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Federal Democratic Republic of Ethiopia Southern Nations Nationalities and Peoples Regional Government Federal Democratic Republic of Ethiopia Southern Nations Nationalities and Peoples Regional Government THE DEVELOPMENT STUDY ON THE STRENGTHENING AGRICULTURAL MARKETING SYSTEM IN SOUTHERN NATIONS NATIONALITIES AND PEOPLES REGION IN THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA FINAL REPORT MAIN REPORT November 2012 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) OVERSEAS MERCHANDISE INSPECTION CO., LTD. ET NIPPON KOEI CO., LTD. JR 12-004 Federal Democratic Republic of Ethiopia Southern Nations Nationalities and Peoples Regional Government THE DEVELOPMENT STUDY ON THE STRENGTHENING AGRICULTURAL MARKETING SYSTEM IN SOUTHERN NATIONS NATIONALITIES AND PEOPLES REGION IN THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA FINAL REPORT MAIN REPORT November 2012 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) OVERSEAS MERCHANDISE INSPECTION CO., LTD. NIPPON KOEI CO., LTD. Composition of Final Report MAIN REPORT APPENDICES The Study Area The Development Study on the Strengthening Agricultural Marketing System in SNNPR PHOTOS-1 : AMIS ACTIVITY & CAPACITY BUILDING Target Woredas received PC & Printer for AMIS WoMC staff receive PC training for AMIS Price bulletin board was installed at target woredas Farmers watch the board at PP06 market center Training program to P4P woreda and Cooperatives Study team provided sample box to P4P Coop. Capacity development to BoMC staff by sites visits Vice President and Bureau head visited PP sites The Development Study on the Strengthening Agricultural Marketing System in SNNPR PHOTOS-2 : VALUE ADDING ACTIVITY Fruit harvester for mango, developed by JICA team Demonstration of a fruits transportation cart Avocado collection center provided by JICA team Collective marketing of avocado Fresh cassava cutting machine working on a farm Clean, small chips of cassava, under sun-drying Ginger washing facility. Pressure hose is working Ginger sun-drying yard after washed The Development Study on the Strengthening Agricultural Marketing System in SNNPR PHOTOS-3 : MARKET INFRASTRUCTURE A typical local market under a dry season A local market changes to a wet land under rain. Bean marketing center constructed by Study team Farmers and traders deal with Haricot Bean Typical 100ton warehouse owned by Coop. Office houses are used as warehouses Modern 500ton warehouse built by Study team Traffic line and pallets are arranged The Development Study on the Strengthening Agricultural Marketing System in SNNPR Executive Summary 1. Background and Objectives of the Study 1.1 Background of the Study The Government of the Federal Democratic Republic of Ethiopia (GoE) set a strategy to establish effective agricultural market systems to improve food security and to promote commercialization of agriculture in the Plan for Accelerated and Sustained Development to End Poverty (PASDEP). Southern Nations Nationalities and Peoples Regional State (SNNPR) has the third largest crop production area in the country and is also known as the major producer/supplier of fruits, vegetables and root crops. Per capita consumption of cereal products has been increased about 40% in the last 10 years in the country, and consumption demand for vegetables and fruits is also increasing. Hence, the importance of agricultural marketing system improvement in SNNPR is high in consideration of the PASDEP strategy for establishing effective agricultural market systems and the trend of diversification of dietary habit. In this connection, the Bureau of Agriculture and Rural Development (BoARD) in SNNPR established the Agricultural Marketing Agency in the bureau in 2006 in order to manage the works for upgrading of agricultural marketing systems in SNNPR in an integrated fashion, and the agency started the marketing support, establishment of regional market information system, and capacity building of officials and stakeholders. Under these circumstances, GoE requested the Government of Japan to implement the Development Study on Strengthening Agricultural Marketing System in SNNPR. 1.2 Objectives of the Study Overall goal of the Study 1) To improve value of agricultural products in SNNPR. 2) To improve food security situation through improvement of agricultural marketing system in SNNPR. Objectives of the Study 1) To formulate master plan in order to design efficient and fair agricultural marketing system in SNNPR. 2) To carry out capacity development for Ethiopian counterpart personnel as well as farmers, agricultural cooperatives, agricultural cooperative unions, and traders in the course of the Study. 