Federal Democratic Republic of Ethiopia ETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
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Federal DemocraticRepublic of Ethiopia
ETHIOPIA
NATIONAL PULSES STRATEGY2019-2024
This National Pulses Strategy was facilitated by Supporting Indian Trade and Investment for Africa, a South–South trade and investment initiative that aims to improve the com-petitiveness of select value chains through providing partnerships from institutions and businesses from India. Supporting Indian Trade and Investment for Africa is funded by the United Kingdom of Great Britain and Northern Ireland Department for International Development and implemented by the International Trade Centre (ITC). ITC is the joint agency of the World Trade Organization and the United Nations.
The Strategy was designed based on the process, methodology and technical as-sistance of ITC within the framework of its Trade Development Strategy programme. ITC-facilitated trade development strategies and roadmaps are oriented to the trade objectives of a country or region and can be tailored to high-level economic goals, specific development targets or particular sectors, allowing policymakers to choose their preferred level of engagement.
Technical support was provided by Charles Roberge and Abhilash Puljal. Genzeb Akele Zewdie managed the design process at the country level, under the overall project man-agement of Carolin Averbeck and general supervision of Govind Venuprasad.
In-country guidance and coordination of the Strategy design process was led by Assefa Yohannes, Manager, EPOSEPEA; Abdulsemed Abdo, Crop Development Director, MoANR; ZegeyeTekilu, Manager Agribusiness, ATA; Mulugeta Mohammed, Crop Marketing Director, MoT. The views expressed herein do not reflect the official opinion of ITC. Mention of firms, products and product brands does not imply the endorsement of ITC. This document has not been formally edited by ITC.
The International Trade Centre ( ITC )
Street address : ITC, 54-56, rue de Montbrillant, 1202 Geneva, SwitzerlandPostal address : ITC Palais des Nations 1211 Geneva, SwitzerlandTelephone : + 41- 22 730 0111Postal address : ITC, Palais des Nations, 1211 Geneva, SwitzerlandEmail : [email protected] : http :// www.intracen.org
Layout: Jesús Alés – www.sputnix.es
Federal DemocraticRepublic of Ethiopia
ETHIOPIA
NATIONAL PULSES STRATEGYVALUE CHAIN ROADMAP FOR PRODUCTION
AND TRADE OF PULSES FROM ETHIOPIA
2019-2024
Photo: (CC BY-SA 2.0) pixabay, by Natalie Gi from Pixabay.
II ETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
IIIETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
MESSAGE FROM MR. SANI REDI, MINISTER OF STATE FOR AGRICULTURE
Pulses are strategically important to Ethiopia as they are the second most important group of crops, after cere-als, and together they provide food and income to more than 10 million households. The overall acreage of pro-duction is over 1.5 million hectares and overall output is almost 3 million tons. Pulses are the third most important group of commodities export, after coffee and sesame, thereby contributing significantly to the country’s foreign currency requirements. Ethiopia ranks among the top ten countries in the world for pulses exports with an estimat-ed value of USD 248 million and volume of 338,974 tons in 2016. Ethiopia’s export trend in pulses has reached an average annual growth rate ( CAGR ) of 16% between 2011 and 2015. The Indian market is a major destina-tion of Ethiopian pulses which accounts for a total of about USD 35 million in exports ( Ministry of Trade Annual Report, 2016 ).
Despite Ethiopia’s growing exports of pulses in recent years, the country still remains a small player in the global market representing only 3% of world pulses exports in 2016. The potential of the sector is yet to be fully utilized as a result of various challenges along the entire value chain.
The National Pulses Sector Strategy responds to these constraints by providing Ethiopia with a detailed Plan of Action ( PoA ) that will facilitate growth in the sector within the next 5-year period. Through the steps outlined in the PoA, pulses stakeholders in Ethiopia will improve their ca-pability to offer competitive products. The Strategy also supports the implementation of Ethiopia’sGrowth and TransformationPlan II ( GTP II ) that has identified Agro-processing and respective value chains as priority sectors for further development given the country’s comparative advantage.
The Ministry of Agriculture ( MoA ) takes particular pleasure in welcoming the SITA Pulses Sector Strategy Roadmap and its detailed Plan of Action with the aim of boosting Ethiopian Pulse export to the regional and international market.
The National Pulses Strategy has exceeded our expecta-tions, not only in the successful mobilization of all sector stakeholders, but also in facilitating extensive and fruitful discussions between public and private sector stakehold-ers. Representatives from public and private sector as well as research institutions attended three successive consul-tations, allowing for a realistic evaluation of the challenges and opportunities of the sector and extensive debates to define the best way forward. This inclusive approach en-sured that all stakeholders were committed to the process and left with a clear understanding of each actor’s role.
A market led strategic orientation, prioritized by the pulses sector stakeholders and embedded into a detailed imple-mentation plan, provides a clear road map that can be leveraged to address constraints to trade, maximize value addition and support regional integration. This strategy is articulated around three strategic objectives:
1. Improve sector productivity and quality through en-hanced public and private support in research, input distribution, production, processing and export
2. Improve export competitiveness by strengthening backward production and planning by responding to market opportunities.
3. Strengthen the capacity of sector stakeholders to im-prove value addition.
In order to maintain the momentum sparked by the con-sultations, the Ministry is in the process of establishing a national pulse sector public-private partnership platform, which will support the implementation of the operational objectives defined in this Plan of Action.
We acknowledge the support of the International Trade Centre ( ITC ), Supporting Indian Trade and Investment for Africa ( SITA ) project and the Government of the United Kingdom through DFID for their support in developing this National Pulse Strategy; their initiative will benefit the Ministry as well as actors along the entire value chain in the successful promotion of the sector.
IV ETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
MESSAGE FROM MR. HAILE BERHE, PRESIDENT OF THE ETHIOPIAN PULSES, OILSEEDS AND SPICES PROCESSORS-EXPORTERS ASSOCIATION (EPOSPEA)
The Ethiopian Pulses, Oilseeds and Spices Processors-Exporters Association ( EPOSPEA ) was established with the objective of building the capacity of its members to make them competitive in the global market. In this context, EPOSPEA is pleased to have partnered with International Trade Centre ( ITC ), Supporting Indian Trade and Investment for Africa ( SITA ) project, since its im-plementation in 2015, towards achievement of this objective.
This Value Chain Roadmap, aimed at strengthening the Ethiopian Pulses Sector, is prepared after extensive consultations – on the opportunities and constraints in relation to production, productivity, quality control, processing, packing, marketing and market access – with members of EPOSPEA and other stakeholders at the national level.
I wish to thank ITC, SITA and the Government of the United Kingdom through DFID, as well as all other stakeholders involved in the formulation of this stra-tegic document. As we embark on the implementation of the Value Chain Roadmap, EPOSPEA will endeavor to work closely with all relevant stake-holders not only for the benefit of its members, but also for the overall Pulses Sector.
VETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
ACKNOWLEDGEMENTS
The National Pulses Strategy (the Strategy) was developed under the aegis of the Ministry of Agriculture and Natural Resources and the Ministry of Trade, Government of Ethiopia.The document benefited particularly from inputs and guidance provided by the members of this sector that steered the formulation of the Strategy, namely:
Name Organization Position
Dagmawi Engida Senior Expert MOA
Kassahun Bekele General Manager ACOS Ethiopia
Tsegaye Abebe Supervisor Amal Trading PLC
Dr Berhanu Amsalu Pulse Research Coordinator EIAR
Zegeye Tekilu Manager, Agriculture Commercialization Cluster
ATA
Sibhat Temesgen Pulse Team leader MOA
Engidu Legesse General Manager GUTS Agro Processing
Bezu Yicheneku Senior Pulse Expert MOA
Endalkachew Abie General Manager Tsehay Farmers’ Cooperative Union
The full list of public and private stakeholders who contributed their precious time to the design of this Strategy are detailed in appendix 1.
VI ETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
EXECUTIVE SUMMARY 1
THE IMPORTANCE OF PULSES 5
GLOBAL TRENDS IN PULSES 8
PRODUCTION TRENDS OF PULSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
TRADE TRENDS OF PULSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
MAJOR IMPORTERS OF PULSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
MAJOR EXPORTERS OF PULSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
ETHIOPIA’S PULSES SECTOR 14
PRIORITY PULSES IN ETHIOPIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
PULSE PRODUCTION IN ETHIOPIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
PULSE TRADE IN ETHIOPIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
VALUE CHAIN OF THE PULSES SECTOR IN ETHIOPIA . . . . . . . . . . . . . . . . . . . . . . . . . 22
VALUE CHAIN DIAGNOSTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
FOCUSING ON THE MOST PRESSING ISSUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
ON THE PATH TO SUCCESS 31
THE VISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
THE STRATEGIC OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
THE FUTURE VALUE CHAIN OF THE SECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
THE FUTURE VALUE CHAIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
THE FUTURE VALUE CHAIN ROADMAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
OPPORTUNITIES FOR THE ETHIOPIAN PULSES INDUSTRY 35
MARKET PERSPECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
VALUE OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
INSTITUTIONAL ADJUSTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
REGULATORY AMENDMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
CONTENTS
VIIETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
INVESTMENT REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
MOVING TO ACTION – IMPLEMENTATION FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . 42
MANAGING STRATEGY IMPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
PLAN OF ACTION FOR 2019-2023 45
APPENDICES 53
APPENDIX 1 : COMPLETE LIST OF PRIVATE AND PUBLIC STAKEHOLDERS . . . . . . 53
APPENDIX 2 : ETHIOPIA’S PRODUCTION OF PULSES, 2011–2016 . . . . . . . . . . . . . . . 54
APPENDIX 3 : TOTAL AREA AND PRODUCTION OF DIFFERENT GROUPS OF CROPS IN ETHIOPIA IN 2016/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
APPENDIX 4 : ETHIOPIA’S TOTAL PULSE EXPORTS, 2011–2016 . . . . . . . . . . . . . . . . . 55
APPENDIX 5 : ETHIOPIA’S MOST IMPORTANT EXPORT DESTINATIONS FOR PULSES, 2016 ( US $ MILLIONS ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
APPENDIX 6 : ETHIOPIA’S TOTAL EXPORTS OF PULSES IN COMMODITIES, 2011–2016 ( US $ THOUSANDS ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
APPENDIX 7 : ETHIOPIA’S EXPORTED GOODS, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
APPENDIX 8 : SHARE OF PULSE CROPS IN GLOBAL EXPORTS IN 2016 . . . . . . . . . 57
APPENDIX 9 : EXPORTS OF PULSES BY REGION OR REGIONAL GROUP, 2007–2016 ( US $ THOUSANDS ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
APPENDIX 10 : GLOBAL PULSE PRODUCTION BY VARIETY, 2016 . . . . . . . . . . . . . . . . 58
APPENDIX 11 : MAJOR PULSE PRODUCERS GLOBALLY, 2016 . . . . . . . . . . . . . . . . . . . 58
APPENDIX 12 : GLOBAL PULSE PRODUCTION AND YIELD, 1991–2016 ( IN MILLIONS ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
REFERENCES 60
VIII ETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
LIST OF FIGURES
Figure 1 : Profitability of growing cereals and pulses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Figure 2 : Average nitrogen fixation capacity of pulse species . . . . . . . . . . . . . . . . . . . . . 7
Figure 3 : Global pulses production and yield 1991–2016 ( millions of tons ) . . . . . . . . . 8
Figure 4 : Major global pulse producers, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figure 5 : Global pulse production by variety, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figure 6 : Share of pulse crops in global export in 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Figure 7 : Exports of pulses by region or regional group, 2007–2016 ( US $ thousands ) . 12
Figure 8 : Prioritized pulses and the criteria used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 9 : Production of pulses ( tons ) and relative share of specific crops in Ethiopia, 2011–2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 10 : Distribution of pulse-growing areas in Ethiopia. . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 11 : Total area and production of different groups of crops in Ethiopia in 2016/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure 12 : Coverage of extension service and input use in pulses production, as compared with cereals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Figure 13 : Ethiopian exported goods in 2016 ( US $ millions ) . . . . . . . . . . . . . . . . . . . . . . . 19
Figure 14 : Ethiopia’s total pulses export in US $ million and tons, 2011–2016 . . . . . . . 19
Figure 15 : Proportion of pulses exported from Ethiopia, 2016 . . . . . . . . . . . . . . . . . . . . . . 20
Figure 16 : Largest destinations for Ethiopia’s pulse exports, 2016 ( US $ ) . . . . . . . . . . . 20
Figure 17 : Ethiopia’s most important export destinations in US $ million for pulses, 2016 21
Figure 18 : Ethiopia’s total exports of pulses in commodities, 2011–2016 ( US $ thousands ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Figure 19 : Existing pulses value chain in Ethiopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Figure 20 : Strategic objectives for the Ethiopian pulses sector . . . . . . . . . . . . . . . . . . . . 32
Figure 21 : The future value chain of the pulses sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Figure 22 : Strategic objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Figure 23 : Institutional framework for Ethiopian pulses sector development . . . . . . . . 43
IXETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
TABLES
Table 1 : Major global importers of pulses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Table 2 : Major global exporters of pulses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Table 3 : Pulse production in Ethiopia by region, 2016 ( tons ) . . . . . . . . . . . . . . . . . . . . . . . 15
Table 4 : Ethiopian export earnings from pulses, 2012–2016 ( US $ thousands ) . . . . . . 22
Table 5 : Value chain segments needing FDI and likely sources . . . . . . . . . . . . . . . . . . . 41
BOXES
Box 1 : Overview of pulses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Box 2 : Import quotas on pulses in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Box 3 : Ethiopia’s product and market opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Box 4 : Support institutions in Ethiopia for the pulses sector . . . . . . . . . . . . . . . . . . . . . . . 38
Photo: (CC BY-SA 2.0)
XIETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
ACRONYMS
ATA Ethiopian Agricultural Transformation Agency
BoA Bureau of Agriculture
CIS Commonwealth of Independent States
CSA Central Statistical Agency of Ethiopia
ECCSA Ethiopian Chamber of Commerce and Sectoral Associations
ECX Ethiopian Commodity Exchange
EIAR Ethiopian Institute of Agricultural Research
EIC Ethiopian Investment Commission
ENAO Ethiopian National Accreditation Office
EPOSPEA Ethiopian Pulses, Oilseeds and Spices Processors and Exporters’ Association
FAO Food and Agriculture Organization of the United Nations
FCA Federal Cooperative Agency
FDI Foreign direct investment
GAP Good Agricultural Practices
GCC Gulf Cooperation Council
GMP Good Management Practices
HS Harmonized System
ICT Information and communications technology
ITC International Trade Centre
MoANR Ministry of Agriculture and Natural Resources
MoFA Ministry of Foreign Affairs
MoFEC Ministry of Finance and Economic Cooperation
MoT Ministry of Trade
PoA Plan of Action
RARI Regional Agricultural Research Institute
SMEs Small and medium-sized enterprises
TVET Technical and vocational education and training
Photo: (CC BY-SA 2.0) Links, Green Lentils.
1EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
The pulses sector in Ethiopia has the potential to be a key accelerator of agricultural development and growth. It plays a valuable role not only in boosting export earn-ings but also in enhancing the rural economy and social development. Pulses are pro-poor crops with a unique combination of benefits including rich nutritional value, high income-generation potential and the ability to con-vert atmospheric nitrogen into a usable form to improve soil fertility.
Pulses are strategically important to Ethiopia, as they are the third agricultural export commodity after coffee and oilseeds, and play a vital role in the country’s economy. In this Strategy, the following pulses are focused upon, listed under their appropriate Harmonized System ( HS ) codes from the World Customs Organization.
HS chapter HS 6-digit product code
HS 0713 : Dried leguminous vegetables, shelled, whether or not skinned or split
HS 071320 : Chickpeas ( garbanzos ), dried shelled, including seed
HS 071331 : Beans ( Vigna Mungo ( L. ), Hepper etc. ), dried shelled
HS 071310 : Peas, dried shelled, including seed
HS 071332 : Beans, small red ( adzuki ), dried shelled, including seed
HS 071333 : Kidney beans & white pea beans, dried shelled, including seed
HS 071334 : Bambara beans, dried, shelled
HS 071335 : Cowpeas, dried, shelled
HS 071339 : Beans Nesoi, dried shelled, including seed
HS 071340 : Lentils, dried shelled, including seed
HS 071350 : Broad beans & horse beans, dried shelled, including seed
HS 071360 : Pigeon peas, dried, shelled
HS 071390 : Leguminous vegetables, dried shelled, including seed
Photo: (CC BY-SA 2.0) DFID - UK Department for International Development
2 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
Globally, the volume of pulse production has increased gradually over the last 25 years, from 56.48 million tons in 1991 to 81.80 million tons in 2016. The largest markets for food pulses are in India, Bangladesh, Pakistan and Sri Lanka, while the largest market for animal feed pulses is the European Union. Five subsectors of pulses ( peas, kidney beans, chickpeas, lentils and gram beans ) ac-count for four-fifths of the market share of all traded pulses.
In Ethiopia, broad beans account for the greatest portion of production ( 32.12 % ), followed by dry beans ( 17.7 % ), chickpeas ( 16.25 % ), dry peas/field peas ( 12.74 % ), vetch-es/grass peas ( 10.87 % ) and lentils ( 6.8 % ). Most pulse production is concentrated in Amhara and Oromia re-gions, which together account for 87 % of the produc-tion of broad beans, 95 % of chickpeas, 77 % of common beans, 78 % of field peas and 93 % of lentils.
Despite being Ethiopia’s third commodity export, there has been low investment in pulse research compared with that for cereals, both by the Government and donors. Similarly, pulse initiatives have been given less priority. From a world market point of view, Ethiopia’s pulse ex-ports represent 3 % of world pulse exports.
According to 2016 data ( the most recent available ), the most important export destinations for pulses are Pakistan, India, Indonesia and Viet Nam. Pulses ac-counted for 6.93 % of export earnings in Ethiopia, and contributed more than US $ 248 million to the country’s hard currency reserves in 2016. In the last five years, the growth in exports in value has been 16 % annually, with broad beans representing the bulk of this growth. At present, pulses account for 13 % of the cropped land in Ethiopia. In terms of area, pulses are second in area cov-erage and production in Ethiopia after cereals, with over 1.5 million hectares and 2.67 million tons of production.
For the pulses sector to continue to add value and inten-sify market development, public and private industry rep-resentatives identified the following as the most pressing issues that should be addressed rapidly :
• Limited use of quality inputs ;• Extension services are not effective ;• Low farm productivity ;• Limited knowledge of value addition practices ;• Technology for mechanization for value addition is either
out of date or unknown ;• Poor sourcing practices ;• Postharvest losses and quality degradation during
storage and processing ;• Promotion to attract foreign direct investment ( FDI ) to the
sector is limited ;• Implementation of standards and codes of conduct at
production and processing levels ;• Limited links between the public and private sectors ;
• Poor dissemination of trade information, and limited promotion and inadequate brand promotion of pulses in destination markets ;
• Limited use of contract farming methods between producers, processors and exporters ;
• Limited postharvest storage infrastructure, leading to high postharvest losses ;
• Low technology and mechanization adoption ;• Limited branding and trade promotion capacities ;• Infrastructure for quality management is insufficient ;• Expensive and unreliable transportation network.
MARKET ORIENTATION
Based on global trends in the growing pulses sector, Ethiopia should set the following priorities, with short-, medium- and long-term goals. Short-term is defined as immediately to one year, medium-term as one to three years, and long-term is beyond three years.
Short-term goals :
� Continue concentrating on South Asia for trade and investments.
� Promote cooperation with overseas pulse organiza-tions to learn best practices and develop partnerships.
� Introduce a ‘national business code of conduct’ for pulse exporters.
Medium-term goals :
� Move towards value added products. � Incentivize investments.
Long-term goals :
� Establish a traceability and certification system for pulse products. This will enable organic farming.
THE WAY FORWARD
The pulses sector has significant potential to make so-cioeconomic contributions to Ethiopia through export-led growth. To realize this potential, competitive constraints and structural deficiencies must be addressed, and iden-tified opportunities should be leveraged. The following is a delineation of the proposed vision and strategic approach in this direction.
All stakeholders of the pulses sector value chain in Ethiopia agreed on the following vision statement.
3EXECUTIVE SUMMARY
‘Be a globally competitive exporter of high-quality pulses
through adoption of innovative technologies that support Ethiopian development and increase smallholders’ income.
’Strategic objectives
The Plan of Action ( PoA ) will respond to this vision by addressing the sector’s constraints and leveraging op-portunities in a comprehensive manner. To this end, spe-cific efforts will be made to meet the following strategic objectives.
Coordinating activities, monitoring progress, increasing institutional capacities and mobilizing resources for im-plementation will be critical to successful achievement
of these targets. Industry representatives recommended that a ‘national pulses network’ be rapidly established, operationalized and empowered. This advisory commit-tee is to be responsible for overall coordination, provision of policy guidance and monitoring industry development against the strategic objectives. An effectively organized and supported committee can plan industry development strategically. High-level support from the Government, in collaboration with strong championship by the private sector, will be the real drivers to transform Ethiopia into a global pulses destination.
• Increase in quantity and improvement in quality of pulses produced in Ethiopia.
• Successfully implement Good Agricultural Practices (GAP) and Good Management Practices (GMP).
Strategic objective 1: Improve sector productivity and quality through enhanced public and private support in research, input distribution, production, processing and export.
• Strengthen capacities to improve competitiveness, leading to improved exports.
• Make quality information freely accessible along the value chain.
Strategic objective 2: Improve export competitiveness by strengthening backward production and planning by responding to market opportunities.
• Ensure stakeholders are strengthened in order to improve value addition.
• Facilitate access to finance.
Strategic objective 3: Strengthen the capacity of sector stakeholders to improve value addition.
Photo: (CC BY-SA 2.0) Swathi Sridharan, Market in Addis Ababa.
