Constraints and Opportunities of Horticulture Production and Marketing in Eastern Ethiopia By Bezabih Emana and Hadera Gebremedhin February 2007 DCG Report No. 46 Constraints and Opportunities of Horticulture Production and Marketing in Eastern Ethiopia Bezabih Emana and Hadera Gebremedhin DCG Report No. 46 February 2007 The Drylands Coordination Group (DCG) is an NGO-driven forum for exchange of practical experiences and knowledge on food security and natural resource management in the drylands of Africa.. DCG facilitates this exchange of experiences between NGOs and research and policy-making institutions. The DCG activities, which are carried out by DCG members in Ethiopia, Eritrea, Mali and Sudan, aim to contribute to improved food security of vulnerable households and sustainable natural resource management in the drylands of Africa. The founding DCG members consist of ADRA Norway, CARE Norway, Norwegian Church Aid, Norwegian People's Aid, The Strømme Foundation and The Development Fund. The secretariat of DCG is located at the Environmental House (Miljøhuset G9) in Oslo and acts as a facilitating and implementing body for the DCG. The DCG’s activities are funded by NORAD (the Norwegian Agency for Development Cooperation). This study was carried out by the CARE Ethiopia for the Drylands Coordination Group. Extracts from this publication may only be reproduced after prior consultation with the DCG secretariat. The findings, interpretations and conclusions expressed in this publication are entirely those of the author(s) and cannot be attributed directly to the Drylands Coordination Group. © Emana, B., and Gebremedhin, H., Drylands Coordination Group Report No. 46 (02, 2007) Drylands Coordination Group c/o Miljøhuset G9 Grensen 9b N-0159 Oslo Norway Tel.: +47 23 10 94 90 Fax: +47 23 10 94 94 Internet: http://www.drylands-group.org ISSN: 1503-0601 Photo credits: T.A. Benjaminsen, Gry Synnevåg and Bezabih Emana Cover design: Spekter Reklamebyrå as, Ås. Printed at: Mail Boxes ETC. Table of Contents ACRONYMS ............................................................................................................................................................ VII ACKNOWLEDGEMENTS....................................................................................................................................VIII EXECUTIVE SUMMARY........................................................................................................................................IX 1. INTRODUCTION .............................................................................................................................................. 1 1.1 1.2 1.3 1.4 2. BACKGROUND ............................................................................................................................................. 1 OBJECTIVES ................................................................................................................................................. 2 ORGANIZATION OF THE REPORT .................................................................................................................. 2 LIMITATIONS OF THE STUDY ........................................................................................................................ 2 METHODOLOGY ............................................................................................................................................. 4 2.1 DATA COLLECTION ...................................................................................................................................... 4 2.1.1 Producers’ survey .................................................................................................................................. 4 2.1.2 Consumers’ survey ................................................................................................................................. 5 2.1.3 Focus group discussion.......................................................................................................................... 6 2.1.4 Secondary data....................................................................................................................................... 6 2.2 DATA ANALYSIS .......................................................................................................................................... 6 3. SOME CHARACTERISTICS OF THE RESPONDENTS ............................................................................ 7 3.1 PRODUCERS ................................................................................................................................................. 7 3.1.1 Demographic features ............................................................................................................................ 7 3.1.2 Education ............................................................................................................................................... 8 3.1.3 Means of livelihood ................................................................................................................................ 8 3.2 CONSUMERS ................................................................................................................................................ 9 3.2.1 Demographic features ............................................................................................................................ 9 3.2.2 Means of livelihood of the consumers .................................................................................................. 10 4. HORTICULTURE PRODUCTION ............................................................................................................... 12 4.1 4.2 4.2.1 4.2.2 4.3 4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6 4.4 4.5 4.5.1 4.5.2 5. FARMING SYSTEM IN THE AREA ................................................................................................................. 12 TYPES OF HORTICULTURE PRODUCED IN THE AREA .................................................................................. 15 Vegetables ............................................................................................................................................ 15 Fruits.................................................................................................................................................... 15 INPUT USE FOR HORTICULTURE PRODUCTION ........................................................................................... 16 Land allocated for horticulture production.......................................................................................... 16 Irrigation .............................................................................................................................................. 17 Labor.................................................................................................................................................... 19 Fertilizer and manure........................................................................................................................... 19 Seeds/seedlings..................................................................................................................................... 20 Pesticides ............................................................................................................................................. 21 VEGETABLE PRODUCTION, SUPPLY AND INCOME ....................................................................................... 22 PROFITABILITY OF HORTICULTURE PRODUCTION ...................................................................................... 25 Cost of production................................................................................................................................ 25 Production and marketing efficiency ................................................................................................... 26 INPUT SUPPLY SYSTEM.............................................................................................................................. 28 5.1 INSTITUTIONS AND POLICIES...................................................................................................................... 28 5.2 INPUT SUPPLY CHANNEL ........................................................................................................................... 28 5.2.1 Seeds/seedlings..................................................................................................................................... 31 5.2.2 Fertilizer............................................................................................................................................... 32 5.2.3 Pesticides ............................................................................................................................................. 32 5.2.4 Farm equipment ................................................................................................................................... 33 6. CONSTRAINTS AND PROSPECTS OF HORTICULTURE PRODUCTION ......................................... 35 6.1 6.2 7. CONSTRAINTS ............................................................................................................................................ 35 OPPORTUNITIES FOR HORTICULTURE PRODUCTION ................................................................................... 36 HORTICULTURE MARKETING IN EASTERN ETHIOPIA ................................................................... 38 7.1 MARKETS FOR HORTICULTURE PRODUCTS ................................................................................................ 38 iii 7.1.1 7.1.2 7.1.3 7.1.4 7.1.5 7.1.6 7.1.7 7.2 7.2.1 7.2.2 7.2.3 7.2.4 7.2.5 7.2.6 7.2.7 7.3 7.3.1 7.3.2 7.3.3 7.3.4 7.3.5 7.4 7.5 8. Finkile market ...................................................................................................................................... 39 Haramaya market................................................................................................................................. 40 Kombolcha market ............................................................................................................................... 41 Woter market........................................................................................................................................ 42 Harar market........................................................................................................................................ 42 Dire Dawa market................................................................................................................................ 43 Djibouti market .................................................................................................................................... 44 MARKETING CHANNEL AND THE MAJOR ACTORS ..................................................................................... 44 Producers ............................................................................................................................................. 45 Collectors ............................................................................................................................................. 45 Brokers ................................................................................................................................................. 46 Retailers ............................................................................................................................................... 46 Wholesalers .......................................................................................................................................... 46 Exporters .............................................................................................................................................. 47 Consumers............................................................................................................................................ 48 MARKET FACILITIES/INFRASTRUCTURE..................................................................................................... 52 Transportation...................................................................................................................................... 52 Storage ................................................................................................................................................. 54 Grading, standardization and packaging............................................................................................. 54 Financing ............................................................................................................................................. 55 Market information .............................................................................................................................. 56 CONSTRAINTS OF HORTICULTURE MARKETING ......................................................................................... 56 OPPORTUNITIES FOR INCREASED HORTICULTURE MARKETING ................................................................. 58 PRICE ANALYSIS .......................................................................................................................................... 60 8.1 8.2 8.3 9. PRICES OF HORTICULTURAL PRODUCTS IN THE DOMESTIC MARKET ......................................................... 60 MARKETING MARGINS .............................................................................................................................. 61 DJIBOUTI MARKET..................................................................................................................................... 62 GENDER ASPECT OF HORTICULTURE PRODUCTION AND MARKETING .................................. 64 9.1 9.2 10. PRODUCTION PARTICIPATION ..................................................................................................................... 64 MARKETING DECISION .............................................................................................................................. 64 CONCLUSIONS AND RECOMMENDATIONS.................................................................................... 65 10.1 CONCLUSIONS............................................................................................................................................ 65 10.2 RECOMMENDATIONS.................................................................................................................................. 65 10.2.1 Improving the horticulture production ............................................................................................ 65 10.2.2 Improving marketing of horticultural products............................................................................... 66 11. REFERENCES ........................................................................................................................................... 68 ANNEXES .................................................................................................................................................................. 69 ANNEX 1: PRODUCERS' QUESTIONNAIRE (PRODUCTION AND MARKETING) ............................................................. 69 ANNEX 2: CONSUMERS' QUESTIONNAIRE (PRODUCTION AND MARKETING) ............................................................ 77 ANNEX 3: LIST OF KEY INFORMANTS AND EXPERTS FROM DIFFERENT INSTITUTIONS .............................................. 81 ANNEX 4: LIST OF KEY INFORMANTS AND FOCUS GROUP DISCUSSION PARTICIPANTS FROM DEVELOPMENT STATION, PEASANT ASSOCIATION & WOREDA LEVEL INSTITUTIONS ....................................................................... 83 iv List of Tables TABLE 1: DISTRIBUTION OF SAMPLE HORTICULTURE PRODUCERS INCLUDED IN THE SURVEY ......................................... 5 TABLE 2: NUMBER OF CONSUMERS INCLUDED IN THE SURVEY BY SEX ........................................................................... 6 TABLE 3: AVERAGE HOUSEHOLD SIZE AND DEPENDENCY RATIO .................................................................................... 7 TABLE 4: MARITAL STATUS OF THE HOUSEHOLD HEADS BY WOREDA.............................................................................. 8 TABLE 5: LEVEL OF EDUCATION OF THE HOUSEHOLD HEADS BY WOREDA ....................................................................... 8 TABLE 6: AVERAGE NO. OF CHILDREN IN SCHOOL PER SAMPLE HOUSEHOLD .................................................................. 8 TABLE 7: MAJOR MEANS OF INCOME GENERATION OF THE HORTICULTURE PRODUCERS ................................................. 9 TABLE 8: CONSUMERS' HOUSEHOLD SIZE AND FAMILY LABOR AVAILABILITY .............................................................. 10 TABLE 9: LEVEL OF EDUCATION OF THE HOUSEHOLD HEAD (CONSUMERS)................................................................... 10 TABLE 10: ANNUAL INCOME AND ITS PROPORTION ALLOCATED FOR THE PURCHASE OF HORTICULTURAL PRODUCTS .. 11 TABLE 11: AREA ALLOCATED TO VEGETABLES DURING THE DIFFERENT PRODUCTION CYCLES .................................... 13 TABLE 12: PROPORTION OF HOUSEHOLDS PRODUCING VEGETABLES (2005/06 PRODUCTION YEAR) ............................. 15 TABLE 13: NUMBER OF FRUIT TREES PER HOUSEHOLD .................................................................................................. 16 TABLE 14: AVERAGE CROPLAND HOLDING, IRRIGABLE LAND AND USE INTENSITY (HA) ............................................... 16 TABLE 15: TYPES OF CROPS PRODUCED BY USING IRRIGATION ..................................................................................... 17 TABLE 16: SOURCE OF WATER FOR IRRIGATION ............................................................................................................ 18 TABLE 17: PROPORTION OF HOUSEHOLDS WITH DIFFERENT METHODS OF IRRIGATION.................................................. 18 TABLE 18: SOURCES OF LABOR FOR HORTICULTURE PRODUCTION................................................................................ 19 TABLE 19: LABOR USE FOR SELECTED VEGETABLE CROP PRODUCTION......................................................................... 19 TABLE 20: NUMBER OF RESPONDENTS APPLYING ANIMAL MANURE TO VEGETABLES ................................................... 20 TABLE 21: USE OF CHEMICAL FERTILIZER FOR SELECTED VEGETABLE CROPS............................................................... 20 TABLE 22: SOURCE OF PESTICIDES PURCHASED BY FARMERS ....................................................................................... 21 TABLE 23: PROBLEMS ENCOUNTERED IN USING PESTICIDE ........................................................................................... 22 TABLE 24: AREA ALLOCATED TO VEGETABLES AND NUMBER OF PRODUCERS IN DIFFERENT WOREDAS ......................... 22 TABLE 25: PRODUCTION AND UTILIZATION OF VEGETABLES ........................................................................................ 23 TABLE 26: REASONS WHY PRODUCTION/SUPPLY INCREASED DURING THE LAST 5 YEARS ............................................. 24 TABLE 27: COST OF PRODUCTION OF SELECTED VEGETABLES....................................................................................... 26 TABLE 28: PRODUCTION AND MARKETING EFFICIENCY AT PRIMARY AND TERMINAL MARKETS ................................... 27 TABLE 29: SOURCES OF IMPROVED SEEDS OF HORTICULTURAL CROPS IN THE STUDY AREA ......................................... 31 TABLE 30: FARMERS' RESPONSE ON SOURCES OF IMPROVED SEED ................................................................................ 32 TABLE 31: SOURCE OF FERTILIZER FOR HORTICULTURE PRODUCTION .......................................................................... 32 TABLE 32: INSTITUTIONS SUPPLYING PESTICIDES ......................................................................................................... 33 TABLE 33: INSTITUTIONS SUPPLYING SPRAYERS/WATER PUMPS ................................................................................... 34 TABLE 34: TOP THREE PRODUCTION PROBLEMS (% OF RESPONDENTS) ......................................................................... 35 TABLE 35: OPPORTUNITIES FOR EXPANSION OF HORTICULTURAL CROPS PRODUCTION ................................................. 37 TABLE 36: MAJOR HORTICULTURE TRADED AT FINKILE MARKET AND OUTFLOW ........................................................ 39 TABLE 37: VEGETABLE MARKETING IN HARAMAYA MARKET ...................................................................................... 40 TABLE 38: PROPORTION OF VEGETABLES TRANSPORTED TO DIRE DAWA ..................................................................... 40 TABLE 39: MAJOR SUPPLY OF POTATO TO KOMBOLCHA MARKET ................................................................................. 41 TABLE 40: SUPPLY OF ONION ........................................................................................................................................ 42 TABLE 41: SUPPLY OF POTATO...................................................................................................................................... 43 TABLE 42: SOURCES OF SUPPLY OF HORTICULTURAL PRODUCTS TO CONSUMERS (%) .................................................. 49 TABLE 43: THE QUANTITY PURCHASED PER MARKET DAY IN KG .................................................................................. 49 TABLE 44: PURCHASING FREQUENCY AND QUANTITIES PURCHASED BY THE CONSUMERS (EASTERN TOWNS) .............. 51 TABLE 45: PROPORTION OF CONSUMERS WHO RANKED THE CONSTRAINTS OF PURCHASING THE RESPECTIVE PRODUCTS AS THE TOP THREE PROBLEMS (%) ..................................................................................................... 52 TABLE 46: WHAT SHOULD BE DONE TO IMPROVE CONSUMPTION OF HORTICULTURAL PRODUCTS? .............................. 52 TABLE 47: PROPORTION OF RESPONDENTS WHO RANKED THE MARKETING PROBLEMS AS ONE OF THE TOP THREE PROBLEMS (%) .................................................................................................................................................... 57 TABLE 48: AVERAGE MONTHLY CONSUMER PRICE OF HORTICULTURE PRODUCTS MARKETED AT HARAR MARKET (SEPT. 2005 TO AUG. 2006) (BIRR PER KG) ......................................................................................................... 61 TABLE 49: MARKETING MARGIN (BIRR/QT) .................................................................................................................. 62 TABLE 50: PRICES OF MAJOR FRUITS AND VEGETABLES EXPORTED TO DJIBOUTI .......................................................... 63 v List of Figures FIGURE 1: COMPOSITION OF CONSUMERS BY INCOME SOURCE (%) ............................................................................... 11 FIGURE 2: TYPICAL CROPPING PATTERN IN EASTERN HARARGHE, EASTERN ETHIOPIA ................................................. 14 FIGURE 3: PROPORTION OF HOUSEHOLDS HAVING CROPLAND AND IRRIGABLE LAND ................................................... 18 FIGURE 4: TYPES OF SEEDS USED BY FARMERS TO PRODUCE HORTICULTURAL CROPS (N=128) .................................... 21 FIGURE 5: FARMERS' ASSESSMENT OF CHANGES IN VOLUME OF SALES OF HORTICULTURAL PRODUCTS........................ 23 FIGURE 6: POTATO YIELD (QT/HA) ............................................................................................................................... 25 FIGURE 7: INPUT SUPPLY CHANNEL............................................................................................................................... 30 FIGURE 8: MAJOR HORTICULTURE MARKETS AND FLOW IN EASTERN ETHIOPIA ............................................................ 38 FIGURE 9: MAJOR MARKET ACTORS ALONG THE MARKET CHANNEL ............................................................................. 45 FIGURE 10: TREND OF EXPORT OF HORTICULTURAL PRODUCTS .................................................................................... 48 FIGURE 11: CHANGE IN QUANTITY AND REVENUE ........................................................................................................ 48 FIGURE 12: AVERAGE PRICE OF POTATO AT KOMBOLCHA MARKET .............................................................................. 60 vi ACRONYMS AIQCI AISE ARDO CATVC DAs DCG ECC-SDCOH ETFVMSC FGD IPC MD MOARD MOTI NGOs OARD PA PRA QSCAE qt USD WARDO ZARDO Agricultural Input Quality Control and Inspection Agricultural Input Supply Enterprise Agriculture and Rural Development Office Chiro Agricultural Technical and Vocational Training College Development Agents Drylands Coordination Group Ethiopia Catholic Church Social and Development Coordinating Office of Harar Ethiopia Fruits and Vegetables Marketing Share Company Focus Group Discussion International Potato Center Man days Ministry of Agriculture and Rural Development Ministry of Trade and Industry Non Governmental Organizations Oromia Agricultural and Rural Development Peasant Association Participatory Rural Appraisal Quality Standard and Control Authority of Ethiopia Quintal (100 kg) United States Dollar Woreda Agriculture and Rural Development Office Zonal Agriculture and Rural Development Office vii ACKNOWLEDGEMENTS Several people contributed to the successful accomplishment of this work. The management of DCG Ethiopia in general and Mr. Abiy Alemu in particular were very helpful facilitating the assignment. Staffs of CARE Ethiopia especially Ms. Komi Alemu and Mr. Asmare Ayale were helpful in facilitating the logistic and the data collection process. The eastern Hararghe and western Hararghe zone Agriculture and Rural Development Offices, Haramaya, Kersa, Kombolcha, and Chiro Agriculture and Rural Development Offices, the Harari Agricultural and Rural Development Office, Trade and Industry Development Agency, Dire Dawa Agriculture and Rural Development Office, Quarantine and the Dire Dawa Customs Office are among the many organizations that cooperated in providing the necessary data and facilitated the data collection in their respective areas. Without the willingness of the traders, farmers, consumers, middlemen, and experts to respond to the questions, this work would not have been possible. Mrs. Hedija Mohammed helped in the data analysis. Mrs. Lauren Naville and Mr. Moti Jaleta read the draft report and gave useful comments which helped to improve the report. The authors appreciate their contributions and thank them all. The authors viii EXECUTIVE SUMMARY The study was conducted in selected major horticulture producing woredas, namely Kombolcha, Haramaya, Kersa (for vegetables) and Dire Dawa (for fruits). The study aims at assessing the marketing channels, organizations, linkages and lines of movements of horticultural products and production inputs to understand the major constraints of marketing functions and opportunities to improve horticulture production and marketing. The data collection was conducted in September 2006. A survey was conducted using structured and semi-structured questionnaires to collect primary data from 141 producers and 95 consumers. Moreover, PRA tools were used to collect information from groups and key informant producers, traders, transporters, exporters, institutions involved in extension, input supply and marketing. The following provides a brief summery of the findings of the study. Production: Different types of vegetables are grown in the study area with different intensities in terms of land and other input allocation, purpose of production, and marketability. The most commonly grown vegetables in terms of the number of growers are Irish potato, cabbage, onion, carrot and beet roots. Only 23% of the respondents (N=141) produce fruits. The production is concentrated in the lowland areas. Most of the households have few plants often grown for consumption although a limited amount is also sold. Vegetables provide the most intensive production system where some farmers produce them in three cycles within the same year. But two cycles are very common. Irrigation water is crucial for horticulture production. Hence, most of the vegetable producers rely on irrigation mainly to harvest their products during the dry season when the price is also high. High fertilizer and animal manure intensity is used. Since the land size is small, the fertilizer use intensity is high. About 31% of the vegetable producers used local varieties. Improved varieties needed to produce the desired product are said to be unavailable. Pesticides are used by some 33% of the sample respondents. About 74% of them acquired it from known sources while some 11% purchased it from unknown sources. There are observations of adulteration of inputs affecting germination qualities of seeds and efficacy of pesticides. Input supply system: Improved seeds, fertilizers and pesticides are supplied through different channels. Seeds and pesticides are either collected from local producers or imported for further distribution. Fertilizers are imported. The role of unions in importing and distributing inputs is growing. Currently there are some 11 unions importing fertilizer. The regional governments deal and facilitate input supply through the unions to member cooperatives and then to