AMHARA NATIONAL REGIONAL STATE BUREAU OF TRADE AND …
Transcript of AMHARA NATIONAL REGIONAL STATE BUREAU OF TRADE AND …
Consultant: Institute for Economic Research (IER), Bahir Dar University P.O.Box 79 Tele +251-582-202025 e-mail: [email protected] website: www.bdu.edu.et
NEED ASSESSMENT OF MARKET INFORMATION
SERVICE PROVISION AND PLAN OF ACTION IN THE
AMHARA REGION
AMHARA NATIONAL REGIONAL STATE BUREAU OF TRADE AND TRANSPORT
AUGUST, 2014 BAHIR DAR, ETHIOPIA
AMHARA NATIONAL REGIONAL STATE BUREAU OF TRADE AND
TRANSPORT
Need Assessment of Market Information Service Provision
and Plan of Action in the Amhara Region
Consultant: Institute for Economic Research (IER), Bahir Dar University P.O.Box 79 Tele +251-582-202025 e-mail: [email protected] website: www.bdu.edu.et
Consulting Members
Dr Theodros Bekafa Project Coordinator and Contributor
Dr Daregot Berihun Project team leader, and MIS Economist
Aschalew Degoma Marketing Specialist
Surafel Melak MIS Economist
Amare Kasaw ICT Specialist and Engineer
Getinet Mammo ICT Specialist and Software Engineer
Tesfye Melaku Contributor
Contents
01. GENERAL SUMMARY .................................................................................................. 1
PART I: SITUATION AND NEED ASSESSMENT OF MARKET INFORMATION . 12
1. Introduction ....................................................................................................................... 13
1.1. Background .................................................................................................................. 13
1.2. Rationale for market information systems ................................................................... 15
1.3. Objectives of the study................................................................................................. 17
1.4. Data and methodology ................................................................................................. 18
2. Review of the horticulture market value chain .............................................................. 20
2.1. Horticultural production, availability, and quality ....................................................... 20
2.2. Horticultural crops production and marketing opportunities and challenges .............. 22
2.2.1. Production opportunities and challenges .............................................................. 22
2.2.2. Marketing opportunities and challenges ............................................................... 25
3. Assessment of regional and national market information system and services .......... 26
3.1. Organizational set up, work system and stakeholders of the market information in
Amhara Region ................................................................................................................... 26
3.2. Evaluation of the existing regional market information delivery ................................ 28
3.3. National and International best experiences of MIS and services ............................... 34
3.3.1. National best experiences ..................................................................................... 34
3.3.2. International best experiences ............................................................................... 39
3.4. Assessment and evaluation of the existing ICT and human resources deployment for
MIS service in the Amhara region ...................................................................................... 40
3.4.1. Regional level situation of ICT and human resources .......................................... 40
3.4.2. Assessment of existing regional level ICT for MIS.............................................. 40
Amhara National Regional State Bureau of Trade and Transport
Need Assessment Report of Market Information Service Provision and Plan of Action in The Amhara Region
3.4.2.4. Farmer‘s technological skill ............................................................................... 43
3.4.2.5. Existing human resource at regional and Woreda level..................................... 44
4. Major findings of the need assessment............................................................................ 46
4.1. Current market information provision and utilization by user groups ......................... 46
4.1.1. Farmers market information utilization and perception of the service ................. 47
4.1.2. Traders and brokers MI utilization and perception of the service ........................ 48
4.2. Observed problems on market information utilization and delivery ........................... 50
4.3. Identified needs for horticultural market information and potential roles ................... 56
4.3.1. Market information needs by user groups ............................................................ 57
5. Conclusion, recommendations and the way forward .................................................... 67
5.1. Conclusion ................................................................................................................... 67
5.2. Recommendations and the way forward ...................................................................... 68
PART II: PLAN OF ACTION FOR MARKET INFORMATION SERVICE
PROVISION .......................................................................................................................... 72
1. Intervention Actions and Plan for Market Information Service Provision................. 73
1.1. Objective of the plan .................................................................................................... 73
2. Proposed intervention actions and action plan .............................................................. 73
2.1. Objectives of the five key result areas ......................................................................... 74
2.2. Identified immediate key result areas and proposed activities plan ............................ 74
2.3. Proposed implementation plan ..................................................................................... 76
2.4. Implementation strategies and modalities .................................................................... 83
2.4.1. Implementation strategies ..................................................................................... 83
2.4.2. Market information collection, processing and dissemination design and strategy
......................................................................................................................................... 84
2.4.2. Budget and Cost Estimates ................................................................................... 86
Amhara National Regional State Bureau of Trade and Transport
Need Assessment Report of Market Information Service Provision and Plan of Action in The Amhara Region
2.4.3. Monitoring and Evaluation ................................................................................... 88
2.4.4. Opportunities and threats of the plan and its implementation .............................. 88
3. Proposed ICT, System Design and bid document .......................................................... 90
3.1. MIS Modeling and Design ........................................................................................... 91
3.1.1 Role and Responsibilities of Each Unit ................................................................. 91
3.1.2. Types of Information Flow in the Link ................................................................. 94
3.2. ICT-based MIS System Layout ................................................................................. 100
3.3. High Level System Description ................................................................................. 101
3.4. System Deployment and Implementation .................................................................. 102
3.4.1. Required Infrastructures...................................................................................... 102
3.5. Technical Bid Document for System Implementation ............................................... 105
3.6. ICT Implementation Action Plan Strategy .............................................................. 113
PART III: ANNEXES......................................................................................................... 118
1. Literature consulted........................................................................................................ 119
2: List of people contacted .................................................................................................. 120
Acronyms
AgroBIG Agriculture Business Induced Growth in Amhara region
ANRS Amhara National Regional State
BoA Bureau of Agriculture
BoFED Bureau of Finance and Economic Development
BoTT Bureau of Trade and Transport
CSA Central Statistical Authority
ECX Ethiopia Commodity Exchange
FGD Focus Group Discussion
GDP Gross Domestic Product
GTP Growth and Transformation Plan
ICT Information-Communication-Technology
ICT Information Communication Technology
IMIS Integrated Market Information System
IVR Interactive Voice Response
KII Key Informant Interview
LCD Liquid Crystal Display
MI Marketing Information
MIS Marketing Information System
MIS Market Information system
MoARD Ministry of Agriculture and Rural Development
SMS Short Message Service
TOR Terms Of Reference
VPN Virtual Private Network
XML eXtensible Markup Language
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01. GENERAL SUMMARY
Background
Market information plays an important role in the growth and development of the horticulture
industry. An efficient functioning of any marketing system is supported by a market
information system (MIS) that allows free flow of information along and across the
marketing chain. The existence of such systems facilitates informed decision making among
the various market players. Cognizant to such roles of MIS, the Bureau of Trade and
Transport of the Amhara region is working hard to support smallholder agribusiness
development based on horticulture value chain particularly in the irrigated areas. Sensible of
this goal, BoTT looked for a need assessment study, which is keen for identifying a
marketing information system i.e. a system that includes how marketing data are formally
gathered, analyzed, and disseminated to user groups in accordance with their informational
needs in regular basis through ICT tools. This horticultural market information system needs
assessment study is undertaken to attain the requisite of BoTT for an enhanced MIS through
following integrated objectives.
Objectives, methodology, and tasks accomplished
Upon the MIS need of BoTT, the overall objective of the study was; to conduct the situation
and needs assessment and analyze the state of the current market information service delivery
and make recommendations for possible actions. Through the actions, various value chain
actors will have timely information on production, marketing, price information on inputs and
outputs, where and when to sell their products and at what quality and standards. This MI
needs assessment study was largely based on primary data and information sourced through
rapid appraisal method conducted from Mach, 2014- April 2014. Secondary data including
the value chain of horticultural crops and the related marketing information system were also
compiled and used in this study.
The methodology used in undertaking this market information needs assessment was
primarily a qualitative type and a mix of methodological approaches including desk review,
in-depth key informant interviews, focus group discussions, observation, and experts‘
panel of discussion. Within these methods, to gain a better understanding of the needs of
market information and related systems, a study was undertaken following the market chains
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of horticultural crops of Mecha and Fogera Woredas. Moreover, value chain actors such as
producer farmers, traders, brokers, and consumers were approached through the designed
methodologies.
Based on the objectives and following the stated methodology, this study undertook situation
and needs assessment on; horticulture market value chain, existing regional and national
market information system and services, evaluate the existing regional market information
delivery and the existing ICT and human resources deployment, and gather the best national
and international experiences of market information system and services. Specifically, major
findings of the market information systems uses, opportunities and challenges, and need
assessment of all user groups was worked out which reflect the current facts of Mecha,
Fogera Wordas‘ user groups and stakeholders involved in the horticultural value chain. All
these served to develop the recommendation of this study and later the action plans of the
MIS project.
Key Findings –Major constraints of the horticulture sector and producer farmers
The results of this study elaborated that there are thousands of households employed in
horticultural production and marketing both in Fogera and Mecha area, and across the market
chains. Nonetheless, it is undergoing significant challenges that are influencing both the
production, storage and marketing. According to the findings, the major horticulture
production constraints identified in Mecha and Fogera areas include but not limited to, crop
production and management constraints, technological and infrastructure constraints,
marketing constraints, institutional constrains. Few of these problems found pertinent are
summarized below.
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Identified constraint Identified Overcoming means Relevance to this project
Crop production and management constraints
Weak production base
Low productivity and yield
Poor disease and pest management
Inappropriate harvesting techniques
Poor pre and postharvest handling
Low quality products
No grading and standardization
Provision of regular market information coordinating
with responsible sectoral agencies helps more to reduce
these problems
Can be directly handled by this
project through market information
provision scheme
Poor technological and infrastructure in the horticulture
production, storage and transportation system
Horticultural products preservation infrastructure should
be in place
Needs to be treated by other projects
whose goal is technology provision to
be used for product preservation and
handling
Marketing constraints
Inadequate market development support
Lack of market information
Distrust of middlemen
Provide up-to-date and sufficient market information Can be directly handled by this
project through market information
provision scheme
Institutional constrains
Lack of specialized horticultural extension
services
Weak industry linkages
Inadequate input supply
Weak cooperatives function
Consider sectoral linkages and motivate responsible
stakeholders such as BoA to act on such challenges
Strengthening cooperatives and MIS training
Part of the tasks can be handled by
this project
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Existing regional market information system and services with service delivery gaps
and challenges
Regardless of the few MI providers such as the Cooperatives Promotion agency of the
Amhara region who are only involved for their members only, the primary governmental MI
provider is Bureau of Trade and Transport (BoTT). BoTT is the primary source of regional
marketing information system through collecting, processing and disseminating price
information (PI) on 82 major agricultural and non-agricultural commodities from 23 towns of
the region. It has been trying to deliver MI on 83 commodities, in different media like,
printed, IVR, website, and radio based media, every week, or longer as necessary. In this
case, institutional and professional commitment is observed as this service is primarily under
the shoulder of the marketing development core process, which has few staff dedicated to the
service as much as they can. With its sincere efforts of the service delivery, different gaps and
challenges are identified revolving in and out. These gaps and challenges can be summarized
as internal and external, which ultimately affect the whole marketing system of the
horticultural sector.
Those internal are related to the gaps with the organization (BoTT) itself lined up from
Region to Woreda level. Specific internal gaps are;
Organizational lock up
o Existing organizational structure and human resource deployed, is at the
lowest level and contributed to poor delivery of MI
Poor Market information delivery; less accurate and irregular market information
delivery, poor quality and less value adding MI, limited access and incomplete
outreach to the market information due to,
Poor automation and efficiency of the market information system
o The zonal and Woreda offices are not equipped with the required ICT facilities
and equipment
o The rest infrastructure, which were supposed to support, the MIS such as
FTCs are not in a position to serve even the purpose they are built for
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o In general, the system hasn‘t proper interface for data encoding, organizing,
reporting and archiving, has limited reporting service, unable to integrate with
other systems, limited future expansion and poorly designed interfaces with
unlicensed page controls. The capacity of the server can be grouped to be poor
o Another component of MIS is Interactive Voice Response (IVR) in which
users call a specific number and request for specific market information using
predefined codes. Most farmers of the two Woreda‘s are unaware of this
system.
o Distorted primary information collection
o Lack of market extension
o Uncoordinated or traditional approach to providing agricultural information
Institutional and legal oriented challenges
o High informal information networks
o Unregulated and extended role of brokers
o Uncoordinated Partnerships and MIS activities
Those external challenges affecting the horticultural marketing are identified to be;
Open and uncontrolled input market
o Both at national and regional levels, the input market is quite unregulated,
non-systematic, and full of endangering the sector due to dreadful national and
regional quarantine scheme
Powerlessness of farm households
o Unlike other crops, horticulture products are perishable and production is
seasonal, and thus farmers are highly exposed to asymmetry of information
pushing them without any bargaining power. The whole effect of this is
making few well off at the expense of the majority.
Users less awareness of MI manifested on
o Lack of awareness on different aspects of marketing information and
extension
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o Distorted primary information reporting
o Limited and suspicious use of the MIS
Identified Market information, technology, and human resource needs
Identified Market information needs
Working to overcome or minimizing the stated gaps and challenges should be the priority
task of BoTT and the stakeholders, in order to have a well-functioning of the horticultural
marketing information system. In addition to these actions on the existing situation, newest
consideration of the market information, technology, and human resource needs should also
be considered.
For easily understanding, the market information is divided in two types, which are known to
be frequent and regular(day to day) type market information, and once-in-a-while (every
three or so months) type market information. This market information includes data or
information about:
Regular (day-to-day) type
Horticultural crops sales prices( market selling price of potato, tomato, or onion, from
major market or centres)
Once-in-a-while (every three month) type
Volume and frequency of supply of horticultural crops ( availability of potato,
tomato, or onion, at field level(Fogera and Mecha), on major markets in the nearby,
and other market chains)
o Expected production in some other competitive places and current stocks
o What grade, quality and quantity of a particular commodity was in demand or
available for sale
Production information
o Seed selection
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o Input application
o The availability of inputs and the prices of these inputs( prices related to
fertilizer, chemicals, and seed price of potato, tomato, or onion, nearby towns,
major markets)
o Harvesting and handling
o Weather, pest and disease forecasts
o The costs of producing crops such as onion and potato, suited for the particular
area
Horticultural crops complementary information on quality improvement techniques
information (grade, standards, post-harvest handling, processing, storage,
transportation)
Horticultural crops market complementary information - Marketing chain and
marketing availabilities(market preferences, transporters, as well as market situation
and location, potential market channels, payment requirements, packaging, quality
and a whole host of information required by a producer or cooperatives to make a
successful sale
Skills of marketing and understanding and using market and marketing information
Market trends and forecasts of horticultural crops
All these collected data are transformed into improved horticultural market information when
it is processed, analysed, interpreted, and disseminated to users for making production,
marketing, consumption, and policy decisions.