5THE IMPORTANCE OF PULSES
THE IMPORTANCE OF PULSES
The Ministry of Agriculture and Natural Resources ( MoANR ) has mandated the Ethiopian Agricultural Transformation Agency ( ATA ) to develop a harmonized “National Pulses Strategy.” To achieve this task, national public and private stakeholders collaborated to identify systemic bottlenecks along the pulses value chain and propose long-term strategic interventions to strengthen
the sector. These interventions are intended to guide the trade development of the pulses sector in a coordinated way, with the objective of bringing about holistic transfor-mation across the value chain. This Strategy will be im-plemented under a 5-year time frame, from 2019 to 2024, and will be updated and refined by national stakeholders as sector development evolves.
Box 1 : Overview of pulses
The Food and Agriculture Organization of the United Nations ( FAO ) has identified pulses as a subgroup of legumes, crop plant members of the Leguminosae family that produce edible dry mature seeds which are used for human and animal consumption. Only legumes harvested for dry grain are classified as pulses. For example, grain legumes used mainly for oil production, such as soybean and peanuts, are not considered pulses. Likewise, legumes used for sowing purposes ( such as clovers and alfalfa ) or as vegetables ( like green beans and green peas ) are not considered pulses. Pulses include dry beans, dry peas, dry broad beans, chickpeas, lentils, cow peas, pigeon peas, lupins and vetches.
From an agricultural point of view, multiple cropping systems that include pulses enhance soil fertility, improve yields and contribute to a more sustainable food system. Importantly, pulses have a very low water footprint compared with other protein sources and can be grown in very poor soils where other crops cannot be cultivated. Crop residues of pulses, and legumes in general, can also be used as animal fodder, thus increasing the quality of the animal diet.
From a health perspective, pulses are very high in protein and fibre, are low in fat and are a vital source of proteins and amino acids for humans. They also contain significant amounts of other essential nutrients like calcium, iron and lysine. Pulses can help lower blood cholesterol and attenuate blood glucose, which is a key factor in fighting diabetes and cardiovascular disease. In a study published by the International Journal of Multidisciplinary in 2016, doctors found that a dietary pulse intake significantly reduces low-density lipoprotein cholesterol levels, another study conducted in 2015 demonstrated that increased consumption of pulses decreases the risk of colorectal cancer.1 In fact, pulses are a large part of many countries’ traditional diets and are the main protein source for lower-income people worldwide. Pulses are a key ingredient in the average Ethiopian diet and an important source of protein.
Pulses can play an important role in climate change adaptation, since they have a broad genetic diversity from which climate-resilient varieties can be selected and/or bred. They play a diverse role in the farming systems of many developing countries, including as a food crop ( consumed as grain, green pods and leaves ) ; a cash crop ( which would be a higher source of income ) ; a fodder crop ( contributing to the productivity of the livestock system ) ; importantly, as a rotation crop, intercropped with cereals and roots/tubers ( reduces soil pathogens and provides nitrogen ) ; and finally they can grow in harsh environments such as in drought-prone areas where there are few options ( food security ).
6 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
In Ethiopia, pulses have the potential to increase incomes for smallholders. Pulses are generally more profitable than cereals, giving smallholders an economic incentive to in-crease pulse production ( see figure 1 ). Broad bean gives up to 77 % higher profit than wheat and up to six times more profit than barley. Similarly, chickpea gives up to 20 % higher profit compared with teff, four times higher compared with barley, and comparable returns to wheat.1 There is also significant untapped potential for pulses in domestic and international markets. Demand for most pulse imports is expected to increase in many destina-tion markets, particularly in Asia, where domestic pro-duction is expected to fall short of demand. Ethiopia has the potential to capitalize on the competitive advantage of geographic proximity to major export markets relative to other pulses exporters, and move towards supplying premium-quality grains and processed products to high-value markets.
1. Government of Ethiopia ( 2015 ). National Pulses Value Chain Development Strategy of Ethiopia ( Working Document 2016-2020 ). Addis Ababa. Available from https ://www.agriknowledge.org/downloads/nc580m674.
Pulses improve soil fertility and enhance ecosystem re-silience : When associated with the right strain of rhizo-bium bacteria ( biofertilizer ), pulses can fix up to 200kg of atmospheric nitrogen per hectare, equivalent to 0.4 tons of urea fertilizer. Further, the root system of pulses can go as deep as 2 metres and break the different layers of the soil, thus improving the structure of the soil and water infiltration, and nutrient recycling. Growing pulses and cereals alternately on the same land reduces the spread of diseases, insect pests and weeds.
Pulses are a source of high-quality animal feed : Globally, up to 25 % of pulses are used as feedstuff, particularly for pigs and poultry. Three main areas of current use globally are pet food, aquaculture, and traditional livestock diets, including for poultry, swine and cattle. In Ethiopia, pulse residues play an important role in the nutrition of livestock, supplying up to 12 tons/ha of residues with crude protein content of 8–14 %.2
2. Keftasa, Daniel ( 1988 ). Role of Crop Residues as Livestock Feed in Ethiopian Highlands. In African Forage Plant Genetic Resources, Evaluation of Forage Germplasm and Extensive Livestock Production Systems : Proceedings of the Third Workshop held at the International Conference Center Arusha, Tanzania, 27–30 April, 1987, B.H. Dwozela, ed. Addis Ababa : Pasture Network for Eastern and Southern Africa.
Figure 1 : Profitability of growing cereals and pulses
Source : FAO ( 2014 ).
7THE IMPORTANCE OF PULSES
Figure 2 : Average nitrogen fixation capacity of pulse species
Source : Zapata, F. and others ( 1987 ).
The importance of pulses, as outlined above, makes them ideal crops for simultaneously achieving three de-velopmental goals – reducing poverty, improving human health and nutrition, and enhancing ecosystem resil-ience. Because of their versatility and nutritional value, the global market for pulses is large and rapidly increas-ing. Indeed, the FAO and its Member States declared 2016 the ‘International Year of Pulses.’
With over 2 million hectares under cultivation and 3.2 mil-lion tons in annual production, and cultivated by over 9 million rural households ( Central Statistical Agency of Ethiopia ( CSA ), 2016 ), pulses are pro-poor crops that have high potential for improving the livelihoods of the rural poor in Ethiopia. To lead the transformation of the agricultural sector, pulses have been selected as one of the priority value chains in Ethiopia’s second five-year Growth and Transformation Plan target ( to double the 2014 yield by 2020 ).
Photo: pixabay, Image by Vijaya narasimha from Pixabay. Photo: pixabay, Image by alexdante from Pixabay.
8 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
GLOBAL TRENDS IN PULSES
Pulses represent a global industry worth over US $ 100 billion at the retail level, underpinned by 81 million tons of production which is exported to over 55 countries.
Rising income levels, along with population growth and an increase in middle-income classes in developing coun-tries, have increased demand for foodstuffs, including pulses. Some econometric studies estimate the range of demand elasticities for pulses to be between 1.5 and 2.3 This indicates that an annual increase in per capita in-come of around 6 % would lead to an increased demand of more than 10 % for pulses.4 The growth of middle-in-come classes in non-traditional markets such as those in Africa and Asia, and the rise of a supermarket culture in developing countries have led to increased demand for processed foods, which also drives increased demand for pulses, especially pigeon peas, chickpeas and dry peas.
3. Knight, R., ed. ( 2000 ). Linking Research and Market Opportunities for Pulses in the 21st Century : Proceedings of the Third International Food Legumes Research Conference. Springer Publishing.4. Alagh, Y.K. ( 2011 ). Future of Indian Agriculture. Indian Economic Journal, vol. 59, No. 1, April–June, pp. 40–55.
Change in dietary patterns is another key driver of in-creased demand for pulses. With greater awareness of coeliac disease and gluten sensitivity, demand is rising for pulses such as yellow peas, lentils and chickpeas, which are some of the best available gluten-free options. Pulses have now gained acceptance as the ‘new and improved’ centre of healthy eating.
PRODUCTION TRENDS OF PULSESThe global volume of pulses production has increased gradually in the last 25 years, from 56.48 million tons in 1991 to 81.80 million tons in 2016. The world produc-tion of pulses is dominated by a few countries which in-clude India ( 21.47 % ), Canada ( 10.03 % ), China ( 5.19 % ), Myanmar ( 8.03 % ) and Nigeria ( 3.78 % ), which together account for more than half of the world’s output. African-origin pulses have gained significant importance in re-cent years.
Figure 3 : Global pulses production and yield 1991–2016 ( millions of tons )
56,48 54,57 56,2362,4
69,8
81,8
0
10
20
30
40
50
60
70
80
90
1991 1996 2001 2006 2011 2016
Production (tons) Area (ha)
Source : FAOSTAT.
9GLOBAL TRENDS IN PULSES
Figure 4 : Major global pulse producers, 2016
Australia; 3,09%Brazil; 3,21%
Canada, 10,03% China; 5,19%
Egypt ; 0,31%
Ethiopia; 3,34%
India, 21,47%
Mexico; 1,68%Myanmar; 8,03%Nigeria; 3,78%
Russian Federation; 3,60%
Turkey; 1,32%
United Republic of Tanzania; 2,45%
United States of America; 2,98%
Others, 29,54%
Source : FAOSTAT.
Figure 5 shows the share of pulse products ( by varie-ty ) produced globally. Dry beans account for one-third ( 32.80 % ) of global production, followed by chickpeas and dry peas.
Figure 5 : Global pulse production by variety, 2016
Bambara beans; 0,20%
Beans, dry, 32,80%
Broad beans, horse beans, dry ; 5,45%
Chick peas; 14,78%
Cow peas, dry; 8,55%
Lentils, 7,72%
Lupins; 1,57%
Peas, dry , 17,56%
Pigeon peas; 5,49%
Pulses, nes; 4,85% Vetches; 1,03%
Source : FAOSTAT.
10 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
TRADE TRENDS OF PULSESThe global trade in pulses accounts for 7.88 % of global production, with 92.12 % of production consumed local-ly.5 Still, the global trade in pulses is not a residual mar-ket, as several countries produce pulses for export, while many others rely on the world market to meet domestic demand. Since 1961, global trade in pulses has expanded by an average of 5.5 % per annum, reaching a volume of 17.2 million tons in 2016.6
Global consumption of pulses can be categorized into two major markets. One concerns the demand driven by human consumption, and the second by the alternate use of pulses for animal feed. Traditionally, low-quality, cheap pulses have been consumed as animal feed. In addition, there is some minor use of pulses in non-food sectors, including seeding and wastage. It can be safely assumed that there is limited variation in stocks from year to year, and that the non-food uses of pulses are a small percentage of total production. As a result, global con-sumption is more or less equal to global production. The largest markets for food pulses are in India, Bangladesh,
5. Calculations based on United Nations Comtrade and FAOSTAT ( 2016 ). The production quantity figures available from FAOSTAT are Bambara beans, beans ( dry ), broad beans, chickpeas, cowpeas, lentils and pulses n.e.s.6. FAOSTAT estimate ( 2016 ).
Pakistan and Sri Lanka, while the largest market for animal feed pulses is the European Union.7
Five subsectors of pulses ( peas, kidney beans, chick-peas, lentils and gram beans ) account for four-fifths of the market share of all traded pulses. Figure 6 shows the main prod ucts which are imported within the pulses sector. The most exported products are dried peas, which account for almost a quarter of global pulse imports ( with India being the high est importer at 41.9 % in terms of value ).
7. FAO ( 2002 ). Agricultural Commodities : Profiles and Relevant WTO Negotiating Issues. Available from www.fao.org/docrep/006/y4343e/y4343e02.htm.
Figure 6 : Share of pulse crops in global export in 2016
Dried peas22,77%
Dried chickpeas14,85%
Dried beans12,15%
Dried red 'adzuki' beans1,11%
Dried kidney beans14,39%Dried bambara beans
0,03%
Dried cow peas0,21%
Dried beans3,08%
Dried lentils22,89%
Dried broad beans and horse beans/ faba
beans3,70%
Dried pigeon peas2,18%
Dried leguminous vegetables
2,64%
Source : ITC calculations based on United Nations Comtrade statistics.
Photo: (CC BY-SA 2.0) by PDPics from Pixabay.
11GLOBAL TRENDS IN PULSES
MAJOR IMPORTERS OF PULSESIndia has been by far the largest importer of pulses over the past decade and accounts for about 31.5 % of world imports. Specifically, India’s imports increased from US $ 1.459 billion in 2008 to US $ 4.017 billion in 2016. The high demand for pulses in India is mostly due to its vegetarian population, the increase of purchasing pow-er across its poorest population and unfavourable local weather conditions.8
8. Reddy, A. Amarender, Bantilan, M.C.S. and Mohan, Geetha ( 2013 ) Pulses Production Scenario : Policy and Technological Options ( Policy Brief No. 26 ). Patancheru, Andhra Pradesh, India : International Crops Research Institute for the Semi-Arid Tropics,..Available from http ://oar.icrisat.org/6812/1/26_Policy_BriefIndia %20_2013.pdf.
Another country that has shown an impressive rise of de-mand for pulses during the past five years is China. Its share has risen from a 2 % average for 2008–2009 to a 6 % average for 2012–2013.9 In fact, due to its growing use of dry pea protein to enrich vermicelli noodles and the coun-try’s slow expansion of pulse production, China is likely to change from being a net exporter to a net importer of pulses. It may also overtake India as the number one im-porter of yellow peas in the near future.
9. Ibid.
Table 1 : Major global importers of pulses
Importers
Value imported in 2016
( US $ billions )
Quantity imported in 2016
( million tons )
Annual growth in value
2012–2016 ( % )
Annual growth in quantity
2012–2016 ( % )
Share in world imports ( % )
World 12.74 16.78 6 8 100.0
India 4.02 6.18 17 14 31.5
Pakistan 0.70 0.89 18 15 5.5
Bangladesh 0.48 0.85 13 11 3.8
United Arab Emirates 0.43 0.48 16 10 3.4
China 0.42 1.07 -10 7 3.3
United States of America 0.39 - -4 3.1
Egypt 0.38 0.43 -2 1 3.0
Turkey 0.38 0.47 16 15 3.0
Brazil 0.33 0.41 -8 -4 2.6
Italy 0.26 0.31 -1 3 2.0
Others 4.94 5.68 38.8
Source : ITC calculations based on United Nations Comtrade statistics.
MAJOR EXPORTERS OF PULSESIn the past three decades, there has been impressive growth in the global exports of pulses. The compound an-nual growth rate between 2007 and 2016 was 10.1 %.10 By 2016, pulse exports reached a record high of US $ 12.091 billion.
10. Calculations based on United Nations Comtrade data for 2007–2016. Photo: (CC BY 2.0) pixabay, “seeds dried” by Rachel Tayse
12 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
Figure 7 : Exports of pulses by region or regional group, 2007–2016 ( US $ thousands )
0
2 000 000
4 000 000
6 000 000
8 000 000
10 000 000
12 000 000
14 000 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
World
Asia
Africa
Americas
Europe
Oceania
CIS
GCC
Source : ITC, Trade Map database. Note : Gulf Cooperation Council ( GCC ) members include, Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman ; Commonwealth of Independent States ( CIS ) members include Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, the Russian Federation, Tajikistan, Turkmenistan, Uzbekistan and Ukraine.
The pulses sector has also seen an increase in the num-ber of exporters over the last five years. The number of countries with export values above US $ 1 million went from about 70 in the early 2000s to 78 in 2008, and reached 90 in 2013. Leading exporters of pulses, such
as Canada and Myanmar, steadily increase the value of their exports while new suppliers such as Australia, the United Republic of Tanzania and the Russian Federation are also rapidly catching up. Table 2 provides details of today’s world-leading exporters of pulses.
Table 2 : Major global exporters of pulses
ExportersValue exported
in 2016 ( US $ billions )
Quantity exported in 2016
( million tons )
Annual growth in value
2012–2016 ( % )
Annual growth in quantity
2012–2016 ( % )
Share in world exports ( % )
World 12.09 15.83 6 10 100.0
Canada 3.12 5.69 13 13 25.8
Australia 1.46 2.13 10 6 12.1
Myanmar 1.39 0.49 3 11.5
United States 1.02 - 3 8.4
China 0.70 0.64 -11 -13 5.8
Argentina 0.51 0.67 6 13 4.2
Russian Federation 0.38 0.96 11 10 3.2
Turkey 0.34 0.32 15 8 2.8
Ethiopia 0.22 0.31 1 1 1.8
India 0.22 0.17 -3 -3 1.8
Others 2.73 4.45 22.6
Source : ITC Trade Map ( 2015 ).
13GLOBAL TRENDS IN PULSES
Box 2 : Import quotas on pulses in India
The Indian government has tightened norms for the import of pulses to ensure that its domestic prices do not fall below the minimum support price. The prices of most pulses have been below the minimum support price levels, leading to farmer unrest in the main pulse-growing areas.
Processors and traders have demanded that the government stop even restricted imports by the end of March 2019. India has imposed a quota of 5 million tons on annual imports of pulses which, if not terminated, will add to the already mounting stocks in the country. Domestic prices of most pulses such as pigeon pea, green gram and Bengal gram are below the minimum support price.
In August 2017, the Government restricted imports of pigeon peas, green gram and black gram. The free import of these varieties has been restricted by imposing a quota of 2 million tons on pigeon peas and 3 million tons on green gram and black gram taken together, except if imported by millers. In May 2018, the Government imposed an import cap on split and milled dal as well. Exporting pulses, which was not allowed for more than a decade, was also freed up in 2017. However, domestic prices have improved very little. Then the government fixed the quantity for imports to millers at 150,000 tons each of black gram and green gram along with 200,000 tons of pigeon peas, including split and other forms. According to government estimates, India imported 4.7 million tons of pulses between April 2017 and November 2017, which is 71 % of what the country imported during the 2016/17 fiscal year and 80.8 % of what it imported in the 2015/16 fiscal year.
For more information on import quotas in India please see : Madhvi Sally ( 2018 ). Government tightens norms for import of pulses, Economic Times, 14 May. Available from: https ://economictimes.indiatimes.com/markets/commodities/news/government-tightens-norms-for-import-of-pulses/articleshow/64155924.cms.
Photo: (CC BY-SA 2.0) Swathi Sridharan, Securing incomes for women in Ethiopia.
14 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
ETHIOPIA’S PULSES SECTOR
PRIORITY PULSES IN ETHIOPIAOf the various pulse species grown in Ethiopia – broad beans ( Vicia faba L. ), field peas ( Pisum sativum L. ), chickpeas ( Cicer arietinum L. ), lentils ( Lens cultinar-is Medik. ), grass peas ( Lathyrus sativus L. ), common beans ( Phaseolus vulgaris L. ), cowpeas ( Vigna unguicu-lata L. ), pigeon peas ( Cajanus cajan L. ) and mung beans ( Vigna radiata L. Wilczek ) – the following varieties have
been prioritized as focus products for this Strategy : broad beans, common beans ( also known as haricot beans, white pea beans or red kidney beans ), chickpeas ( kabuli and desi ), field peas, lentils and mung beans. Prioritization was decided based on the order of their importance in terms of area coverage and volume of production across Ethiopia.
Figure 8 : Prioritized pulses and the criteria used
Source : ATA and stakeholder analysis.
15ETHIOPIA’S PULSES SECTOR
PULSE PRODUCTION IN ETHIOPIAAs shown in figure 9, among the individual pulses, broad beans account for the greatest portion of production ( 32.12 % ), followed by dry beans ( 17.7 % ), chickpeas ( 16.25 % ), dry peas/field peas ( 12.74 % ), vetches/grass peas ( 10.87 % ) and lentils ( 6.8 % ).
While pulses are grown throughout the country and ac-count for 13 % of cropped land, production is concen-trated in Amhara and Oromia regions, which together
account for 87 % of broad bean production, 95 % of chick-pea production, 77 % of common bean production, 78 % of field pea production and 93 % of lentil production. Table 3 provides a snapshot of production levels disaggregated by region and pulse crop. The distribution of pulse-grow-ing areas in Ethiopia can be seen in figure 10.11
11. The data and maps for geographic distribution of pulse growing areas in Ethiopia are only available for 2006 ( Tadesse, M. and others ( 2006 ). Atlas of the Ethiopian Rural Economy. International Food Policy Research Institute, CSA & Ethiopian Development Research Association, Addis Ababa ). Updated data for 2016 are not available.
Figure 9 : Production of pulses ( tons ) and relative share of specific crops in Ethiopia, 2011–2016
17,24% 17,31% 16,49% 19,76% 20,15% 17,70%
31,78% 35,28% 35,76% 32,27% 31,66% 32,12%
17,80%15,31% 14,77% 17,64% 17,63%
16,25%
5,69% 5,66% 5,74%5,28% 5,00%
6,08%
11,71% 12,24% 13,70% 13,18% 12,06% 12,74%
2,19% 2,03% 2,10% 2,19% 2,76% 4,24%
13,59% 12,17% 11,44% 9,67% 10,73% 10,87%
0%
20%
40%
60%
80%
100%
120%
2011 2012 2013 2014 2015 2016
Vetches
Pulses, nes
Peas, dry
Lentils
Chick peas
Broad beans, horsebeans, dryBeans, dry
Source : FAOSTAT.
Table 3 : Pulse production in Ethiopia by region, 2016 ( tons )
Region Broad beans
Common beans Chickpeas Field
peasGrass peas Lentils Mung
beans Total
Amhara 272 644.0 105 820.0 233 265.00 114 930.00 181 624.60 79 895.00 35 297 1 023 476.00
Oromia 465 080.7 208 135.2 181 606.10 152 231.30 103 568.60 78 354.68 0 1188 977.00
Southern Nations, Nationalities, and Peoples’ Region
123 691.0 154 082.0 18 382.00 71 999.00 0.00 532.00 472 369 158.00
Tigray 15 109.0 0.0 10 502.65 7 763.26 10 453.45 7 470.00 51 298.35
Benishangul Gumuz
1 486.0 9 125.0 371.00 0.00 0.00 0.00 1 516 12 498.00
Dire Dawa 0.0 1 067.0 0.00 0.00 0.00 0.00 0 1 067.00
Total 878 010.7 478 229.2 444 126.70 346 923.60 295 646.60 166 251.70 37 285 2 646 473.00
Source : Central Statistical Agency of Ethiopia ( 2016 ).
16 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
Figure 10 : Distribution of pulse-growing areas in Ethiopia
Source : Tadesse, M. and others ( 2006 ).