farmers. The Ethiopian Agricultural Inputs Supply Enterprise (AISE) is a major public institution involved in inputs importing, collecting and distributing through its branch offices at woreda level. Traders also play a crucial role in supplying inputs. Production constraints and opportunities: The major horticulture production constraints include pests, drought, shortage of fertilizer, and price of fuel for pumping water for irrigation. Lack of desired seed variety was also stated. The opportunities for increasing horticulture production include the increase in market integration, the need for intensive production in response to increasing population pressure, farmers' awareness of the benefits, the current outreach program in relation to supportive government policy, attempts made in water harvesting, etc. ix Horticulture marketing: Vegetables and fruits are produced in some specific locations in the eastern part of Ethiopia and supplied to the local markets and to the neighboring countries. The major markets identified for collection and distribution of large volumes of vegetables are Haramaya, Finkile, Harar, Kombolcha and Dire Dawa. The market actors namely producers, collectors, brokers, transporters, traders, consumers, and exporters play different roles along the market chain. Irish potatoes and onion/shallot are the most commonly marketed vegetables accounting for about 60 and 20% of the marketed products. The other products such as cabbage, beetroots and carrot, garlic, green pepper, Baharo, lettuce and tomato are marketed at relatively smaller quantities by few farmers. The leafy vegetables are often supplied from the woredas within the eastern region to markets in the eastern towns including Djibouti while relatively less perishable and highly demanded vegetables such as Irish potatoes and onion, are also supplied from markets in Addis Ababa and eastern Shewa zone of Oromia to these markets depending on the seasonal supply deficit in the region. The production is seasonal and price is inversely related to supply. During the peak supply period, the prices decline. The situation is worsened by the perishability of the products. Storage facilities are poor. Along the market channel 25% of the product is spoiled. Farmers’ bargaining power is low due to the lack of alternative market outlet. The most common marketing channel immediately available to the farmer is through brokers. There are up to three brokers between the producer and the trader. Each of the brokers makes a known margin of Birr 5-10 per quintal. The traders/wholesaler and the producer do not have any contact in which case the broker is decisive in setting the price, often making his own margin (unknown to both trader and producer). There is no norm or regulation governing the acts of the brokers and their behavior negatively affects the farmers. Every market actor makes its own market margin. Hence, the more the farmers organize themselves and access the terminal market, the more they benefit. Marketing problems: The major constraints of marketing include lack of markets to absorb the production, low price for the products, large number of middlemen in the marketing system, lack of marketing institutions safeguarding farmers' interest and rights over their marketable produces (e.g. cooperatives), lack of coordination among producers to increase their bargaining power, poor product handling and packaging, imperfect pricing system, lack of transparency in market information system mainly in the export market. Informal transaction prevails in the export system. Producers and local traders receive value for their products only after the exported product is sold. There is a lack of standard for quality control and hence lack of discriminatory pricing system that accounts for quality and grades of the products. Recommendations: Different recommendations are forwarded. The most crucial ones are organizing the traders and the producers to work as partners. Building their business capacity and overcoming their constraints and capacitating them to use market information are important. Putting the market right through institutionalizing the marketing system, the commission agents' functioning, x grades and standards, improving the export system by improving the transparency in the price setting and credit system are crucial interventions. Finally, the government should review the export price, which is determined through negotiations. xi Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia 1. INTRODUCTION 1.1 BACKGROUND More than 85% of the Ethiopian population, residing in the rural area, is engaged in agricultural production as a major means of livelihood. However, the agricultural productivity is low due to use of low level of improved agricultural technologies, risks associated with weather conditions, diseases and pests, etc. Moreover, due to the ever increasing population pressure, the land holding per household is declining leading to low level of production to meet the consumption requirement of the households. Hararghe highland is one of the highly populated areas in Ethiopia. As a result, intensive production is becoming a means of promoting agro-enterprise development in order to increase the land productivity. Horticulture production gives an opportunity for intensive production and increases smallholder farmers' participation in the market. The production of horticultural crops is a major element of the farming system of some of the woredas1 in the eastern part of Ethiopia such as Fedis, Haramaya, Kombolcha, Kersa, Meta, Kurfa Chelle, Grawa, Jarso in eastern Hararghe zone and some other woredas such as Gemechis in western Hararghe zone, and Dire Dawa Provisional Administrative City Council. In the areas where irrigation water is available and farmers have access to the market, horticulture production is a major source of cash income for the households. Horticultural products are supplied to the local markets and exported to Djibouti and Somalia. Horticulture production and marketing is one of the major sources of livelihood for a large number of farmers, transporters, middlemen and traders in the area. The Ethiopian Rural Development Strategy document has given emphasis to market-led agricultural development that will be achieved by establishing and implementing grades and standards, improving the provision of market information, expanding and strengthening cooperatives, and improving and strengthening private sector participation in the agricultural system. The growing government support for market integration and agro-enterprise development provides an opportunity for the horticulture growers and market actors. This indicates that the government is using policy support as one of the mechanisms for creating investment opportunities in the horticulture sector for production, transportation, grading, exporting and financing the venture. It has been, however, witnessed that farmers are price takers and the middlemen and exporters are major gainers of the business. Farmers are often losers or receive a marginally low share of the price paid by the consumers for the horticultural products. The few studies available were made on few commodities such as potatoes and pointed out that there is a greater need to diversify export earning options by improving the quality of produces supplied to the export market and enhancing the efficiency of the marketing system to contribute to the economic growth of the country. Nevertheless, little or no information is available on how to do this and particularly on how to improve the life of poor producers by increasing their share of the market price and enhance farm productivity. In order to address these issues and generate further knowledge on the production and marketing of horticulture in the study area and inform policy makers as well as use the 1 Ethiopia is a federal state of regions. Every region is administratively structured into zones and zones are divided into woredas, which is similar to the district level administrative unit. Every woreda is divided into Peasants Association (PA), which is the lowest administrative unit. The PAs are called kebeles in the urban areas. 1 Drylands Coordination Group knowledge gained as basis for designing local level development programs, this study was commissioned by CARE Ethiopia and DCG Ethiopia to two national consultants (Dr. Bezabih Emana and Mr. Hadera Gebremedhin). The study was conducted in the major horticulture producing woredas and major horticulture market centers in the eastern part of Ethiopia and the data collection was done in September 2006. 1.2 OBJECTIVES The overall objective of the study was to assess constraints of maximum use of opportunities in vegetable production and marketing in the eastern part of Ethiopia. The specific objectives were: 1. To assess the marketing channels, organizations, linkages and lines of movements of horticultural products and production inputs; 2. To assess major constraints of marketing functions (production, processing, grading, buying and selling, transportation, storage, financing, etc.); 3. To analyze national and local government policies, strategies and practices related to marketing and production of horticulture crops; 4. To identify and inform government, chambers of commerce and NGOs with possible strategies that would support horticulture production and marketing to improve the economy of the region and more specifically the income of poor farmers. The first three objectives have been addressed in the study process and results have been documented while the fourth objective involves continuous attempts and forums to disseminate the results and advocate on how to overcome the constraints and make the maximum use of the identified opportunities. 1.3 ORGANIZATION OF THE REPORT The report is organized into 11 chapters. The first chapter provides background, objectives, and organization of the report and limitation of the study. Chapter 2 describes methodology on data collection and data analysis. Chapter 3 describes some characteristics of producers and consumers. Chapter 4 deals with horticulture production covering farming systems, type of horticulture crops produced, inputs used, production level, income from the sub sector and profitability. Chapter 5 deals with the input supply system while chapter 6 assesses the constraints and prospects of horticulture production. Chapter 7 deals with horticulture marketing functions covering market centers, marketing channel, facilities/infrastructure, constraints and opportunities for horticulture marketing. Chapter 8 discusses the prices of fruits and vegetables. In chapter 10, gender disaggregated horticulture production and marketing decisions are highlighted. Finally recommendation and conclusions are outlined in chapter 11. 1.4 LIMITATIONS OF THE STUDY Marketing of horticulture products in the eastern part of the country extends to markets in the neighboring countries. The time and logistics budgeted for the study could not, however, allow for an assessment of the markets in Somalia and Djibouti, which are the export markets for fruits and vegetables. Thus, only a few key informants and secondary information have been used as source of information to obtain preliminary information about the external markets. 2 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia The secondary data collected at different levels sometimes show inconsistence. In this case, the research team was forced to rely on grassroots primary data. There is also administrative restructuring where some PAs and woredas are split, as it was the case in Chiro woreda in west Hararghe zone. Since this is a new phenomenon, the structure during the last production season was used. 3 Drylands Coordination Group 2. METHODOLOGY 2.1 DATA COLLECTION The major vegetable producing woredas in Hararghe are Kombolcha, Haramaya, Kersa, Kuni, Meta, Hirna and Jarso woredas. Kombolcha, Dire Dawa and Haramaya are serving as a medium for both export and domestic vegetable marketing centers, because of their long border with Somaliland and Djibouti and transport network (air, train and road). The study was conducted in eastern Ethiopia during September 13 - 28, 2006 in selected horticulture producing woredas and horticulture marketing towns/cities. A survey was conducted in four sites, namely Haramaya, Kersa, Kombolcha and Dire Dawa to collect primary information on production, marketing and consumption of horticulture products. The four study sites were purposefully selected in consultation with the clients and concerned Offices in eastern Hararghe, western Hararghe and Dire Dawa. The Hararghe Zone Agriculture & Rural Development Office was instrumental for the selection of the major vegetable suppliers since the woredas in eastern Hararghe are the major producers of vegetables for marketing. Dire Dawa Provisional Administrative City Council Agriculture and Rural Development Office were also consulted in the sampling of appropriate PAs for the assessment of fruit production in the woreda. The data collection intended to generate the necessary information along the horticulture production and marketing channel/chain. Accordingly information about production potentials and constraints, transportation, storage, product handling, prices, marketing systems and constraints, consumption, etc. were collected. The data collection, therefore, required visiting different actors along the marketing channel2. Accordingly, the primary data were collected at three levels: from producers, consumers, and intermediaries. The following sub-sections provide the tools used for data collection from the different sources. 2.1.1 Producers’ survey A two stage sampling technique was used to select the producers. Firstly, in consultation with the respective Woreda Agriculture and Rural Developments Offices, the PAs in each woreda were clustered into two: horticulture producers and non-producers. Two horticulture producing Peasant Associations (PAs) were randomly selected in each of the woredas. Secondly, the sample farm households were randomly selected for the interview from the selected PAs. It was originally planned to interview 40 farmers in each woreda, though it was difficult to access the intended number in Dire Dawa Provisional Administrative City Council3. Table 1 shows the specific study sites and the number of horticulture producers included in the survey. 2 We chose to use the Marketing Channel when discussing the product flow between producers, market actors and consumers. Since there is no value adding process as such in horticulture marketing in the study area, the value chain analysis is not appropriate at this moment. 3 Farmers producing fruits in Dire Dawa woreda were suspicious of the land tenure system and did not want to appear for the interview during the data collection period. Those found were convinced about the purposes of the study and cooperated to provide the necessary information. 4 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia Table 1: Distribution of sample horticulture producers included in the survey Sr. No. 1 2 3 4 5 6 7 8 Kebele Chefe Anani/Walta'a Lammi Bilisumma Finkile/Bate Ifa-Oromiya Kosum/Burqa Jalala Metaqoma Bishan Bahe Lega Dol/Lega Harree Total Kombolcha Source: Own sampling (September 2006) Woreda Haramaya Kersa 20 20 Dire Dawa 20 20 20 19 20 19 20 20 40 39 Total 40 10 20 20 10 12 22 12 141 Structured and semi-structured questionnaires and checklists were used to collect data from producers and consumers. The survey questionnaire was administered by experienced and qualified enumerators employed from Haramaya University. The producers' questionnaire includes questions relevant for assessment of production potential, input use, constraints of production, marketing extent of horticulture products, market centers, marketing agents, pricing, packaging, transportation and associated cost, marketing problems and potentials perceived by the producers, etc. (see Annex 1). 2.1.2 Consumers’ survey Consumers were interviewed in major towns along the horticulture marketing channel, namely Haramaya, Kersa, Kombolcha, Harar and Dire Dawa. The consumers were selected based on systematic random selecting technique. Firstly, the kebeles in the town were randomly selected and then respondents were systematically randomized in such a way that the enumerators were guided and visited to the residences of the respondents at fixed intervals and interviewed 20 households per kebele. The major purpose of the consumers’ survey was to get an impression of local consumption of horticultural products and assess constraints associated with consumption so that possible interventions for improvement of horticulture production and marketing can be identified. In total 95 consumers were interviewed using a structured questionnaire (see Annex 2) of whom 74% were female. The fact that the household activities including purchasing and cooking of food is mainly the responsibility of women and girls, the high ratio of female respondents reflects the reality on the ground. Table 2 shows the distribution of respondents by sex and town. Although some farmers also purchase horticultural products, which they do not produce, emphasis was given to urban dwellers. The sample size is proportional to the size of the town/city where population is taken as an indicator of size. Accordingly, the sample size is larger for bigger towns (42% for Dire Dawa), 24% for Harar, 16% for Kombolcha, 11% for Haramaya and 7% for Kersa. 5 Drylands Coordination Group Table 2: Number of consumers included in the survey by sex Location Haramaya Dire Dawa Kombolcha Kersa Harar Total Source: Own survey (September 2006) Sex of the respondent Male Female 4 6 9 31 6 9 1 6 5 18 25 70 Total 10 40 15 7 23 95 2.1.3 Focus group discussion Besides the primary data collection from producers and consumers, general information about the production potential, constraints, marketing channels, marketing functions and constraints were assessed in the intensive focus group discussions using a detailed checklist prepared for this purpose. Focus Group Discussions (FGD) and key informant interviews were made with groups and community leaders, key informants, and knowledgeable people on the subject in the study areas covering five woredas in both eastern and western Hararghe zones of Oromia Regional States, Dire Dawa and Harari Regional State. The discussions were held with elders, youth, and women farmers, and responsible persons of different institutions. Moreover, the data generated in collaboration with experts at various levels was supported by field observations. Furthermore, FGD were conducted with traders, transporters, brokers, etc. in Dire Dawa, Harar, Haramaya, Kersa, Kombolcha, Finkile and Chiro towns. From the 51 participants of the FGD, 39 were involved in production while 12 were involved in marketing (see Annexes 3 and 4). Furthermore, six exporters were contacted in Dire Dawa where they were clearing and loading their products to Djibouti and three other wholesalers at Kafira market in Dire Dawa were also approached to discuss marketing of vegetables and fruits. 2.1.4 Secondary data Additional data were also collected from secondary sources. Different offices such as the Agriculture and Rural Development Offices of the zones and woredas, Micro and Small Scale Development Enterprise, Trade and Industry, Customs Office, etc. in Dire Dawa were major sources of secondary data. Time series bid price information was also collected from Haramaya University to understand the trends in vegetable prices. The Dire Dawa Plant Quarantine, Federal Seed Agency, Horticulture Development Enterprise, and Ethiopian Fruits and Vegetables Marketing Share Company, and Quality Standard and Control Authority of Ethiopia have all provided information on the subject. 2.2 DATA ANALYSIS The data collected from primary sources were coded and entered into SPSS computer software. The data were checked for consistence and completeness and analyzed. Frequencies, cross-tabulations, means and ratios were computed. Moreover, factors determining the productivity of major horticultural crops and marketed volumes of vegetables, price situations, etc. were computed. The following chapters present the results of the analysis. 6 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia 3. SOME CHARACTERISTICS OF THE RESPONDENTS 3.1 PRODUCERS 3.1.1 Demographic features Age and sex composition are the major demographic features used to characterize the producers. Although efforts were made to account for gender representation, the actual random sampling resulted in only 2 female headed households from the 141 sample producers. But attempts were made to interview the household head in the presence of his spouse so that the responses account for the views of the women. In the study area (eastern Ethiopia), men are often responsible for farm work and the woman has the major responsibility in the reproductive tasks, marketing of smaller quantities of farm products and purchase of food and non-food items for consumption. The respondents' age ranges from 16 to 68 with an average of 38 years. About 24% of the producers fall below 30 years and 50% of them are more than 40 years old. The respondents have an average of 17 years of experience in horticulture production (ranging from 2 to 50 years) and hence could provide information related to the constraints and potentials of promoting the horticulture sector. The horticulture production system is often intensive and requires more labor for cultivation than the cereal production does. The household provides a major source of labor for crop production. The labor available for work per household is directly proportional to the family size. The family size of the respondents ranges from 1 to 13 with an average of 7. On average 43% of the household members are able to work (Table 3). Accounting for children below 16 and elders of above 60 years as dependents4, the dependency ratio was calculated. The results show that 57% of the households depend on the active labor force of the household since they are unable to take part in the income generation process. Table 3: Average household size and dependency ratio Household size Working members Woreda Male Female Total* Male Female Total* Kersa 4.03 3.51 7.45 1.78 1.28 2.89 Kombolcha 3.97 3.64 7.36 1.67 1.69 3.00 Dire Dawa 3.19 4.14 7.33 1.52 2.12 3.05 Haramaya 3.33 3.23 6.33 1.82 1.77 3.18 Total 3.69 3.57 7.09 1.72 1.66 3.03 * Weighted average and accounting for intra household gender differences Dependency ratio 0.61 0.59 0.58 0.50 0.57 Source: Own survey (September 2006) In terms of the marital status of the producers, 93% of all the sample respondents were married while about 4.5 and 2.2% of them were unmarried and widows respectively. There are no significant differences among the sample respondents in terms of age, sex and marital status (Table 4). 4 Although some children below 16 years of age are involved in farming, they significantly contribute to herding rather than cultivation per se. 7 Drylands Coordination Group Table 4: Marital status of the household heads by woreda Woreda Kersa (N=40) Kombolcha (N=40) Dire Dawa (N=22) Haramaya (N=39) Total (N=141) Married 92.31 100.00 95.45 86.49 93.28 Unmarried 5.13 4.55 8.11 4.48 Source: Own survey (September 2006) Widowed 2.56 5.41 2.24 Total 100.00 100.00 100.00 100.00 100.00 3.1.2 Education Education is a crucial factor for skill development and enhancing effective production and marketing decisions. The survey shows that 58% of the producers do not have formal education while about 16% attended high school level education. The smallest proportion of those who attended high school level education is found in Haramaya woreda (Table 5). Table 5: Level of education of the household heads by woreda Education Level No formal education Primary education Secondary Total No. of respondents Kersa 60.0 22.5 17.5 100 40 Source: Own survey (September 2006) Kombolcha 65.0 20.0 15.0 100 40 Woreda Dire Dawa 45.5 31.8 22.7 100 22 Haramaya 56.4 33.33 10.3 100 39 Total 58.2 26.2 15.6 100 141 As children share information with parents, the knowledge gained in school is instrumental in influencing parents' decisions. The importance of education is getting momentum whereby 82% of the respondents have at least one child attending school with an overall average of about 3 children per household attending school (Table 6). Education is an instrument for bringing about attitudinal change and enabling girls to take part in making decisions affecting their future. Table 6: Average No. of children in school per sample household Woreda Kersa Kombolcha Dire Dawa Haramaya Total Source: Own survey (September 2006) Male 2.6 1.5 1.6 2.0 2.0 No. of children in school Female 1.8 1.7 1.9 1.5 1.7 Total 3.2 2.7 3.3 2.2 2.8 3.1.3 Means of livelihood The respondents depend on different means of income generation strategies. Crop production is a major source of income for the majority of the producers. About 96% of the respondents earn their living from horticulture production as a primary source. Grain and legume crops production is considered as the second major means of livelihood of the producers. The area that does not have any irrigation possibility is allocated to maize, sorghum and haricot beans. Khat (Catha edulis) or coffee production takes the 3rd and 4th rank respectively in terms of the number of households that depend on them as a means of livelihood (Table 7). This shows 8 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia that the study sites are appropriate for the assessment of horticulture production and marketing constraints. Livestock production is limited by the shortage of grazing area and hence by critical shortage of feed. Only 44% of the sample respondents have oxen, which is 1.6 on average. Cattle are reared for milk production, which is an important dietary source in the hoja5. On average there are two cattle of which at least one is a milking cow per household. Moreover, there are about 3 sheep and 3 goats per sample households though only 42% of the respondents own sheep and 65% own goats. Farmers also participate in off-farm activities to generate supplementary income during slack production seasons. Petty trade is a major off-farm activity. The participants of such trading activity could make an average income of Birr 59 per market day. About 10% of the sample producers stated that they participated in off-farm income generating activities. Among the respondents, only 3% make subsidiary earnings from trading of Khat and vegetables. Table 7: Major means of income generation of the horticulture producers Income sources/livelihood strategies Frequency Percent 136 92 68 66 96.5 Horticultural production Grain and pulse production Livestock production Khat /coffee production Income generating activities such as retailing and flour mill service Khat trading 7 3 Horticulture trading Total Source: Own survey (September 2006) 3.2 65.2 48.2 46.8 5.0 1 2.1 0.7 141 100 Relative importance 1 2 3 4 5 6 7 CONSUMERS As stated above, 74% of the respondents are females that are involved in the purchase and preparation of vegetables. The respondents are adults of ages ranging from 22 to 74 years with an average of 37. The consumers have an average of 21 years (minimum 4 and maximum 67 years) of experience in purchasing fruits and vegetables for consumption. 3.2.1 Demographic features The household size determines the volume of purchase of horticultural products. The average family size of the consumers is 5 persons and ranges from 1 to 13. On the other hand, the purchasing capacity of the household depends on the income the household generates. In a labor based household economy where the income of the household depends on the labor availability, the number of able family labor determines the income level. The survey result shows that for every one working person there is a minimum of one dependent person. The number of female members of the household is only slightly higher than the number of male members, which is consistent with national statistics. 5 Hoja is a stimulant drink prepared from coffee pulp or leaves to be used like tea when chewing Khat. 9 Drylands Coordination Group Table 8: Consumers' household size and family labor availability Sr. No. 1 2 Number of members in the household Male members of the household Female members of the households N 95 95 Minimum 0.00 1.00 Maximum 7.00 6.00 Mean 2.51 2.71 3 Total family size 95 1.00 13.00 5.19 4 Male working persons in the household Female working persons in the household 95 0.00 6.00 1.23 95 0.00 4.00 1.17 Total number of working persons 95 0.00 9.00 2.40 5 6 Source: Own survey (September 2006) With regard to the level of education of consumers, the survey result shows that about 43% of the respondents attended education until secondary school or the level above. On average, the sample consumer household has two children attending school, with insignificant difference between the number of school boys and girls. Table 9: Level of education of the household head (consumers) Level of Education No formal education Primary education Secondary Collage level (Diploma) University level (Degree) Total Source: Own survey (September 2006) No. of respondents 21 33 32 8 1 95 Percent 22.1 34.7 33.7 8.4 1.1 100.0 3.2.2 Means of livelihood of the consumers The urban consumers earn their income from different sources and the purchasing power of the consumer depends on his/her income level. Figure 4.1 shows the composition of the consumers included in the survey. The largest proportion of the respondents (48%) earns its income from employment while the next largest proportion earns it from trading. About 8% of the sample includes consumers who earn their income from skill based activities such as mechanics, drivers, etc. Some three percent of the consumers are also involved in farming although they are urban/town dwellers. 