According to Food and Agriculture Organization (FAO) (2010), Problem of increased food insecurity in lower-income countries like Sub-Saharan was due to low agricultural productivity and failure to with stand climate change which leads to increased dependency on food aid from other developed countries. In addition to this due to poor post harvest management that occur along the chain become challenges for producers and consumers. So, overcoming the problem of Post Harvest Loss (PHL) can provide one way to promote food security and wise use of scarce production inputs.
Food travels from farm to final consumer through different chain, loss can occur at every stage of the chain contributing to total PHL according to Aulakh and Regmi (2013), which significantly reduces valuable incomes for producers and wastage for consumers. FAO (2010), states that 'reducing PHL along food chains can provide a more cost-effective and environmentally sustainable means of promoting food and nutrition security than investments focusing on increasing production'. US Bureau of Economic and Business Affairs, (2013) also states that 'Postharvest losses reduce the overall prosperity of the country and contribute to food insecurity among the large minority of the population that live in fragile eco-systems and/or have little access to affordable imported food-stuffs'.
According to USAID (2010), 'Maize (Zea mays) the third largest planted crop after wheat and rice and one of the world's most important cereals and provides more human food than any other cereal. The main world producers include USA 30%, China (15%), EU member countries together (14%), Brazil (4%) and India (3%) of total world production and globally, mostly used and traded as a leading feed crop but is an important food staple in developing countries. Due to this, maize is considered as 'the leading commodities among that make up the bulk of international food aid In terms of the overall food aid volume, this puts maize food aid ranks third after wheat and rice; ranging from 1 to 1.5 million tones, depending on the year and as food aid represents between 20 to 30 percent of the total annual food aid shipments, it accounts for no more than two percent of total world trade in maize' (FAO, 2006).
According to USAID (2010), maize is the second most important food crop after cassava in Africa, which provides nutrients for humans and animals and also serves as a basic raw material for the production of starch, oil and protein, alcoholic beverages, food sweeteners and, more recently, bio-fuel. This is due to its potential for high yield, easy to process, is readily digested, and costs less than other cereals. Maize is also a versatile crop, which allows it to grow across a wide range of agro-ecological zones. In addition, every part of the maize plant; the grain, leaves, stalk, tassel, and cob can all be used to produce a large variety of food and non-food products; which has economic value.
Agriculture continues to be the dominant sector in Ethiopia's economy, with cereals playing a central role due to good agro ecology by nature. Grain production and marketing are particularly important in the country. Study showed that cereals account for 65 percent of the agricultural value added, equivalent to about 30 percent of the national GDP of Ethiopia. Maize is Ethiopia's largest cereal commodity in terms of total production, acreage, and the number of farm holdings and participants in maize production (IFPRI, 2010). So maize continues to be a significant contributor to the economic and social development of Ethiopia. As the crop with the largest smallholder coverage at 8 million holders (compared to 5.8 million for teff and 4.2 million for wheat), maize is critical to smallholder livelihoods in Ethiopia. In addition, maize is the staple food crop with the greatest production of 4.2 million tons in 2007/08, compared to teff at 3.0 million and sorghum at 2.7 million tons and has been the leading cereal crop in Ethiopia since the mid-1990s in terms of both crop yield and production and also the single most important crop in terms of the number of farmers engaged in cultivation (IFPRI, 2010).
According to IFPRI (2010), maize also plays a central role in Ethiopia's food security being as a stable food crop due to this, effective maize sector could boost Ethiopia's food production to quickly reduce the national food deficit and keep pace with a growing population if able to reduce losses.
According to Demeke (2012), due to too many small actors that provide marketing services maize value chain is very long. Application of the value chain have become a key concept in international discussions on development in linking business to business which includes input suppliers, producers, traders, processors and exporters and its way to the forefront of management thought as a powerful analysis tool for strategic planning. Particularly, the effects of globalization on employment and poverty reduction, ensuring that gender issues are taken into consideration in chain-related interventions as a vital means for facilitating the development of inclusive value chains that benefit both women and men. Addressing gender inequality is one aspect of improving smallholder welfare in the maize value chain, and the broader agricultural sector (Ethiopian ATA, 2013). Development organizations that intervene in value chains are increasingly looking for pro poor and gender equal outcomes; nevertheless gender is not always mainstreamed in analysis, design and impact assessment in value chain development. So developing the position of women in agriculture has positive effects on a number of important development outcomes, including food security, child nutrition, and pro-poor value chain developments.
According to WRI (2013), major food loss and waste occur in different stages of the food value chain, 24 percent of global at production, another 24 percent during handling and storage, and 35 percent of consumption which accounts together account for more than 83 percent of global food loss and waste According to IFPRI (2010), estimates on PHL for cereals range from 20 to 40 % of gross production. Taking the lower bound estimate of 20 %, and given maize production is 4.2 million tons, cutting post-harvest loss in half will result in an additional marketable surplus of 420,000 tons in Ethiopia and out of 382570.8 ton total production of maize in Jimma zone, 38,257.08 tons marketable surplus will be obtained (Table 3) for the 2010 production season.
Source Jaspreet et al, (2013).
Figure 1. Conceptual frameworks for estimating post harvest food losses.
Amarender (2013), states that with growing of income of consumers which shifts the tastes and preference of the commodity, and urbanization 'the demand for value-added commodities like ready-to-cook food items and agricultural commodities are growing fast'. With rapid increases in globalization, global value chains have been significantly affecting changes in agricultural and food standards. One of the additional strengths of value chain analysis and development's holistic approach is its potential for consideration of men and women's participation at every stage of agricultural supply chains and gender dynamics in value chains (Christopher and Jonathan, 2011). Therefore it is very important to undertake to undertake research on maize post harvest management along its value chain to reduce loss and add value.
