Sesame Business Network in North-West Ethiopia Metema Yohannes-Kokit action plan 2013-2015 Metema, Ethiopia 1
Information sheet SBC info Name SBC Metema Yohannes-Kokit Region Amhara Woreda Metema Date of action planning 12/06/ 2013 SBN coaches facilitating action planning Names SBN function Alemayehu Kassa SBC coaches coordinator, GARC Andualem Tadesse SBC coach, extension and communication, Metema Anteneh Mekuria SBN extension communication facilitator, Gonder Aregawi Gebreslasie SBC coach, extension communication, Humera Melsew Misiker SBC coach, agronomist, Metema SBC actors participating in action planning Name Organization / actor group Function Phone number Assefa Melkie Metema Yohannes Union Chairperson Bantalem Guadie Kokit cooperative Member Chalachew Asres Kokit cooperative Member Debas Melese Kokit cooperative Investor farmer Gashaw Tesfaw Kokit cooperative Member Getenet Belihun Woreda office of agriculture Expert 0918086919 Kiros Weldie Kokit cooperative Chairperson SBC actors participating in action planning Name Organization /actor group Function Phone number Assefa Melkie Metema Yohannes Union Chairperson Bantalem Guadie Kokit cooperative Member Chalachew Asres Kokit cooperative Member Debas Melese Kokit cooperative Investor farmer Gashaw Tesfaw Kokit cooperative Member Getenet Belihun Woreda office of agriculture Expert 0918086919 Kiros Weldie Kokit cooperative Chairperson Tekalign Yeblet Kikit cooperative Manager 0918737407 Terefe Nibret Woreda office of agriculture Expert 2
About action planning Action planning Through one day of participatory action planning in June 2013, SBC actors have formulated the economic objectives, strategies, action and activities for their SBC, covering the 2013 2015 project period. The action plan succeeds the SBC baselines of March/April 2013 in which the current situation of SBCs was assessed. The action plan will lead to the formulation of support activities by the Sesame Business Network support program for 2013 2015. This action planning report is structured as follows: 1. Formulation of economic objectives o Objectives and change (table 1.1) o Specific objectives of stakeholders (table 1.2) o Stakeholder relations (table 1.3) 2. Strategy and action (table 2.1) 3. Objectives o Improving sesame productivity (table 3.1) o Cost price reduction (table 3.2), o Interest rate reduction (table 3.3) o Post-harvest losses reduction (table 3.4) o Entering into higher value markets (table 3.5) Intrduction Metema woreda is one of the high potential areas of the country for sesame production. It is located in the North-West of Ethiopia, bordering the Sudan. Administratively it is located in North Gonder zone, Amhara region. Total area of the woreda is estimated to be 312,710 ha. According to the central statistics authority report of 1997, the population of Metema woreda is 101,452, out of which 53.6% is male and the remaining 46.4% female. The woreda is occupied by about six ethnic groups, Gumuz and Amhara being native. During the first formal settlement in 1985 people came from Wollo and Ogaden areas. Since then a series of settlement programs were promoted by the regional government, especially in the years 2003 to 2010. In this period, about 27,000 households drawn from different parts of the Amhara region were settled. Besides the formal settlements campaigned by the regional government, there are also significant number of informal settlers in the woreda. Land ownership is in the form of investment or for farming and land property registration and blocking is in progress. Cultivated land in the woreda is about 100,417 ha of this 54% allocated for sesame production. Sorghum, cotton, and teff are the major crops grown by farmers in rotation with sesame both for food and cash purposes and occupy about 46% of the total cultivated area. The woreda contribute significant amount of (113,447 quintals) sesame for export, which is grown by 26,076 households. Sesame yields range from 3 to 8 quintals depending on soil type, pest infestation level and weather conditions. Generally sesame yields show declining tendency as a result of degrading soil fertility and high or low rainfall. To address the identified challenges, improve production and productivity of sesame and enter into high value market action planning was conducted by the participation of producers, investor farmers, research and extension. Outcome of the action planning is presented in three sections below. 3