10 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia Figure 1: Composition of consumers by income source (%) Renting houses 2% Other means (skill based) 8% Farming 3% Trade 39% Employment 48% Source: Own survey (September 2006) In Hararghe, vegetables are commonly used as part of the diet. Onions, potatoes, carrots, tomatoes and cabbage are consumed even by poor households at different intervals. The consumers were asked to estimate their monthly/annual income and the proportion of income they spend for the purchase of horticultural products. The result shows that the average annual income per household is Birr 11,841, which means that the per capita income is about Birr 2,370 (USD 272). There is, however, a difference in income level of the sample consumers in different towns/cities which increases with the size of the town/city (Table 10). On average about 10.5% of the income is spent for horticulture consumption. Table 10: Annual income and its proportion allocated for the purchase of horticultural products Location Haramaya Dire Dawa Kombolcha Karsa Harar Weighted average No. of respondents 10 41 15 6 23 95 Source: Own survey (September 2006) Mean income (Birr per year) 12,728 13,352 13,820 4,655 9,344 11,841 11 Proportion of income used for consumption of horticulture (%) 12.0 9.6 12.3 17.5 8.2 10.5 Drylands Coordination Group 4. HORTICULTURE PRODUCTION In Ethiopia, vegetables and fruits are produced in smallholders and some state-owned farms. The lion share in terms of area and produce comes from the smallholder sector. According to MOARD (2005), about 99% of the area allocated to horticulture production is cultivated by smallholders, which produced 428,752 tons of fruits and 2,107,292 tons of vegetables. The total share of smallholders' produce during 2003 was 97% of the national supply. It is reported that in 2004 about 45,0392ha of land was used for vegetable and fruit production which is 0.05% of the total area under cultivation, while in 2003 the total production of vegetables and fruits was 24,526,712 qt. 4.1 FARMING SYSTEM IN THE AREA The farming system in both highland and lowland areas is mixed farming. Farmers produce different crop enterprises in order to secure their family food supply and also cover various household expenses. Keeping animals in their homestead to provide feed by the cut and carry system is commonly practiced in the highland areas where the farmland is small. The production system in the study area can be described in two ways, i.e., rain-fed and irrigated systems. The rain-fed production system is most dominant and is practiced by the majority of the farmers in the study area. Farmers mostly produce potato, sweet potato, and local cabbage together with cereals. The horticultural crops are often produced using irrigation. Intercropping is also practiced by farmers to grow two or more crops simultaneously on the same land. The crops may or may not be planted or harvested at one time. Intercropping has numerous advantages such as: • Greater stability of yield over different seasons; • Increased fertility of the soil; • Better use of resources; • One crop provides physical support to the other crop; • Erosion control through providing continuous leaf cover over the ground surface. In addition to this it serves as insurance if in case one crop fails since different crop varieties have different merits in terms of tolerance to diseases, pests, moisture stress, etc. The system is very good for small farmers owning limited land area as they can produce two or more crops on the same piece of land they own. The findings of the study reveal that only 12% of the horticulture producers intercropped vegetables with other crops during the last production year. This is due to the small area allocated to vegetable production, economic use of irrigation water and expected high yield for cash generation. On the other hand, different parcels of the same plot are allocated to different types of vegetables and fruit trees, which are intercropped with other horticultural crops. The vegetable production system depends on several factors such as the land size, availability of water, existence of adequate market demand, and availability of inputs such as seeds, fertilizers, pesticides, etc. Eastern Hararghe has different geographical and ecological conditions. For instance, in the relatively highland areas of Jarso, Deder, Haramaya and Meta, the farmers plant potato and sweet potato during the short rainy season (early March) and harvest it in early June so that the land will be used for the long season cereal crop production (wheat, barely, oat, and other legumes). In areas where there is irrigation water in the two main production seasons (MarchJune) and meher (June to September), vegetables are produced during the dry season on land used for cereals and other crop production as rain-fed. In areas like Haramaya, Kombolcha and Kersa, vegetable production is determined by the market situation. 12 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia Double cropping is the production of two crops on the same plot of land in a year. Such a practice is possible in the study area due to the bimodal nature of the rain. The farmers produce the first crop during the short rainy season in February/March (1st cycle) and harvest it in June/July and plant the 2nd crop in June/August to harvest it in October/November. Some farmers indicate that they could produce vegetables in three cycles during a year. But the technical production requirement indicates that crop varieties should be synchronized in order to use the land three times a year (See Figure 2). The extent of the third cropping is very low in the low land areas due to a very short growing period and uncertainty of rainfall during the short rainy season. In some of the study woredas, farmers use irrigation either to supplement certain crops or use irrigation throughout the dry season of the year. Under such circumstances, a limited 3rd cycle of production may be possible. The notion of increasing crop intensity requires a strong technological improvement through research so that short cycle varieties are introduced. Table 11 shows the extent to which farmers practice double/multiple cropping in vegetable production. Table 11: Area allocated to vegetables during the different production cycles Vegetables Cabbage Beetroots Carrots Onion Irish potato Tomatoes Baharo All vegetables Cycle I* Area N (Qindi)+ 38 0.39 24 0.35 20 0.41 36 0.88 87 1.09 10 0.65 6 0.37 119 1.51 N 36 25 22 19 57 3 8 84 Cycle II** Area (Qindi)+ 0.42 0.44 0.47 0.50 1.33 1.00 0.33 1.62 Cycle III*** Area N (Qindi)+ 8 0.57 7 0.47 5 0.31 4 0.56 24 0.99 3 32 0.42 1.20 * Feb./March to May/June; ** July/August to October; *** November/December to January/February + 1 Qindi = 0.25 ha Source: Own survey (September 2006) The results show that cabbage, onion, potato, carrot and beetroot are the most commonly grown vegetables during the two cycles. On average 0.35 ha of land is allocated to vegetable production during the two cycles and helps increase land use intensity. The first cycle which involves planting of vegetables in February/March requires irrigation supplementation while the third cycle indicated by the farmers starts from October/November and depends entirely on irrigation. 13 Drylands Coordination Group Figure 2: Typical cropping pattern in eastern Hararghe, eastern Ethiopia Type of crops Jan. Quarter I Feb. March Sorghum /maize April Quarter II May Quarter III June July Rain-fed system Vegetables August Sept. Oct. Quarter IV Nov. Dec. 2nd cycle Crops Onion/potato Sequence of vegetable production with irrigation (3 cycles)/year 1st cycle Beet roots Carrot/cabbage 3rd cycle 3rd cycle Free Source: Own survey (September, 2006) 14 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia 4.2 TYPES OF HORTICULTURE PRODUCED IN THE AREA 4.2.1 Vegetables Different types of vegetables are grown in the study area with different intensities in terms of land and other input allocation, purpose of production, and marketability. The most commonly grown vegetables in terms of the number of growers are Irish potato, cabbage, onion, carrot and beetroot (Table 12). As a result, emphasis is given to these vegetables for an in depth analysis. Table 12: Proportion of households producing vegetables (2005/06 production year) Sr. No. 1 2 3 4 5 6 7 8 9 10 11 Crops Irish potato Cabbage Onion Carrots Beetroots Tomatoes Baharo Kale Pepper Lettuce Sweet potatoes Sample size Source: Own survey (September, 2006) No. of producers 118 48 43 34 34 12 11 9 8 7 2 141 Percent 83.7 34.0 30.5 24.1 24.1 8.5 7.8 6.4 5.7 5.0 1.4 100.0 Relative importance 1 2 3 4 4 6 7 8 9 10 11 4.2.2 Fruits Only 23% of the respondents (N=141) produce fruits. The production is concentrated in the lowland areas. Some of the respondents grow 1-4 different types of fruit trees while others have none. Papaya is relatively widely grown followed by mandarin, gishta and orange. Most of the households have few plants often grown for consumption although a limited amount is also sold. The production is based on gardening (for non-irrigated) and field level production under the irrigated system. About 52% of the fruit producers use irrigation, mainly in the Dire Dawa area. Table 13 shows the number of farmers owning fruit trees and the number of plants owned. A good quality species of papaya was introduced to the Dire Dawa area through the government extension system. The buyers also confirmed that the quality of the newly introduced papaya is preferred. The output is appreciated by the producers since a papaya tree produces 75-150 fruits attracting a good price of Birr 1.00 per piece. In the highland area, the Hararghe Zone Agriculture & Rural Development Office is striving to expand fruit production such as mango and other fruits conducive for highland areas. 15 Drylands Coordination Group Table 13: Number of fruit trees per household Sr. No. 1 2 3 4 5 6 7 8 9 Type of fruit Orange Mandarin Mango Papaya Gishta Guava/Zeituna Banana Peaches Others No. of respondents No. of producers 8 10 7 16 8 2 1 1 2 % of HH 24 30 21 48 24 6 3 3 6 33 100 Minimum Maximum number number 3 70 15 100 2 15 2 100 1 15 3 5 10 10 1 1 8 30 Mean 38 59 7 39 4 4 10 1 19 Source: Own survey (September, 2006) Due to the small number of producers of fruits, a detailed production related analysis was not done in this study. However, the opinions from the experts and field observations confirm the existing potential to expand fruit production in this part of the country. 4.3 INPUT USE FOR HORTICULTURE PRODUCTION 4.3.1 Land allocated for horticulture production The assessment of the landholdings of the woredas included in the study shows that the overall holding averages at about 1.05 ha. Table 14 shows the landholding in each of the sample woredas and the proportion of land that can be irrigated. Overall, the sample producers irrigate only 45% of the land under their disposal. Although vegetables are produced using rainwater, high income is earned from the production of vegetables produced under irrigation since the harvesting time can be scheduled for the period of high price i.e. the dry seasons. Thus, the irrigable area and availability of irrigation water determine the area allocated to vegetables and thereby determine the extent of income generated from vegetable production. The woreda level data shows that the area allocated to vegetable production accounts for 5-30% of the total crop area, where the lowest proportion is found in Dire Dawa and the highest is in Haramaya. In Harari region, the proportion of land allocated to vegetables is reported to be high although the absolute figure was low. Table 14: Average cropland holding, irrigable land and use intensity (ha) Land type Crop area Irrigable area Total N 39 29 40 Kersa Area 1.5 0.75 Source: Own survey (September, 2006) Kombolcha N Area 40 0.5 40 0.28 40 Dire Dawa N Area 18 0.80 22 0.35 22 Haramaya N Area 36 0.94 38 0.51 39 Total N Area 133 1.05 129 0.49 141 Smallholder farming is characterized by fragmented farmland. Due to land scarcity, land fragmentation, in terms of number of plots, is not a serious problem in the study area. About 86% of the farmers have a plot in just one place with only a few farmers having scattered plots at 3 sites. Horticulture growers have plots in relatively flat (83% of respondents), with medium (65% of plots) and high (29% of the plots) fertility status as judged by the farmers. 16 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Irrigation water, good weather conditions, absence of pests and diseases, and land suitability are key factors essential for horticulture production. 4.3.2 Irrigation In the three woredas of eastern Hararghe and two woredas of western Hararghe zones of the Oromia Regional State, Dire Dawa Provisional City Administration and Harari Regional State, farmers use irrigation to supplement horticulture production during the dry seasons. The information gathered during the focus group discussions made with the development agents and the zonal and woreda experts of ARDO, shows that 81 of the 200 peasant associations (i.e. 40%) produce vegetables and fruits under the irrigation system. The survey also indicates that 89% of those using irrigation apply it for vegetable production (Table 15). The amount of water needed for irrigation depends on the stage of crop growth, the depth of the rooting zone, and the field capacity of the soil. Thus, the amount of water applied should vary according to the stage of plant growth. Vegetables grown for their fruits must get sufficient water during the time between flowering and fruit maturity. The other vegetables should be irrigated at regular interval and the amount of water depends on the stage of growth. In the study area, frequency of irrigating vegetable fields is on average 7 times during dry season while the rate declines for fruits and Khat to 4 and 3 times respectively. Regarding soils, under the same climatic conditions, soils with low field capacities (sand and sandy loam soils) require a small amount of water for irrigation per application but more frequently than soils with high field capacities (silt loam and clay loam soils). Table 15: Types of crops produced by using irrigation Crops Vegetables Fruits Khat Sugar cane Total No. of respondents Source: Own survey (September, 2006) Frequency 119 16 20 1 133 % 89 12 15 1 100 The amount of water needed for irrigation is also a function of land size. The study result shows that 80% of the producers have less than 0.75 ha (3 Qindi) of irrigable land while 45% have less than 0.25 ha (1 Qindi) (Figure 3). Thus, the farmers with a relatively large size of land will obviously require more water for irrigation than the farmers with a small land size. As a result, they invest in an irrigation water pumping motor while those with smaller farm sizes rely on exchanging the irrigation service with labor for field work or just mutual assistance of the neighbors to use the irrigation facility by covering only the operating costs. 17 Drylands Coordination Group Figure 3: Proportion of households having cropland and irrigable land 45.0 40.0 35.0 Percent 30.0 25.0 20.0 15.0 10.0 5.0 0.0 0 < 1.0 1.1-3.0 3.1-5.0 5.1-7.0 >7 Area in Timad % of household having cropland % of household having irrigable land Source: Own survey (September 2006) Irrigation water comes from different sources including boreholes, river/springs, ponds and lakes. Most of the farmers rely on boreholes and river/springs for irrigation (Table 16). The agricultural development strategy of the country encourages farmers to harvest rain water by constructing ponds. The survey shows that the sample farmers did not consider ponds as major sources of irrigation water (Table 16). On the other hand, there are 735 boreholes and 803 pumps in operation in the studied woredas. The most commonly used irrigation system is furrow followed by sprinkler (Table 17). Table 16: Source of water for irrigation Source of irrigation water Ponds Boreholes River/springs Lakes Total Source: Own survey (September 2006) Frequency 9 97 46 4 133 % of farmers 7 73 35 3 100 Table 17: Proportion of households with different methods of irrigation Methods of irrigation Furrow Sprinkler Basin Total Source: Own survey (September 2006) Frequency 138 12 5 133 18 % of farmers 104 9 4 100 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia 4.3.3 Labor Labor is an important factor of agricultural production. Smallholder farmers rely on family labor for land preparation, planting, cultivation, weeding, irrigation, fertilizer application, pesticides application, harvesting and transporting of the product. The assessment of the different sources of labor used in horticulture production shows that 80% of the respondents rely on family labor while 60% work on reciprocate labor exchange system where the work is done in group and at the end everybody gets its share (Table 18). This system is useful to accomplish a given farm activity in a limited timeframe to ensure uniform planting, plant growth and maturity. The different vegetables produced require different amount of labor inputs. The average labor input per ha of the major vegetables was 165 man-days. Table 18: Sources of labor for horticulture production Source of labor Family labor Labor exchange Hired labor Assistance Total No. of cases Source: Own survey (September 2006) % of respondents 80 60 13 2 141 Table 19: Labor use for selected vegetable crop production Labor inputs Labor used in man days (Md) Labor input per ha (Md) Source: Own survey (September 2006) Cabbage Beetroots 15.2 17.5 136.0 206.0 Carrots Onion 16.4 19.9 198.3 183.9 Irish potato 28.4 104.3 4.3.4 Fertilizer and manure Farmers apply animal manure and chemical fertilizers such as DAP and Urea to improve soil fertility and increase production. The use of manure is common in the study area while the use of composite is not. Animal manure is transported from homestead to the field mostly during the dry season and spread in the field. From the sample producers interviewed, 72% used manure to fertilize land used for potato production. To some extent, farmers also used manure for onion, cabbage, beetroots and carrot production (Table 20). 19 Drylands Coordination Group Table 20: Number of respondents applying animal manure to vegetables List of crops produced with inputs Irish potato Cabbage Onion Carrots Beetroots Tomato Pepper Baharo Lettuce Kale Sweet potato Sample size Source: Own survey (September 2006) Frequency 102 40 36 31 28 11 8 8 6 6 2 141 % of all farmers 72.3 28.4 25.5 22.0 19.9 7.8 5.7 5.7 4.3 4.3 1.4 100.0 Although there are some aggregation errors due to the small area allocated to the vegetables, the fertilizer application rate appears to be high. More than 2.5 qt of DAP and Urea is applied to potato and beetroots although the recommended rates are 100 - 150 kg/ha of DAP and 150 200 kg/ha of Urea. On the other hand, only a small amount of fertilizer is applied to some of the vegetables such as cabbage and carrot (Table 21). Table 21: Use of chemical fertilizer for selected vegetable crops Inputs Amount of DAP fertilizer used (qt) Amount of Urea fertilizer used (qt) Dap input (qt/ha) Urea input (qt/ha) Source: Own survey (September 2006) Cabbage Beetroots Carrots Onion 0.3 2.0 0.4 0.4 0.3 2.0 0.4 1.0 2.7 7.1 4.6 4.0 2.9 7.1 5.3 6.5 Irish potatoes 2.5 2.5 4.0 4.0 4.3.5 Seeds/seedlings Adequacy and quality of vegetable seeds are crucial for increased production. This means that the seed of needed traits should be timely acquired from reliable sources to ensure high determination and increased yield. The existing traditionally irrigated areas are affected by insects like cut worm causing severe damage. Therefore, treated seeds should be used and if treated seeds are not available the untreated seed should be distributed only after applying seed treatment with suitable chemicals against seed borne and soil borne diseases. From the sample producers who identified the sources of the vegetable seeds, 56% used both improved and local varieties while 31% used only local varieties (Figure 4). This goes in line with the fact that the participants of the group discussions underscored the problem of lack or shortage of appropriate type of improved seeds of vegetables which are needed by the market. 20 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Figure 4: Types of seeds used by farmers to produce horticultural crops (N=128) Local 31% Local and improved 56% Improved 13% Source: Own survey (September 2006) 4.3.6 Pesticides The provision or availability of suitable pesticides, especially for vegetable production, is an important input. Pests can considerably affect the yield of all crops under irrigated conditions, so that the farmers might lose interest in its cultivation as observed in other areas. One cannot speak of cultivating vegetables under irrigation without appropriate pest and disease control mechanism. Farmers in the study area including Dire Dawa, Kersa, Kombolcha, Haramaya, Chiro, Gemachis and Harari control Aphids, bollworm, leaf eaters, thirps, fruit flies powdery mildew and blights on vegetables and fruits by pesticides. The results of the survey show that 46 farmers (33%) used pesticides at an average amount of 1 kg/liter. The amount ranges from 0.02 to 3.5 liters. Under emergency situations such as invasive occurrence of army worms and desert locusts, chemicals are sprayed by the government and farmers do not pay anything to purchase the chemicals6. Under normal farming situations, however, farmers purchase pesticides from different sources as given in Table 22. Most of the farmers purchase pesticides from known sources in the market (74%) including traders and shops while about 11% purchase it from unknown sources. Shortage of pesticides and high price could be the reasons why farmers opt for illegal sources. About 9% of the respondents received pesticides through the Agriculture and Rural Development Office. Cooperatives also provided pesticides to only a few farmers. Unlike local seeds, farmer to farmer transfer of pesticides is rare. Table 22: Source of pesticides purchased by farmers Source Agriculture and Rural Development Office Known market source Unknown market sources/illegal Cooperatives Total number of respondents Frequency 4 34 5 3 46 Source: Own survey (September 2006) % 8.7 73.9 10.9 6.5 100 As displayed in Table 23, the high price of pesticide is the most common constraint of using pesticides. The low quality of pesticides is encountered by 24% of the users, which is a significant problem. A large number of farmers purchased pesticide from illegal sources, indicating that the quality problem exists in the pesticides’ distribution channel. 6 The side effect of chemical use in the study area is not studied. 21 Drylands Coordination Group Table 23: Problems encountered in using pesticide Problems associated with use of pesticides Low quality (adulterated) High price Lack of safety devices Unavailability when it is needed Total No. of respondents Frequency 11 43 1 5 46 Source: Own survey (September 2006) 4.4 % 24 93 2 11 100 VEGETABLE PRODUCTION, SUPPLY AND INCOME The average land allocated for the production of vegetables during the first cycle of production (March to June) and the long rainy season (July to October) is about 0.41 and 0.38 ha respectively. The third cycle was practiced by only a few farmers (Table 24). The results show that land allocated to vegetable production during the third cycle is larger at Kersa and Haramaya due to relatively better access to irrigation during the dry season. Table 24: Area allocated to vegetables and number of producers in different woredas Woreda Kersa Kombolcha Dire Dawa Haramaya All woredas N 37 31 16 35 119 Cycle I Area (ha) 0.50 0.26 0.27 0.41 0.38 Source: Own survey (September 2006) N 23 24 3 34 84 Cycle II Area (ha) 0.67 0.24 0.29 0.36 0.41 N 4 13 2 13 32 Cycle III Area (ha) 0.33 0.28 0.15 0.35 0.30 An average of 25 qt of vegetables could be produced per producer during the two production cycles, and about 12 qt during the third cycle though the number of farmers engaged in the production during the third cycle is small. Table 25 shows the mean production and cash income from sales of vegetables as reported by the respondents. From the total production of vegetables, 88% was sold while the remaining 12% was consumed. For certain vegetables, the seeds needed for the next production cycle are provided from the own production. In the case of potato, for example 80% was sold, 11% consumed and 1% used for seed whereas 89% of the onions were sold and 1% was used for seed the remaining balance being consumed. Seeds of some vegetables such as cabbage and tomato need to be purchased for very production cycle. 22 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Table 25: Production and utilization of vegetables Cycle I Sales income (Birr) 690 527 591 953 1540 1453 684 Production Vegetables (qt) Cabbage 11.4 Beetroots 8.1 Carrots 7.3 Onion 10.4 Irish potato 17.3 Tomato 12.1 Baharo 8.7 All vegetables 25 2102 Source: Own survey (September 2006) Cycle II Sales Production income (qt) (Birr) 11.0 505 8.3 599 8.7 626 7.8 886 17.5 1670 4.7 420 9.0 541 26 2032 Cycle III Sales Production income (qt) (Birr) 6.7 335 10.1 636 9.4 598 9.3 562 15.9 1366 All Cycles 9.7 700 Sales (%) 89 87 92 89 80 89 91 20 1551 88 Consumed (%) 11 13 8 10 11 11 9 12 The farmers involved in vegetable production generated a cash income of about Birr 2,000 during the first and second production cycles (Table 25). The observations made during the field visit shows that the farmer who produces for the market is relatively in a better position and has a water pumping motor to effectively use his/her land during the two production cycles. A crop loss due to different factors is significant. The farmers estimate pre-harvest vegetable loss at an average of 14% while the post harvest loss was 12% of the yield. Traders could lose up to 25% of the product due to poor storage and unfavorable weather conditions. Poor packing and transportation systems also aggravate the damage. In order to understand the changes in the supply of vegetables, farmers were asked to express their opinion. As shown in Figure 5, 64% of the respondents believe that the supply of vegetables over the last five years increased. Figure 5: Farmers' assessment of changes in volume of sales of horticultural products The same 10% Dcreasing 26% Increasing 64% Source: Own survey (September 2006) The major reason for the increased yield of vegetables is farmers' awareness of the benefits of production and marketing of vegetables and that farmers have given more attention to vegetable production due to its comparative advantages to generate a higher income (Table 26). This might also be the reason why some farmers rent in land to expand vegetable 23 Drylands Coordination Group production and use yield increasing inputs such as improved seeds, fertilizer, pesticides and irrigation. Table 26: Reasons why production/supply increased during the last 5 years Sr. No 1 2 3 4 5 6 Reasons Vegetables yield higher income than cereals, hence more attention is given Increased yield compared to cereals Use of commercial inputs and increase land size (rent) Large number of farmers are producing them It needs a short period of time for production Good market for the products No. of respondents Source: Own survey (September 2006) Percent of respondents 26.5 22.7 21.2 18.2 7.6 3.8 91 Other studies also confirm the opinion that the overall vegetable production, especially of potato, over the last 10 years increased due to the remarkable increase in the market outlet to Hargessa, Bossaso, Hamer, Djibouti and Hartishek. Increasing intensification of production is a mechanism for overcoming the impacts of land shortage and the farmers use this strategy to increase income (Zemede, 2006). On the other hand, 26% of the respondents felt that the supply decreased. The opinion revolves around respondents’ own experiences. Those indicating a reduction in the amount they supply to the market state low price or lack of demand as a cause of reduced production (51%). Some of the producers attribute the reduction to natural factors such as floods (29%) and some attribute it to lack of inputs (20%). The conclusion from the assessment is that the overall supply of vegetables increased due to the expansion of the area under production or increased productivity while individual producers might have encountered reduced production at different woredas. In conformity with the farmers' opinion, the yield of potato, the most widely marketed vegetable in the study area, fluctuated much in Kombolcha woreda and was stable at Haramaya, with a very slight increment during the last five years (Figure 6). This justifies the differences in opinion of the respondents. 