To this end, the strat-egy seeks to ‘( i ) increase the availability of food through increased domestic production ; ( ii ) to ensure access to food for food deficit households ; and ( iii ) to strengthen emergency response capabilities.’168
� Ethiopia’s Productive Safety Net Programme forms an integral part of its food security programme. The Productive Safety Net Programme is implemented by the Ethiopian Government and supported by the World Bank.169 In return for food and / or cash transfers, households perform various public works in areas such as infrastructure maintenance. In this way, households are given a predictable form of assistance so that they are no longer reliant on emergency aid.170
� The Ethiopian Climate Resilient Green Economy ( CRGE ) Strategy and the CRGE Facility seek to ensure a sustainable economic future by helping the country miti-gate and adapt to climate change. Its three main goals are : ‘( i ) fostering growth and economic development ; ( ii ) managing greenhouse gas emissions ; and ( iii ) improving resilience to climate change.’171 The CRGE Facility meanwhile is tasked with mobilizing resources from both domestic and international sources.
� An educated and skilled labour force is one of the principles that underpin the GTP, and formal training is being provided in different technical areas and for managerial skills. According to Ethiopia’s MoA, a total of 25 agricultural vocational training colleges have been established. These colleges have graduated 71,000 agricultural development agents since 2004 / 05 in areas such as animal science, plant science and natural resources. In addition, 8,870 farmer training centres have been established in order to spread best practices.172
� It is also worth noting that Ethiopia is one of the main beneficiaries of the Aid for Trade initiative, which has been instrumental in the country’s development.
166.– Aaron Maasho ( 2014 ). Africa investment – garment-making finds new low-cost home in Ethiopia, 5 September. Available from https : / / www.reuters.com / article / 2014 / 09 / 05 / africa-investment-idUSL5N0R61WH20140905.167.– Government of Ethiopia ( 1996 ). National Strategic Plan on Food Security. Available from https : / / www.africanchildforum.org / clr / pol-icy %20per %20country / ethiopia / ethiopia_foodsecurity_1996_en.pdf.168.– Ibid.169.– World Bank ( 2014 ). In Ethiopia, seeing food security as a human right, 14 November. Available from https : / / www.worldbank.org / en / news / feature / 2014 / 11 / 14 / in-ethiopia-seeing-food-security-as-human-right.170.– World Food Programme ( 2015 ). Livelihoods, early assessment and protection. Available from https : / / www.wfp.org / disaster-risk-reduction / leap.171.– See : Ethiopia, Ministry of Finance and Economic Development. Available from https : / / www.mofed.gov.et / English / Featured %20Ar-ticles / Pages / TheEthiopianClimateResilientGreenEconomy( CRGE )StrategyandtheCRGEFacility.aspx.172.– Ethiopia, Ministry of Agriculture ( 2013 ). Policies and strategies. Available from https : / / www.moa.gov.et / web / pages / policies-and-strategies.
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APPENDIX IV : SECTOR DEVELOPMENT TARGETS
A major focus area of this roadmap is to build on the current conjuncture and benefit from the growing demand for pulses from the East African and Asian regions. The pulses sector can be developed to benefit from existing production knowledge and potential. The policy focus in past years has been primarily on coffee and sesame ; however, the pulses sector offers similar potential to be developed as an export crop.
Rough calculations indicate that Ethiopia could expand its foreign market presence from its current levels of US $ 100 million through increased production levels. The production of pulses in Ethiopia is currently about 2 million tons. The major pulses exported are haricot beans, pea beans, horse beans and chickpeas. Market-oriented production can help Ethiopia generate more foreign exchange from exports.
Ethiopia’s pulse exports have been rising in recent years. The major export destina-tions are the Gulf States ( Saudi Arabia, Yemen and Israel ), the EU, Asian countries ( mainly Pakistan ) and neighbouring African countries. Exports have been mainly concentrated on haricot beans, horse beans and chickpeas. Ethiopia is currently the largest producer of chickpeas in Africa. Chickpea is known as the ‘pro-poor’ crop – it is widely cultivated by farmers and used for crop rotation with teff and wheat. Chickpeas also command a significant commercial demand, both locally and internationally.
The geographic position of Ethiopia provides a competitive advantage for exports, mainly due to the relative proximity to major chickpea importing countries. Ethiopia has a better logistics proximity with the world’s four leading importers – India, Pakistan, Algeria and the UAE. Another promising type of pulse is green mung. According to EPOSPEA, Ethiopia exported more than 227,000 tons of green mung beans in the concluded year of 2013 / 14, with demand going up from India, Indonesia, Belgium and the UAE.