1.2 Statement of Problem
Value chains transform agricultural commodities from raw material to end products demanded by the consumers. There are a number of actors and stakeholders involved in the agricultural commodity value chains and the partitioning of gains among the stakeholders along the chain is often debated when market performance evaluated by analyzing the costs and margins of marketing agents in different channels. There is however, little understanding about the various concepts used in value chain analysis specifically addressed to developing countries and on how smallholder farmers can participate in the value chains where farmers, traders, wholesalers, retailers, big retail chains and consumers are major actors in the value chain (Aksoy, 2005).
Food production is currently being challenged by limited land, water and increased weather variability due to climate change. There are many problems after harvest that cause loss due to poor post harvest management in Ethiopia, which contributes a lot for many Ethiopians not to become food self sufficient and leads to many people of the country those with who do not own land and production resources to become poor and become beggars. At one point along the supply chain PHLs may appear small, yet the cumulative figure across the value chain could be quite significant. According to Aulakh and Regmi (2013), food availability needs to be also increased through reductions in the post-harvest process at farm, retail and consumer levels which also helps to achieve the goals of food security in addition to increasing production and productivity of the crop. Gustavasson et al. (2011), states that about 1.3 billion tons of food are globally wasted or lost per year. Due to this, value chain approach was considered a necessary tool for assessing Post Harvest Management (PHM) to reduce losses. So it is very imperative to reduce PHL along the chain and add value to contribute for food security in the intended study area.
Different activities of post harvest management practices are under taken by both men's and women's where women's less likely to be paid and employed which brings gender inequality. So, understanding women's position in a value chain, how changes in a value chain might affect gender inequality, and the main constraints for women in terms of gaining from value chain participation, which requires one to pl ace gender in the context of intra-household bargaining and of broader social processes dimensions (Parpart et al. 2002, Wyrod, 2008 and Laven et al. 2009). World Development report dedicated to gender equality and development warns that the failure to recognize the roles, differences and inequities between men and women poses a serious threat to the effectiveness of agricultural development strategies (World Bank, 2012).
Maize is Ethiopia's largest cereal commodity in terms of total production, acreage, and the number of farm holdings (IFPRI, 2010). According to Ethiopian Agricultural Transformation Agency (ATA), (2013) value chain component and postharvest handling were among strategic challenges indentified for maize sector development and Jimma zone as one area. Therefore, Jimma zone as a major potential area of maize producing area in southwest part of Ethiopia and maize is main staple food of the population it is very important to undertake this study due to no research done previously in the area so as to reduce loss and add value. In addition, knowledge among practitioners and policy makers on the gender aspects of value chain interventions is still limited.
'A gender approach to value chain analysis and development allows for the consideration of groups and individual men and women's access to productive activities; differential opportunities for upgrading within the chain; gender-based division of activities; and, how gender power relations impact economic rents among actors throughout the chain' (USAID, 2009).
Using a gender lens in analyzing the situation of small-holder farmers contributes to the development of demand-driven solutions that consider and address the needs, constraints, opportunities and capacities of both men and women farmers. Undertaking gender analysis to understand the level of participation of women farmers (female heads of households, married women and female youth) in the different components of the value chain, is an integral part of any value chain development process (Ethiopian ATA, 2013).
Therefore, due to research gap in Jimma zone, this study is to analyze the role of gender in post harvest management of maize and which gender issues are important when and where in value chains based on findings of existing evaluations complemented by other relevant studies. This is because women are assumed to be more disadvantaged than men so that they can benefit in the context of value chain operations. Therefore by studying the role of gender in postharvest management along the value chain by gender division of labor in food loss and food waste reduction campaigns could result in greater reductions even though it varies based on social setup, than pursuing production of additional food as unfocused campaign.
1.3 Objectives of the Study
1.3.1 General Objective
The general objective of this research work will be to analyze gender division of labour in maize post harvest management along value chain in Jimma Zone, southwestern part of Ethiopia
1.3.2 Specific Objectives
1. To identify postharvest management activities of maize in the study area
2. To assess gender role in maize postharvest management activities
3. To identify maize value chain actors and their roles
4. To determine benefit share of each actor in the chain
5. To map gendered maize value chain
1.4 Research Questions
1. What are the major types of post harvest management activities undertaken in the study area?
2. What gender based division of labor in maize postharvest management activities in the study area?
3. What are the existing types of chains in the study area?
4. Who are the major participants or actors of maize value chain in the study area?
5. What are the value addition activities performed by different actors along the chain?
6. What do the gendered distribution of value of all actors along the chain?
1.5 Significance of the Study
The finding will help as an indicator of the status of Millennium Development Goal (MDG)-Goal 3 'Promote gender equality and empower women' that assumed to be achieved by year 2015 in the country in general and Jimma Zone, the southwestern part of the Ethiopia in particular. Information to be generated will help a number of organizations including research and development organizations, extension service providers, government and non-governmental organizations to assess actor's activities, redesign their mode of operations in post harvest activities to reduce loss and add value, and ultimately influence the design and implementation of policies and strategies like Ethiopian ATA. It also provides a holistic picture of existing challenges, opportunities and entry points in reducing post harvest loss and development of added value in the maize value chain.
1.6 Scope and Limitation of the Study
The study had limitations of coverage of all Jimma Zone Districts, due to the obvious constraints of time and resource. In addition the study do not include other sectors gender division of labor which is only limited to post harvest management activities that actors of maize value chain from producer to consumer undertake and inability to go up to central market, Addis Ababa, capital city of Ethiopia.
2. LITERATURE REVIEW
2.1 Definitions and Concepts
Gender describes the socially constructed characteristics of women and men in a given society or culture. Through interaction, socialization, and work and family roles, women and men learn to be different in behavior and attitudes which vary greatly within and between cultures and over time. Gender is learned, dynamic, and changes over time as the society become aware of gender equalities. The concept of gender makes it possible to distinguish the biologically founded sexual differences between women and men from the culturally determined differences between the roles given to or undertaken by women and men respectively in a given society (Ostergaard, 1997).
