WHO BENEFITS? MARIJKE D HAESE AGRICULTURAL ECONOMICS GHENT UNIVERSITY

Transcription

1 Ethiopia Nuffic Agribizz WHO BENEFITS? MARIJKE D HAESE AGRICULTURAL ECONOMICS GHENT UNIVERSITY

2 Department of Agricultural Economics, Ghent University Jimma University - College of Agriculture and Veterinary Medicine Haramaya University - School of Agricultural Economics & Agri-business Management Ambo University Hawassa University

3 ! Increasing! supply!chain! management!! High!value! Decommodification!! Intra!and!interDorganizaional!coordination! Driven'by' domestic' supermarket' chains,' restaurants,' hotels' Domestic! markets! Food'security' Weak'drivers,'' philantrocapitalism' and'some'donors'' Longstanding! production! constraints!!! Traditional! food!crops!! High! quality! dairy! products!!!processed! food!crops!! Spices,! ginger!! Low!value! Speciality! markets! coffee! Organic!&! fair!trade! markets! Coffee! Local! industrial! crops!!!for!import! substitution! IndustryDled! processing! and!value! addition!!! Driven'by' donors,' NGOs,' agrifood' firms'' Export! markets! Driven'by' international' market' institutions'' Commodity! exchanges!! Institutional'development' Market mapping (adapted from Poole & de Frece, 2010)

4 UGent Value chain integration and its impact on performance, the case of malt barley value chain in Ethiopia Efficiency of alternative institutional arrangements in the coffee market in Ethiopia Comparative analysis of alternative coffee value chains in Southwest Ethiopia; A way forward to enhance competitiveness and income of smallholders

5 Market policy reform and the introduction of Ethiopian commodity exchange in directing the Ethiopian coffee market Biophysical controls on Ethiopian Arabica coffee quality Proximate composition and minor constituents of Oromo Potato (Plectranthus edulis) as Influenced by storage duration and potentials for value addition

6 Value Chain Development Collaboration in the value chain Gender aspect

7 Value Chain Development Focus on domestic and export chains Coffee, Barley, Potatoes, Roses, Dairy Actors? Small scale producers at the bottom of the market chain Farm workers Traders or cooperatives Unions ECX Exporters

8 Coffee Chain (Zekarias)

9 Value Chain Development Q1: Who benefits? How can farmers be included in value chains? How does inclusion affect smallholder/resource poor farmers? Pathways of change Outcomes: Price received Information and advice Economic and social wellbeing Labour conditions Gender empowerment Incentives

10 Value Chain Development Q2: Why do we ask this question in a context of value chain development? Equity - fair price to producer or farm worker Efficiency - food production & transaction costs Quality - e.g. asymmetric information, sorting and classing Upscaling and development

11 Value Chain Development Inclusive business models Private sector for-profit initiatives which include the poor with the stated intention to improve their well-being through mechanisms going beyond arms -length market transactions Farmers CSR Corporate Social Responsibility Supply Farmers groups Cooperatives Quality

12 Value Chain Development Ethiopian Commodity Exchange Established 2008 To bring actors together and overcome information problems Studies for the coffee sector (Tinsae) Limited price integration with international markets Larger but still limited national integration between the coffee producer zones High quality areas dominate price setting Yirgachefe and Sidama adapt price more quickly

13 Value Chain Development Certification systems - compliance in production Organic Fair trade Industry specific - e.g. flower sector Farmers Large scale producer Farmers groups Cooperatives Third party Monitoring Impact but monitoring challenging Buyer

14 Collaboration in Value Chains Actors - vertical and horizontal links Small-scale producers in cooperatives, associations Contracts Who benefits? Cooperative members? Contracting parties?

15 Collaboration in Value Chains Coffee cooperatives (Zekarias) Large heterogeneity between cooperatives and amongst members Eventual effect is not large Important side-selling

16 Gender in value chain Gender empowerment through inclusion? Who benefits? Women? Do female cooperative members have benefits women s decision making on expenditure awareness/knowledge on improved techniques control over finance Coffee sectors (Zekarias)- limited effects, yet heterogeneous amongst cooperatives

17 Value Chain Development Collaboration in the value chain Gender aspect