United States Agency for International Developmen

Abdena, A.

Hanson, Jean

Hoekstra, Dirk

Jogo, W.

Kindu, T.

Negassa, A.

Shapiro, Barry I.

CGSpace (CGIAR)

• Several promising scalable crop and livestock production technologies wereidentified with evidence of significant impact on production, productivity and farmhousehold incomes: improved wheat seeds, potato seeds, forage seeds, potato,dairy animals and small ruminants.• For example, farmers are aware of and willing to pay for improved forage seeds orplanting materials–there is significant market potential for improved forage seeds.• However, sustainable scaling requires upgrading the whole value chainsAfrica RISING in the Ethiopian Highlands The main objective of the value chains and economic research was to investigate the potential market demand and commercial viabilities and hence scalability for selected crop and livestock value chains Data from multiple sources were used. Sample survey of households using structured survey instruments, group discussions, key informant interviews, participatory community assessment, telephone interviews, literature review and data was also obtained from secondary sources. A mixed analytical approach (involving statistical, econometric and financial models) was used to answer several research questions.Key MessagesKey results• There is significant awareness among smallholder farmers about the improved forage crops, approximately 87% of the sample farmers reported they are aware of improved forage crops of some kind.• However, in terms of adoption only 51% of the sample households reported ever using improved forage crops• There is strong evidence of significant potential market demand for improved forage seeds among smallholder farmers in Ethiopia, between 64–81% of the farm households surveyed were willing to buy improved FS, if FS is commercially available in the market.Value chains, markets and economics: Africa RISING Science, Innovations and Technologies with Scaling Potential from the Ethiopian Highlands1Asfaw Negassa, 1Barry Shapiro, 1Teklu Kindu, 1Asebe Abdena , 1Jean Hansen, 1Dirk  Hoekstra and 2Willington Jogo1International Livestock Research Institute (ILRI)  & 2International Potato Center (CIP) Objectives and approachType of forage seed  Willing-to-buy (%)Mean WTP (ETB/Unit)WTP as a percentage of current mean market price (%)Alfalfa 81 291.2 43.5Rhodes 79 211.4 47.0Pigeon Pea 71 143.0 57.2Desho 77 2.7 675.0Lablab 67 134.6 53.8Cowpea 64 150.4 60.2Oats 78 14.3 143.0Vetch 71 24.4 97.8Napier Grass 77 1.6 213.0Source: Survey data.Table 1  Summary of households’ response to WTP questionsType of FS Current Yield (Kg/ha/year)WTP (ETB/kg)Current selling price (ETB/kg)Break-even pointPrice (ETB/kg)Yield(kg/ha/year)Alfalfa 250 291.2 670.0 520.0 446.4Rhodesgrass400 211.4 450.0 262.5 496.7PigeonPea900 143.0 250.0 78.0 489.5Cowpea 650 150.4 250.0 131.0 565.2Lablab 1400 134.6 250.0 61.0 631.5Vetch 700 24.4 25.0 30.0 860.9Oats 800 14.3 10.0 32.0 1,748.2Desho 40,000 2.7 0.40 0.63 9,259.3NapierGrass1,000,000 1.6 0.75 0.08 48,461.3Source: Survey data and ILRI(2016). Significance and scaling potential• The scaling up strategies (either demand driven or supply driven) could be different for different improved FSs based on the comparison of WTP and breakeven point prices. • For most FS, the amount of WTP is lower than the current market prices offered by NGOs. This indicates that (1) the NGOs and public FS projects have been providing some kind of subsidy to the FS producers; (2) Unstable FS price structure—significant drops in prices of FS could happen if the NGOs stop their participation leading to decrease in incentives for the private sector seed multiplication; (3) In a situation where WTP is less than breakeven prices, the private FS producers might find it unprofitable and cease production—especially for alfalfa, Rhodes grass, vetch and oats. Con...Table 2  Results of Break-even-point analysis for forage seeds This poster is copyrighted by the International Livestock Research Institute (ILRI). It is licensed for use under the Creative Commons Attribution 4.0 International Licence. January 2017 For alfalfa, Rhodes grass, vetch and oats yield improvement and/or reductions in their costs of production is critical for commercial profitability. • The variations in the amounts of WTP for different FS indicate the need for targeted supports for different FS: (1) Price support (in the short-run); (2) Promotional support; and (3) Productivity improvements.• The demand for FS and PM is derived: the functioning of livestock and livestock products markets is also critical • The mixed analytical approach proved useful to provide important insights to inform the strategies for scaling up the adoption of various improved forage crops. Core partners We thank farmers and local partners in Africa RISING sites for their contributions to this research. We also acknowledge the support of all donors which globally support the work of the CGIAR centers and their partners through their contributions to the CGIAR system

Value chains, markets and economics: Africa RISING Science, Innovations and Technologies with Scaling Potential from the Ethiopian Highlands

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Value chains, markets and economics: Africa RISING Science, Innovations and Technologies with Scaling Potential from the Ethiopian Highlands

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