Malt Barley Value Chain in Arsi and West Arsi highlands of Ethiopia

doi:10.7176/rhss/10-23-03

Abstract

The study was undertaken in four districts of Arsi and West Arsi zones where malt barley is highly produced. Different participatory rural appraisal approaches were employed to conduct the study. The findings indicated that land allotted for malt barley production has been increased in the study areas since 2010, scarcity was noticed due to constraints related to quality and existence of malt barley competing outlets. Malt barley marketing is complex and dynamic where various actors are involved in its marketing. The marketing route changes over time depending on the demands at the terminal markets. Assela Malt Factory (AMF) plays a great role in determining malt barley price while producers are price takers. Among five major malt barley marketing channels only three of them are supplying to the factory. AMF accessed to 90% of malt barley from the channel via traders and the direct supply by farmers via cooperatives was not more than 10%. The channel via cooperatives which is strategic for both producers and the factory was serving below anticipated due to the financial constraints and management skill gaps of the cooperatives. Although a variety of constraints were existing at each identified nodes in the value chain, the major problems attributing to shortage of malt barley production within the country are inability to produce good quality malt barley because of poor field management, traders’ grain blending practice, weak linkage among farmers, cooperatives, AMF and absence of contract among farmers. Hence, improving input supply to enhance productivity and strengthening linkages among farmers, farmers’ cooperatives/unions and AMF are the major focus areas that call for policy interventions in the future. Keywords: cooperatives, malt barley, marketing route, traders DOI: 10.7176/RHSS/10-23-03 Publication date: December 31 st 2020

Highlights

In Ethiopia, the market potential for malt barley is directly correlated to the market demand for beer, which is growing significantly
3.2 Input supply and sources 3.2.1 Improved seeds supply Farmers stated that Assela Malt Factory (AMF), Kulumsa Agricultural Research center (KARC), District Bureau of Agriculture (BoA), farmers to farmers improved seed exchange, and NGOs (Self Help Africa (SHA), Rift Valley, and FAO) are the major sources of improved seeds of malt barley in the study districts
Conclusion and policy implications 5.1 Conclusion Despite the recent increase in malt barley production in Arsi and West Arsi highlands, a large quantity of malt barley produced in the area were not channeling to the factory rather significant amounts were used for food in different forms for consumption in production areas as well in other parts of the country

Summary

Introduction

In Ethiopia, the market potential for malt barley is directly correlated to the market demand for beer, which is growing significantly. ; beer production increase is noticed, the country’s per capita beer consumption still lags well behind other African countries. The market for malt barley is estimated to grow at an annual growth rate of 15% to 20% in the five years, and the beer market and demand for malt barley is projected to reach 110,000 to 130,000 metric tons in 2016 from 58,000 metric tons in 2011 (Ethiopia-Barley-Business-Case presentation (2012). At the present time, is considered as one of the cash crops produced in the highlands and its demand by malt factory has increased due to its increased capacity of malt barley processing and the expansion of breweries and beer consumption levels in the country

Methods

Results

Conclusion