Table 10 : Ethiopia’s pulses export growth 2009 / 10–2013 / 14
SAurAA : EPOSPEA
Photo: (CC BY-SA 2.0) Adam Posey (CC BY-SA 2.0), Beans of prosperity.jpg
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An increase in imports by countries like India and the UAE, coupled with China’s reversal as a net exporter, will generate significant opportunities for Ethiopia.
� Raw pulses : the South Asia region, which includes India, Pakistan, Bangladesh, Sri Lanka, Nepal and Bhutan, is the largest importer of pulses in the world. In this region, the major consumer of pulses is India, followed by Pakistan. Pulse consumption is part of the staple diet in this region. India alone imports more than 4–5 million tons of pulses every year. The major types that are imported are chickpeas, pigeon peas, mung beans, lentils and dry peas. It has been estimated that India’s population will reach 1.68 billion by 2030 from the present level of 1.21 billion. Accordingly, the estimated pulse requirement for 2030 is 32 million tons. Ethiopia has an advantage due to the fact that the pulses in produces for export ( chickpeas and mung beans ) are the pulses required by this market. Also, new types of pulses – like pigeon peas – are being tested and will be soon available for commercial use.
� Processed pulses : there is scope to export processed pulses from Ethiopia to regional and international markets. Traditionally the large South Asian diaspora across the world has imported processed dhal from India and other neighbour-ing countries. However, Indian exports of pulses, even processed pulses, have been banned since 2006. This has led to some structural changes. Exporters are looking at alternatives and are relocating their processing plants to other locations such as Dubai and Singapore. The ban is expected to be in place for a long time, and the gap between production and demand in India is continuously rising. This will keep the opportunity to export processed pulses open.
Based on the logic above, the roadmap aims to deliver the following production, export-related and developmental targets by 2020 :
� New types of pulses like pigeon peas to be introduced � New varieties in existing pulses such as chickpeas and mung beans to be
introduced � Exports of pulses to be increased from the existing 353,000 tons to 500,000 tons � At least four pulse processing plants to be established.
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APPENDIX V : PREFERENTIAL ACCESS AND TARIFFS
Table 11 : Countries granting preferential schemes to least developed countries
Preferences provider Preferential scheme SinceNext most favourable scheme or regime
Australia Australian System of Tariff Preferences for Least Developed Countries 1966 Australian System of Tariff Preferences
Belarus Least Developed Countries scheme n.a. Developing Countries scheme
Canada Least Developed Countries Tariffs 1974 / 1983 / 2003 General Preferential Tariff scheme
China China Special Preferential duties 2006 Most Favoured Nation ( MFN )
Chile Least Developed Countries scheme MFN
Chinese Taipei Least Developed Countries scheme n.a. MFN
27 EU Member SatesGeneralized Scheme of Preferences ( GSP ), Everything But Arms scheme 1971 / 2005 GSP+
Iceland GSP for Least Developed Countries 2002 MFN
India Least Developed Countries scheme MFN
Japan GSP for Least Developed Countries 1971 / 2007 GSP for Developing Countries
Kazakhstan GSP for Least Developed Countries 1996 GSP for Developing Countries
Korea, Republic of Preferential Tariff for Least Developed Countries 2000 MFN
Kyrgyzstan Least Developed Countries scheme n.a. General tariffs
Mauritius Least Developed Countries scheme 1998 MFN
Morocco Least Developed Countries scheme 2000 MFN
New Zealand GSP for Least Developed Countries 1972 / 1999 GSP for Less Developed Countries
Norway GSP for Least Developed Countries 1971 / 2000 / 2002 GSP for Developing Countries
Russian Federation Least Developed Countries scheme n.a. Developing Countries scheme
Switzerland GSP for Least Developed Countries 1972 / 1997 GSP for Developing Countries
Tajikistan Least Developed Countries scheme n.a. MFN
Turkey GSP for Least Developed Countries 2002 / 2005 GSP for Developing Countries
United States
� AGOA IV and textile / apparel articles � GSP for Least Developed Countries
( least developed beneficiary developing countries )
� AGOA : 2000 / 2006
� GSP : 1976
� AGOA IV and textile / apparel articles � GSP for developing countries
( beneficiary developing countries )
SAurAA : Authors’ compilation.
Notes : the year that follows ‘ / ’ indicates the year that a country implemented major changes to its non-reciprocal regime ;
n.a. : not available.
Photo: (CC BY-SA 2.0) Alina, Seed producer Bedilu Mamo from Tulu Rae central Ethiopia – closeup in his granary with his new variety chickpea seeds.
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Figure 19 : Geographical distribution for tariffs applied
SAurAA : International Trade Centre ( 2015 ).