Gender is a concept that deals with the roles and relationships between men and women that are determined by social, cultural, religious, ethnic, economic and political factors and not by biology. Gender roles and relationships are a key determinant of the distribution of resources and responsibilities between men and women, and thus both reflect and determine power relations between them. However, as they are socially determined, this distribution and the related power relations can and do change in response to new economic opportunities and market forces, and can also be changed deliberately through social action and public policy (FAO, 2007).
According to Ethiopian ATA (2013) in 2010, women accounted for 48% of agricultural labor in Ethiopia, and were responsible for 60-80% of household food production. However, despite the significant involvement of women farmers (including female heads of households, married women and female youth) in agricultural production and marketing, the extension system historically has not identified and integrated the specific needs of women farmers and has instead taken a 'one-size-fits-all' approach.
2.1.2 Post Harvest Management Activities
Ethiopia's geography is extremely diverse and wide variations in altitude, rainfall, and connectivity, where much of the country is arid with highly unreliable rainfall and the rain-soaked highlands of the west feed the Nile. Because of the diversity in agro-ecology across the country, the population is dependent on a variety of staples, most significantly teff, wheat, maize, sorghum and barley where the farming practices are traditional and the situation is aggravated by the underdeveloped transportation infrastructure which inhibits access to markets (US Bureau of Economic and Business Affairs, 2013).
Maize harvesting is the single deliberate action to separate the cob from its stalk. In Jimma Zone, farmers try to let to stay on the farm until it gets dry without any moisture test. These expose the crop to different damages caused by cattle's and unseasonal rainfall. According to FAO (2003), the optimum time of harvesting maize is when the stalks have dried and moisture of the grain as about 20-17% and the harvested the maize cobs have to be transported to the crib without putting them on soil to avoid contamination.
Shelling/ threshing either removal of maize grain from the cob and winnowing cleaning, this involves separating the shaft in broken bits of cob from the grain. Abebe and Bekele (2006) states that, maize is shelled manually in staggered manner when required for consumption or sale but can also be done by using hired machines especially when production is large. But according to the FAO (2011), Shelling can also be commonly done by beating maize cobs with a stick in a sack or a confined floor space where farmers can afford it. In contrast to this beating maize will result in physical damage which makes it more vulnerable to pests and moulds and damage to the germ. Using a maize Sheller is preferred although it will not be afforded by most farmers. According to FAO (2003), maize shelling will be more efficient when the moisture content of the grain reaches to 13-14% but difficult at a moisture level content above 25 percent.
In Ethiopia, most farmers use traditional methods of shelling, such as hand shelling and beating sacks for shelling (IFPRI, 2010). Low cost equipment is available and can reduce much of the current high and tedious labor requirement shelling and cleaning maize. These also can yet be within the financial means of the small holder farm household. This Category Include: Hand-held devices of various designs and outputs; Small rotary hand Sheller and Free standing manually operating Sheller (FAO, 2003).
According to FAO (2003), even though losses can occur due to the transportation of the crop are generally small, 1 to 2 percent to, within, and off-farm depend on the type of transport facility used, efficiency of transport facility, quantity of crop transported, ground conditions and surface of the transportation vehicles. This done by traders, transporting from the districts to Jimma town and central market, which is located in Addis Ababa, capital city of Ethiopia.
After harvesting, the greatest enemy of grain is moisture. Wet grains and attract insects and mould. Therefore, the grain must be dried as soon as possible after harvesting. Drying is the systematic reduction of crop moisture down to safe levels for storage, usually 12%-15.5% moisture content. It is one of the key post harvest operations since all down-stream operations depend on it (FAO, 2011).
Drying permits the escape of moisture from grain moisture to an acceptable level, which can sustain very low metabolism. The enzyme activities and grain tissue respiration is reduced to a very low level, thus inhibiting sprouting/germination. During drying, the dry air rapidly takes moisture away from the grain, especially if the air is moving and got low humidity. Grain can be dried in a crib before shelling and on tarpaulins after it has been shelled and avoid drying the maize on the ground. Grain that is in contact with the ground will absorb moisture and pick up dirt and insects. Drying maize on plastic sheets or mats is becoming a common practice with farmers who are trying to keep maize off the ground during drying (FAO, 2011).
Maize can store for a considerable period in unprocessed form without undergoing deterioration. Its shelf life greatly depends on the prevailing ambient temperature and relative humidity, and other factors like the inherent moisture, insect pests and diseases. Therefore, recommended post harvest handling and managing operations involve the manipulation of the above factors in order to obtain high quality maize grains.
Storage methods vary among the different market participants. Most of the farmers in Ethiopia use a traditional storage system or local granaries called gottera, gorbo, or gumbie. They also use traditional facilities for maize storage, such as dibignit and gottera mud structures, which are likely to increase post-harvest losses (IFPRI, 2010). These are made of maize and sorghum Stover or interwoven sticks of bamboo plastered with dung. The roof is made of grass and kept outside the house to avoid high temperature. To avoid termite and rodent problems, farmers keep the granaries 50-75cm above the ground (Dereje and Abdissa, 2001).
The principal objective in any maize grain storage system is to maintain the stored grains in good condition so as to avoid deterioration both in quantity and quality. During storage, if the grain remains dry and clean, storage can be extended for up to 2 years without any significant reduction in quantity and quality. However, majority of farmers sell off their maize grains cheaply soon after harvesting due to need of cash and also anticipated losses in storage and later buy food and grain seed for sowing at exorbitant prices. There are improved storage structures that can prolong the storage duration until market prices for grains are favorable (FAO, 2011).
Here is referred the storage at house hold and village storage systems. This depend of the ability of smallholders farmers, individually or in group to store a significant part of their harvest contributing considerably to attainment the national food security and eliminating consequently hunger spreading. At small rural farmer level storage start as the crop enters drying, however very often the storage occurs after the crop has been dried. It may be in the cob or shelled grain which may or not be chemically treated (FAO, 2003).