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Key market information required by user groups and ways of delivery
Type of information
required Source User Group Frequency Mode of collection Responsible Delivering
Means
Regular (day-to-day) type
Market price information of
potato, onion, tomato
Selected markets such
as Woreta, Merawi,
B/dar, Gondar, Addis
Ababa , Mekele
Farmers,
traders and
brokers,
consumers
Every day Field collectors send to
the center via networked
mobile phone and if not
through email &
telephone calling
BoTT SMS, LCD,
and website
Once-in-a-while (every three or so months) type
Production information
BoA and related
agencies Farmers
Every three
months Specialized experts
collect through
developed formats, and
send via hard and soft
copy
BoA, BoTT IVR, radio,
Extension
officers and
Bulletins
Product quality improvement
information BoA and related
agencies Farmers,
traders and
brokers,
consumers
Every three
months Specialized experts
collect through
developed formats, and
send via hard and soft
copy
BoA, BoTT IVR, radio,
Extension
officers and
Bulletins
Marketing chain and
marketing availabilities BoTT‘s collection from
value and market chains Farmers,
traders and
brokers
Every three
months Specialized experts
collect through
developed formats, and
send via hard and soft
copy
BoTT IVR, radio,
and Bulletins
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Marketing skill development
and legal information BoTT and related
agencies Farmers,
traders and
brokers
Every three
months Specialized experts
collect through
developed formats, and
send via hard and soft
copy
BoTT IVR, radio,
Extension
officers and
Bulletins
Market trends and Forecasts
of Horticultural crops
BoTT Cooperatives,
Academic
institutions,
GOs and
NGOs
Every three
months Specialized experts
collect through
developed formats, and
send via hard and soft
copy
BoTT Website,
Bulletins
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Identified technology, and human resource needs
Few set of the above information were collected, processed and disseminated by BoTT by
the exiting limited technology and human resources. In order to collect, process, analyse,
interpret, and disseminate the above market information in a well organized manner, new set
of technology for market information or ICT system, and human resource are required. The
newly designed central system to be administered by BoTT resides with four interfaces for
voice, SMS, web and other software systems. All those interfaces access the same database
for latest information. This system is expected to automate fully or partially the market
information processing and analysis. Collected market data should be encoded online,
processed by the system and it will respond to users‘ information needs based on their
interest and context. It comprises of a simple IVR (Interactive Voice Response) with
predefined keys for set of information. Similarly, the SMS interface will be available to
mobile users who need to get information in text form. Web interface will be accessible by
using web-browser like Mozilla Firefox or Internet Explorer. It can also be accessed using
mobile browser. The LCD technology will also be aviled for selected sites of Fogera and
Mecha. In addition, XML interface that uses a web-service technology in order to interact
with other software systems that may exist in BoTT or some other bureaus that need market
information will be installed. New organizational step up and human resource is also
proposed to enhance an effective MIS and manipulate the ICT in the Amhara region.
Overall, the findings help to conclude that, there should be actions in place for
recommendations identified including; undertake organizational scale up; develop suitable
market information system model and infrastructure; delivery of day to day and accessible
market information for all value chain actors in horticultural subsector; develop the
horticulture crops value adding facilities; formulate and apply appropriate MIS regulating
system, develop and apply appropriate monitoring and evaluation system. Accordingly, we
conclude this summary by remarking that, in order for BOTT to be the right organization to
satisfy the MI needs from user groups and contribute to the horticulture sector development;
these strategic recommendations suggested should be considered and implemented.
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Identified immediate key result areas and proposed activities plan
To realize the MI and MIS full functionality for the study areas in particular and the Amhara
region at large, the subsequent activates are planned for the coming five years. This brief
action plan is designed to start the sector on the long and complex journey that will be
involved in securing its right future. Accordingly, the proposed key result areas for the
coming five years are proposed to be;
Key result area 1: Organizational scale up
Key result area 2: Suitable market information system model and infrastructure
Key result area 3: Day to day and accessible market information delivery for all
value chain actors
Key result area 4: Appropriate MIS regulating systems in place
Key result area 5: Appropriate monitoring and evaluation system in place
Implementation strategies are also drafted for the key areas identified and presented in detail
in the body part and the rest are annexed as part of this document. A total budget of
12850000.00 is calculated for implementation of the stated result areas.
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PART I
SITUATION & NEED ASSESSMENT OF
MARKET INFORMATION
PART I: SITUATION AND NEED ASSESSMENT OF MARKET
INFORMATION
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1. INTRODUCTION
1.1. Background
Ethiopia is one of the most agrarian countries where the agriculture sector comprises of more
than 80 percent of exports, more than 80 percent of employment, and 45 percent of GDP. In
Ethiopia, more than 80% of the estimated 80 million people (CSA, 2003) depend on
agriculture for their livelihoods (MoRAD, 2005). Thus, the country's economic growth
depends largely on the growth of the agricultural sector, which is characterized by traditional
smallholding and subsistence farming with an average landholding of less than one hectare
(CSA, 2003). Accordingly, the level and speed of economic development in Ethiopia at large
and the livelihoods of many Ethiopians in particular is heavily influenced by sustained
growth in agriculture (WB, 2011).
The same is true in the Amhara region where this study was conducted. In the region, the
economy is predominantly agriculture. The annual contribution by agriculture to Regional
Gross Domestic Product (RGDP) is 59.4 per cent, of which the crop subsector constitutes
41.49 per cent (BoFED, 2014). Thus, in Ethiopia at large and in Amhara region in
particularly, smallholders‘ crop production is by far the most dominant sub-sector continuing
to be the sources of livelihoods of many millions of people.
In the crop sub sector, horticulture is one of the areas where many Ethiopian farmers are
involved in. The Horticulture agriculture in Ethiopia, according to a generally accepted
definition, includes the range of fruits, and vegetables and spices that are grown locally and
sold to the final consumer mostly as a raw product than at various stages of processed
conditions.
The horticulture agriculture is one of the areas with greatest opportunity and challenge in
Ethiopia and the Amhara region. The country‘s environmental conditions are highly
favorable for many horticultural crops, vegetable species, and seed production. Moreover,
yield and diversity of these crops is increasing due to the development of modern irrigation
schemes. Horticultural crops are also relatively water-efficient, contribute significantly
diversification in production, and are sources of much needed nutrients for the population.
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Besides, horticulture is land and labor intensive sector, which is an advantage for poor
farmers. Cottage industry, which process horticultural products, generates income for women
and families. With the existence of these opportunities, horticulture becomes a source of
livelihood for many Ethiopians.
While these are the aforementioned opportunities in the agriculture sector in general and
horticulture in particular, there are numerous challenges, which need an immediate action.
The small-scale farmers use traditional inputs and practices of rain-fed farming, which results
in low yields. In addition to low input utilization, agricultural production is highly
susceptible to adverse weather conditions that affect the quantity of surplus supplied to the
market. Some studies indicate that even in time of good harvest, the average marketable
surplus is not more than 28% of the total production (MoARD, 2005). Even this limited
amount of marketable surplus can reach the market place through a long chain of
intermediaries who unnecessarily increase the marketing cost and increasing consumer price.
This situation again has a negative impact on both the income of the producers and welfare of
the consumers, which creates a situation of inefficient agricultural marketing system. Market
inefficiency in return aggravates the poverty status of poor households since the poor does
not produce enough ((SID-Consult, 2008).
With long time recognition of most of the problems explained, the market problem at large
and lack of accurate and relevant information-communication-technology (ICT) supported
market information in particular are focused very recently. These days, lack of accurate and
relevant market information has been identified as a major obstacle in efforts to improve the
agricultural sectors of African countries. Yet very few African farmers have access to such
information (Ferris S., 2004). Information and communication have always mattered in
agriculture. Ever since people have grown crops, raised livestock, and caught fish, they have
sought exchange of information from one another (WB, 2011). A lack of market information
and poor marketing channels prevents growers from recognizing or taking advantage of local
and regional opportunities. ICT based Agricultural market information remains to be one of
the lacking resource input in the small holder farmers, traders, processors, consumers,
investors, policymakers, researchers and other interested actors which are involved in the
agricultural value chains to act and make well-informed decisions on how to add value.
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1.2. Rationale for market information systems
The Government of Ethiopia aspires transition from subsistence level to commercial farming.
The Government also believes that the transformation of smallholder farmers and success of
agricultural development depends through, among other things on the existence of an
efficient marketing system. Hence, the Government has placed considerable emphasis on
market and marketing issues such as the market information, aimed at enabling smallholder‘s
secure reasonable share of benefit from the value adding effect of local, national, and global
agricultural marketing system.
Market information plays an important role in the growth and development of the
horticulture industry. An efficient functioning of any marketing system is supported by a
market information system (MIS) that allows free flow of information along and across the
marketing chain. The existence of such systems facilitates informed decision making among
the various market players. One of the important pre-requisites to cultivating the competitive
edge of marketing is provision of market information services.
Marketing information system as defined by Kotler and Armstrong (2012) consists of people
and procedures for assessing information needs, developing the needed information, and
helping decision makers use the information to generate and validate actionable customer and
market insights. With the mix of its ingredients, such as use of technologies and
communication media; structure and design components for information collection, analysis,
and dissemination; markets and content coverage; types of users; and their information needs
and their locality, MIS has components for collecting, analyzing, and disseminating
information, and the main purpose is to empower the information users for thier decision
making.
Agricultural market information is essential for farmers who wish to become fully market
orientated and ensure that their production is in line with market demand. The availability of
reliable market information can help farmers to reduce the risks associated with marketing,
decide where to sell their produce, check whether or not the prices they are offered are in line
with market prices, decide whether or not to store, grow produce ―out of season‖ or grow
different products. Reliable market information also improves market transparency and
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farmers‘ bargaining power. Farmers are interested in market information on such as product
prices, price trends, and buyers for their products. Farmers can use market information in
several ways. Current or immediate, information can be used first to decide what to produce
and to negotiate with buyers or traders, to decide whether or not to go to a market and, in
some cases, to decide which market to supply (Shepherd, 1995).
Access to reliable market information also helps farmers become better managers by
assisting them in planning their production to meet market demand and negotiate prices on a
more bargaining power with wholesalers and retailers. Wholesalers and retailers also derive
benefits from improved market information with regard to procurement, marketing, and
distribution. Improved information allows traders to move agricultural inputs from surplus to
deficit areas and make financial decisions about maintaining stock supply (Shepherd, 1997).
ICT based market information tends to reduce the risks and lower the transaction costs of
farmers and other actors participating in the agricultural value chains. These efficiency gains
can lead to increased participation in the agricultural value chains and greater stability of
prices and supply/demand. More efficient and transparent agricultural markets benefit all of
the value chain actors (growers, traders, investors, policymakers, processors and consumers)
and can favorably improve the agro-business management across the value chain. Over all,
ICT supported market information can be regarded as a public good, particularly where there
are numerous small farmers who are unable to pay for information. The availability of timely
and accurate information to all interested parties is therefore essential, whether it be provided
by the government or by the private sector.
The producing farmers, traders, brokers, and consumers in the Amhara region and
particularly those in the study area are among the mentioned groups who need market
information for improving their livelihoods. In response to these needs, there is an attempt to
provide market information through different media by Bureau of Trade and Transport
(BoTT). Despite BoTT is attempting to provide market information through different media,
their market information services have repeatedly proven to be unsustainable and where they
have endured, they have often failed to provide commercially useful advice, confining
themselves to the gathering of, frequently unused, data. As a result, BoTT with the support of
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AgroBIG initiated the market information need assessment, which is a critical input, and step
as a solution to all MIS related challenges. The need assessment is needed to promote the
rural marketing sector in Amhara region. Hence, the establishment of a well-established MIS
will play its own role in the Region‘s effort to promote agricultural led economic growth and
development.
1.3. Objectives of the study
The overall objective of the study includes the following;
Assess current state of horticultural market information services and make
recommendations so that various value chain actors get timely information on
production, marketing, price, inputs and outputs, where and when to sell their
products and at what quality and standards.
The specific objectives of the study are;
Identify gaps/opportunities in the current market information system and intelligence
specifically in Amhara region and in the country at large;
Identify best practices of market information system in agricultural value chains;
Suggest recommendations or possible action oriented solutions for the selected value
chains (onions and potatoes) in Koga and Fogera areas;
Design market information and intelligence service delivery system and prepare
tender document;
Draw lessons to be replicated to other similar irrigation schemes and value chains;
Develop action plan including budget requirements for the implementation of the
identified intervention and possible support for Agro-BIG; and
Develop ToT material based on identified needs on MIS
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1.4. Data and methodology
By and large the assessment was made based on primary data and information sourced
through rapid appraisal method conducted from Mach, 2014- April 2014. Secondary data
including the value chain of horticultural crops and related marketing information system
were also collected and used. A mix of methodological approaches including desk review, in-
depth key informant interviews, focus group discussions, observation, and experts‘ panel
of discussion were employed.
To gain a better understanding of the needs of market information and related systems, value
chain actors such as farmers, traders, brokers, and consumers were identified and discussed.
Hence, at farmer level 2 Woredas of the Amhara region ( Mecha and Fogera) were focused.
In these Woredas, six farmers level FGD were undertaken participating 35 farmers (7
female). For reaching traders, brokers, and consumers through key informant interview, four
places were visited. These include, Merawi, Bikolo, Bahir Dar, Woreta, and Gondar. In these
market chain places 15 KII were undertaken. Within the key informant interview 10 traders,
2 Brokers, and 3 consumers were targeted. For addressing MI data at stakeholders‘ level, KII
was also undertaken at experts‘ level. Accordingly, 26 KII were undertaken, which involve
informants from Woreda to Federal level. Along with these tasks, experts observation was
undertaken in order triangulate the information delivered by the informants and the facts on
the ground. The data collection areas are showed in Fig1. Over all more than 75 people were
involved in this study.
Data collection was also targeted on regional level horticulture and MIS dealing
organizations such as BOTT, Cooperatives, BoA, Amhara Seed enterprise, AGRO-BIG,
EthioTelecom, INSA Bahir Dar branch, and Amhara Mass Media Agency which were
considered as major actors of a horticulture production and market information service.
Interviews were also conducted with National level MIS best practicing organization found
in Addis Ababa, to share their best experience of MI delivery and the MIS functionality.
These include, ECX, Ethiopian Horticultural Agency, and Agricultural Transformation
Agency.
