Learning Forumof the FSRE

Catalyzing the transformation of chickpea value chain

April 2014Addis Ababa

Introduction FC is implementing integrated development project in Becho area & cooperative promotion is one of the componentIn this component one cooperative Union is established and under operation since 2012The union Comprises 35 Cooperatives (23 by FC, 12 by OSRA) in 4 Districts3417 farmers (2494 Male and 923 female) have become members and direct beneficiaries,The project catalyzing the transformation of chickpea value chain is under implementation under this component

Technology1. Multipurpose cleaning machine

• Have different size sieve and clean teff, chickpea, wheat & others

• Besides to chickpea, the union use the machine for teff and rent for seed producers and others

• Reduce 7% impurity in case of Chickpea followed by 7% premium price

• Reduce side selling due to competitive price and dividend they got from union.

• Currently, in other cooperative cleaning price per quintal is 30 ETB in Modjo area

More ….

…Technology2. New chickpea variety (Kabuli)• Increase of productivity from 10 to 15

without rhizobium & with rhizobium 25 qts

• still the productivity is lower than that indicated by research center Due to agro-eco/climatology

3. Rhizobium bacteria• Enhance productivity, • Application is simple• Fair price (120birr/hetare)• Improve soil fertility (Nitrogen fixing)• Can be accessed through union from

National soil test laboratory

Organisation• 23 legalized cooperatives are there that composes

2544 members (774F) and on average 10 ollas/coop• These cooperative have established one union• The hierarchal set up is smooth as it is incorporated

with service like input supply, credit from micro finance and dividend which uses as enforcement

• At olla level there is no transaction it is just to ease management, group collateral and provision of extension service

• The cooperative is serving the members as market outlet, save them from weighing adultery, provide dividend and other services …more

• The investments are at union level (cleaning machine, seed) for value addition grading an the cooperative level use existing resources

• The investment cost can be recovered in one year if the relation b/n union and Guts Agro industry is smooth as per agreement

… Organisation

Marketing• Become threat for the

union and farmers as the end users (WFP) interest changes

• Which results in fall price of kabuli chickpea (dropped to 650.00birr)

• Though the price is dropped kabuli variety have more economic & food security benefit than local

Economics• This chickpea creates an opportunity to increase

productivity and diversify income• Improves soil fertility, productivity of other crops

and human nutrition indirectlySpecifically; • Farmers level– increase income (by 25%) through

increased production (10 quintals more per hectare)• Cooperative level – Increase the transaction of

cooperatives and brought 40 birr/quintal minus overhead cost .?... … more

….Economics

• Union level- expected 7% (10,000quintal * 1000) premium price due to cleaning and packing minus overhead costs. ?....

• Processers: GUT Agro Industry can process up additional 10,000ql of chickpea a year. ?...

• Consumers - Reduced marketing costs resulting from development of enhanced market linkages have the potential for reducing consumer prices.

Financial efficiency• The project provided chickpea inputs (basic seed and

Rhizobium bacteria) to 1225 farmers 125 ollas through revolving seed

• Covering some part of the cost: As the union is recently established in 2012 there are other investments under implementation by the union (store & office construction, securing land for investment)

• The farmers have good experience with Harbu micro finance for credit service

• With Regards to Oromia Cooperative Bank the discussion forum is undertaken and the process is on going

• GUTS Support in inputs extension service for farmers?

Environmental issuesThe project has positive impact on the environment:• Chickpea: Nitrogen fixation and enhancing soil

fertility, • Rhizobium: is bio fertilizer that has no/low side

effect on soil unlike other chemical

Gender

The project has some positive contributions for women. • 30% of cooperative members are women 15% in

leadership in coop 28% in union• 25% accessed chickpea seed and benefited • The project supports human nutrition (especially

women and children)

Food Security

• The project ensures the availability of more chickpea product in the area

• Chickpea is rich in protein and improve nutrition

• Through crop rotation, it will contribute to food security by improving yields for cereal crops, teff, wheat and others

• Improving availability of commercially processed human food, such as Famix, shiro …

Entrepreneurship• Farmers are allocating their land for chickpea

production• Farmers are focusing on market oriented commodities • There are also some farmer traders who collect

chickpea from the market and supply to the FMOs• Some farmers also started to produce seed which fetch

better price.  • Through value addition, the union is increasing its gains• The union, by looking at the various initiatives is

getting more entrepreneurial from time to time.

I well-come your comments that add the quality of the learning points

Thank you