Dereje and Abdissa (2001), states that farmer's needs improved farm storage facilities to overcoming the problem of storage losses at the farm level which have two-fold effect. First, farmers wouldn't sell their produce immediately after harvest time at a low price. Second, due to the decline in losses of stored produce for home consumption, supplies increase proportionately for consumption. Improved storage will help farmers store grain for later sale and consumption, and should reduce seasonal price fluctuation. Most of the farmers also use insecticides for grains that cannot be consumed rather for seed purpose for the next farming season. The MOA needs to give emphasis to post harvest technologies such as grain storage facilities.
Nearly, all grains are sold on the market in unprocessed form. Grinding of grains can be carried out by: (1) wooden pestle and mortar; (2) using two stones of different size specially cut for grinding; or (3) using flour mills. Even though the traditional way of processing food grains is time consuming and burdens of rural women, on the other hand it limits their participation in agricultural production. There is also an uneven distribution of flour mills. They are concentrated in the towns; very few, with insufficient capacity to serve all people, are found in the rural areas. As a result, farmers have to travel long distances to the towns or nearby flour mills to get their food grain processed. Many working hours are lost by the farmers, which might have been otherwise used in other aspects of agricultural production (Dereje and Abdissa, 2001). So, the difficult, repetitive work of women grinding the maize with traditional methods is a way in which small-holder farmer families overcome the constraint of not having access to a mill locally.
Milling is one method of maize processing that takes place in a different way. The maize kernel is transformed into valuable foods and industrial products by two processes, dry milling and wet milling. The dry milling of maize as practiced today has its origins in the technologies used by the native populations who domesticated the plant. The best example is the method used to make arepa flour or hominy grits while the largest volume of maize in developed countries such as the United States is processed by wet milling to yield starch and other valuable byproducts such as maize gluten meal and feed (FAO, 2003).
The food grain flow begins with the farmer who, after harvest, decides how much he/she wants to store for household consumption, seed and payment in kind and sells the remaining food grain (market supply) to a trader or consumer in order to settle debts and contributions, taxes and to purchase consumer goods. The hierarchy of the food grain marketing system from small rural markets at the top and the terminal urban markets at the bottom consists of a number of different steps and types of grain traders (Dereje and Abdissa, 2001). The figure below illustrates how the various participants were linked to the complex network of marketing channels for food grain.
Source: Dereje and Abdissa, 2001
Figure 2: Food grain marketing channels in Ethiopia
The essential components of marketing include transportation, storage, processing, information services and financial services. These components are important for the improvement and development of the marketing system.
According to Ethiopian ATA (2013), the supply of maize grain from producers and other actors is often not suitable for industrial uses for several different reasons, including pest infestation caused by poor storage conditions, cultivation of varieties undesirable for industry, and a generally low grade of quality. Hence the use of maize as raw materials for agro-processing is very low relative to overall production, particularly when compared to the industrial use of wheat in the country. Although certain maize varieties have been released that are better suited for various uses in terms of color, yield and agro-ecological merits, these varieties are not fully utilized by the farmers and processors. Moreover, maize processors do not have adequate knowledge about quality differences among different maize varieties for processing. So far the only selection criterion for processors to purchase maize as raw material is color and smell of the grain.
2.1.3 Post Harvest Loss
According to Abebe and Bekele (2006), Post-harvest loss is the loss (which can be quality and/or quantity) between the moments of harvest to consumption of the crop. Even though losses is a concept which is difficult to define, quantitative losses eventually give a broad picture of where the losses were occurring and their relative scale, and how a specific crop is handled during the post harvest operations (FAO, 2003).
According to US Bureau of Economic and Business Affairs (2013), maize suffers from a number of postharvest challenges in Ghana, ranging from poor harvesting, drying, and shelling practices, to lack of adequate storage infrastructure. Most smallholders shell their maize by hand, or by beating with sticks, leading to breakage. This is followed by drying on the ground, leading to infestation, high percentages of foreign matter, and high moisture content that can lead to mycotoxin contamination.
The study conducted in Gojam Zone Amhara regions on postharvest losses by US Bureau of Economic and Business Affairs (2013) stated that, losses occur at different stages such as harvesting, threshing, winnowing, transporting and storage, with storage being the stage at which the biggest loss occurs. The causes of postharvest losses are multiple, however, the most significant losses are caused by pests (inspects and rodents), by lack of appropriate storage facilities, by inappropriate packaging, and by inadequate means of transportation. According to the African Postharvest Losses Information System (APHLIS, 2012) postharvest losses for teff were estimated at 12.3%, for sorghum at 11.6%, for wheat at 9.9% and for maize at 16.8%.
22.214.171.124 Food Loss and Waste
According to World Resource Institute (WRI, 2013), 'food loss and waste' refers to the edible parts of plants and animals produced or harvested for human consumption but not ultimately consumed by people. It represents a decrease in the mass, caloric, and/or nutritional value of edible food intended for human consumption at any stage in the food value chain. 'Food loss' refers to food that spills, spoils, incurs an abnormal reduction in quality such as bruising or wilting, or otherwise gets lost before it reaches the consumer. Food loss typically occurs in the production, storage, processing and distribution stages of the food value chain, and is the unintended result of agricultural processes or technical limitations in storage, infrastructure, packaging, and/or marketing while 'Food waste' refers to food that is of good quality and fit for human consumption but that does not get consumed because it is discarded either before or after it spoils. Food waste typically, but not exclusively, occurs at the retail and consumption stages in the food value chain and is the result of negligence or a conscious decision to throw food away.
The post-harvest system should be thought of as encompassing the delivery of a crop from the time and place of harvest to consumption, with minimum loss, maximum efficiency and maximum return for all involved (Philip et al. 1996).
