Livingstone-Zambia. Feb 28 Mar 4, 2016
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1 Chickpea Production, Technology Adoption and Market Linkages in Ethiopia Chris O. Ojiewo On behalf of TL III Team-Ethiopia and partners Pan-African Grain Legume and World Cowpea Conference Livingstone-Zambia Feb 28 Mar 4, 2016
2 Chick pea production in Ethiopia by zone
3 Place of Chickpea Production among Major Pulse Crops in Ethiopia Share of Major Pulse Crops to Total Pulse Acreage Average (2009/2014): 1.6 million ha Share of Major Pulse Crops to Total Pulse Production Average (2009/2014): 11.5 million tons Lentil 7% Chickpea 14% Grass pea 10% Soyabean 1% Fenugreek 2% Gibto 2% Faba bean 31% Lentil 6% Chickpea 15% Soyabean 2% Grass pea 12% Fenugreek 1% Gibto 1% Faba bean 33% Haricot bean 19% Fieldpea 14% Haricot bean 17% Fieldpea 13% Source: CSA, Various Reports ( ) 3
4 Chickpea Area, production and yield in Ethiopia during the TLII & TLIII Intervention Years ( ) Chickpea area and production ( 000) Chickpea productivity (t/ha) Source: CSA ( )
5 Chickpea Technology Dissemination Under TL Projects National Regional State Zone Woreda/District Kebele/village TL focus
6 Technology Adoption in Sample TLII Intervention areas
7 Adoption trends - Chickpea adoption increased from 30-80% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2006/ / /14 Season Improved variety Local Desi
8 1 The Success Stories of Ethiopian Agriculture Ethiopia s chickpea productivity is the highest in top ten producing countries of the world (FAOSTAT, avg.) Country 000 Ha Kg/Ha 000 MT 1. India Pakistan Iran Australia Turkey Myanmar Ethiopia Tanzania Mexico Malawi
9 Ethiopia has the highest yield gain of chickpea among the top 10 producing countries in the world, , (FAOSTAT, 21/01/2016) Kg/ha/yr
10 The position of Ethiopia s chickpea production 3/9/ Source: Compiled from FAOSTAT, 2013
11 STRUCTURE OF THE CHICKPEA MARKETS Source: Bekele & Hailemariam, /9/
12 Chickpea Markets: LOCAL MARKETS 80% of the total annual chickpea trade volume factors favoring the large share of local markets: a. low incentives for exporters (low volume & unreliable supply) b. grain quality problem (standards) c. Problem of price competitiveness The marketing supply chain involves a number of actors to reach the final consumers Increases transaction costs
13 EXPORT MARKETS highly variable Ethiopia s share in the global chickpea export market is very limited: average about 4% by value and volume ( ); However, it accounts for 63.5% of the total chickpea export from Africa (ranks first in Africa) Market share of Ethiopia in world exports ( average million USD) Rest of world Ethiopia 4% 945,680 96%
14 Composition of Ethiopian Pulse Export Composition of Ethiopian Pulse EXport Average (2010/2012): 709 thousand tons Composition of Ethiopian Pulse EXport Average (2010/2012): 7.8 Billion Birr Faba beans 18.02% Mung bean 6.77% Field Peas 0.13% Chickpea 25.02% Faba beans 17.02% Mung bean 8.39% Field Peas 0.11% Chickpea 25.56% Lentil 2.65% Others 1.81% Haricot bean 45.60% Lentil 3.12% Others 1.92% Haricot bean 43.88% Source: :Ethiopian Customs and Revenue Authority,
15 1 The Success Stories of Ethiopian Agriculture Ethiopia s chickpea export earnings also grew substantially (FAOSTAT, 22/01/2016) 2014: Volume exported: 48,739 t Value: M USD Export value (US$ millions)
16 Major Export Market Destinations The share of major Ethiopian chickpea export markets to total chickpea trade volume for the period Italy Sweden United Kingdom Greece Iceland Cuba South Africa Ukraine Indonesia Mauritius Spain Belgium Somalia China Senegal Lebanon Algeria Netherlands Yemen Canada Egypt Bulgaria United States Turkey Iran, Islamic Republic of Djibouti Jordan Israel Singapore Saudi Arabia India Bangladesh Sudan United Arab Emirates Pakistan 0.00% 0.00% 0.00% 0.00% 0.00% 0.03% 0.03% 0.05% 0.06% 0.06% 0.05% 0.07% 0.20% 0.13% 0.32% 0.19% 0.24% 0.35% 0.29% 0.46% 0.32% 0.48% 0.40% 0.66% 0.85% 1.17% 0.95% 1.19% 2.65% 2.13% 4.93% 9.11% 12.62% 29.50% 30.51% 0% 5% 10% 15% 20% 25% 30% 35% % trade volume 86.60% 3/9/ Source: compiled from Ethiopian Customs Authority
17 Major Export Destination Share of Regional Chickpea Export Destination Markets: Global Chickpea Export (2010): 822 million USD MIDDLE EAST 24.4% EUROPE 15.1% NORTH AFRICA 10.2% INDIAN SUB- CONTINENT 39.3% SOUTH & CENTRAL AMERICA 3.4% ASIA 2.9% NORTH AMERICA 3.2% SUB-SHARAN AFRICA 1.3% COMMON WEALTH OF INDIPENDENT STATES 0.2% Source: Compiled from FAOSTAT, /9/
18 Major Export De stination Unit Value of Chickpea Export in Major Regional Markets (US$ per ton): , Unit Price (US$ Per tonne) EUROPE SOUTH & CENTRAL AMERICA NORTH AMERICA NORTH AFRICA MIDDLE EAST ASIA SUB-SHARAN AFRICA INDIAN SUB- CONTINENT World Source: Compiled from FAOSTAT, /9/
19 Major challenges in Ethiopian chickpea export? I. Poor product quality Mixture: kabuli with desi, or with other crops like grasspea and foreign materials sources of quality problems: 1. Poor post harvest practices (harvesting and threshing), 2. Deliberate mixture for unfair advantages (some farmers and traders/exporters) Small seed size (kabuli) Mostly < 7 mm ( >= 8 mm for export market) 3/9/
20 II. Chickpea export price determination is entirely based on spot prices (present demand) Exporters are price takers and highly vulnerable to price risk III. Lack of marketing information Lack of information on prices, demand, and quality requirements of different chickpea export markets
21 Major challenges? III. Lack of marketing information Lack of information on prices, demand, and quality requirements of different chickpea export markets IV.Unable to meet export demand not only in terms of quality but also in terms of supply 3/9/
22 Opportunities Government commitment e.g. establishment of ECX untapped potential in terms of yield gap (local varieties??) Cropping calendar does not coincide with major chickpea competitors III.Poorly coordinated and extended market chain High transaction costs V. High price fluctuation in local markets 3/9/
23 Spatial advantage: proximity to major export markets The major global chickpea export markets (75%) (S. Asia, M. East, and Europe) are situated at a convenient distance Ethiopian chickpea production can safely be considered as organic: limited application of chemicals and external inputs
24 Amasegnalehu (Thank you)
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