Sesame Business Network in North-West Ethiopia RAWIAN action plan

Transcription

1 Sesame Business Network in North-West Ethiopia RAWIAN action plan Rawian, Ethiopia 1

2 SBC information Name SBC Region Woreda Rawian Tigray Kafta - Humera Date of action planning 19/07/2013 SBN Coaches/facilitators participating during the action planning: Name Responsibility at SBN Demeke Tilahun Value Chain and Agri-business facilitator at National level Anteneh Mekuria Communication, Training and extension facilitator at National level Kassahun Kebede Value Chain and Agri-business coach at SBC level Melisew Misikir Agronomy Coach at SBC level Kahsu Kelali Agronomy Coach at SBC level Actors participating during the action planning: Name Organization Responsibility Telephone Birhane Goitom Kebele Administration Head Tadesse Weldegebriel Office of Agriculture Plant science Mebrahtu W/tensae Private Trader Taddese G/kidan Rawian Cooperative Deputy Manager H/Gebremedhin G/silasie Rawian Cooperative Manager H/Haftu Abay Private Farmer Zeru Birhane Private Farmer Hagos Atsbeha Private Farmer Fiseha T/mariam Rawian Cooperative Casher

3 About action planning Action planning Through one day of participatory action planning in June 2013, SBC actors have formulated the economic objectives, strategies, action and activities for their SBC, covering the periods. The action plan succeeds the SBC baselines of March/April 2013 in which the current situation of SBCs was assessed. The action plan will lead to the formulation of support activities by the Sesame Business Network support program for This action planning report is structured as follows: Formulation of economic objectives Objectives and change (table 1.1) Specific objectives of stakeholders (table 1.2) Stakeholder relations (table 1.3) Strategy and action (table 2.1) Objectives Improving sesame productivity (table 3.1) Cost price reduction (table 3.2), Interest rate reduction (table 3.3) Post-harvest losses reduction (table 3.4) Entering into higher value markets (table 3.5) Introduction The Rawian is located in the North West part of the country, Tigray region, Western zone, Kafta Humera woreda. It comprises three kebeles, Rawian, Central and Bereket, which are very close to Humera town. Inhabitants of the kebeles are settlers drawn from different parts the Tigray Region due to draught and the related famine between 1975, 1993 and also migrated to the Sudan due to the civil war. The total estimated population is 20,610, with 46.6% male and 53.4% females, distributed over 5,155 households. About 93% the households grow sesame. Farmers in this are disaggregated into small (less than 10ha), medium (10-30 ha) and large ( ha) depending on their land size. There are three coops in the area, Netsanet, Maebale and Central, all affiliated to Setit Humera cooperatives union. Out of the total registered number of small farmers (2981) 50% is organized in cooperatives. Among the 1995 intermediate farmers 50% are members of cooperatives, while the investor farmers (179) are not embraced in any of the cooperatives. 3

4 Land ownership is mostly in the name of the house head, male and registration and certification is completed for small and medium level farmers. Investor farmers also received a lease certificate for 25 years period. The area covers about 55,699 ha, of which 38,619 ha is arable. Out of the arable land 27,033 ha is covered by sesame every year as it sis is the major cash crop grown in the. Sesame productivity is declining and now is about 2-4 quintals/ha. Major variety grown is Hirhir, originated from the Sudan. Seed source is mainly informal and is farmer to farmer exchange. Bureau of agriculture and research have planned to organize seed producing cooperatives Storage facilities are available with low standards, but the can use standard storage facilities in the Humera town. The members use tractors and disk harrow for land preparation, but not planter and other implements. There is no processing and value addition activities in this. As a result people are not aware of traceability and quality and its impact on international market. Financial is the major limiting factor even though farmers have access to Dedebit (MFI), cooperatives banks at Humera town and informal money lenders. Therefore, this action plan was developed with participation of experts, famers, cooperative leaders, traders and kebele administration giving due attention to solving the envisaged production and marketing challenges. 1. Economic objectives Table 1.1 Formulation of objectives and change Current situation Objectives Subjects (early 2013) (end 2015) % change Observations/remarks (reasons for change) Sesame acreage (ha) 93, > 5 Acreage other crops (ha) 16, ha < 5 Total acreage (ha) 110, Sesame productivity (quintals/ha) Sesame production (quintals) Cost/hectare (ETB) > , , > without fertilizer 7855 with 100 kg DAP & 50 kg UREA with 100 kg DAP and 50 kg UREA 4 >54.4 Consistently increasing sesame price Declining sorghum yield due to striga infestation New area development Low price of cotton Decrease of low price & yield of cotton & sorghum, respectively Use of improved technology, agronomic practice & inputs, Developing early maturing varieties (75 days) Reducing post harvest loses Cooperation & implementing the production package in an integrated way Due to increase in labor cost & use of technology that require more money