Increasing agricultural productivity is critical for ensuring global food security, but this may not be sufficient. Food production is currently being challenged by limited land, water and increased weather variability due to climate change. To sustainably achieve the goals of food security, food availability need to be also increased through reductions in the post-harvest process at the farm, retail and consumer levels. Food and Agriculture Organization of U.N. predicts that about 1.3 billion tons of food are globally wasted or lost per year (Gustavasson, et al. 2011). The reduction in these losses would increase the amount of food available for human consumption and enhance global food security, a growing concern with rising food prices due to growing consumer demand, increasing demand for bio-fuel and other industrial uses, and increased weather variability (Mundial, 2008; Trostle, 2010). A reduction in food also improves food security by increasing the real income for all the consumers (World Bank, 2011).
According to (IFPRI, 2010), the final major challenge that maize farmers face is high post-harvest losses, with estimates varying from 20 to 40 percent of the gross production according to assessment conducted by IFPRI, slightly lower level of 15 to 30 percent; with losses concentrated at the farm level. Losses were found to be driven primarily by the timing of harvesting, shelling methods, and the type of storage devices. On-farm storage structures, such as dibignit and gotera, can also make maize susceptible to different types of damage, including weevil and rodent attacks, which cause substantial loss of stored grain. Moreover, harvesting and crop management practices are sub-optimal in the sense that there are losses resulting from improper handling, threshing, and transporting. Loss variations among different country groups can be attributed to the changing food demand patterns at different income levels. Increases in per capita income levels of households across the world are contributing to major changes in food demand patterns (Regmi, et al. 2001).
Source: Jaspreet and Anita, 2013
Figure 3: Food losses vary by commodity across countries.
2.1.4 Value Chain
Value Chain is the entire range of activities required to bring a product/service from conception through different phases of production and transformation to consumption level and then final disposal after use (Kaplinsky and Morris, 2001).
Value chain: According to Miller and Dasilva (2007) (cited in Miller, 2012, p .5), value chain is 'the set of actors (private and public, including service providers) and the sequence of value-adding activities involved in bringing a product from production to the end-consumer'. In agriculture they can be thought of as a 'farm-to-fork' set of inputs, processes and flows.
Value chain analysis: According to Fries (2007) sited by Miller (2012), is the assessment of the actors and factors that influence the performance of an industry and relationships among participants to identify the main constraints to the increased efficiency, productivity and competitiveness of an industry and how these constraints can be overcome. Kaplinsky and Morris (2001) also states that, value chain analysis can be used to overcomes a number of important weaknesses of traditional sectoral analysis which tends to be static and suffers from the weakness of its own bounded parameters.
Value chain finance: define as 'The flows of funds to and among the various links within a value chain comprise what is known as value chain finance' which do not include conventional agricultural financing from financial institutions. It is also considered as any or all financial services, products and support services flowing to and/or through value chain participants to address and alleviate constraints such as need for finance, need to secure sales, procure products, reduce risk or to improve efficiency within the chain actors and also critical to facilitate both product flow and upgrading of the chain which in turn helps in expanding rural finance and for developing enterprises.
Value-added activities are born from the necessity to adapt to the wide-ranging changes affecting the agriculture and agri-food industry. These changes stem from many interacting factors: the quick expansion of agricultural trade and the resulting concentration in the agri-food industry, an increasingly segmented consumer base, shifting consumer preferences, changing demographics and income profiles, innovation in food and non-food uses of agricultural products and trade related issues, including border closures, in an increasingly integrated global market (AAFC, 2004). The move to value-added agriculture is fundamentally market-driven. Due to this, value-added agriculture has attracted considerable attention in recent years as a means to increase and/or stabilize farm incomes and to rejuvenate primary agriculture and the rural economy.
The value chain analysis and development approach, as widely applied to pro-poor economic development, is well suited to addressing gendered market development issues for two reasons. First, it has economic viability and sustainability at its core and aims for win-win outcomes for all participants. Second, it is a strong qualitative diagnostic tool that is capable, if employed skillfully, of identifying critical issues and blockages for specific target groups and then generating robust and effective policies and development strategies (Christopher and Jonathan, 2011).
2.1.5 Why Gender and Value Chains?
The economic liberalization policies that accompany global trade have heavily impacted employment opportunities, quality of employment and standards of living while accentuating inequality and exacerbating or aggravating power imbalances. Inequality appears to have been on the rise worldwide at both national and international whereby more than 80 per cent of the world's population lives in countries where income differentials are widening (UN, 2010).
With the growing division of labor and the global dispersion of the production of components, systemic competitiveness has become increasingly important. Therefore, Value chain analysis has an important role to play here. What it does is to ensure that the analysis treats the whole cycle of production, including that governing connectedness to final markets. This forces the analysis to consider not just the efficiency of the production link in the chain, but also those factors which determine the participation of particular groups of producers in final markets (Kaplinsky and Morris, 2001).
In agricultural settings, even though women's do a large part of farm activities, their work are often not visible. Moreover according to Mayoux (2010), women-owned rural businesses tend to face many more constraints and receive far fewer services and support than those owned by men. These gender inequities arise from disparities in access to factors of production and education, from gender disparities in time budgets (time poverty), gendered labor markets, and power imbalances or cultural norms that affect the participation of individuals in decision making (Kaplinsky and Morris, 2001).
Women in both developing and developed countries have an important role to play in reducing food loss and waste, since women interact with food at each stage of the value chain from production to consumption. Close to the farm, women comprise 41 percent of the agricultural workforce worldwide and make up the majority of agricultural workers in South Asia and Sub-Saharan Africa (FAO, 2007), (World Bank, FAO and IFAD, 2009). Close to the fork, surveys on a wide range of countries show that women are responsible for 85-90 percent of the time spent on household food preparation according to World Food Program (2013).
According to Ethiopian ATA (2013), gender mainstreaming should be employed as a key strategy in order to address the challenges of women farmers across the maize value chain and enhance the competitiveness of the value chain through increasing their efficiency and effectiveness. The objective of gender mainstreaming in value chain programs is to ensure the participation and benefit of women, men and youth farmers. Therefore, targeting women in food loss and food waste reduction could result in greater reductions than pursuing an unfocused campaign.