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Data from interviews and group discussions were recorded in notebooks except for a small
number of tape-recorded interviews. The data obtained both through interviews and focus
group discussions were corroborated together for triangulation. More specifically, the
information and data gathered from different sources was triangulated and analysed to form
the final report. Since the data was primarily of qualitative type, we used thematic analysis.
The themes were developed based on the extant literature reviews. In the process of
assimilating data in to themes, the raw data were broken down into manageable forms of
marketing information system.
Figure 1: Woredas surveyed in FGD and KII
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2. REVIEW OF THE HORTICULTURE MARKET VALUE CHAIN
2.1. Horticultural production, availability, and quality
Horticulture is a specialized form of farming that demands a fairly wet climate, good soils,
relatively low temperatures and a consistent water supply throughout the year (Muir, 1994).
Ethiopia is endowed with such favorable climate for horticulture crops production and the
lion share of the product comes from the smallholder producers. According to MOARD
(2005), about 99% of the area allocated to horticulture production is cultivated by
smallholders, which produced 428,752 tons of fruits and 2,107,292 tons of vegetables. The
total share of smallholders' product during 2003 was 97% of the national supply. Similarly,
in 2004 about 45,0392ha of land was used for vegetable and fruit production, which is 0.05%
of the total area under cultivation.
Like the national status, the Amhara region has huge hectares of land suitable for the
horticulture production both through natural rainfall and irrigation. For example, horticultural
production in Mecha is entirely located in Koga irrigable farms, which is about eight
kilometers away from Merawi town. In Fogera, likewise, it is produced in irrigable patches
of Gumara River, around Woreta town. These production sites are located, along the highway
asphalt roads that connect the Woreda towns to Bahir Dar, Gondar, Debere Tabor, and Addis
Ababa.
While horticulture farming is found to be
a major element of the farming system,
and a major source of cash income for the
households in the survey Woredas, the
production system and product handling is
still unsatisfactory. The production system
of most of the farmers contacted in the
FGD is found to be irregular in farm field
tillage, seed use, chemical use, and
harvesting technique.
Onion Seed production, Fogera
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The most worrying is the farmers‘ practices happening in Mecha area vegetable production.
Most of the farmers are not fully aware how to harvest quality onions, at least by stopping
watering a couple of days before harvest.
The local traders contacted during the KII, explained that one of the most pressing issue is
that farmers are not aware or ready to
work towards quality and a standardized
product handling. Little sorting, grading,
and cleaning of produce is taken place at
the farm level. Poor processing, cleaning,
and packaging facilities all limit the ability
for horticultural farmers of Mecha and
Fogera supply competent products to the
market unlike farmers of Shewa Robit,
Adama, and Zewai, who created market
chain in most places of the Amhara
Region, including Mecha and Fogera area.
Despite Fogera is better than Mecha in
quality of production, it is not yet as
quality as the other regions of Ethiopia. Traders in Woreta also complain, farmers affect the
quality of onion by deliberately watering it while harvesting seeking to increase the weight
and measure at the expense of poor quality. Farmers are also less aware of the damage they
create while they dig out the crops under the soil.
Such malpractices, which are happening knowingly, or unknowingly warns that a continuous
and skill oriented agricultural extension services are required in order to help producers
increase the quality and quantity of their products.
A whole seller and retailer in Bikollo said
“I am involved in trading onions from areas
like Gumara, Shewa robit, Adama, and Zewai,
and potato from Awi Zone and Deberemarkos
area, while Koga products are available in 5
km distance. My reason is Koga farmers’ onion
is full of water, poor quality and perishes
within few days or even a day. In such
circumstances, I will never decide to trade the
poor quality products, if I decide to do so I will
go to loss immediately.” I remark that farmers
are less involved towards quality, which in one
way or another is affecting their own market. “
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2.2. Horticultural crops production and marketing opportunities and challenges
2.2.1. Production opportunities and challenges
In Fogera and Mecha areas, there are thousands of households employed in horticultural
production. This means that, horticultural production provides good opportunity for farmers
to generate income, and manage their livelihoods. Farmers in the study area use horticultural
products for their own consumption as well as for market sale. Following the population
growth; lifestyle changes; and horticultural produce such as onion and potato has always
been part of the people‘s diet in the Amhara region; there looks that growth of domestic
demand for vegetables will continue to be robust for the foreseeable future. These factors are
believed to be opportunities to promote farmers produce more horticultural crops.
The major horticulture production constraints identified in Mecha and Fogera areas include
but not limited to, crop production and management constraints (weak production base, low
productivity and quality, poor disease and pest management, crop quality, inappropriate
harvesting techniques, grading, post-harvest handling poor infrastructure), technological and
infrastructure constraints, marketing constraints (inadequate market development support,
lack of market information, distrust of middlemen), institutional constrains(lack of
specialized horticultural extension services, weak industry linkages, inadequate input
supply).
a) Crop production and management constraints
Weak production base: One of the biggest problems facing smallholder horticulture
producers in both Mecha and Fogera is crop production and management constraints. Given
the general crop, production and management constraints observed in smallholder farmers of
Fogera and Mecha, there are further specific challenges such as traditional farming practices
which are affecting the horticultural production.
Poor crop quality: The other constraint in smallholder horticulture producers of the study
area is poor produce quality. Quality standards are mostly determined by the rule of thumb,
irrigation and production methods, pest control, exposure to sun and timely harvesting, seed
selection, and the homogeneity of produce in terms of its size and quality. The small-scale
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farmers of Mecha and
Fogera are best explained
on supplying produce
with poor quality. Due to
their low quality products,
consumers demand on
their markets is quite
challenging. This
happened in Mecha,
where traders have little
or no intention to buy
from Mecha producers
due to quality reasons.
Prevalence of disease and pest: Small-scale farmers reported that they are further
constrained by disease and pest due to high costs of getting them. Disease management is
particularly found difficult because farmers are less conversant in prevention and control of
disease. Lack of proper training, limited access to chemicals, cost and their inappropriate use,
poses problems. Furthermore, farmers often resort to shortcuts, which may have devastating
effects on consumers‘ health and the future crop productivity. All we observed and
understood on the field trip implies that both the sellers and farmers are not clear with which
chemical to apply to prevent or cure the disease and pest.
b) Technological and infrastructure constraints
The very nature of horticultural products lends itself for perishability. However, much of this
can be eliminated by planning production in accordance with, the market needs, in-terms of
the vegetable type, and quantities required, and most notably by installing preserving and
processing technologies. Unfortunately, these facilities are not there with the producers of
Mecha and Fogera. If market fails after harvest, the product will be out of use. The
discussants indicated that such a practice is customary in Mecha. The absence of cold houses
and some processing facilities contribute a lot to such problems.
A producer farmer in Mecha said
“With ambition of good market and profit, I planted onion
and potato in my field. Without crosschecking the market
situation, I harvested and took few quintals to the market,
and came back without selling it as there was no one to buy
it, or those who visited me offered me with too cheap price.
These taken were sold with lower price and at substantial
loss. The rest at home, all my produce rotten and I was
subjected to make a compost fertilizer. If the preserving
and technologies were there, all my dreams would have
been true, good sale, good return.”
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Poor infrastructure and inadequate transport channels pose great problems for smallholders
who lack means of transport. Particularly, in semi-rainy seasons, it is very difficult to take
their produce to the market, and both broker and traders take this advantage to decrease the
price. Transportation of commodities from the farm to the market is not easy and most is
done on the donkeys back. In this case, the ultimate cost taker is the farmer.
c) Institutional constrains
Lack of specialized horticultural extension services: We understood that there are efforts
to address farmers through agricultural extension. Yet, most respondent farmers argue that
extension experience in the horticultural sector in particular is weak. The staff explained that
they have little direct experience with horticultural crops. In some cases, technical expertise
in some crops is unavailable. Particularly very few development agents are skilled in pest,
disease or seed variety identification. There were also farmers who complain on the
extension services quality; that all the right information is not readily available to small-scale
farmers via extension staff.
Inappropriate input supply: Shortage of good quality production inputs particularly
improved seeds is restricting farmers who would like to produce crops in good quantity and
quality. In both Mecha and
Fogera, there is a lack of
appropriate seeds for crops such
as onion, tomato, and potato.
This is further hampered by the
high cost element, such that
farmers can end up using seeds
from their own local seeds.
Given the cost element, the seed
vendors in Woreta, Merawi, or
Bahir Dar, have very little idea
about the seed variety, quality,
and other essential
A producer farmer in Mecha said
“I planned to saw cabbage, went to Merawi seed seller,
and bought grams of seed after the seed seller explained
me that it was the right seed for cabbage. I also showed to
the Development Agent who is the extension officer to
assure if I bought the right one and he explained it was
the right seed. Right after I sawed, I tried to observe the
seedling and got confused on its germination. Waiting for
few days, what I saw was spinach than cabbage. All my
plans of producing cabbage failed and took the spinach
leaves to my oxen”
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characteristics. The case below from Mecha can explain how grave the case becomes.
2.2.2. Marketing opportunities and challenges
As some of the production factors such as modern irrigation contribute for large produce, this
large product will subsequently be an opportunities for horticulture marketing increment and
expansion. Thus, the opportunities stem from the production potential. While this supply
driven factor is found to be one of the opportunities, the government support of horticultural
marketing and market linkages through marketing arrangements and appropriate production
systems would boost the near future market. This again will be a driver for living standards
improvement of thousands of value chain actors of horticulture crop farmers, traders, and
transporters operating in Mecha and Fogera, the Amhara region and elsewhere.
Like supply and policy factors, technological availability such as mobile networks in most
places, will facilitate the horticulture crops market information exchange. The road networks
already built and being built are also good opportunities for facilitating the horticultural
marketing.
Even though potentials are observed for market expansion, the challenges are double fold,
discouraging many smallholder farmers, traders and other agents inside the market. More
marketing constraints have been identified from the producers‘ and traders‘ perspectives. The
evidence from FGD, KII, and field observations showed that most of the marketing problems
in producers‘ perspective are found to be:
Imperfect pricing system and associated low prices of the products
Limited market outlets and access to external markets
Lack and inefficiency of marketing institutions safeguarding farmers' interest and
rights over their marketable produces (e.g. Cooperatives)
Lack of coordination among producers to increase their bargaining power,
Poor product handling and packaging
Lack of transparency and market ethics among market actors
General lack of marketing skills
Lack of market information and Imperfect market regulations
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3. ASSESSMENT OF REGIONAL AND NATIONAL MARKET
INFORMATION SYSTEM AND SERVICES
The Amhara region‘s modern market information service was established in the late 2010 as
a price monitoring system to collect weekly producer and wholesale prices for agricultural
and none agricultural products. In addition, in 2010 a price information service for few
vegetables particularly, potato, onion and garlic was also established, representing the
horticulture sector.
The existing marketing information system and service was introduced with the
reestablishment of the Bureau of Trade and Transport (BoTT) in 2010 by the Proclamation
No. 176 /2010 of The Amhara National Regional State Executive Organs Re-Establishment
and Determination of their Powers and Duties.
This subsection provides a succinct picture on how the organogram of the market
information system in the region is structured, the assignment of human and availability of
other essential inputs for the purpose, the system installed to validate and/or triangulate the
data, regular monitoring and evaluation system of the market information system and the
nature of sectoral integration and partnership among different stakeholders along the value
chain.
3.1. Organizational set up, work system and stakeholders of the market
information in Amhara Region
Until 2010, the agricultural marketing scheme was administered by the regional Bureau of
Agriculture (BoA). However, this mandate was transferred to the Bureau of Trade and
Transport (BoTT) afterwards and currently BoTT is the prime government body in the
region, which is in charge of establishing an efficient marketing system for both agricultural
and non-agricultural products via its regulatory, control, and support roles. The following
institutions are believed to have roles in the MIS of the region.
The Bureau of Trade and Transport (BoTT): The bureau is responsible to generate
reliable timely market information both for inputs and outputs, disseminate the information
using appropriate technologies, carry out market research for informed decision making, and
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craft feasible market linkage for efficiency gain both in production and consumption.
However, it was found out in this study that the major focus of BoTT is in output price
information even with less focus on horticultural products. The study team have understood
that the bureau is collecting, assembling and disseminating 82 major commodities weekly
price information on 23 towns of the region.
The Bureau of Trade and Transport (BoTT): As shortly outlined in the organogram of
BoTT, the bureau is in charge of collecting, processing, analysing and disseminating market
information to different users such as producers, consumers, traders, the government etc. So
far, our observation testifies the bureau is collecting, assembling and disseminating 82 major
commodities weekly price information on 23 towns of the region. It plays a leading role in
the execution and management the regional market information system
The Bureau of Agriculture (BoA): Currently, the bureau has deployed three agricultural
extension workers in each kebele of whom one of them is an expert of horticultural crops.
Partnership with the BoA is a fertile ground to integrate the market information system with
the agricultural extension service
Cooperatives Agency/Cooperatives: Cooperatives do play decisive role in increasing the
collective bargaining power of farm households. Their role in filling missing links both in the
input and output market is considerable. At the regional cooperative promotion agency, there
is a marketing case team that is aiming to collect, organize and disseminate market
information to unions thereby to cooperatives. Weekly price information on cereals is
collected, assembled and disseminated to lower level cooperatives. The geographically
disaggregated price information is used to collect farm gate cereals by cooperative.
Nevertheless, it is proved that cooperatives do have no role in the horticulture market
although the Koga cooperatives union has a facilitating role when growers of onion, tomato
and potato face price shock last year. The union is one of the main signatories with the
Agricultural Seed Enterprise on behalf of farmers. However, in the future, cooperatives and
unions are potential players and key stakeholders of the market information system. In this
regard they could serve as 1) a home base for the establishment of information
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centres/kiosks, 2) Agents to transfer market information to and fro 3) stabilizing entities
when price shock faces in the short run.
3.2. Evaluation of the existing regional market information delivery
Given the organizational set up, working system and MIS of the horticulture sector scheme in
operation, findings from the in-depth interview of different groups and field observation
showed there are strength and weakness while undertaking the MI delivery through the
existing MIS.
Strength and Opportunities
Despite many constraints are observed, there are found a valuable strength of the BoTT on
market information service delivery. Of all first, it is the first and primary regional and
governmental organization who is trying delivering MI on 83 commodities, in various forms
like, printed, IVR, website, and radio based media, every week, or longer as necessary. In
this case, institutional and professional commitment is observed as this service is primarily
under the shoulder of the marketing development core process, which has few staff dedicated
to the service as much as they can. The regional government and the BoTT‘s management
have also showed politically committed to establish an effective MIS scheme. With such
available strength, there are also observable opportunities to install an effective MIS scheme
for horticultural products in the region. These include:
Committed and Educable producers: farmers are aware that modern agricultural
practices can benefit them better. There is also a clear demand to adopt feasible
technologies, workable agronomic practices and produce market oriented agricultural
products. What is lacking is supply side of the market information scheme.
