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Agricultural value chains, particularly in the developing world, have been going through drastic changes over the past decades. Differences in world market participation and access to value chain technologies might however have resulted in uneven experiences across countries. In this paper, we explore their impact on prices in the value chain, using the example of two East African countries, Ethiopia and Uganda. We develop a conceptual framework and then validate the model using unique primary price data collected at several levels in the dairy value chains in both countries. We find that prices are overall significantly lower in Uganda than Ethiopia, reflecting their respective net exporting and importing status. Moreover, despite shorter value chains, we find much more significant effects of distances from the capital (the major end destination) on milk prices in Ethiopia than in Uganda. This is seemingly linked to the widespread presence of milk chilling centers in Uganda. While it has been shown that such technology is important for milk quality, we find here that they also have the added benefit to reduce the impact of farmer's remoteness on prices and therefore allow for more geographically extended value chains.
We combine in-person survey data collected in February 2018 with phone survey data collected in June and September 2021 to study how dairy value chains in Ethiopia have coped with the COVID-19 pandemic. Focusing on the major dairy value chain connecting farmers in North and West Shewa as well as peri-urban and urban producers in and around Addis Ababa to consumers in Addis Ababa, we applied a cascading survey approach in which we collected data at all levels of the value chain: dairy farmers, rural wholesalers, and urban retailers.
Quality upgrading may be lagging in value chains where the assessment and traceability of the quality of the underlying commodity is challenging. In Uganda's southwestern milk shed, a variety of initiatives are trying to increase the quality of raw milk in dairy value chains. These initiatives generally involve the introduction of technologies that enable measurement of key quality parameters at strategic nodes in the value chain, in conjunction with a system that allows for tracking of these parameters throughout the supply chain. In this paper, we use a combination of focus group discussions, key informant interviews, and quantitative data that is generated by these initiatives to document outputs, describe emerging outcomes, and reflect on the potential impact. We find clear evidence that milk quality improved, but the effects on milk prices are more subtle.
Modern marketing arrangements are increasingly being implemented to assure improved food quality and safety. However, it is not well known how these modern marketing arrangements perform in early stages of roll-out. We study this issue in the case of rural-urban milk value chains in Ethiopia, where modern processing companies – selling branded pasteurized milk – and modern retail have expanded rapidly in recent years. We find overall that the adoption levels of hygienic practices and practices leading to safer milk by dairy producers in Ethiopia are low and that there are no significant differences between traditional and modern milk value chains. While suppliers to modern processing companies are associated with more formal milk testing, they do not obtain price premiums for the adoption of improved practices nor do they obtain higher prices overall. Rewards to suppliers by modern processing companies are mostly done through non-price mechanisms. At the urban retail level, we surprisingly find that there are no price differences between branded pasteurized and raw milk and that modern retailers sell pasteurized milk at lower prices, ceteris paribus. Modern value chains to better reward hygiene and food safety in these settings are therefore called for.
We combine in-person survey data collected in February 2020 (i.e., just before the pandemic was declared) with phone survey data collected in March 2021 (i.e., one year into the pandemic) and August 2021 (i.e., approximately 18 months into the pandemic) to study how vegetable value chains in Ethiopia have coped with the COVID-19 pandemic. Focusing on the major vegetable value chain connecting farmers in East Shewa zone to consumers in Addis Ababa, we applied a cascading survey approach in which we collected data at all levels of the value chain: vegetable farmers, urban wholesalers, and retailers.