1.3 Study Areas and Target Crops Study Areas The Study area is covered by all areas in SNNPR. Sites for pilot projects are selected from 8 zones and 3 special woredas. Target Crops 1) Cereals : Maize, Teff, Wheat 2) Pulses : Field pea, Haricot bean, Horse bean 3) Vegetables : Cabbage, Green pepper, Red pepper 4) Fruits : Avocado, Banana, Mango, Papaya 5) Root crops : Cassava, Enset, Sweet potato, Taro 6) Other crops : Sugar cane, Spices such as ginger, turmeric and others. S - 1 The Development Study on the Strengthening Agricultural Marketing System in SNNPR 1.4 Counterpart Organization Agricultural Marketing Process, Cooperative Development Process, and Extension Service Process of Bureau of Agriculture and Rural Development (BoARD) was the counterpart organization. BoARD was reorganized into two bureaus, namely Bureau of Agriculture (BoA) and Bureau of Marketing and Cooperative (BoMC) in October 2010. The Minutes of Meeting was exchanged in December 2010 to confirm that BoMC (Agricultural Marketing Process and Cooperative Development Process) and Extension Service Process of BoA are the counterpart organization to the Study team. 1.5 Scope of the Study Study Schedule Phase 1 : Jan. 2010 – Nov. 2010 Field survey to grasp the actual situations, Analysis and identification of problems/issues, and possible countermeasures, Formulation of tentative master plan, and Pilot Project (PP) plans Phase 2 : Jan. 2011 – Nov. 2012 Implementation and evaluation of the PPs, Finalization of the Master Plan, Compilation of training materials and extension tools Formulation of the Master Plan The Study aimed to formulate the 5 years development plan comprises the practical action plans in the areas of four components; (i) agricultural marketing institution, (ii) marketing infrastructure, (iii) market information, and (iv) value addition. To plan the practical plans, the ideas of countermeasures were verified through the implementation of pilot projects in the Phase 2. 2. Agricultural Marketing Policy and Other Donors’ Activities 2.1 Agricultural Marketing Policy (1) Agricultural Marketing Strategy of Ministry of Agriculture and Rural Development (MoARD) MoARD made up the ‘Agricultural Marketing Strategy’ in 2005. The policy focuses on increasing the volume and quality of produces both for export and domestic market and envisages the establishment of an efficient market in which all actors can benefit. The policy has the following objectives and strategies. 1) Strengthening the capability and procedure for inputs demand forecasting 2) Creating an efficient agricultural input and output exchange 3) Organizing the marketing system basing on quality standards 4) Expanding and strengthening marketing infrastructure 5) Strengthening financial capacity and insurance coverage 6) Ensuring the prevalence of marketing rules and regulation 7) Establishing a market information system The policy further explains responsibilities of implementing agencies at both federal and regional level. What is observed in the documents, however, is that there are no action plans that explicitly indicate the implementation time frame. (2) Regional Agricultural Marketing Strategy of BoARD-SNNPR In September 2009, BoARD published the ‘Regional Agricultural and Rural Development Strategic Plan (2010-2015)’. The plan covers 6 target agricultural products that are identified as strategic commodities, namely coffee, pulses, oilseeds, cereals, spices and fruits/vegetables. The plan indicates the strategic goals of each target products to be reached by 2015. However, there are no concrete/practical action plans nor methodologies to attain the planned strategic goals. S - 2 The Development Study on the Strengthening Agricultural Marketing System in SNNPR (3) Development Corridors Plan in SNNPR SNNPR government set up a task force of relevant bureaus to formulate the ‘Development Corridors Plan in SNNPR’ in 2008. The plan aims at establishing agro-industry clusters of target crops/products at each development zones. As per the implementation strategy for this, development centers are responsible for promoting efforts by various intervention actors; including private, NGOs and public enterprises. However, it is still at the conceptional phase and there are no concrete/clear action plans. 2.2 Other Donors’ Activities (1) IFAD/ Agricultural Marketing Improvement Programme (AMIP) AMIP is 7-years’ program commenced from 2006 till 2013. AMIP’s activities include training farmers in post-harvest management, improved access and utilization of market information, grades and standards, organization, enterprises management, and the impact of HIV/AIDS on agricultural marketing. In SNNPR, AMIP selected 40 target woredas and trainings were given to AMIP farmers groups. AMIP farmers groups are able to apply the credit with their business plan. However, the lack of adaptable technology for farmers in the trainings and high interest rate of the credit limit the farmers’ actual challenges. The Study team demonstrated the practical ginger
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