Growing market for both potato and onion: Unlike the previous years, on the side
of the producer, there is a clear demand to adopt feasible technologies, workable
agronomic practices and produce market oriented agricultural products. What is
lacking is supply side of the market information scheme.
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Established agricultural extension service: In the region, information collected
from the Bureau of Agriculture (BoA) shows that currently there are three
development agents assigned at kebele level of which one is an expert of horticulture.
Such an inbuilt institute helps to incorporate marketing information on horticulture
commodities in the extension services along with production aspects to the farmers.
Established institutes: The market information system involves a number of actors
along the value chain. Although, some of them like producers‘ cooperatives/unions
and consumer societies are practically outsiders in the current horticulture value chain
and anatomy of the MIS, it would be easier to make them participate actively.
Good understanding of the problem: This time, there is a good understanding of
the magnitude and impact of the problem by all actors among and outside the chain.
This is a step, which goes at least half way to find solution.
Institutional commitment: Despite its limitations, the regional government is
politically committed to establish an effective MIS scheme. There are already
attempts and practices that need improvement and advancement.
Better information communication technology facilities: The expansion of mobile
network and the increase per capita holding of mobile phones, the availability of local
FM, short waved and radio education programs, LCD technologies and internet
networking are promising facilities to expand an effective MIS.
Observed critical challenges and gaps
As was presented above, the market development work process has three core and strategic
activities: market information, research coupled with training provision, and promotion and
marketing linkage. A structure is laid down to the Woreda and major towns‘ level, which
coordinates these processes. Given such foundations of the MIS service delivery, the critical
questions which should be answered include: Does the existing organizational set up allow
smooth going of the activities? Is the system reliable? How are different stakeholders in the
chain integrated? Generally, how effective is the current MIS of the region?
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Degree of automation determines efficiency of the market information system. Availability
of computers on per capita terms at the regional bureau is a good step. Despite a range of
problems and challenges, the bureau processes and generates weekly price information data
using the available ICT equipment. However, the output is far from use. The zonal and
woreda offices are not equipped with the required ICT facilities and equipment. More than
the collection of price information, the mode of transmission of the information to and fro is
proved to be a big challenge. Usually, woreda officers transfer the information via email
whenever there is willingness from the woreda or other body who is in charge of managing
the ICT (woreda net). It looks worthwhile to mention one of the reflections of the Mecha
woreda marketing staffs of trade and transport office.
Here one can note that the
bureau even failed to establish
formal partnership with the key
partners and stakeholders. In
general, it is encircled by
backward and traditional way
of thinking and doing business.
The capacity of the server is
judged to be poor. Attempts
were made to visit the
homepage of the bureau with
three days attempt, but we
could not browse any pages.
.‟.....in previous days, we were begging the woreda
to allow us email the market (price) information to
the region, and successful for few moments.
Nonetheless, today it is not! Because the woreda
said don’t come again....”
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The facilities which were supposed to
support, the MIS such as FTCs are not in a
position to serve even the purpose they are
built for. The very good case was observed
in Fogera area of Bebex Kebele
administration. Farmers were asked if they
were served any marketing or any other
trainings and information. All they
answered “… No, No… it is closed every
time and we are not clear what it is built
for”.
The monitoring, evaluation and feedback scheme is not systemic. There is no system in place
to check whether the information arrived is right or not. An informant from the regional
marketing team reported ‟....there is no way to do that (checking and rechecking) except in
extra ordinary cases when we feel there are outliers. What we do is to institutionalize loyalty,
integrity on continuous training programs.‖ In addition, the system fails to install evaluation
and feedback mechanisms to improve efficiency of the service.
Farmers have to be informed about worthiness of alternative crop and non-crop enterprises
ahead of time especially when land preparation begins. Farmer needs comprehensive market
and non-market information about inputs (which input, at what price, where, how etc),
outputs. From field observation and key informant interviews, the consulting team has
learned that:
Input sector (seed and chemicals) information is crucial but nobody offers it.
In effect, farmers access inputs from their own source.
Farmers need of market information about relative profitability their product
before plantation.. Nevertheless, nobody is managing it. Actors worry
independently when shock comes.
Bargaining power of growers of horticultural crops is crippled by both crop
perishability and asymmetry of information. Even if there are producers and
FTC in Bebex KA, Fogera
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consumers cooperatives, their role in the horticulture market is invisible. On
the other hand producers and consumers are suffering from falling and higher
prices respectively.
Projected yield data is essential to manage market imbalance ahead of time.
Yet, there is no formal way of contact between BoTT and BoA.
In general, the vicious problem of the farmer requires the active participation of all the key
stockholders outlined above. Without integration, it looks less feasible to solve the problem
in a sustainable way. BoTT is not closely working with its major stakeholders while the task
demands. They are acting very independently with too much duplication of efforts, which
always results in confusion on the side of farmers and traders in both Woreta and Merawi
woredas.
Yet, value chain is not touched at all. What is provided to the user (if some) is price
information mainly collected from retailers and consumers than whole sellers. Retailing price
is subject to substantial fluctuation daily whereas the whole sale price, which we believe
better information for farmer‘s decision making, is relatively less volatile. Once price is
determined at 5: 00 AM it remains stable for a daylong time. Hence, it is recognized that the
current MIS system understood well neither the operation of the market nor the type of useful
price to the ultimate user.
Evidently, pricing of the horticultural produce depends on factors like seasonality and perish
ability and it depends on the demand and supply also. The degree of market imperfection
also matters. The information collected during the survey make certain that all these are
interwoven and ultimately make a deep impact on horticulture marketing of Fogera and
Mecha woredas. The very content of the information provided does not go far from mere
retailing price of the commodities in question. There is no any attempt in the system to
capture actual and projected supply of the produces. In the discussion, producers deemed that
reliable price information is vital. However, knowing the price per se can do nothing to them
unless they know where and for whom to sale their products. Brokers are powerful
middlemen who fully controlled the market information. Almost all of the interviewees are
well convinced and are operationally defeated by the conception that marketing is impossible
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without a broker. Thus the formal market information system offered by the BoTT is fully
surrendered by the brokers, traders and their intelligence network in terms of its content and
reliability.
Since these products are almost fully cash crops, production is meant for sale. The
implication is that the nature of market information therefore demands the delivery of a
package of information before land preparation begins. In this regard, we have observed and
documented that production follows the conventional roots. Farmers cultivate their land and
produce their horticultural crops without any information about the market. Various inputs
such as selected seed, insecticides, pesticides, fungicides are purchased from open access
market and applied without any knowledge and reliable information. The discussion made
with all our discussants confirmed that neither the policy context nor the MIS is acting on it.
The existing MIS scheme documents weekly commodity prices than day to day arrivals and
prices and disseminated with traditional approach. This approach is certainly incompatible
with the nature of the market. Major weaknesses observed here are firstly, the information is
not reliable as it truly deviates the market price where market players actually know on the
ground. In effect, two types of disutility have been drawn from what traders, brokers and
farmers reflected. Foremost is that people are reluctant to listen what is released from radio
and followed by a segment of the respondents who do not have the knowledge about it. As
was depicted in the anatomy of the MIS framework above reliability of the price information
puts in question because of the fact that representative price information is not collected from
the true source at the right time nether is segregated. Secondly, while horticultural price is so
volatile on a daily basis, processing and dissemination of weekly price information has no
any use; It therefore end up with untimely and outdated.
The Role of Brokers in the market
The brokers in Mecha and Fogera are key actors in the local market information system.
They are fond to be as strong as diamond. They do have a direct contact with whole sellers in
different towns of the country where the products are transacted. Given the price information
of the whole sellers, they have also their own intelligence network confirming the reliability
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of the market price set by the whole seller. Our findings ensure that brokers do have
sufficient and reliable information not only about the daily whole sale price but also the
various retailing prices changing over the course of a day.
It was understood that brokers play multiple roles in the current value chain of horticultural
products in Fogera and Mecha woredas. Firstly, growers acquire daily price information via
brokers. Secondly, brokers know where and for whom the farmer can sell its product.
Thirdly, brokers, from their rich experience, know the demand of each major town in terms
of quality of the product. They take the responsibility to difference, sort and grade the yield
according to the need. Hence, they are also quality assurance agents of the whole seller.
Fourthly, in most of the time, payment to the farmer is effective via the broker because they
have already developed in-built mutual trust from both sides of the market. Fifthly, brokers in
Mecha woreda do assist growers in the provision of essential inputs such as selected seed and
other chemicals for prevention and control of crop diseases.
It looks worthy to synthesis the role of the broker in the existing MIS system. The role at
which they play in filling the missing gap of the market such as collection and dissemination
of market information is appreciable. It is not difficult to guess the probable outcome of the
market had brokers been not there? On the other hand, they have already controlled the
market and captured nearly absolute monopoly power. In addition to the seasonality and
perishability of the products, all this in aggregate eroded the bargaining power of the farmer
and is a price taker.
3.3. National and International best experiences of MIS and services
3.3.1. National best experiences
In addition to the desk review of the existing national level MI dealing organizations, the
research team consisting of three members from ICT, MIS, and Radio and Television
development went to Addis Ababa to get national experiences about MIS at national level.
Accordingly, the team visited three organizations, which are believed to work on issues
related to horticulture and marketing information system. The first organization visited by the
team was the Agricultural Transformation Agency (ATA). The agency is mainly focusing on
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advisory roles in commercial commodities. It supports farmers with research based advice as
to how to perform agricultural practices including market. However, the experience is not
much related to horticultural MIS. The second institution visited was the Ethiopian
Horticultural Agency (AHA). Like ATA, AHA is focusing on commercial crops such as
floriculture and banana. The agency is using its personnel to advice farmers, to search for
international markets, and to lobby investors to invest in exportable horticultures. Hence, the
experience was not directly related to our purpose.
The only relevant experience was obtained from Ethiopia Commodity Exchange (ECX). It is
the first Ethiopian Authority to practice such modern marketing and to ensure real time
market information dissemination at a country level. The experience obtained can be
classified in to three major parts such as the institutional setup, the MIS operations, and the
ICT utilization.
1) The experiences of the Ethiopia Commodity Exchange (ECX)
a. The institutional setups
ECX is directed by board of directors whose members are comprised of traders, government
officials, and farmers‘ representatives. It has autonomous decisions in its administration to
the extent of devising and implementing market related directives within its operations. It has
a well-organized warehouse around the major crop areas. In each warehouse, the function of
sorting, grading and labelling of the commodities is taken place. It also qualifies and certifies
parties as sellers and buyers of the commodity under its current transactions. The warehouse
assumes ownership after the expertise assures the quality of the product. Hence, ECX has
modern organizational setups together with qualified manpower both at the warehouses and
the centre.
b. MIS services
ECX has a well established database system. Everyday market information is stored and can
be retrieved at any time required. It uses its recent past data as the base for estimating the
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current price for commodities. Example today‘s price lies between +/- 5% of yesterday‘s
price.
It also conducts market research on international level and advises exporters to export in
profitable segments of the markets identified. It also interacts with international agencies
doing similar activities. Besides, it tries to enhance the capacity of traders and suppliers
through organizing trainings and workshops. It actually gets the price information in its
disposal where the transaction is taken place. It also disseminates market information through
integrated communication systems. It disseminates through price sticker (LCD), websites,
interactive voice system, internet message and SMS texts to target individuals.
c. ICT support services
The Ethiopian Commodity Exchange (ECX) is partially automated and supported by ICT.
Their database system is connected with branch offices, remote storehouses, LCD displays,
mobile phones and website. Both the market and the MIS are relatively well-structured and
organized with a predefined regulations and information flow. Buyers and sellers, once
agreed on price, will fill up a form, sign and submit to responsible body so that market
information is registered and dispatched through website, mobile and LCD screen.
ECX collect process and diffuse information instantly, daily, weekly, and quarterly. ECX
uses multiple dissemination modes, including electronic display boards (Rural Electronic
Price Ticker (REPT)), its website, national public radio, private FM radios, newspapers,
national and private television, fax, email, telephones (voice), and hand delivery of some
reports and bulletins. For example, prices of the day, the closing price of the previous day,
and the real time coffee price on the New York Board of Trade are displayed on the
electronic billboards within 4 seconds of trade in Amharic and English. In 2009, there were
24 electronic billboards, three of which were in Addis Ababa and 21 in the regions. This
information is also updated on the ECX website instantly and targets all users who can access
the internet. All information collected belongs to ECX.
Daily and weekly reports are disseminated by email, fax, and hand delivered to radio stations
(Radio Ethiopia, Amahara-Region radio, Dire-Dawa FM and other private- sector based
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radios), television (Ethiopia Television, Addis TV, and Oromigna TV), newspapers (Addis
Zemen, The Daily Monitor and Ethiopian Herald daily, and Capital and Fortune weekly), and
ECX members. The reports are written in four main languages (Amharic, English, Oromifa,
and Tigregna). Other information, such as market regulations and coffee news is provided at
less frequent intervals through the website, in meetings with ECX members, and in a
quarterly newsletter called Its Coffee Time! More confidential information (e.g., quantities of
inventories and warehouse receipts‘ expiry dates) is disseminated by phone, email, fax, or
placed in members‘ mail boxes. ECX also trains its members through awareness workshops,
posters, brochures, and by posting materials on its website on how to trade on the commodity
exchange, how to interpret and use market information such as prices and on grades and
standards of coffee.
In terms of ICT, Ethiopia Commodity Exchange VSAT to connect the trading floor with the
200 remote plasma display installations. Despite Commodity Exchange was planning to use
WoredaNet infrastructure to connect Ethiopia Commodity Exchange‘s head office in Addis
Ababa with the 200 remote sites, they found it unreliable like those are also unreliable in
Mecha and Fogera woredas of the Amhara region. In addition to the 200 remote plasma
display sites, Ethiopia Commodity Exchange is also planning to have 20 remote electronic
trading centers in different parts of the country. . These centers are equipped with computers
and high-speed Internet connection. Via the Internet farmers/traders have the possibility to
get access to live market information. In fact, through the electronic trading centers, users
will be allowed to place orders to their brokers as well.
Overall, the experience found in ECX is summarized to be an automated marketing and
market information. All transactions of buying/selling are made by using automated system
that is accessible through the internet. Well-organized data center has been established to
store and manage market information centrally. Several ICT experts are working to maintain
and administer the automated MIS. Commodity suppliers across the country deliver their
product to warehouses and acquire quality grade from experts in that particular branch office.
