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Surveying of Cereal Crops Market Chain in West Shoa Zone of Oromia Regional State, Ethiopia

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Surveying of Cereal Crops Market Chain in West Shoa Zone of Oromia Regional State, Ethiopia International Journal of Research and Review www.ijrrjournal.com E-ISSN: 2349-9788; P-ISSN: 2454-2237 Original Research Article Surveying of Cereal Crops Market Chain in West Shoa Zone of Oromia Regional State, Ethiopia Amsalu Solomon, Jifara Teshale Lecturer at Ambo University, College of Agriculture and Veterinary Science, Department of Agribusiness and Value Chain Management, Ambo, Ethiopia. Corresponding Author: Amsalu Solomon ABSTRACT In Ethiopia, cereal production and marketing are the means of livelihood for millions of small holder households and it constitutes the single largest sub-sector in economy. But, in the country there is a great market fluctuation from time to time. Markets and marketing system do not develop simultaneously with economic growth. In From within agriculture, staple crops have stronger growth linkage resulting from more than proportionate increase in total Growth Domestic Product (GDP). But, market chain is weak and even not available in some areas. Therefore, the aim of this study was assessing the market chain of cereal crops in Dandi, Toke Kutaye and Ambo districts of Oromia Region, Ethiopia to know whether there is satisfactory market chain in the study area. Among 70 sample size of the study, 20, 22, 28 of the respondents were from Dandi, TokeKutaye and Ambo districts respectively. Primary data were collected through questionnaire, interview and focus group discussion while secondary data were obtained from internet and relevant documents. Descriptive statistics like graphs, charts, arithmetic mean, standard deviation and frequency distribution were used by utilizing SPSS, version 20 to analyse the collected data. The research result identified that there was no strong market chain in specified area for specified commodity. It was concluded by this study that strong market chain can exist if stakeholders are willing, all the actors are transparent, producers focused on trade and consumers, and government facilitation. Key Words: Market, Chain, and Cereal. I. BACKGROUND OF THE STUDY cent of Gross Domestic Product (GDP), 90 Agriculture is the core component per cent of the export earnings, and 88 per and driver for Ethiopia‟s growth and long- cent of the labour force. It also supplies term food security. The contributions are food to the urban areas and raw materials to high: 15 to 17 percent of the Government of the manufacturing sector. A variety of crops Ethiopia‟s expenditures are committed to are grown seasonally in different parts of the sector. Agriculture directly employs 80 Ethiopia (Center for RATES, 2003). percent of the total population, 43 percent of Agriculture employs more than two gross domestic product GDP), and over 70 thirds of Ethiopia‟s population and is the percent of export value (UNDP, 2013). backbone of the country's economy. While Despite the considerable progress made in Ethiopia is one of the world‟s most the sector, ensuring commercialized vulnerable countries to drought and other production remains one of the major natural calamities, it exhibits strong challenges facing millions of people. The prospects for economic growth. The major Ethiopian economy is dominated by grain crops grown in the country are Teff (a agriculture that accounts for over 50 per gluten-free small grain), Wheat, Corn, International Journal of Research & Review (www.gkpublication.in) 44 Vol.4; Issue: 6; June 2017 Amsalu Solomon et al. Surveying of Cereal Crops Market Chain in West Shoa Zone of Oromia Regional State, Ethiopia Barley, Sorghum, and Millet (Abu and for Teff, evaluated at 1.10 in urban areas Teddy, 2014). In the country, cereals are and 1.20 in rural areas. Teff is therefore an also the major stable food crops taking a economically superior good that is relatively significant share of area cultivated and more consumed by the rich than by the volume of production obtained (CSA, poor. The lower consumption by the poor is 2007). also partly explained by the high prices of Among many cereal crops Teff is a Teff which are typically twice as high as the major staple food crop in Ethiopia. Teff is cheapest cereal like Maize (Minten et al., grown at middle elevations between 1,800 2012). and 2,200 meters above sea level and in Ethiopia is the second largest wheat regions that have adequate rainfall. producing country in Africa behind South Compared to other cereals, Teff is Africa. Most Wheat production in Ethiopia considered a lower risk crop as it can comes from small holder farmers. Wheat is withstand adverse weather conditions. mainly grown in the central and south- While research on improved Teff varieties eastern highlands during the main rainy has been done since the mid-1950s, season (June to September) and harvested in investments have been limited and only a October-November. Arsi, Bale, and parts of small number of improved varieties have Shoa are considered the Wheat growing been released, i.e. about 20 in total (Fufaet belt. Ethiopia's Wheat production self- al., 