1. Economic objectives Double productivity of sesame (from 3 to 6 quintal/ha) at 2015 and improve quality of sesame to grade 1 (based on ECX grading). Table 1.1 Formulation of objectives and change Subjects Current situation (early 2013) Objectives (end 2015) % change Observations/remarks (reasons for change) Sesame acreage (ha) 5,559 6,948 25 Due to increasing sesame price and decreasing price of cotton Half from fallow & half from other crops Acreage other crops (ha) 6446 5641 12.5 Due to unattractive market Total acreage (ha) 30901 - - - Sesame productivity (quintals/ha) 2.5-3 6 100 Use of improved technology Sesame production (quintals) 15,580 41,688 167 Use of improved technology Cost price per hectare (ETB) 5404 > > Increasing labor & input cost Cost price per quintal (ETB) 1801 < < Due to productivity increase Production and productivity of most important other crop NA NA NA NA Interest rate MFI 18% 5% 72 Informal money lenders 60-350% 15% 99.96 Negotiation, improve credit availability & saving culture Post-harvest losses (% reduction) 15% 2% 87% Using wind break & chemical Kokit- 1 - - 10,000 qt capacity Storage facilities Metema Yohance 1 Needs maintenance 100% Planned to build new store Storage practices 90% 100% 10% By not using chemical in stores By storing sesame separately Grading 1 grading machine - - Use it during selling sesame Grade 2 Grade 1 100% Producing quality sesame 4
Price Grade 1 Grade 2-3400 4500-100 - Currently trade grade 2 Decided to produce grade 1 Market channels (with percentages marketed through different channels) 100% through ECX ECX 0% 100 Direct export via union Cleaning Grade 2, 99.9 100% 0.01% Improve cleaning efficiency Processing NA NA NA - End market (international buyer) 0 50% 50% Via union export half of the produce to high value market Table 1.2 Specific objectives of stakeholders Actors / stakeholders in SBC Present in action planning (yes/no) Motivation of this actor for participation in SBC Specific objectives of this actor for end 2015 Observations/ remarks Producers / cooperatives Yes Enhancing profit Buy 10,000 qt sesame If credit is obtained Union Yes Enhancing profit Export sesame directly to premium markets Linking to new markets Research Yes Increase productivity Release three varieties Multiplication tests NVRC evaluation Extension Yes Improve productivity from 4.5 to 8-12 q/ha Technically support Investor farmers Yes Increase production & productivity Increase income three fold Use of improved technology & tech support 5
Table 1.3 Stakeholder relations Stakeholder relations Current score (Scores 0-3) Desired score (end 2015) Farmers with traders 3 3 Transparency Observations: (i) Why is it important? (ii) How to improve relations? (iii) On what to improve collaboration? Farmers with extension staff 3 3 Get support (training on agricultural practices) Farmers with input suppliers 2 3 Improve pesticides and other inputs supply Farmers with banks 0 3 Save money Farmers with (MFIs) 3 3 Get credit, needs to improve loan amount Farmers with informal money lenders 3 1 High interest rate, Use formal lending institutions (banks, MFI) Cooperative(s) with the union 3 3 Sell sesame and get dividends Cooperative(s) with bank(s) 3 3 Save money and get loan in the future Cooperative(s) with MFIs 1 3 To get enough amount of credit Cooperative(s) with processors - 3 Use the resource and add value Cooperative(s) with service providers Transport 3 3 Maintain the good relationship Laborers 1 3 Create smooth relationship by providing (health service, shelter, food) 6