As shown in figure 11, pulses are second in area cover-age and production in Ethiopia after cereals, with over 1.5 million hectares and 2.8 million tons of production. In contrast, cereals cover 10.1 million hectares and contrib-ute more than 23 million tons of grain. The annual growth rate of area coverage and production of pulses was also less than that of cereals and vegetables 2007–2012.
According to the Ethiopian Ministry of Agriculture and Natural Resources ( MoANR ), despite pulses being given importance as source of protein, for income, and for en-vironmental services, they have not been given as much attention as other crops in the past, as result of which production techniques at farmer level have made little progress.
17ETHIOPIA’S PULSES SECTOR
Figure 11 : Total area and production of different groups of crops in Ethiopia in 2016/17
25 3 85
2 8 158 39 8 13
4 6 217 92
Cereals Pulses Oilseeds Vegetables Root crops Fruit crops
Production ('000 tons)
10 219
1 550805 240 229 108
Cereals Pulses Oilseeds Vegetables Root crops Fruit crops
Area ('000 ha)
Source : CSA ( 2016 ).
There has been low investment in pulses research com-pared with cereals, by both the Government and donors. Similarly, pulse initiatives have been given less priority. As shown in figure 12, extension service coverage has been far less on pulses : only 6 % compared with 27 % coverage for cereals, 25 % for vegetables and 15 % for root crops.12 Moreover, most farmers face great short-ages of high-yielding, disease-resistant varieties because of low access to improved seed ; currently, less than 1 % of pulse land is covered with improved seed annually, while for cereals the coverage is 8 %. Similarly, the use of chemical fertilizers and pesticides for pulses is negligible. Among the pulse crops, common beans and chickpeas have relatively better seed use than the other pulses, while broad beans, field peas and common beans enjoy higher fertilizer application than the other pulses.
12. The data for coverage of extension service and input use in pulses production as compared with cereals in Ethiopia is only available for 2012–2013 : updated data for 2016 is not available.
Photo: (CC BY-SA 2.0) ICRISAT
18 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
Figure 12 : Coverage of extension service and input use in pulses production, as compared with cereals
Source : CSA ( 2013 ).
PULSE TRADE IN ETHIOPIA
Ethiopia’s most prevalent export goods are coffee, tea, maté and spices ( US $ 1,049 million ( 21 % ) ), as well as edible vegetables, to which pulses belong ( US $ 897 mil-lion ( 18 % ) ). Ethiopian exports of pulses reached US $ 240 million in 2015, and represented 5 % of Ethiopia’s total goods exported.13
Out of the total Ethiopian production of 296,156 tons of pulses in 2016, nearly 29 % of pulses were exported ( see figure 15 ).14 From a world market perspective, Ethiopian exports of pulses represent 3 % of world pulse exports. With this, Ethiopia ranks among the top 10 countries in world pulse exports with an exported value of US $ 240 million and exported volume of 338,974 tons in 2015. Ethiopia’s export trend in pulses reached a compound annual growth rate of 16 % between 2011 and 2015.
13. ITC calculations based on United Nations Comtrade statistics ( 2016 ).14. ITC calculations based on FAOSTAT ( 2016 ) and United Nations Comtrade ( 2016 ).
Photo: (CC BY-SA 2.0) Swathi Sridharan, Tsedeke Abate, ICRISAT scientist, visits a small market in Addis Ababa to look
at chickpea sales.
19ETHIOPIA’S PULSES SECTOR
Figure 13 : Ethiopian exported goods in 2016 ( US $ millions )
Coffee, tea, maté and spices29%
Edible vegetables and certain roots and tubers
20%
Oil seeds and oleaginous fruits
20%
Live trees and other plants; bulbs, roots and the like; cut flowers and
ornamental foliage8%
Meat and edible
meat offal4%
Raw hides and skins and leather
3%
Live animals3%
Electrical machinery and equipment
1%
Others8%
Natural or cultured pearls, precious metals,
metals4%
Figure 14 : Ethiopia’s total pulses export in US $ million and tons, 2011–2016
139.27
199.25
239.41
286.99
240.7248.74
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
0
50
100
150
200
250
300
350
2011 2012 2013 2014 2015 2016
tons
USD
mill
ion
Trade value (US$) Net weight (kg)
Source : ITC calculations based on United Nations Comtrade statistics ( 2016 ).
20 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
Figure 15 : Proportion of pulses exported from Ethiopia, 2016
Figure 16 : Largest destinations for Ethiopia’s pulse exports, 2016 ( US $ )
72980 44727789 588
27671 834
27374 384
12689 443
11331 827
8798 218
7130 513
6666 530
6098 710
5343 449
Pakistan
India
Indonesia
Viet Nam
United Arab Emirates
Kenya
Sudan
South Africa
Yemen
Russian Federation
Malaysia
Not export 71%
Export 29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1
Total pulse production : 2.73 million tons Quantity exported annually, 2016
Source : ITC calculations based on FAOSTAT ( 2016 ) and United Nations Comtrade statistics ( 2016 ). Note : The total production quantity estimate represents the sum of the production quantities of beans ( dry ), broad beans, chick-peas, pulses n.e.s., peas ( dry ) and vetches.
According to the most recent available data ( 2016 ), the most important export destinations for pulses are Pakistan, India, Indonesia and Viet Nam, with export val-ues of US $ 72.98 million, US $ 27.78 million, US $ 27.67 million and US $ 27.37 million respectively ( see figure 16 ). These countries already represent more than half of Ethiopia’s export destinations in value, which means that market concentrations have improved. Moreover, the number of markets with sales valued above US $ 1 mil-lion grew from six in 2001 to 24 in 2014.15 Hence, Ethiopia has diversified its significant export market in the past few years.
A closer look at Ethiopia’s pulses trade with India reveals that Ethiopia sold 11.17 % of its exported pulses to India in 2017, and between 2012 and 2016, pulse exports to India grew with an annual growth in value of 61.3 %.
15. ITC calculations based on United Nations Comtrade statistics ( 2016 ).
Pulses accounted for 6.93 % of export earnings in Ethiopia, and contributed more than US $ 248 million to the coun-try’s hard currency reserves in 2016. Export earnings from pulses have been growing at an annual growth rate of 16 %. Among the pulse crops, the top exported pulses are common beans, broad beans and chickpeas ( see table 4 ).
Photo: CC, by Maia C is licensed under CC BY-NC-ND 2.0.
21ETHIOPIA’S PULSES SECTOR
Figure 17 : Ethiopia’s most important export destinations in US $ million for pulses, 2016
Pakistan 29%
India 11 %
Indonesia 11.1%
Viet Nam11%
United Arab Emirates
5%
Kenya5%
Sudan4%
South Africa3%
Yemen3%
Russian Federation2%
Malaysia2%
Other14%
Source : ITC calculations based on United Nations Comtrade statistics ( 2016 ).
Figure 18 : Ethiopia’s total exports of pulses in commodities, 2011–2016 ( US $ thousands )
0
50
100
150
200
250
300
2012 2013 2014 2015 2016
USD
Mill
ion
Chickpeas
Mung
Kidney Beans
Cowpeas
Lentils
Broad Beans
Pigeon Peas
Source : ITC calculations based on United Nations Comtrade statistics ( 2016 ).
As figure 19 shows, Ethiopia’s most traded pulse vari-ety is kidney beans. They represent almost two-thirds of all pulse exports. Leguminous vegetable beans, broad / horse beans and chickpeas are also frequently traded varieties.
In the last five years, the export growth in value terms has been 16 % annually, with broad beans represent-ing the bulk of this growth. Looking into export trends for each variety, exports of mung beans and chickpeas
increased in 2016.16 Although their exports have grown fast, these varieties still represent a small proportion of exports compared with kidney beans. Exports of lentils, cowpeas and broad beans decreased in 2016 ( see ap-pendices for details ).
16. Data for cowpea exports from Ethiopia is only available for 2015 ; data for pigeon pea exports from Ethiopia is only available for 2014 ; and data for lentil exports from Ethiopia is not available for 2015.
22 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
Table 4 : Ethiopian export earnings from pulses, 2012–2016 ( US $ thousands )
Type of pulse crop
2012 2013 2014 2015 2016
Volume ( tons ) Value Volume
( tons ) Value Volume ( tons ) Value Volume
( tons ) Value Volume ( tons ) Value
Chickpeas 73 735 48 039 46 338 25 681 47 832 24 061 49 909 40 988 76 692 75 166
Broad beans 35 929 21 718 38 985 20 629 38 552 18 945 37 613 26 612 10 828 5 933
Red kidney beans
68 183 41 272 76 652 48 857 94 612 62 740 86 156 43 114 95 360 45 964
White pea beans
86 271 58 887 59 628 61 574 41 930 33 368 45 574 24 924 41 241 30 050
Others beans( speckled, cream, mottled )
28 763 22 275 56 346 40 419 56 449 35 686 54 822 31 995 41 984 29 170
Mung beans 17 396 16 712 22 737 27 534 22 719 27 822 28 174 32 876 68 818 68 836
Soya beans 33 732 18 818 35 606 19 988 27 475 13 296 67 241 28 158 47 837 20 784
Grass peas 5 783 2 998 12 545 4 964 6 243 2 536 750 412 720 384
Lupines 6 279 1 801 4 808 1 375 5 955 1 837 3 555 1 150 7 979 2 766
Pigeon peas - - - - - - 2 174 2 240 1 823 1 174
Field peas - - - - - - - - - -
Lentils - - - - - - - - 0 1
Total 356 071 232 520 353 645 251 021 341 767 220 290 375 969 232 469 393 282 280 226
Source : Ministry of Trade.
CURRENT VALUE CHAIN OF THE PULSES SECTOR
The current value chain of the Ethiopian pules sector is presented in figure 20. The description of the value chain below it enables a better understanding of the process-es involved in the production and distribution of pulses. Understanding the dynamics of the value chain is impor-tant to identify the issues affecting sector performance.
The key elements to consider in the Ethiopian pulses value chain are that there are three different channels of production – smallholder subsistence agriculture ( 95 % ), state commercial farms ( roughly 1–2 % ) and private com-mercial farms ( approximately 3 % ). Each of these models has their specificities. Smallholder agriculture is often less efficient since it is characterized by limited technical ca-pacity and intercropping based on lower-yielding varieties of seeds. This model also faces volume consistency and productivity challenges. It is accompanied by inadequate access to finance and difficulties in commercialization. Nevertheless, it is an important means of food securi-ty in rural regions, where almost half the production is used for household consumption. In contrast, large-scale
producers generate heavy volumes of pulses due to ad-vanced and more efficient production techniques accom-panied by easy access to finance. Large-scale producers also tend to focus on exports. These models are currently both essential and complementary for the development of the pulses sector in Ethiopia.
VALUE CHAIN OF THE PULSES SECTOR IN ETHIOPIA
The value chain analysis enables a better understanding of the dynamics and the issues affecting performance of the industry.
23ETHIOPIA’S PULSES SECTOR
Figu
re 1
9 : E
xist
ing
puls
es v
alue
cha
in in
Eth
iopi
a
24 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024VA
LUE
CH
AIN
DIA
GN
OS
TIC
S
Inp
uts
P
rod
uctio
n
A
ssem
bly
/pro
cess
ing
Mar
kets
Leg
end
:
E
nter
pris
e p
erfo
rman
ce is
sues
Reg
ulat
ory
and
pol
icy
issu
es
In
stitu
tiona
l and
co
ord
inat
ion
issu
es
Far
m p
rod
uct
ivit
y lo
w –
(i)
Far
mer
s ha
ve li
mite
d o
r no
tech
nica
l ski
lls, i
nclu
din
g a
deq
uate
ag
rono
mic
p
ract
ices
to im
pro
ve y
ield
s. (
ii) L
ow
cap
acity
ut
iliza
tion
on
farm
s. (
iii)
Lim
ited
ag
gre
gat
ion
of
smal
lho
lder
s fo
r co
mm
erci
al p
rod
uctio
n. (
iii)
Lim
ited
m
echa
niza
tion
(out
-of-d
ate
mac
hine
ry a
nd u
naw
are
of m
achi
nery
in th
e m
arke
t, lim
ited
fina
ncia
l abi
lity
to
inve
st in
mec
hani
zatio
n). (
iv)
Poo
r irr
igat
ion
met
hod
s (n
o fi
nanc
ial m
eans
to ir
rigat
e, n
o a
war
enes
s o
f wha
t th
ey s
houl
d b
e d
oing
). (
v) L
imite
d u
se o
f ap
pro
pria
te
agro
-inp
uts
incl
udin
g c
ertif
ied
seed
s, p
estic
ides
and
fe
rtili
zers
. (vi
) Li
mite
d o
r no
use
of G
AP
or
GM
P. T
his
is m
ost
ly d
ue to
lack
of k
now
led
ge
abo
ut s
uch
pra
ctic
es.
Lim
ited
use
of
qu
alit
y in
pu
ts –
(i)
Far
mer
s ar
e un
able
to
ob
tain
qua
lity
inp
uts
as th
ey a
re d
isp
erse
d a
nd fr
agm
ente
d
acro
ss th
e co
untr
y an
d m
ost
ly s
mal
lho
lder
s. (
ii) L
imite
d
avai
labi
lity
of p
rod
uctiv
e la
nd (
onl
y 15
% o
f the
co
untr
y’s
tota
l are
a is
ara
ble
and
onl
y 1%
is c
urre
ntly
cul
tivat
ed).
(iii
) Li
mite
d o
r no
use
of f
ertil
izer
s d
ue to
hig
h co
st a
nd
inac
cess
ibili
ty o
f fer
tiliz
ers.
(iv
) In
effic
ient
irrig
atio
n sy
stem
s (h
igh
dep
end
ency
on
natu
ral f
acto
rs s
uch
as r
ain)
. (v)
C
apac
ities
of t
he a
gric
ultu
re s
ecto
r ar
e w
eak.
(vi
) Li
mite
d
avai
labi
lity
of im
pro
ved
see
d v
arie
ties.
(vi
i) A
dul
tera
tion/
mix
ture
of s
eed
varie
ties
upo
n de
liver
y (b
oth
in
tent
iona
l and
uni
nten
tiona
l).
Ext
ensi
on
ser
vice
s h
ave
no
t b
een
exp
loit
ed f
ully
–
Lim
ited
kno
wle
dg
e an
d a
ppl
icat
ion
of b
est a
gro
nom
ic
pra
ctic
es.
Lim
ited
kn
ow
led
ge
of
inte
rnat
ion
al d
eman
d a
t p
rod
uce
r le
vel –
(i)
Lim
ited
bus
ines
s sk
ills
amo
ng
farm
ers,
ass
emb
lers
and
co
ope
rativ
es o
n g
lob
al
dem
and
and
aw
aren
ess
abo
ut c
usto
mer
re
qui
rem
ents
. (ii)
Lim
ited
or
no e
xpo
sure
to e
xpo
rt
mar
kets
. (iii
) P
oorly
dev
elo
ped
mar
ket r
esea
rch
dep
artm
ents
at S
ME
s an
d s
upp
ort
inst
itutio
ns.
Lim
ited
val
ue
add
itio
n –
(i)
Lim
ited
kno
wle
dge
of
valu
e ad
diti
on
pra
ctic
es. (
ii) T
echn
olo
gy
for
mec
hani
zatio
n fo
r va
lue
add
itio
n is
eith
er o
ut-o
f-d
ate
or
unkn
ow
n. (
iii)
Po
or
sour
cing
pra
ctic
es.
Inad
equ
ate
acce
ss a
nd
exp
ensi
ve t
rad
e in
telli
gen
ce –
(i)
The
valu
e ch
ain
is d
om
inat
ed b
y m
idd
lem
en (
they
do
no
t se
rve
as in
form
atio
n co
ndui
ts a
nd s
imp
ly p
ut s
pac
e b
etw
een
pro
duc
ers
and
fina
l mar
kets
). (
ii) L
imite
d a
vaila
bilit
y of
in
form
atio
n an
d a
dvi
sory
ser
vice
s fo
r m
arke
t dat
a an
d in
telli
gen
ce. (
iii)
Dat
a an
d in
form
atio
n fr
om
the
priv
ate
sect
or
is
exp
ensi
ve. (
iv)
Lim
ited
link
s to
rel
evan
t pub
lic s
ervi
ces,
esp
ecia
lly fo
r S
ME
s, a
nd b
etw
een
asso
ciat
ions
and
inst
itutio
ns to
an
alys
e an
d u
se tr
ade
inte
llige
nce.
Po
sth
arve
st lo
sses
an
d q
ual
ity
deg
rad
atio
n
du
rin
g s
tora
ge
and
pro
cess
ing
– (
i) In
adeq
uate
w
areh
ous
ing
sp
ace
dom
estic
ally
. (ii)
Poo
r w
areh
ous
e m
anag
emen
t ski
lls a
nd im
pro
per
sto
rag
e p
ract
ices
that
lead
to d
egra
dat
ion
of
pro
duc
e q
ualit
y. (
iii)
Inad
equa
te s
anita
tion
of
pre
mis
es.
Infr
astr
uct
ure
fo
r q
ual
ity
man
agem
ent
is in
suff
icie
nt
– (i
) Th
e E
thio
pian
Nat
iona
l Acc
red
itatio
n O
ffice
(E
NA
O)
lack
s in
tern
atio
nal a
ccre
dita
tion,
whi
ch is
a m
ajo
r ch
alle
nge
for
glo
bal
trad
e. (
ii)
The
lab
ora
torie
s to
per
form
rel
evan
t tes
ts a
re a
lso
limite
d b
y in
fras
truc
ture
and
cap
aciti
es. (
iii)
Lim
ited
or
no th
ird-p
arty
co
nsul
ting
ser
vice
s ar
e av
aila
ble
loca
lly to
cer
tify
qua
lity.
(iv
) Th
ere
is n
o
inst
itutio
n fo
r fo
od
saf
ety
dea
ling
with
afla
toxi
ns.
Inad
equa
te c
ontr
act e
nfor
cem
ent m
echa
nism
s –
(i) L
ack
of a
rbitr
atio
n m
echa
nism
s. (i
i) Co
nflic
ts b
etw
een
expo
rters
and
impo
rters
for p
rice
and
qual
ity d
efau
lts in
adeq
uate
ly a
ddre
ssed
. (iii
) Ina
dequ
atel
y de
sign
ed o
r dev
elop
ed fu
ture
s co
ntra
cts.
(iv)
The
lega
l fra
mew
ork
for c
ontra
ct fa
rmin
g is
lim
ited.
Co
ord
inat
ion
cap
acit
ies
bet
wee
n s
take
ho
lder
s is
slo
wly
evo
lvin
g –
(i)
Str
ugg
ling
with
a lo
ng s
upp
ly c
hann
el w
ith m
any
mid
dlem
en in
the
valu
e ch
ain.
(ii)
Info
rmat
ion
shar
ing
bet
wee
n st
akeh
old
ers
is li
mite
d a
nd m
inim
al u
se o
f inf
orm
atio
n an
d c
om
mun
icat
ions
te
chno
logy
(IC
T) to
ols
. (iii
) C
oord
inat
ion
and
co
mm
unic
atio
n b
etw
een
inst
itutio
ns in
the
valu
e ch
ain
is w
eak.
(iv
) A
bili
ty o
f pla
tform
s to
sha
re in
form
atio
n b
etw
een
stak
eho
lder
s is
wea
k.
Lim
ited
cap
acit
ies
of
the
Cu
sto
ms
dep
artm
ent
– (i)
Wea
k in
fras
truc
ture
for
Cus
tom
s en
forc
emen
t, es
pec
ially
lim
ited
us
e o
f IC
T te
chno
log
ies
for
fast
er C
usto
ms
pro
cess
ing
. (ii)
C
usto
ms
offi
cers
inad
equa
tely
trai
ned
in in
tern
atio
nal
stan
dar
ds
for
com
mo
diti
es. (
iii)
Cus
tom
s p
roce
sses
cu
mb
erso
me
and
co
mp
lex.
(iv
) In
suffi
cien
t or
no fa
st-t
rack
sy
stem
s fo
r re
put
able
imp
ort
ers/
expo
rter
s. (
v) G
lob
al p
rice
info
rmat
ion
not u
pda
ted
at C
usto
ms
po
sts.
Co
nfi
ned
bra
nd
ing
an
d t
rad
e p
rom
oti
on
cap
acit
ies
– (i)
W
eak
inte
rnat
iona
l mar
ket l
inks
. (ii)
No
bra
nd p
rese
nce
for
the
Eth
iopi
an p
ulse
s se
cto
r, le
adin
g to
ab
senc
e o
f a
cohe
rent
‘vo
ice’
for
the
sect
or a
s th
ere
is n
o m
arke
ting
and
b
rand
ing
str
ateg
y. (i
ii) W
eak
finan
cial
and
tech
nica
l ca
pac
ities
at i
nstit
utio
ns. (
iv)
Lim
ited
co
mm
on
pro
mo
tiona
l an
d o
utre
ach
mat
eria
l rea
dily
ava
ilabl
e to
pro
mo
te th
e in
dus
try
and
its
pro
duc
ts in
fore
ign
mar
kets
. (v)
Lim
ited
m
arke
t inf
orm
atio
n an
d p
oo
r kn
ow
led
ge o
f exp
ort
mar
kets
an
d th
eir
req
uire
men
ts. (
vi)
Few
op
port
uniti
es fo
r p
artic
ipat
ion
in in
tern
atio
nal e
xhib
itio
ns. (
vii)
Lim
ited
sup
po
rt fr
om
Go
vern
men
t, w
ith n
o in
cent
ives
to e
xpo
rt a
nd
limite
d in
form
atio
n su
pp
ort
fro
m e
mb
assi
es a
nd tr
ade
atta
chés
ove
rsea
s.
Inst
itu
tio
nal
cap
aciti
es a
re in
subs
tan
tial
– L
imite
d e
xper
tise
in a
reas
suc
h as
po
licy
advo
cacy
, mar
ket i
ntel
ligen
ce g
athe
ring
and
dis
sem
inat
ion,
and
trad
e p
rom
otio
n.
Fin
ance
is e
xpen
sive
or
dif
ficu
lt t
o a
cces
s –
(i)
Inad
equa
te s
kills
on
loan
and
ris
k an
alys
is a
t ban
ks, i
nclu
din
g a
limite
d le
gal f
ram
ewo
rk fo
r p
rovi
ding
fina
nce.