5 Cost/quintal (ETB) Production and productivity of most important other crop Interest rate Source -1 Dedebit Source-2 Coops Source 3 Illegal money lenders o cash o shell 1400 Birr Post-harvest losses (% of reduction) no fertilizer with 100 kg DAP and 50 kg UREA Sorghum = qt/ha 15% 12-15% % 10-20% per month 100kg sesame < No change No change % 10% 67 Storage facilities Poor standard Improve by 50% 50% Storage practices Grading G-1 G-2 G-3 G-4 UG (Under grade) Store at home with different commodities or use the coops store; corrugated iron sheet & nonconcrete floored stores We can improve the storage practice by 80% 80 Average Grade 3 Grade increasing productivity Exercising improved agronomic practices Using improved technologies -75% of the farmers get loan from Dedebit & coops but not satisfactory -Coops no change unless enough loan is obtained with less interest rate from FIs 10%/month for those who take loan <100,000 20%/month for those who take loan >100,000 Shell agreement is selling sesame before harvest at a price of Birr/100kg. In such case pay back is not in sesame whatever the market price is (e.g. the average selling price in 2013 was 3100 ETB then interest rate is about 106% Untimely harvesting fear of labor shortage Occurrence of sucking insect pest Rainfall & wind on stacking In appropriate threshing Poor post harvest handling Mixed seed planting During grading at ECX due to repeated loading and unloading Netsanet & Bereket cooperatives have a plan to build 10,000 each; Central coop 3000 quintals capacity stores By improving the storage facility & storing technique - Traders mix with the poor quality sesame, & thus lack its original quality - Grading at ECX lacks transparency - Traders also complained farmers are not willing to sell their produce unless we buy the one with poor quality - Current market by itself do not appreciate quality (no price rewards)

6 Price Grade 1-3 Market channels (with % marketed through different channels) Grade 3 & price ETB Farmers to traders Farmers to coops Coops to Union or Federation Union to exporter or direct export > Exporting via the union (--%) Cleaning None No plan 0 Processing End market (international buyer) None China since January, 2000 No plan unless donated Europe, Far East Asia and U.S.A, Netherlands, France, Japan There are instances in which G-2 & G-3 get high price than G-1. Thus, traders mix G-4 and UG with G-1 and G-2 to get G-3 - This may lead to lose of the international market. Thus training on quality and awareness creation at union, primary coops, traders & farmer level is important. - Introduce quality based trading system Farmer are not benefited from the current market because they sell their produce too early due to financial problem Strengthen capacity of union, coops & the federation Looking for better markets, Get good & sustainable profit, Improve access to market information Because the union has one cleaning machine Financial capacity is limited now Joint venture is welcomed The market in such countries is better than the chemise market Table 1.2. Specific objectives of stakeholders Actors / Stakeholders in SBC Producers / Cooperatives Present in action planning (yes/no) Yes Motivation of this actor for participation in SBC To get more benefit & yield by participating in the and linking with high value markets Union No No No Specific objectives of this actor for end 2015 To strengthen capacity of members Broaden credit access to coop members Increase productivity from 3 to 9 qt/ha To look for opportunities in the business Traders Yes To increase customers Increase profit by buying more sesame Research No No No Observat ions/ remarks Extension Yes To improve production & quality & productivity of sesame To increase sesame coverage Increase productivity of sesame from 3 to 9 qt/ha To bring use of inputs to 100% 6

