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Value Chain Analysis and Labour Market Assessment NED

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Value Chain Analysis and Labour Market Assessment NED Nurture Education and Development (NED) Dr. Belete D. W/Gies Agricultural TVET; Livelihood Improvement of Unemployed/Vulnerable Youth for food Security in Amhara Region (L4W Program) Value Chain Assessment in Mida Oromo, Merhabete and Menz Gera Woredas, of N/Shewa Zone June. 2014 Addis Ababa, Ethiopia 1 1. Executive summary 2. Background of the study and the study area 3. Overview of the sub-sector(s) and VC Selection 4. Value Chain Analysis (to be done for each selected VC) 4.1 Mapping 4.2 Quantification 4.3 Economic analysis 4.4 End market 4.5 Value Chain Constraints 4.6 Market Based Solutions 4.7 Value Chain Governance 5. Value Chain Vision and Mission/Objectives 6. Upgrading strategies 7. Proposed Intervention Programs 8. Foreseen risks and mitigation mechanisms. 9. Action Plan 10. Monitoring and Evaluation 2 Acronyms ACSI: Amhara Credit and Saving Institution CLRA: Customs and Land Authority Agency COOP: Cooperative FTCs: Farmer Training Centers IGAs: Income Generating Activities MOA: Ministry of Agriculture MOTI: Ministry of Trade and Industry NED: Nurture Education and Development TVET: Technical and Vocational Education Training WADO: Woreda Agriculture Development Office WCRA: Woreda Customs and Revenue Authority WTVEDO: Woreda Technical and Vocational Enterprises Development Office 3 I. Executive Summary Agriculture has always been the backbone of Ethiopia’s economy. Yet, lifting millions of Ethiopians out of poverty requires a transformation from centuries-old subsistence agriculture to dynamic, technology-driven, market-oriented than production oriented production to transform the rural poor from food secured to income secured. This only happen if the market itself functions in such a way as to serve the needs of all concerned. To improve the livelihood of project beneficiaries, it is highly important to create visible ground that production of marketable agricultural products for the real existence of unsatisfied demand sticks the rural poor with the market. Production of commodities by understanding marketing concept not production concept also play vital role to conceptualise the main actors for both back ward and forward integrations. Understanding of such business environments results half solved problems for the rural poor specially for unemployed youths engagement in demand driven or market sensitive production activities. Nurture Education and Development (NED is a not-for -profit, charitable organisation officially established in August 1999 and re- registered by the Charities and Societies Agency on 7 October, 2009. The main objectives of the charity are to contribute for the advancement of Food Security and Livelihood improvement, Improved Women and Children nutrition, Education, Youth and women IGA and employment, Sexual and Reproductive Health, and Water, Sanitation and Hygiene, and Institutional and Organizational Capacity Building of local actors. Currently NED is implementing a project entitled “Agricultural TVET; Livelihood Improvement of Unemployed/Vulnerable Youth for food Security in Amhara Region” being as a lead partner with financial support from L4W Program and Edukans foundation. the project is being implemented by NED (in Mida,Merhabete and Menz Woredas in North Shewa zone), Wabe Children’s Aid and Training (in Debretabor woreda in South Gondar zone), Guhion Development Aid Organization (in Debremarkos Woreda administration in East Gojam zone) and Facilitator for Change (in Bure zuria woreda in Western Gojam zone) in Amhara regional state, Ethiopia. The project is aimed to equip vulnerable/unemployed youths with market demandable agricultural vocational skills training in close collaboration with Technical Vocational Education and Training (TVET) colleges and private institutions. In order to identify market demandable agricultural vocational courses, value chain identification and analysis is part of the project activities to identify business entry point in the agricultural business on a sustainable basis. Value chain analysis is a means to understand the actors both in input suppliers, producers, consumers, processors, wholesalers, retailers, exporters, brokers, agents and others individuals/institutions that depend on the product buying and selling or processing. Conducting value chain analysis of a particular product of the society will lead to identify both the constraints in procurements of inputs, channelling of market and designing of market territory and missed opportunities in a particular chain. Well addressed or studied analysis results increasing in income and reducing vulnerability of the household. 