Federal democratic republic of ethiopia ministry of agriculture
COMPONENT 4: AGRICULTURAL MARKETING AND VALUE CHAIN DEVELOPMENT
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- Sub Component 4.1 : Support Agricultural Input Supply System
- 1.1.23Support to Promotion and Distribution of Improved Agricultural Inputs
- 1.1.24Strengthen input /output Regulation and Certification
- 1.1.25Capacity Building
COMPONENT 4: AGRICULTURAL MARKETING AND VALUE CHAIN DEVELOPMENTComponent Overview Transforming Ethiopian agriculture from its current subsistence state to market oriented production system forms the basis of the agricultural development strategy of the Government of Ethiopia (GoE). Smallholder farmers face the problem of low productivity combined with, among others, lack of market access, distorted market prices, inadequate market information, high transaction cost, shortage of working capital and underdeveloped and unreliable infrastructure. Many past interventions have too often paid little attention to agribusiness actors (input suppliers, intermediaries, buyers and processors), focusing too much on increasing farmer production and productivity. These inadequacies observed in past interventions convinced the government and many donors to adopt different approaches towards a parallel effort to improve agricultural market conditions. As a result, some programs such as Improving Productivity and Market Success (IPMS) of Ethiopian farmers and the first phase of AGP have to some extent contributed to laying the foundation needed to implement specific interventions to improve agricultural market and marketing conditions. Notably, some farmer cooperatives and unions, through tailored support from the GoE and development partners, have improved their competitiveness by increasing scale of combined outputs, which has increased their bargaining power in market. Moreover, a holistic approach that takes into account all actors, including market actors in specific value chain, has been attempted in the past but the approach still requires strengthening in depth and breadth. The overall objective of this component is to Support commercialization of Small Holder Farmers. The value Chain development will leverage on farm productivity improvements through investments in markets and agribusiness, as well as direct producer level interventions as needed. Thus, the component will have very tight linkage with the other AGP II components especially with component 1, component 2 and component 3 as they are directly engaged in the activities that enhances agricultural production and productivity with particular emphasis to VC commodities. The component will link its activities through provision of information required in the demand/market side on the production of the required volume and quality of VC commodities and give technical support during implementation of the various activities. Moreover the various crosscutting issues such as Gender, Nutrition and climate smart agriculture activities are mainstreamed in the pertinent sub component interventions implemented under the component. The Agriculture marketing and value chain component has got four sub components; namely, (i) supporting agricultural input supply system, (ii) establishing and strengthening farmers’ organizations (iii) supporting agribusiness development, and (iv) supporting market infrastructure development and management and are explained in detail as under. Sub Component 4.1 : Support Agricultural Input Supply SystemAgricultural input supplies are critical for ensuring production. There is ample research proving that using the appropriate level of input could double yields, but input supply system currently lack a comprehensive and efficient distribution channel to capitalize on this opportunity. In transforming agriculture from subsistence to market oriented production system availability of improved inputs/technologies is very crucial. Such inputs, in addition to increasing agricultural production, will help farmers to access market through its effect in a larger volume of surpluses of quality products. The main objective of this sub component is to create access to sufficient quantity and quality of agricultural inputs through private sector, farmer groups, cooperatives and public institutions when required and developing and updating of guidelines related to input regulation and certification system. The sub component has the following three sub-sub components i) Support to promotion and distribution of improved agricultural inputs ii) Strengthen input regulation and certification iii) Human resource capacity building. 1.1.23Support to Promotion and Distribution of Improved Agricultural InputsThe government of Ethiopia has pursued a range of policies and investments to boost agricultural production and productivity. An important tool has been to increase the availability of improved seed, chemical fertilizers, and extension services for small-scale, resource-poor farmers. Agricultural input supplies are critical for ensuring production. Many research studies have proved that using appropriate level of inputs could double yields, but present input supply system lacks comprehensive and efficient distribution channel to capitalize on this opportunity. The facts show that only 15% of the seed requirement of farmers was met while only 43% of farmers were supplied with fertilizer in the 2011 Meher season17 with little improvement since then. The challenge on the market side is to improve output supply while providing incentives for the increased use and adaption. The GoE controls supply of seeds and fertilizer while agro chemicals are offered through the private suppliers and dealers with the exception of the migratory pest that are controlled by the government. This sub-sub component aims to strengthen the seed supply through introduction of alternative supply channels to the existing channels. The AGP II will support the implementation of the following interventions.