Once the product is delivered and graded, it will be registered into the central system for sale.
This information is displayed to buyers for bid via LCD displays.
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The winning buyer will fill up a form, sign and submit to confirm the agreement. Then, the
buyer is expected to transfer the money through bank and collect the product from the
warehouse. All those activities are recorded and managed by the online system. This enables
suppliers and branch office workers to follow-up all transactions and market information
right away. Daily transactions are summarized and prices are presented to public by using
LCD displays, website, and IVR
Despite the experience of ECX is on non-perciable crops, some of the practices of ECX can
be adapted by BoTT. Hence, the best practices, which BoTT can adapt from ECX, are the
automation and possibility of collecting, processing and delivering a day to day information.
BoTT can make it happen as long as there will be product collection centers, particularly
through cooperatives, devotion on infrastructure development and deploying and training the
required human resources with appropriate incentives.
d) Lessons Learned from the ECX experience
The following lessons are learned from the ECX experience, which is presumed to be
important for our MIS need assessment study.
1. Day to day information can be accessed and disseminated with the help of ICT
2. Historical data can be used to forecast the future prices. And hence, database
management is part of MIS
Delivery,
Transfer
Transaction,
Administration Central System
Warehouse Branch office
Interaction of warehouses and branch offices with central system
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3. Storage and cooler can facilitate the marketing system in addition to protecting the
products from theft and spoilage.
4. Capacity building for both the implementers and the producers is important
5. Cooperatives sophistication and adaptation to modern marketing is possible and
essential through integration
3.3.2. International best experiences
India
Since the 1990s India experienced a boom in the horticulture development sector. The
problem of marketing was solved through the development of supermarkets and effected
contract farming both of which impacted significantly on the way in which marketing takes
place. This strategy had significant contribution to give growers market information on
predicted price of their produce, where and for whom to sale their product. In addition to
considerably reducing market uncertainties, the strategy helped farmers to produces better
quality products as per the demand of the supermarkets. Adapting the experience may help to
establish a useful market linkage between urban supermarkets, consumer societies and the
producers which may ensure mutual benefit for all.
Sri Lanka and Kenya
In Sri Lanka, research findings show that the private sector played a major role in production
and marketing while the State sector played a supportive role in facilitating them and for the
improvement of the living standards of the farmer population. The Market Information
System was completely based on private sector participation Gunatilke (2003). Similarly in
Kenya, the traditional approach to providing agricultural information through public
extension services, didn‘t work effectively and has collapsed since it was limited by many
administrative and design deficiencies and challenges (CABI, 2004). Currently, the Kenya
Agricultural Commodity Exchange is a private sector that collects, processes, updates and
disseminates market information daily to farmers and other market intermediaries through
the MIS. Market information includes prices of commodities in different markets, and
commodity offers to sell and bids to buy (Mukhebi, 2004). It has a number of components
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including ICT kiosks. On the horticulture marketing information system the emerging
contract farming with growing super markets and public retailing outlets has been showing
promising result (Tschirley et al, 2004).
3.4. Assessment and evaluation of the existing ICT and human resources
deployment for MIS service in the Amhara region
3.4.1. Regional level situation of ICT and human resources
Information communication technology (ICT) includes any communication device or
application, encompassing: radio, television, mobile phones, computers and network
hardware and software, satellite systems and so on, as well as the various services and
applications associated with them, such as video-conferencing and distance learning. It is
used to meet information, communication, and knowledge needs of public sectors, farmers,
agribusinesses, governments, and society. ICT based agricultural market information enables
farmers, traders, processors, consumers, investors, policymakers, researchers and other
interested actors involved in the agricultural value chains to act and make well-informed
decisions on how to add value.
Aware of such roles of ICT, the Amhara National regional state BoTT, is currently
employing the ICT, and trying to collect, process, store and disseminate the market
information. While BoTT is equipped with certain level of ICT for the MIS, its well-
functioning and proper service delivery to the user groups is not assessed and evaluated yet.
Thus, this ICT focused assessment and evaluation is presented to identify the available ICT,
its status, strength, and weaknesses for collecting feedbacks in the ICT based Market
Information System modelling and designing of the BoTT in well-integrated manner.
3.4.2. Assessment of existing regional level ICT for MIS
In this infant stage of ICT in the region as well as the country, several public sectors are
introducing ICT in their day-to-day activities in order to provide better services. Market
Information System (MIS), like other public services, can be more effective if it is supported
by ICT. The ICT-supported MIS has been introduced few years ago and going on by BOTT
which provides basic market information. However, this system has been implemented
without a well-structured system and functioning. The system comes with novice idea of
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providing market information to farmers and traders in the absence of organized and
structured marketing system. The existing market system is not well-structured in order for it
to be supported by ICT. Moreover, farmers and traders have limited understanding of ICT-
based market information system.
3.4.2.1. Existing network and infrastructure
The bureau currently has network designed for the purpose of providing internet service to
employees. The pros and cons of the existing network ifrastructure are described as follows.
Internet Service: It has a 6mbps internet connective bandwidth which is shared among all
staff. This bandwidth is shared by internet users as well as a server providing market
information. The limited internet connectivity does not have the capacity to provide market
information to users with a reasonable performance.
Servers: There are old servers with limited capacity of processing and storage. Their
capacity is equivalent to today‘s standard desktop computers. There is no any security
device. High performance servers and security mechanism are required to provide efficient
market information system that is accessible across the region.
Internet Gateway: Fiber-optic WAN connectivity has been installed using a small router
with 25Mbps performance. The internet connectivity bandwidth is used by professionals at
Woreda‘s in order to encode market information. All the internet traffic, generated by local
employees of the bureau and MIS users, is processed and forwarded through this device. This
network device has to be replaced with better high-performance devices in order to provide
reliable service.
VPN: There is no Virtual Private Network (VPN) subscription and there is no device
supporting VPN. There is a telephone voice modem for the purpose of IVR with a capacity
of eight independent telephone lines. Currently, only one line is being used which can
accommodate only one caller at a time.
Power Supply: All services are running using direct AC power supply with no UPS or
power generator installed that provides alternate power in case of power interruption. Power
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fluctuation, in addition to service interruption, can also affect the lifetime of network devices.
In order to provide uninterrupted and reliable service, power backup is mandatory for any
online enterprise system.
3.4.2.2. Existing MIS Database
The existing MIS database system is a web-based system that can be accessed from
Woreda‘s and from within the bureau by market analysts. Some of the drawbacks of the
existing MIS are described below.
Accessibility: It is accessible only using computers connected to internet. It is not
accessible by mobile phones.
Multimedia Support: The web-based database does not support voice or video
communication.
Compatibility: The database system runs on Windows environment.
Functionality: The database lacks basic functionalities that are required by business
processes of MIS. For example, market information encoded by professionals at the
Woreda‘s needs to be re-encoded again by market analysts. Market information analysis is
processed manually and fed to the system by experts. Dissemination of market information is
made through the website as separate file attachment. Analyzed market information is
handed over to the web-admin and is uploaded to website. It does not consider location or
context of user interested in market information. There is no way for farmers to get support
or more information from the central database on specific issues; and it is impossible to give
feedback on the information provided.
Integration: The database system is not designed in such a way that it can be integrated with
other systems like LCD display or radio or some other software. Therefore, it is simply
being used as means of data exchange between Woreda‘s and BOTT. Some staff members
have even commented that email attachment is better to use. Because email allows custom
data format, faster communication with Woreda‘s, reliable in case of failure of the database
system, does not need prior knowledge of the database system and so on.
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In general, the system doesn‘t have proper interface for data encoding, organizing, reporting
and archiving, has limited reporting service, unable to integrate with other systems, limited
future expansion and poorly designed interfaces with unlicensed page controls.
Existing IVR: Another component of MIS is Interactive Voice Response (IVR) in which
users call a specific number and request for specific market information using predefined
codes. Most farmers of the two Woreda‘s are unaware of this system. There is no Virtual
Private Network (VPN) subscription and there is no device supporting VPN. There is a
telephone voice modem for the purpose of IVR with a capacity of eight telephone lines.
Currently, only one line is being used which can accommodate only one caller. There is no
multiplexer and only eight telephone lines are come take in to the office out-of which only
one is active.
3.4.2.3. ICT infrastructure in Selected Woredas:
In order to identify the existing ICT infrastructure in the selected Woreda‘s, the consulting
team have discussed with Ethio-Telecom rural wireless experts. Hence, we understood that
there are good telecommunication services that allow us to expand both mobile and web
based technologies up-to the farmers‘ destination. The only problem that we observed is the
electricity supply that will be solved by using solar power technology. The rest, such as
information Kiosks are not in place. In this case, this study could not exploit the advantage
from it, as other countries such as Kenya are doing. The FTCs are not found as they were
assumed to serve for market information purpose. Hence, more effort is required to make
them MIS and technological center.
3.4.2.4. Farmer’s technological skill
From the field level observation, in Mecha and Fogera, still now, most of them do not have
any knowledge on the existing MIS System. However, most of the farmers have the capacity
and technical skill level to understand and utilize mobile based and LCD based technologies.
Hence, if the system provides market information specified above in Amharic via mobile or
LCD, the farmers are interested and ready to use this service. Further, we have understood
that there are at least one mobile per two farmer families. Hence, the device would not be the
constraint to access information.
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3.4.2.5. Existing human resource at regional and Woreda level
ICT-supported MIS is expected to have database and application software, which need
professional administrators. In this field visit, it has been observed that there are no ICT
professions with MIS background or experience. This affects the reliability and credibility of
the MIS, which is expected to provide service all the day, throughout the week. At region
level, The ICT experts are employed to manage the internet network and support services to
employees of bureau in general. One of the experts is responsible to manage the network and
website of bureau on top of his daily routine support and maintenance services. They have
limited interaction with the IVR system and no knowledge of detail system architecture.
We have not perceived any organized and structured MIS sector in the Woreda‘s. We have
discussed the MIS experts there and we understood that they simply asked the price once per
week and upload that price information to the system. They do not validate and analyze the
price information. Hence, they could not have any guaranty weather the price they stated is
exact or not.
Hence, to evade these very critical gaps we recommend on establishing well structured MIS
unit in Woreda‘s. This unit should be full-fledged, fully operational, and well structured. For
this, it should be composed of the following requirements:
Should have well organized administrative structure
Should have well organized and full- fledged ICT centers
Should have sufficient well trained and experienced ICT- based MIS market
information specialists.
Should have full-fledged web-based services
Should have strong integration with the policy makers, producers and traders.
Overall, based on the assessment of the existing system, a visit to various regional bureaus
and national organization, the bureau has introduced MIS system with a capability of IVR
and dissemination of summarized weekly market price data that is released through website.
From this study, it has been understood that the existing system does not have proper
interface for data encoding, organizing, reporting and archiving, has limited reporting
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service, unable to integrate with other systems, limited future expansion and poorly designed
interfaces with unlicensed page controls. Hence, it is incapable to supply modern and up-to-
date horticultural market information to respective market chain actors. This implies that
design and deployment of a new integrated market information system is required. Therefore,
based on this assessment, it is suggested that a new Integrated Market Information System
(IMIS) should be in place.
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4. MAJOR FINDINGS OF THE NEED ASSESSMENT
With due consideration of the roles of MI, BoTT has established MI collection, processing
and dissemination system. This section of the report is therefore built to asses and evaluate
the market information use, needs, availability, and reliability among user groups and
sources, including the BoTT‘s MIS.
4.1. Current market information provision and utilization by user groups
The main organization mandated to provide market information in the Amhara region is
BoTT. There are also few organizations such as the Cooperative Promotion Agency, and
farmers‘ cooperatives, who are trying to provide MI for their members. BoTT, the primary
provider systematically collects price information of major commodities in 32 representative
markets of the region, every week. Most of this information is about weekly selling price of
cereal crops and consumable goods. However, these have little or no information about
horticultural crops. Once the price data is collected, it is semi-processed at Woreda TT
offices, and sent either through hard copies or in soft copies to Zonal offices and to the
regional BoTT. BoTT store and analyze the data to generate required market information.
Thus, the primary provider BoTT, collects and disseminates basic market information mainly
on prices of major commodities, which suits to the urban consuming community. Currently,
BoTT puts a lot of emphasis on the use of radio broadcasts, community notice boards, and
web based systems in information dissemination. There are also few attempts to disseminate
through Interactive Voice Response (IVR) Based System, and Telephone Based Query
System. Nevertheless, most users such as rural farmers, traders, and consumers in most
instances do not know such services
Given the MI services by BoTT, it is noticeable that users require a variety of market
information. For instance, farmers require information on horticultural production and
management extension, harvesting, post-harvest handling and trade of agricultural
produce, commodity market prices, and input prices. Traders also require the provision of
information required in order to sell or make selling-decision, relates to expected production,
current stocks, prevailing prices, regional prices, level of expected imports from other areas.
Despite the requirements by users are such deal of information, market information
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utilization by users depends on the availability of the information itself. What are available
by BoTT are those few explained above.
4.1.1. Farmers market information utilization and perception of the service
While there are few horticultural and other market information opportunities for small
farmers, we found that farmers often have very limited or none utilization of the market
information availed by BoTT, or some other agencies such as cooperatives. Most of them
who participated in the FGD have even no or limited idea whether such information is
provided. The utilization of such little opportunities is further hindered by the least quality it
has, and the means of ICT facilities used to communicate. While there are few opportunities
for small farmers and less utilization of such information, the reality is that farmers often
already have a norm of utilization of the locally available rough market information through
their own interpersonal networks, most notably from fellow farmers, and brokers working
with them.
Our findings showed those few farmers who try to utilize MI from BoTT or other sources are
through radio broadcast. Farmers do not know other means such as notice boards, IVR, web-
based, or telephone queries, if they exist for them. We met few farmers who listen to prices
information on the radio are not using the information for production or market decisions.
This is possibly because the prices are not considered credible, or very different from what
they find it through their interpersonal networks. In both the study Woredas, the farmers told
us the previous day's local prices broadcasted are faithfully recorded showing the prices are
not relevant to the local market prices they know. This may also be due to the fact that, BoTT
collects prices only once a week and it is very less likely, this information would be an up-
to-date type in relation to the frequently changing price of horticultural products particularly
onion.
We try to assess their perception on marketing information services from any parties
particularly from BoTT. Most small-scale farmers, however, indicated that they had no idea
on the existence of market information from BoTT or other service providers, and mostly
relied on chatting with fellow farmers and taking risky selling trips. Almost all the farmers
participated in the FGD and aware of the services expressed ignorance of the marketing
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information services rendered. Those very few farmers who were familiar with the market
information service also expressed their opinion that the quality and variety of information
received is very shallow; had reservations whether the prices information are true and the
inability to extend the coverage of information to the horticultural crops they are highly
involved in.
