Challenges and Opportunities of Rural Agribusiness in Drylands: Experiences from Aloe Vera Producers’ Cooperatives in Southern Ethiopia, Borana Zone, Ethiopia

Abstract

In Ethiopia, the modern use of Aloe Vera plant has an infant history though conventionally it has been used for its medicinal value such as wound healing, snakebite and during cultural ceremony. Recently, with the support from non-profit NGOs the practices of Aloe Vera as an alternative livelihood practices were recognized in Borana zone.  However, the cooperative based aloe Vera soap production were suffering from recurrent climatic though the product has high demands. Their marketing system was also tempting where cooperatives members and local community remains the major market outlets of the product particularly due to lack of business skill and its occurrences besides their economy of scale. This demands addressing the business risk efficiently that takes into account the production cost boom (Input Price) and demand failure. Consumer based market development is important where the cooperatives should expand their market based on consumers’ interest rather than limiting market expansion.