24 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Figure 6: Potato yield (qt/ha) 140 120 Yield (qt/ha) 100 80 60 Kombolcha 40 Haramaya 20 0 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 Production year Source: Computed based on Zemede (2006) 4.5 PROFITABILITY OF HORTICULTURE PRODUCTION 4.5.1 Cost of production The cost of producing vegetables and associated gains in terms of yield and profit was demonstrated taking two sample products at different locations. Potato production at Finkile and cabbage production at Ifa Oromia of Haramaya woreda were considered. The calculations are based on typical case studies, representing average farmers, in the two sites where the parameter estimates were made in a participatory manner with the community members who are involved in the production and marketing of these products. A half-hectare of land was used as a case study for the production of potato and a quarter hectare was used for cabbage production. The total variable cost of producing potato in Finkile area is Birr 5,310 per ha while cabbage production costs Birr 6,152 per ha in Ifa Oromia area (Table 27). An important cost parameter in this calculation is the unit cost of production which determines the decision to continue production or not when it is compared to the unit revenue. The case study demonstrates that the unit cost of producing a quintal of potatoes at Finkile is about Birr 45 while that of cabbage is about Birr 52 at Ifa Oromia of Haramaya woreda. The high unit cost of cabbage is due to its low yield as compared to potato. This calculation, however, does not account for overhead costs, though the opportunity costs of the fixed asset are small. 25 Drylands Coordination Group Table 27: Cost of production of selected vegetables Potato production at Finkile Oromia (Haramaya) Items Area (ha) Irrigation frequency Irrigation running cost (fuel) Fertilizer Urea (qt) Dap (qt) Cost of fertilizer (Birr) Labor for crop management (Md) Harvesting (Md) Cost (@10 Birr/Md for Finkile and @5 for Ifa Oromia) Pesticide (birr) Depreciation of pump (birr) Seed (Birr) Total variable cost (Birr) Unit cost (Birr per ha) Unit cost (Birr per qt) Yield (qt/ha) Source: Own survey (September 2006) Physical quantity 0.5 5 Value (Sales at Finkile market) 500 2 2 Cabbage production at Ifa Oromia (Haramaya) Value (Sales at Physical quantity Haramaya) 0.25 4 232 0.5 0.5 800 20 20 400 16 10 400 30 550 375 2,655 5,310 44.25 120 120 260 40 550 56 1,538 6,152 51.3 4.5.2 Production and marketing efficiency Production efficiency is measured by computing the gross margins and profits earned from production and marketing of horticultural products. Cost and yield data given in Table 27 and marketing cost information are used to compute the desired efficiency indicators. Alternative markets for selling the products were assumed. That is the producers can choose between selling the potato to a wholesaler at Finkile market or transport it to Dire Dawa while the Ifa Oromia farmer can either sell the cabbage to traders in Haramaya or transport it to Dire Dawa. Gross margin is the difference between the Production value and the variable cost. The production value is quantity produced multiplied by the market price while the variable cost is the amount of money spent for the purchase of direct inputs such as fertilizer, seed, etc. or estimates of the opportunity costs of inputs not purchased (e.g. labor cost). The gross margin per ha of potato is Birr 9,690 if the product is sold at Finkile and Birr 13,890 if it is sold at Dire Dawa (Table 28). Selling the product at Dire Dawa, however, involves marketing costs of Birr 1,020. Hence, the profit per ha becomes Birr 11,850. That means, the benefit accruing to the farmer by producing a quintal of potato increases from Birr 80.75 to 98.75 indicating a 22% gain due to marketing at the terminal market. Similarly, the gain from producing a quintal of cabbage increases from Birr 73.7 to 86.7 which is an increase by 17.6%. The implication is that as the producers access the terminal market and sell their produce at higher prices, the marginal gain increases. 26 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Table 28: Production and marketing efficiency at primary and terminal markets Identification and Explanation A Parameters Production ( 0.5 ha at Finkile and 0.25 at Ifa Oromia, Haramaya) (qt) B Price (Birr/qt) C={AxB} Income (Birr) D Total cost (Birr) E={C-D} Gross margin F={E/Area} Gross margin per ha (birr) G Transport cost to DD @10 Birr/qt from Finkile and @5 from Ifa Oromia , Haramaya H Loading unloading @2 Birr /qt I Commission/broker @5 Birr per qt J={G+H+I} Total marketing cost K={E-J} Gross profit L={K/Area} Profit per ha M=K/A} Profit per qt N={J/(J+D)x100 Proportion of marketing cost in total cost O Marketing gain P Incremental gain due to marketing (%) Value (Sales at Finkile market) Sales at Dire Dawa Value (Sales at Haramaya market) Sales at Dire Dawa 60 60 30 30 125 7,500 2,655 4,845 9,690 160 9,600 2,655 6,945 13,890 125 3,750 1,538 2,212 8,848 150 4,500 1,538 2,962 11,848 4,845 9,690 80.75 Source: Own survey (September 2006) 27 600 150 120 300 1,020 5,925 11,850 98.75 27.8 1,080 22.3 60 150 360 2,602 10,408 86.7 19.0 390 17.6 2,212 8,848 73.7 Drylands Coordination Group 5. INPUT SUPPLY SYSTEM 5.1 INSTITUTIONS AND POLICIES In its economic development policy and strategy document, the Ethiopian government has stressed the need to accelerate the transformation of the agricultural sector from subsistence to a more business/market-oriented agriculture (EFDR, 2005). The poverty reduction strategies are implemented using key intervention instruments under PASDEP including developing market infrastructure, development of agricultural credit markets, specialized extension services for differentiated agricultural zones and types of commercial agriculture, development of national business plans and tailored packages for specialized exports, area irrigation through multipurpose dams, measures to improve land tenure security and reforms to improve the availability of fertilizer and seeds; provision of market information; and strengthening private sector participation in agricultural marketing; strengthening and diversifying autonomous cooperatives; strengthening agricultural research, expanding the water harvesting techniques and small-scale irrigation, water resources development and utilization, and building the capacity of the labor force. The strategies listed above that the government uses as instrument to transform the agricultural sector are crucial for smallholders' market oriented development and increased marketability. Although policy, strategy and practices on vegetables and fruit as a sub-sector of agriculture lack specific reference to horticulture as outlined in proclamations and regulations of the various ministries and agencies of the government, it has not received enough attention when compared to the other sectors such as coffee, pulses and oil crops. However, recently it is receiving attention within the Ministry of Agriculture and Rural Development and is now elevated from an obscure unit/section to a Department status (MOARD, 2005). Regional States such as Oromia have also established regional marketing agencies to strengthen the marketing functions. There are policy frameworks that would enable marketing, distribution and use of agricultural inputs. Particularly, there is no policy limitation at the highest level concerning seeds, fertilizers and pesticides as indicated in proclamations and regulations (EFDR, 1990; ESA, 1990). Proclamation No. 137/1998 of the Federal Democratic Republic of Ethiopia specifies the mechanism of fertilizer trade in Ethiopia. Fertilizer is imported from abroad, while seeds and pesticides are either imported or locally produced and formulated. Formal engagement in the trade business of these inputs requires competence assurance certificates from relevant government agencies. At the lower levels of the administrative structure, there is a serious limitation on the strategies and practices in terms of enforcement, regulation and control of qualities and procedures related to distribution, marketing and handling of inputs and outputs. Particularly, the relevant agencies lack experience and capacity to implement the policies and strategies at the grass root level. In fact agencies like the Quality Standard and Control Authority of Ethiopia in Dire Dawa have stopped certifying outgoing fruit and vegetable exports to Djibouti. 5.2 INPUT SUPPLY CHANNEL Seeds, fertilizers, and pesticides are the three major inputs used to increase horticultural production in the study area. The survey results show that seeds, pesticides, implements like spraying machines and water pumps are imported and distributed to the countryside through 28 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia various channels. This section discusses the major input supplying mechanisms and the constraints of production. Currently, there are 26 seed, 14 fertilizers, and 27 pesticide importers formally registered to operate in the country. Two semi-private companies, one public (Agricultural Inputs Supply Enterprise (AISE)) and 11 Unions are the major agricultural input importers in Ethiopia. On the other hand, research institutes and higher education institutions also import vegetable seeds through international research partnerships for experimentation purposes, which ultimately reach farmers. The imported or locally supplied inputs reach farmers from retailers, cooperatives, ARDO and AISE branch offices found at zonal or woreda levels. Modern/improved agricultural technologies are therefore accessed by farmers through different mechanisms. One notable mechanism is the free market channel in which traders import inputs or collect them from local supplies and sell them to retailers or large farms. This is the mechanism through which farmers access the inputs in the market and purchase the inputs on their own terms. The other means of getting improved seeds, pesticides and fertilizer is the channel involving unions and AISE as importers and then government institutions such as the regional, zonal and woreda agriculture and rural development office and cooperatives. In this case, farmers' needs are assessed at woreda level by the staff of the woreda agriculture and rural development office. Then a request for the amount of inputs needed is submitted to the zonal Rural and Agriculture Development Office, which will further submit the request to the regional agriculture and rural development office. The regional office then solicits a credit arrangement for the input supply (serving as a collateral), and purchases the needed input from Unions or AISE. The unions channel the inputs to zonal and/or woreda level cooperatives while the AISE channels them to its branch offices. The respective bodies at zonal/woreda level then distribute the inputs to farmers. This channel is inefficient in that it leads to delays in the supply of inputs. Moreover, the inputs can reach farmers through demonstration of research activities by researchers and academia and through NGOs in the form of development support using seeds as tools of interventions (Figure 7). There is also farmer to farmer improved inputs transfer as for example farmers in Kersa and Dire Dawa woredas get potato tubers supplied by Haramaya University from fellow farmers. 29 Drylands Coordination Group Figure 7: Input supply channel Zonal/woreda level Federal/regional level Input Supply system for Horticulture in Eastern Ethiopia Import Researchers Retailers Local Supply Traders ARDO Union Cooperatives Farmers AISE AISE Branch Farmer Source: Own structuring based on PRA information in the study area (September 2006) 30 NGOs Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia 5.2.1 Seeds/seedlings Seeds and other propagation materials (seedlings, suckers, etc.) should only be obtained from a reliable source7. The knowledge of identifying the right varieties and use of the respective inputs based on the recommendations given either from the research institutions or from agricultural extension by the Ministry of Agriculture and Rural Development, are crucial for increased productivity. In the study area, it was observed that the seeds were, in some instances, selected based on price. Seeds should be selected based on quality rather than price as cheap seed often proves to be expensive in the end. Almost all vegetable seeds and planting material are imported with import licenses and production permits with the exception of local seeds. There are 26 registered importers, 31 producers, 40 distributors, 4 processors and 4 exports of seed. Apparently, most of the firms are dealing with field crops such as cereals and pulses while the importers also import vegetable seeds. Agricultural Input Supply Enterprise (AISE) is a major supplier of improved seeds in all woredas surveyed. The ARDO is reported as one of the suppliers of the vegetable seeds in only two of the seven woredas (Table 29). Farmer to farmer seed transfer is the most popular way of accessing vegetable seeds. Potato seeds/tubers are accessed from fellow farmers. Private sector involvement in seed supply is also indicated. In this case, farmers purchase vegetable seeds from shops. Cooperatives are not active in the distribution of seeds. Table 29: Sources of improved seeds of horticultural crops in the study area PA/Woreda Haramaya Kombolcha Kersa Dire Dawa Harari Chiro Gemechis Total NGO - 3 Office of Agriculture Seeds AISE Farmer Private Cooperatives traders 2 Source: Own PRA study (September 2006) - 7 7 5 2 The results of the producers’ survey also indicate that, from those who are using improved seeds, more than 90% of them purchase improved seeds from known market sources such as shops. Interesting is also that some farmers purchase improved seeds from unknown sources. This is attributable to shortage of the required varieties of seed from known sources. The fact that farmers reported poor germination of some of the seeds they purchase indicates inherent risk of failure of seeds from unknown sources. Table 30 shows the different sources of improved seed supply. 7 Expired seeds and pesticides were observed in Haramaya, Kombolcha, and Dire Dawa. 31 Drylands Coordination Group Table 30: Farmers' response on sources of improved seed Sr. No. 1 2 3 4 5 6 Sources of seed Agriculture office Known market source Unknown market sources Cooperatives Fellow farmers Own source No. of respondents N 3 83 7 1 3 6 88 * Multiple sources possible Source: Own PRA study (September 2006) % of respondents* 3 94 8 1 3 7 100 The farmers indicated that the role of research institutions such as Haramaya University in the improved seed supply system is very much limited. Apparently, there are proven vegetable varieties at the University which could benefit the farmers. However, an appropriate system of extension and seed supply has not been in place. 5.2.2 Fertilizer DAP and Urea fertilizers are imported from abroad and distributed mainly by the Ministry of Agriculture and Rural Development, Cooperatives and the Agricultural Inputs Supply Enterprise. Fertilizer is packaged in 50 kg bags which is sometimes not conducive for farmers having a small irrigated area that needs smaller packages such as 12.5 kg and 25 kg. The fertilizer distributed by the government institutions does not, sometimes, arrive on time for application. The sample producers indicated that most of the producers who used fertilizer procured it from the markets (Table 31). In the study area, fertilizer is sold in the shops and at the AISE branches from where traders can also purchase and sell. Moreover, the ARDO is the second most important source of fertilizer supplied to the farmers. The fact that government institutions are involved in the supply of these inputs creates a burden on the development agents in making an assessment of who needs what and how much, distribution of the inputs and then collection of the credit. Fertilizer is not distributed during the off-season whereas horticulture production particularly using irrigation needs special consideration. In a market oriented production system such as horticulture production, making the necessary inputs available and providing technical support for the farmers would yield a better result. Table 31: Source of fertilizer for horticulture production Sources of fertilizer Through Office of Agriculture Market Cooperatives Total N Source: Own PRA study (September 2006) % of respondents 28 59 13 131 5.2.3 Pesticides The provision/availability of suitable pesticides, especially for vegetable production is crucial in horticulture production. Pests can considerably affect the crop yields under irrigated conditions, so that the farmers might lose interest in its cultivation as observed in other areas. Aphids, bollworm, leaf eaters, thirps, fruit flies, powdery mildew and blights on vegetables 32 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia and fruits are protected by pesticides8 in Dire Dawa, Kersa, Kombolcha, Haramaya, Chiro, Gemachis and Harari. Farmers purchase pesticides from different sources. The major suppliers of pesticides are given in Table 32. Pesticide is supplied from different sources including from farmers, private traders, cooperative shops, AISE and through the agriculture and rural development office. Table 32: Institutions supplying pesticides PA/Woreda Haramaya Kombolcha Kersa Dire Dawa Harari Chiro Gemechis Total Office of Agriculture Institutions Private Farmer traders - 7 4 7 Cooperatives AISE 1 - 6 Source: Own PRA study (Sept. 2006) In the group discussions, farmers emphasized the fact that they have suffered from buying adulterated and fraudulent pesticides and vegetable seeds with very low germination capacity. There is not as such accountability for the chemicals supplied. Licensed and traceable sources of pesticide supply would help to overcome this problem. On the other hand, there should be legal provisions for this type of act. 5.2.4 Farm equipment As in almost all parts of the country, the farm implement used in the area is mostly an oxen drawn implement called Marsha9 and hand tools. Some farmers are aware of some modern technologies such as pesticide spraying equipment and water pumps. Most of the farmers use pumping motors for irrigating their horticulture farms. Some of these farmers even rent the equipment and render services to fellow farmers thereby earning income. The well to do farmers purchase water pumping motors while others rent or make certain arrangements for using the motors available in their villages. Sprayers are also acquired from different sources. These two important equipments are supplied by different organizations (Table 33). In this case as well, the role played by the cooperatives is low except in Kombolcha and Haramaya woredas. 8 9 These include insecticides, fungicides, herbicides, rodenticides, avicides, etc. Marasha is an iron bar with a sharp tip used for ploughing and cultivation. 33 Drylands Coordination Group Table 33: Institutions supplying sprayers/water pumps PA/Woreda Haramaya Kombolcha Kersa Dire Dawa Harar Chiro Gemechis Total NGO Office of Agriculture Institutions Farmer - 4 Private traders - AISE Cooperative - 7 6 Source: Own PRA study (September 2006) 34 5 6 2 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia 6. CONSTRAINTS AND PROSPECTS OF HORTICULTURE PRODUCTION 6.1 CONSTRAINTS There are factors that hinder the production of horticultural products in the study area. The majority of the sample producers indicate pests, drought, and shortage of fertilizer and price of fuel for pumping water for irrigation as major constraints of horticulture production. Table 34 shows the proportion of sample producers ranking the constraints of horticultural production as the top three problems of the specified crops. The problems are sometimes specific to certain vegetables. For instance, most farmers indicate that shortage of fertilizer, diseases, and frost are the most priority problems of producing potato. On the other hand fertilizer, pests and diseases, and shortage of pesticides are top constraints of production of beetroots and carrots. Water shortage or drought on the one hand and lack of fuel for pumping irrigation water, frost and fertilizer shortage on the other hand are the most important problems for onion production, which is also location and season specific. Table 34: Top three production problems (% of respondents) Constraints Oxen shortage Insects Diseases Drought Weeds Flood Frost Shortage of seeds Shortage of fertilizer Shortage of pesticides Expensive fuel for irrigation Cabbage Beetroots Carrots Onion 50 70 76 69 63 59 67 11 78 61 36 79 65 78 55 44 39 18 89 76 45 85 71 67 69 58 63 11 86 70 50 63 61 78 67 52 70 15 80 58 Irish potatoes 28 45 71 62 29 52 70 13 77 63 78 67 71 83 64 The constraints of horticultural production could be viewed from the farmers’ context, institutional factors, natural factors and infrastructure related factors. 1. 2. Farmer related: horticulture production in the eastern part of the country is based on tradition, which is poorly supported by scientific recommendations. Although one can associate this constraint to institutional factors, it is apparent that inadequate farmer skills and knowledge of production and product management affects the supply. Farmers attempt to select varieties and practice traditional crop management practices. Farmers’ know-how of product sorting, grading, packing and transporting is traditional, which severely affects the quality of horticultural products supplied to the market. This skill gap should be addressed to improve the quality of marketable horticultural products. Institutional factors are related to the provision of improved horticultural production technologies including supply of relevant varieties, agronomic practices and improved product management techniques. The study reveals that the farmers are not receiving the varieties they wish to cultivate. The capacity to distinguish between varieties is also low in the area. Institutions failed to bring up farmers’ capacity to the expected 35 Drylands Coordination Group 3. 4. 5. 6.2 level. Research based practical recommendations on agronomic practices and pre- and post harvest management are lacking at farmers level. Moreover, inputs such as fertilizer, seed and pesticides should be available through known and accountable sources. Conducive policies and enforcement mechanisms should be put the in place. Quarantine of exotic pests through the enforcement of laws by exercising phytosanitary inspection at points of their entry is essential. Institutions like the marketing agency should also make available the market information needed for production planning. The data available should enable to forecast demand to adjust production planning. The extension system lacks highly qualified staff at woreda and field level. The observation in the field depicts that some of the development agents have little knowledge compared to the farmers. Natural factors such as rainfall, water supply, flood and pests are often beyond the control of farmers and institutions. There is a shortage of irrigation water mainly in the lowland areas. Yet, contingency planning and forecasting of the events which may help to minimize the effect is not available perhaps due to traditional ways of production. Moreover, an appropriate management system including variety selection and diversification would reduce the effect of natural factors. Improving the institutional constraints discussed above will be instrumental for improving the management system. Infrastructure such as rural roads and means of communication for efficient flow of goods and market information is a limiting factor. Most of the rural area is not accessible by vehicle. The products are transported to the road side by donkeys or by people. This requires longer time to reach the market and affects the quality of the products. Moreover, there is no telephone or other fast communication systems to access market information that would assist decision making. OPPORTUNITIES FOR HORTICULTURE PRODUCTION The major prospect for expanding the production of horticulture starts from the ultimate decision maker, the producer. The survey result shows that 97% of the producers intend to expand production. The opportunities they foresee to realize the intended plan are given in Table 35. The most commonly mentioned opportunities are related to the use of improved production technologies including irrigation facility, government support and existence of high demand for products in the market. The government encourages private sector development which is instrumental for the commercial activities. The government also supports smallholders' market integration through the production of marketable agricultural commodities. The current government Plan for Accelerated and Sustainable Development to End Poverty (PASDEP) sets intensification and commercialization of agriculture as a development path during the next five years. Provision of improved agricultural technologies, provision of extension packages and farmers' capacity building, etc. are major areas of support the government has planned to provide farmers. 36 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Table 35: Opportunities for expansion of horticultural crops production Opportunities Increase in price of the product Relatively high demand in the market Possibility of using improved inputs and rent land Having a pumping machine Government support Increased production skills Availability of nearby water Land suitability Labor availability No. of respondents Source: Own survey (September 2006) % of respondents 3.2 13.9 38.0 15.8 15.2 7.0 5.1 1.3 0.6 141 As discussed above, horticultural production provides good opportunity for farmers in the study area to generate income. Despite the constraints identified above, there are opportunities for increasing horticulture production in the area. Some of them are: 1. Increasing market integration: Since horticulture production enables livelihood diversification of the population, and since farmers' awareness of the marketability of horticulture production is increasing, the prospect to expand horticulture production is high. Increasing export of potato to Somaliland and Djibouti is a major motive. 2. The culture of intensive crop production in the area: In response to declining farm size, farmers have been focusing on an intensive production system such as animal manure application, intercropping, etc. Intensive production is also consistent with the government development strategy10. Vegetable production fits into the existing cerealpulse system to increase productivity. Potato and onion do have comparative advantages to improve the food security of smallholder farmers in the area. Irrigation water availability is an integral factor for intensive production. 3. Farmers are increasingly becoming aware of production technologies and improved inputs. If the supply of these inputs is facilitated at reasonable prices, and farmer' knowledge on sustainable use of the technologies is improved, there is a potential to increase yield. In this regards, farmers training and adequate extension system play crucial role. 4. The government policy and development strategy (EFDR, 2005) identified intensive production and commercialization of agriculture as its development path. Attempts to implement this plan provide opportunities for increased horticulture production in the area. In the long run, investment in the country opens up the possibility of investment venture in vegetable and fruit processing such as potato chips and juices. This will create a reliable market for the producers, stabilize the price and motivate the producers to expand the supply. 10 The environmental effects of intensive production system that includes chemical fertilizers and pesticides in the area should be further investigated. 