Malt Barley Value Chain in Arsi and West Arsi highlands of Ethiopia

Abstract

The study was undertaken in four districts of Arsi and West Arsi zones where malt barley is highly produced. Different participatory rural appraisal approaches were employed to conduct the study. The findings indicated that land allotted for malt barley production has been increased in the study areas since 2010, scarcity was noticed due to constraints related to quality and existence of malt barley competing outlets. Malt barley marketing is complex and dynamic where various actors are involved in its marketing. The marketing route changes over time depending on the demands at the terminal markets. Assela Malt Factory (AMF) plays a great role in determining malt barley price while producers are price takers. Among five major malt barley marketing channels only three of them are supplying to the factory. AMF accessed to 90% of malt barley from the channel via traders and the direct supply by farmers via cooperatives was not more than 10%. The channel via cooperatives which is strategic for both producers and the factory was serving below anticipated due to the financial constraints and management skill gaps of the cooperatives. Although a variety of constraints were existing at each identified nodes in the value chain, the major problems attributing to shortage of malt barley production within the country are inability to produce good quality malt barley because of poor field management, traders’ grain blending practice, weak linkage among farmers, cooperatives, AMF and absence of contract among farmers. Hence, improving input supply to enhance productivity and strengthening linkages among farmers, farmers’ cooperatives/unions and AMF are the major focus areas that call for policy interventions in the future.

Keywords: cooperatives, malt barley, marketing route, traders

DOI: 10.7176/RHSS/10-23-03

Publication date: December 31^st 2020