Review of Barley Value Chain Management in Ethiopia

Abstract

Barley is cultivated by small holders in every region of Ethiopia, since it is able to grow at all elevations, but it performs best at the higher elevations in the northern and central regions of the country. Barley is a major staple food crop in the highlands of Ethiopia. The crop is used for preparing various types of traditional foods such as Kita, Kolo, Beso, Enjera, Giat, cuko (shakeka) and many others. Although the day to day survival is linked to barley, little focus has been given to improve the productivity of the crop in the dry land. The market potential for malt barley is directly dependent on the market for beer; as such, its potential can best be assessed by looking at the evolving dynamics of Ethiopia’s growing brewery sector. Much of Ethiopia’s beer demand is currently being met by domestic brands. BGI Castel is the largest operator in the market, with production capacity of roughly 2 million hectoliters per year (out of a total market production of ~4 million hectoliters per year. The major players in the barley value chain are the input suppliers, smallholders, state and commercial farms, rural assemblers, cooperative unions, grain wholesalers, flourmills, processed food wholesalers, grain retailers, bakeries and pastries, and retailers of processed food. Donors and NGOs also play some role in procuring barley locally for their relief and development activities. To balance the demand and supply of barley  the country have to be increase the productivity of the barley by using modern technology, high-yield varieties for specific location based on end user needs, with varieties to include characteristics such as resistance to drought and diseases.