1

Maria Maria GraziaGrazia DD’’EgidioEgidio

From seed to pasta in Ethiopia:opportunities and challenges to overcome for small farmers

in the area of the Bale

From seed to pasta in Ethiopia:From seed to pasta in Ethiopia:opportunities and challenges opportunities and challenges

to overcome for small farmersto overcome for small farmers

in the area of the Balein the area of the Bale

Consiglio per la Ricerca e la Sperimentazione in AgricolturaConsiglio per la Ricerca e la Sperimentazione in Agricoltura

Consiglio per la Ricerca e la Sperimentazione in Agr icolturaConsiglio per la Ricerca e la Sperimentazione in Agr icolturaUnitUnit àà di Ricerca per la Valorizzazione Qualitativa dei Ce realidi Ricerca per la Valorizzazione Qualitativa dei Ce reali

Istituto Agronomico per l’Oltremare

Istituto Agronomico per l’Oltremare

ETHIOPIAETHIOPIA

Ethiopia has an area of 1.133.882 km2

and a population of about 90 MM.

It’s a Federal Democratic Republic with 13 independent Regions.

The economic growing rate is about 11% each year and an inflation rate of estimated yearly 7%.

The economy is based mainly on agriculture which accounts for about 45% of PIL, around 85% of exports and employs over 80% of the population.

Official language: Amaric and Oromic

LocalLocal moneymoney: Birr (1 : Birr (1 €€ ~ 23 Birr~ 23 Birr))

2

Agriculture has the potential to deliver the highest quality products for which the

demand of international markets is very high.

The Agriculture is the most important activity in the Ethiopian economy and the government has put in place a Strategic Plan aimed at a very rapid growth in Agriculture in order to limit imports.

AgricultureAgriculture in in EthiopiaEthiopia -- 1 1

45% of Ethiopia area (52 milion ha) is arable land, which is exclusive

property of the state and can be assigned as concession for long periods at low cost

AgricultureAgriculture in in EthiopiaEthiopia -- 22

The main agricultural product is coffee, of which Ethiopia is the fifth largest producer in the world

Very important agricoltural product are cereals

� wheat, � barley, � corn, � sorghum,� rice,� teff.

3

The Ethiopian people have got a very long social history of working together to fulfill their socio-economic needs.

The Ethiopian government has always supported the cooperatives movement.

(1960 (1960 –– 1974)1974)

In 1960 the first legislative called “Farm Workers Cooperative Decree” wasdeclared:

� to accelerate the development of the agricultural economy of the country.

RoleRole and and movementmovement ofof

cooperativescooperatives in in EthiopiaEthiopia

Cooperative Cooperative movementmovement in in EthiopiaEthiopia

(1974 (1974 –– 1991)1991)� Expansion and promotion of different cooperatives

� Distribution of consumer goods and extending agricultural credits (inputs, oxen, tractors, machinery etc.) through cooperatives.

� The establishment of cooperative training center

� Provision of domestic and international trainings.

Post 1991Post 1991Due to the economic current system an agricultural cooperative societiesproclamation (n°85/1994) was issued in order to:

� promote self-reliance among members;

� solve problems collectivity which a farmer cannot personally achieve;

� make members obtain modern technologies to increase agriculturalproduction and materials at fair price;

� satisfy the needs of community and increase the income of farmers;

� promote the culture of the members by teaching and training.

4

Durum wheat has been cultivated in Ethiopia for thousands of

years, although it has gradually been displaced by bread wheat.

Demand for pasta (spaghetti and macaroni) is growing faster as

the demand of durum wheat grain.

Low volumes and poor quality of national wheat production,

obliged Ethiopian pasta industries to import the required raw

material (mainly hard wheat).

WheatWheat in in EthiopiaEthiopia

Project “Agricultural Value Chains in Oromia”

5

� Wheat is cultivated on approximately 120,000 ha in the Bale zone (average yield 2.3 t/ha), and on about 150,000 ha in the neighbouring Arsi zone (yield 2.2 t/ha). (National average yield is1.8 t/ha - data 2010/11, for main/Mehercrop season)

� Bale zone is now better connected to the rest of the country due to a new asphalt road.

� Presence of Sinana Agricultural Research Center (SARC).

DevelopmentDevelopment project and focus on project and focus on BaleBale areaarea

PAST DISTRICT OF ETHIOPIA

� Embrace all existing Bale agro-ecologies, from Agarfa district (with bread wheat yielding 3.0-5.0 t/ha), to Ginir district (1.5-2.0 t/ha – due to drought stress).

� Involvement of the most farmers’ cooperatives as possible for fast-reaching the demanded volume of durum wheat grain, via:

StrategyStrategy

� Joint promotion of new seed multiplication schemes (i.e. the “seed” value chain) for achieving both larger volume and high quality of durum wheat “grain”.

� provision of high quality seed � training and technical assistance � building of warehouses as basic facility and asset

6

� Import substitution of thousand tons of hard wheat for local agro-processors

� Farmers’ cooperatives of first and second levels (i.e. Unions) enhanced and acting as medium-big enterprises

� Improved quality and reduced price of national pasta-macaroni for Ethiopian consumers

ExpectedExpected impactsimpacts

DurumDurum wheatwheat opportunitiesopportunities

HIGH DEMANDHIGH DEMAND

HIGH PRICE EXPECTATIONSHIGH PRICE EXPECTATIONS

FUTURE GROWTHFUTURE GROWTH

National Pasta Factories

300,000 – 500,000 qt

Factories are currentlyobliged to pay hugeamount of money forimporting hard wheat

INTERNATIONAL DEMANDINTERNATIONAL DEMAND

EXPORTEXPORT

7

To substitute Hard Wheat Importationby local Durum Wheat production

with Bale zone leading the processtoward an yearly production ofabout 500,000 quintals of DW

…will it be possible for Bale?