2.2 Maize Value Chain Diagnostic Findings
The maize value chain in Ethiopia involves multiple actors, including: input suppliers, producers, traders (local assemblers and wholesalers), retailers and processors, and consumers. There are many actors between the producers and the consumers, all performing various activities at different scales of operation, for instance, a recent study found that a typical trader in Ethiopia operates within a radius of only 64 kilometers, suggesting that grains change many hands before reaching consumers, as grain often travels much further than 64 kilometers to consumers (IFPRI, 2010).
According to (IFPRI, 2010) Maize is the largest and most productive (kg/hectare) crop in Ethiopia (Table 2). In 2007/08, maize production was 4.2 million tons, 40 percent higher than teff, 56 percent higher than sorghum, and 75 percent higher than wheat. With an average yield of 1.74 tons per hectare (equal to 3.2 million tons grown over 1.8 million hectares) from 1995 to 2008, maize has been the leading cereal crop in Ethiopia since the mid-1990s in terms of both crop yield and production. Wheat and sorghum yields have averaged 1.39 and 1.36 tons per hectare, respectively. So value chain development can also foster overall coordination in the chain; participation of selected beneficiaries in local, national or global value chains; reduction of entry barriers and a higher share of value added for certain actors.
2.2.1 Challenges in the Maize Value Chain
Rapid changes in the social and economic environment are making it challenging for smallholders to supply their products to the market and to improve their families' livelihoods. A series of constraints span the maize value chain in production, aggregation and trading, and demand sinks, or the end markets. High-level findings are presented below (IFPRI, 2010).
Even though maize has more potential of higher productivity than other crops in Ethiopia, there are also challenges with maize sector. According to IFPRI (2010), production stage challenges and opportunities of maize farmers in Ethiopia face a series of challenges that limit their overall production and income. The key challenges are, broadly categorized into three groups, lower yields due to limited use of modern inputs, majority of sales immediately after harvest and high post-harvest losses (both on- and off-farm)
Cereal producers in Ethiopia are primarily smallholder farmers. They face a range of constraints across the value chain from production to aggregation and trading to commercialization that limit their productivity and incomes. Production involving input acquisition, planting, growing, and harvesting is the key activity in the maize value chain. Maize production activity is performed by three types of actors: subsistence farmers characterized by small land ownership and low utilization of yield enhancing technologies, where maize is produced and consumed immediately after harvest in form of sweet corn and grain which are by far the major actors as maize producers, both in terms of numbers and in terms of total product volume; market-oriented smallholders where maize is produced and sold to the market, and commercial farmers producing maize for food and feed industries (IFPRI, 2010).
Subsistence farmers are by far the major actors as maize producers, both in terms of numbers and in terms of total product volume. These actors are characterized by small land ownership (usually less than 2 hectares) and low utilization of yield enhancing technologies such as hybrid seeds and chemical fertilizers. At an aggregate level, less than 5 percent of the farmers use high yielding seed, and 5 percent of the farmers apply chemical fertilizers. Women are involved in maize production at different stages, including 60 percent of the maize processing in Ethiopia, and family labor is the major source of farm labor. Productivity remains below potential due to low input usage and limited crop rotation; there is significant post-harvest loss of 15 to 30 percent of production, primarily on-farm; national maize commercialization rates are low at approximately 20 to 30 percent; most marketable surplus is sold within three to four months of harvest when prices are lowest due to farmers' cash needs and risks associated with pest infestation and other storage losses, and; smallholders are vulnerable as producers and consumers to food safety concerns from aflatoxins (IFPRI, 2010).
Aggregation and Trading
There is a lack of a fully functioning maize market, reflecting a weak industry structure. Four inter-linked issues have been observed as primary contributors to this situation: (i) price volatility, with intra-annual price swings up to 40 to 50 percent; (ii) lack of a year-round market, with most trading activity three to four months after harvest; (iii) lack of depth, or sufficient supply, and (iv) quality of maize (IFPRI, 2010).
On-farm consumption is the largest source of demand today, with few large, downstream buyers and limited processing activity. The most attractive demand sinks for maize are in food and livestock feed, with potential demand of 800,000 tons of cereal demand for food and upwards of 450,000 tons of maize demand for feed (IFPRI, 2010).
2.2.2 Future Potential
Improving and strengthening the maize value chain in Ethiopia has the potential to generate significant benefits for small-scale producers. The benefits can be derived largely through productivity increases and improvements in marketing. Given that a very large number of smallholders are involved in maize production, increased productivity (e.g. achieving the potential productivity level demonstrated in on-farm trails) will directly benefit poor farmers only if marketing is simultaneously improved. This can trigger multiplier effects, including increased off-farm income and increased income from diversification to other crops. Furthermore, increased productivity can lead to better soil health management, as more can be produced from smaller land, providing farmers with opportunities to rotate crops and diversify their crop portfolios (IFPRI, 2010).
There are various estimates of Ethiopia's potential for maize productivity. On-farm trials suggest a yield potential of 4.7 tons per hectare compared to the 2008/09 national yield estimate of 2.2 tons per hectare. According to (IFPRI, 2010), there are various estimates of Ethiopia's potential for maize productivity. On-farm trials suggest a yield potential of 4.7 tons per hectare compared to the 2008/09 national yield estimate of 2.2 tons per hectare. Improvements in smallholder income from maize interventions can also be drawn from improvements in handling, storage and marketing. This implies that yield can be more than doubled. Yield growth potential for maize is much higher compared to other cereals, such as wheat, sorghum, and barley. Achieving the yield potential of maize would be possible through interventions such as improved technology adoption among smallholder farmers (e.g., chemical fertilizers, improved seeds, integrated pest management) as well as measures to reduce soil degradation (e.g., crop rotation), irrigation practices, and improved technical efficiency are recommended interventions in other components of the agricultural system soil health, irrigation, improved seed, finance, and extension.
