Review of Wheat Value Chain in Ethiopia

doi:10.7176/jaas/77-03

Abstract

In Ethiopia, agriculture contributes over 35.8 percent to the national gross domestic product (GDP), almost 90 percent of export and 72.7percent of employment. Wheat production in 2020 for Ethiopia was 5,100 thousand tons. Ethiopia is the second largest wheat producers in Sub Saharan Africa next to South Africa, with a potential expansion to 1.3 million hectare. The objective of this review is to identify wheat value chain the key actors and their roles in wheat value chain and challenges and opportunities of wheat value chain in Ethiopia. The main actors in the chain include producers, processor, assembler, wholesaler, retailers, and consumers whereas the indirect actors are financial institutions, governments, NGOs). Marketing channel is a business structure of interdependent organizations involved in the process of making the product or service available for consumption starting from product origin. In terms of regional production potential Oromia contributes (57%), Amhara (28%), SNNP (8.7%) and Tigray (6.2%). These show that there is a weak linkage among the wheat value chain actors in Ethiopia. One of the indicators for this weak linkage is the absence (very low level) of linkage between producers and millers few of the wheat produced is directly sold to millers. Keywords: Value Chain, Wheat, Ethiopia DOI: 10.7176/JAAS/77-03 Publication date: January 31 st 2022

Highlights

In Ethiopia, agriculture contributes over 35.8 percent to the national gross domestic product (GDP), almost 90 percent of export and 72.7percent of employment (CSA, 2018)
Marketing channel in Ethiopia Wheat has large number of marketing channels; it passes through different options of channels depending on the area of production and availability of infrastructures
The amount of wheat products moved from farmers to users within each channel is different

Summary

Introduction

In Ethiopia, agriculture contributes over 35.8 percent to the national gross domestic product (GDP), almost 90 percent of export and 72.7percent of employment (CSA, 2018). It used for markets; it contributes to 80% of the total marketed quantity of cereal production; there is a large demand-supply gap Smallholder farmers market their wheat produce only 20% of production and 80% of their total production are used for consumption; the per capital share of quantity consumed in pastoral areas, humid low highlands, small and large cities are 20%, 1%, 6% and 9% of all food consumptions respectively Dubale A., 2018 cited (World Bank, 2012, Berhane et al, 2011; FAO, 2013; USDA, 2013). Wheat production in Ethiopia for 2021/22 is projected to 5.18 million tons, up by 1.6 percent over the 2020/21 production estimate This is due to more GOE engagement in irrigation, better input supply, and mechanized farming in the lowland and central parts of the country. Wheat production in Ethiopia is limited to smallholder farmers who use rainfed agriculture and are not able to produce enough to feed the growing population of the country, currently estimated to be more than 110 million people.

Wheat producing areas in Ethiopia

Wheat value chain actors and their functions Input suppliers

Findings

Conclusion and Recommendations