The above facts and perceptions suggest that farmers do not or only few use market
information to produce, manage or sale their agricultural products in a well-informed
manner. This situation is particularly serious in the horticulture sector. The market
information is at very insignificant level, where BoTT itself is collecting and providing none
or few horticultural market prices information, as far as the study team discovered.
4.1.2. Traders and brokers MI utilization and perception of the service
All explanations in the farmers‘ side are also observed within the trading group. In practice,
what differs them with farmers is they use mobile cell phones in a better way than farmers
do, to access market information through their own personal networks, most notably brokers
and traders in some other places like, Bahir Dar, Mekele, Gondar, and other value chain
areas.
Traders operating in Bikollo, Merawi, Woreta, Bahir Dar, and Gondar stated that they rarely
listened to price broadcasts; rather, information on market prices is obtained through personal
contact and by telephone contact with traders outside their locality and the brokers. Most of
them did not agree on the correctness of MI broadcasts, because, through direct contacts,
they are as, if not more, up-to-date with prices than are the radio broadcasts. Even if a trader
does not make daily visits to the market, others do and there appears to be considerable
exchange of information among traders. Many traders also have access to phones, enabling
them to easily check prices with terminal wholesalers. It is thus not surprising that we found
few traders or collectors who admitted to listening to price broadcasts on the radio or to
consulting the price notice boards, which BoTT is posting the MI at the public notice boards.
Even if few traders listen to prices, they always tend to check them through other sources,
and will not base the price they are prepared to pay to farmers solely on MIS broadcasts.
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Several traders complained to us that information on the radio gave farmers a misleading
picture of the situation, because it was inaccurate due to frequent market price fluctuations
even within a day. They are also more worried about the quality of the information.
Overall, due to such perceptions on MI availed from sources such as from BoTT, it is not
common to find traders using the MI availed from BoTT or the radio and TV media. In this
regard, the main sources of MI is those which come from brokers and traders from elsewhere
out of their immediate market areas which is collected through cell phone
The perceptions on the brokers side, is also similar that no concrete information is found if
brokers are using the MI from BoTT or other related sources such as cooperatives. Every
source of information is their personal networks with farmers, traders and wholesalers which
they are attached with. They themselves collect market information from these sources using
their cellphone and make use of it to fix price for farmers, and report the market price
information to traders with different version of the same product and place and day. Most of
the brokers are also highly involved in market intelligence task, which helps them to hide
prices and add them more return.
Generally, the groups contacted are no more relaying on the existing formal sources of
market information, rather all go through their own price information collection through their
own way. This calls, the necessity of reforming and strengthening the existing formal
sources of market information with information and communication technology so as to
provide relevant and scientific information to the farmers, traders, brokers and other stake
holders so as to enable them to make right decisions in their production and
marketing of the horticultural products.
4.1.3 Gender and MI need
The issues raised by the FGD participants seem widely common in the study woredas. Most
of the issues related to MI have been mentioned by both men and women groups showing
that the problems affect both gender groups. Information need for product price, market
demand, where to sell, and general market facilities are common needs by both female and
male participants.
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However, information regarding the input price, quality of seed, agricultural knowledge and
skill, knowledge of good agricultural practices, necessary support by DAs which could also
be related to their capacities, horticultural crops pesticides are all the worries of male
participants. This indicates that males are actively involved in the pre-production processes
of the horticultural crops.
4.2. Observed problems on market information utilization and delivery
The lack of market information is found to be one of the major constraints of the stakeholders
of the horticulture sector, particularly smallholder farmers. This represents a significant
impediment to market access especially for smallholder poor farmers; it substantially
increases transaction costs and reduces production and market efficiency.
Most of the user groups of market information suggest that an up-to-date, correct, and
reliable MI is most useful for both short-term decision making (negotiating sales prices and
deciding where to sell) and for future planning (deciding which crop to plant), and how to
harvest it in a profitable manner. Unfortunately, majority of the farmers, traders, and
consumers contacted in the study area stated that utilization of the current official market
information was less for their decision making of production, marketing, and consumption of
the horticultural products. While official market information is vital for the development of
the horticultural sector and the necessary marketing, the reason why it is not utilized, and the
problems related to less utilization should be identified and solved. In this regard, the
following are some of major observed problems of market information delivery and
utilization.
User oriented problems or gaps
Lack of awareness on different aspects of marketing information and extension
Distorted primary information reporting
Limited and suspicious use of the MIS
Service providers oriented problems
Inefficiency in MIS implementation and MI provision
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Poor quality and less value adding MI
MIS focused more on market prices information
Less accurate and irregular Market Information Delivery
Inability to disseminate MI to the users on a regular basis
Limited access and incomplete outreach to the market information
Poor access to appropriate and timely information;
Distorted primary information collection
Lack of market extension (awareness on market systems and regulations)
Uncoordinated or traditional approach to providing agricultural information
Institutional and legal oriented problems
High informal information networks
Unregulated role of brokers
Uncoordinated Partnerships and MIS activities
Poor awareness on market information and extension: The problem related with lack of
market extension (awareness on market systems and regulations) is found to be one of the
challenges in the marketing system. By marketing extension we mean making awareness for
different actors in the market about the role of MI, producing with good market outlook and
vision, marketing ethics, respect of rights of the customers and so on.
We found that most of the user groups contacted are very less aware the role of MI for their
business development. When explained about the potential advantages of MI, all were
impressed and eager to access it. The awareness on market information in general was found
to be relatively poor in case of farmers as compared to the traders since the accessibility of
market information in terms of communication systems is very poor in case of farmers. For
those who are aware, the awareness on market information pertains to only prices of few
products.
The farmers do, not know the other important production and marketing parameters like,
post-harvest handlings, grading, and standardization. The same is true for traders. Their
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business is managed through common sense and their own personal skills, being less
informed to market information including arrivals, prices, quality/ standardization, area,
prices in reference markets, imports, and exports. Thus, due to poor awareness on market
information the advantages of MI were not realized.
Distorted primary information reporting: the FGD with BOTT, and OTT indicated that
some traders tend to give wrong price information mostly on a lower side as opposed to the
facts obtaining on the ground. Data collectors are then subjected to send this false data to
BoTT and this again is processed and disseminated. Other users are then surprised why such
distorted information is broadcasted. This is believed to contribute to erode the trust and
confidence of users on the MI service of BoTT and other service providers such as
cooperatives.
Poor quality and less value adding MI: Despite MI user groups need up-to-date and quality
information; the market information being broadcasted, is entirely price information, with
poor quality, outdated, and thus would not add value to them. Their main reason to judge this
information is since they found it very different from the information, which they already
know through their business network. Other value adding information (production,
harvesting, post-harvest, and processing, etc.) what they were looking for was not also
included; to provide a complete package containing all the relevant information from
production to marketing of horticultural products. We can then highlight, the need of quality
market information including price, management and harvesting, post-harvest procedures,
processing technologies, government policies (rules, royalties, and taxes), and marketing
techniques for horticultural development process.
Less accurate and irregular market information delivery: Usually, market information
provided by MI providers is criticized to be less accurate, outdated, and irregular. In this
regard, we found that in the study areas user groups do not have fresh market information.
Hence, what users get is usually out dated and inaccurate market information. Often, users
want to know information of specific horticultural crops having specific quality. Usually, the
information broadcasted is too general and provide about few cereal crops such as teff, and
grains. The other challenge is while most respondents require market information at least in
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daily basis; the current supply is irregular and goes beyond a week. Thus, the issue of regular
provision at least in daily basis should be considered.
Limited access and incomplete outreach to the market information: Despite, BoTT is
working for widespread access and complete outreach to the market informationthe majority
of users particularly farmers have not yet been exposed or introduced to the MIS services,
and remain vulnerable to unscrupulous middlemen or remain ignorant of the better market
opportunities that exist. Currently, BoTT services are suspended to few users such as the
academic community and those who have internet connection. The rest majority are not even
aware whether the MI services are delivered.
Uncoordinated Partnerships and MIS activities: Although the initiative to commission
and operate a new MIS should be made by a single organization, BoTT, this organization
should, for some of its work, consider itself to be the hub of a wide range of sources of
information and of the means to disseminate information. In addition, clearly, the cost of
commissioning and operating the MIS will have to be met through partnerships with donors
and, perhaps eventually, through the contributions of information recipients. Information
sources could include transport and storage companies, firms offering packaging materials or
other inputs, weather forecasters, banks and other credit providers, government regulatory
departments, other NGOs in this field, organizations offering grants to sector actors, and
most notably horticulture related organizations such as BoA, Cooperatives Agency and the
seed enterprises. These organizations could be linked directly to those seeking the type of
information they have to offer through the web‐site or by including them as contributors to
radio programs targeted at the horticultural sector.
Poor market extension: It is worth mentioning that most farmers are with less awareness on
different aspects of horticulture production, and product handling information. Majority of
the farmers are not aware of market information pertaining to preparation of the produce for
the market by cleaning, drying, sorting, and packing; or primarily on planning and producing
marketable products through good farm practices, seed selection, time of planting, and
harvesting. These all are not exercised due to the lack of marketing extension. Hence, the
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market extension activities need to be strengthened to create awareness among farmers
on modern horticultural crops production and marketing.
Unregulated role of brokers: In the study areas and some of the value chain areas such as
Gondar, there is a mix of brokered and unbrokered transactions. In this case, we found mixed
opinions about the role of brokers. The majority of the farmers in both Mecha and Fogera
area sell through brokers largely because they found the system in place and brokers would
normally block them from selling on their own. Most of farmers in the FGD largely indicated
that they were selling at the mercy of the brokers for which they literally had no choice and
failure to negotiate meant they risked losing their produce. With such involvement of
brokers, they found advantages and disadvantages of the existence of brokers. The main
disadvantage of selling through brokers was the lack of transparency in pricing, whereby
brokers get a ‗hidden‘ commission without the knowledge and consent of the farmer. The
farmers who reported receiving market information from the brokers contended that the
information is quite often not reliable, as some brokers would simply entice the farmer to
supply so that the broker can raise some income through the commission he will charge
through selling on behalf of the farmer. The brokers know that once farmers have brought
produce to the market they would sell at whatever price as it becomes very difficult to take
the produce back on account of logistical challenges as well incurring extra costs such that
his/her decision is driven by minimizing loses rather than maximizing returns. The other
disadvantages emphasized were brokers make sales slow due to markup they add, entice
farmers to reduce prices on false account of slow sales, make farmers make losses if they
were dissatisfied by the hidden commission.
Yet a group of farmers and traders believed the presence of brokers is important that they
provide some level of service. Some important roles identified were brokers; provide
security, more easily find customers, sometimes provide some inputs, sometimes provide and
facilitate some credit, provide market information and sometimes assist to pay some costs
such as for transport.
Thus the existence and roles of brokers cannot be blamed, rather there unregulated presence
should be. In this regard, there should be some mechanisms to regulate them to well function
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and contribute to the horticultural market development. Concurrent with the above
developments would be the development of a legal and institutional framework under which
brokerage activities at the market can be undertaken to achieve a win-win outcome for all
stakeholders, than in illegal way.
Inefficiency in MIS implementation and MI provision: According to the evaluation
questions raised during the FGD, the existing market information system and service is found
to be inefficient, and accordingly the MI provision to very user group is at infant stage. BoTT
was not in enabling environment to give the range of timely information, which would be
useful for most actors. Price information for horticultural produce ought to be offered daily
whereas; BoTT is delivering only prices for few agricultural crops, which did not consider
horticultural crops in about a week time.
There is also inefficiency in collecting the market information. The BoTT data collectors at
market level typically have difficulty in this role because many traders are suspicious of them
due to tax and other purposes. From the very beginning, information providers are not
oriented that the task is serious. Thus, it will be critical to educate market participants so that
they understand that the information they provide is recorded anonymously, will remain
confidential, and will only be used in aggregation or averaging. Marketing extension for
traders seems to be lacking. Data collectors themselves have lack of skill and the knowledge
of MI, thus they should be trained regularly to maintain quality standards. One of the most
inefficiency areas for BoTT lead MIS‘s is its inability to disseminate data to the users on a
daily basis.
More importantly, BoTT has less Monitoring and supervision mechanism. A manual should
be available for every step of the process and include daily timetables for when information
must be collected, processed, and delivered to the media. Monitoring should be performed at
every step including the actual transmission. Care should be taken to maintain the data
securely with checks and balances to ensure that one person could not manipulate or cook the
data.
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4.3. Identified needs for horticultural market information and potential roles
Market information is essential for agricultural development and to improve food security,
particularly for small‐scale producers and traders, who typically have limited access to, and
understanding of market information and analysis. Good market information helps ensure
transparency, competitiveness and the more equitable sharing of benefits between market
participants. Effective market information systems reduce information asymmetries, increase
competitiveness, and improve marketing system efficiencies. For small farmers, this can
help strengthen their bargaining position and improve their understanding of marketing
opportunities and options. For traders, market information can help identify producers and
others traders, expand their business and bargain more efficiently. Good market information
is also an essential ingredient for governments to take appropriate policy decisions in
support of agricultural growth and enhanced food security.
Sensible to the mentioned role, the information need of the target user groups were broadly
identified for the study areas and partly for value chain areas such as Gondar and Bahir Dar.
The Information need assessment exercises were undertaken in the FGD, KII, and detail
discussions with BoTT. Market information with the local context is defined as;
Horticultural market information is defined as that information that any user require, in
order to run the horticultural crops business to produce, process, sale or consume.
For easing the collection, processing and dissemination of market information, it is divided
in two types, which are known to be regular(day to day) type market information, and once-
in-a-while (every three month) type market information. This categorization is based on the
frequency of collection, processing, and dissemination, and urgency of the requirements.
Those MI which needs frequent collection, processing, and dissemination are termed as
regular type market information, and those which needs less frequent collection, processing
and dissemination are termed as once-in-a-while market information. This market
information need according to the user groups are presented bellow.
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4.3.1. Market information needs by user groups
4.3.1.1. Producer
1. Product market price information
This information is about prevailing prices of horticultural commodities (Onion
and Potato) in major markets. Thus, horticultural crops sales prices( market
selling price of potato, tomato, or onion, from major market or centers particularly
in Merawi, Woreta, Bahir Dar, Gondar, Deberetabor, Addis Ababa, and Mekele
will be collected, processed and disseminated
If this information is provided, the farmers will be in a position to improve
their bargaining position with traders, know the prevailing market conditions
and decide for themselves how to maximise income, know what crops are on
demand, be protected from being defrauded and be in position to deal with
genuine traders and marketing agents.