7 Table 1.3 Stakeholder relations Stakeholder relations Current score (0-3) Desired score (end 2015) Observations: (i) Why is it important? (ii) How to improve relations? (iii) On what to improve collaboration? Farmer with cooperatives 3 3 creates sustainability and assuring farmers benefits Farmers with traders 2 3 creating transparency and mutual benefit Farmers with extension staff 3 3 improve both technical and practical support Farmers with banks 1 2 Farmers with micro-finance institutions (MFIs) Farmers with informal money lenders Cooperative(s) with the union 3 3 Cooperative (s) with bank(s) 3 3 Cooperative(s) with MFIs 2 3 Cooperative(s) with processors Cooperative(s) with service providers Cooperatives with traders 0 2 Cooperatives with government offices 3 3 improving loan access to farmers; improving the saving culture of farmers maintain the relation in both Rawian and Central Kebeles; expand the access to Bereket which doesn t have access to MFIs; by increasing the loan coverage of Dedebit from the current 75% to 100% by improving saving; by encouraging lenders to take loans from legal MFIs; improving financial management of farmers; by changing attitude of illegal money lenders to work legally and for mutual benefit by making farmers membership of cooperatives; by helping cooperatives to build their capacity on business and financial management maintain the current relation; improving the credit access to cooperatives; improving collateral system by improving saving culture of cooperatives, and lobbying for policy amendment on how cooperatives could get credit from MFIs by working together with those who can directly buy products e.g. Selit hauling or with those who are willing to do business in joint venture maintain the current relation and work together for mutual benefit at reasonable and fair prices improving the financial capacity of coops so that they can purchase from traders maintain the current situation; lobby the government to provide financial service for coops at fair interest; by establishing a cooperative bank which mainly work with cooperatives, and the agri-business society 7

8 2. Strategy and actions Table 2.1 Strategy and Action Objective: Challenges to address Actions to undertake Sesame productivity improvement From 3 to 9 quintals/ha by the end of December 2015 Cost price reduction To reduce cost of production from to per quintal by the end of 2015 Interest rate reduction Reduce interest rate of illegal money lenders by 100% by the end of 2015 Post-harvest loss reduction Reducing Post-harvest losses from 30% to 6-10% by the end of 2015 Value addition (no objective planned Higher-value markets Improving access to Highervalue markets by 85% Lack of short maturing varieties Lack of safe & efficient chemicals to control pest and diseases Shortage of working capital (finance) at peak seasons Farmers have limited Knowledge on good agricultural practices Most farmers do not use agro-inputs/ Limited access to improved farm machineries Seasonal weather change (i.e. water stress and water logging) Lack of Knowledge Lack of improved technologies Limited credit access both in coverage and amount (of Dedebit) Lack of awareness on financial management/poor saving culture high interest rate from illegal lenders Limited capacity of coops to give loans Rainfall and wind after harvest Low attention & care to product after harvest Untimely harvesting Inappropriate Hilla stacking and threshing ;transport and packing Termite and sucking pests Lack of knowledge on its importance Low quality and lack of traceability Lack of access to market Information Improving seed availability Increase farmers knowledge on pest management methods Availing credit access at peak seasons Improving saving culture of farmers Increasing farmers knowledge of improved agronomic practices Creating linkage between farmers and modern farm input suppliers Strengthening environmental protection systems Bridging knowledge gap Use improved & efficient technologies Lobbying MFIs to increase loan amount and reduce interest rate Creating awareness on financial management Exploring other sources of finance Strengthening financial capacity of cooperatives Improving the knowledge of stakeholders on mitigation of post harvest losses Use improved store handling techniques Creating awareness on value addition Improving the quality to international market needs & Develop & use system for traceability improvement Develop information delivery system 8

9 3. Operational activity plan Table 3.1. Objective: Sesame productivity improvement ACTIONS Improving seed availability WHAT ACTVITIES? Min Seed multiplication Establishing seed multiplying enterprise ACTIVITY PLANNING BY WHOM? Man Research,, SBN,, SBN, Coops Agency, Seed authority WHEN? Meche October, 2013 Jan to March, WHERE? Yet HuARC & Rawian Rawian, Bereket BUDGET SOURCE OWN resources (cash/kind) NEEDED for the activity 50, ,000-75,000 Develop high yielding sesame varieties Introducing & testing improved varieties from Sudan SBN, HuARC, TARI, EIAR,, BoA, & MoA Jan to March, Humera 50, ,000 Increasing farmers knowledge and understanding of sesame pests and pest management methods identification of major pests using survey Training on pests control Research, SBN, office of agriculture SBN, research, June, 2013 to December, 2015 September, ,000 45,000 10,000 30,000 Linking farmers with chemical suppliers SBN, research,, Government June, 2013 to July, 10,000 25,000 Availing credit access at peak seasons Linking farmers with financial institutions Organizing rural saving & credit cooperatives SBN, administration, SBN, administration,, Union and CPA Sep to May December, 2013 to May - 20,000-50,000 Improving saving culture of farmers Awareness creation training SBN, Banks, MFI - 25,000 9

