Part I. VALUE CHAIN IDENTIFICATION & ANALYSIS REPORT 1.1 1 ...
Transcript of Part I. VALUE CHAIN IDENTIFICATION & ANALYSIS REPORT 1.1 1 ...
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TABLE OF CONTENT
Part I. VALUE CHAIN IDENTIFICATION & ANALYSIS REPORT
1.1 Executive summary
1.2 Background of the study and the study area
1.3 Overview of the sub-sector(s) and VC Selection
1.4 Value Chain Analysis (to be done for each selected VC
1.4.1 Mapping
1.4.2 Quantification
1.4.3 Economic analysis
1.4.3 End market
1.4.4 Value Chain Constraints
1.4.5 Market Based Solutions
1.4.6 Value Chain Governance
1.5 Value Chain Vision and Mission/Objectives
1.6 Upgrading strategies
1.7 Proposed Intervention Programs
1.8 Foreseen risks and mitigation mechanisms
1.9 Action Plan
1.10 Monitoring and Evaluation
Labour Market Assessment report:
2.1 Overview of labour market demand and supply
2.2 Assessment of youth unemployment situation in the study area
2.3 The skill and knowledge gap of the youth to meet market demand
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2,4 Possibilities to migrate in search of job out of the area
2.5 Government intervention programs and their level of effectiveness
2.6 Recommendations to improve unemployment problem of the youth
by responsible bodies
2.7 The role of your organization in improving the unemployment problem
of the youth
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LIST OF ACRONYMS & ABBREVIATION
WCAT = Wabe Children’s Aid and Training
ETB = Ethiopian Birr
MSE = Micro & Small Enterprise
NGO = Non-Governmental Organization
TVET = Technical, Vocational & Education & Training
TVETDE= Technical, Vocational & Education Development Enterprise
1.1 Executive Summary
The VCD and labour market assessment was conducted in Debre Tabor Town Adminstration
from 17th - 23rd June 2014. The assessment has two major parts: these are value chain
identification and labour market assessment. Despite the limitations attempt was made in
assessing the types of demandable skills and products in the area along with the labor market
assessment. Checklists are used to collect information from the interview and focus group
discussion. In addition, information has been collected from secondary sources and utilized in
this report. During the assessment people were selected from Debre Tabor TVET College,
Woreda Technical & Vocational Development Enterprise Office, Agriculture Office, Women,
Children and Youth Affairs Office, and beneficiary youth. Focus group discussions were held
separately for the sector office representatives and youth group so that the youth can provide
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input on employer perceptions of youth’s skill. Moreover; interviews were made with the private
traders and producers.
The main objective of this assessment is to ensure that the training provided for the youth is
demand based, and the project beneficiaries have a tangible outcome after training. It is
important in determining the skills employers look for and what types of constraints exist for
starting their business.
The value chain selection result revealed that in Debre Town town in terms of competitiveness,
targeting and favorable business environment, poultry and vegetable production are chosen.
Statement of the problem
Our life is an odd mixture of different moments of action and inaction, work and rest.
Work/employment provides us with an inner creative joy. It saves us from the dullness and
boredom of life. It puts our energies to a proper use. On the contrary, unused energies create
disorders in us. Let us look at the unemployment rate at global, continental, national, regional,
zonal and Woreda level.
In its annual “Global Employment Trends” report, the ILO said an estimated 201.8 million
people were jobless in 2013, up by nearly 5 million in one year. Youth were the biggest
casualties, with 74.5 million people aged 15–24 unemployed in 2013, an increase of more than
700,000. There were a staggering 37.1 million fewer young people in employment in 2013 than
in 2007 (World Socialist Web Site).
Similarly, Africa is deeply affected with a high rate of unemployment especially among the
youth. Africa is now having the most youthful population in the world with the youth covering
close to between 60% and 70% of the continents population. Though unemployment is seen
manifested all over the world, the case of Africa is very dilapidating to say the least (Modern
Ghana).
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At regional level consideration, in sub Saharan Africa paid employment opportunities are scare
and the vulnerable employment rate, at 77.4 percent in 2013, remained the highest of all regions
(ILO). In Ethiopia unemployment rate was 5.4 from 2009 to 2012 (World Bank).