37 Drylands Coordination Group 7. HORTICULTURE MARKETING IN EASTERN ETHIOPIA 7.1 MARKETS FOR HORTICULTURE PRODUCTS Vegetables and fruits are produced in some specific locations in the eastern part of Ethiopia and supplied to the local markets and to the neighboring countries. The major markets identified for collection and distribution of large volumes of vegetables are Haramaya, Finkile, Harar, Kombolcha and Dire Dawa. The market actors namely producers, collectors, brokers, transporters, traders, consumers, and exporters play different roles along the market chain. Vegetables, notably, Irish potatoes, onion/shallot, kale, cabbage, beetroots and carrot are major vegetable products offered in the horticulture market. Many other products such as garlic, green pepper, Baharo, lettuce, tomato, etc. are also offered at relatively smaller quantities by a few farmers. The leafy vegetables are often supplied from the woredas within the eastern region while relatively less perishable and highly demanded vegetables such as Irish potatoes and onions, are also supplied from markets in Addis Ababa and eastern Shewa zone of Oromia. The flow of products is dictated by seasonal supply deficit. Hence, these products (especially onion/shallot and potatoes) are transported from eastern Ethiopia to Addis Ababa and vice versa. Figure 8 shows the marketing channel for major vegetables in eastern Ethiopia. The study reveals that Kombolcha, Finkile, Haramaya and Harar markets serve as vegetable collection centers where the exporters collect and export the products through Jijiga to Somalia and through Dire Dawa to Djibouti. Figure 8: Major horticulture markets and flow in eastern Ethiopia Hudane, Babile (fruits) Fedis; Jarso Jijiga/ Hargessa; Artishek, Kombolcha Market Kurfa Challe; Grawa; Kobo, Deder; Kersa; Woter, etc. Rural Dire Harar Dire Dawa Market Haramaya/Finkile Shashemene/ Rift valley/ Addis Ababa/ 38 Djibouti Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia 7.1.1 Finkile market Finkile is one of the emerging rural towns located in Finkile PA of Haramaya woreda. Due to fertile land and irrigation water potential, the area is conducive for vegetable production. Some fruits are produced in this woreda only for consumption. Some 75% of the households in the PA, with 700 households, and Qerensa (an adjacent PA to Finkile) engage in horticultural production. As a result, business particularly in horticulture and Khat marketing is flourishing. Irish potato, lettuce, beetroots, carrot, onion/shallot, cabbage, tomato, etc. are grown in the area. The farmers who used to sell their products at Haramaya market now sell them at Finkile. Brokers or collectors collect the products for traders and receive Birr 5 per qt of the amount collected. Traders in Kombolcha also use brokers or collectors in this area to purchase potato. There are about 12 horticulture traders each having the capacity to buy and sell 60 qt of horticultural products per week. Two traders have a larger capacity (three times that of the twelve traders) in terms of the capital they own for horticultural products marketing. They also own trucks for transporting vegetables to Dire Dawa and Jijiga. They provide transport services also for the other traders and collect rent. The major sales outlets are Dire Dawa and Jijiga where the traders sell their products to wholesalers and exporters in Dire Dawa and Jijiga towns. Small traders also sell products to retailers in Dire Dawa through brokers who also provide warehouse services and charge for it. The exporters in Dire Dawa collect the horticultural products every Tuesday, export them and make the payment on Friday. This implies that the collectors in Finkile also collect the products from the producers on promissory basis rather than actually paying for the commodities, which involves the risk of downward price negotiation, after the products changed hands. Different vegetable types are loaded and transported to the market centers outside Finkile. The 12 traders at Finkile market transport a truckload (about 60 qt) per week. The load is composed of the following items with an estimated proportion as shown in the following Table 36. Table 36: Major horticulture traded at Finkile Market and Outflow Type Potato Shallot/onion Baharo Lettuce Carrot Garlic Beetroot Cabbage Pepper Chinese Lettuce Total Source: Own survey (September 2006) Amount per truck load 20 10 7 4 2 1.5 2 10 2 1.5 60 % of product loaded 33.3 16.7 11.7 6.7 3.3 2.5 3.3 16.7 3.3 2.5 100.0 Based on the estimated proportion of different horticultural products, and with a supply period of 4 months during the two horticulture production cycles, a trader handles 960 qt of vegetables making the total product handled by the 12 traders 11,520 qt per year all of whom transport the vegetables to Dire Dawa. Including the large vegetable traders a total of 20,160 39 Drylands Coordination Group qt of vegetables is marketed by traders in Finkile. These traders also sell most of the products in Dire Dawa and transport only a small portion to Jijiga (about 600 qt). The products are supplied from the producers in the vicinity. During off-season, the traders also buy potato from the other woredas such as Kobo, Gara Mulata, Kurfa Challe, etc. to sell it to traders coming from Jijiga or Artishek. 7.1.2 Haramaya market This market used to be the major horticulture collection center in eastern Hararghe including producers in Kersa woreda and other woredas in eastern Hararghe. There was a horticulture marketing cooperative in Haramaya which could not compete with traders and went bankrupt. There are several retailers in Haramaya which purchase vegetables supplied in small quantities, a phenomenon common in many markets in the eastern part of the country. There are seven traders, two in Haramaya main town and five in Bati sub-town. They collect vegetables and supply them to Dire Dawa or Kombolcha towns. Some of these traders also supply vegetables for institutions such as Haramaya University, which requires vegetables and fruits for students throughout the academic year, to hospitals, hotels, etc. The traders also receive vegetables supplies (mainly onion, pepper, and potato) from Addis Ababa, and the central rift valley areas, mainly during the slack production seasons of the year ranging from January to May. It has been reported during the focus group discussions that about 500 qt. of vegetables are transported to Dire Dawa per week while nearly the same quantity is marketed within Haramaya, Harar, Jijiga and is sometimes transported to Addis Ababa (see Tables 37). Table 37: Vegetable marketing in Haramaya Market Destination Total supply to Dire Dawa per week Haramaya Harar Addis Ababa Jijiga Total amount marketed in Haramaya Amount per week (qt) 500 77 154 115 231 Proportion (%) 46 7 14 11 22 1,077 100 Source: Own survey (September 2006) Different vegetables are marketed in the Haramaya market. As shown in Table 38, however, potatoes account for the largest volume (60%) followed by onion/shallot (20%). All other types of vegetables account for the remaining 20% of the quantity traded. Table 38: Proportion of vegetables transported to Dire Dawa Type Proportion (%) Amount (qt) Potato 60.0 300 Onion/shallot 20.0 100 Carrot 5.0 25 Cabbage 5.0 25 Baharo 5.0 25 Lettuce 3.0 13 Chinese lettuce and others 2.0 12 Total 100 500 Source: Own survey (September 2006) 40 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia The finding is consistent with the previous reports which identified the volumes of potato in the market operations at 60-75% and that of onion at 15-20% (Zemede, 2006). 7.1.3 Kombolcha market Kombolcha, which is the district town, is only 15 km away from Harar town. It is accessed from two sides, from Harar and from Funyan Bira of Jarso woreda which is also one of the potential vegetable producing areas in eastern Hararghe. Kombolcha woreda is situated between Hundane, Jarso and Haramaya woredas and is conducive for vegetable production. Potatoes, beetroots, cabbage, carrot, tomato, pepper, and lettuce are produced in the woreda in order of priority in terms of quantity supplied to the market. Producers have access only to the Kombolcha market. It has been indicated that Haramaya and Kombolcha woredas supply cabbage, beetroot, tomato and carrot (25% and 75% of the supply respectively) to Kombolcha market. Traders from Jijiga and other Somali towns access Kombolcha market through Funyan Bira (Jarso) without passing through Harar town. There are some 20 traders handling vegetables in Kombolcha market. The traders compete with each other to get buyers coming from Jijiga and Somalia while on the other hand the buyers collaborate with each other and decide on the prices. Kombolcha is the major source for marketing onion and potatoes to Jijiga and Somali towns near the border and beyond. According to the key informants, an average of 4,000 qt of vegetables is transported per week to Jijiga, Artishek, and Hargessa and as far as Mogadishu during peak supply seasons and the sum could reduce to about 1,000 qt during the slack production seasons. It has been estimated that the peak production period covers 4 months whereas the remaining eight months are slack seasons. It has been indicated that the shortage of vegetable supply occurs during two months of the year. During the slack periods, vegetables are transported from distant markets. The following illustration shows the flow of potato from producers to Kombolcha markets and the duration of the supply. Table 39: Major supply of potato to Kombolcha market Sr. No. 1 2 3 4 5 Supply source to Kombolcha market Jarso Kurfa Challe/Gara Mulata/ Kersa Haramaya/Kombolcha Kobo/Deder/Chelenko Shashemene Ranking of the quantity supplied 1st Duration of supply 3 months 2nd 2-3 months 3rd 4th 3-4 months 2 months 5th 1 months Remark Quality not preferred Source: Own survey (September 2006) Key informants' interview and group discussions made with producers and traders in Kombolcha town show that nearly all the vegetables are transported to the eastern part of the country. It was estimated that 95% of the amount traded in Kombolcha town is sold to the Somali traders who sell the products at different towns in the Somali region and beyond the border. The remaining 5% is used for local consumption. Some of the low quality potatoes that are sorted out are sold for local consumption including in Harar. Accounting for the seasonal variation, an average of about 91,200 qt of vegetables is transported to these markets from Kombolcha market per year. The Kombolcha potato market benefits a number of people 41 Drylands Coordination Group involved in the process. The collectors, brokers and the workers involved in loading and unloading make a large income. 7.1.4 Woter market The Woter market is one of the local markets near the producers located in Kersa woreda. The area is suitable for vegetable production due to irrigation water availability. During the peak vegetables supply time, a large volume of onion, potato, tomato, carrot, beetroots, etc. is sold. This is a typical market where most of the producers suffer from a coordinated price cut by the traders or brokers. It has been reported during the group discussions that traders abstain from purchasing any products until the farmers feel frustrated by the lack of buyers and the vegetables, as the products perish due to hot weather. The traders, then offer low prices which the farmer cannot reject since if rejected other traders would offer only a smaller price. Farmers call it "better than just dumping". This type of coordinated manipulation of vegetable price to the disadvantage of the producers is also done by collectors or brokers at the farm gate (this will be discussed under section 7.2.3). 7.1.5 Harar market Harar is the second largest town with a large number of consumers (both institutions and households), next to Dire Dawa. There are several hotels, hospitals, clubs, and households especially employees demanding vegetables. Districts around Harar such as the Erer valley which supplies fruits and vegetables, Hundane woreda, Fedis, the major supplier of onion/shallot, and other neighboring areas supply their products to Harar market. Onion/shallot and potato are the two major vegetables handled by the traders in Harar. Fedis is the major supplier of shallot/onion between July and October. The onion from this area is transported to different markets including Dire Dawa, and other nearby towns. Moreover, onion is also transported to Addis and other regional towns in Amhara, Tigray and Oromia regional states. Depending on the seasonal availability, Harar also gets onion from other areas such as Shashemene, Arsi, Addis Ababa, etc. There are four major market days in Harar. During these days, an average of 1000 qt. of onion could be supplied during peak periods of July to September, which mostly overlaps with the harvest in Fedis. This indicates that about 120,800 qt of onion/shallot is traded in Harar per year. The following table shows the seasonal flow of onion from different sources to Harar. Table 40: Supply of onion Timeframe July to Sept. Oct. to May June Total amount in a year Total amount Amount per No. of day (qt) months (qt) 1000 4 64,000 500 200 Source: Own survey (September 2006) 7 1 56,000 800 Source Fedis, Kombolcha, Haramaya, Langay, Kersa, Chelenko, West Hararghe, Arsi/Sire, Woliso, Addis Ababa Outside Hararghe 120,800 About 14,000 qt of potato is traded in Harar. The supply channel shows that potato is supplied to Harar market from different sources, depending on the seasonal availability. More than 70% of the supply is produced in eastern Hararghe. Other sources of supply are Shashemene, Arsi and east Shewa. According to Sisay (2004), potato is produced throughout the year in Ethiopia. Moreover, the peak potato supply period in Arsi zone of Oromia is between November and March, which is the period of little supply in the eastern part of the country. 42 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia An estimated average of 75% of the supply is sold in towns in the Somali region while the remaining amount is used for local consumption. The market survey in Kombolcha revealed that the quality of potato supplied from Shashemene is inferior to the local variety produced in Hararghe in terms of perishability and shape of the tuber. This indicates that most of the local potato produce is exported through Kombolcha and the Harar market relies on the inferior quality transported from outside Hararghe. Table 41: Supply of potato Time frame For the year July to Sept. Oct. to May June April -May Supply to Somali Total amount No. of per day (qt) months 500 225 100 0 75% 5 4 1 2 Total amount (Qt) 14000 10000 3600 400 0 10500 Source Kombolcha, Haramaya, Langay, Kobo, Chalenko, etc Shashemene/Arsi Shashemene Source: Own survey (September 2006) Harar market also provides a marketing opportunity for the fruits produced in the surrounding areas and that are transported from outside Hararghe. As stated earlier, Erer Gota in the Bisidimo area supplies some mangos and banana to Harar market. Guava, orange, lemon and other fruits are also produced in small quantities. Ethfruit11 supplies some fruits, mainly oranges from the fruit farms in the Awash valley. There are many fruit retailers in Harar town that purchase fruits from farmers and sell them to make profit. There are only a few fruit shops which heavily compete with Ethfruit to trade fruits. The fruit traders also purchase fruits from large scale producers in Awash valley. 7.1.6 Dire Dawa market Dire Dawa is the largest city in the eastern part of the country. Hence, it is a destination of many of the agricultural commodities such as khat, vegetables, fruits, etc. It is also an export route for legal trade due to its connection to Djibouti. Kafira market is the terminal market for vegetables and fruits sold by small scale traders coming from Finkile, Haramaya, Kersa, rural Dire Dawa, etc. Fruit producers near the Dire Dawa town sell their produces at kafira to wholesalers or retailers or to exporters. Brokers have warehouses where the farmers/traders can unload their vegetables/fruits and the broker facilitates the sales and pay Birr 5 per quintal for the service. In case these products are not sold, they would stay but the sellers prefer to cash it due to fear of deterioration of quality as time lapses. Retailers, consumers, hotels, etc. purchase from this market. Dire Dawa market is also the export market where the products are brought from the different supply sources by truck into the compound of the railway station (Legahar). The wholesalers from these towns transfer their horticulture products to exporters in Dire Dawa. At the gate, plant quarantine inspectors make visual observations to reduce soil, dirt, sheath and straws used as packaging material. Even parthenum hystrophorous is used as packaging12. 11 12 Ethfruit is a public fruit marketing company in Ethiopia It is to be remembered that parthenium hystorium is a dangerous weed that entered into the country earlier with food aid challenging the plant quarantine system of the country. 43 Drylands Coordination Group Before the product leaves the country, it should pass through two processes, i.e., physical material movements and accompanying procedures that involve numerous institutions. These institutions have parts to play in the export process and the regulation of the exportable products. Institutions involved are Trade and Industry, Bank, Customs Office, Agriculture, Transport, Transit agents. 7.1.7 Djibouti market The Djibouti market is an important outlet for fruits and vegetables produced in the eastern, central and southern regions of Ethiopia. According to Sisay (2004), there are 10 types of vegetables and 10 types of fruits Ethiopia is exporting to Djibouti market. The major vegetables exported through this route are potatoes, onion, and tomatoes while the fruits are dominantly orange, banana, mango and mandarin. Smallholder farmers supply vegetables, mango and banana fruits while the state farms supply orange, mandarin and lemon. Some farmers who are using irrigation for production around Dire Dawa also supply fruits for the export market, through exporters. 7.2 MARKETING CHANNEL AND THE MAJOR ACTORS The marketing channel in the horticulture marketing system can be broadly categorized into four levels, namely the producers, the middlemen/brokers, traders and consumers. There are different brokers and traders with different roles in the marketing system (Figure 9). Along the marketing channels, there are different actors contributing to different and complementary marketing functions. These include production, facilitation, buying and selling, transporting, packing, sorting and, processing, etc. It is interesting to note that some key functions such as packaging, sorting and processing are poorly developed and the sense of value adding is practically not observable. The changes in the value of products as they move away from production along the marketing channel to the consumers is the increased utility by making the goods available rather than adding value in terms of increased shelf life or increased safety. This section discusses the major market actors and identifies the constraints of an efficient marketing system and the opportunities for improvement. 44 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Figure 9: Major market actors along the market channel Producers in Hararghe and Dire Dawa Broker at local market (B2) center Broker from large market center (B3) Wholesalers Retailers Traders outside Hararghe Assembler/ Collectors Farm level broker (B1) Consumers Exporters Source: Own sketching based on the market survey (September 2006) 7.2.1 Producers Horticulture crops are produced in Kersa, Haramaya, Kombolcha, Chelenko, Grawa, Kurfa Challe, Hundane, Dire Dawa area, Fedis, western Hararghe, etc. Vegetable production by smallholders in the eastern part of the region is more popular compared to fruit production. Production of fruits such as banana, mango, and papaya, orange and mandarin is limited at household level except at a few places such as the Erer Gota, Chiro (for banana) and some PAs near Dire Dawa. Farmers who produce small quantities of fruits sell them in the local markets to consumers or retailers. Orange production is made around Dire Dawa using irrigation. A large number of producers of vegetables and fruits sell their products through brokers or collectors to wholesalers or exporters. There is no direct transaction or linkage between the producers and exporters or large buyers. The wholesalers have contact persons/brokers who identify vegetables to be purchased, negotiate the price, and purchase and deliver the products. These brokers play a decisive role in the marketing system and determine the benefits reaching the producers. Onion, potato, tomato, orange and mandarin (in Dire Dawa) are often purchased in the field through this process. There are numerous actors handling the product along the channel between producers and consumers. 7.2.2 Collectors Collectors are found in small towns like Woter, Finkile, Haramaya, Langay and Kombolcha to collect vegetables and deliver them to traders in big market centers such as Haramaya, Harar, Finkile, and Dire Dawa. The collectors have small capital. Hence, the recipient traders advance some amount of money to the collectors and through this make sure that the product 45 Drylands Coordination Group will be delivered to them. The collectors are closely associated with brokers who work at grassroots level as well as with those coming from bigger marketing centers. In the markets where the producers sell their products, mainly during the peak supply period, the collectors fix the prices, which is often very low. 7.2.3 Brokers There are middlemen in all locations with the exception of Dire Dawa and Harar since in these cases the suppliers and consumers are in close proximity. Three types of brokers are common. The farm level broker/agent identifies plots with good produces and links the producer with a local broker. High in the hierarchy of the channel is the local broker, located in the small nearby towns. The local broker (B2) links the farm level broker (B1) and the urban broker (B3) in Figure 9. The local broker is a key marketing agent who communicates with the farmer and conveys the decisions made by the local broker or collector. The producers have contact with the local agents and do not have direct contact with the other intermediaries. The urban broker (B3) gets the information from ultimate buyers and sets the price. Neither the farmer nor the trader set actual prices for the products. If the farmer insists on negotiating the price, the brokers gang up and boycott purchasing of the product, leaving the product to rot. The vegetable brokers receive commissions from the traders ranging from Birr 5 to 10 per qt. The farm level and local broker gets Birr 5 while the urban broker gets Birr 10 per qt. The price may embed an undeclared margin. This price is communicated to the farmer through the lower two agents. If there are several brokers in an area, they negotiate not to compete on the price offered by one broker. Some reasons provided by the brokers when telling the farmer about the low price is "lack of demand or buyer in the terminal market". They may also tell the buyers in the terminal market about low supply and high competition and inflate the prices. The commission for fruit collectors in the Dire Dawa area is higher than what is paid for vegetables. The farm level broker gets 10 Birr/qt, while the local broker/collector gets 20 birr/qt in the market center and the third collector gets 30 birr/qt. These three are syndicate and well organized. As the trader always makes his/her own profit margin, it is the producer who bears the cost and hence benefits least from the marketing system. 7.2.4 Retailers There are three types of traders, namely retailers, wholesalers, and exporters. Retailers include supermarkets, green grocers, vendors, hotels, restaurants, cafeteria, etc. which are available in all the markets studied. The retailers purchase vegetables and fruits from producers, assemblers/collectors, wholesalers or Ethfruit. Some of the retailers have fixed working spaces and licenses while others work as street vendors. Retailers provide opportunities for producers who offer products in smaller quantities to sell their products. Some vegetables such as onion/shallot, potato, tomato, pepper, etc. are needed in the hotels and restaurants. Fruits are sold as juices in the cafes. The purchasing capacity of the hotels depends on the demand they have and their capital and 20 to 50 qt of horticultural products could be purchased per market day for such processing and sales to consumers, as finished product. 7.2.5 Wholesalers Wholesalers purchase from other traders, collectors, or producers. But the major channel of supply for quantities large enough to supply to exporters is collected following the longest market chain: Producers-Brokers-wholesalers-Exporters. Retailers are many in number and operate in all the towns. Wholesalers are available only in larger horticulture market centers 46 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia such as Finkile, Haramaya, Harar, Kombolcha and Dire Dawa. Exporters to Djibouti are found in Dire Dawa while those exporting to Somalia come from the Somali region. 7.2.6 Exporters According to Sisay (2006), in 2002 alone about 36 countries imported Ethiopian fruits and vegetables. About 74% of the quantity exported was imported by Djibouti. The revenue generated from the export was Birr 11,279,211 of which 59.529% was received from the export to Djibouti. Other major importers were Sudan (5.2% of the volume and 6.6% of the value), Yemen (3.8% of the volume and 3.7% of the value), India (2.3% of the volume and 2.01% of the value), Netherlands (1.6% of the volume and 9% of the value), Italy (1.8% of the volume and 4.8% of the value), etc. About 80% of the horticulture export was made through Dire Dawa. The survey results also show that a total of about 98,660 qt of vegetables is transported towards Somali region per year. The information from the traders indicates that most of these products may cross the border to Somalia. In the key informants’ interview, farmers and traders indicate that the export outlet is the major motive for increased production and marketing of potatoes. This indicates that horticulture products worth a million Birr are traded in this manner. Exporters purchase from wholesalers or collectors. A large volume of different fruits and vegetables passes through collection centers, towns and is finally transported to Dire Dawa and Jijiga for export to Djibouti and Somalia. There are about 35 licensed exporters engaged in exporting horticultural products to Djibouti. Seven transistors are involved in processing all the necessary paper work concerning banking and customs clearing on behalf of the exporters. Vegetables and fruits arrive in bulk or in sacks, baskets, leaves and straws. They are unloaded from trucks within the compound of the customs office and railway station. The trucks are checked before they enter the compound. The compound is crowded with exporters, transistors, loaders, truck drivers and their supporters. The compound is heaped with litter of rejected products and their packaging material such as leaves, sheaths and straws. Potatoes, onions, tomatoes, oranges, mandarins, and bananas are loaded on the carriage of the train in sacks and wooden boxes. The plant quarantine and custom office jointly work in the railway compound in Dire Dawa to facilitate the export process. The customs office checks and compares the product presented for export with the accompanying necessary papers in collaboration with other institutions. The plant quarantine and customs office inspect the product physically before it is loaded on the train for export. The data collected from the Dire Dawa Trade and Industry Office show an increasing trend in export of horticulture products through Dire Dawa mainly to Djibouti both in terms of physical quantity and revenue (Figure 10). The analysis shows that the export volume increased on average by 13% over the last 15 years while the export earning increased by 33%. There is, however, significant fluctuation in the export of horticultural products (Figure 11). 