Note : Applied tariff data source : ITC ( MAcMAp ) complemented by WTO ( Integrated Database ) ; Trade data source : ITC
normalized trade matrix ; Ad Valorem Equivalent ( AVE ) Methodology : AVE based on the World Tariff Profile.
Data : Latest available tariffs : 2013–2015 ; trade year : 2013.
Harmonized System Code : 071310 – Peas dried, shelled, whether or not skinned or split.
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APPENDIX VI : VARIETIES OF PULSES AND YIELDS
Table 12 : Pulse varieties’ and regions’ share in total pulses production ( 2014 / 015, Meher season )
Variety Tigray Afar Amhara Oromia SomaliBenishangul-
GumuzSNNPR Gambela Total
Faba beans 0.74 % n.a. 11.76 % 15.62 % n.a. 0.04 % 4.21 % n.a. 32.37 %
Chickpeas 0.34 % n.a. 8.71 % 8.27 % n.a. 0.01 % 0.36 % n.a. 17.70 %
Field peas 0.24 % n.a. 4.53 % 5.70 % n.a. n.a. 2.71 % n.a. 13.18 %
Red haricot beans n.a. n.a. 1.20 % 5.28 % n.a. 0.17 % 5.25 % 0.00 % 11.89 %
Grass peas 0.49 % n.a. 6.02 % 3.19 % n.a. n.a. 0.00 % n.a. 9.70 %
White haricot beans 0.03 % n.a. 2.78 % 4.76 % n.a. 0.10 % 0.10 % n.a. 7.78 %
Lentils 0.24 % n.a. 3.01 % 2.03 % n.a. 0.00 % 0.02 % n.a. 5.30 %
Fenugreek n.a. n.a. 0.68 % 0.26 % n.a. n.a. 0.01 % n.a. 0.95 %
Gibto n.a. n.a. 0.68 % n.a. n.a. n.a. n.a. n.a. 0.68 %
Mung bean / ’maho’ n.a. n.a. 0.46 % n.a. n.a. n.a. n.a. n.a. 0.46 %
Total 2.08 % 0.00 % 39.84 % 45.11 % 0.00 % 0.32 % 12.66 % 0.00 % 100.00 %
SAurAA : Ethiopia Central Statistical Agency ( 2015 ). Agricultural Sample Survey 2014 / 2015 ( 2007 E.C. ).
Figure 20 : Comparative yields 2012 ( hectograms / ha )
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
Beans, dry Broad beans, horse beans, dry
Peas, dry Chick peas Lentils Vetches Pulses, nes
Ethiopia yield World yield East Africa yield
SAurAA : Food and Agriculture Organization of the United Nations ( 2015 ).
Photo: (CC BY-SA 2.0) Swathi Sridharan, Tsedeke Abate, ICRISAT scientist, visits a small market in Addis Ababa to look at chickpea sales.jpg
[ APPENDICES ]
91
APPENDIX VII : ESTIMATES ON IMPROVED SEED, IRRIGATION, PESTICIDE AND FERTILIZER
Table 13 : Estimates on improved seed, irrigation, pesticide and fertilizer applied area by pulse variety ( private holdings, Meher season ), 2008 / 09–2011 / 12
Percentage of pulses area with improved seeds applied2008/2009
2009/2010
2010/2011
2011/2012
PULSES 0.94 0.87 0.51 0.55Horse beans 0.14 0.86 0.23 0.32Field peas 0.19 0.89 -Haricot beans 3.18 1.44 0.82 1.31Chickpeas 0.86 0.96 0.63 0.68Lentils 2.75 - 2.75 0.56Grass pea/vetch - - - -Soya beans 4.65 2.03 - -Fenugreek - - - -Gibto - - - -
2008/2009
2009/2010
2010/2011
2011/2012
PULSES 0.42 0.53 - 0.00Horse beans 0.28 0.39 0.22 0.00Field peas 0.11 - - 0.00Haricot beans 0.78 - 0.92 1.00Chickpeas 0.89 0.92 1.06 0.00Lentils 0.19 0.3 - -Grass pea/vetch 0.21 - - 1.00Soya beans - - - -Fenugreek 0.65 - - 1.00Gibto - -
Percentage of pulses area irrigated
2008/2009
2009/2010
2010/2011
2011/2012
PULSES 2.69 9.63 3.83 5.0Horse beans 1.12 9.54 2.89 4.0Field peas 2.27 10.08 4.29 4.0Haricot beans 2.37 6.08 1.7 5.0Chickpeas 2.37 12.79 6.65 7.0Lentils - 7.97 9.81 11.0Grass pea/vetch - 14.92 - -Soya beans - - - -Fenugreek - 2.77 - 0.0Gibto - - - -
Percentage of pulses area with pesticide applied2008/2009
2009/2010
2010/2011
2011/2012
PULSES 6.56 7.53 2.66 -Horse beans 7.55 6.01 2.21 -Field peas 11.11 7.45 4.27 -Haricot beans 12.34 2.64 3.79 -Chickpeas 0.41 13.56 0.64 -Lentils 1.8 14.72 5.92 -Grass pea/vetch - 9.17 0.25 -Soya beans - 0.63 8.12 -Fenugreek 2.05 3.97 6.81 -Gibto 0.98 - - -
Percentage of pulses area with fertilizer applied
SAurAA : Ethiopia, Central Statistical Agency ( 2011 and 2012 ). Statistical Abstract, Section D, Agriculture.