Community Based Seed Production intervention aims to create self-sustaining CBSPs that fulfill current unmet seed demand (specifically on self-pollinating varieties), reach remote geographies, and effectively produce quality seed that environmentally benefit and adapts to the diverse agro-ecologies. This intervention addresses gaps and challenges of crops, which are often neglected by the formal sector, by following a decentralized approach. The AGP II will continue supporting the establishment and strengthening of community based crop and forage seed production of improved varieties and planting materials in response to local demand and suitability through designing community based seed production intervention based on previous experiences and integrating the best practices of Integrated Seed Sector Development (ISSD) and scale-up them to more geographical areas. Specific activities include:
The lead implementers of this intervention are MoA crop and livestock directorates and FCA in collaboration with RBoA and Regional Cooperative Promotion (RCP) institution.
Most of the improved animal breeds, artificial insemination service, animal health service and forage seed is supplied by the public sector, but the contribution of the private sector is growing. To meet the very ambitious production (milk, beef, sheep & goat meat, chicken meat and eggs) targets set in the Livestock Master Plan and GTP II, the predominantly subsistent mode of production of smallholder animal farmers will have to be transformed to one of greater market orientation supported by reliable and consistent supply of essential inputs including formulated concentrate feeds, quality roughage (hay, fodder), improved breeding stock (of milk cows, meat and egg chickens), artificial insemination services and veterinary supplies. The specific activities will include:
Therefore, there have been attempts to introduce improved egg type and dual purpose poultry parent stocks to government poultry multiplication centers. These improved parent stocks optimistically serve for about two to three years and should be replaced by new flocks. Thus, the AGP II will support the purchase of 30,000 new day old chicks of parent flocks of dual purpose from the EIAR through covering the production cost of the parental stocks and deliver to the regional multiplication centers only for one time to replace the old stock. Exit strategy: - For the sustainability the program will conduct a study on the pros and cons of the attempts being made so far in the transfer of the business to private sector. The complete transfer 2 poultry multiplication center to the private sector by the Oromiya regional state has failed as the individuals who bought the multiplication center have completely stopped multiplication of day old chicks and changed the centers to other business. However, the approach used by the Tigray regional state of changing the management of the poultry multiplication center through Public Private Partnership (PPP) has shown good progress. Thus, as an exit strategy, the program will conduct study on both approach used by the Oromiya and Tigray regional states and implement in the other regions based on the output of the study.
The objective of the Input Tracking System (ITS) is to insure that agricultural inputs, fertilizer & certified seeds, reach the farmers on-time before the planting season as there is a delay in input distribution in distant areas of the country. The ITS will track the movement of inputs across the distribution chain, centralize the data, and create clear visibility at the Federal, Regional, Zone, Woreda and Seed Producers level. Any bottlenecks and distribution delays are identified early in the process to allow ample time to course correct any delays, and ultimately insure that agricultural inputs reach the male and female farmers on-time before the planting season. Additionally, this system can assist experts and pertinent stakeholders to develop regular input reports and plan for the upcoming season based on the information and results generated from this system. Input tracking has been implemented by ATA as part of wheat value chain Project in 2012 in selected woredas of Oromiya. Based on the lessons learned during this intervention, a standalone Input Tracking System has been piloted in thirty-three woredas in Oromiya and three woredas in SNNPR. This system was designed to track seed that was distributed in both Direct and Non-Direct seed marketing modalities. To date, approximately 600 primary cooperatives have registered into the system, allowing system users, dependent on their access to assess woreda and PC level input data (requested, allocated, delivered, and sold to farmer amounts). ATA has planned to scale up the system in 147 ATA Value Chain woredas in the four regions (Amhara, Oromiya, Tigray, and SNNP) in 2015. Similarly, AGP II will support the establishment of IT based input trucking system in 75 AGP target woredas outside the 147 ATA designated Value Chain woredas planned for the 2015 ITS expansion plan. The lead implementer of this intervention will be the input marketing directorate of the MoA in collaboration with the regional BoA. The activities associated with the establishment of the ITs based Input Tracking System are: -