Amahara region in general and Debre Tabor town in particular could not be immune from the
consequents of unemployment rather they are being ravaged by the social and economic toils of
the unemployment.
All the paragraphs listed above attest that unemployment is an alarmingly growing and serious
menace. The incidence of unemployment is caused by different factors like lack of job creation,
vulnerability of young workers to layoffs when economic growth falters, high labor costs or
unrealistic wage expectations on the part of youth, discrimination, poor access to fundamental
education, rapid economic change, and the compounded labor-market disadvantages that
accompany poverty (World Economic Forum).
Its effect has serious result on the youth. Therefore it is vital to make an adequate and conscious
effort to improve the situation: improve the educational level of youth, equip youth with
marketable skill; engage them in the most profitable agricultural product; enhance their
entrepreneurial skill and drafting school curricular around producing skilled individuals in the
technical and vocational field.
1.2 Background of the Study and Study Area
Labour market assessment is an analysis of available employment and self-employment
opportunities where a program is operating. This type of study is usually done by sector, such as
agriculture, manufacturing, etc. It involve detailed analysis of the types of skills employers look
for, hiring trends, perceptions by youth of available employment and self-employment, and
perceptions by employers and others about the willingness and ability of youth to engage in
productivity in the workforce. It ensures that the “supply” of trained workers in a particular
workforce program meets the “demand” for workers, and that the program beneficiaries have a
tangible outcome after training. Ethiopia is among the poorest countries in the world. Although
encouraging achievements in improving basic aspects of life were recorded in the last ten years,
human development indicators still remain at very low levels compared with the rest of the
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world. Population is growing by around 2 million people annually, putting stress on the
country’s resource base, the ability to deliver services and the labour market.
The town was established in 1327 E.C during the reign of Atse Seiphe Ardi. It is surrounded by
Farta wereda. Debre-Tabor town is situated at 667 km away from the country’s capital city Addis
Ababa and 100 km from the regional town Bahir Dar. The town administration has 8 kebeles (4
rural surrounding and 4 urban kebeles). Attitudinally, the town is found at 2600-2860 meter
above sea levels. Its area is 11012 km2. According to the 2007 population census, the total
population of the town is 71530 (35567 males and 35962 females). According to the information
obtained from the town administration, about 85 % of the population is agrarian and 15 % of the
population is engaged in trade, small and micro-enterprises and government, PLC and NGO
work.
Debre Tabor town is one of the towns with high unemployment rate in the region.
Objective of the study
To gather adequate data to identify profitable agricultural VCs and labor market
To assist the targeted TVET to determine the type of trainings to be given to beneficiary youths
Significance of the study
Conducting this kind of assessment work have both practical and theoretical values. Practically
the research will serve as source of information for law enforcing bodies; concerned government
offices (Women Children Youth Labor and Social Affairs, Technique Vocational and Enterprises
Development Office); unemployed and vulnerable youth; nongovernmental organization,
researchers and others. For these people the research will improve their understanding on the
magnitude of the unemployment; the nature of labor market; and preventive, palliative and
curative measures to be taken in averting the problem.
The theoretical contributions of the study could be that, conducting this king of research
contributes to introduce some into the quantum of knowledge on the depth and gravity of the
unemployment and ways of doing something about the issue.
Scope and limitation of the study
This labor market and value chain assessment focuses on Debre Tabor town. The assessment
zeroed in on identifying potential VC, developing chain for the selected product, identify
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potential demand and skill gap o meet the demand. But the finding and recommendation of the
assessment can be used for other parts of the country having similar socio-economic, political,
administrative and ecological setting.
Limitation of the study
Our effort to find an organized data on labor market and VC related issue was with gap in having
enough statistical data or study which indicates unemployment rate in general and youth
unemployment specifically. Moreover, poor documentation with regard to employment
particularly youth information was major challenge during the study. Therefore, it is difficult to
indicate the unemployment rate and ratio against the population. Hence we could not substantiate
our primary data with the secondary ones. This may have a little effect on the quality of the
labour market assessment.