2. Production and agronomic information
Farm inputs price information (improved seed varieties, Fertilizer, weed killers
Chemicals pesticides)
Agronomic information focusing on (Crop Selection, Land Preparation, Seed
Selection, Seed Sowing, Irrigation, Crop Growth, Harvesting)
3. Post-harvest product handling Information
4. Production forecasts and market availability Information
5. Business and Marketing skill development
Information on business, marketing, and entrepreneurship skills
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4.3.1.2. Traders and cooperatives
1. Product market price information
This information is about prevailing prices of horticultural commodities (Onion
and Potato) in major markets. Thus, horticultural crops sales prices( market
selling price of potato, tomato, or onion, from major market or centers particularly
in Merawi, Woreta, Bahir Dar, Gondar, Deberetabor, Addis Ababa, and Mekele
will be collected, processed and disseminated. It help traders to make critical
decisions regarding their trade in agricultural commodities.
2. Marketing chain and marketing availabilities information
Horticultural crop varieties, quantities available at the major market and in
major producing areas
information relating to the types of commodities most traded and demanded
3. Market trends and Forecasts of Horticultural crops
Supply-demand trends and forecasts
4. Marketing skill development and legal information
4.3.1.3. Consumers
1. Product market price information
2. Marketing availabilities information
3. Market trends and Forecasts of Horticultural crops
4.3.1.4. Research and public organizations
1. Product market price information
2. Price trend analysis.
3. Regional price analysis
4. Market statistical analyses
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The small-scale farmers need to have knowledge at least on the prevailing prices on the
market for their decision-making on choice of commodity, cost benefit analysis, and
sustainable production decision. In addition to this, they would also require information on
production, product handling, and input utilization extension with associated cost.
Traders also require information to make a decision as to which types of commodities the
majority of the traders are dealing in, the places where they sell the commodities and the
price, source of supply for the commodities and the price at which the commodity is
procured, the minimum quantities at which they are sold, types and form of transport
available, and transportation costs. Retailers indicated that they are interested in timely
market information on retail market prices for competing established large-scale dealers.
Consumers also require information related to product availability by type and timely market
information on retail market prices.
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Table 1: Key information type required by user groups
Information
Source, Mode of
Collection Potential Actors
Frequency And Mode Of
Dissemination
FARMERS
1. Product market Price Information
Market price information of
potato, onion, tomato
Wholesale & retail price will be collected
from three best traders in each major
markets of the value chain [Selected
markets such as Woreta, Merawi, B/dar,
Gondar, Addis Ababa , Mekele]
Smart phones will be used by field staff
to record and send prices
Every day through SMS, LCD
2. Crop Production and agronomic
Information
Farm inputs price information of
improved seed varieties, fertilizer, weed
killers Chemicals pesticides
Wholesale & retail price will be collected
from three best traders in each major
markets of the value chain
Smart phones will be used to record and
send prices
Every day during the production season
through SMS, LCD
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Table 1: Key information type required by user groups……..
Information
Source, Mode of
Collection Potential Actors
Frequency And
Mode Of
Dissemination
Seed Selection
Price and quantity needed per acre
Average yield and sprout to sown ratio.
Suitability to particular area and climate.
Water requirement.
Resistance to diseases.
Location of distribution offices for the seed.
Seed Sowing
Appropriate time to sow the seed.
Optimal weather conditions at sowing time.
Best method for the sowing of seeds.
Seed sowing depth.
Irrigation
Critical time for irrigation.
Amount of water to be given to the plants.
Frequency of irrigation.
Crop Growth
Number of plants per unit of area. At times more than optimum
number of seeds sprouts are planted in a given area. Farmers
must reduce density for healthy growth of plants.
Average growth rate of the crop in normal conditions.
Collected from responsible agencies and
sources such as BoA, and organized and
messages are checked by experts before they
are recorded and voice-transmitted
Specialized experts collect through developed
formats, and send via hard and soft copy
Updated Every three
months and diss, via
IVR, radio, Extension
officers and Bulletins
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Table 1: Key information type required by user groups……..
Information
Source, Mode of
Collection Potential Actors
Frequency And
Mode Of
Dissemination
Comparison of crop growth rate, leaf size, crop color etc. with
expected growth for given conditions and input.
Interventions needed to maintain expected growth.
Frequency, quantity and method for fertilization.
Proper time, frequency and method for plowing.
Proper time, frequency and method for weeding.
Expected pest and virus attacks, symptoms of such attacks,
precautionary measure that can be taken in advance to avoid
these attacks, immediate actions including pesticide to be used
to kill pests and viruses, quantity of pesticide to be used per
acre, most effective method for pesticide spray, avoid health
issues related to pesticide spray.
Harvesting
Proper time and method for harvesting.
Comparative market rates.
Proper crop storage.
Cost of transportation
Weather information
Rainfall and drought information
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Table 1: Key information type required by user groups……..
Information
Source, Mode of
Collection Potential Actors
Frequency And
Mode Of
Dissemination
3. Product quality and quantity improvement information
Information on post-harvest, storage, transport, and handling
technologies
Collected from responsible agencies and
sources such as BoA, and organized and
messages are checked by experts before they
are recorded and voice-transmitted
Specialized experts collect through developed
formats, and send via hard and soft copy
Updated Every three
months and diss, via
IVR, radio, Extension
officers and Bulletins
4. Production forecasts and market availability Information
Yield forecast in own locality and other producing areas
Information relating to the types of commodities most traded and
demanded in major markets
BoTT with BoA, CoA, collect and produce
information
Specialized experts collect through developed
formats, and send via hard and soft copy
Updated Every three
months and diss, via
IVR, ,radio, and
Bulletins
5. Business and Marketing skill development
Information on product standardizing and grading, labeling, and
sanitary requirements
Marketing skill and information related to better price realization
by the farmers
o information such as market fee, market charges, costs,
method of sale, payment, weighment, handling, market
functionaries, market laws, dispute settlement mechanism,
composition of market committees, income and expenditure
handling
o place offers to sell or buy
entrepreneurship skills Information
BoTT with BoA, CoA, collect and produce
information
Specialized experts collect through developed
formats, and send via hard and soft copy
Updated Every three
months and diss, via
IVR, ,radio, and
Bulletins
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Table 1: Key information type required by user groups……..
Information
Source, Mode of
Collection Potential Actors
Frequency And
Mode Of
Dissemination
TRADERS AND COOPERATIVES
1. Product market Price Information
Market price information of potato, onion, tomato
Wholesale & retail price will be collected
from three best traders in each major
markets of the value chain [Selected
markets such as Woreta, Merawi, B/dar,
Gondar, Addis Ababa , Mekele]
Smart phones will be used by field staff
to record and send prices
Every day through
SMS, LCD, Web
2. Marketing chain and marketing availabilities information
o Horticultural crop varieties, quantities available at the major
market and in major producing areas
o information relating to the types of commodities most traded
and demanded
BoTT with BoA, CoA, collect and produce
information
Specialized experts collect through developed
formats, and send via hard and soft copy
Updated Every three
months and diss, via
IVR, ,radio, and
Bulletins
3. Market trends and Forecasts of Horticultural crops
information relating to the types of commodities most
farmers deal
information relating to the types of commodities most
traders deal
quantities available on major market or in major
producing areas
the places where they can best sell the commodity
Supply-demand trends and forecasts
BoTT with BoA, CoA, collect and produce
information
Specialized experts collect through developed
formats, and send via hard and soft copy
Updated Every three
months and diss, via
IVR, ,radio, and
Bulletins
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Table 1: Key information type required by user groups……..
Information
Source, Mode of
Collection Potential Actors
Frequency And
Mode Of
Dissemination
4. Marketing skill development and legal information
o marketing costs relating to transport and storage
Information on product standardizing and grading, labeling, and
sanitary requirements
Marketing skill and information related to better price
realization by the farmers
o information such as market fee, market charges, costs,
method of sale, payment, weighment, handling, market
functionaries, market laws, dispute settlement
mechanism, composition of market committees, income
and expenditure handling
o place offers to sell or buy
entrepreneurship skills Information
Specialized experts collect through developed
formats, and send via hard and soft copy
CONSUMERS
1. Product market price information Similar to Farmers and traders Similar to Farmers and
traders
2. Marketing availabilities information Similar to Farmers and traders Similar to Farmers and
traders
3. Market trends and Forecasts of Horticultural crops Similar to Farmers and traders Similar to Farmers and
traders
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Table 1: Key information type required by user groups……..
Information
Source, Mode of
Collection Potential Actors
Frequency And
Mode Of
Dissemination
RESEARCH AND PUBLIC ORGANIZATIONS
1. Product market price information
2. Price trend analysis.
3. Regional price analysis
4. Market statistical analyses
Similar to traders
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5. CONCLUSION, RECOMMENDATIONS AND THE WAY FORWARD
5.1. Conclusion
This situation and needs assessment report has discovered that, on the one hand there are
considerable efforts by BoTT to deliver MI, on the other hand high unmeet MI demand
among the user groups. The services are poor and not accessible to the actual users such as
farmers and traders. At present there is, effectively, no sound MIS in the horticultural sector
operating in the region. This study found that though there is tremendous growth of the
horticulture sector due to irrigation facilities, there are threats of declining due to market
problems. In this regard, the current activities of BoTT on market information collection,
processing, and dissemination could be point of reference for the coming enhanced MI
services delivery.
Both user groups particularly farmers are with high need of market information plus well a
regulated marketing system. On the other hand, successful production and trade of
horticultural crops requires an understanding of the fundamentals of market structure and
function. Knowledge of buyer demands, producer supplies, consumer preferences, and
quality standards are critical to success in highly competitive markets. The binding tool for
this is found to be an up-to-date and clear market information delivery, which focus on
product market price, production, and management information.
Thus, whatever efforts should be in place within the day-to-day activities of BoTT to collect,
process and deliver the required market information by user groups. The tasks should not be
stopped only in MI, but stakeholder partnership should be formed. There should also be
activities to regulate the well-functioning of markets particularly the role of brokers. Regular
monitoring and mentoring of the well functioning of the MIS and markets should also be
undertaken.
We then conclude that BoTT, should be in the front line to fulfil the information demands
through well consideration of the opportunities, challenges and needs of the user groups in
this study; and this services would be best availed if the organization is going to apply the
technologies, designs, and working modalities suggested by this study.
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5.2. Recommendations and the way forward
In order for BOTT to be the best organization to satisfy the MI demands from user groups
and contribute to the horticulture sector development, the following strategic
recommendations are suggested as a way forward;
Undertake organizational scale up: During the situation assessments, it is found that the
marketing department is very incapable to handle the MI needs of such bulky user groups‘
demands of every market information in a day-to-day basis. We then suggest, the current
department should be reorganized and updated to an Agency level, by reorganize the BoTT‘s
Marketing department to MIS Agency. Moreover, any government organizations cannot be
as efficient as even ordinary brokers simply because of their hierarchical bureaucracy where
decisions are made in meetings. Thus, the best proposition is outsourcing or at least
establishing an independent authority like ECX whose major responsibility is MIS. Based on
this assumption, the current market chain looks like below; and that independent authority
(MISA) serves as MIS hub which collects information from and disseminates to the market
actors depicted in the diagram.
Through this new established MIS agency and the product and information, flow is designed
in a way to reduce the transaction cost of users and maximize their benefit. In this
recommendation, establishing and strengthening cooperatives is at the very heart of the MIS
infrastructure as individual farmers may not be able to access, disseminate, and doing some
marketing intelligence by themselves. Farmers are not only advised to receive information
from others, they need to have their own MIS. This is only possible through their collective
power (efficient and effective cooperative). Besides, the practices of Kenya, Uganda, and
other successful countries in horticultural marketing indicate that strong cooperatives have
made significant influence in regulating the market and benefiting the farmers as a result.
Similarly, the problems in the study areas and around indicate that farmers have become
powerless in price setting. As a result, cooperatives with continuous capacity building
support are strongly recommended by the study team.
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Develop suitable market information system model and infrastructure: Efforts should
be made to develop suitable market information system model and infrastructure, which will
promote the horticulture sector of the Amhara region, particularly in Mecha and Fogera
areas. This new MIS model and infrastructure will be enhanced through; Developing and
enhancing MIS with new system, technology and human resources; Developing a range of
low-cost market information services at the local—Woreda level, and regional levels;
BoTT
MIS Agency
Brokers
Traders
Consumers
Cooperatives
Individual
farmer
Input Suppliers
Suppliers/Facilitators
Diagram 1: Proposed MIS and product flow under the new
MIS Agency
Product flow
MI flow
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Building stakeholder partnership; Development of market linkages through formalizing
market linkages and improving the marketing competence of farmers and farmer
organizations; organizing farmers into collective marketing groups to improve their
production and marketing practices; Developing capacity for information collection,
processing, storage and dissemination; and increase partnerships between producers, public
institutions, and industry to facilitate market information exchange and develop capacity.
Delivery of day to day and accessible market information for all value chain actors in
horticultural subsector: Efforts must be made to ensure enhance accessing of day to day
and accessible market information for all value chain actors in Horticultural subsector in the
Amhara region, particularly in Mecha and Fogera areas. This Delivery of day to day and
accessible market information will be enhanced through; Provision of market price
information to consumers by gathering and disseminating information on price premiums for
different varieties of the same horticultural crop; Provision of production and product
management information to consumers by gathering and disseminating Production and
product management information particularly for farmers; through continuous advice and
assistance to extend the harvesting or marketing season using appropriate storage systems,
processing, specific varieties and other techniques; addressing assistance needs to be fully
informed by the market conditions that prevail in the market chains.
Formulate and apply appropriate MIS regulating System: Efforts must be made to
formulate and apply appropriate MIS regulating System to assist the well-functioning of the
MIS and horticultural markets in the Amhara region, particularly in Mecha and Fogera areas.
This regulating system will be functional through; getting farmers to join farmer‘s groups or
associations and thus help them gain the economies of scale for purchasing inputs and
harmonizing production to gain higher prices by collectively marketing their output; making
a serious effort to fill the market information gap; making a move towards more transparent
markets in horticulture by helping people to be aware and report actual traded prices to
information gatherers and reducing the possibility of malpractice due to irregular movement
of brokers; training MIS officers to record the volumes of goods on offer and sold each day
in an ethical manner; working towards improvements in market efficiency and transparency;
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organizing a compiled directory of producers, traders, exporters and other categories of
actors.
