Ethiopia: Edible Oil Value Chain Enhancement
Ethiopia has huge potential for scaling up its production of edible oil: favorable agro-climatic conditions for increased oil seeds cultivation, the labor-intensive nature of the sub-sector, a conducive business environment, the willingness of oil seed crushers to work at full capacity and the huge local demand.
Despite this potential, however, the edible oil processing industry remains underdeveloped. Main constraints are: low production, poor quality of seeds, inadequate trading infrastructure and poor agro-processing facilities, weak business development services for upgrading the processors and limited access to local and international markets. Weak linkages among the chain’s actors and a lack of working capital also constitute major obstacles.
The aim of the Joint Programme is to increase the productivity and competitiveness of oilseed producers, boost the capacity for processing edible oil seeds and improve access to local and international markets. This is being achieved by integrating the private sector into the entire edible oil seed production value chain.
The Joint Programme in action
JOINT PROGRAMME QUICK FACTS
- Improved varieties of oil seeds, to be made available to more than 600 local producers during farming season, were purchased and multiplied in order to strengthen the quantity and quality of production.
- Strategic Business Plans and trainings have capacitated producers to better understand the dynamics of business associations and techniques of goal setting, negotiation, dialogue, lobbying and management, while also paving the way for networking and partnerships. Policy makers and regulatory bodies’ members and service providers have been enabled to deliver more relevant services.
- Financial institutions were encouraged to provide access to credit to stakeholders of the edible oil value chain. The Development Bank of Ethiopia opened three lines of credit available to local producers, farmer unions, processor cooperatives and marketing agents.