(ii)
Acc
ess
to fo
reig
n ex
chan
ge
is li
mite
d. (
iii)
Fre
que
nt d
elay
s in
pro
cess
ing
fina
ncia
l tra
nsac
tions
. (iv
) In
form
atio
n o
n th
e cr
editw
ort
hine
ss o
f deb
t see
kers
is li
mite
d o
r un
avai
lab
le. (
v) S
trin
gen
t co
llate
ral r
equi
rem
ents
. (vi
) Li
mita
tions
on
the
amo
unt o
f cre
dit
avai
lab
le (
no e
ntity
can
bo
rro
w m
ore
than
US
$22
mill
ion)
.
Exp
ensi
ve a
nd
un
relia
ble
tra
nsp
ort
atio
n n
etw
ork
– (
i) H
igh
po
rt h
andl
ing
fees
in D
jibo
uti.
(ii)
Po
or
road
and
rai
l inf
rast
ruct
ure,
par
ticul
arly
in r
ural
are
as. (
iii)
Lim
ited
tran
spo
rtat
ion
serv
ices
and
no
t eno
ugh
truc
ks, l
eadi
ng to
hig
h lo
gis
tics
cost
s. A
lso
, co
mp
etiti
on
in
the
truc
king
ind
ustr
y is
neg
ligib
le, e
xace
rbat
ing
hig
h lo
gis
tics
cost
s.
Pro
mo
tio
n t
o a
ttra
ct F
DI
is li
mit
ed –
Lim
ited
ski
lls in
re
leva
nt a
gen
cies
to id
entif
y, a
ppro
ach
and
eng
age
with
po
tent
ial i
nves
tors
.
25ETHIOPIA’S PULSES SECTOR
FOCUSING ON THE MOST PRESSING ISSUESA review of literature and stakeholder consultations has re-vealed a number of constraints in the pulses sector which affect its long-term performance. The issues mentioned below represent the challenges in the value chain. In order to ensure the Strategy is efficient and specific, only the most critical bottlenecks are presented in further detail, followed by an explanation of how they will be addressed through the activities of this Strategy.
Supply-side issues for input provisions
Limited use of quality inputs
� Land : Ethiopia has a total area of 112 million hectares. Only 15 % of this is arable and only 1 % is currently cultivated.17 Pulses are grown throughout Ethiopia, particularly concentrated in the Amhara and Oromia regions.18 However, they account for roughly 13 % of cropped land area and are dispersed and fragmented across the country. Moreover, contract farming prac-tices are largely absent so pooling of land resources is also not practised effectively.
� Water : Agriculture in Ethiopia is largely rain-fed and technologies for irrigation are weak or absent for most farmers. This is due to the high cost of irrigation and at times lack of information on irrigation practices. Lack of drainage systems also causes losses, as it is not uncommon for full crop losses to occur in areas with high rainfall.
� Seeds : Most pulse seeds in Ethiopia are procured from local farmers who retain from their produce. This leads to decreased crop quality due to low genetic poten-tial. Moreover, farmers have limited knowledge of best practices to grow better quality seed ; nor do they have access to improved seed varieties.
� Mechanization : Ethiopian agriculture is characterized by its low level of mechanization. Land on smallhold-ings is typically prepared with oxen. Ethiopia’s major agricultural imports include agricultural machinery ; however, the purchase and use of modern machinery such as tractors and combine harvesters is typically limited to large-scale farms. This is because of the high cost and low availability of modern farming machinery for smallholders.
� Fertilizers and pesticides : Most fertilizers and pesti-cides, if they are not from natural sources such as ani-mal and plant residue, are imported from international
17. Netherlands-African Business Council ( 2015 ). Business Opportunity Report : Oilseeds and Pulses. Available from www.nabc.nl/uploads/content/files/BOR %20Oilseeds %20 %26 %20Pulses %20- %20Final( 1 ).pdf.18. Ibid.
providers, making access to these products limited and expensive. Hence, most smallholders rely on natu-ral fertilizers and pesticides. This lowers the yield.
The following activities of the PoA focus on these issues : 1.2.1, 1.2.2, 1.2.3
Inadequate extension services
Farmers in Ethiopia have limited skills, especially techni-cally advanced skills, as they do not have a chance to build their knowledge through private training or capacity-building. Their knowledge and application of best agro-nomic practices is also limited and needs support from extension services. However, extension services focus on rain-fed agriculture and technology not specific to agro-ecologies, with slow adoption of technology.
These constraints are addressed through PoA 1.3.1, 1.3.2.
TOP ISSUES TO BE ADDRESSED FOR PRODUCTION
Low farm productivity
The main causes of low productivity among smallholders are : limited pesticide and fertilizer use, the lack of crop rotation, low-yielding seeds and the lack of mechaniza-tion. The causes of the low quality of pulse yields are : absence of quality diagnostics, low seed quality, the ab-sence of quality incentives, the lack of technical skills, poor postharvest techniques, unskilled labour and out-dated machinery, and especially the non-use of GAP or GMP. Limited aggregation of smallholdings to build scale for commercial production also limits productivity.
Technology for mechanization to increase value addition is either out of date or unknown.
Research and development of mechanization technolo-gies for on-farm production and postharvest process-ing of pulses is in its infant stage. Limited attention has been given to upgrading mechanization technologies and adapting modern methods of production. Existing mecha-nization technologies for pulse production in Ethiopia are tie ridges, tillage implements, row planters and broad bed makers.19 This highlights the need to capitalize on mecha-nized technologies.
19. EIAR, MoANR and ATA ( 2013 ). Working Strategy for Strengthening Ethiopia’s Chickpea Value Chain : Vision, Systemic Challenges and Prioritized Interventions. Addis Ababa. Available from https ://agriknowledge.org/downloads/2r36tx551.
26 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
Poor sourcing practices.
Very limited availability of improved seeds ( most puls-es are grown from unimproved cultivars with low genetic potential ) and substandard procurement practices re-sult in the production of inferior-quality pulses. Despite the release of a large number of improved pulse varieties which are adapted to a wide range of rainfall, soil and altitude conditions, the use of certified improved seeds by farmers is very low. A combination of factors explains low adoption. On the one hand, supply-side constraints – including extension services – limit smallholders’ knowl-edge of production practices and the benefits of diversi-fication. On the other hand, a set of market-led demand constraints, particularly price instability in 2008, have led to diminished trust in the pulses sector following declin-ing market returns.20 Even though seeds are provided by MoANR, they are not in high demand for export. MoANR and the Ethiopian Institute of Agricultural Research ( EIAR ) do not supply tailored-made packages or different vari-eties to producers of a specific type of pulse. Targeted research programmes to verify improved quality seeds are essential.
Issues of Aflatoxin and MRL ( Maximum residual limit )
The limited utilisation of GAP causes issues with utilisation of chemicals for productions. This is particularly crucial for export to EU. Smallholder famers are using excessive farm and storage chemicals that has caused high chemi-cal residue-white pea bean is a typical example. Likewise the recent ban of red kidney bean by Pakistan is related to Aflatoxin.
This constraint is addressed through PoA 1.3.2, 1.3.3, 1.3.4
TOP ISSUES TO BE ADDRESSED FOR ASSEMBLY/PROCESSING
Limited value addition
Limited knowledge of value addition practices and a focus on the bulk national market.
Significant potential for productivity gains in the pulses sector clearly exists : however, it is constrained by inad-equate knowledge about efficient agronomic practices and postharvest management. This has further resulted in poor quality and low-yielding pulses. The prime cause
20. Boere, Auke and other ( 2015 ). Investment Opportunities in the Ethiopian Oilseeds and Pulses Sub-sector : #5 in the series written for the ‘Ethiopian Netherlands business event’ 5-6 November 2015, Rijswijk, The Netherlands. Available from www.rvo.nl/sites/default/files/2015/11/Rapport_Oilseed_Ethiopi %C3 %AB.pdf.
can be attributed to restricted funding for research and development and negligible attention paid to technolo-gy development. Moreover, the bulk of pulses are con-sumed on-farm, with marketed output accounting for only 13–28 % of production, depending on the variety.21 In or-der to ensure a sustainable increase in farm productivity, investments in research and knowledge of value addition practices are required.
This constraint is addressed through PoA 1.2.3, 1.3.3, 1.3.4, 1.3.5.
Postharvest losses and quality degradation during storage and processing
In Ethiopia, the most common storage method used is storing produce indoors in industrially produced sacks made of polypropylene or jute. However, insect and ro-dent infestations are common threats when pulses are stored this way. Storage issues mainly stem from the lack of adequate warehouse space ; poor warehouse man-agement skills ; improper storage practices that lead to infestation, moisture and sunlight exposure ; temperature management ; and inadequate sanitation of premises. The absence of private extension services to provide tempo-rary storage solutions ( temporary silos ) worsens the situ-ation and discourages quality product.
This constraint is addressed through PoA 1.3.6
TOP ISSUES TO BE ADDRESSED FOR EXPORTS AND MARKET ENTRY
Promotion to attract FDI to the sector is limited
FDI triggers technology spillovers, assists human capital formation, contributes to international trade integration, helps to create a more competitive business environment and enhances enterprise development. In Ethiopia, ex-change rate volatility, the political situation, a lack of clear policies and regulatory impediments were identified as the four main factors that have deterred foreign invest-ment. The following issues can be addressed : i ) quality information needed by investors has not been provided due to insufficient coordination and links with relevant authorities, and ; ii ) investor service is limited to the initial
21. Yirga, Chilot and other ( 2010 ). Pulses Value Chain Potential in Ethiopia : Constraints and Opportunities for Enhancing Exports. International Food Policy Research Institute. Available from www.researchgate.net/profile/Shahidur_Rashid/publication/282730151_Pulses_Value_Chain_Potential_in_Ethiopia_Constraints_and_opportunities_for_enhancing_exports/links/561a089f08ae044edbafe415/Pulses-Value-Chain-Potential-in-Ethiopia-Constraints-and-opportunities-for-enhancing-exports.pdf.
27ETHIOPIA’S PULSES SECTOR
stage of the investment and not aftercare, particularly for certain cumbersome administrative procedures after the operational phases of value addition projects for pulses that have been invested in. Limited skills in relevant agen-cies to identify, approach and engage with potential inves-tors has exacerbated this scenario. Negligible attempts to create an attractive investment climate and poor coor-dination among the investment promotion agencies have discouraged the flow of foreign investments.
This constraint is addressed through PoA 2.2.6 and 2.2.7.
Limited branding and trade promotion capacities
The global north perceives Ethiopia to be food insecure, leading to a lack of confidence from international buy-ers. This image is further hindered by the inconsistent quality of pulses coming from Ethiopia. As long as these negative perceptions persist, they will continue to present roadblocks to market expansion and investment promo-tion. Also, the absence of a coherent ‘voice’ for the sec-tor – due to no marketing and branding strategy for it, poor market information and limited knowledge of export markets and their requirements – has damaged the sec-tor’s reputation.
Moreover, there is no adequaetly organized effort made by national actors for trade promotion. The Ethiopian Export Promotion Agency tends to fall short on ade-quate capacities, and engages in limited and unstruc-tured participation in trade fairs. Confined exposure to foreign markets, a shortage of trade intelligence, absence of in-market support from institutions and insufficient sup-port from embassies and trade attachés overseas all limit trade in the sector.
This constraint is addressed through PoA 1.2.2, 1.2.3, 1.2.5, 1.3.1, 2.1.2, 2.1.3, 2.2.5, 2.2.6.
Limited capacities of the Customs authority
According to the World Bank Doing Business report for 2017, it takes 17.2 days to import to and 6.2 days to export from Ethiopia ( to complete border and documentary com-pliance ), significantly longer than the six hours to export from Lesotho and seven hours to import from Botswana, both from the sub-Saharan region and landlocked coun-tries like Ethiopia.22
22. World Bank ( 2017 ). Doing Business 2017 : Equal Opportunity for All – Regional Profile ( 2017 ) Sub-Saharan Africa. Washington, D.C. Available from www.doingbusiness.org/reports/~/media/WBG/DoingBusiness/Documents/Profiles/Regional/DB2017/SSA.pdf.
This is due to the limited infrastructure available to Customs enforcement, especially the limited use of ICT for faster Customs processing. Also, Customs officers are inadequately trained in international standards for com-modities and many Customs processes are cumbersome and complex. Furthermore, there are few or no fast-track systems for reputable importers or exporters.
This constraint is addressed through PoA 2.3.1, 2.3.2, 2.3.3.
TOP ISSUES TO BE ADDRESSED ACROSS THE VALUE CHAIN
Coordination capacities between institutions and stakeholders are slowly evolving
There is limited expertise in areas such as policy advo-cacy, market intelligence gathering and dissemination, and trade promotion. This implies that the coordination of effective dialogue between the private sector and oth-er stakeholders has not been realized yet, which means capacity-building through training programmes and knowledge-building workshops for local and national representatives is vital.
( i ) Struggling with a long supply channel with many middlemen.
As illustrated in the current value chain diagram, brokers, primary cooperatives, local retailers, local wholesalers, regional wholesalers, farmers’ unions and other middle parties between customers and suppliers face the chal-lenge of being price-competitive and service-responsive while still making a profit. With all these pressures to com-pete and to differentiate one’s product, these parties tend to charge exorbitant prices and multiply inefficiencies in the system. This ultimately leads to a lack of transparen-cy between producers and customers, thereby reducing the level of trust among both national and international consumers.
( ii ) Limited information-sharing between stakeholders of the value chain and minimal use of ICT tools.
Agricultural producers and traders in Ethiopia need an appropriate space to share and access available infor-mation regarding technological advancements, competi-tiveness of the market and the potential of pulse crops. Information-sharing between national and local represent-atives is a well-recognized challenge in the Ethiopian puls-es value chain, due to which information often remains scattered and locked within different stages of the sup-ply chain. Gaining full socioeconomic benefits by using
28 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
available information regarding market players, inputs procurement and prices therefore becomes impossible.
( iii ) Coordination and communication between institu-tions is slowly evolving.
The existing institutional arrangements, with multiple en-tities involved, tend to raise the complexity of the overall value chain of pulses. This leads to a lack of coordina-tion and effective communication between stakehold-ers at every stage of the chain. It is possible that poor knowledge management and outreach practices add to the difficulty.
( iv ) The ability of networks to share information between stakeholders is weak.
The major systemic bottleneck identified in the Ethiopian pulses sector is poor technical know-how accompanied by irregular knowledge-sharing platforms. According to ATA and MoANR, farmer-based organizations and farmer-driven groups act as the prime source of market informa-tion.23 They serve as hubs for knowledge and centres for developing best practices. However, their weak capacities to provide extension support to farmers and information to other stakeholders creates an information gap in the pulses market.
This constraint is addressed through PoA 1.1.1, 1.1.2, 1.1.3, 3.1.1, 3.1.2, 3.1.3.
Finance is expensive or difficult to access
Access to financial services either through credit, sav-ings or other financial instruments is essential to purchase high-quality inputs. As highlighted by MoANR, Ethiopian Seed Enterprises and ATA in 2011, the cost of chickpea seed on a per-hectare basis is up to two or three times more expensive compared with other crops due to its high yield rate.24 Smallholders – who constitute 95 % of total pulse producers – tend to face liquidity crunches and are not in a favourable position to buy high-quality inputs. This situation is aggravated by the limited infor-mation available on credit and access to other financial resources. This clearly stresses the significance of credit, which is an important tool to help farmers afford inputs, including improved seed.
23. ATA and MoANR ( 2014 ). National Strategy for Ethiopia’s Agricultural Extension System : Vision, Systemic Bottlenecks and Priority Interventions. Addis Ababa. Available from https ://agriknowledge.org/downloads/0c483j399.24. EIAR, MoANR and ATA ( 2013 ). Working Strategy for Strengthening Ethiopia’s Chickpea Value Chain : Vision, Systemic Challenges and Prioritized Interventions. Addis Ababa. Available from https ://agriknowledge.org/downloads/2r36tx551.
( i ) Weak skills on loan and risk analysis at banks, includ-ing limited legal framework for providing finance
With regard to the capabilities of the financial sector in Ethiopia, risk management stands out as a key issue. The Association of Ethiopian Microfinance Institutions stated in 2010 that commercial banks in Ethiopia lack the skills to properly assess borowers, including the microfinance institutions that in turn primarily serve the pulses sector.25 Also, the results from the National Bank of Ethiopia’s Risk Management Survey Report ( 2009 ) mentioned that in 87 % of Ethiopian banks, a significant share of board members did not have risk management training ; and in 60 % of banks, the board of directors is not provided with relevant and up-to-date economic, business and market data for informed decision-making.26 This shapes in lim-ited legal frameworks in place and adds to the weak or-ganizational capacities of the financial institutions.
( ii ) Limitations on the amount of credit available.
According to the World Bank Doing Business report ( 2018 ), Ethiopia ranks 173 out of 190 countries for ease of getting credit.27 The data also suggest that no entity can borrow more than US $ 22 million. Another World Bank indicator, the ‘Depth of Credit Information Index’, meas-ures rules and practices affecting the coverage, scope and accessibility of credit information available through either a public credit registry or a private credit bureau, and has been identified as an effective way to estimate the credibility of the information. On a scale of 0–8, Ethiopia’s depth of credit index is zero, which emphasizes the need to revise the financial and legal frameworks of the bank-ing industry.28
This constraint is addressed through PoA 3.2.1, 3.2.2, 3.2.3, 3.2.4.
Expensive and unreliable transportation network
Ethiopia is a landlocked country dependent on Djibouti for its port facilities. The port handling fees in Djibouti are high and connectivity to there is expensive due to poor road and rail infrastructure, particularly in rural areas. Lack of competition in the trucking industry and an insufficient number of trucks also increase the cost of transporta-tion. These issues effect the logistics of pulses as well.
25. Association of Ethiopian Micro-Finance Institutions ( 2010 ). Agricultural finance potential in Ethiopia : Constraints and Opportunities for Enhancing the System. Available from https ://agriknowledge.org/downloads/5m60qr91n.26. Ibid.27. World Bank ( 2017 ). Doing Business – Measuring Business Regulations : Data – Ethiopia. Available from www.doingbusiness.org/data/exploreeconomies/ethiopia#getting-credit. Accessed 21 May 2018.28. Ibid.
29ETHIOPIA’S PULSES SECTOR
The recently inaugurated Addis Ababa – Djibouti – Port of Doraleh railway line has made connectivity accessible and cheaper, but transporting produce from the rural ar-eas of Ethiopia it is still a challenge.
This constraint is addressed through PoA 1.2.2, 1.2.3.
Inadequate contract enforcement mechanisms
In Ethiopia, there is not much regard for contract farming as there is no legal framework to support it. It is not unu-sual for exporters to default on international buyers and vice versa. The major issues are the lack of arbitration mechanisms ; conflicts between exporters and importers for price and quality defaults ; inadequately developed futures contracts ; and an inadequately developed legal framework for contract farming.
( i ) Lack of arbitration mechanisms.
The absence of dedicated grievance and redressal mech-anisms results in serious disputes among stakeholders and parties involved in the supply chain. Due to its loose contract enforcement guidelines, Ethiopia experiences a variety of conflicts, which in other countries are often ad-dressed by an alternate dispute resolution mechanism, but this does not exist in Ethiopia. This means that litiga-tion is the only option for dispute resolution, and court case tend to take a long time to resolve. Repeated ad-journments and the resultant delays in resolution of cases are associated problems observed in African judiciaries. In Ethiopia, courts are overburdened by cases and it is commonplace for cases to take many months and even years to be finally settled.29
( ii ) Conflicts between exporters and importers for price and quality defaults are inadequately addressed.
The communication gap between exporters and import-ers regarding quality standards for price, and lack of transparency in enforcement mechanisms lead to seri-ous clashes between trading partners. The diverseness of regional trade agreements tends to create confusion about different aspects of trade such as quality checks, payment terms and conditions, supply guidelines and in-tellectual property rights. This can be accredited to a lack of universal certification and a quality standard system.
29. Aemero, Yoseph ( 2012 ). Process, Challenges and Prospect of Civil Litigations, in Ethiopian Business Law Series, The Resolution of Commercial/Business Disputes in Ethiopia : Towards Alternatives to Adjudication? ( in Amharic ), Yazachew Belew, ed., vol. 5, December, pp. 15–18. See also : Bereket Alemayehu Hagos, Mehrteab Leul and associates ( 2016 ). Is ADR a knell for litigation in Africa or a partner, and how far has it gone so far? International Bar Association. Available from
www.ibanet.org/Article/Detail.aspx?ArticleUid=1ff86bf3-f39c-48ec-be48-e144ab6aa7b0#_edn7.
( iii ) Inadequately designed or developed futures contracts.
Poorly drafted and designed contracts are often the prime source of claims. If they contain contradictions or am-biguities, it is natural for each party to interpret the in-consistencies to their advantage, thus giving grounds for contention and dispute. This again highlights the lack of technical capacities of lenders and financial institutions to ensure that contracts are clear, concise and address every feature of the trade involved. In Ethiopia, there is no modern collateral registry in which registrations, amend-ments, cancellations and searches can be performed online by any interested third party.30
( iv ) The legal framework for contract farming is limited.
Contract farming arrangements are important in linking commercial and development objectives. The inclusion of small-scale farmers in market-oriented value chains is expected to both augment production volumes and boost farmer income. This double impact is exactly why govern-ments and development organizations have supported contract farming arrangements in Ethiopia. Contract farm-ing moves away from spot market transactions, where producers and buyers agree on price at the time of sell-ing. However, detractors of contract farming stress the vulnerability and powerlessness of smallholders in the contract relationship. In many contract farming schemes, there is disparity in price information between the farmers and the firm. Also, because of the high prices of inputs, smallholders may be locked into the arrangement due to the debts they accumulate.31 Critics view contract farm-
30. World Bank ( 2017 ). Doing Business – Measuring Business Regulations : Data – Ethiopia. Available from www.doingbusiness.org/data/exploreeconomies/ethiopia#getting-credit. Accessed 21 May 2018.31. Holtland, G., ed. ( 2017 ). Contract Farming in Ethiopia : Concept and Practice. Arnhem, The Netherlands : AgriProFocus. Available from https ://images.agri-profocus.nl/upload/Contract_Farming_in_Ethiopia_-_Concept_and_Practice1495022084.pdf.