Storage and Handling
Storage of food is necessary at all points of the food chain from raw materials, through manufacture, distribution, retailers, and final purchasers. Today's consumers expect a much greater variety of products, including non-local materials, to be available throughout the year. Storage of materials, whose supply or demand 'uctuate in a predictable manner, especially seasonal produce, is necessary to increase availability. It is essential that processors maintain stocks of raw materials; therefore storage is necessary to buffer demand. However, storage of raw materials is expensive for two reasons: stored goods have been paid for and may therefore tie up quantities of company money, and secondly, warehousing and storage space are expensive. All raw materials will deteriorate during storage. The quantities of raw materials held in store and the times of storage vary widely for different cases, depending on the above considerations. The ''just in time'' approaches used in other industries are less common in food processing. The primary objective is to maintain the best possible quality during storage, and hence avoid spoilage during the storage period (Brennan, J. et al. 2012).
Sorting and Grading
Sorting and grading are terms which are frequently used interchangeably in the food processing industry, but strictly speaking they are distinct operations. Sorting is a separation based on a single measurable property of raw material units, while grading is ''the assessment of the overall quality of a food using a number of attributes''. Grading of fresh produce may also be de'ned as ''sorting according to quality,'' as sorting usually upgrades the product. Virtually all food products undergo some type of sorting operation. There are a number of bene'ts, including the need for sorted units in weight 'lling operations, and the aesthetic and marketing advantages in providing uniform-sized or uniform-colored units (Brennan, et al. 2012).
Food transportation is an essential link in the food chain. Raw materials, food ingredients, fresh produce, and processed products are all transported to a local and global level, by land, sea, and air. In the developed countries, where consumers expect year-round supplies and non-local products, long-distance transport of many foods has become commonplace, and air transport may be necessary for perishable materials. Transportation of food is really an extension of storage; a refrigerated truck is basically a cold store on wheels. However, transport also subjects the material to physical and mechanical stresses, and possibly rapid changes in temperature and humidity, which are not encountered during static storage. It is necessary to consider both the stresses imposed during the transport and those encountered during loading and unloading (Brennan, J. et al. 2012). In Ethiopia, transportation facilities are poorly developed and as a result the dominant means of transportation for taking agricultural produce to local markets and bringing farm inputs to the farm are pack animals like donkeys, mules and horses and human beings which only allows to transport not more than 100 kg at a time.
As Dereje and Abdissa (2001) states, farmers after harvest, decides how much he wants to store for household consumption, seed and payment in kind and sells the remaining food grain (market supply) to a trader or consumer in order to settle debts and contributions, taxes and to purchase consumer goods.
Benefits to smallholders can be increased by (i) improving the marketing and (ii) increasing their share in the retailing:-Taking the lower bound estimate of 20 percent, and given maize production is 4.2 million tons, cutting post-harvest loss in half will result in an additional marketable surplus of 420,000 tons. This translates into increased food security, with a larger food supply, and improvements in smallholder income if surplus grain is marketed (IFPRI, 2010).
Improving marketing: Currently, share of the farmers in the retail market is only about 4 percent. Raising farmers' share of end prices is possible by improving the negotiation capability of farmers, such as through cooperatives and other institutional mechanisms and aggregation models. Exploiting opportunities from sources of demand such as ready markets (corn flour, corn starch, local food aid procurement) and large scale expansion of the maize industry for latent demand sink (poultry feed, ethanol, and safety net programs) are estimated to generate incremental revenue of more than USD 550 million. Given a very long marketing chain, the smallholders do not currently capture much value. This can be changed through improved aggregation, market linkages, quality control and better handling of post harvest practices (IFPRI, 2010).
According to IFPRI (2010), at the aggregate level, the analyses in the diagnostic report suggest that there is a potential to increase smallholder income from approximately USD 60 per hectare today to USD 350 to USD 450 per hectare. This analysis is based on underlying assumptions about yield, waste reduction through post-harvest management, and availability of year-round market. For instance, the expected income growth to USD 350 is based on the assumption that smallholder farmers become high input users and increase their yield to four tons/ha. Under such an assumption, a farmer is likely to incur a cash cost of about USD 240 and generate an output value of USD 590, securing a cash margin of USD 350. If the potentials are realized, maize can also contribute toward improving food security and reducing land degradation (producing an incremental 1 million tons on 30 percent less land), as well as increase production value. For example, poultry industry can generate USD 360 to 580 million in value in 2020 and source maize for feed from 50,000 to 100,000 smallholders.
Table below (table 1) shows that the mean of 1995-2000 and 2001-2008 production of maize is increased when we compare with the other cereal production which shows maize is more productive relative to other cereals and also (table 2) confirm that the above cases holds true for maize production in Jimma zone.
Table 1: Mean of production and area by crop type (in '000 of tons and hectares)
year Teff Maize Sorghum Wheat Barley
Prod Area Prod Area Prod Area Prod Area Prod Area
Mean 1995-2000 1706 2094 2730 1624 1488 1164 1134 939 940 947
2000/1 1750 2094 3306 1651 1549 1170 1605 939 1107 945
2001/2 1645 2107 3050 1647 1572 1117 1461 991 979 957
2002/3 1950 2033 3154 1718 1774 1181 1646 1041 1132 988
2003/4 1687 2110 2744 1766 1784 1237 1618 1110 1087 1019
2004/5 2048 2098 2906 1810 1718 1297 2213 1139 1376 1077
2005/6 2247 2117 3912 1804 2200 1328 2307 1213 1398 1109
2006/7 2463 2143 4124 1883 2340 1393 2500 1288 1470 1157
2007/8 3025 2263 4162 1978 2685 1452 2382 1382 1467 1172
Mean 1949 2194 3154 1805 1774 1301 1646 1181 1132 1050
Source: IFPRI, (2010).