47 Drylands Coordination Group Figure 10: Trend of export of horticultural products 80000 Quantity (ton) Revenue ('000 Birr) 70000 Quantity 60000 50000 40000 30000 20000 10000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year Source: Computed based on data from Dire Dawa Trade and Industry Office, Foreign Trade Office, (2006) Figure 11: Change in quantity and revenue 250 237 Change in quantity Change in revenue (%) 200 Percent 150 100 71 52 48 50 27 15 0 -50 26 24 3 -9 -15 -18 15 -8 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year Source: Computed based on data from Dire Dawa Trade and Industry Office, Foreign Trade Office, (2006) 7.2.7 Consumers Sources of supply to consumers Consumers are those purchasing the products for consumption. Two types of consumers could be recognized: private consumers and institutions. The private consumers are employees, urban and rural dwellers who purchase and consume horticultural products. The institutions include universities/colleges, hospitals, etc. 48 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Private consumers purchase horticultural products directly from producers, retailers and wholesalers. As shown in Table 42, the majority of the consumers purchase cabbage, tomato, beet roots, carrot and onion/shallot, orange, banana, etc from retailers. These products are also purchased from different sources (often multiple sources). Purchases from wholesalers and producers are limited. Table 42: Sources of supply of horticultural products to consumers (%) Horticultural crops purchased Cabbage Beetroots Carrots Kale Onion/shallot Irish potato Sweet potato Pepper Tomato Garlic Orange Mandarin Lemon Avocado Banana Mango Papaya Average Where the consumer buys horticultural products Wholesalers 2.1 1.1 3.2 1.1 2.1 1.1 1.8 Source: Own survey (September 2006) Retailers Farmers Ethfruit 74.7 4.2 8.4 67.4 2.1 6.3 62.1 3.2 6.3 61.1 3.2 5.3 75.8 4.2 6.3 75.8 4.2 8.4 15.8 7.4 9.5 1.1 69.5 4.2 11.6 13.7 3.2 51.6 15.8 24.2 16.8 27.4 7.4 10.5 7.4 53.7 10.5 49.5 1.1 10.5 24.2 3.2 45.1 3.3 8.0 Multiple sources 7.4 4.2 4.2 6.3 10.5 8.4 3.2 4.2 9.5 14.7 10.5 15.8 4.2 12.6 14.7 6.3 8.6 Total 97 81 79 76 98 99 26 15 95 17 82 52 51 22 78 76 34 Horticultural products are not necessarily purchased on the major market days since retailers market their products throughout the week in the major market centers. The respondents indicated that they purchase an average of 1-2 kg of major vegetables such as cabbage, onion/shallot, tomato and potato per market day (Table 43). The average purchasing frequency is two days per week. At least 250 gm of each of the major vegetables is purchased per market day i.e. 0.5 kg per week per family. Table 43: The quantity purchased per market day in Kg Vegetables Cabbage Beetroots Carrots Kale Onion Irish potato Sweet potatoes Pepper Tomato Garlic Respondents (No) Mean 93 1.9 78 1.4 77 1.3 72 1.4 94 3.0 95 2.9 26 2.3 14 0.5 90 2.4 16 0.9 Source: Own survey (September 2006) 49 Fruits Orange Mandarin Lemon Avocado Banana Mango Papaya Respondents (No) 77 50 49 21 76 75 32 Mean 1.8 1.3 0.6 3.3 1.5 1.7 1.5 Drylands Coordination Group The prices of vegetables depend on the supply situation. Vegetables are available for lower prices for an average of 4 months. This low price period is associated with local supply from the surrounding area. The remaining 8 months represent the time when the products are transported from distant places and sold at higher prices. Government institutions purchase horticultural products through the bid system. Mostly wholesalers compete and supply the products. Purchasing frequency and prices All the consumers know the benefits of consuming fruits and vegetables and only 5% of them feel that there can be problems with the consumption of horticultural products. This has something to do with hygiene and sanitation rather than the product itself. The implication on this is promotion of the home economics aspect, and education and skill building regarding the preparation and consumption of vegetables. Appropriate storage and handling techniques are also an issue. Cabbage, beetroots, carrots, onion/shallot, potato and tomato are purchased by most of the consumers (Table 44). Regarding fruits, orange, banana and mango are purchased by the largest number of consumers as compared to other type of fruits. The amount the consumers purchase depends on how frequent they visit the market, their income level, and the storage possibility/capacity of the household. The consumers purchase vegetables two times a week and on average purchase 2 kg per week. The differences among the consumers in terms of frequency of purchasing are the quantities purchased. Those frequently visiting the market purchase smaller quantities (as low as 0.25 kg) and it depends on the types of products. Onion for instance can be kept for about a week and can be purchased once in a week while more perishable products should be purchased in smaller quantities but relatively frequently. The average price of horticultural products depends on the supply and seasonal demand. The lowest prices occur during the peak harvest time while the highest prices occur during dry seasons when the supply is low. In Ethiopia, the demand for vegetable production also increases during the fasting periods, when the Christian avoid eating animal products. 50 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Table 44: Purchasing frequency and quantities purchased by the consumers (eastern towns) Type of Horticulture Vegetables Cabbage Beetroot Carrots Kale Onion/shallot Irish potatoes Sweet potatoes Pepper Tomato Garlic Fruits Orange Mandarin Lemon Avocado Banana Mango Papaya Quantity purchased per market day in Kg 1.9 1.4 1.3 1.4 3.0 2.9 No. of market days per week 2.2 2.6 2.5 2.4 2.3 2.5 2.8 2.3 0.5 2.4 0.9 1.8 1.3 0.6 3.3 1.5 1.7 1.5 Source: Own survey (September 2006) 2.5 1.0 2.8 1.0 1.7 1.7 1.7 2.0 2.0 1.6 1.6 1.3 2.0 1.2 1.3 1.3 1.1 1.8 1.5 3.1 2.1 2.1 2.1 1.9 3.1 2.5 Number of months with low price 4.1 4.3 4.2 4.4 3.6 4.3 4.6 1.5 1.7 1.9 6.4 2.7 3.0 3.1 2.0 3.3 3.0 2.7 2.1 2.4 2.9 3.2 8.4 4.0 4.4 4.1 3.3 4.5 4.2 4.0 3.5 4.1 4.3 4.3 3.3 3.6 3.7 3.6 3.9 3.4 3.5 3.1 3.7 Low High price price (Birr/kg) (Birr/kg) Number of month with high price 7.2 6.9 7.0 7.0 7.5 7.4 7.0 6.4 7.2 7.4 8.8 6.5 7.0 5.9 7.1 6.4 6.9 5.5 6.9 N 93 78 76 71 92 93 26 14 87 16 73 44 47 20 69 68 31 Consumption constraints Marketability of horticultural products depends on the demand. The feeding habit and demand parameters determine the level of local consumption of these products. The consumers were asked to rank the factors constraining purchases of horticultural products. The larger the number of consumers ranking the constraints indicates the relative importance of the problem. The proportion of respondents who ranked the constraints as one of the top three problems is shown in Table 45. The results show that high price of the products is the most important constraint for the majority of the consumers. This could be associated to the relatively low income level of the consumers, which is the second most common constraint of the consumers. The observed and recorded price information shows that fruits are more expensive than vegetable. The proportion of consumers putting price and income related constraints at the top of the list is also high for fruits compared to vegetables. About 63% of the consumers feel that shortage of supply is one of the top three problems affecting the purchase of horticultural products. Poor storage of the vegetables is also an important constraint for half of the consumers. 51 Drylands Coordination Group Horticultural products Table 45: Proportion of consumers who ranked the constraints of purchasing the respective products as the top three problems (%) Poor storage Shortage Low at of supply income home Cabbage 61 56 54 Beetroot 64 66 52 Carrot 65 63 54 Kale 66 63 57 Onion 67 77 37 Potatoes 69 77 44 Orange 77 83 54 Mandarin 51 78 57 Lemon 65 87 37 Banana 64 87 52 Mango 60 85 60 Tomato 46 54 52 Average 63 73 51 Source: Own survey (September 2006) High price of the product 77 85 85 72 95 98 92 92 85 87 90 75 86 Constraints Poor handling 56 53 44 44 38 43 38 24 40 28 47 36 41 Perishability 13 18 20 42 18 21 18 13 22 33 24 59 25 Broker interference 55 52 49 50 59 56 43 36 15 51 51 54 48 Lack of market information 21 24 22 14 34 34 18 30 22 10 17 16 22 In terms of what should be done to improve consumption of horticultural products, consumers give different suggestions. Table 46 shows some of the interventions suggested to improve consumption of horticultural products. Increasing the supply of the products and stabilizing the market are most commonly mentioned. Both of these suggestions affect the supply side and increase purchases. Moreover, changing the consumers' behavior to make vegetables and fruits as part of the diet has been suggested. Table 46: What should be done to improve consumption of horticultural products? Sr. No. 1 2 3 4 5 6 7 Suggestions given Provision of storage facilities in the nearby fruit stores Stabilize the market Increase production/supply Teach society to consume fruits and vegetables Improve quality of the products Nothing No comment Total No. of respondents Source: Own survey (September 2006) 7.3 % of respondents 7 30 30 16 8 4 6 100 89 MARKET FACILITIES/INFRASTRUCTURE 7.3.1 Transportation Most of the woredas in the study area are served by a gravel/rock and all-weather secondary road that connects the woreda towns to the Dire Dawa-Harar – Addis Ababa asphalt road. Most of the production sites in the rural areas are not accessible by car during the rainy season. The farmers use donkeys, human portage and light vehicles to transport vegetables to the nearby collection centers on roadsides. Transporting irrigated vegetables is much easier 52 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia since the harvest occurs during the dry season and the traders use pickups, which are capable of traveling and transporting the vegetables to the market centers. This involves loading and unloading from donkeys to vehicles. The farmers who do not have donkeys rent them for transporting their products at a cost of 10-20 birr per trip depending on the distance to the market. Some of the wholesalers own ISUZU trucks and can easily transport the collected products to the terminal markets. But most of the collectors and medium and small scale traders rely on rent to transport their products. For instance, a trader rents a truck individually or in collaboration with others and pays Birr 10 per qt to transport goods from Finkile, Woter or Harar to Dire Dawa while it costs only Birr 5 per qt. from Haramaya to Dire Dawa. Compared to the other parts of Ethiopia, the transport service in the study areas is relatively better. What is rather difficult is the way vegetables are handled and transported, which exposes the products to weathering and physical damage. Most of the spoilage of the products occurs at the level of packing into sacks, loading and transporting on the rural rough road which causes a loss of an estimated 20-25%. There is no special transportation facility for transporting fruits and vegetables and they are packed like any other commodity on the trucks, taxi or any other vehicles. Photo 1: A truck loaded with vegetables on a poor road from Finkile to Haramaya Loading and unloading costs vary from Birr 1 to 2 per qt. The loading and unloading is often monopolized by a few individuals who consider it as means of their livelihood. These people prevent other individuals from entering into the business. Hence, the traders and farmers are not allowed to unload their goods in big market centers like Harar, Dire Dawa and Kombolcha. In so doing, some of the loaders/unloaders (e.g. in Kombolcha) live a better life compared to the producers. Though it is encouraging to see the living condition of every working person, the question of unfair benefit sharing is the worry of the farmers. In the group discussion at Bilisuma Oromia PA, the participants stated: ' We the producers could not support ourselves for the entire year and are forced to look upon the government for food aid; the laborers who load and unload our produces are privileged enough to be able to purchase vehicles." 53 Drylands Coordination Group 7.3.2 Storage The warehouses used by the traders are ordinary rooms with cemented or ground/soil floor and with no shelves. The storage facilities are in poor conditions. Cooling and preservation systems are unavailable, and perhaps unaffordable. Potato is stored spread on the floor and some traders take special care to keep potatoes for about a month without quality deterioration. Some of the mechanisms include keeping potatoes on soiled floor, with no aeration and sunlight. They also choose potato species with relatively longer shelf life. According to the key informants, potatoes with a red flower have this desired quality. Vegetables are harvested by many farmers at a similar period. Therefore, the supply increases and the price declines. On the other hand, techniques for storing vegetables are not known to many of the farmers. As a result, several farmers complain about the lack of appropriate technology and know-how for post harvest horticulture management to allow them a gain from price changes. Due to the lack of improved storage facilities, the different market actors keep vegetables only for a limited number of days. Leafy vegetables and tomatoes are sold as soon as harvested and the wholesalers and retailers may keep them for only a few days. Products like potato could be kept by the producers for up to 7 days; the wholesalers may also keep them for 7-12 days while the retailers may keep them for up to 10 days, with a total of up to 25 days all along the marketing channel. Other vegetables such as onion could be properly managed and kept for more days or some months except under wet and moist soil conditions where the producers and other market actors cannot store it. Photo 2: Storage condition in most markets in the study area 7.3.3 Grading, standardization and packaging The organization and market forces within the domestic arena are obscure and hard to understand since many of the market infrastructures are not yet developed in terms of information, transportation, units of measurement, grading, storage and processing to name just a few. There are no norms and procedures to abide with for every actor to play his role in a fair and equitable manner. In the case of eastern Ethiopia, in the vegetables and fruits sector, middlemen are considered like a burden to the producer and an expense to the consumer. In general, there is no norm to define quality and set prices accordingly. Regulatory institutions protect all market actors from unfair transactions. In the vegetables and fruits 54 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia marketing of the study area, such norms do not exist. The price of vegetables and fruits are often fixed arbitrarily based on the judgment of the traders and/or brokers rather than the demand and supply. Exporters attempt to get uniform and undamaged products for export and there is not as such a standard to pay a significantly different price based on quality. In Kombolcha market for instance, the Somali traders need quality potato for export. It has been indicated that "Large Size Potatoes" are needed in Hargessa while the consumers in Mogadishu prefer "Smooth Surfaced and Medium Size Potatoes". The traders try to sort the potatoes into three grades: Grade 1 being the best and attracting good price (Birr 110 per qt. in Kombolcha in September 2006), grade 2 with some cuts on the surface but still usable for local consumption (sold at Birr 75 per qt), and grade 3, sold for Birr 40 per qt or rejected due to very small size and damage. While attempts at grading and pricing based on quality are encouraging, the way the sorting is done and the prices are set it puts farmers in a disadvantageous position in the transaction because: • There is no norm guiding the buyers and the sellers in defining quality and grading; • There is no institution enforcing the norm; • Sorting is done by the buyers or their agents; • Price is set arbitrarily. Sorting and grading is advantageous for both buyers and sellers including the consumers. Firstly, it builds confidence and trust in the marketing system and secondly it avoids unnecessary risk of losses. A wholesaler in Harar estimates the amount of non-onion materials or small sized onion that should be discarded at 20% in a quintal of onion purchased. This is a significant loss. As a result, traders purchase the onion per sack and the weight is underestimated with a margin of 20-40 kg per sack. This principle is applied all over the study area even when the potato or onion/shallot is filled into containers from the "Dora-collection field of unpackaged vegetables". The under weighting is not only a means to compensate possible adulteration but is also taken as a means to maximize the price margin. Producers are price takers and do not attempt to negotiate the terms of the transaction. One really wonders the extent of lack of law and order in the vegetables marketing system in Hararghe and would ask why farmers are not protected? In general, the East Ethiopian Horticulture Marketing system suffers from lack of processing, packaging, storage and labeling. In the short run, fresh vegetables and fruits are the major form of supply to the consumers. The results of the consumers survey shows that 96% of the consumers do not want packed fruits. 97% do not want packed vegetables. They rather want fresh vegetables and fruits. 7.3.4 Financing The horticulture sector is financed through different mechanisms. Firstly, farmers finance horticulture production from their own savings. Secondly, farmers receive credit from different sources to purchase farm inputs. The survey result shows that 26% (N=141) of the sample horticultural producers received credit during the last production year (2005/06). The average loan size was Birr 520 with a minimum and maximum of Birr 30 and 1750 respectively. The majority of the farmers who received credit used it for the purchase of farm inputs such as fertilizer, seed and pesticides. Operating capital is crucial for the farmers to purchase farm inputs and cope with seasonality. Some studies made in the area show that resource poor farmers borrow 1 qt of potato tuber for planting (equivalent to Birr 200) to pay the sum of money after harvest. Whenever the price falls to Birr 50 per qt. 4 qt of the harvest 55 Drylands Coordination Group is required to repay the credit. In some instances, traders lend farmers money to buy all the produce at the harvest price (Zemede, 2006). Capital is crucial for commercial activities. During the group discussions and key informant interviews, the traders appreciated the seriousness of capital shortage to expand vegetable trading. Credit is not available for the traders. Only 3% of the producers who wanted to become involved in horticulture trading received credit (average Birr 535). Another credit system applied in the area to overcome capital shortage is that of the wholesalers providing advance payment to collectors so that they will ensure the supply of vegetables. Sometimes wholesalers also get working capital from Somali importers with restrictive requirements. Similarly, exporters collect the supply from traders without settling the cost. The exporter collects the products, registers the name of the supplier, type and amount of the product but the price is determined after sales in Djibouti. Products are supplied every Tuesday, and sacks are delivered every Thursday and payments are made every Friday. There is no formal collateral or insurance system for the suppliers. What works here is mere trust. Unfortunately, the suppliers mention that there are often payment delays and several rounds of export are done before settling the previous bill. The suppliers do not have options since refusal to supply would lead to deterioration of the product. A supplier from Haramaya market emphasizes the shortcomings of the payment system stating as follows: "Our exported vegetables are not paid until consumed." Worse is also when the exporters revise the price claiming that they could not sell the products for good prices in Djibouti. This in fact contradicts the argument of lack of revision of horticulture prices in Djibouti, which was fixed some years back. 7.3.5 Market information The main sources of market information are traders and brokers. The majority of farmers become aware of the price upon their arrival at the market place. In most cases, the prevailing prices from the previous market days are considered when the farmers deliver the vegetables to the wholesalers without allowing remunerations for the difference in quality, seasons and the change in market conditions. Brokers often deliver information about declining prices in the terminal markets to farmers so as to convince them to receive lower prices for what they will sell. Traders themselves lack market information outside their vicinity. Traders in Kombolcha and Harar, for instance, do not get precise information about prices in Somali to adjust the sales prices. Lack of market information severely affects the producers since they are the ones bearing losses sooner or later. 7.4 CONSTRAINTS OF HORTICULTURE MARKETING Marketing constraints have been identified from the producers’ and traders’ perspectives. The producers’ top three marketing constraints have been identified and presented in Table 47. The results show that lack of market and associated low prices of the products, lack of market information and brokers/middlemen's hindrances to getting a better price for the products are the top three constraints in the marketing system. As discussed earlier, lack of direct communication between the wholesalers and the producers, which could be attributed to lack of coordination between the traders on the one 56 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia hand and producers on the other, created a conducive environment for the brokers to play decisive roles. The brokers’ role is significant if its function is in a responsible manner and governed by law. Traders compete for buyers by offering cheap products while the effect of the low price is put on the farmers. Table 47: Proportion of respondents who ranked the marketing problems as one of the top three problems (%) Constraints Lack of market Low price Lack of storage Lack of transportation Lack of market information Brokers hindrance Perish-ability Cabbage Beetroots Carrots Onion Irish potatoes 74 74 86 65 68 96 97 97 95 97 57 54 65 65 61 61 45 53 74 48 76 71 47 Source: Own survey (September 2006) 75 71 46 75 71 43 71 58 63 71 59 31 The constraints of horticulture marketing were also inquired from experts, traders and transporters. The analysis of results of all possible sources would lead to the following list (not in order of severity) of major constraints of horticulture marketing in the region. These are: 1. Lack of market to absorb the production; 2. Low price; 3. Large number of middlemen in the marketing system; 4. Absence (weakness) of marketing institutions safeguarding farmers' interest and rights over their marketable produces (e.g. cooperatives); 5. Lack of coordination among producers to increase their bargaining power; 6. Lack of coordination among traders to increase their capacity to search for potential markets and control the activities of the middlemen; 7. Poor product handling; packing is traditional and only in sacks or covered with leaves (e.g. cabbages and lettuce); 8. Imperfect pricing system. The middlemen decide on the price of horticultural products. Producers cannot negotiate since they may be denied even a low price and their products could be liable to rotting, since it is perishable. 9. Limited access to external markets. Absence of strong cooperatives and lack of coordination between producers and traders aggravated the problem. 10. Lack of transparency in the market information system mainly in the export market. Due to lack of transparency, farmers' negotiation skills are limited. 11. Informal transaction prevails in the export system. Producers and local traders receive value for their products only after the exported product is sold. Horticultural products are transported every Tuesday and payment may be effected the following Friday. The ultimate price of the product depends on the exporter's decision to pay. Although the prices are determined based on previous market price of each type of product, the exporter may declare that he/she did not sell it for the expected price and pay less than agreed. The supplier does not argue against it in fear of losing a customer in the future. Payments are often delayed and several lots may be exported before settling the previous bill. The same effect is rolled back to the producers and the producers bear the ultimate cost. The trading system is also informal in the sense that no formal collateral is involved in the transaction, indicating the lack of legal commitment to settle debt. 57 Drylands Coordination Group 12. Lack of standard for quality control and hence lack of discriminatory pricing system that accounts for quality and grades of the products. The attempt made in Kombolcha market to sort the products and pay accordingly should be encouraged and legally supported; institutionalized. Transaction based on local measurement units (Gonfa13) exposes producers to unfair pricing. The existing marketing system limited the farmers’ bargaining capacity. 13. Lack of motivation for sorting and improving quality of products. Since there is no price discrimination and payments on well established quality parameters, the sellers often add externalities to the products. There is no marketing extension that aims at improving the marketing system in the country. 14. Poor storage and transport system for vegetables. Transportation to extreme rural areas is also a problem; 15. Lack of capital for horticulture trading; 16. Limited research or extension system related to horticulture marketing; 17. Lack of semi-processing industries. 7.5 OPPORTUNITIES FOR INCREASED HORTICULTURE MARKETING Horticulture marketing has increasing opportunities for expansion. The opportunities stem from the production potential. These include: • Farmers are motivated to expand horticulture production by using traditional irrigation and using improved agricultural inputs; • NGOs have been involved in the promotion of the poor, particularly women, in vegetable production; • The government policies support horticultural production as means of increasing household food security. It is obvious that creating appropriate market linkages through efficient marketing arrangements and appropriate production systems would boost the living standards of millions of horticulture crop farmers, traders and transporters operating in Ethiopia, Somalia and Djibouti. In particular, the government policy that is focusing on the promotion of marketoriented (mainly export) agriculture is very much in support of this approach. Moreover, the new water harvesting approach, which is being widely promoted by the government, is expected to increase vegetable and horticulture crop production in the study area. However, there is little experience, knowledge and deliberation in the region to create and promote supportive strategies within the local government system and create coordinated efforts among producers and traders. As a result, farmers often do not have access to improved production technologies or they are expensive to acquire. In addition to these due to an inefficient market system, farmers are receiving a low price for their products and traders are not operating under optimal conditions to maximize their gains without exploiting the producers. Some of the opportunities are also growing and expanding fast. For instance: • Mobile phone technology is reaching many zonal capitals, major towns in the region and even the rural areas along the major road networks. This is important for horticulture crops market information exchange. • The Ethiopian Road Development Program has created a road infrastructure that has attracted many to invest in freight transportation. 13 Gonfa is an expression for over filling sacks with potatoes. Extra space is added to normal sacks and filled with potatoes, as shown on the cover page photo. 58 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia • • • • The Ethiopian and Djibouti governments have planned to reinforce and strengthen the Ethio-Djibouti railways. The number of vegetable and fruit exporters is increasingly growing. This is a significant opportunity. In a competitive market, an increasing number of exporters can create demand for the products and result in an increase in the producers' marketing margin. The expansion of Ethiopian Airlines and the foundation of Transnational Airways have come with new cargos to transport export products. The increasing market outlet through the Somali border provides an opportunity for improving the marketing of horticultural products. Therefore it is critical to maximize these opportunities and solve the problems that are restricting the growth of this sub-sector. 59 Drylands Coordination Group 8. PRICE ANALYSIS 8.1 PRICES OF HORTICULTURAL PRODUCTS IN THE DOMESTIC MARKET Prices of horticultural products show significant variations depending on the supply situation. During harvesting time the price falls quite significantly. For instance, the price of cabbage falls below Birr 40 per qt during the peak harvest period in areas like Haramaya and Kombolcha and reaches Birr 200 per qt in the same market during the slack period. Similarly, the price of beetroots could vary from Birr 35 to 350 per qt. The price of potato varies from Birr 100 per qt to 200 per qt at the farm gate depending on the seasons. Figure 12 shows the variation in the price of potato at the Kombolcha market during different months of year 2005. Supply of most of the vegetables in the eastern part of the country occurs from July to October. During this period, the price of onion, potato and other vegetables decline. This coincides with the minimum price of vegetables in Harar market, which is also reflected in the price of potato. The period between January and April shows the period of slack supply and the gap is filled by transporting potatoes from the rift valley area and central part of Ethiopia. Figure 12: Average price of potato at Kombolcha market 200 200 180 191 165 Price (Birr/qt) 160 149 133 140 120 149 114 105 112 102 97 100 107 80 60 40 Aug ust July June May April March January December November October Sept ember 0 February 20 Month Source: Own survey (September 2006) Similarly, there is a significant variation between prices of other horticultural products during different months. The minimum prices are computed by averaging out the lowest prices occurring during different weeks of a month while the highest prices were averaged to compute the average maximum price. The overall average shows the mean price of each product during the year (Table 48). As the price continues to change, the traders involved in different markets maintain their price margins. The difference between the maximum and minimum prices of the respective products shows the extent of price fluctuation in response to the supply situation. As shown in Table 48, the overall average price of vegetables is about Birr 3.20 per kg and could increase to an average maximum of Birr 4.7 per kg, with 60 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia significant variations among the vegetable types. The price of the major products of the subregion such as potato, tomato, onion/shallot and cabbage are analyzed. Garlic is supplied in limited amount but has a high value in the market. Table 48: Average monthly consumer price of horticulture products marketed at Harar Market (Sept. 2005 to Aug. 2006) (Birr per kg) Type of crop Beetroot Carrot Potatoes Tomatoes Onion/shallot Garlic Pepper Cabbage Kosta Baharo Cucumber/Zikuni Local cabbage Lettuce Average vegetables Banana Orange (open market) Orange Eth-Fruit Papaya Lemmon Mango Average fruits Mean Minimum 1.0 1.5 1.5 2.5 2.0 5.0 3.0 2.0 1.5 2.0 3.0 0.5 1.0 2.0 3.0 2.5 2.0 2.0 2.0 2.0 2.25 Mean Maximum 2.0 3.5 2.5 3.5 4.0 12.0 8.0 8.0 3.0 3.0 4.0 6.0 1.0 4.7 4.0 6.0 4.5 2.0 8.0 4.0 4.8 Overall Average 1.8 2.5 2.1 2.9 3.1 7.8 6.1 4.9 2.1 2.5 3.3 1.3 1.0 3.2 3.3 4.0 2.9 2.0 5.1 3.3 3.4 Source: Summarized from weekly records of the Agriculture and Rural Development Office of Harari Region (2006) Fruits are also sold for a minimum of Birr 2.25 per kg and the average price during the year was Birr 3.40 per kg. The extent to which price changes due to changing positions and hands could be visible through market margin analysis. 