Photo: (CC BY-SA 2.0) Alina, Seed producer Bedilu Mamo from Tulu Rae central Ethiopia
30 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
ing as supporting the penetration of cash crops at the expense of food security. As there is no unified school of thought, the legal framework for contract farming is extremely limited.
This constraint is addressed through PoA 2.1.1, 2.1.2, 2.2.2, 2.2.3.
TOP ISSUE TO BE ADDRESSED ACROSS THE INPUTS, PRODUCTION AND ASSEMBLY/PROCESSING ASPECTS OF THE VALUE CHAIN
Infrastructure for quality management is insufficient
ENAO lacks international accreditation, which is a major challenge for global trade.
An absence of the recognition of and affiliation to inter-national statistical standards and classifications poses a challenge for global trade and discourages participation in the international market. Without such accreditation, consultations on common grounds such as quality, pay-ment gateways and other trade variables cannot be fa-cilitated. International standards and certification systems tend to provide a common framework for collecting and organizing information about trade indicators and statisti-cal variables. Their use, either directly or through national adaptations, facilitates the exchange and comparability of statistics and other information between countries.
The laboratories to perform quality tests are also limited by infrastructure and capacities.
There are only 15 quality testing laboratories in Ethiopia which have officially received accreditation from ENAO.32 They exhibit poor implementation capacities, low levels of knowledge and limited infrastructure. Assessor train-ings are also quite infrequent. Hence, inability to credibly signal high quality may be a hindrance to farmers’/firms performance and exporting in other countries. The World Bank is trying to investigate whether improving the nation-al quality infrastructure system in Ethiopia can promote quality upgrading, firm growth and exporting.33
32. ENAO ( 2018 ). Directory of accredited facilities. Available from www.enao-eth.org/facilities.php?type=Testing+Laboratories.33. World Bank Group ( 2017 ). Ethiopia National Quality Infrastructure Development in Ethiopia Concept Note. Available from http ://pubdocs.worldbank.org/en/156261510247742377/Ethiopia-National-Quality-Infrastructure.pdf ; quality infrastructure is defined as an institutional framework that establishes and implements a number of interlinked activities among standardization, accreditation, metrology, and conformity assessment ( testing, inspection, and certification ).
Limited or no third-party conformity assessment bodies are available locally to certify quality.
Seed quality control/assurance, which is vital along the entire value chain, is almost neglected by most stakehold-ers in the sector. The Ethiopian seed system has been evolving in an attempt to seeds of the required quality are available at an affordable price. However, due to the lack of both financial and technical resources in Ethiopia, there is no concept of a third-party certification process where a third party provides its consultancy services to commercial farmers and smallholders to verify that pro-duce has met certain quality standards. This also reflects the information gap both on behalf of the producers and the Government.
This constraint is addressed through PoA 1.2.4, 1.2.5, 1.3.4, 1.3.5, 1.3.6, 2.4.1, 2.4.2, 2.4.3.
TOP ISSUE TO BE ADDRESSED ACROSS THE ASSEMBLY/PROCESSING AND MARKET ENTRY ASPECTS OF THE VALUE CHAIN
Inadequate access to and expensive trade intelligence
Ethiopia enjoys preferential market access to the United States under the African Growth and Opportunity Act, to the European Union under the Everything But Arms initia-tive, and to the Common Market for Eastern and Southern Africa by virtue of its membership. As a result, many puls-es can enter some of the most important regional and international markets duty free. Even so, stakeholders have thus far been unable to fully benefit from these mar-ket access opportunities. The key constraints on export expansion are :
� Limited understanding of the opportunities offered by these markets and the requirements of entry ;
� A multilayer value chain dominated by middlemen ( who do not serve as information conduits and simply put space between producers and final markets ) ;
� Finite information and advisory services ; � The high cost of data from the private sector ; � Infrequent availability of relevant public services ; � Scarce extension services ; and � Limited skills at small and medium-sized enterprises
( SMEs ), associations and institutions to analyse and use trade intelligence.
This constraint is addressed through PoA 1.2.3, 1.2.5, 2.3.1, 2.3.2, 2.3.3, 3.1.1, 3.1.2 3.1.3.
31ON THE PATH TO SUCCESS
ON THE PATH TO SUCCESS
The previous section of this document highlights the cur-rent value chain of the pulses sector and its operators. It also reviews the overall positioning of Ethiopian pulses in the global industry and reviews its current performance. The following section discusses the strategic develop-ment and positioning of the sector in order to promote de-velopment and increase the competitiveness of Ethiopian pulses. It tends to answer two major questions – ‘where do we want to go?’ and ‘how do we get there?’.
Through the definition of the sector vision and specific strategic objectives, the roadmap and future value chain set the goals to be achieved over the next five years. The future value chain has been described in detail and dis-cusses the major focus areas and priorities for structural improvements to sector operations, defines market op-portunities and identifies target areas for development.
THE VISIONThe pulses sector has significant potential to make so-cioeconomic contributions to Ethiopia through export-led growth. To realize this potential, competitive constraints and structural deficiencies will have to be addressed and identified opportunities will be leveraged in this Strategy. The following is a delineation of the Strategy’s proposed vision and strategic approach.
All stakeholders of the pulses sector value chain in Ethiopia agreed on the following vision statement.
‘Be a globally competitive exporter of high-quality pulses
through adoption of innovative technologies that support Ethiopian development and increase smallholders’ income.
’
Photo: (CC BY-SA 2.0) Swathi Sridharan, Chickpea seller in Addis Ababa, Ethiopia.
32 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
THE STRATEGIC OBJECTIVESThe PoA responds to this vision by addressing the sec-tor’s constraints and by leveraging opportunities in a com-prehensive manner. To this end, specific efforts will be made along the following strategic directions.
THE FUTURE VALUE CHAIN OF THE SECTORUnlocking the potential of Ethiopia’s pulses sector will require transformations throughout the value chain. The targeted efforts detailed in the PoA of the Strategy will address the constraints identified earlier. The future value chain will be characterized by improved input production, better overall coordination and governance, enhanced forward planning, and increased product and market development.
Figure 20 : Strategic objectives for the Ethiopian pulses sector
• Increase in quantity and improvement in quality of pulses produced in Ethiopia.
• Successfully implement Good Agricultural Practices (GAP) and Good Management Practices (GMP).
Strategic objective 1: Improve sector productivity and quality through enhanced public and private support in research, input distribution, production, processing and export.
• Strengthen capacities to improve competitiveness, leading to improved exports.
• Make quality information freely accessible along the value chain.
Strategic objective 2: Improve export competitiveness by strengthening backward production and planning by responding to market opportunities.
• Ensure stakeholders are strengthened in order to improve value addition.
• Facilitate access to finance.
Strategic objective 3: Strengthen the capacity of sector stakeholders to improve value addition.
Photo: CIAT (CC BY-SA 2.0)
33ON THE PATH TO SUCCESST
HE
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re 2
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34 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024T
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tor a
nd th
e pr
ivat
e se
ctor
, led
by
the
latte
r.
Iden
tify
and
map
regi
ons
with
cro
ps w
ith th
e hi
ghes
t pot
entia
l for
cro
p ro
tatio
n, s
oil
char
acte
ristic
s an
d th
e ty
pe a
nd q
uant
ity o
f fe
rtiliz
ers
and
the
max
imum
am
ount
of p
estic
ides
fo
r sus
tain
able
dev
elop
men
t of t
he s
ecto
r. Al
so
intro
duce
app
ropr
iate
inte
grat
ed p
est m
anag
emen
t re
com
men
datio
ns fo
r diff
eren
t agr
o-ec
olog
ies.
Take
sto
ck o
f exi
stin
g re
gist
ered
var
ietie
s th
at h
ave
not b
een
com
mer
cial
ized
, int
rodu
ce th
em a
nd, i
f re
quire
d, im
port
new
and
impr
oved
var
ietie
s of
pu
lses
for p
rodu
ctio
n as
per
mar
ket r
equi
rem
ents
.
Rev
iew
the
ban
on ra
w p
ulse
exp
orts
by
fore
ign
trade
rs.
Prom
ote
impr
oved
tech
nolo
gies
(var
ietie
s, a
gron
omic
pra
ctic
es, m
achi
nerie
s, in
puts
) and
resp
onsi
ble
use
of
pest
icid
es a
nd fe
rtiliz
ers
by d
evel
opin
g m
odel
dem
onst
ratio
n st
atio
ns fo
r far
mer
trai
ning
.
Esta
blis
h a
trace
abili
ty a
nd c
ertif
icat
ion
syst
em fo
r pul
se p
rodu
cts.
Thi
s w
ill en
able
org
anic
farm
ing
and
expo
rts.
Dev
elop
a m
anua
l with
gui
delin
es o
n fe
rtiliz
er a
nd p
estic
ide
use
in p
ulse
pro
duct
ion
and
post
harv
est h
andl
ing.
Stre
ngth
en fa
rmer
s’ a
ssoc
iatio
ns a
nd a
gro-
deal
ers
to p
lay
a ro
le in
dis
tribu
ting
seed
s, p
estic
ides
, fe
rtiliz
ers
and
othe
r key
inpu
ts re
quire
d fo
r pul
ses
prod
uctio
n.
Impr
ove
the
capa
citie
s of
exi
stin
g so
il te
stin
g la
bora
torie
s an
d se
t up
labo
rato
ries
at th
e re
gion
al le
vel.
Dis
cuss
with
the
Ethi
opia
n C
omm
odity
Ex
chan
ge (E
CX)
the
poss
ibilit
y of
in
crea
sing
the
num
ber o
f pul
se
com
mod
ities
to b
e tra
ded
on it
s pl
atfo
rm.
Des
ign
and
intro
duce
a c
ell p
hone
-bas
ed k
now
ledg
e pl
atfo
rm to
dis
sem
inat
e re
al ti
me
and
up-to
-dat
e in
form
atio
n re
leva
nt to
sta
keho
lder
s, in
clud
ing
a vi
sual
dire
ctor
y of
pul
ses.
Dev
elop
a ‘n
atio
nal b
usin
ess
code
of c
ondu
ct fo
r pul
se e
xpor
ters
’ tha
t will
help
redu
ce th
e im
pact
of
defa
ultin
g lo
cal e
xpor
ters
, inc
reas
e us
e of
con
firm
ed L
ette
rs o
f Cre
dit w
ith ri
sky
mar
kets
, and
in
crea
se c
ompl
ianc
e w
ith m
arke
t req
uire
men
ts, t
rade
agr
eem
ents
and
regu
latio
ns o
f the
impo
rtant
im
porti
ng c
ount
ries.
Dev
elop
the
capa
citie
s of
dip
lom
atic
m
issi
ons,
esp
ecia
lly tr
ade
atta
chés
, to
prom
ote
Ethi
opia
n pu
lses
abr
oad
by
intro
duci
ng tr
aini
ng s
essi
ons
abou
t the
se
ctor
for t
rade
atta
chés
bef
ore
they
are
de
pute
d to
fore
ign
mis
sion
s. A
lso,
en
cour
age
trade
atta
chés
to a
ttend
trad
e fa
irs in
thei
r hos
t cou
ntrie
s an
d sh
are
rele
vant
info
rmat
ion
with
the
indu
stry
th
roug
h th
e Et
hiop
ian
Puls
es, O
ilsee
ds a
nd
Spic
es P
roce
ssor
s-Ex
porte
rs A
ssoc
iatio
n (E
POSP
EA).
Enco
urag
e in
vest
ors
to e
ngag
e in
pro
cess
ing
and
othe
r val
ue a
dditi
on a
ctiv
ities
with
join
t ve
ntur
e in
itiat
ives
.
Esta
blis
h a
fund
ing
and
cred
it gu
aran
tee
plan
for p
rodu
cers
, pro
cess
ors
and
expo
rters
invo
lvin
g co
mm
erci
al
bank
s, m
icro
finan
ce in
stitu
tions
and
don
ors.
The
gua
rant
ee w
ould
be
prov
ided
aga
inst
a c
ombi
natio
n of
fa
ctor
s, in
clud
ing
the
‘exp
ecte
d’ re
turn
on
capi
tal.
35OPPORTUNITIES FOR THE ETHIOPIAN PULSES INDUSTRY
OPPORTUNITIES FOR THE ETHIOPIAN PULSES INDUSTRY
The future value chain of the pulses sector is driven by its market development objectives, which effectively drive value chain enhancement and highlight focus areas for investment. There is great potential for pulses sector growth, expansion of existing products, development of new products and timely entry into new markets.
MARKET PERSPECTIVEBased on global trends in the growing pulses sector, it is suggested that Ethiopia set the following priorities, with short-, medium- and long-term goals. Short-term is de-fined as immediately to one year, medium-term is one to three years and long-term is beyond three years.
SHORT-TERM GOALS
CONTINUE CONCENTRATING ON SOUTH ASIA FOR TRADE AND INVESTMENTS
South Asia is the largest producer and consumer of puls-es in the world. Among the six countries ( India, Pakistan, Canada, Myanmar, Australia and the United States ) that dominate global production, there are only two net im-porters : India and Pakistan. India is both the largest pro-ducer and importer, accounting for 26 % of the global import market. Pakistan is the second-largest produc-er and seventh-largest importer, accounting for 3.5 % of the global import market. With high consumer demand and expertise in the production and marketing of pulses, India and Pakistan are the two most likely sources of FDI in the pulses sector. As such, South Asian investors are under competitive pressure to cut out middlemen and directly source their inputs. These investors present very immediate opportunities for investment generation in the pulses sector and could be targeted for investment pro-motion, backed by sector-strengthening public policies to increase Ethiopia’s competitiveness with alternatives like the United Republic of Tanzania and Myanmar.
PROMOTE COOPERATION WITH OVERSEAS PULSE ORGANIZATIONS TO LEARN BEST PRACTICES AND DEVELOP PARTNERSHIPS
Foster cooperation with overseas pulse organizations ( India Pulses and Grain Association, Saskatchewan Pulse Growers, the East African Grain Council, etc. ) to learn best practices and develop partnerships. Inter-agency coop-eration will also help identify the challenges and weak-nesses of the pulses sector ; and allow stakeholders to propose concrete strategies to overcome the demand and supply mismatch and put forward specific interven-tions for existing, pipeline and potential programming in Ethiopia. This will result in developing monitoring and evaluation frameworks for the pulses sector to assess the performance of the interventions.
INTRODUCE A ‘NATIONAL BUSINESS CODE OF CONDUCT’ FOR PULSE EXPORTERS
Develop a ‘national business code of conduct’ for pulse exporters that will help reduce the impact of defaulting lo-cal exporters, increase use of confirmed Letters of Credit with risky markets, and increase compliance with market requirements, trade agreements and regulations of impor-tant importing countries. The code of conduct will be built on extensive research from various studies and consulta-tions. This will serve as the fundamental mandate for trade partners and facilitate smoother operational workflow.
MEDIUM-TERM GOALS
MOVE TOWARDS VALUE ADDED PRODUCTS
The move towards gluten-free diets is promoting the use of pulses. The last few years have seen important changes in dietary patterns that affect pulses. For exam-ple, greater awareness of coeliac disease and gluten sen-sitivity has increased demand for gluten-free products.34
34. Gluten is comprised of proteins ( e.g. gliadin, glutenin ) predominantly found in cereal grains such as wheat, rye and barley.
36 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
A variety of gluten-free grains, flours and starches can be substituted for wheat, rye and barley in product formula-tions. However, replacing grains with gluten-free alterna-tives in food products is not easy. Pulses – such as yellow peas, lentils and chickpeas – are already gaining recog-nition as the ‘new and improved’ heart of healthy foods. The high-quality protein in pea, lentil and chickpea flour makes for a perfect amino acid offering when blended with other gluten-free grains such as rice flour. What is more, these pulses deliver quantity as well as quality. Dry pea, lentil and chickpea flours contain 22–25 % protein, are high in lysine and are listed as both a vegetable and protein. This is pushing the demand for pulses from non-traditional consuming countries.
Pulses are increasingly being used for products like noo-dles, pasta, chips and as ingredients in other processed foods as an alternative to animal protein. The rise of the middle class in non-traditional markets like Africa and Asia, followed by the rise in supermarket culture, has led to increased demand for processed foods. The types of pulses that are increasingly being used by the processing industry overseas are chickpeas and dry peas. These are precisely the varieties that are grown in Ethiopia. Keeping this in mind, it may be plausible to consider value addi-tion of pulse products to address the growing demand for gluten-free products.
INCENTIVIZE INVESTMENTS
Improve the FDI capacity of the sector by incentivizing new investors and retain existing ones by developing an investment profile for Ethiopia’s pulses sector along with promotional materials to share through trade attachés overseas, and organizing business-to-business missions
and online publications. This will facilitate mutual bilateral and multilateral trade relations and promote investment. Efficient investment servicing at home – such as licensing and aftercare services targeting both home and foreign investors – will attract investments in the pulses sector. Aftercare services involving investment support and fol-low-up services at the request of investors will aid in gar-nering a positive response.
LONG-TERM GOALS
ESTABLISH A TRACEABILITY AND CERTIFICATION SYSTEM FOR PULSE PRODUCTS. THIS WILL ENABLE ORGANIC FARMING.
In the long run, it is important to support implementa-tion of traceability and compliance with fair trade and organic standards because organic pulses are anoth-er strongly expanding segment, especially in the South Asian, European, Middle Eastern and Asia–Pacific mar-kets, where there is a growing consumer preference for certified organic and fair trade pulses.
With Ethiopia’s natural endowments such as soil and cli-matic conditions and an available infrastructure for the growth and production of pulses, the country is well-po-sitioned to benefit from these rapidly changing global trends and to cater to these demands. Although process-ing is an option in the short-to-medium term given the low costs to process pulses in Ethiopia, processing for products like pasta and chips may take more time. Box 3 illustrates the product and market opportunities available to the sector.
Box 3 : Ethiopia’s product and market opportunities
Existing pulses New pulses
Existing markets
Deepen the marketHaricot beans, pea beans, horse beans, chickpeas and lentils – Gulf states ( Saudi Arabia, Yemen, Israel ), European Union, Asian countries ( mainly Pakistan ) and neighbouring African countries.
Product development• Processed pulses to regional markets, the
United States and the United Kingdom.• Processed pulse flours to the United Arab
Emirates and the European Union.
New markets
Market developmentMung beans and lentils to India.
Diversification• Pigeon peas to India.• New varieties of chickpeas to India,
Pakistan and the United Arab Emirates.
37OPPORTUNITIES FOR THE ETHIOPIAN PULSES INDUSTRY
VALUE OPTIONS
INTRODUCE A CELL PHONE-BASED KNOWLEDGE PLATFORM
Design and introduce a cell phone-based knowledge platform to disseminate real-time and up-to-date infor-mation relevant to pulses value chain stakeholders, in-cluding a visual directory of pulses. This platform will help harness the vast potential of ICT in the pulses sector, in particular to help smallholders, who can gain access to technical information and expand their knowledge base with respect to production techniques and value addition practices. Additionally, improve capacities of existing soil testing laboratories and set up laboratories at the regional level by sharing information sources on the cell phone-based knowledge platform.
ESTABLISH MODEL DEMONSTRATION STATIONS TO EDUCATE FARMERS
Promote improved technologies ( varieties, agronomic practices, machineries, inputs ) and responsible use of pesticides and fertilizers by developing model demon-stration stations to educate farmers. This will enhance capacities for learning and innovation at different levels – individual, organizational and systems – which will allow smallholders and small institutions to realize their exist-ing potential, helping them adapt and respond to dynam-ic challenges and opportunities to develop the pulses industry.
The primary goal of this exercise will be to train local farm-ers, governmental extension workers and model farmers to produce fertilizer from local resources to restore soil fer-tility and improve the nutrient supply to and of their crops. The training will illustrate how to make use of available technologies to upgrade the quality of their produce. This will also open the door for more discussions and allow trainers to gather more information about the real chal-lenges faced by smallholders. A secondary objective is to gain general information about other agronomic ( soil, water, climate and plant ) and socioeconomic factors that limit pulse production.
TAKE STOCK OF EXISTING VARIETIES AND IMPORT NEW IMPROVED VARIETIES
Take stock of existing registered varieties that have not been commercialized, introduce them and, if required, im-port new and improved varieties of pulses for production as per market requirements. Diversification and promo-tion of different varieties of pulses will improve the quality
of the beans, providing farmers with a comparative ad-vantage. Furthermore, this will expose smallholders to numerous channels of trade and place them in a better bargaining position.
MAP REGIONS WITH CROPS FOR IMPROVED YIELD
Identify and map : regions with crops with the highest po-tential for crop rotation ; soil characteristics ; the type and quantity of fertilizers ; and the maximum amount of pes-ticides for sustainable development of the sector. Also introduce appropriate integrated pest management rec-ommendations for different agro-ecologies. Carry out a detailed study of the distribution of pulse-growing areas in Ethiopia to identify the major needs of each region. Supply them with adequate resources and develop best practices to ensure the productivity of the land meets its potential.
DEVELOP A FERTILIZER AND PESTICIDE USAGE MANUAL
Develop a manual with guidelines on fertilizer and pesti-cide use in pulse production, postharvest handling and quality assurance for effective service delivery. This will serve as the fundamental guiding principle for farmers. These technical advisory guidelines will be tailored for different social categories of farmers, including small-holders, using specific technical domains and innovative solutions to maximize the use of fertilizers.
INTRODUCE FUNDING AND CREDIT GUARANTEE PLANS IN EXISTING INSTITUTIONS
Establish a funding and credit guarantee plan involving commercial banks, microfinance institutions and donors that would be provided against a combination of factors including the ‘expected’ return on capital. This does not mean establishing new institutions, but rather existing in-stitutions creating products that can lead to a reduction in the information gap between borrowers and lenders.
38 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
INSTITUTIONAL ADJUSTMENTSThe development of the pulses sector depends signifi-cantly on the functions and roles of trade and investment support institutions and overall inter-institutional coordi-nation. These institutions are divided into four main cat-egories : policy support, trade support, business support, and academia and civil society. They are the drivers for future pulses sector growth but capacity and resource issues must be addressed to ensure their effective sup-port for the sector.
