Review of Wheat Value Chain in Ethiopia

Abstract

In Ethiopia, agriculture contributes over 35.8 percent to the national gross domestic product (GDP), almost 90 percent of export and 72.7percent of employment. Wheat production in 2020 for Ethiopia was 5,100 thousand tons. Ethiopia is the second largest wheat producers in Sub Saharan Africa next to South Africa, with a potential expansion to 1.3 million hectare. The objective of this review is to identify wheat value chain the key actors and their roles in wheat value chain and challenges and opportunities of wheat value chain in Ethiopia. The main actors in the chain include producers, processor, assembler, wholesaler, retailers, and consumers whereas the indirect actors are financial institutions, governments, NGOs). Marketing channel is a business structure of interdependent organizations involved in the process of making the product or service available for consumption starting from product origin. In terms of regional production potential Oromia contributes (57%), Amhara (28%), SNNP (8.7%) and Tigray (6.2%). These show that there is a weak linkage among the wheat value chain actors in Ethiopia. One of the indicators for this weak linkage is the absence (very low level) of linkage between producers and millers few of the wheat produced is directly sold to millers.

Keywords: Value Chain, Wheat, Ethiopia

DOI: 10.7176/JAAS/77-03

Publication date: January 31^st 2022