10 Training SBN, and Research - 30,000 Increasing farmers knowledge of improved Agronomic practices Demonstration SBN, and Research to end of ,000 Providing field guide manual to farmers SBN, and Research June, 2013 to March, - 10,000 Organizing workshops SBN, and Research Rawian - 25,000 Creating linkage between farmers and modern farm input suppliers disseminating information Direct visit SBN, SBN,, suppliers & Research, farmers June, 2013 to July, March, Rawyin - 10,000 Rawian 15,000 30,000 Improving environmental conditions Planting trees on deforested areas Exercising water draining systems, local administration and farmers Farmers June to June, 2015 March, - 50,000 By own power No = woreda office of agriculture, RB=regional bureau of agriculture, MoA= Ministry of agriculture Table 3.2. Objective: Cost-price reduction ACTIONS Initiating the use of efficient technologies WHAT ACTVITIES? Min Demonstration Improve use of family labour ACTIVITY PLANNING BY WHOM? Man Research, SBN, SBN, WHEN? Meche WHERE? Yet Rawian Bereket BUDGET SOURCE OWN resources (cash/kind) NEEDED for the activity - 50,000 Rawian - 75,000 10

11 Table 3.3. Objective: Interest rate reduction ACTIONS Lobbying MFIs to reduce interest rate & increase loan amount WHAT ACTVITIES? Min Organizing meetings FIs ACTIVITY PLANNING BY WHOM? Man SBN,, Coops, Administration WHEN? Meche January to May, WHERE? Yet Humera, Mekele, A. Ababa BUDGET SOURCE OWN resources (cash/kind) NEEDED for the activity - 75,000 Creating mechanisms to legally control the high interest rate from illegal money lenders Improve saving culture Establishing saving & credit cooperatives Banks, MFI and SBN, SBN & other NGOs Aug to Dec.2015 Sep.2013 to Dec ,000 10,000 75,000 Exploring other sources of finance to strengthen financial capacity of cooperatives Lobbying government & FIS Cooperatives,, SBN,NGOs Sep to Oct. 10,000 15,000 Creating awareness on financial management training SBN, Banks,, MFIs, Coops, Administration

12 Table 3.4. Objective: Post-harvest loss reduction ACTIONS Using improved store management techniques WHAT ACTVITIES? Min Store on a clean and standardized stores ACTIVITY PLANNING BY WHOM? Man Union, coops, traders, farmer WHEN? Meche to May, 2015 WHERE? Yet BUDGET SOURCE OWN resources (cash/kind) Own - NEEDED for the activity Evaluating new bagging material SBN, farmer, High Tech Oct to May, 2013 Rawian - 25,000 Improving storage facilities Building three standardized stores with a capacity of 23,000 quintals Cooperatives, NGOs and Government January, Bereket, Rawian 1,000,000 2,000,000 Developing new standardized storage facilities which can be made from local materials Field demonstration Research, SBN, SBN, Research, to May, 2015 Sept to - 20,000 Improving the knowledge of stakeholders on mitigation of post harvest losses Leaflet preparation Organizing TOT Organizing awareness creation workshop Experience sharing visit SBN, Research, SBN, Research, SBN, Union, Coops, Exporters, ECX, Investors SBN, Union, ECX, Coops, Exporters Investors Sept to Sept to Sept to Sept to - 10,000-25,000-10,000-25,000 12

13 Table 3.5. Objective: value-addition ACTIONS WHAT ACTVITIES? Min ACTIVITY PLANNING BY WHOM? Man WHEN? Meche WHERE? Yet BUDGET SOURCE OWN resources (cash/kind) NEEDED for the activity Creating awareness on value addition Organizing training workshop SBN, coops April 2013 Humera - 50,000 Table 3.6 Objective: Improving access to Higher-value markets ACTIONS WHAT ACTVITIES? Min Awareness creation training ACTIVITY PLANNING BY WHOM? Man Research, SBN, WHEN? Meche June Oct, 2013 WHERE? Yet BUDGET SOURCE OWN resources (cash/kind) NEEDED for the activity Rawian - 50,000 Improving the quality of sesame as per the demand of international market Disseminating information about high value markets Establishing quality based pricing system providing physical quality measuring devices Searching high value market destination ECX, Traders, Coops, Unions,, SBN ECX, Traders, Coops, Unions,, SBN SBN, Unions, Exporters Sep. to Oct Sep. to Oct Rawian - 25,000 Rawian 5,000 10,000 Rawian 10,000 75,000 Adopting approaches and experiences to develop traceability Experience sharing visit and training SBN, ECX, Exporters coops Sept. to January, 2013 Rawian - 25,000 13