Box 4 : Support institutions in Ethiopia for the pulses sector
Policy support • MoANR• Bureau of Agriculture ( BoA )• ATA• Ministry of Trade ( MoT )• Ministry of Finance and Economic Cooperation ( MoFEC )• Ministry of Women and Children Affairs• Ministry of Environment, Forest and Climate Change
Trade support • ECX• Ethiopian Revenue and Customs Authority
Business support • Federal Cooperative Agency ( FCA )• Ethiopian Seed Enterprise• Ethiopian Investment Commission ( EIC )• Development Bank of Ethiopia• ENAO• EPOSPEA• Ethiopian Chamber of Commerce and Sectoral Associations ( ECCSA )
Academia, research and civil society
• EIAR• Regional Agricultural Research Institutes ( RARIs )• State universities• Federal Technical and Vocational Education and Training ( TVET ) Agency• Melinda and Bill Gates Foundation ( Tropical Legumes III project on
chickpeas )• International Crops Research Institute for the Semi-Arid Tropics ( for
pigeon peas )
Photo: Image by kamilla02 from Pixabay.
39OPPORTUNITIES FOR THE ETHIOPIAN PULSES INDUSTRY
ESTABLISH A ‘NATIONAL PULSES NETWORK’
Establish a public and private sector ‘national pulses net-work’ to act as the focal point for the sector. The main function of the network will be to represent the interests of the sector and to coordinate the efforts of all the stake-holders in the value chain. The network should monitor and document the outcomes of certification and oth-er mechanisms introduced by national stakeholders to gauge the effects of such interventions on production quantity and the quality of the yield.
STRENGTHEN COORDINATION BETWEEN RESEARCH SYSTEMS AND STAKEHOLDERS FOR THE INTRODUCTION OF NEW TECHNOLOGIES
Strengthen coordination among the research system and concerned stakeholders by organizing a twice-year-ly meeting ( input suppliers and processors ) to ensure the availability of required seeds and other input materials.
STRENGTHEN FARMERS’ ASSOCIATIONS AND AGRO-DEALERS TO EXPAND DISTRIBUTION NETWORKS
Strengthening farmers’ associations and agro-dealers to play a role in distributing seeds, pesticides, fertilizers and other key inputs required for pulses production. To materialize this goal, both awareness-raising on the im-portance of groups and capacity-building training to plug critical knowledge gaps on topics such as group forma-tion, group dynamics, business plan development, partic-ipatory approaches, leadership and conflict management are essential.
Existing groups need to be strengthened by building the capacity of group leaders and members, continu-ous follow-up and technical support, and linking groups to research and extension services. If the capacity of groups is strengthened, it will have an impact on the live-lihood of individual members and their families through them being able to access better extension services and technologies, and harnessing joint learning. Moreover, creating sustainable and financially viable farmer-based groups can build the decision-making capacity of farm-ers and spread information more widely through en-hanced participation, peer-to-peer learning and social networking.
INCREASE THE EFFICIENCY OF THE VALUE CHAIN THROUGH CONTRACT FARMING
Increasing integration between value chain actors via contract farming helps with quality control and produc-tion traceability. It also assures a seamless, real-time flow of information, technology, knowledge and experi-ence across the value chain. Contract farming practices in Ethiopia at present are not adequately evolved and have no appropriate legal framework. Small and marginal farmers can be brought into the fold to increase both the production base and quality assurance. The authorities may want to introduce a mechanism to assure fair deals for all stakeholders.
DISCUSS WITH ECX THE POSSIBILITY OF INCREASING THE NUMBER OF PULSE COMMODITIES TO BE TRADED ON ITS PLATFORM.
ECX potentially includes pulses under its trading umbrella. If it takes on more pulses ( besides haricot beans ), this will multiply opportunities for Ethiopia to represent itself in the international export market and increase the sales revenue of the Government.
IMPROVE THE CAPACITIES OF EXISTING SOIL TESTING LABORATORIES AND SET UP LABORATORIES AT THE REGIONAL LEVEL.
Strengthening the technical know-how and skills of the authorities and providing information on the latest equip-ment can facilitate the process of quality checks, ensur-ing the final produce is of the desired quality and meets international standards.
DEVELOP THE CAPACITIES OF DIPLOMATIC MISSIONS TO PROMOTE ETHIOPIAN PULSES
The capacities and knowledge base of diplomatic mis-sions, especially trade attachés, to promote Ethiopian pulses abroad will be enhanced by introducing training sessions on the pulses sector for trade attachés before they are deputed to foreign missions. Also, trade atta-chés will be encouraged to attend trade fairs in their host countries and share relevant information with the industry through EPOSPEA.
40 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
REGULATORY AMENDMENTSEthiopia presents several obstacles to investors which competing locations do not, and which seriously threaten to neutralize its advantages. These include a ban on raw pulse exports by foreign traders, high-profile and contro-versial failures of large-scale pulse farming projects by Indian investors, and the difficulty experienced by South Asian buyers in obtaining the short-term visas needed to inspect pulse shipments prior to purchase and shipment.
The Ethiopian ban on raw pulse exports by foreign trad-ers is a major impediment to the sector’s attraction of FDI and its market-organizing, efficiency-promoting benefits, such as contract farming arrangements and connectivity to export markets. An investor might choose to enter the market further downstream but a company venturing into unfamiliar territory for the first time is unlikely to risk skip-ping the earlier steps in that evolutionary path in favour of more sophisticated, more capital-intensive steps, espe-cially where competitors have not already demonstrated the possibility of success. This added risk and the higher level of industrialization in a competitor such as Kenya makes Ethiopia relatively uncompetitive in attracting FDI in pulse processing.
The activities of a company successfully investing in a foreign country tend to follow a typical evolutionary path, depending on the product and sector. For a commodity such as pulses, one might expect to see foreign investors first establishing buying offices to procure and export of raw supply, then investing in basic processing, then in increasingly diverse product lines and value added pro-cessing. This allows investors to secure supply of inputs, learn the particularities of doing business in a new loca-tion and establish marketing channels before committing larger amounts of capital.
FDI would both follow these improvements and play a role in achieving them. For example, a few early successes
in attracting contract farmers or foreign development of seeds would make it easier for other investors to follow. In this way, FDI is both a means and an objective of sec-tor development.
INVESTMENT REQUIREMENTSThe following investments in the value chain are seen as key to achieving a positive outcome for the pulses sector.
ENCOURAGE INVESTORS TO ENGAGE IN PROCESSING AND OTHER VALUE ADDITION ACTIVITIES WITH JOINT VENTURE INITIATIVES
Encourage domestic and foreign investors to invest in quality control services and storage facilities so as to meet the quality standards established by the Government.
PRIVATE SECTOR TO ENGAGE IN AGRIBUSINESS SERVICES
Encourage the private sector to engage in agribusiness services such as rental of pre-harvest and postharvest equipment, distribution, storage management, testing services, etc. Investment from overseas should be en-couraged for such service provision
Table 5 presents the value chain segments where FDI is both needed and viable, along with leading sources of such FDI and competing locations in the region where investors are active. Where a company is already present in Ethiopia, it may not yet be active in the product lines of most benefit to the pulses sector ( e.g. seed pulses, pulse-specific herbicides, pulse cultivation machinery, pulse processing technology ).
Photo: by PublicDomainPictures from Pixabay.Photo: Image by Rudy and Peter Skitterians from Pixabay.
41OPPORTUNITIES FOR THE ETHIOPIAN PULSES INDUSTRY
Table 5 : Value chain segments needing FDI and likely sources
Value chain segments where FDI is needed and viable
Leading companies with foreign affiliates in Eastern and Southern Africa
Source country
Eastern and Southern African countries with an existing affiliate
Seeds, fertilizers, and pesticides –sales, distribution, manufacturing, and research and development
BASF Germany South Africa
Bayer Crop Science Germany Mozambique, South Africa, Sudan, Zambia, Zimbabwe
Dow Agrosciences United States South Africa
Dupont ( Pioneer ) United States Ethiopia, Kenya, South Africa, United Republic of Tanzania, Zambia, Zimbabwe
KWS ( seeds ) Germany Kenya, South Africa, Sudan
Monsanto United States Kenya, Malawi, South Africa, Zimbabwe
Syngenta Switzerland Ethiopia, Kenya, Mozambique, South Africa, Sudan, United Republic of Tanzania, Zambia, Zimbabwe
Farm machinery and equipment –sales, distribution, manufacturing, operation, maintenance and repair
AGCO United States None
CLAAS Germany None
CNH Netherlands South Africa
John Deere United States South Africa
Kubota Japan Kenya, Madagascar, Mozambique, South Africa, United Republic of Tanzania, Uganda
SAME Deutz-Fahr Italy None
Animal feed – manufacturing and research and development
Brasil Foods Brazil None
Cargill United States Kenya, Mozambique, South Africa, Zambia, Zimbabwe
Charoen Pokphand Thailand None
New Hope Group China None
Tyson Foods United States None
Vertically integrated trading, including warehousing, transportation, and risk management ( as well as agricultural consulting and manufacturing of biofuels and animal feed in some cases )
Archer Daniels Midland United States None
Bunge United States Kenya, South Africa
Cargill United States Kenya, Mozambique, South Africa, Zambia, Zimbabwe
Louis Dreyfus Commodities Netherlands Kenya, South Africa
Interested in procurement, trading and warehousing2
Mahindra & Mahindra India Kenya
Patanjali India None
Adani India None
Quality testing and certification Cotecna Switzerland South Africa
Intertek United Kingdom Djibouti, Kenya, Mozambique, South Africa, United Republic of Tanzania, Uganda
NSF United States South Africa
SCS United States None ( only Ghana in Africa )
SGS Switzerland Burundi, Djibouti, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Mozambique, South Africa, United Republic of Tanzania, Uganda, Zambia, Zimbabwe
Sources : Shand, Hope ( 2012 ) ; Noealt Corporate Services ( 2013 ) ; Peter Best and Ken Jennison ( 2012 ) ; Murphy, S., Burch, D. and Clapp, J. ( 2012 ) ; and company websites.
42 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
Furthermore, most of the companies already have pres-ences in the region. Future investment projects in Ethiopia might originate with headquarters or with these regional affiliates. For the companies with no presence in Ethiopia, a first venture would likely take the form of a sales of-fice. Although this does not create the jobs, technology spillovers or skill spillovers of a manufacturing project, for example, the possibility of a sales office should not be
dismissed by investment promoters as being of low value. A first sales office is an opportunity for a foreign com-pany to make tentative entry into a new market, learning the business landscape and achieving a level of comfort. Of more immediate importance, it can provide Ethiopia’s pulses sector with valuable access to more afforda-ble, high-quality inputs that are essential to strengthen the sector.
MOVING TO ACTION – IMPLEMENTATION FRAMEWORK
Figure 22 : Strategic objectives
43OPPORTUNITIES FOR THE ETHIOPIAN PULSES INDUSTRY
The strategic objectives delineated for the pulses sec-tor define the main thrusts that will guide the Strategy’s implementation to achieve the vision laid out by the industry. In order to be able to build the future value chain, a structured five-year defined Strategy must be followed through a consultative process between pub-lic and private sector stakeholders. Achieving the fu-ture value chain of the pulses sector depends heavily on the ability of sector stakeholders to implement the activities defined in this Strategy. The PoA flows from the operational objectives that respond to the vision by addressing the sector’s constraints and by leveraging opportunities in a comprehensive manner. To this end, specific efforts will be made along the following strate-gic directions ( see figure 22 ) :
� Improve the production and productivity of Ethiopia’s pulses sector by ensuring quality control in accordance with global standards.
� Led by industry stakeholders, integrate and simplify the policies and governance framework relating to pulses while at the same time strengthening coordination be-tween stakeholders.
� Establish the ‘national pulses network’ to act as the fo-cal point for the sector. The main function of the network will be to represent the interests of the sector, coordi-nate the efforts of all stakeholders in the value chain and maintain a healthy public–private dialogue.
� Build collaboration with national and international tech-nical and financial partners to support implementation of the Strategy.
� Strengthen the ability of key national institutions to attract national and international investment to the value chain.
These actions aim to enable the implementation of the Strategy’s PoA in a coordinated and transparent manner.
MANAGING FOR RESULTS
It is the actual translation of priorities into implementable projects that will contribute to achieving the substantial increase in export earnings and export competitiveness envisaged under this Strategy. These will be driven by re-forming the regulatory framework, optimizing institutional support to exporters and strengthening private sector ca-pacities to respond to market opportunities and challeng-es. Allocation of human, financial and technical resources is required to efficiently coordinate, implement and moni-tor overall implementation.
Success in executing activities will depend on stakehold-ers’ abilities to plan and coordinate actions in a tactical manner. Diverse activities must be synchronized across public and private sector institutions to create sustainable results, and it is important to foster an enabling environ-ment and create an appropriate framework for Strategy implementation.
Key to achieving the targets will be coordinating activities, monitoring progress and mobilizing resources for imple-mentation. Industry representatives recommended that a public-private advisory committee for the pulses sector be rapidly established, operationalized and empowered. The ‘national pulses network’ would be responsible for overall coordination, provision of policy guidance and monitoring of industry development in relation to the Strategy.
Figure 23 : Institutional framework for Ethiopian pulses sector development
44 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
The development of the future value chain for the pulses sector is a five-year project defined through a consulta-tive process between public and private sector stake-holders in the country. Achieving the future value chain of the pulses sector depends heavily on the ability of sector stakeholders to implement the activities defined in the Strategy. Pulses being a growing sector, a large share of value chain development will fall under the responsibil-ity of the private sector as key drivers and beneficiaries. By enabling and supporting private sector operators to develop the sector, policymakers will be able to contribute to overall national development goals.
MANAGING STRATEGY IMPLEMENTATIONThe public and private sector stakeholders who led the development of this sector Strategy propose setting up a ‘national pulses network’ as the key driving force behind implementation of the Strategy. The creation of this net-work aims to bring together key industry representatives with Government representatives to discuss matters of common interest for the development of the pulses sec-tor in Ethiopia. It also aims to enhance national competi-tiveness and the profitability of the pulses sector, as well
as providing a unique forum for the private sector and Government. The overarching objective of the network is to encourage the private sector and Government to identify priority issues and to foster collaborative private sector and Government action to secure enduring mar-ket performance.
It is anticipated that the ‘national pulses network’ will have the following mandate.
� Create a shared understanding of key market chal-lenges and opportunities facing the sector ;
� Set goals and targets that, if achieved, will strength-en the sector’s competitive position and enhance Ethiopia’s overall capacity to meet the changing de-mands of markets ;
� Propose key policy changes to be undertaken and promote these policy changes among national deci-sion makers ;
� Support the coordination, implementation and moni-toring of activities in the sector by the Government, private sector, institutions or international organizations to ensure alignment to goals and targets ;
� As required, contribute to resource identification and alignment.
Photo: ICRISAT, Livestock graze on chickpea stalks in dryland Ethiopia.
ETHIOPIA
By OCHA, CC BY 3.0
ETHIOPIA NATIONAL PULSES STRATEGY 2019-2024
PLAN OF ACTION FOR 2019-2023
To achieve the vision and strategic objectives that have been discussed, a robust, actionable and realistic strate-gic PoA is required. This is provided in the section below, and effectively constitutes the heart of this Strategy.
46 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024St
rate
gic
obje
ctiv
eO
pera
tiona
l ob
ject
ive
Activ
ities
Prio
rity
Star
t dat
eEn
d da
teTa
rget
sLe
ad
impl
emen
tatio
n pa
rtne
r
Supp
ortin
g im
plem
enta
tion
part
ners
Estim
ated
co
sts
( US $
)
1. Im
prov
e se
ctor
pr
oduc
tivity
and
qu
ality
thro
ugh
enha
nced
pub
lic
and
priv
ate
supp
ort i
n re
sear
ch, i
nput
di
strib
utio
n,
prod
uctio
n,
proc
essi
ng a
nd
expo
rt.
1.1
Cond
uct r
esea
rch
driv
en b
y m
arke
t de
man
d to
impr
ove
sect
or p
erfo
rman
ce
and
in li
ne w
ith th
e se
cond
Gro
wth
and
Tr
ansf
orm
atio
n Pl
an o
f Et
hiop
ia.
1.1.
1. S
treng
then
coo
rdin
atio
n am
ong
the
rese
arch
sys
tem
and
con
cern
ed s
take
hold
ers
( see
d pr
oduc
ers,
see
d us
ers,
see
d in
spec
tors
, in
put s
uppl
iers
, pro
cess
ors
and
expo
rters
) th
roug
h or
gani
zatio
n of
twic
e-ye
arly
mee
tings
( li
nk to
sec
tor c
oord
inat
ion )
, to
ensu
re th
e av
aila
bilit
y of
requ
ired
seed
s.
11/
1/20
1931
/12/
2023
»A
min
imum
of t
wo c
onsu
ltativ
e m
eetin
gs e
very
yea
r bet
ween
st
akeh
olde
rs
»M
oANR
»EI
AR »Bo
A »RA
RIs
»FC
A
70,0
00
1.1.
2 St
reng
then
cap
acity
for p
ulse
see
d re
sear
ch a
nd m
ultip
licat
ion
( bre
edin
g,
agro
nom
y, m
echa
niza
tion,
see
d m
ultip
licat
ion )
. »Hu
man
cap
acity
-bui
ldin
g th
roug
h sh
ort-
term
and
long
-ter
m tr
aini
ng, a
nd e
xper
ienc
e-sh
arin
g. »St
reng
then
par
tner
ship
s wi
th in
tern
atio
nal
rese
arch
inst
itute
s to
iden
tify
varie
ties
and
tech
nolo
gies
alig
ned
to th
e ne
eds
of E
thio
pia.
»De
velo
p de
man
d-dr
iven
sta
ble
varie
ties
that
co
mbi
ne h
igh
yiel
ds a
nd re
sist
ance
to b
iotic
an
d ab
iotic
stre
ss.
»Im
port
new
varie
ties
/ pul
se c
rops
as
per
mar
ket r
equi
rem
ents
.
21/
1/20
2031
/12/
2023
»Tw
o sh
ort-
term
trai
ning
ses
sion
s wi
th e
xper
ienc
e-sh
arin
g ev
ery
year
»Tw
o lo
ng-t
erm
trai
ning
ses
sion
s on
bre
edin
g, a
gron
omy,
seed
m
ultip
licat
ion
and
mec
hani
zatio
n du
ring
the
entir
e pr
ojec
t per
iod
»Fo
rge
partn
ersh
ips
with
a m
inim
um
of th
ree
inte
rnat
iona
l res
earc
h in
stitu
tes
in th
e pr
ojec
t ter
m, w
ith
train
ing
visi
ts in
clud
ed in
the
unde
rsta
ndin
g wi
th th
e in
stitu
tions
»M
inim
um o
f at l
east
one
new
var
iety
of
eac
h pu
lse
type
impo
rted
in th
e pr
ojec
t per
iod
»M
oANR
»EI
AR »Bo
A »RA
RIs
»Na
tiona
l Ag
ricul
tura
l Re
sear
ch
Coun
cil
500,
000
1.1.
3 Co
nduc
t res
earc
h an
d de
velo
p ag
rono
mic
re
com
men
datio
ns fo
r the
se to
pics
: »M
atch
ing
regi
ons
and
crop
s wi
th th
e hi
ghes
t po
tent
ial f
or c
rop
rota
tion,
incl
udin
g pe
st
man
agem
ent r
ecom
men
datio
ns fo
r diff
eren
t ag
ro-e
colo
gies
. »So
il ch
arac
teris
tics
and
the
type
and
qua
ntity
of
ferti
lizer
s an
d th
e m
axim
um a
mou
nt o
f pe
stic
ides
for s
usta
inab
le d
evel
opm
ent o
f the
se
ctor
.
101
/1/2
019
31/1
2/20
19 »Na
tiona
l map
of c
rop
mat
chin
g wi
th re
gion
s fo
r cro
p ro
tatio
n,
agro
-clim
atic
con
ditio
ns fo
r pul
se
prod
uctio
n ex
pans
ion
and
inte
grat
ed
pest
man
agem
ent r
ecom
men
datio
ns »Li
st o
f non
-com
mer
cial
ized
puls
e va
rietie
s av
aila
ble
in E
thio
pia
»On
e ne
w st
able
var
iety
for e
ach
puls
e ty
pe th
at is
hig
h-yi
eldi
ng
and
resi
stan
t to
biot
ic a
nd a
biot
ic
stre
sses
»EI
AR »M
oANR
»AT
A »Et
hiop
ian
Map
ping
Ag
ency
»Na
tiona
l Ag
ricul
tura
l Re
sear
ch
Coun
cil
»RA
RIs
750,
000
1.2.
Ena
ble
puls
e fa
rmer
s to
acc
ess
affo
rdab
le a
nd h
igh-
qual
ity in
puts
to
incr
ease
yie
lds
and
the
qual
ity o
f pr
oduc
tion.
1.2.
1. E
ncou
rage
regi
onal
and
nat
iona
l see
d en
terp
rises
to :
»Pr
oduc
e ba
sic
seed
s of
pul
ses,
ope
ratin
g un
der a
sys
tem
of m
inim
um q
uota
s –
supp
orte
d by
per
form
ance
-bas
ed c
ontra
cts
– fo
r eac
h pr
iorit
y pu
lses
var
iety
. »Ex
pand
dire
ct s
eed
mar
ketin
g an
d di
rect
in
ocul
ant m
arke
ting.
At th
e sa
me
time,
stre
ngth
en /
deve
lop
a co
mm
unity
-bas
ed s
eed
mul
tiplic
atio
n m
odel
.
101
/01/
2019
31/1
2/20
22 »In
crea
se in
the
prod
uctio
n of
qua
lity
puls
e se
eds
thro
ugh
partn
ersh
ips
with
see
d m
ultip
liers
, with
min
imum
qu
otas
»Id
entif
icat
ion
of a
t lea
st o
ne m
odel
se
ed p
rodu
cer i
n ea
ch d
istri
ct »Do
uble
the
exis
ting
seed
and
in
ocul
ant s
prea
d ye
ar o
n ye
ar
»Et
hiop
ian
Seed
En
terp
rise
»M
oANR
»AT
A »FC
A
100,
000
1.2.