2011). Its grain is mainly used for sufficiency is only 75 percent and the making Enjera, a spongy flatbread, the main remaining 25 percent of Wheat has to be national dish in Ethiopia (as well as Eritrea). imported commercially and through food Teff is also valued for its fine straw, which aid. The Oromia and Amhara regions is used for animal feed as well as mixed produce 59 percent and 28 percent of the with mud for building purposes. country‟s Wheat, respectively, with an Teff is the most important crop in additional 10 percent coming from the Ethiopia, as measured by a number of Southern Nations, Nationalities, and Peoples indicators. In 2011/12, it was estimated that Region (SNNPR) and 3 percent coming Teff made up 20 percent of all the cultivated from other regions (Abu and Teddy, 2014). area in Ethiopia, covering about 2.7 million World production of barley hectares and grown by 6.3 million farmers. (Hordeumvulgare L.) has remained stable The second most important crop was Maize since the 1970s. Consumption has also at 15 percent of all cultivated area. remained stable. World trade in barley has However, given the relatively low yields of been around 16 million tonnes; this is much Teff, the total national production of Teff less than production, as most of the cereal is (3.5 million ton) was lower than Maize (6.1 consumed locally. Barley holds a unique million ton) and Sorghum. The importance place in farming in Ethiopia, and various of teff area-wise has increased absolutely sources agree that it has been in cultivation but stayed relatively the same over time. In for at least the past 5000 years in the 2003, Teff made up 20 percent of all country. The first Ethiopians to have ever cultivated area as well while Maize was cultivated barley are believed to be the making up 18 percent. On the consumption Agew people, in about 3000 BC as cited by side, Teff is more readily eaten by urban Bahey and Grando (2011). households than by rural households. Ethiopia is ranked twenty-first in the Berhane et al. (2011) show, relying world in Barley production with a share of on national household consumption data, 1.2 percent of the world‟s total production. that urban consumption per capita is as high Barley cultivation is widely distributed as 61 kg per year. This compares to 20 kg across the country on over one million per capita per year for rural areas. They hectares of land and by more than four further illustrate the high income elasticity million small holder farmers. Currently, it is International Journal of Research & Review (www.gkpublication.in) 45 Vol.4; Issue: 6; June 2017 Amsalu Solomon et al. Surveying of Cereal Crops Market Chain in West Shoa Zone of Oromia Regional State, Ethiopia grown exclusively for the domestic market Subsidized sale of imported staples, and is neither imported nor exported. It is therefore, has a direct impact on producers the fifth most important cereal crop in by lowering market prices (FAO, 2014). Ethiopia after Teff, Wheat, Corn, and Aware of this, the government of Ethiopia Sorghum. There are two varieties of barley has placed considerable emphasis on market in Ethiopia: food Barley for human and marketing issues so as to enhance rapid, consumption and malt Barley which can be sustainable and broad-based economic converted into malt, a key ingredient in beer growth and thereby reduce poverty (Center making (Abu and Teddy, 2014). The for RATES, 2003). The efforts of increasing government also believes that the success of agricultural production and productivity agricultural development depends, among have to be accompanied by a well- other things; on the existence of an efficient performing marketing system which marketing system (Center for RATES, satisfies consumer demands with the 2003). minimum margin between producers and consumer prices. Higher prices for producer 1. REASON OF THE STUDY can encourage farmers to adopt new Agricultural marketing is a very technologies, increase production, (Woldy, important factor in economic development 1994). and lack of a well-functioning agricultural However, there are external and market and marketing system severely internal problems that influence the hinders the increase of social welfare, marketing efficiency in Ethiopia. This has to income distribution, and food security of do with lack of pertinent market developing countries. Moreover, markets information, development of marketing and marketing system do not develop institutions and marketing infrastructure simultaneously with economic growth. such as storage, transportation, and other. Markets and marketing system should be Despite the grain market liberalization organized deliberately to enable economic policy in 1991, Ethiopian grain markets development (Wolday, 1994). Improved remain poorly integrated and are information and marketing facility enables characterized by significant price volatility. farmers to plan their production more in line Only 28 percent of total cereal production with market demand, to schedule their reaches the market, suggesting considerable harvest at the most profitable time, to decide scope for expanding the volume of the grain which market to sell their produce to and market.
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