4 The Value chain identification and analysis is conducted in Mida Woremo, Merhabete and Menz Gera Woredas of North Shewa Zone by NED in close collaboration with woreda level government offices, TVET colleges and local private enterprises. II. Background of the study area and Approach 2.1 Background of North Shewa Zone North Shewa is one of the Zones in Amhara Region. The Zone is bordered on the south and the west by the Oromia Region, on the north by South Wollo, on the northeast by the Oromiya Zone of Amhara Region, and on the east by the Afar Region. The highest point in the Zone is Mount Abuye Meda (4012 meters); other prominent peaks include Mount Megezez. Debre Birhan is the capital city of North Shewa Zone located ----- km from Addis Ababa to ------ direction of Addis Ababa. According to North Shewa Zone Finance and Economy Development Department (2014), this Zone has a total population of 2,012,342, of whom 1,016,547 are male and 995,795 with an area of 15,936.13 square kilometers. Merhabete Woreda Merhabete Woreda is located 134 km far from Debre Birhan to the ------------ direction. The woreda is bordered by Mida Woremo Woreda on the North, by Moret and Jiru Woreda on the south, by Menz Keya on the east, by Oromiya Region on the Northeast, and by Ensaro Woreda to the West direction. The capital city of Merhabete woreda is Alem Ketema. According to the woreda Finance and Economy Development office (2014), the total area of the woreda is 126,000 ha with a total population of 117,169, of whom 59,388 are men and 57781 are women. Mida Woremo Woreda Mida Woremo Woreda is of the 27 woredas of North Shewa Zone. The capital city of Mida Woremo woreda is Meragna which is located at 191 km from Debre Birhan town to the ------ direction. Mida Woremo Woreda is bordered by South Wollo Zone on the North and East, by Oromiya Region on the West and by Merhabete woreda on the South directions. According to the woreda Finance and Economy Development office (2014), the population of the woreda is 105,734, of whom 53,070 are men and 52,664 are women. The total area of the woreda is 83,799 ha. Menz Gera Woreda Menz Gera Woreda is located at the eastern edge of the Ethiopian highlands in the North Shewa Zone. Menz Gera is bordered on the south by Menz lalo Midir, on the southwest Menz Keya Gebreal, on the west by the Kechene river which separates it from the South Wollo zone, on the north by Gishe Rabel, on the north east by Antsokiya Gemza, and on the east by Efratana Gidim. 5 The capital city of Menz Gera Woreda is Mehal Meda which located ---- kms far from Debre Birhan to the _______ direction. According to the woreda Finance and Economy Development Office (2014), the woreda population is estimated 88,943, of whom 44,765 are men and 44,179 are women. The total area of the woreda is --------- km. 2.2 Approach In the first task the focus was on a 40 hours-training of the program staff of the implementing partners in Value Chain Analysis and Labour Market Assessment. During the training the partners developed their own assignments: which information to collect from whom. The partners also developed the questionnaire, FGD checklists, and reporting template for the assessment during the training in order to keep uniformity of reporting so that the compilation of cluster level assessment report will be easy. Each implementing partners took responsibility of the leading role in conducting the value chain assessment in their respective operational areas, namely; WCAT in Debretabor woreda, FC in Bure Woreda, GDAO in Debremarkos woreda, and NED in Merhabete, Moda Woreo and Menz Gera Woredas. Secondly, each organization conducted the assessment in its respective project woredas by organizing an assessment team composed of professionals/persons from Technical and Vocational Enterprises Development (TVED) Promotion Office, Women Children and Youth Affairs office, TVET colleges, Local private enterprises, CBOs and CSOs in each respective woredas. In the third and last mission the outcomes of the assignments were reviewed and discussed in a final common workshop where they were also translated in action points for the next steps. NED gives special highlighting for the production of marketable agricultural products and thereby to integrate the rural poor and unemployed youths with the market. To carry out the analysis, primary data was collected from knowledgeable actors in the chains and secondary market survey reports were reviewed. The analysis was followed the steps by collecting data at grass root level to prepare the report that serve as an initial document for further intervention. Lastly, _________________________ were selected as focused commodities. 6 III. Overview of the Sub-sectors 3.1 Economy Similar to other areas of Amhara, livestock possession, particularly oxen holding, and land ownership are the main determinants of wealth in the zone. Lack of plough oxen, money and land hamper further crop production among the poor and very poor, including unemployed youths, while high input prices, insufficient cultivatable land and poor soil fertility hamper the middle and better-off households attempts to increase crop production. Land renting is the prominent arrangement between the poorer and wealthier farmers to overcome their respective problems of a lack of oxen and a lack of land to plough. They enter a crop sharing arrangement where each party takes half the harvest. The very poor do not own sheep and cattle.
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