Seminar paper from the year 2016 in the subject Business economics - Investment and Finance, , language: English, abstract: Ethiopia is one of the Sub-Saharan Africa’s developing countries with a large potential in livestock, being 1st among African countries and 9th in the world. Dairying is one of the livestock production systems practiced in almost all over Ethiopia. The cattle population was estimated at about 50.9 million of which indigenous breeds accounted for 99.19 % while the rest is hybrids and pure exotic breeds. The main objective of this seminar is to review the challenges and opportunities of investment in dairy sector in Ethiopia. Dairy production in Ethiopia was mostly traditional and formal dairy production started in the early 1950s. In Ethiopia the three major production systems are: traditional smallholder; privatized state; and urban and peri-urban. Ethiopians consume less dairy products than per capita milk consumption and the country is not known to export dairy product and spent more money on importing milk and milk products. The livestock sector in general and the dairy sub-sector in particular do not make a substantial contribution to the national income, despite its large size, due to different challenges. The challenges are those attributed to demand and supply sides. Demand side includes population growth, seasonality of demand, low per capita consumption, low demand and high transaction costs. Supply side challenges can be: livestock population, animal health problem, feed and nutrition, low productivity and genetics, limited access and high cost of dairy heifers/cows, quality problem, collection problems, institutional concern, lack of technical support, inadequate extension and training services, lack of infrastructures, lack of access to land and lack of credit. This challenge lowers the investment activity in the sector in Ethiopia. Dairy sector investments have also different opportunities like huge resource base and potential for development, favorable conditions and potential for value chain development, huge increasing consumer demand for milk and dairy products, potential role in import substitution, conducive government policies, laws and regulations, income generation and employment opportunities and indigenous knowledge.
Based on unique primary surveys, we study dairy transformation processes in East Africa, specifically in Ethiopia and Uganda. Evidence on transformation and differential paths followed in doing so in these countries is often limited due to a lack of data. We note significant changes in the dairy sector over the last decade - with more adoption of cross-bred cows and higher milk yields - seemingly driven by rapid changes in local demand (Ethiopia and Uganda) and export markets (Uganda). However, while small farmers were included in that transformation in Uganda, they were not in Ethiopia. This was seemingly driven by better and cheaper accessibility for cross-bred cows that small farmers can better bear in Uganda.
Value chain based approaches offer tremendous scope for market-based improvements in production, productivity, rural economy diversification, and household incomes, but are often covered by literature that is too conceptual or heavily focused on analysis. This has created a gap in the information available to planners, practitioners, and value chain participants. Furthermore, few references are available on how these approaches can be applied specifically to developing agriculture in Africa. 'Building Competitiveness in Africa s Agriculture: A Guide to Value Chain Concepts and Applications' describes practical implementation approaches and illustrates them with scores of real African agribusiness case studies. Using these examples, the 'Guide' presents a range of concepts, analytical tools, and methodologies centered on the value chain that can be used to design, implement, and evaluate agricultural and agribusiness development initiatives. It stresses principles of market focus, collaboration, information sharing, and innovation. The 'Guide' begins by examining core concepts and issues related to value chains. A brief literature review then focuses on five topics of particular relevance to African agricultural value chains. These topics address challenges faced by value chain participants and practitioners that resonate through the many cases described in the book. The core of the book presents methodological tools and approaches that blend important value chain concepts with the topics and with sound business principles. The tools and case studies have been selected for their usefulness in supporting market-driven, private-sector initiatives to improve value chains. The 'Guide' offers 13 implementation approaches, presented within the implementation cycle of a value chain program, followed by descriptions of actual cases. Roughly 60 percent of the examples are from Africa, while the rest come from Europe, Latin America, and Asia. The 'Guide' offers useful guidance to businesspeople, policy makers, representatives of farmer or trade organizations, and others who are engaged in agro-enterprise and agribusiness development. These readers will learn how to use value chain approaches in ways that can contribute to sound operational decisions, improved market linkage, and better results for enterprise and industry development.
We study post-harvest losses (PHL) in important and rapidly growing rural-urban value chains in Ethiopia. We analyze self-reported PHL from different value chain agents – farmers, wholesale traders, processors, and retailers – based on unique large-scale data sets for two major commercial commodities, the storable staple teff and the perishable liquid milk. PHL in the most prevalent value chain pathways for teff and milk amount to between 2.2 and 3.3 percent and 2.1 and 4.3 percent of total produced quantities, respectively. We complement these findings with primary data from urban food retailers for more than 4,000 commodities. Estimates of PHL from this research overall are found to be significantly lower than is commonly assumed. We further find that the emerging modern retail sector in Ethiopia is characterized by half the level of PHL than are observed in the traditional retail sector. This is likely due to more stringent quality requirements at procurement, sales of more packaged – and therefore better protected – commodities, and better refrigeration, storage, and sales facilities. The further expected expansion of modern retail in these settings should likely lead to a lowering of PHL in food value chains, at least at the retail level.