Methodology
The methodologies used in this assessment are conducting consultation workshop, FGD and
analyze the value chain and market analysis, interview was also conducted with merchants and
focus group discussion with the target beneficiaries. In addition to this, secondary sources are
investigated.
The criteria used to select the potential value chain to be worked on include:
Major Criterion 1: Competitiveness
Competitiveness is defined as a production ability to achieve and maintain an edge over market
competitor through an optimal combination of efficiency, product differentiation and access to
new or niche markets. Significant, sustainable increases in income and employment are
dependent on small scale enterprise growth and competitiveness. When measuring
competitiveness, it is important to remember that value chains and their end markets are
dynamic, and that some possible chains may not exist or may be only nascent at the time of the
analysis.
2. Major Criterion 2: Targeting
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Targeting can be measured by the product capacity to sustain income gains, employment and
asset development. Growth in small scale enterprises with high rates of employment or micro
and small enterprise (MSE) participation will impact (i.e., reduce) poverty more than growth in
enterprises with low employment and minimal MSE participation. Assessing the potential
breadth and depth of benefits resulting from the development of various sectors is an essential
aspect of value chain selection.
The following were lists of potential value chain raised in the FGD
1. Sheep fattening
2. Diary
3. Poultry
4. Vegetables
5. Beekeeping
6. Cattle fattening
7. Fishery
8. Plant seedling/Nursery site
9. Floriculture
10. Ornamental plant
11. Fruits
Using the above two criteria (i.e Competitiveness and Targeting), the selection is under taken
as shown in below table
High priority
Poultry
Vegetables
Fruits
Diary
Cattle fattening
Sheep fattening
Plant seedling
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Low Priority
Beekeeping
Fishery
Ornamental
Low Medium High
• Table 1. Short-list value chain candidates (using matrix) among from identified candidate
products,
• Since Poultry and Vegetables were Short-listed as final feasible value chain product using
the above matrix among the identified candidate products, there was no need for the team
to go on ranking short-listed candidates using scoring grid.
The salient constraints identified and suggested possible market based solution were
Selected Value Chain Identified Constraint Possible market based
solution
Poultry
Management & Information
- Access to
appropriate tools for
smallholders
- Training farmers in
technical skills with
regard to fulfilling
buyers specification
- Establish resource
centre in the TVET
Disease Linking the youth
with Agricultural
office for regular
follow up and
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vaccination like
Bread selection
should made in
consultation with
Woreda Agricultural
office
Skill - TVETs should be
capacitated
empowered and so
that they can
provide quality
Training for the
youth
Vegetables
Disease
- Linkage with Adet
research centre for better
seedling, follow up
- Linkage with woreda
agricultural office for prior
protection and medication
Skill - TVETs should be
capacitated
empowered and so
that they can
provide quality
Training for the
youth
Research Linking the youth with
Adet research institute and
strengthening the resource
centre in the targeted
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TVET
Table 2 The salient constraints identified and suggested possible market based solution
End market
The major end market identified includes Hotel, Café, Restaurant, Household in Debre
Tabor town and neighbouring town particularly Umera and Bahir Dar.
The suppliers/ competitor are mostly individual with different egg size and quality. They
also have no organized value chain which will be great opportunity for this value chain.
According to the participants of FGD the seasonal price inflation along with lack of
availability in many shops could be a good indicator of better demand and poor supply.
A. Poultry
Basic Sequence of Functions in Poultry Production Value Chain in Debre Tabor Town
‘
Feed egg production
Hens and cocks
Day old chicks
Shelter
Cleaning bulking distributing retailing
harvesting Storing Storing Storing packing
Storing into
Baking wax small
Supply units
Provide Input Production
Management
Whole- saler
Consumer
Retailer
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Mapping with Basic Components of Egg Product Chain
WAO
Municipality
Peasants, Individuals
in D/T city,
Enterprises
Whole salers senders Shops
M
E
S
O
M
I
C
R
O
Input
Supplier
Youth
associations Wholesaler Retailer
ACSI
Traders’
union
WAO ACSI &
WAO
D/Tabor
TVET College
ACSI
Technology
Suppliers
ACSI
WCAT (NGO)
TVEDE TVED
Consumer
WCAT(NGO)
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M
A
C
R
O
MOA D/T University
Amhara
Regional State
ACSI Office
(General
Board)
Tax Authority
Trade & Investment
Office
MOA
Cooperati
ves
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Poultry Market Channel of Debre Tabor
I. Producer – consumers ( 31%)
II. Producer – wholesalers –consumers ( 28%)
III. Producer – retailers – consumers ( 19%)
IV. Producers – Distributors-consumers (22%)
Poultry Producers
Wholesalers
Retailer Pastry Houses
Local and neighbor city
Consumers
Distributers
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In the area, the price of egg differs seasonally. During holidays and special occasions with
ceremony like wedding he price even goes to 3.50birr while normally the price is 3.00 birr.