To ensure sustainable access of farmers to improved agricultural inputs, a wide range of inefficiencies and bottlenecks that currently exist in the country’s seed distribution system should be addressed. These current challenges include limited technical and infrastructural capacity of cooperatives to market seed effectively, limited alternatives for farmers to access seed beyond cooperatives, and limited inspection capacity during seed distribution. A modality whereby seed producers directly market the seed they produce through well-trained and licensed distribution agents can be an effective mechanism to overcome these obstacles and improve seed marketing and distribution efforts in the country. DSM aims to establish a market-based seed distribution system that enables all qualified seed producers to directly market seed to farmers through multiple outlets in a competitive manner. DSM has been proved to shorten the supply chain and helps improve choice, timeliness, and accountability of operators. Moreover, real-time management of inventory by producers will also ensure supply meets effective demand. Target is to scale-out DSM throughout the country as a reformed seed marketing and distribution system. The activities will be implemented by the Input Marketing Directorate of the MoA in collaboration with the RBoA. AGP II will support in the following activities:
1.1.24Strengthen input /output Regulation and CertificationOne of the important functions of GoE’s, in addition to provision of inputs, has been to register and control the available inputs (whether imported or produced domestically). In addition to the regulatory role, the GoE monitors the quality of these inputs once they are on the market. Government regulation is sometimes justified as this screening and testing function will direct farmers towards the most appropriate inputs. With a rapidly changing agricultural situation, it is important that the regulation of inputs be reviewed and updated. Based on these facts, the AGP II will support the input /output regulation and certification system through developing, reviewing and updating of various regulations with regard to agricultural inputs with due emphasis being given to the promotion of environmentally friendly inputs. The AGP II will support the following activities:-
Regulatory systems often mandate and monitor the quality of inputs that are sold, to ensure they are unadulterated and correctly labeled. With a rapidly changing agricultural situation it is more important that the input/output regulation and certification systems be reviewed and updated. Based on these facts the AGP II will support the input/output regulation and certification systems through reviewing, updating and development of various regulations with regard to agricultural inputs with due emphasis being given to the promotion of non polluting; environmentally friendly inputs. The lead implementer of the activities will be crop and livestock regulatory directorates of MoA.
The GoE’s involvement in the provision of inputs has been accompanied by a regulatory role that registers and controls the inputs that are available (whether imported or produced domestically) and monitors the quality of those products once they are on the market. However, there is no regulatory guideline developed for the importing, manufacturing and distribution of agricultural machineries. Based on this fact the AGP II will support development of regulatory guidelines for agricultural mechanization technology imports, manufacturing and distribution. The responsible institution for the implementation of the intervention will be the agricultural mechanization directorate under MoA.
Residue monitoring plan (RMP) is a prerequisite for developing and developed countries interested to export animal products and crops to European Union (EU) member states. Honey is the only animal product that entered into the EU market from Ethiopian animal products. The country has been included in the Third Country Listing in accordance with Council Directive 96/23/EC since 2008. The plan shall be submitted by countries proving that they have guarantee measures in place to monitor residues of veterinary drugs, pesticides and contaminants in animal products. The RMP is updated yearly with the inclusion of honey sample test (analysis) results carried out by an accredited laboratory. The major tasks in the RMP are producing the plan document, collecting honey samples as per the official sampling procedures of EU Directive from designated exporter’s collection sites, coding the samples, sampling level and frequency, addressing the samples to an accredited laboratory for analysis and incorporating the test result template to the RMP. A consultant will be hired to manage the aforementioned activities. AGP II is proposed to cover costs of preparation for the RMP and honey sample analysis. The MoA is the competent authority to liaison and the Ethiopian Apiculture Board and/ or the Ethiopian Honey & Beeswax Exporters Association will shoulder the responsibility of conducting this annual accreditation process. 1.1.25Capacity BuildingTo effectively implement the activities mentioned under this sub component human resource capacity building will be given for the implementers of the activities. Thus, the following capacity building activities will be conducted with the assistance of AGP II implemented by the concerned directorates of the MoA, FCA in collaboration with ATA, RBoA and RCP institution.
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