Table 2: Status of maize production for Meher Season of 2012/13 of Jimma zone
Crop Number of holders Area in hectare Production in quintal Yield (qnt/heck)
Cereal crops 13,590,449.00 9,601,035.26 196,511,515.46
Teff 6281777.00 2730272.95 37652411.66 13.79
Barley 4461619.00 1018752.94 17816522.08 17.49
Wheat 4844368.00 1627647.16 34347061.22 21.10
Maize 9289203.00 2013044.93 61583175.95 30.59
Sorghum 4953837.00 1711485.04 36042619.65 21.06
Finger Millet 1577250.00 431506.89 7422971.46 17.20
Oats/Aja 262000.00 26514.10 436337.83 16.46
Rice 115832.00 41811.25 1210415.62 28.95
Source: CSA, 2012/13 (2005E.C).
Table 3: Maize production of Jimma zone Districts
S/no District year
2008 2009 2010 2011 2012
He Qts He Qts He Qts He Qts He Qts
1 C/ Botor 10493 216571 11095 321691 12784 359227 13249 450466 13268 488928
2 Dedo 10617 217082 10528 289467 8350 211176 8654 259620 10905.5 328048
3 Gera 7620 158719 7310 161644 5769 109902 5979.2 134740 5948.62 147107
4 Goma 12076 223492 11402 271920 8009 195036 8300 198736 6740 216977
5 Gumay 4360 91126 4264 123090 3659 89106 3792 87216 3687 120696
6 L/Kosa 13923 295323 14451 325155 13560 391541 14053 480027 14159 524087
7 L/Seka 12500 249267 12685 392258 12220 320474 12664 379920 11688.5 349891
8 Mana 9047 163675 9021 251513 6568 196860 6806.8 204204 5560 202428
9 N/Benja 4940 90955 2989 88092 5764 147130 5974 180381 6099 196937
10 O/Nada 13151 336775 14078 626725 14008 432967 14517 551646 9323 432452
11 Qarsaa 14673 351167 13010 449855 11591 347400 12012 436351 13226 476402
12 S/Chokorsa 14456 298644 15075 373905 12510 316374 12965 336397 11535 367274
13 Satama 7591 183298 6024 126110 5588 78507 5791 92656 3120 60746
14 S/Sombo 9722 203773 9262 236250 6075 142255 6296 157089 5092.5 171508
15 Sigimo 4703 91769 4821 88200 3937 55312 4080 65280 2500 44990
16 Sokoru 15162 321011 13560 385797 11627 315827 12050 357237 13025 390026
17 T/Afata 6324 128070 5660 160978 4150 116615 4301 129030 6626 277820
Source: Jimma Zone Agricultural Office Report, 2013 (unpublished) compiled by the author
In addition to the highest total production per annum and the highest per-hectare yield, maize is also the single most important crop in terms of the number of farmers engaged in cultivation. The vast majority of Ethiopian farmers are small-scale producers. Estimates show about 94 percent of Ethiopian farmers depends on less than 5 hectares of land, of which 55 percent cultivate less than 2 hectares. Eight million smallholders were involved in maize production during 2008/09 production season, compared to 5.8 million for teff and 4.5 million for sorghum, the second and third most cultivated crops in Ethiopia. So maize is instrumental for the food security of Ethiopian households, and is the lowest cost caloric source among all major cereals, which is significant given that cereals dominate household diets in Ethiopia (IFPRI, 2010).
2.3 Market Attributes of Maize
Market fundamentals determine both tradability and fluctuations of prices in maize. When a commodity plays a critical role in households' diets, such as maize in Ethiopia, variations in tradability and price can have serious implications for food security. The next two sub-sections examine the tradability and price volatility of maize (IFRI, 2010). According to (Ethiopian ATA, 2013) the maize market in Ethiopia has significantly improved over the past years, with markets now fairly integrated and smallholder farmers retaining the majority of the value within the market chain.
2.3.1 Non-Tradability of Maize
In Ethiopia, most cereals are non-tradable meaning they are neither exportable nor importable. As a result, with the exception of food aid import, all major cereals are domestically grown and consumed. In Ethiopia, cereals are non-tradable due to high costs of transporting cereals both from the main port in Djibouti to primary consumption areas and from the main production areas to the port. Thus, the cost of transport is so high that it is not profitable to import or export cereals. One way to examine further the tradability of a commodity is through import and export parity prices, which represent prices at which a commodity will be exportable or importable (IFPRI, 2010).
2.3.2 Price Instability
While price volatility is endemic to all markets, there has been excessive instability in the Ethiopian maize market as demonstrated by the high standard deviation and Coefficient of Variation (CV) in maize prices in Addis Ababa, capital city, relative to other geographic areas. Variation of commodity prices between locations and over time is a natural market phenomenon. In fact, price variation is necessary for the existence of a market, as it creates the incentives that attract market actors to engage in trade when prices increase.
Thus, it is not the variation in prices (across space and over time) per se that should be of concern to the policymakers, but rather excessive variability or, in some cases, little or no variability of staple food prices. Excessive variability of prices, to a large extent, is a reflection of a lack of market integration across space. On the other hand, little or no variability in prices has often been the outcome of policy interventions, such as pan- territorial pricing, which is what Ethiopia practiced in the 1970s and 1980s (IFRI, 2010). With relatively constant demand, price seasonality is driven by harvest seasons, with the lowest real prices in the months directly after the harvest period and higher real prices in the lean season before the following harvest period (Chapoto and Jayne, 2010). Major factors affecting price seasonality include rainfall patterns, geographic proximity of diverse growing seasons, storage costs, domestic transportation infrastructure, exchange rate movements, and discretionary governmental maize policy (Chapoto and Jayne, 2010).
These factors affect the level of maize stocks, which will ultimately drive price movement and returns to storage with relatively constant demand (Working, 1949; Alexander et al. 2005).
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