2. Strategy and actions Table 2.1. Strategy and actions Objective Challenges to address Actions to undertake Sesame productivity improvement From 3 quintals/ha to 6 quintals/ha by December 2015 Cost price reduction To reduce cost of production by 20% Interest rate reduction Reduce interest rate of MFIs from 18% to 5%, & private lenders from 60% to 15% improved variety seed High cost of agricultural implements Disease and pesticide Water logging High labor cost Weeding intensification Shattering problem Farm machinery/ tractors Credit availability/finance limitation Increase availability of seed Introducing cheap & efficient machines Improving disease and pest Improve drainage system Reducing labor cost Improving weed Availing non-shattering varieties Using improved farm machineries Facilitating loan service from MFI s & Bank, Increase saving Post-harvest loss reduction Reduce from 15% to 2% by Dec., 2013 Value addition To clean up to 99.9% to meet international market needs Higher-value markets Export 50% of the produce to high value markets Storage facilities Pest infestation in stores Non-hazardous insecticides Shattering during cutting & drying Poor winnowing Loss during loading and unloading Unavailability of cleaning machine Mixed sesame seed varieties Lack of knowledge & information Lack of awareness Weak market linkage Improving storage facilities Managing storage pests Testing safe insecticides Reducing loss due to shattering Improving winnowing Improving loading practices Improving access to cleaning machine Enhancing availability of improved single variety clean seed Creating awareness Creating awareness and training Strengthening the market linkage 7
3. Operational activity plan Table 3.1. Objective: Sesame productivity improvement WHAT ACTVITIES? (cash/kind) Participatory sesame variety selection GARC/farmers June- October Metema - - Increasing availability of improved variety seed Demonstration Research, BoA & farmers July-August Woreda FTCs - - Training GARC, OA, July-August Woreda FTCs - 50,000 Introducing improved implements & machineries Organizing fair or exhibition Demonstrating on use of farm machineries Cooperative, CPO, Private suppliers, SBN- SP, farmers Cooperative, OA, GARC, 2013-2015 Metema - 100,000 June- Gondar - 80,000 Experience sharing visit Cooperative, WoA, GARC, June- Humera - 52,000 Training on integrated pest GARC, WoA, July to Metema Gondar 20,000 Improving pest practices and drainage Demonstration of improved disease and pest Chemical provision Research, BoA, and cooperative Private input suppliers July to July to Metema Gondar Metema Own capital - own Training on use of BBM Farmers, BoA and SBN July to FTCs - 20,000 Demonstration GARC, WoA June-July Metema - 20,000 8
Table 3.2. Objective: Cost-price reduction Reducing labor cost Improving weed WHAT ACTVITIES? Using family labor intensively 2-3 times plowing to reduce weed infestation 2-3 times plowing to reduce weed infestation (cash/kind) Farmers May-October On their farm Own capital - Farmers June-July Metema Own capital - Farmers June-July Metema Own capital - Row planting Farmers, WoA June-July Metema - - Looking for nonshattering varieties Linking with companies own non-shattering variety/ies GARC, SBN August- Gonder - 20,000 Table 3.3. Objective: Interest rate reduction Facilitating loan service from MFI s and Bank WHAT ACTVITIES? Awareness creation workshop Cooperative, BoA, ACSI and SBN (cash/kind) 2013-2015 Metema - 30,000 Awareness creation Bank/MFI 2013-2015 Metema - - 9
Table 3.4. Objective: Post-harvest losses reduction WHAT ACTVITIES? (cash/kind Store maintenance Cooperative and SBN Metema Own capital - Improving storage facility & storing tech. Training on store Experience sharing visit WoA, GARC,, Cooperative Gondar - 32,591.5 Humera - 26,500 Using quality sacks Farmers, Hitech, input suppliers October Metema Own capital 5,000 Reducing loss due to shattering Training on harvesting BoA, GARC, August- Metema - 25,000 Upgrading loading and unloading technique Create smooth relation between farmers & labors Administratio n and SBN Metema - 12,000 Improving winnowing technique Using canvas or polyethylene sheet for winnowing Farmers, Hi- Tech, private suppliers October Metema Own capital 50,000 Table 3.5. Objective: value-addition WHAT ACTVITIES? (cash/kind) Improving access to processing machine Purchasing new machine Union, C4C 2014-2015 Metema Own capital - Increasing availability of improved and clean seed Multiplication of uniform, clean and quality seed GARC, ISSD, WoA 2013-2015 Metema Own capital - creating awareness Training on quality standards GARC and SBN Metema - 25,000 10
Table 3.6. Objective: Higher-value markets WHAT ACTVITIES? (cash/kind) Creating awareness Training on sesame value chain Cooperatives,, C4C, CPO 2013-2015 Metema - 50,000 Creating new market linkage Information brokering C4C, CPO, 2013-2015 Metema - - 11