Moreover, during the cold season, productivity of the hen decreases resulting in price fluctuation.
Calculation of Value-Addition and Operational Margin: of poultry (Egg) Production
Sales/Killo 2.00 2.75 3.00
Input cost
0.60
hen/feed/shelter
Medicine
Material cost
0.50
Feeding
equipment
And shelter
.15
boxes,
Net value added 1.10 0.10
% of Value added
Operational cost
.15
(labour, &
transport,
electricity
costs)
0.20
(transport,
load
unload cost
& storage)
0.10
Storage
Total Cost 1.25 2.35 2.85
Operational Benefit 0.75 0.40 0.15
Operational Margin
Retailers Production Wholesaler Consumer
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The second value chain, vegetable production was also found to be interesting and
promising business.
Vegetable Market Channel of Debre Tabor
I. Producer – consumers ( 28%)
II. Producer – retailers – consumers ( 72%)
Vegetable Producers
Egg Retailer Hotels
Consumers
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Calculation of Value-Addition and Operational Margin:
Vegetable Production
Sales/liter 1800 2900
Input cost
250.00
Seedling
composite
Water
Medicine
Material cost
400
equipment
Net value added
% of Value added
Operational cost
200
(labour &
transport cost)
450
(storage,
transport,
load unload
cost)
Total Cost 850 2,250
Operational Benefit 950 650
Operational Margin
Production Retailer Consumer
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LABOUR MARKET ASSESSMENT
Surprisingly the major job opportunity in the town was found to be government office. Unlike
other woredas in the surrounding Debre Tabor town has little or no job opportunity in the private
investment rather the youth migrate to work in border areas.
The knowledge and skill gap of the youth to meet market demand
The major knowledge and skills gap found were:
1) Loose link among training stakeholders
There is relatively loose link between the TVET and external environment. The trainings
provided were based on institutional decision other than an assessment of need in the side of the
youth and the market. Moreover, the cooperation among major actors in the sector need to be
strengthened as culture of inviting trainers from agriculture office and connection with different
colleges and the university need serious attention.
2) Gap in entrepreneurial Knowledge, attitude and skills
The lack entrepreneurial motivation, lack of vision/innovation and inability to produce good
business plans or feasibility studies are all part of the problem youth are facing in starting their
own business.
3) Lack of demand based training
One of the greatest challenges we have come across during the study was that trainings provided
by the TVET was not based on market study result of any kind. Mismatch of education and
training skills with the requirements of the labour market is another important reason for the high
level of unemployment. Young people who have attained high school or higher educational
label is a mismatch between the type of education provided at skill training/school and the
requirements of the labour market.
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In collaboration with concerned stakeholders, the role of WCAT is to provide marketable skill
training including life skills on the identified value chain that can enable the youth to compete in
the labor market. In addition the organization in collaboration with the concerned government
bodies will facilitate the release of seed money and credit access and working place. Follow up
and continuous support will also be one of the salient responsibilities of WCAT so as to ensure
success of the program.
Consultation Workshop with Major Stakeholders
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Reference
1. ILO: Global unemployment trends 2014: Where is the unemployment rate the highest?
www.ilo.org
2. Modern Ghana: Unemployment in Africa: what policy makers should know,
www.modernghana.com
3. World Bank: unemployment total (% of total labor force), www.data.worldbank.org
4. World Socialist Web Site: Global unemployment rises above 200 million,
www.wsws.org
5. World Economic Forum: Youth Unemployment Visualization 2013, www.weforum.org