8.2 MARKETING MARGINS The marketing margin fluctuates due to perishable quality of the product, the number and levels of participants in the marketing channel, the marketing service provided, and the risk and uncertainty born by each of the market participants (Scott, 1995). In this analysis, the overall potato and onion marketing margins are computed for four market actors: primary buyers, wholesalers, retailer and consumers. The marketing margin reflects the benefits the marketing agent/actor generates by participating in the product flow or the marketing system. The price paid by the primary buyer is what the producer gets. This buyer encounters additional costs of transporting the commodities from the points of production to the next buyer. In this case, the wholesaler makes a margin of Birr 23 and 48 from marketing a quintal of potato and onion respectively. These prices are actual prices estimated by the wholesalers in the respective areas. Retailers also make Birr 17 and 37 from the respective products and hence the price paid by the consumer for the two products increases to Birr 180 and 300 respectively. The result clearly 61 Drylands Coordination Group shows the benefit the producer would get by accessing the terminal market and reducing the marketing channel. Table 49: Marketing margin (Birr/qt) Actors Primary buyer Type Farm gate price at Finkile/Haramaya Potato 100 Red onion 150 Transporter Transport to Dire Dawa +10 +10 Loading/unloading +2 +2 Middlemen Broker's commission +5 +5 Wholesaler Wholesaler's price 140 215 Wholesaler's margin +23 +48 Retailer's buying price 163 263 Retailer's margin +17 +37 Consumers'price 180 300 Retailer Consumer Source: Own computation using PRA data (September 2006) Similar calculation of the price margins made by traders in Harar was made using data collected using PRA tools. The data generated is consistent with the recorded price data (Table 48). The assessment shows that a wholesaler in Harar market purchases potato at an average price of Birr 110 per qt and sells it to retailers at Birr 125 during the peak supply period. The loading/unloading cost is Birr 2 while brokers charge Birr 2 per qt. Hence, the wholesalers make a margin of Birr 11. As stated by the key informants, this will account for losses. In this case, the retailer makes a margin of some Birr 25 per qt. According to the key informants, wholesalers make high profit from increased turnover. Likewise, the trader purchases onion for Birr 145 and sells for Birr 165 making a margin of Birr 16 per qt. The retailers then make a margin of about Birr 35 per kg. Unfortunately, storage facilities available to the producers do not allow storing of the products for a longer period to receive a high price. Nor is any vegetable processing available to add value. 8.3 DJIBOUTI MARKET The existence of railways, road transport and flights to Djibouti and Somaliland has given comparative advantage for the vegetables and fruits marketing. Exporters label the sacks which are distributed to the supplying traders. No price negotiation is made upon receiving the sacks but upon submission of the product. The price of the product is determined based on the previous market but payment is effected only after the product is sold in Djibouti. Prices for fresh fruits and vegetables exported to Djibouti are fixed based on the agreement between the Governments of the two countries (Sisay, 2004). The prices were determined based on C&F (Cost and Freight) terms where transportation cost to Djibouti is covered by the exporters. Table 50 shows the prices of major fruits and vegetables that have been used by the National Bank of Ethiopia for controlling foreign currency. 62 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia Table 50: Prices of major fruits and vegetables exported to Djibouti Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Product Red onion Potato Tomato Carrot Garlic Green beans Leek Pepper Orange Banana (green) Papaya Mandarin Lime Mango Pineapple Avocado Djibouti price (USD per ton) 220 220 280 150 280 190 140 160 340 Equivalent of the price in Birr (per kg)* 1.93 1.93 2.45 1.31 2.45 1.66 1.23 1.40 2.98 Harar price (Birr per kg) 3.1 2.1 2.9 2.5 7.8 190 190 250 160 250 400 160 1.66 1.66 2.19 1.40 2.19 3.50 1.40 3.3 2.0 2.0 5.1 3.3 6.1 4.0 * USD 1.00 = Birr 8.75 (September 2006) Source: Sisay (2004) for Djibouti price; Own survey for Harar price (September 2006) The official prices of horticultural products in Djibouti appear to be lower than the local prices in Djibouti. Although an adequate Djibouti market assessment is needed to provide concrete reasons and explanations for the price variation, it can be argued that no product would have been exported under such a market situation and exporters cannot operate if they incur losses. The possible explanation from the local market point of view could be that the exporters purchase the products at lower than actual consumer price and the producers bear the margin of loss. Key informants also indicate that the Ethiopian horticultural exports are of low quality due to poor post harvest management. Hence the products are sold in the open markets of Djibouti to the poor while products imported from other countries are sold in supermarkets at premium prices. 63 Drylands Coordination Group 9. GENDER ASPECT OF HORTICULTURE PRODUCTION AND MARKETING 9.1 PRODUCTION PARTICIPATION Production of horticultural crops is the responsibility of the household in general. In the eastern part of Ethiopia, especially in the study area, land preparation, planting, fertilizer application and irrigation are often done by men. Women play a great role in providing the providing for the labor force and assist in weeding, harvesting, transporting and threshing. The survey result also shows that both men and women share the responsibility of producing horticultural crops often equally. 9.2 MARKETING DECISION The decision to sell valuable agricultural products and control the income generated from the sales of the products is a question of entitlement. In the study area, men and women appear to make decisions regarding the sale of horticultural products. The entire sample indicates that men decide on who should sell horticultural crops while more than 90% of the respondents also indicated that women also participate in decision making regarding who should sell the products. But only 35% of the respondents indicated that children are involved in decision making regarding who should sell the product. Moreover, the decision on who controls the income from horticultural products is also narrowly equitable. Only a few respondents (2%) indicated that women do not decide on the sale of horticultural crops. The result confirms the fact that women sell smaller quantities of vegetables and fruits to purchase items needed for the household while men sell these products in larger quantities. 64 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia 10. 10.1 CONCLUSIONS AND RECOMMENDATIONS CONCLUSIONS Horticulture production provides an opportunity for market integration for smallholder farmers in eastern Ethiopia. Due to the declining land holding size, horticulture production allows intensive use of the land and reduces risk of crop failure since it can be produced in a shorter production cycle compared to maize and sorghum. Availability of irrigation water, quality seeds and seedlings, pests and disease, and the perishable nature of the product all limit the marketability of the products and constrain expansion of horticultural crops in the area. Horticulture marketing is a means of livelihood providing business opportunities for all actors in the market chain including the producers, brokers/commission agents, transporters, traders, processors, and consumers. The role of brokers in horticulture marketing is significant. They isolate the producers from the traders and make price margins often to the disadvantage of the producers. The brokers provide, however, market links by identifying sources of supply. The brokers' function is not formal and there is no legal framework that makes them accountable for any shortfalls in the service delivery. As a result, they act as major agents setting the prices of vegetables without much negotiation with the producers. Coordinated acts of traders and producers and institutionalizing the functioning of brokers are essential. The supply of horticultural products is seasonal with the peak supply being accompanied by low price. Due to lack of adequate storage facilities, and poor transportation facilities, spoilage is as high as 25% of the yield all along the marketing channel. The seasonal demand gap in the study is filled by products transported from other parts of the country including Shashemene and the rift valley area. Fruits are supplied by small scale farmers in a very small quantity. A large supply of fruits comes from the Awash basin farming enterprises. Some farmers in Dire Dawa and Eror Gota also supply mango, orange, mandarin and other fruits. Proximity to Djibouti and Somalia as export outlets has created good market opportunities. But not much is known about the two market outlets. Several traders export fruits and vegetables to Djibouti. Although products are exported fulfilling formalities, there are limitations in terms of lack of transparency regarding price information, informal credit system between suppliers and exporters, lack of adequate standardization and grading system, poor packaging, etc. These aspects should be improved. Producers are in a disadvantageous position in terms of marketing margin. The more producers approach the terminal market, the higher their marketing margin. The price of horticultural products exported to Djibouti is said to be fixed some years back and lacks flexibility. Action of the government in this case is crucial. 10.2 RECOMMENDATIONS 10.2.1 Improving the horticulture production • Improve the existing production system. This can be done by introducing vegetable varieties that best fit into the crop calendar pattern, the rotation and enable efficient utilization of the crop production cycle used by the farmers. The role of research in identifying varieties of high demand having required traits such as taste and shelf-life and that are compatible with the production system is crucial. Technologies that increase productivity such as irrigation are needed. 65 Drylands Coordination Group • • • • Improve the input supply system so that farmers receive the right type of production inputs, the quantity needed at the right time. Improving the system will protect farmers from buying adulterated and fraudulent products. Adapt the production system so that it fills the supply gap and benefits from market opportunities during the slack supply seasons. This will ensure regulating production throughout the season to secure sustainable income. Upgrade the knowledge, skill and experience of key actors like producers, cooperatives' and unions staff members, development agents, supervisors and subject matter specialists to increase production and productivity. The intervention areas should be associated with the constraints identified in this report. Producers and extension agents need adequate skills in production management practices starting from seed selection to post harvest technology suitable at their level. Marketing principles, bargaining skills, business planning, quality management and post harvest handling of horticultural products are some of the interventions needed. There is a lack of qualified, skilled and experienced individuals on the subject at the lower hierarchy of the rural and agricultural development office. Knowledge and skill in variety selection, agronomic practices, pests and disease management and post harvest management should be further built on. 10.2.2 Improving marketing of horticultural products The market improvements revolve around institutional, legal frames, education, developing market facilities. The following concrete recommendations will improve the marketing system and enable fair and equitable distribution of the welfare generated from the marketing system: • Establish and enforce a legal system in the marketing management. Defining quality parameters, standards, grades and putting regulatory frameworks to enforce pricing based on standards is important. The "gonfa" measurement system should be replaced by scientific units such as weighting on a standard balance. In this connection, the negotiation capacity/skill of the producers should be developed. • Legalize the functioning of brokers in such a way that they will be accountable for their practices and enforce true functioning of a competitive marketing system; • Organize (voluntarily) traders and producers and establish trustful and strong trade agreements between the two institutions. Attempts to organize the traders and producers without establishing a linkage between the two have resulted in rival relationships between them. Neither the traders nor the producers succeeded. There is a strong need to organize them as business associations and build their business management capacities to operate as partners rather than rivals. Traders in Kombolcha are trying to organize themselves while producer cooperatives have been weak to do business. In some instances, the producers’ cooperatives failed to withstand unfair competition with traders. • Improvement of the market information delivery system in this process is necessary. With a strong relationship between traders and producers, searching for market information and dissemination will be crucial. • The Government must adopt legal measures to review the horticulture export prices to Djibouti. The fact that the export price is lower than the consumer price in Dire Dawa means that the exporters are purchasing the commodities at lower prices from the suppliers which is pushed down to the producers. • The informal business deal between the suppliers and exporters also needs adequate attention. There is no collateral system, fixed and binding price agreement, etc. made between the exporters and the suppliers. The consequence of such a deal is a reduced price for the producers. 66 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia • • • • • Improving the marketing functions such as the packaging, storage and transportation system should be improved. In order to fully understand the horticultural marketing system, undertaking a horticultural marketing study in the neighboring countries is essential. Interventions which will improve local demand for horticultural products is also necessary. In this regard, education on the nutritional value of vegetables, home economics and promoting consumption of horticultural products would help. Undertake research to support producers and traders with post harvest storage technologies. Build the marketing extension capacity in terms of institutions and human resources. 67 Drylands Coordination Group 11. REFERENCES CARE-Ethiopia. 2003. Ethiopian Market Linkage Workshop Report March 17, 2003 conducted in Dire Dawa, Ethiopia. CARE-Ethiopia. 2005. Market Improvement Projects for Kurfa Chelle. Addis Ababa, Ethiopia. Eskinder Getachew. 2006. Agricultural Market Analysis of Four Crops in Girawa and Kurfa Chelle Woredas. Research Report of CARE Ethiopia. Ethiopia Authority for Standardization (ESA). 1990. Fruits and Vegetables. Vol. 10, No.25, Addis Ababa. Federal Democratic Republic of Ethiopia (FDRE). 1990. Council of Ministers Regulation to Provide for standard mark No. 13/1990 (No. 26): 180-186. Federal Democratic Republic of Ethiopia (FDRE). 1997. Commercial Registration and Licensing Council of Ministers Regulations, No. 13/1997 (3): 433-466 Federal Democratic Republic of Ethiopia (FDRE). 2005. Plan for Accelerated and Sustained Development to End Poverty, Addis Ababa Grillo J. & Browne, S.J. 2005. Market-led Livelihoods for Vulnerable Populations (MLVP), Kurfa Chelle Woreda Livelihoods Analysis, Addis Ababa Horticulture Development Enterprise. 2001. Basic Principles of Production Practices on Major Horticultural Crops, Addis Ababa, Ethiopia. MOARD. 2005.Vegetables and Fruits Production and Marketing Plan (Amharic Version), Ministry of Agriculture and Rural Development, Addis Ababa, Ethiopia. Scott J.G. 1995. Prices, Products and People, An Analysis of Agricultural Markets in Developing Countries, Lynne Rienner Publishers. Sisay Habte. 2004. Fresh Fruits and Vegetables Production and Marketing Study. Ethiopian Export Promotion Agency, Addis Ababa, Ethiopia. Zemede Abebe. 2006. Potato Sub-Sector Analysis in eastern Ethiopia Agro Enterprise Territory, Ethiopian Agro enterprise development Program, HCS, Dire Dawa, Ethiopia. 68 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia ANNEXES ANNEX 1: PRODUCERS'QUESTIONNAIRE (PRODUCTION AND MARKETING) Remark: The following questions have been set to understand Opportunities and Constraints of Horticultural Production and Marketing in the eastern part of Ethiopia. The answers are confidential and will not have any consequence on you personally in any ways. Please give correct answers to the following questions. I. Identification: 1.1. Name of the Enumerator:______________________ 1.2. Education Level (fill grades completed, or certificate earned) ________ 1.3. Affiliation of the Enumerator: ________________________________ 1.4. Date of the Interview: _______________________ 1.5. Name of the respondent (he/she must be head of the household: ____________________ 1.6. Age of the respondent: [ _______ ] years 1.7. Sex of the respondent ( ): 1. [ ] Male 2. [ ] Female 1.8. Education level of the respondent: 1. [ ] No formal education 2. [ ] 6th grade or less 3. [ ] 7th to 12th grade 4. [ ] Certificate 5. [ ] Diploma 6. [ ] Degree 1. [ ] Married 2. [ ] Unmarried 3. [ ] Divorce 1.9. Marital status ( ) 4. [ ] Widowed 1.10. Woreda: __________________________ 1.11 Kebele: __________________________ 1.12. Distance to nearest town: [______ ] km OR [ ______ ] hrs walk 1.13. What is your major means of income generation? 1. [ ] Khat/coffee production 2. [ ] Horticulture production 3. [ ] Grain and pulses production 4. [ ] Grain trading 5. [ ] Horticulture trading 6. [ ] Khat trading 7. [ ] Livestock production 8. [ ] Livestock trading 9. [ ] Other income generation 1.14 How long have you practiced production of horticultural products? _____ years II. Household and Resource Data 2.1. Family size: [ ___] Male [ ___ ] Female [____] Total 2.2. Number of working persons: [ ___ ] Male [____ ] Female [ ____ ] Total 2.3. No. of children in school: [ ___ ] Male [ ____] Female [ ____ ] Total 2.4. Total crop land: _______ Qindi _______ ha 2.5. Total irrigable area: ____ Qindi _______ ha 2.7 What is the size of land used twice in a year? _____ Qindi III. Crop production 3.1. Crop production during the last cropping season Crop type Area -Rainfed (Qindi) 1. Horticulture: Vegetables 2. Cereals 3. Pulses 69 Area -Irrigated (Qindi) Drylands Coordination Group 4. Coffee 5. Khat 6. Fruits (give # of trees) 3.2 How many plots and which land type do you allocate to horticulture crops (soil type, slope, fertility, etc.)? Type of production No. Of plots Slope1 Fertility status2 Soil type3 Citrus Vegetables 1 Slope: 1) Flat 2) Steep slope 3) Medium Fertility status: 1) Highly fertile 2) Medium 3 Soil type: Write the type stated by farmers 2 3) Low in fertility 3.3 What type of horticultural crops do you produce? Area and production during last season? Crop type Area productio n cycle1 (Qindi) Area productio n cycle 2 (Qindi) Productio n (cycle 1) (qt) Production (cycle 2) (qt) % Sold % Consu med Income generated from sales (both seasons), Birr Cycle1 Cycle2 Cabbage Beetroots Carrot Kale Onion Irish potato Sweet potatoes Pepper Others (specify) 3.4 Inputs of horticulture crop production during last season? (Specify quantity) Crop type Labor (manday) Cabbage Beetroots Carrot Kale Onion Irish potato Sweet potatoes Others (specify) * Give local unit Seed (kg) Local Impr oved DAP (qt) 70 Urea (qt) Compost (yes/no)* Manure (yes/No)* Pesticide (Lt/kg, specify) Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia 3.5 What is the source of labor used for horticulture production? 1. [ ] Family labor 2. [ ] Hired labor 3) Labor exchange 4) Cooperation 3.6 If you use fertilizer, where do you get it? 1. [ ] Development agents/Agriculture office 2. [ ] Market 3. [ ] NGOs 5. [ ] Cooperatives 6. [ ] Others (Specify) ______ 3.7 If you use pesticide, where do you get it? 1. [ ] Development agents/Agriculture office 2. [ ] Legal market/known source 3. [ ] NGOs 5. [ ] Cooperatives 6.[ ] Illegal market/unknown source 7. [ ] Fellow farmers 8. [ ] Others (Specify) ___________________________ 3.8 What type of seeds of horticulture do you use? 1. [ ] Local 2. [ ] Improved 3. [ ] Both 3.9 If you use improved seeds of horticulture, where do you get them? 1. [ ] Development agents/Agriculture office 2. [ ] Known source in market 3. [ ] Unknown source in market 5. [ ] Cooperatives 6.[ ] Fellow traders 7. [ ] NGOs 8. [ ]Others (Specify) __________ 3.10 If you use pesticides, where do you get them? 1. [ ] Development agents/Agriculture office 2. [ ] Legal/Known source in market 3. [ ] Illegal/Unknown source in market 5. [ ] Cooperatives 6.[ ] Fellow traders 7. [ ] NGOs 8. [ ]Others (Specify) _________ 3.11 Where do you keep/store pesticide? [ ] 1. Separate/isolated room [ ] 2. In home where we live [ ] 3. Others (specify) ______________________________________________________ 3.12 If you have ever encountered problems with the use of improved seeds, what type? 1. [ ] There is germination problem 2. [ ] Low quality (taste) 3. [ ] High price 5. [ ] Unknown origin 6. [ ] Others (Specify) ___________________ 3.13 If you have you ever encountered problems with the use of pesticides, what type? 1. [ ] Poisoning when applying 2. [ ] Low quality (taste) 3. [ ] High price 5. [ ] Unknown origin 6. [ ] Lack of safety device 7. [ ] Others (Specify) ___________________ 3.14 If you use irrigation, what is source, method, frequency of use, and costs of irrigation Crop type Source: Method: How many Cost of using 1= pond 1= Furrow times irrigation (Birr) 2=borehole 2=sprinkler applied? Own Rented 3= river/spring 3=basin pump* pump 4=lake 4=drip 1. Vegetables 2. Citrus 3. Khat * Annual use cost includes fuel cost, wage (if employed labor is used), 71 Drylands Coordination Group 3.15 What type of farm implements do you use for horticulture production? Give year of purchase and the price? Type of farm Number Year of purchase Cost of purchase (Birr) implement/equipment Plough Hoe Rake Harrow Pump Others (specify) 3.16 What type of horticulture production system do you adopt? [ ] 1. Sole cropping [ ] 2. Mixing different horticultural crops [ ] 3. Mixing with other crops [ ] 4. Others ___________________ 3.17. How many bushes/tree of the following citrus do you have in your farm? Type No. of trees/ Income per year (if Income from sale during bushes all sold) last season (Birr) 1. Orange 2. Mandarin 3. Lemon 4. Avocado 5. Banana 6. Mango 7. Papaya 8. Others 3.18. Whose responsibility is the following production? (Tick) Crop type Men Women Children Vegetable Citrus Other crops 3.19 How is the trend of volume of horticultural crops production during the past 5 years? (Tick) Crop type Increasing Decreasing Same Vegetable Citrus Other crops 3.20 If the production increases, what are the reasons?______________________________ 3.21 If the production decreases, what are the reasons? ______________________________ 3.22 Would you like to expand horticulture production? [ ] 1. Yes [ ] 2. No 3.23 What opportunities exist to expand horticulture production? ________________________ 72 Constraints and Opportunities in Horticulture Production and Marketing in Eastern Ethiopia 3.24. What are the horticulture production constraints on your farm? Rank horizontally* Crop type Oxen shortage Insects Diseases Drought Weeds Flood Vegetables Cabbage Beetroots Carrot Kale Onion Irish potato Sweet potatoes Others (specify) Citrus Orange Papaya Lemon Avocado Banana Mango Others * 1 =most severe, 2= second severe, etc. 73 Frost Seed shortage Fertilizer shortage Lack of pesticide Others (specify) Drylands Coordination Group 4. Marketing 4.1 Where do you sell your horticultural products? Please respond to the following questions. Crop type Market place (Name) Distance to market (km) Means of transport* Transport fee per trip (Birr) How many times do you sell this product per week? How much do you sell this product per week? How much do you sell per week? (kg) By how much do you sell it (Birr) No. of months you may sell so? Vegetables Cabbage Beetroots Carrot Kale Onion Irish potato Sweet potatoes Others (specify) Citrus Orange Papaya Lemon Avocado Banana Mango Others * 1= On donkey 2= Vehicle ** 1=Whole sellers; 5= Exporters; 3= On foot (Being carried) 2=Retailers; 3= Household consumers; 4=Institutions/organization such as university, factory, hotels; 6 = Processors; 7= Brokers; 8=Others (Specify) ___________________ 74 To whom do you sell?** Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia 4.2. How is the trend of price per unit of sales of horticultural product during the last 5 years? (Tick) Crop type Vegetable Citrus Other crops Increasing Decreasing Same 4.3 If the price increases, what are the reasons?_______________________ ___________ 4.4 If the price decreases, what are the reasons?___________________________________ 4.5 Would you like to expand horticulture trading? [ ] 1. Yes [ ] 2. No 4.6 What opportunities exist to expand horticulture trading?______________________________ 4.7. Does your horticultural products have preferred qualities by buyers? [ ] 1. Yes [ ] 2. No 4.8 If No., what interventions are needed to improve quantity and quality of horticultural crops production to attract better prices? __________________________________ 4.9 Whose responsibility is the selling of the following production? (Tick) Crop type Vegetable Citrus Other crops Men Women Children 4.10. Who decides on the income generated from the following products? (Tick) Crop type Vegetable Citrus Other crops Men Women Children 4.11. What are the horticulture marketing constraints? Rank horizontally* Crop type Lack of market Low price of product Lack of storage Lack of transport Vegetables Cabbage Beetroots Carrot Kale Onion Irish potato Sweet potatoes Others (specify) Citrus Orange Papaya Lemon 75 Lack of market information Brokers (hinder fair sales Perish Others ability (specify) Drylands Coordination Group Avocado Banana Mango Others 4.12. Is storage of horticultural production a problem for you? [ ] 1. Yes [ ] 2. No 4.13 If yes, how much of the production of the product is damaged in the field and after harvest? Crop type Vegetable Citrus Other crops % of loss before harvest? % of loss after harvest? 4.14. Do you find buyers for all horticultural products you take to markets? [ ] 1. Yes 2. No 4.15. If you do not find buyers for your product, what do you do?________________________ [ ] 5. Non-farm activities 5.1 Do you also purchase and sell horticultural products? [ ] 1. Yes [ ] 2. No 5.2 Do you practice trading activities (other than trading of horticultural products)? [ ] 1. Yes [ ] 2. No 5.3 How much do you earn from such trading per market day? ____ Birr 5.4 No. of market days in a month? _________ 5.5 Did you receive credit for the trading during the last one year? [ ] 1. Yes [ ] 2. No 5.6 How much did you receive during the last one-year? _______ Birr 5.7 Did you receive credit for the purchasing of inputs for horticulture production? [ ] 1. Yes [ ] 2. No 5.8 How much did you receive during the last one-year? _______ Birr 5.9 Where did you get the credit? [ ] 1. Micro-finance institute [ ] 2. Cooperatives [ ] 3. Bank [ ] 4. Friend/relatives/neighbor 6. Livestock production Sr. No Livestock type Number Purpose of production* Income earned by selling of animals, animal products, or renting during last one year (Birr) 1 Oxen 2 Milking cows 3 Goats 4 Sheep 5 Mules/horse 6 Donkeys 7 Poultry * 1= For draft (cultivation/transport), 2= Sales (live animal), 3= Milk/butter, Thank you so much for responding to the questions. 