Review of Sesame Value Chain in Ethiopia

Abstract

This current topic has analyzed the sesame value chain particularly the case of Ethiopia.  Sesame is a major cash crop, which is mainly produced as an export crop. A long value chain characterizes sesame value chain in Ethiopia, which includes producers, village traders or collectors, brokers/wholesalers, oil millers, exporters, retailers and local consumers. Smallholders in the Ethiopian sesame seeds value chain depend on intermediaries, due to the small quantities to be sold and lack of efficient market information system. Price discovery is not based on forces of demand, supply, and do not reflect current international market prices. The major sesame producing regions in Ethiopia are Tigray, Amhara, Oromia and Benishangul Gumuz, which contribute more than 90% of total sesame output. Amhara, Tigray and Oromia contribute 48.5%, 28.5% and 15% of the total production in the year 2007/08 respectively. However, sesame production and marketing in Ethiopia is faced with various challenges that need to be addressed. These include low productivity and quality, poor market infrastructure, long and traditional marketing channels among others.

Keywords: Value chain analysis, sesame and actors.