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APPENDIX VIII : LIST OF PARTICIPANTS AT CONSULTATIONS
Name of Institution Contact Person
MoA-Ministry of Agriculture Mr. Abdulsemed Abdo
EIAR- Ethiopian Institute of Agricultural Research Dr. Berhanu Amsalu
EIAR- Ethiopian Institute of Agricultural Research Dr. Million Eshete
FCA-Federal Cooperative Agency Mr. Usman Surur
Amhara BoA – Amhara Bureau of Agriculture Mr. Demeke Atlaw
Oromia ACC – (Oromia Agricultural Commercialization Cluster) Mr. Abebe Diriba
SNNP BoA – South nations and nationalities people – Bureau of Agriculture Mr.Germame Garuma
ATA-Agricultural Transformation Agency Mrs. Genzeb Akele
ATA-Agricultural Transformation Agency Dr. Daniel Dauro
ESE – Ethiopian Seed Enterprise Dr. Tafesse Gebru
MoT – Ministry of Trade Mr. Mulugeta Mohamed
MoT – Ministry of Trade Mr. Assefa Mulugeta
MoT – Ministry of Trade Mr. Samuel Gizaw
ECX – Ethiopian Commodity Exchange Mr. Ermias Eshetu
AGP/AMDe-Agricultural Growth Program-Agribusiness and Marketing Development Mr. Mesfin Terrefe
SNV Mrs. Eyerusalem Regassa
ICRISAT-Ethiopia – International Center for Research in Semi Arid Tropics Dr. K.P.C. Rao
Guts agro-industry PLC Mr. Mulugeta Enki
ACOS ETHIOPIA PRIVATE LIMITED COMPANY Mr. Kassahun Bekele
AGRO PROM INTERNATIONAL PLC. Mr. Elias Geneti
AJLI INTERNATIONAL TRADING PRIVATE Mr. Seid Ibrahim
AL-IMPEX IMPORT EXPORT. Mr. Alula G/michael
AMAL TRADING CO.,PLC Mr. Mohammed Bahajri
ARIDUNEGA TRADING PLC Mr. Melaku Mesele
BELSTY NEGESSA & HIS CHILDREN TRADI Mr. Mezgebu Belsti
COMA IMPORT AND EXPORT PLC Mr. Tesema bezabih
DESALIGN GEBREMICHAEL BUTA Mr. Desalegn G / Michael
ETHIOPIAN GRAIN TRADE ENTERPRISE Mr. Berhane Hailu
FEREG AND FAMILY PRIVATE LIMITED CO Mr. Nurihusen Fereja
GASCO TRADING PRIVATE LIMITED COMPA Mr. Ahmed M.Mukrid
GETAHUN MELESE LIYH Mr. Getahun Melese
GUNA TRADING HOUSE PLC. Mr. Attey Tadele
HACKFUN EXPORT TRADING PARTNER Mr. Getachew Mebrahtu
KABEW TRADING PLC Mr. Tedla Abraham
Photo: (CC BY-SA 2.0) ICRISAT, Chickpea eco-friendly transport, Ethiopia.jpg
[ APPENDICES ]
93
Name of Institution Contact Person
LANCHIHUN BUSINESS PLC Mr. Melku Bera Bahta
MULEY ADDISU FANTAY Mr. Muley Addisu
SORETI INTERNATIONAL Trading. Mr. Bulbula Tulea
TENAW ALEHEGN LIMENIH Mr. Dagmawi Alehegn
WONDO TRADE ANDINVESTMENT COMPANY Mr. Jemal Suleiman
YAHYA SEID OUMER Mr. Yahia Sayed Omar
ZABLON TRADING PLC Mr. Tadesse Hailu
Edao International trading Mr. Abdu Hussien
Navjeevan Dhall Mill (India) Mr. Sujay Kabra
Sagar group (India) Mr. Amit Salecha
EPOSPEA Mr. Assefa Yohannes
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