76 4= Manure 5) Egg Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia ANNEX 2: CONSUMERS'QUESTIONNAIRE (PRODUCTION AND MARKETING) Remark: The following questions have been set to understand Opportunities and Constraints of Horticultural Production and Marketing in the eastern part of Ethiopia. The answers are confidential and will not have any consequence on you personally in any ways. Please give correct answers to the following questions. I. Identification: 1.1. Name of the Enumerator:______________________ 1.2. Education Level (fill grades completed, or certificate earned) ________ 1.3. Affiliation of the Enumerator: ________________________________ 1.4. Date of the Interview: _______________________ 1.5. Name of the respondent (he/she must be head of the household: ___________________ 1.6. Age of the respondent: [ _______ ] years 1.7. Sex of the respondent ( ): 1. [ ] Male 2. [ ] Female 1.8. Education level of the respondent: 1. [ ] No formal education 2. [ ] 6th grade or less 3. [ ] 7th to 12th grade 4. [ ] Certificate 5. [ ] Diploma 6. [ ] Degree 1.9. Marital status ( ) 1. [ ] Married 2. [ ] Unmarried 3. [ ] Divorce 4. [ ] Widowed 1.10. Woreda: __________________________ 1.11 Kebele: __________________________ 1.12. Distance to nearest town: [______ ] km OR [ ______ ] hrs walk 1.13. What is your major means of income generation? 1. [ ] Farming 2. [ ] Trade 3. [ ] Employment 4. [ ] Others ________________________ 1.14 How much do you earn per year (estimate based on weekily, monthly income):______Birr 1.15 Is horticulture consumed in your family? [ ] 1. Yes [ ] 2. No 1.16. Experience in horticultural products consumption? _____ years 1.17. Do you produce and consume or purchase? 1.18. If you purchase, what is the proportion of your income used for purchase of horticulture product? 1.19. If no consumption of horticulture product, why? _________________________ 77 Drylands Coordination Group II. Demand for the horticulture products 2.1 What type of horticulture products purchased for consumption? Please respond to the following questions. Crop type Quantity purchased (per market day) No. of market day per week Low price paid (birr/kg) No. of months you may buy at low price? High price paid (Birr/kg) No. of months you may buy at high price? From whom do you buy?** Vegetables Cabbage Beetroots Carrot Kale Onion Irish potato Sweet potatoes Others (specify) Fruits Orange Mandarin Lemon Avocado Banana Mango Papaya Others ** 1=Whole sellers; 2=Retailers; 3= Cooperatives; 4=Institutions/organization such as university, factory, hotels; 5= Exporters; 6 = Processors; 7= Brokers; 8= Households consumers; 9=Others (Specify) _____________ 78 Other issues, if any Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia 2.2. What are the constraints hindering consumption of horticulture? Rank horizontally* Crop type Shortage of supply Shortage of income Lack of storage at home High price of product Poor product handling Vegetables: Cabbage Beetroots Carrot Kale Onion Irish potato Sweet potatoes Others (specify) Fruits Orange Mandarin Lemon Avocado Banana Mango Papaya Others 79 Lack of market information Brokers (hinder fair sales Perish ability Others (specify) Drylands Coordination Group 2.3. Do you know the benefits of consuming horticulture product? 1. Vegetables , [ ] 1. Yes [ ] 2. No 2. Fruits [ ] 1. Yes [ ] 2. No 2.4. Do you think there is problem with consumption of horticulture product? 1. Vegetables , [ ] 1. Yes [ ] 2. No 2. Fruits [ ] 1. Yes [ ] 2. No 2.5. Do you prefer packed or fresh horticulture product? 1. Vegetables , [ ] 1. Packed [ ] 2. Fresh 2. Fruits [ ] 1. Packed [ ] 2. Fresh 2.6. What should be done to increase horticulture product consumption?____________________ III. Household and Resource Data 2.1. Family size: [ ___] Male [ ___ ] Female [____] Total 2.2. Number of working persons: [ ___ ] Male [____ ] Female [ ____ ] Total 2.3. No. of children in school: [ ___ ] Male [____ ] Female [ ____ ] Total 80 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia ANNEX 3: LIST OF KEY INFORMANTS AND EXPERTS FROM DIFFERENT INSTITUTIONS No Name Institution A. 1 Eastern Harerghe Zone Ato Kedir Mumewako 2 Ato Mohammed Nur 3 Ato Felke Borga 4 5 Alemaya Wereda Dr Kebede W/Tsadik Ato Jafar Abuderahman 6 Ato Shemelis Seife Haramaya University Woreda Agri. and Rural Development Office (WARDO) WARDO 7 Ato Senesolomon zewdie WARDO 8 9 10 11 B. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Kersa Wereda Ato Yilma Fessaha W/o Embet Alemayah Kombolcha Ato Ahmed Reshid Ato Tadesse Asefa Dire Dawa Provisional Administration Council Ato Abduerhman Alie Ato Tesfaye Alemayhu Ato Mekonnen Abate Ato Taddle Esubalw Customs Ato Showel Gezaw W/t Ayne Addis Yelima Ato Yelma Mokonnen Ato Kider Haji Ato Anteneh Asseres Ato Alebachew Dagnew W/o Fatuma Mohammed Ato Fitsum Berhan Tesfu Berhanu Kenfe W/o Emana Hassen Ato Farah Bele Ato Ogae Zonal Agri. and Rural Development Office (ZARDO) “ Title Education Head B.Sc Coffee, horticulture expert Market and credit expert Diploma B.Sc Department Head Head PHD B.Sc Livestock & Forrest Expert Input and Credit Service T/Head Diploma T/Leader Horticulture expert Diploma Diploma Livestock Team Leader Coffee/ V & F expert Diploma Diploma ARDO Head Coffee/ V. Fruit Expert A/head Head B.Sc B.sc Bsc MS.c Customs Customs Operation section chief Registration Verifier Evaluator Inspection chief Data Processor Exporter “ “ “ “ “ Diploma “ WARDO WARDO WARDO " “ Trade & Industry Plant Quarantine “ “ “ “ Customs Compound “ “ “ “ “ 81 Diploma Read/Write Drylands Coordination Group No 28 29 Name Standard Ato Getachew Indale Institution Title Education Quality standard Control Dire Dawa “ Chief B.Sc Quality Inspection B.Sc Catholic Church Kafera Dire Dawa “ “ Program Director Wholesaler “ “ M.Sc Read & Wirte Read & write Read CARE-Dire Dawa Commodity & Logistic Officer B.Sc ARDB ARDB Diploma Diploma Trade & Industry Et Fruit AISE Horticulture expert Marketing Strategy expert Department Head Branch head Sales Clerk B.Sc 12th 12th CARE WARD “ Keliso PA Areberkate Project Manager A/Prod/Prot Team/Leader Coffee, V/F Team Leader Farmer Fruit vendor B.Sc ETVET/Agarfa Diploma 10th 6th WARD Head WARD “ CATV ETFRUIT Metehara Planning representative Coffee, V/F Team Leader Academic V/Dean Branch Head Agro/Engineerin g (Diploma) Diploma Diploma B.Sc Diploma MOARD MOTI MOTI HDE MOARD Department Head Team Leader Expert Team leader Commodity exchange expert Regulatory & Inspection Service head Department Head Inspection Tam Leader Production and marketing development expert 34 Ato Ferew Mitku Catholic Church Ato Zemede Abebe Ato Yeshetela Saleh Ato Ibrahim Mohammed W/o Iyesha Mume CARE - Ethiopia Ato Getachew Gutema C. 35 36 Harari Regional State Ato Berket Eshete Ato Mersha Lemma 37 38 39 D 45 Ato Abdurselam Abdus W/o Terfech Wojetu W/o Aden Legesse Western Hararghe Zone Chiro Woreda Ato Abebayoh Haile Ato Wondale Tebek Ato Tegegne Damtaw Ato Hassen Osman W/t Tshaye Telahun Gemchus Wereda Ato Nurdin Adem 46 47 48 49 W/o Mesaye Desalgne Ato Germew Abebe Ato Lemso Gemeda Ato Zenbe Mokera F. 50 51 52 53 54 Federal Dr. Afeswork Ato Abera Amayo W/o Genet Zenebe Ato Yonas Deresse Ato Desalgn Yigzaw 55 W/o Almaz Kahsay QSCAE 56 57 58 Ato Bekele Denku Ato Aynew Arga AtoDegasa Derbaba AIQCI AIQCI MOARD 30 31 32 33 40 41 42 43 44 82 PHD M.SC B.SC B.Sc M.SC B.Sc B.Sc M.Sc B.Sc Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia ANNEX 4: LIST OF KEY INFORMANTS AND FOCUS GROUP DISCUSSION PARTICIPANTS FROM DEVELOPMENT STATION, PEASANT ASSOCIATION & WOREDA LEVEL INSTITUTIONS No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Name Hara Maya Woreda Biru Abebe Tofik Amie Abdo Mohammed Abduselam Ahmed Kadi Jindi Jemal Yuye Ibro Aliye Ismael Qali Bekele Amanu Mohamed Jebro Foad Haji Abdulahi Mohammed Ame Abdela Amin Abdela Mohammed Yusuf Mahamed Abdurahiman Mume Mardiya Leli (F) Mohammed Usuman Kersa Woreda Aehmed Yayou Musfa Hafis Jemal Yusuf Mohamed Sule Ahmed Hassen Mahamed Bakaro Jemal Abdulrahiman Amed Adem Mumie Abdealazez Yonie Kombolcha Woreda Zekaria Mohammed Ato Jafar Ahmed Ato Din Abdula Ato Yasin Beke Mahamed Yunus Musa Ahimed-Sahle Abdi Mohammed Ibsa Usuman Dawid Nuria Sahli-Woday (F) Risko Hussen (F) Institution Title PAs Fenkele PA Fenkele PA Fenkele PA Fenkele PA Fenkele PA Fenkele PA Fenkele PA Fenkele PA Efa Oromia PA Efa Oromia PA Efa Oromia PA Efa Oromia PA Efa Oromia PA Efa Oromia PA Efa Oromia PA Efa Oromia PA Efa Oromia PA Haramaya Position Multipurpose PA Collector/trader Chairman Farmer Farmer Farmer Farmer Trader DA Chairperson Secretary Farmer Farmer Farmer Farmer Farmer Farmer Trader Meda Oda PA “ Ido PA Ido PA Ido PA Ido PA Ido PA Meta Koma PA Meta Koma PA DA PA Chairperson Farmer Farmer Farmer Farmer Farmer Chairperson V/Chairperson Trader Trader DA (Plant Science) DA (Natural Resource) PA Chairperson Farmer Farmer Farmer Farmer Farmer Farmer Belisuma PA Belisuma PA Belisuma PA Belisuma PA Belisuma PA Belisuma PA Belisuma PA Belisuma PA Belisuma PA 83 Drylands Coordination Group No Name Dire Dawa Institution Title Legaharee Legder PA " Bishan Bahe PA Chairperson DA Farmer 41 42 43 44 45 46 Mohammed Ahemed W/o Tsegae Taddese Ato Mohamed Nur Adem Abdulrahiman Ibro Mohamed Ahimed Kalid Hassen Musa Ahimed Oumer Mohamed Ato Abebe Mamo Bishan Bahe PA Lega Hare Lega Hare Lega Hare Lega Hare Harar Market Farmer Chairman Farmer Farmer Farmer Trader 47 48 49 50 51 52 53 Ahmed Yayo Mumie Hassen Abedela Asuie Hasseb Usman Daniel Alemayoh Eshetu W/Yeses Monnen Zewdie Keliso PA Keliso PA Keliso PA Keliso PA Astako Maritime Make Farmer Farmer Farmer Farmer Transistor Transistor Transistor 38 39 40 Chiro Wereda 84 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia List of Publications Reports: 1 A. Synnevåg, G., Halassy, S. 1998: “Etude des indicateurs de la sécurité alimentaire dans deux sites de la zone d’intervention de l’AEN-Mali: Bambara Maodé et Ndaki (Gourma Malien)”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 1 B. Synnevåg, G. and Halassy, S. 1998: “Food Security Indicators in Two Sites of Norwegian Church Aid’s Intervention Zone in Mali: Bambara Maoudé and N’Daki (Malian Gourma)”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 2 A. Aune, J.B. and Doumbia, M.D. 1998: “Integrated Plant Nutrient Management (IPNM), Case studies of two projects in Mali: CARE Macina programme and PIDEB”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 2 B. Aune, J.B. et Doumbia, M.D. 1998: “Gestion Intégrée de Nutriments Végétaux (GINV), Etude de Cas de deux projets au Mali: Programme de CARE Macina et PIDEB”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 3 A. Berge, G., Larsen, K., Rye, S., Dembele, S.M. and Hassan, M. 1999: “Synthesis report and Four Case Studies on Gender Issues and Development of an Improved Focus on Women in Natural Resource Management and Agricultural Projects”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 3 B. Berge, G., Larsen, K., Rye, S., Dembele, S.M. et Hassan, M. 1999. “Rapport de synthèse et quatre études de cas sur Les Questions de Genre et Développement d’une Approche Améliorée concernant les Femmes et les Projets d’Agriculture et de Gestion des Ressources Naturelles”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 4 A. Sydness, M., Ba, B. 1999: “Processus de décentralisation, développement institutionnel et réorganisation des ONG financées par la Norvège au Mali”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 4 B. Sydness, M. and Ba, B. 1999: “Decentralization Process, Institution Development and Phasing out of the Norwegian Involvement in Mali”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 5. Waktola, A. and Michael, D.G. 1999: “Institutional Development and Phasing Out of the Norwegian Involvement, the Case of Awash Conservation and Development Project, Ethiopia”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 6. Waktola, A. 1999: “Exploratory Study of Two Regions in Ethiopia: Identification of Target Areas and partners for Intervention”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 7. Mossige, A. 2000: “Workshop on Gender and Rural Development – Training Manual”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 8. Synnevåg, G. et Halassy, S. 2000: ”Sécurité Semencière: Etude de la gestion et de l’approvisionnement en semences dans deux villages du cercle de Ké-Macina au Mali: Kélle et Tangana”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 85 Drylands Coordination Group 9. Abesha, D., Waktola, A, Aune, J.B. 2000: ”Agricutural Extension in the Drylands of Ethiopia”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 10. Sydness, M., Doumbia, S. et Diakité K. 2000: ”Atelier sur la décentralisation au Mali”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 11. N’Dior, P. A. et Traoré, N. 2000: ”Etude sur les programmes d’épargne et de crédit au Mali”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 12. Lode, K. and G. Kassa. 2001: ”Proceedings from a Workshop on Conflict Resolution Organised by the Drylands Coordination Group (DCG), November 8-10, 2000 Nazareth, Ethiopia”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 13. Shiferaw, B. and A. Wolday, 2001: “Revisiting the Regulatory and Supervision Framework of the Micro-Finance Industry in Ethiopia”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 14 A. Doumbia, M. D., A. Berthé and J. B. Aune, 2001: “Integrated Plant Nutrition Management (IPNM): Practical Testing of Technologies with Farmers Groups”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 14 B. Doumbia, M. D., A. Berthé and J. B. Aune, 2001: “Gestion Intégrée de Nutriments Végétaux (GINV): Tests Pratiques de Technologies avec des Groupes de Paysans”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 15. Larsen, K. and M. Hassan, 2001: “Perceptions of Knowledge and Coping Strategies in Nomadic Communities – The case of the Hawawir in Northern Sudan”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 16 A. Mossige, A., Berkele, Y. & Maiga, S., 2001: “Participation of Civil Society in the national Action Programs of the United Nation’s Convention to Combat Desertification: Synthesis of an Assessment in Ethiopia and Mali”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 16 B. Mossige, A., Berkele, Y. & Maiga, S., 2001: “La Participation de la Société Civile aux Programme d’Actions Nationaux de la Convention des Nations Unies sur la lutte contre la Désertification”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 17. Kebebew, F., D. Tsegaye and G. Synnevåg., 2001: “Traditional Coping Strategies of the Afar and Borana Pastoralists in Response to Drought”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 18. Shanmugaratnam, N., D. Mamer and M. R. Kenyi, 2002: “From Emergency Relief to Local Development and Civil Society Building: Experiences from the Norwegian Peoples’ Aid’s Interventions in Southern Sudan”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 19. Mitiku, H. and S. N. Merga, 2002. “Workshop on the Experience of Water Harvesting in the Drylands of Ethiopia: Principles and practices”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 20. Tesfai, M., V. Dawod and K. Abreha, 2002. “Management of Salt-affected Soils in the NCEW ‘Shemshemia’ Irrigation Scheme in the Upper Gash Valley of Eritrea”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 86 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia 21. Doumbia, M. D., A. Berthé and J. B. Aune, 2002: “Gestion Intégrée de Nutriments Végétaux (GINV): Tests Pratiques de Technologies avec des Groupes de Paysans- Rapport de la Campagne 2001”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 22. Haidara, Y., Dembele, M. et Bacha, A. “Formation sur la lutte contre la désertification atelier organisé par groupe de coordination des zones arides (GCoZA) du 07 au 10 octobre 2002 à Gossi (Mali)”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 23. Aune, J. B. 2003. “Desertification control, rural development and reduced CO2 emissions through the Clean Development Mechanism of the Kyoto Protocol - an impasse or a way forward?” Drylands Coordination Group and Noragric, Agricultural University of Norway. 24. Larsen, K. and Hassan, M. 2003. “Sedentarisation of Nomadic People: The Case of the Hawawir in Um Jawasir, Northern Sudan”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 25. Cissé, I. et Keita, M.S. 2003. “Etude d’impacts socio-économique et environnemental des plaines aménagées pour riziculture au Mali.” Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 26. Berkele, Y. and Mossige, A. 2003. “Indicators to Promote Civil Society’s (NGOs and CBOs) Participation in the implementation of Ethiopia’s National and Regional Action Programs of the United Nations Convention to Combat Desertification. A guideline Document”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 26B. Berkele, Y. and Mossige, A. 2003. “Indicateurs visant à promouvoir la participation de la société civile (ONG et OCB) à la mise en oeuvre en Ethiopie des Programmes d’action national et régionaux de la Convention des Nations Unies sur la lutte contre la désertification”. Drylands Coordination Group and Noragric, Agricultural University of Norway. 27. Assefa, F., Dawd, M. and Abesha, A. D. 2003. “Implementation Aspects of Integrated Pest Management (IPM): Policy and Extension Gap in Ethiopia”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 28. Haile, A., Selassie, D.G., Zereyacob, B. and Abraham, B. 2003, “On-Farm Storage Studies in Eritrea”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 29. Doumbia, M.D., Berthé, A., Aune, J.B. 2003, “Gestion Intégrée de Nutriments Végétaux (GINV): Tests Pratiques et Vulgarisation de Technologies”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 30. Mossige, A. and M. Macina 2004, “Indicateurs visant à promouvoir et suivre la participation de la Société Civile (ONG et OCB) dans la mise en œuvre des Programmes d’Action National, Régional et Communal de la Convention des Nations Unies sur la lutte contre la désertification”, Groupe de Coordination des Zones Arides et Noragric, Agricultural University of Norway. 31. Tesfay, Y. and Tafere, K. 2004. “Indigenous Rangeland resources and Conflict Management by the North Afar Pastoral Groups in Ethiopia. A Pastoral Forum Organized by the Drylands Coordination Group (DCG) in Ethiopia, June 27-28, 2003, Mekelle, Ethiopia”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 32. Kebede, D. and Retta, S. 2004. “Gender, HIV/AIDS and Food Security, Linkage and Integration into Development Interventions”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 33. Kidane, A., Araia, W., Ghebremichael, Z, and Gobezay, G. 2004. “Survey on striga and crop husbandry practices in relation to striga management and control of sorghum (Sorghum bicholor) in 87 Drylands Coordination Group the Goluge sub zone: Lessons to be learned and creating awareness”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 34. Kibreab, G., Berhane, T., and Ghezae, E. 2004. “A Study to Determine the Extent and Use of Environmental Impact Assessment of Agricultural Development Projects – A Case Study from Eritrea”, Drylands Coordination Group and Noragric, Agricultural University of Norway. 35. Meehan, F. 2004. “Female Headed Household in Tigray, Ethiopia. A Study Review”. Drylands Coordination Group and Noragric, Agricultural University of Norway. 36. Doumbia, M. Berthe, A., Aune, J. B. 2005. “Integrated Plant Nutrient Management in Mali. Summary Report 1998-2004”. Drylands Coordination Group, Miljøhuset G9, Norway. 37. Kaya, B., Traoré, C. O., Aune, J.B. 2005. “Etude d’identification des prototypes d’EcoFermes au Mali. Rapport diagnostic et plan d’action pour 2005“. Groupe de Coordination des Zones Arides, Maison de l’Environnement G9, Norvège. 38. Nedessa, B., Ali, J., Nyborg, I. 2005. ”Exploring Ecological and Socio-Economic Issues for the Improvement of Area Enclosure Management. A Case Study from Ethiopia”. Drylands Coordination Group, Miljøhuset G9, Norway. 39. Makenzi, P. 2005. “Natural Resource Management in the Didinga Hills. A Baseline Study from Budy County, South Sudan”. Drylands Coordination Group, Miljøhuset G9, Norway. 40. Ogbazghi, W., Bein, E. 2006. “Assessment of Non-Wood Forest Products and their Role in the Livelihoods of Rural Communities in the Gash-Barka Region, Eritrea”. Drylands Coordination Group, Miljøhuset G9, Norway. 41. Kouyaté, S., Haidara, C. M. 2006. “Etude sur la Problématique des Périmètres Irrigués Villageois au Nord du Mali”. Groupe de Coordination des Zones Arides, Miljøhuset G9, Norvège. 42. Haile, A. 2006. “On-Farm Storage of Chickpea, Sorghum, and Wheat in Eritrea”. Drylands Coordination Group, Miljøhuset G9, Norway. 43. Ask, V. 2006. “UNCCD and Food Security for Pastoralists within a Human Rights Context”. Drylands Coordination Group, Miljøhuset G9, Norway. 43B. Ask, V. 2006. « La CCD et la Sécurité Alimentaire des Pasteurs Dans le Contexte des Droits de l’Homme ». Drylands Coordination Group, Miljøhuset G9, Norway 44. Desta, M., Haddis, G., Ataklt, S. 2006. “Female-Headed Households and Livelihood Intervention in Four Selected Weredas in Tigray, Ethiopia.”. Drylands Coordination Group, Miljøhuset G9, Norway. 45. Araia, W, Haile, A. 2006. “Baseline study on crop husbandry, in-situ conservation and informal seed supply system in Eritrea”. Drylands Coordination Group, Miljøhuset G9, Norway. 46. Emana, B., Gebremedhin, H. 2007. “Constraints and Opportunities of Horticulture Production and Marketing in Eastern Ethiopia”. Drylands Coordination Group, Miljøhuset G9, Norway. Proceedings: 1. Drylands Coordination Group. 2000. Seminar on the Formation of DCG Ethiopia-Sudan. Proceedings from a Seminar organised by the Drylands Coordination Group in Nazareth, Ethiopia, April 10-12, 2000. DCG/Noragric, Agricultural University of Norway, Ås. 88 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia 2. Drylands Coordination Group. 2001. Seminar on the Formation of DCG Eritrea. Proceedings from a Seminar Hosted by the National Confederation of Eritrean Workers (NCEW) in Asmara, Eritrea, March 26th-28th, 2001. DCG/Noragric, Agricultural University of Norway, Ås. 3. Amha, W. 2001. Revisiting the Regulatory and Supervision Framework of the Microfinance Industry in Ethiopia. Proceedings from a Seminar Organised by the Relief Society of Tigray (REST), on behalf of the Drylands Coordination Group in Ethiopia and Sudan, In Mekelle, August 25, 2001. DCG/Noragric, Agricultural University of Norway, Ås. 4. Mossige, A. and Berkele, Y. 2001. Civil Society’s Participation in the National Action Program to Combat Desertification and Mitigate the Effects of Drought in Ethiopia. Proceedings from a Workshop organised by the Drylands Coordination Group (DCG) in Ethiopia, Debre Zeit, September 13-14, 2001. DCG/Noragric, Agricultural University of Norway, Ås. 5. Maiga, S. et Mossige, A. 2001. Participation de la Société Civile dans la Mise en Oeuvre Programme d’action pour la Convention Sur la Désertification (CCD) au Mali. L’atelier Organise par le Groupe Coordination sur les Zones Arides (GCOZA) Au Centre Aoua Keita, Bamako, Les 5 et 6 novembre 2001. GCOZA/Noragric, Agricultural University of Norway, Ås. 6. Drylands Coordination Group. 2002. Do conventions need civil society? A critical review of the role of civil society in the implementation of international conventions. Proceeding from a Seminar Arranged by the Drylands Coordination Group and Forum for Development and Environment (ForUM) in Oslo, January 15th, 2002. DCG/Noragric, Agricultural University of Norway, Ås. 7. Berkele, Y. 2002. Workshop on training of trainers in UNCCD/NAP implementation in Ethiopia. Proceedings from a workshop arranged by the Drylands Coordination Group in Ethiopia, Nazareth, June 10-15, 2002, DCG/Noragric, Agricultural University of Norway, Ås. 8. Drylands Coordination Group. 2002. Sustainable livelihoods of farmers and pastoralists in Eritrea. Proceedings from a workshop organised by DCG Eritrea in National Confederation of Eritrean Workers Conference Hall, Asmara, November 28 –29, 2002. DCG/Noragric, Agricultural University Of Norway, Ås. 9. Drylands Coordination Group. 2003. DCG networking seminar 2002, 15th-22nd November 2002, Khartoum, Sudan. DCG/Noragric, Agricultural University of Norway, Ås. Soumana, D. 2003. Atelier d’information, d’échange et de réflexion sur l’élargissement du 10. Groupe de Coordination des Zones Arides (GCoZA) au Mali, Au Centre Aoua Keita, Bamako, Les 18 et 19 février 2003. DCG/Noragric, Agricultural University of Norway, Ås. 11. Ati, H. A.and Nimir A. A. H. 2004. Training Course On The Role Of Local Institutions In Regulating Resource Use and Conflict Management, Um Jawaseer, June 2003. DCG/Noragric, Agricultural University of Norway, Ås. 12. Berkele, Y. and Ayalew, B. 2004. Training of Trainers in Implementation of UNCCD/NAP in Ethiopia. Third Round, 10-14 Nov. 2003. DCG/Noragric, Agricultural University of Norway, Ås. 13. Macina, M. 2004. Atelier National et Campagne d’Information et de Sensibilisation sur la CCD. Un Atelier organisé par la Coordination des Associations et ONG Féminines au Mali (CAFO) en partenariat avec le Groupe de Coordination des Zones Arides (GCoZA). Les 29-30 novembre 2004 à Bamako, Mali. DCG/Noragric, Agricultural University of Norway, Ås. 14. Musnad, H.A. and Nasr N. K. 2004. Experience Sharing Tour and Workshop on Shelterbelts and Fuel Wood Substitutes in Sudan. DCG/Noragric, Agricultural University of Norway, Ås. 89 Drylands Coordination Group 15. Gakou, M. 2005. Atelier d’information et de formation des ONG membres de GCoZA sur le montage des projets/ synergie entre les conventions de la génération de Rio et de la convention de Ramsar. Le 28 décembre 2004, à Bamako, Mali. GCoZA, Oslo. 16. Berkele, Y., Mossige, Anne. 2005. Awareness Promotion and Experience Sharing on the Implementation of UNCCD-NAP to Enhance Pastoralist Areas Development. Workshop organized by the Drylands Coordination Group Ethiopia for the Pastoral Affairs Standing Committee and the Natural Resource Development and Environmental Protection Standing Committee, Members of Parliament - Ethiopia. December 17-19, 2004 in Nazareth, Ethiopia. DCG, Miljøhuset, Oslo. 17. Esheteu Bekele, E., Azerefegne, F., and Abate, T. 2006. Facilitating the Implementation and Adoption of Integrated Pest Management (IPM) in Ethiopia. Planning Workshop, 13-15 October 2003, Melkassa Agricultural Research Center, EARO. Jointly organized by the Association for Advancement of IPM (ASAI) and the Ethiopian Agricultural Research Organization (EARO). DCG, Miljøhuset, Oslo. 18. Kodio, A. 2006. Atelier de Formation des Membres du GCoZA Mali à l’Approche Epargne Crédit Musow ka Jigiya Ton (MJT) au Mali. Atelier organisé par CARE Mali et le GCoZA Mali du 1er au 5 août 2005 au Centre Gabriel Cissé de Ségou au Mali. DCG, Miljøhuset, Oslo. 19. Belal, A. A. and Hussein, F. S. 2006. Awareness Raising Workshop on the Implementation of the United Nations Convention to Combat Desertification. Workshop organized by DCG Sudan for the Parliamentarians and other Stakeholders. December 28th and 29th 2005 in the Green Hall of Sudan’s Parliament, Omdurman, Sudan. DCG, Miljøhuset, Oslo. 20. Dembelé, T., Berthé, A. et Yattara, M. 2006. Atelier de formation en matière du Guide Programme Communal d’Action Environnementale (PCAE) et des techniques Gestion Intégrée de Nutriments Végétaux (GINV). Atelier Organisé par GCOZA Mali et le Consortium Synergie – AMAPROS ACD pour les membres de GCOZA et des trois communes (Saloba, Souley et Sana). Du 20 au 22 juin 2005 à la Maison du Partenariat à Bamako, Mali. DCG, Miljøhuset, Oslo. 20B. Yattara, M. 2006. PCAE ani GINV baarakqfqqrqw dùnniyaw dqmqnan lajqkalan kùnùkow sqnsqnnen. Lajqkalan sigilen sen kan GCOZA Mali ani xùgùndqmqjqkulu AMAPROS ACD fq, ka xqsin GCOZA tùndenw ni Saloba, Suleyi ani Sana komini saba kùnùmùgùw ma. K’a ta san 2005 zuwqnkalo tile 20 ma, ka se a tile 22 ma Mali la, xùgùndqmqjqkuluw ka soba la Bamakù. DCG, Miljøhuset, Oslo. 21. Touré, B. 2006. Atelier de Renforcement des Capacités des Organisations de GCoZA Mali sur les Mécanismes de Financement des Projets et Programmes pour la Mise en Oeuvre de la Convention des Nations Unies sur la Lutte contre la Désertification (CCD). Atelier Organisé par la Coordination des Associations et ONG Féminines du Mali (CAFO) et GCoZA Mali pour les membres de GCoZA Mali. Du 11 au 13 septembre 2006 au Mémorial Modibo Keita à Bamako, Mali. DCG, Miljøhuset, Oslo. 90 Constraints and Opportunities in Horticulture Production and Marketing in eastern Ethiopia Drylands Coordination Group Addresses in Norway: Secretariat of the Drylands Coordination Group Grensen 9b, 0159 Oslo, Norway Tel: +47 23 10 94 90, Fax: + 47 23 10 94 94 E-mail: dcg@drylands-group.org ADRA Norge Postboks 124, 3529 Røyse, Norway Tel.: +47 32 16 16 90, Fax: +47 32 16 16 71 E-mail: 102555.2157@compuserve.com CARE Norge Universitetsgt. 12, 0164 Oslo, Norway Tel: +47 22 20 39 30, Fax: +47 22 20 39 36 E-mail: care.norge@online.no Development Fund Grensen 9b, 0159 Oslo, Norway Tel: +47 23 10 96 00, Fax: +47 23 10 96 01 E-mail: u-fondet@u-fondet.no Norwegian Church Aid Postboks 7100, St. Olavs plass, 0130 Oslo, Norway Tel: + 47 22 09 27 00, Fax: + 47 22 09 27 20 E-mail: nca-oslo@sn.no Norwegian People’s Aid P.O. Box 8844 Youngstorget, 0028 Oslo, Norway Tel: + 47 22 03 77 00, Fax: + 47 22 17 70 82 E-mail: norsk.folkehjelp@npaid.no Noragric, Department for International Environment and Development Studies University of Life Sciences, P.O. Box 5003, 1432 Ås, Norway Tel: +47 64 94 99 50, Fax: +47 64 94 07 60 E-mail: noragric@noragric.umb.no 91