DurumDurum wheatwheat: the challenge: the challenge

…yes for some reasons

1- DW will be a crop diversification for about 20% of Bale’s annual area and production of wheat (only 10% with Arsi)

2- There is a full set of DW varieties with high productivity and quality, locally selected by Sinana research center which holds all property rights on them

3- An experienced and successful linkage of researchers, development agents, cooperatives and Unions, private enterprises, NGOs, local institutions fully cooperating for the Zone development

4- Growing determination of farmers to take the leadership of their own development

DurumDurum wheatwheat: the challenge: the challenge

8

DURUM WHEATGRAIN

- High protein content

- Huge bulks

- Homogeneus

- The same over time

Good seed of goodvarieties (Bakalchaand Ejersa)

Suitable soils and crop management

Huge amount of seed

Rigorous grain bulking(no admisture at harvest and storing )

Maintenance ofseed purity

DurumDurum wheatwheat: : whatwhat & & howhow??

MARKET local national international

PROCESSING none semi-processed transformed

PACKAGING none informal packed&labelled

QUANTITY & small & medium & huge &HOMOGENEITY poor partial high

UNIFORMITY poor medium extrem. highover time

FUTUREPRESENT

JumpingJumping intointo the futurethe future

9

In the first cropping season (August 2011- January 2012) SARC delivered 46t of basic seed (Bakalcha and Ejersa varieties).

A selected group of farmers (about 240) from 15 primary cooperatives (about 6,500 members) in five districts of the Bale zone (Agarfa, Ginir, Gololcha, Goroand Sinana) received the seed together with training and technical assistance by Sinana Agricultural Research Center ((SARC) researchers and district experts.

Total production stands at about 750t (average yield approx. 2.4t/ha).

First First resultsresults

tons per ha Protein (%)(12% moisture)

3.1 10.5

2.4 10.8

2.4 12.5

2.0 11.0

2.0 12.1

2000-1500 m asl

3000-2500 m asl

Average yield and protein content of two varieties in 5 districts. Protein content is measured on 12 % moisture basis. Altitude is in a diminishing trend, while water deficit is increasing from West to East.

Innovative grain supply contracts between the cooperative unions and the local food processing industry were signed.

A premium price (incentive price) was recognised for every increment of protein content over a minimum fixed standard.

Minimum marketable unit will be a full loaded truck (about 40 t), with transport cost paid by the industry.

The most protein-rich batches of durum wheat received prices ca. 30% higher than bread wheat.

Main goalsMain goals

10

• Signature of Pre-cultivation Contracts between Industries and Cooperatives-Unions (before next Meher season!!)

DurumDurum wheatwheat: : contractualcontractual agreementsagreements

• Unions collecting and redistributing the high-quality seeds (needed for next Meher!!)

• Parallel & fast development of the Seed Value Chain

• SARC acting for quality control on grain and seed production

• MPCoops-Unions enhanced their internal managerial and technical staff

�A base price equal to the prevailing local market price forbread wheat : 700 Birr per quintal

�A premium (10 Birr for each 0.1% increment of protein) till a maximum of 12 % protein (850 Birr per quintal)

11

HistoryHistory of Projectof Project20032003 – first activities started within the Italian cooperation “Arsi-Bale Rural Development Project (ABRDP)”

for durum wheat re-introduction, conservation, enhancement. Main partners were Istituto Agronomicoper l’Oltremare (IAO), Slow Food, ABRDP and local Ngo Ethio-Organic Seed Action (EOSA)

20042004 –– Istituto Agronomico per l’Oltremare (IAO) signed an agreement with Istituto Sperimentale per la Cerealicoltura (ISC-Rome) for the execution of different scientific activities and supporting for realization of Ethiopian quality laboratory..

20052005 –– study period (two weeks) in Rome for 4 Ethiopian researchers at CRA

20062006 –– two weeks training in Ethiopia for 15 Ethiopian technicians of SARC and pasta industries by Italian technicians of IAO and CRA –– study tour (two weeks) in Italy for 4 high-level officials at various Italian companies assisted by CRA–– training in Ethiopia for 4 Ethiopian technicians (SARC) on chemical and rheological analysis (CRA)–– training in Ethiopia for 8 Ethiopian technicians (SARC) on electrophoretic techniques (IAO, CRA)

20072007 –– support activities, at distance, to the actions of field and laboratory (IAO, CRA)

20082008 –– formulation formulation of the Italian development cooperation project for agricultural strenghtening (IAO)

20092009 –– approval of the project by the Italian Development Cooperation

20102010 –– ratification of the bilateral ratification of the bilateral agreement for the implementation of the project

20112011 –– start of activities of project “Agricultural Value Chains in Oromia”–– study period (two weeks) in Rome for 3 Ethiopian researchers at CRA

20122012 –– qualitative analysis control of Ethiopian durum wheat samples (CRA) for price determination–– wworkshop in Ethiopia on first results of project and CRA participation

12

In In memorymemory ofof ……..

ANDREA CONCIATORIANDREA CONCIATORI