2. E
ncou
rage
bio
ferti
lizer
pro
duce
rs, b
y gu
idin
g th
em to
exp
and
thei
r dis
tribu
tion
netw
ork,
to p
rodu
ce m
ore
inoc
ulan
ts a
nd e
nsur
e ex
tend
ed d
istri
butio
n.
101
/01/
2019
31/1
2/20
22 »In
crea
se in
the
prod
uctio
n of
in
ocul
ants
with
wid
er d
istri
butio
n »M
oANR
»AT
A20
,000
47PLAN OF ACTION FOR 2019-2023St
rate
gic
obje
ctiv
eO
pera
tiona
l ob
ject
ive
Activ
ities
Prio
rity
Star
t dat
eEn
d da
teTa
rget
sLe
ad
impl
emen
tatio
n pa
rtne
r
Supp
ortin
g im
plem
enta
tion
part
ners
Estim
ated
co
sts
( US $
)
1. Im
prov
e se
ctor
pr
oduc
tivity
and
qu
ality
thro
ugh
enha
nced
pub
lic
and
priv
ate
supp
ort i
n re
sear
ch, i
nput
di
strib
utio
n,
prod
uctio
n,
proc
essi
ng a
nd
expo
rt.
1.2.
Ena
ble
puls
e fa
rmer
s to
acc
ess
affo
rdab
le a
nd h
igh-
qual
ity in
puts
to
incr
ease
yie
lds
and
the
qual
ity o
f pr
oduc
tion.
1.2.
3 Bu
ild b
oth
capa
citie
s of
farm
ers’
as
soci
atio
ns a
nd a
gro-
deal
ers’
role
in
dist
ribut
ing
seed
s, p
estic
ides
, fer
tilize
rs a
nd
othe
r key
inpu
ts re
quire
d fo
r pul
se p
rodu
ctio
n.
101
/01/
2019
31/1
2/20
22 »A
35 %
incr
ease
in d
istri
butio
n of
agr
o co
mm
oditi
es fo
r pul
se
prod
uctio
n
»M
oANR
»AT
A »FC
A45
,000
1.2.
4 Im
prov
e th
e ca
paci
ties
of e
xist
ing
soil
test
ing
labo
rato
ries
and
set u
p la
bora
torie
s at
th
e re
gion
al le
vel.
201
/06/
2019
31/1
2/20
21 »En
sure
all
empl
oyee
s of
exi
stin
g so
il te
stin
g la
bora
torie
s ar
e tra
ined
as
per
glob
al s
tand
ards
in s
oil t
estin
g »Se
t up
at le
ast o
ne s
oil t
estin
g la
bora
tory
in e
ach
zone
( rur
al ) t
hat
prod
uces
pul
ses
»EI
AR »M
oANR
»AT
A25
,000
1.2.
5 En
cour
age
the
priv
ate
sect
or, t
hrou
gh
indi
rect
ince
ntiv
es, t
o en
gage
in a
grib
usin
ess
serv
ices
suc
h as
rent
al o
f pre
-har
vest
and
po
stha
rves
t equ
ipm
ent,
dist
ribut
ion,
sto
rage
m
anag
emen
t, te
stin
g se
rvic
es, e
tc.
201
/01/
2019
31/1
2/20
22 »Fo
ur p
rivat
e se
ctor
agr
ibus
ines
s se
rvic
e pr
ovid
ers,
of w
hich
at l
east
on
e is
a fo
reig
n in
vest
or
»AT
A »M
oANR
»EI
C »M
oFEC
35,0
00
1.3
Enha
nce
sect
or
prod
uctiv
ity,
know
ledg
e an
d ad
optio
n of
pro
ven
puls
e te
chno
logi
es.
1.3.
1. B
uild
cap
aciti
es a
t BoA
and
Rur
al B
oA
leve
ls to
pro
vide
sho
rt-te
rm w
eath
er fo
reca
st
and
advi
sory
ser
vice
s.
201
/01/
2019
31/1
2/20
20 »Al
l tec
hnic
al e
mpl
oyee
s of
BoA
an
d Ru
ral B
oAs
train
ed in
wea
ther
fo
reca
stin
g
»AT
A »M
oANR
»Bo
A35
,000
1.3.
2. P
rom
ote
prod
uctio
n of
gre
en m
ung
bean
s an
d pi
geon
pea
s in
non
-tra
ditio
nal a
reas
with
th
e po
tent
ial t
o gr
ow th
ese
crop
s.
101
/01/
2019
31/1
2/20
19 »A
35 %
incr
ease
in p
rodu
ctio
n of
gr
een
mun
g be
ans
and
pige
on p
eas
due
to c
ultiv
atio
n in
non
-tra
ditio
nal
area
s
»M
oANR
»AT
A »FC
A20
,000
1.3.
3. D
emon
stra
tion
or m
odel
farm
s ( f
arm
er fi
eld
scho
ols )
for f
arm
ers
shou
ld b
e es
tabl
ishe
d by
the
priv
ate
sect
or a
long
side
the
Gove
rnm
ent,
in a
pub
lic–p
rivat
e pa
rtner
ship
m
ode,
to u
nder
stan
d th
e be
nefit
s of
impr
oved
te
chno
logi
es, p
re-h
arve
st a
nd p
osth
arve
st
hand
ling
man
agem
ent,
and
optim
um u
se o
f pe
stic
ides
and
ferti
lizer
s.Th
ese
dem
onst
ratio
n fa
rms
shou
ld s
howc
ase
appr
opria
te fa
rm m
echa
niza
tion
tech
nolo
gies
( r
aw p
lant
ers,
com
bine
har
vest
ers
and
thre
sher
s ) in
prio
rity
puls
e pr
oduc
tion
zone
s.
201
/01/
2019
31/1
2/20
23 »A
min
imum
of t
wo d
emon
stra
tion
stat
ions
nee
d to
be
esta
blis
hed
– on
e in
an
urba
n se
tting
and
the
othe
r in
a ru
ral a
rea
»Ca
paci
ties
of a
t lea
st 1
00 fa
rmer
s a
year
stre
ngth
ened
»St
reng
then
ed c
apac
ities
of f
arm
er
field
sch
ools
»M
oANR
»EI
AR »AT
A »FC
A
175,
000
1.3.
4. P
rovi
de c
oach
ing
to fa
rmer
s on
su
pple
men
tal i
rriga
tion,
esp
ecia
lly in
sem
i-ar
id
area
s, th
roug
h ta
ppin
g su
rface
and
und
ergr
ound
wa
ter r
esou
rces
– th
roug
h fa
rmer
fiel
d sc
hool
s
201
/01/
2019
31/1
2/20
23 »Im
prov
ed k
nowl
edge
of
supp
lem
enta
l irri
gatio
n, e
spec
ially
in
sem
i-ar
id a
reas
»M
inis
try o
f W
ater
, Irri
gatio
n an
d El
ectri
city
»M
oANR
»AT
A20
,000
1.3.
5. S
treng
then
and
pro
mot
e th
e us
e of
in
tegr
ated
pes
t man
agem
ent p
ract
ice
by
prov
idin
g sp
ecia
lized
trai
ning
and
cap
acity
-bu
ildin
g to
farm
ers’
ass
ocia
tions
in p
riorit
y pu
lses
– th
roug
h fa
rmer
fiel
d sc
hool
s.
201
/01/
2019
31/1
2/20
23 »Im
prov
ed p
est m
anag
emen
t pr
actic
es, r
educ
ing
the
inci
denc
e of
cr
op lo
sses
due
to p
ests
by
50 %
»Bo
A »M
oANR
»Re
gion
al B
oAs
20,0
00
48 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024St
rate
gic
obje
ctiv
eO
pera
tiona
l ob
ject
ive
Activ
ities
Prio
rity
Star
t dat
eEn
d da
teTa
rget
sLe
ad
impl
emen
tatio
n pa
rtne
r
Supp
ortin
g im
plem
enta
tion
part
ners
Estim
ated
co
sts
( US $
)
1. Im
prov
e se
ctor
pr
oduc
tivity
and
qu
ality
thro
ugh
enha
nced
pub
lic
and
priv
ate
supp
ort i
n re
sear
ch, i
nput
di
strib
utio
n,
prod
uctio
n,
proc
essi
ng a
nd
expo
rt.
1.3
Enha
nce
sect
or
prod
uctiv
ity,
know
ledg
e an
d ad
optio
n of
pro
ven
puls
e te
chno
logi
es.
1.3.
6 Pr
omot
e m
oder
n st
orag
e fa
cilit
ies
by
faci
litat
ing
refu
rbis
hmen
t of e
xist
ing
stor
age
and
esta
blis
hing
new
mod
el s
tora
ge fa
cilit
ies
at
coop
erat
ive
leve
l.
201
/01/
2020
31/1
2/20
21 »Up
grad
ing
of e
xist
ing
stor
age
units
to
mod
ern
leve
ls »Es
tabl
ishm
ent o
f new
sto
rage
fa
cilit
ies
at c
oope
rativ
e le
vel
»Ad
ditio
nal r
even
ue s
tream
for
coop
erat
ives
»FC
A »AT
A
2. Im
prov
e ex
port
co
mpe
titiv
enes
s by
stre
ngth
enin
g ba
ckw
ard
prod
uctio
n an
d pl
anni
ng
by re
spon
ding
to
mar
ket
oppo
rtun
ities
.
2.1.
Stre
ngth
en
coor
dina
tion
betw
een
inst
itutio
ns to
ens
ure
effe
ctiv
e ex
chan
ge o
f in
form
atio
n al
ong
the
valu
e ch
ain.
2.1.
1. E
stab
lish
a na
tiona
l pub
lic a
nd p
rivat
e se
ctor
pul
ses
indu
stry
net
work
( ‘na
tiona
l pul
ses
netw
ork’
) tha
t act
s as
the
foca
l poi
nt fo
r the
se
ctor
. The
mai
n fu
nctio
n of
the
netw
ork
will
be to
repr
esen
t the
inte
rest
s of
the
sect
or a
nd
to c
oord
inat
e th
e ef
forts
of a
ll st
akeh
olde
rs in
th
e va
lue
chai
n. T
he n
etwo
rk s
houl
d co
mpr
ise
repr
esen
tativ
es fr
om b
oth
the
publ
ic s
ecto
r and
th
e pr
ivat
e se
ctor
, led
by
the
latte
r.
101
/01/
2019
31/1
2/20
19 »Es
tabl
ishm
ent o
f the
‘nat
iona
l pul
ses
netw
ork’
with
a d
efin
ed g
over
nanc
e st
ruct
ure,
fund
ed b
y pu
blic
and
pr
ivat
e se
ctor
sta
keho
lder
s »A
netw
rok
for c
oord
inat
ion
is
esta
blis
hed
for t
he p
ulse
s se
ctor
»EP
OSPE
A »M
oANR
»AT
A »EC
X »M
oT »Na
tiona
l Ex
chan
ge
Acto
rs
Asso
ciat
ion
»EC
CSA
30,0
00
2.1.
2. F
oste
r coo
pera
tion
betw
een
the
Ethi
opia
n ‘n
atio
nal p
ulse
s ne
twor
k’ a
nd o
vers
eas
puls
e or
gani
zatio
ns ( I
ndia
Pul
ses
and
Grai
n As
soci
atio
n, S
aska
tche
wan
Puls
e Gr
ower
s,
East
Afri
can
Grai
n Co
unci
l, et
c. ).
to le
arn
best
pr
actic
es a
nd d
evel
op p
artn
ersh
ips.
101
/01/
2019
31/1
2/20
23 »De
velo
p a
min
imum
of t
hree
pa
rtner
ship
s wi
th o
vers
eas
orga
niza
tions
»Br
idge
the
gap
and
impr
ove
com
mun
icat
ion
betw
een
impo
rters
an
d Et
hiop
ian
expo
rters
»EP
OSPE
A »M
oANR
»M
oT »Tr
ade
Prom
otio
n Di
rect
orat
es
150,
000
2.1.
3. E
stab
lish
a ce
ll ph
one-
base
d kn
owle
dge
plat
form
that
dis
sem
inat
es re
al-t
ime
and
up-t
o-da
te in
form
atio
n re
leva
nt to
sta
keho
lder
s in
the
puls
es v
alue
cha
in. T
his
woul
d in
clud
e a
visu
al
dire
ctor
y of
pul
ses
with
in th
e pl
atfo
rm fo
r the
be
nefit
of a
ll st
akeh
olde
rs.
»Th
is p
latfo
rm w
ill d
isse
min
ate
info
rmat
ion
thro
ugh
bulk
text
mes
sage
s an
d in
tegr
ate
for
diss
emin
atio
n th
roug
h ra
dio
and
tele
visi
on
show
s. »W
rite
a m
anua
l with
gui
delin
es o
n fe
rtiliz
er
and
pest
icid
e us
e in
pul
se p
rodu
ctio
n an
d po
stha
rves
t han
dlin
g.
201
/07/
2019
30/0
6/20
20 »Es
tabl
ishm
ent o
f an
Inte
rnet
-bas
ed
cell
phon
e pl
atfo
rm to
dis
sem
inat
e in
form
atio
n »At
leas
t 10,
000
bene
ficia
ries
acce
ssin
g th
e pl
atfo
rm »A
visu
al d
irect
ory
of p
ulse
s in
corp
orat
ed w
ithin
the
plat
form
»Sh
owca
se n
ew te
chno
logi
es th
roug
h bu
lk te
xt m
essa
ges,
radi
o an
d te
levi
sion
sho
ws »M
anua
l on
ferti
lizer
and
pes
ticid
e us
e pu
blis
hed
»EP
OSPE
A »M
oANR
»M
inis
try o
f Fo
reig
n Af
fairs
( M
oFA )
( tra
de
atta
chés
) »Bo
A »AT
A »EC
X »EC
CSA
»RA
RIs
250,
000
2.1.
4. In
crea
se th
e nu
mbe
r of v
arie
ties
of p
ulse
s to
be
trade
d at
ECX
. Har
icot
bea
ns a
re a
lread
y pr
esen
t on
the
ECX
plat
form
.
201
/01/
2020
31/1
2/20
20 »In
crea
se in
the
num
ber o
f pul
se
varie
ties
trade
on
the
ECX
plat
form
»EP
OSPE
A »EC
X »M
oT1,
000
2.2.
Impr
ove
the
capa
city
of t
he p
ulse
s se
ctor
to c
ompe
te in
ta
rget
mar
kets
.
2.2.
1. Im
prov
e qu
ality
sta
ndar
ds b
y re
view
ing
the
exis
ting
Ethi
opia
n pu
lse
stan
dard
s an
d al
igni
ng w
ith s
tand
ards
in th
e in
tern
atio
nal
mar
ket.
101
/01/
2019
30/1
2/20
19 »Cr
eatio
n of
the
qual
ity s
tand
ards
ga
p m
ap »Pu
lse
qual
ity b
ench
mar
king
do
cum
ent c
reat
ed
»EN
AO
»M
oANR
»EP
OSPE
A35
,000
49PLAN OF ACTION FOR 2019-2023St
rate
gic
obje
ctiv
eO
pera
tiona
l ob
ject
ive
Activ
ities
Prio
rity
Star
t dat
eEn
d da
teTa
rget
sLe
ad
impl
emen
tatio
n pa
rtne
r
Supp
ortin
g im
plem
enta
tion
part
ners
Estim
ated
co
sts
( US $
)
2. Im
prov
e ex
port
co
mpe
titiv
enes
s by
stre
ngth
enin
g ba
ckw
ard
prod
uctio
n an
d pl
anni
ng
by re
spon
ding
to
mar
ket
oppo
rtun
ities
.
2.2.
Impr
ove
the
capa
city
of t
he p
ulse
s se
ctor
to c
ompe
te in
ta
rget
mar
kets
.
2.2.
2. E
ncou
rage
ENA
O to
dev
elop
a n
etwo
rk o
f m
utua
l rec
ogni
tion
agre
emen
ts w
ith c
onfo
rmity
as
sess
men
t bod
ies
and
sim
ilar i
nstit
utio
ns
glob
ally
.
101
/01/
2019
30/1
2/20
23 »M
utua
l rec
ogni
tion
for E
NAO
with
pa
rtner
glo
bal i
nstit
utio
ns
2.2.
3. D
evel
op a
nd e
nfor
ce a
‘nat
iona
l bus
ines
s co
de o
f con
duct
’ for
pul
se e
xpor
ters
that
will
he
lp re
duce
the
impa
ct o
f def
aulti
ng lo
cal
expo
rters
.
101
/01/
2019
30/0
6/20
19 »Na
tiona
l cod
e of
con
duct
pub
lishe
d,
with
inpu
ts th
at h
elp
Ethi
opia
n pu
lse
expo
rters
con
duct
bus
ines
s as
per
in
tern
atio
nal s
tand
ards
»M
oT »EP
OSPE
A20
,000
2.2.
4. D
evel
op th
e ca
paci
ties
of d
iplo
mat
ic
mis
sion
s –
espe
cial
ly tr
ade
atta
chés
– to
pr
omot
e Et
hiop
ian
puls
es a
broa
d, b
y in
trodu
cing
tra
inin
g se
ssio
ns fo
r tra
de a
ttach
és to
info
rm
them
abo
ut th
e pu
lses
sec
tor b
efor
e th
ey a
re
depu
ted
to fo
reig
n m
issi
ons.
Als
o, e
ncou
rage
tra
de a
ttach
és to
atte
nd tr
ade
fairs
in th
eir h
ost
coun
tries
and
sha
re re
leva
nt in
form
atio
n wi
th
the
indu
stry
thro
ugh
EPOS
PEA.
101
/01/
2019
31/1
2/20
19 »In
form
atio
n ab
out E
thio
pian
pul
ses
diss
emin
ated
glo
bally
»Tr
ade
atta
chés
trai
ned
and
capa
citie
s im
prov
ed w
ith re
spec
t to
the
puls
es
sect
or »Et
hiop
ia re
pres
ente
d in
trad
e fa
irs
world
wide
»M
oFA
»EP
OSPE
A45
,000
2.2.
5 In
crea
se in
tern
atio
nal e
xpos
ure
of th
e in
dust
ry b
y im
prov
ing
the
bran
ding
of ‘
Ethi
opia
n Pu
lses
’.
101
/01/
2019
31/1
2/20
23 »Br
and
‘Eth
iopi
an P
ulse
s’ e
stab
lishe
d »M
oT »M
oFA
»EP
OSPE
A »EC
CSA
200,
000
2.2.
6 Pa
rtici
pate
regu
larly
in tr
ade
mis
sion
s ov
erse
as, o
rgan
izing
vis
its to
fore
ign
coun
tries
fo
r inv
estm
ent p
rom
otio
n to
exp
lore
inve
stm
ent
oppo
rtuni
ties
for n
ew m
arke
ts, n
ew p
rodu
cts,
an
d ne
w bu
sine
ss p
artn
ers.
101
/01/
2019
31/1
2/20
23 »Im
prov
ed a
ware
ness
of o
ppor
tuni
ties
for t
rade
ove
rsea
s »M
oT »M
oFA
»EP
OSPE
A »EC
CSA
150,
000
2.2.
7. Im
prov
e FD
I cap
acity
of t
he s
ecto
r by :
»De
velo
ping
an
inve
stm
ent p
rofil
e fo
r Eth
iopi
a’s
puls
es s
ecto
r alo
ng w
ith p
rom
otio
nal
mat
eria
ls to
sha
re th
roug
h tra
de a
ttach
és
over
seas
, and
pro
mot
ing
FDI b
y or
gani
zing
busi
ness
-to-
busi
ness
mis
sion
s. »En
cour
agin
g in
vest
men
t fro
m o
vers
eas
for
prov
idin
g ag
ri-m
echa
niza
tion
serv
ices
201
/01/
2019
31/1
2/20
22 »Pr
omot
iona
l mat
eria
l spe
cific
to
puls
es d
esig
ned
and
publ
ishe
d »In
crea
se o
f at l
east
two
inve
stor
s in
vest
ing
in th
e pu
lses
pro
cess
ing
spac
e in
four
yea
rs »In
trodu
ctio
n of
at l
east
two
over
seas
in
vest
ors
for p
rovi
sion
of a
gri-
mec
hani
zatio
n se
rvic
es
»EI
C »M
oFA
( tra
de
atta
chés
) »EC
CSA
»M
oT
30,0
00
2.3
Impr
ove
the
busi
ness
env
ironm
ent
and
ease
regu
lato
ry
proc
edur
es to
attr
act
loca
l and
fore
ign
inve
stm
ent i
nto
the
puls
es in
dust
ry.
2.3.
1. S
tream
line
the
sequ
enci
ng o
f cle
anin
g,
test
ing,
fum
igat
ing
and
obta
inin
g ph
ytos
anita
ry
certi
ficat
es s
o th
at th
e tim
e re
quire
d to
per
form
al
l the
se p
roce
dure
s ca
n be
redu
ced
to th
e m
inim
um.
101
/01/
2019
31/1
2/20
19 »St
ream
lined
pro
cedu
res
for
sequ
enci
ng o
f exp
orts
»M
oANR
»M
oT35
,000
2.3.
2 Sp
eed
up d
evel
opm
ent o
f an
onlin
e si
ngle
win
dow
syst
em c
entre
to fa
cilit
ate
adm
inis
trativ
e pr
oces
ses
for p
ulse
exp
orts
and
in
trodu
ce tr
aini
ng p
rogr
amm
es o
n pr
epar
atio
n an
d su
bmis
sion
of d
ocum
enta
ry re
quire
men
ts
for e
xpor
t.
101
/01/
2019
31/1
2/20
19 »Si
ngle
win
dow
syst
em o
pera
tiona
l fo
r onl
ine
subm
issi
on o
f pul
se e
xpor
t pr
oces
ses
and
rece
ipt o
f app
rova
ls »At
leas
t 500
exp
orte
rs g
et tr
aine
d in
ex
port
prac
tices
and
regu
latio
ns
»M
oT »EC
CSA
»Et
hiop
ian
Stan
dard
s Ag
ency
»M
oANR
350,
000
50 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024St
rate
gic
obje
ctiv
eO
pera
tiona
l ob
ject
ive
Activ
ities
Prio
rity
Star
t dat
eEn
d da
teTa
rget
sLe
ad
impl
emen
tatio
n pa
rtne
r
Supp
ortin
g im
plem
enta
tion
part
ners
Estim
ated
co
sts
( US $
)
2. Im
prov
e ex
port
co
mpe
titiv
enes
s by
stre
ngth
enin
g ba
ckw
ard
prod
uctio
n an
d pl
anni
ng
by re
spon
ding
to
mar
ket
oppo
rtun
ities
.
2.3
Impr
ove
the
busi
ness
env
ironm
ent
and
ease
regu
lato
ry
proc
edur
es to
attr
act
loca
l and
fore
ign
inve
stm
ent i
nto
the
puls
es in
dust
ry.
2.3.
3. B
uild
a o
ne-s
top-
shop
faci
lity
for e
xpor
t pr
oces
sing
. In
thes
e pr
emis
es, e
xpor
ters
sho
uld
be a
ble
to g
et a
ll ne
cess
ary
supp
ort f
or s
ervi
ces
such
as
clea
ning
, fum
igat
ion,
phy
tosa
nita
ry
insp
ectio
ns, s
tora
ge, e
tc.
101
/01/
2019
30/0
6/20
20 »Ce
ntra
lized
loca
tion
for s
uppo
rt se
rvic
es fo
r exp
orte
rsM
oT »EC
CSA
»EP
OSPE
A »Co
mm
erci
al
Bank
of E
thio
pia
800,
000
2.4
Ensu
re q
ualit
y of
pr
oduc
e fro
m fi
eld
to
mar
ket
2.4.
1 De
velo
p an
d im
plem
ent c
ompl
ete
regu
latio
ns /
dire
ctiv
es o
n pu
lse
mar
ketin
g,
incl
udin
g di
spos
al u
nmar
keta
ble
puls
es, o
r tra
nsfo
rmat
ion
to a
nim
al fe
ed a
nd s
afe
use.
201
/01/
2020
31/1
2/20
20 »De
taile
d di
rect
ive
on p
ulse
mar
ketin
g pr
oced
ures
»Re
med
ies
in p
lace
for d
ispo
sal o
f un
mar
keta
ble
puls
es
»Hi
gh n
utrie
nt a
nim
al fe
ed a
s a
by-
prod
uct
»M
oT »M
oANR
30,0
00
2.4.
2 St
reng
then
the
pest
icid
e qu
ality
con
trol
syst
em th
roug
h co
ordi
natio
n, tr
aini
ng a
nd
awar
enes
s cr
eatio
n at
all
leve
ls.
101
/01/
2019
31/1
2/20
23 »Im
prov
ed q
ualit
y of
pro
duce
»In
crea
sed
awar
enes
s of
pes
ticid
e us
age
»M
oANR
30,0
00
2.4.
3. E
nsur
e qu
ality
of p
rodu
ce fr
om fi
eld
to m
arke
t by
esta
blis
hing
a tr
acea
bilit
y an
d ce
rtific
atio
n sy
stem
for p
ulse
pro
duct
s. T
his
will
enab
le o
rgan
ic fa
rmin
g.
201
/01/
2019
30/0
6/20
19 »Tr
acea
bilit
y pr
oced
ures
and
ce
rtific
atio
n sy
stem
for p
ulse
s is
in
plac
e »In
trodu
ce /
stre
ngth
en o
rgan
ic
farm
ing
»EC
X »M
oANR
»M
oT30
,000
3.St
reng
then
the
capa
city
of s
ecto
r st
akeh
olde
rs to
im
prov
e va
lue
addi
tion.
3.1.
Enc
oura
ge
inve
stor
s to
eng
age
in p
roce
ssin
g an
d ot
her v
alue
add
ition
ac
tiviti
es in
the
sect
or.
3.1.
1 Pr
omot
e jo
int v
entu
re p
artn
ersh
ips
with
in
tern
atio
nal p
roce
ssor
s an
d Et
hiop
ian
inve
stor
s an
d en
cour
age
valu
e ad
ditio
n of
pul
ses
in
Ethi
opia
.
101
/01/
2019
31/1
2/20
23 »At
leas
t 10
join
t ven
ture
s ar
e es
tabl
ishe
d be
twee
n Et
hiop
ian
entre
pren
eurs
and
inte
rnat
iona
l in
vest
ors
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tract
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l inf
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n
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C »M
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try o
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3.1.
2 Id
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pul
se p
roce
ssin
g te
chno
logi
es to
incr
ease
the
valu
e of
pul
ses
prod
uced
in E
thio
pia.
101
/01/
2019
31/1
2/20
20 »At
leas
t a 2
5 % in
crea
se in
the
valu
e of
pul
ses
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uced
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3 En
cour
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s to
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age
in
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nd o
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ue a
dditi
on a
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ities
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sect
or b
y in
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cing
fisc
al a
nd n
on-f
isca
l in
cent
ives
to a
ttrac
t inv
estm
ents
.
201
/01/
2019
31/1
2/20
23 »Fi
scal
and
non
-fis
cal b
enef
it sc
hem
e in
trodu
ced
to a
ttrac
t inv
esto
rs
spec
ifica
lly fo
r val
ue a
dditi
on
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inis
try o
f In
dust
ry
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35
,000
3.2.
Fac
ilita
te a
cces
s to
fina
nce
for S
MEs
al
ong
the
valu
e ch
ain.
3.2.
1 Sc
ale
up th
e in
put v
ouch
er s
yste
m.
101
/01/
2020
31/1
2/20
23 »Im
prov
ed in
put v
ouch
er s
yste
m in
pl
ace
»M
oANR
»M
oFEC
»EP
OSPE
A50
,000
3.2.
2 Pr
omot
e pu
lses
as
a st
rate
gic
crop
and
in
trodu
ce e
asy
term
s of
fina
nce
for e
xpor
ters
by
esta
blis
hing
an
expo
rt de
velo
pmen
t fun
d.
101
/01/
2019
31/1
2/20
20 »Cr
eatio
n of
an
expo
rt de
velo
pmen
t fu
nd »Ac
cess
to e
xpor
t fin
ance
»Pa
rtici
patio
n of
priv
ate
and
publ
ic
stak
ehol
ders
, esp
ecia
lly fi
nanc
ial
inst
itutio
ns »At
leas
t 200
exp
ort o
rder
s m
ake
use
of s
uch
fund
s in
five
yea
rs
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tiona
l Ban
k of
Eth
iopi
a »M
oFEC
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A »M
oANR
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A
500,
000
51PLAN OF ACTION FOR 2019-2023St
rate
gic
obje
ctiv
eO
pera
tiona
l ob
ject
ive
Activ
ities
Prio
rity
Star
t dat
eEn
d da
teTa
rget
sLe
ad
impl
emen
tatio
n pa
rtne
r
Supp
ortin
g im
plem
enta
tion
part
ners
Estim
ated
co
sts
( US $
)
3.St
reng
then
the
capa
city
of s
ecto
r st
akeh
olde
rs to
im
prov
e va
lue
addi
tion.
3.2.
Fac
ilita
te a
cces
s to
fina
nce
for S
MEs
al
ong
the
valu
e ch
ain.
3.2.
3. E
ncou
rage
farm
ers,
farm
ers’
or
gani
zatio
ns a
nd a
ssem
bler
s to
use
con
tract
fa
rmin
g an
d si
mila
r con
tract
ual a
rrang
emen
ts
to a
void
mar
ket d
efau
lts a
nd to
stre
amlin
e th
e nu
mbe
r of i
nter
med
iarie
s in
the
puls
es s
ecto
r.
301
/01/
2020
31/1
2/20
22 »Co
ncep
t of c
ontra
ct fa
rmin
g in
trodu
ced
»St
akeh
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rs s
uppo
rted
with
st
anda
rd fo
rmat
s fo
r tak
ing
on
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ract
farm
ing
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gula
r leg
al c
ouns
el p
rovi
ded
»M
inis
try o
f Ju
stic
e »M
oANR
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A »EC
CSA
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00
3.2.
4. S
uppo
rt es
tabl
ishm
ent o
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Agric
ultu
ral
Bank
.1
01/0
1/20
2031
/12/
2023
»A
bank
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ress
es c
redi
t iss
ues
for p
ulse
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d ot
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gric
ultu
ral
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ucts
is e
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lishe
d
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tiona
l Ban
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a »M
oFEC
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0,00
0
3.3
Deve
lop
the
requ
ired
skill
s fo
r men
an
d wo
men
, esp
ecia
lly
yout
h, to
effi
cien
tly
cont
ribut
e to
sec
tor
deve
lopm
ent.
3.3
.1. E
nhan
ce y
outh
and
wom
en’s
cap
acity
to
parti
cipa
te in
the
valu
e ch
ain.
»Or
gani
ze a
sta
keho
lder
con
sulta
tion
with
wo
men
’s a
ssoc
iatio
ns a
nd re
pres
enta
tives
, an
d TV
ET s
take
hold
ers.
»M
ap th
e sp
ecifi
c wa
ys in
whi
ch th
e le
gal
syst
em m
ight
be
impe
ding
the
parti
cipa
tion
of
wom
en a
cros
s al
l the
seg
men
ts in
the
valu
e ch
ain
( acc
ess
to a
rabl
e la
nd in
par
ticul
ar ).
»Or
gani
ze a
con
sulta
tive
body
of w
omen
that
lo
bbie
s fo
r cha
nge
in im
pedi
ng la
ws a
nd
advo
cate
s ge
nder
-sen
sitiv
e is
sues
in th
e pu
lses
sec
tor.
201
/01/
2019
31/1
2/20
22 »A
10 %
incr
ease
in v
alue
cha
in a
ctor
s ca
paci
tate
d fro
m th
e yo
uth
and
fem
ale
segm
ents
of t
he p
opul
atio
n
»EP
OSPE
A »M
inis
try o
f W
omen
and
Ch
ildre
n Af
fairs
»Fe
dera
l TVE
T Ag
ency
»AT
A
30,0
00
3.3.
2. S
treng
then
the
busi
ness
and
man
agem
ent
skill
s of
you
th a
ctor
s, e
spec
ially
wom
en, t
o ta
ke o
n sk
ills
to im
prov
e co
ordi
natio
n be
twee
n pr
oces
sors
and
exp
orte
rs :
»Th
e cu
rricu
lum
of t
he tr
aini
ng s
houl
d in
clud
e pr
oduc
tion,
mar
ketin
g, fi
nanc
e, m
arke
t lin
ks,
etc.
»Pr
ovid
e tra
inin
g to
wom
en a
nd y
outh
on
prod
uctiv
ity-e
nhan
cing
man
agem
ent o
f pr
oduc
tion
tech
niqu
es fo
r the
pul
ses
sect
or.
»Pr
ovid
e tra
inin
g to
wom
en a
nd y
outh
on
inte
rnat
iona
l tra
de.
201
/01/
2019
31/1
2/20
22 »A
10 %
incr
ease
in v
alue
cha
in a
ctor
s fro
m th
e yo
uth
and
fem
ale
segm
ents
of
the
popu
latio
n »Bu
sine
ss a
nd m
anag
emen
t ski
lls
enha
nced
»EP
OSPE
A »M
inis
try o
f W
omen
and
Ch
ildre
n Af
fairs
»Fe
dera
l TVE
T Ag
ency
»AT
A
30,0
00
Photo: (cc) Brad Smith
53APPENDICES
APPENDICES
APPENDIX 1 : COMPLETE LIST OF PRIVATE AND PUBLIC STAKEHOLDERS
Name Position Organization
Abdulsemed Abdo StM Advisor MOA
Teshager Abebaw Senior Agronomist MOA
Dagmawi Engida Senior Expert MOA
Dr Mekasha Chichayibelu Researcher EIAR
Dr Endalikachew W/Meskel Country Coordinator, R&D ILRI-N2Africa
Jembol Molla Planning and Programing Director MOT
Kindyihun Mamo Marketing Manager Southern Farmers’ Cooperative Federation
Kassahun Bekele General Manager ACOS Ethiopia
Tujar Kassim D/General Manager Sorti International Trading PLC
Tsegaye Abebe Supervisor Amal Trading PLC
Fekade Wondimagegn Specialist, AGP MOA
Assefa Yohannes General Manager EPOSPEA
Bulbula Tulle General Manager Sorti International Trading PLC
Dr Berhanu Amsalu Pulse Research Coordinator EIAR
Zegeye Tekilu Manager, Agriculture Commercialization Cluster
ATA
Birhan Abdulkadir Research officer, N2Africa ILIRI
Mesfin Abebe A/Director, Crop Marketing MOT
Sibhat Temesgen Pulse Team leader MOA
Engidu Legesse General Manager GUTS Agro Processing
Essayas Lemma Director, Crop Development MOA
Mulugeta Mohammed Director, Crop Marketing MOT
Bezu Yicheneku Senior Pulse Expert MOA
Endalkachew Abie General Manager Tsehay Farmers’ Cooperative Union
54 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
APPENDIX 2 : ETHIOPIA’S PRODUCTION OF PULSES, 2011–2016
Name of the pulse 2011 2012 2013 2014 2015 2016
Beans, dry 387 802 463 009 457 411 513 725 595 511 483 923
Broad beans, horse beans, dry 714 796 943 964 991 700 838 944 935 481 878 010
Chickpeas 400 208 409 733 409 733 458 682 520 965 444 146
Lentils 128 009 151 500 159 121 137 354 147 637 166 274
Peas, dry 263 266 327 378 379 813 342 637 356 477 348 145
Pulses, n.e.s. 49 278 54 264 58 181 56 887 81 529 115 803
Vetches 305 575 325 581 317 322 251 439 317 107 297 097
Source : FAOSTAT
APPENDIX 3 : TOTAL AREA AND PRODUCTION OF DIFFERENT GROUPS OF CROPS IN ETHIOPIA IN 2016/17
Crop Tons ( thousands )
Cereals 25 384.72
Pulses 2 814.63
Oilseeds 839.20
Vegetables 812.63
Root crops 4 621.42
Fruit Crops 792.36
Crop Ha ( thousands )
Cereals 10 219.44
Pulses 1 549.91
Oilseeds 804.75
Vegetables 239.61
Root crops 229.08
Fruit Crops 107.89
Source : CSA ( 2016 ).
55APPENDICES
APPENDIX 4 : ETHIOPIA’S TOTAL PULSE EXPORTS, 2011–2016
Year Net weight ( tons ) Trade value ( US $ )
2011 210 0013 139 273 768
2012 281 626 199 253 458
2013 359 505 239 412 897
2014 371 160 286 995 014
2015 338 973 240 700 142
2016 296 156 248 742 416
Source : United Nations Comtrade Statistics 2016.
APPENDIX 5 : ETHIOPIA’S MOST IMPORTANT EXPORT DESTINATIONS FOR PULSES, 2016 ( US $ MILLIONS )
Importing country Quantity exported ( tons ) Trade value ( US $ ) Percentage of
Ethiopian pulse exports
Pakistan 85 294 72 980 447 29.34
India 33 696 27 789 588 11.17
Indonesia 22 174 27 671 834 11.12
Viet Nam 23 408 27 374 384 11.00
United Arab Emirates 12 975 12 689 443 5.10
Kenya 26 459 11 331 827 4.56
Sudan 12 483 8 798 218 3.54
South Africa 9 414 7 130 513 2.87
Yemen 8 750 6 666 530 2.68
Russian Federation 7 840 6 098 710 2.45
Malaysia 4 328 5 343 449 2.15
Other 49 336 34 867 473 14.02
Source : United Nations Comtrade Statistics 2016.
56 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
APPENDIX 6 : ETHIOPIA’S TOTAL EXPORTS OF PULSES IN COMMODITIES, 2011–2016
Commodity 2012 2013 2014 2015 2016
Pigeon peas - - 52 756 597 667 -
Broad beans 23 629 814 24 265 690 28 523 674 47 289 895 6 646 663
Lentils 835 10 776 10 722 - 874
Cowpeas - - - 27 400 -
Kidney beans 96 639 312 149 441 499 182 909 741 130 386 878 107 577 824
Mung beans 452 888 3 472 358 2 658 334 598 035 15 017 600
Chickpeas 55 096 562 40 710 798 26 849 862 29 971 309 67 238 315
Source : United Nations Comtrade Statistics 2016. Note : - represents data not available for the respective year.
APPENDIX 7 : ETHIOPIA’S EXPORTED GOODS, 2016 (US$ THOUSANDS)
Code Product label Exported value in 2016 ( US $ )
‘09 Coffee, tea, maté and spices 757 312
‘07 Edible vegetables and certain roots and tubers 526 952
‘12 Oil seeds and oleaginous fruits 516 851
‘06 Live trees and other plants ; bulbs, roots and the like ; cut flowers and ornamental foliage
216 156
‘71 Natural or cultured pearls, precious metals, metals 117 578
‘02 Meat and edible meat offal 93 648
‘41 Raw hides and skins and leather 67 606
‘01 Live animals 90 743
‘85 Electrical machinery and equipment 20 431
Others 208 654
Source : ITC Calculations based on United Nations Comtrade Statistics 2016.
57APPENDICES
APPENDIX 8 : SHARE OF PULSE CROPS IN GLOBAL EXPORTS IN 2016 (US$ THOUSANDS)
HS code Product Value (US$ Thousands)
71310 Dried, shelled peas ‘Pisum sativum’, whether or not skinned or split
Dried peas 6 195 717
71320 Dried, shelled chickpeas ‘garbanzos’, whether or not skinned or split
Dried chickpeas 2 442 020
71331 Dried, shelled beans of species ‘Vigna mungo [L.] Hepper or Vigna radiata [L.] Wilczek’, whether or not skinned or split
Dried beans/ mung 984 491
71332 Dried, shelled small red ‘Adzuki’ beans ‘Phaseolus or Vigna angularis’, whether or not skinned
Dried red ‘Adzuki’ beans 199 302
71333 Dried, shelled kidney beans ‘Phaseolus vulgaris’, whether or not skinned or split
Dried kidney beans 1 899 491
71334 Dried, shelled bambara beans ‘Vigna subterranea or Voandzeia subterranea’, whether or not skinned
Dried bambara beans 2 905
71335 Dried, shelled cow peas ‘Vigna unguiculata’, whether or not skinned or split
Dried cow peas 32 639
71339 Dried, shelled beans ‘Vigna and Phaseolus’, whether or not skinned or split ( excluding beans )
Dried beans 706 302
71340 Dried, shelled lentils, whether or not skinned or split Dried lentils 3 142 665
71350 Dried, shelled broad beans ‘Vicia broad var. major’ and horse beans ‘Vicia broad var. equina’
Dried broad beans and horse beans/ broad beans
963 118
71360 Dried, shelled pigeon peas ‘Cajanus cajan’, whether or not skinned or split
Dried pigeon peas 317 741
71390 Dried, shelled leguminous vegetables, whether or not skinned or split ( excluding peas, chickpeas )
Dried leguminous vegetables 308 066
Source : ITC calculations based on United Nations Comtrade and ITC statistics.
APPENDIX 9 : EXPORTS OF PULSES BY REGION OR REGIONAL GROUP, 2007–2016 ( US $ THOUSANDS )
Year Asia Africa Americas Europe Oceania CIS GCC World
2007 1 092 809 251 806 2 290 028 545 096 283 080 97 298 44 480 4 607 627
2008 1 284 062 396 450 3 265 791 704 890 380 771 109 328 90 356 6 234 524
2009 1 398 680 409 742 3 246 172 558 359 441 172 192 317 41 401 6 293 461
2010 2 431 109 473 340 3 404 625 586 731 576 761 157 282 134 805 7 768 689
2011 2 442 145 474 365 3 671 440 714 377 838 014 360 492 155 697 8 662 950
2012 2 375 891 559 923 3 722 947 719 120 1 148 650 449 816 67 351 9 048 662
2013 2 796 848 649 348 4 156 758 1 008 638 842 190 337 575 115 346 9 456 367
2014 2 592 362 929 259 4 664 049 1 035 909 800 295 390 752 118 331 10 038 949
2015 2 949 360 911 131 4 891 459 1 134 850 1 324 424 488 695 175 850 11 250 207
2016 3 198 667 807 394 5 041 471 1 469 914 1 491 114 680 715 200 857 12 091 459
Source : FAOSTAT.
58 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
APPENDIX 10 : GLOBAL PULSE PRODUCTION BY VARIETY, 2016
Variety Percentage Production ( tons )
Bambara beans 0.20 164 589
Beans, dry 32.80 26 833 394
Broad beans, horse beans, dry 5.45 4 459 655
Chickpeas 14.78 12 092 950
Cow peas, dry 8.55 6 991 174
Lentils 7.72 6 315 858
Lupins 1.57 1 284 843
Peas, dry 17.56 14 363 099
Pigeon peas 5.49 4 489 874
Pulses, n.e.s. 4.85 3 965 503
Vetches 1.03 838 868
Source : FAOSTAT.
APPENDIX 11 : MAJOR PULSE PRODUCERS GLOBALLY, 2016
Country Percentage Production ( tons )
Australia 3.09 2 523 550
Brazil 3.21 2 623 088
Canada 10.03 8 201 200
China 5.19 4 242 072
Egypt 0.31 251 036
Ethiopia 3.34 2 733 398
India 21.47 17 562 850
Mexico 1.68 1 371 971
Myanmar 8.03 6 569 194
Nigeria 3.78 3 092 607
Russian Federation 3.60 2 943 331
Turkey 1.32 1 079 656
United Republic of Tanzania 2.45 2 004 368
United States 2.98 2 440 852
Others 29.54 24 160 634
59APPENDICES
APPENDIX 12 : GLOBAL PULSE PRODUCTION AND YIELD, 1991–2016 ( IN MILLIONS )
Year Area ( ha ) Production ( tons )
1991 70.84 56.48
1996 69.74 54.57
2001 67.76 56.23
2006 73.37 62.40
2011 79.60 69.80
2016 82.38 81.80
Source : FAOSTAT.
60 ETHIOPIA NATIONAL PULSES STRATEGY • 2019-2024
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