Develop and apply appropriate monitoring and evaluation system: Efforts must be made
to develop and apply appropriate Monitoring and Evaluation system to assist regulate and
well guide the proper functioning of the roles and responsibilities of the proposed MIS
agency, MIS regulating system, delivery of day to day and accessible market information for
all value chain actors, proposed market information system model and infrastructure. The
application of the Monitoring and Evaluation system will be enhanced through; Regularly
monitor and mentor the proper functioning of the MIS; Undertaking evaluations together
with user groups on the effects of MIS to the Horticulture sector development, and Monitor
and evaluate the utilization and impact of market information and MIS on production, ,
market and an over horticulture sector development.
Promotion of stakeholder partnership and grassroots cooperatives: Cooperatives have
got tremendous roles from international experiences. They are also gateways to private
sector. It is then recommended Promotion of Stakeholder Partnership and grassroots
cooperatives should be emphasized.
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PART II
PLAN OF ACTION FOR MARKET
INFORMATION SERVICE PROVISION
PART II: PLAN OF ACTION FOR MARKET INFORMATION
SERVICE PROVISION
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1. Intervention Actions and Plan for Market Information Service Provision
Following the findings of the need assessment, market actors require an up-to-date supply of
the market information. Thus, this requirement should be fulfilled with well-developed
market information system, ICT infrastructure, enhanced market linkages, enforcement of
legal and regulatory actions, and a firm monitoring and evaluation system. To convert these
recommendations in practice and let all users benefit from the horticulture development,
intervention actions and an action plan is proposed. This plan has been developed through a
thorough analysis and consideration of problems, opportunities, and needs of MI and the
entire required system for its enhancement. The preparation of this plan was guided by the
BOTT‘s need to pursue its vision, uphold key operational values, and realize its mission. The
plan is developed in such a way that strategic intervention areas/milestones/ are first
identified and they are followed by specific actions, which will help them to be fully
implemented.
1.1. Objective of the plan
The objective of this plan is to pick up key strategic actions and activities, which can help the
BoTT to immediately start acting on building the marketing information system, which will
fulfil the MI necessities of the user groups and stakeholders.
2. Proposed intervention actions and action plan
During the plan period, which in this case is for 5 years, BoTT is suggested to focus on the
above five key result areas following the recommendations of the study. These strategic
themes are:
1. Organizational scale up
2. Suitable market information system model and infrastructure
3. Day to day and accessible market information delivery for all value chain actors
4. Appropriate MIS regulating systems in place
5. Appropriate monitoring and evaluation system in place
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2.1. Objectives of the five key result areas
Arising from the above key result areas/strategic themes/, BoTT will pursue five major
objectives, namely:
To undertake organizational scale up to capably handle and manage the mi needs of
such bulky user groups‘ demands of every market information in a day-to-day
basis
To develop suitable market information system model and infrastructure which will
contribute for day to day and accessible market information delivery for all value
chain actors in horticultural subsector
To deliver a day to day and accessible market information for all value chain actors in
horticultural subsector to help them produce well, involve in markets as price
takers, and ultimately develop their livelihoods
To formulate and apply appropriate MIS regulating systems so that every partner in
the horticultural sector move equally for equitable benefit
To develop and apply appropriate monitoring and evaluation system which will guide
all the above objectives reach to their end
2.2. Identified immediate key result areas and proposed activities plan
To realize the MI and MIS fully functional for the study areas in particular and the Amhara
region at large, the subsequent activates are planned for the coming five years. This brief
action plan is designed to start the industry on the long and complex journey that will be
involved in securing its future. The plan is necessarily limited in its scope. This is because a
detailed ―To Do‖ list would rapidly become a straitjacket. Indeed, those charged with
responsibility for following the strategy may well find that specific action or outcome
proposals require modification from the start. These action steps are broad, and will
themselves require further specification in due course.
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Key result area 1: Organizational scale up
Reorganized the BoTT‘s Marketing department to an agency level
Determine and implement optimal staffing and infrastructure
Key result area 2: Suitable market information system model and infrastructure
Developing new market information models
o Developed a range of low-cost market information services at the local,
Woreda, and regional levels
Develop and enhance MIS with new system, technology and human resources
o Improve on existing ICT infrastructure and acquire new ICT infrastructure
Build and strengthen stakeholder partnership
Collaborate with other stakeholders in development of physical market infrastructure
Development of market linkages and channels
o Formalizing market linkages for producers and small traders
o Formulate producer-consumer networks through farmer organizations
Develop capacity for information collection, processing, storage and dissemination
Undertake Knowledge Management (KM) and innovation through market research
Key result area 3: Day to day and accessible market information delivery for all value
chain actors
Providing market price information to user groups
o Gather and disseminate information on price premiums for different varieties
of the same horticultural crop, markets, demand, and supply
Providing Production and product management information to consumers
o Gather and disseminate Production and product management information
particularly for farmers
o Provide advice and assistance to extend the harvesting and marketing season
using appropriate storage systems, processing, specific varieties and other
techniques, etc.
Undertake stakeholders capacity building on supplying and accessing MI
Key result area 4: Appropriate MIS regulating systems in place
Advise and help farmers to join farmer‘s groups or associations
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making a serious effort to fill the market information gap
A move towards more transparent markets in horticulture
o Help people to be aware and report actual prices to information gatherers
o Reduce the possibility of malpractice due to irregular movement of brokers
Train MIS officers to record the volumes of goods on offer and sold each day in an
ethical manner
Work towards improvements in market efficiency and transparency
organize and compile a directory of producers, traders, exporters and other categories
of actors
Undertake inspection of horticultural produce for conformity
Key result area 5: Appropriate monitoring and evaluation system in place
Establish a monitoring and evaluation unit
Regularly Monitor the proper functioning of the MIS
Undertake evaluations together with user groups on the effects of MIS to the
Horticulture sector development
2.3. Proposed implementation plan
To help achieve the key result area and the associated activities the implementation plans
have been proposed. The implementation plan is provided in Table 1.
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Table 2- Proposed implementation plan
Strategic Intervention Activities Y1 Y2 Y3 Y4 Y5 Responsible
1. ORGANIZATIONAL SCALE UP Reorganized the BoTT‘s Marketing
department to an agency level
x BoTT
Determine and implement optimal
staffing and infrastructure
x
2. SUITABLE MARKET INFORMATION SYSTEM
MODEL AND INFRASTRUCTURE
BoTT
1.1. Developing new market information models BoTT
1.1.1. Developed a range of low-cost market
information services at the local—district level,
and regional levels
1.1.1.1. Develop MIS technology and human resources BoTT
Acquire new central and local MIS ICT
infrastructure
Establish regional central MI
collection, processing and
dissemination unit
x
Establish regional marketing center at
Bahir Dar and automate with ICT
x
Establish Woreda town level
information points(2)
x
Establish village level information
points (6)
x
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Table 2- Proposed implementation plan……
Strategic Intervention Activities Y1 Y2 Y3 Y4 Y5 Responsible
Procurement of required hardware and software x
Develop and test working system prototype x
Assign the well trained Human resource x
Deployment and capacity Build of
ICT HR
Recruitment and deployment of relevant
personnel to operate the system
x
Training and experience visit of ICT staff x x
2.1.3. Build and strengthen stakeholder
partnership
Draw MOUs and sign contracts with sister
organization stakeholders
x
Collaborate with other stakeholders in
development of physical market infrastructure
x x x x x BoTT and
stakeholders
Undertake regular review of HM efficiency
with stakeholders
x x x x x
2.1.4. Development of market linkages
and channels
Create formalized market linkages for
producers and small traders
x x x x x BoTT and
stakeholders
Formulate producer-consumer networks through
farmer organizations
x x x x
Strengthen Value Chain Linkage x x x x x
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Table 2- Proposed implementation plan……
Strategic Intervention Activities Y1 Y2 Y3 Y4 Y5 Responsible
2.1.5. Develop capacity for well-functioning
of the newly Developed market information
models
Training and experience visits x x x x x BoTT and
stakeholders
2.1.6. Undertake Knowledge Management
(KM) and innovation through market
researches
Market and MIS research x x x x x BoTT and
stakeholders
Knowledge Management (KM)and sharing x x x x x
Undertake Horticulture market Exhibition x x x x x
3. DAY TO DAY AND ACCESSIBLE
MARKET INFORMATION DELIVERY
FOR ALL VALUE CHAIN ACTORS
BoTT, BoA,
and COPA
3.1 Providing market price information to
user groups
Gather information on price premiums for
different varieties of the same horticultural
crop, markets, demand, and supply every day
at 7 sites
x x x x x
Process information on price premiums for
different varieties of the same horticultural
crop, markets, demand, and supply every day
x x x x x
Disseminate information on price premiums
for different varieties of the same horticultural
crop, markets, demand, and supply every day
to user groups
x x x x x
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Table 2- Proposed implementation plan……
Strategic Intervention Activities Y1 Y2 Y3 Y4 Y5 Responsible
3.2. Providing Production and product
management information to Producers
Gather Production and product management
information particularly for producer farmers every
2 months
x x x x x
Process and disseminate Production and product
management information particularly for producer
farmers every three months
x x x x x
3.3. Undertake stakeholders capacity
building on supplying and accessing MI
Capacity building activities on supplying MI x x x x
Capacity building activities on using MI x x x x
3.4. Harmonize and integrate
horticulture MIS platform
BoTT and
stakeholders
Enhance/improve data
collection and Processing
Capacity build for data collectors and processors x x x x x
Data Storage and Retrieval Create and Maintain database
x x x x
Establish Promotions and
Feedback Mechanism
Conduct User survey x x x x
Creating awareness through various means(road
shows, media, word of mouth, advertisement,
cinema, association
x x x x
3.5 Develop capacity for information
processing, storage and dissemination
Train and exposure visit of personnel in information
management with the relevant institutions and other
stakeholders
x x x x BoTT and
stakeholders
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Table 2- Proposed implementation plan……
Strategic Intervention Activities Y1 Y2 Y3 Y4 Y5 Responsible
4. APPROPRIATE MIS
REGULATING SYSTEMS IN
PLACE
BoTT and
stakeholders
4.1. Establish farmer‘s groups or
associations Establish farmer‘s groups or associations x x x x
4.2. Help user groups and organizations
move towards more transparent markets
in horticulture
Establish pilot transparent markets in
horticulture sector
x
Help people to be aware and report actual prices
to information gatherers
x x x x
Reduce the possibility of malpractice due to
irregular movement of brokers
x x x x
4.3. Market Ethics and intelligence
Train MIS officers to record the volumes of
goods on offer and sold each day in an ethical
manner
x x x x
Market Intelligence x x x x
Work towards improvements in market
efficiency and transparency
x x x x
Establish legal system for illegal market
activities
x x x x
Undertake inspection of horticultural produce for
conformity
x x x x
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Table 2- Proposed implementation plan……
Strategic Intervention Activities Y1 Y2 Y3 Y4 Y5 Responsible
4.4. Market directory and data base Organize and compile a directory of producers,
traders, exporters and other categories of actors
x x
5. APPROPRIATE MONITORING
AND EVALUATION SYSTEM IN
PLACE
BoTT and
stakeholders
5.1. Regularly Monitor and mentor the ,
and periodically evaluate the proper
functioning of the MIS
Establish a monitoring and evaluation unit x x
Regular monitoring of MIS x x x x x
Undertake evaluations together with user groups
on the effects of MIS to the Horticulture sector
development
x x x x x
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2.4. Implementation strategies and modalities
2.4.1. Implementation strategies
The necessary and frontline activities suggested and described above will help achieving
each of the above objectives. For achieving the proposed objectives and activities the
following strategies are devised;
1. Since marketing information has been identified as the primary constraints in
development of the horticulture sector, a well-coordinated strategy of collection,
processing, and dissemination system with best ICT has to be followed.
2. Development of marketing infrastructure and market linkages, with appropriate
market intelligence has to be adapted
3. The strategy of leading the MIS through awareness building and capacity building has
to be adapted
4. Stakeholder partnership and the role of private sector involvement has to be well
considered
5. Technical support services at every level particularly to farmers and traders should be
made available to ensure adoption of appropriate crop production, postharvest
management in the horticultural crops production and trading.
6. Legal enforcement and regulated role of brokers should be established and adapted to
help reduce the transaction cost and equitable growth and benefit sharing in the
horticulture sector endeavors
7. Regular monitoring and evaluation should be in place for proper guiding of the MIS
The implementation of the proposed strategies will help the institutional ability and capacity
of the BoTT to enable it builds make to mitigate both external and internal challenges. The
plan implementation will also provide the actual process through which the strategic key
result will be achieved during the plan period. Through operations, the proposed MIS agency
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under BoTT will translate the key result areas into reality by developing and implementing
detail specific plans, which will originate from this indicative plan, which are aligned to the
BoTT‘s mandates and responsibilities.
2.4.2. Market information collection, processing and dissemination design and strategy
a) Regular type market information collection, processing and dissemination design and
flow
Markets-1- Woreta
Markets-2—Merawi
Markets-3—Bahir Dar
Markets-4—Gondar
Markets-5—Debre Tabor
Markets-6—Addis Ababa
Markets-7—Mekele
Regular type market
information (eg, price
information)
Collector -1
Collector -2
Collector -3
Collector -4
Collector -5
Collector -6
Collector -7
Raw Regular type market data
Processing and analysis
MIS Agency Unit
MI delivery in day-to-day basis
Producers Traders Consumers
Mecha
Producers
Fogera
Producers
Site 1 Site 2
Site 3
Site 1 Site 2
Site 3
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b) Once-in-a-while type market information collection, processing and dissemination
design and flow
Source-1-BoA
Once-in-a-while MI
Collector -1
Raw Once-in-a-while type market information
MI delivery in 3 months interval
Production & product
management handling
info
Input availability & price
Produce availability and
volume
Market situation
&extension
Sources-2- Input sup
Ag& Cooperatives
Sources-3- BoTT
Sources-4- Six Producer
sites from Mecha and
Fogera
Collector -2
Collector -3
Collector -4
Processing and analysis
MIS Agency Unit
Producers Traders Consumers
Mecha
Producers
Fogera
Producers
Site 1 Site 2
Site 3
Site 1 Site 2
Site 3
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c) Price data collection format
Market
Name and
code
Product Name
grade, and code
Units Per unit
price-1
Per unit
price-2
Per unit
price-3
Average
selling
price
Min Max Min Max Min Max
Onion Grade-1
Onion Grade-2
Onion Grade-3
Potato Grade-1
Potato Grade-2
Potato Grade-3
2.4.2. Budget and Cost Estimates
Management of resources will be guided by operational rationalization and modernization of
key processes, while cost saving measures, including creating partnerships and strategic
alliances, will be implemented to strengthen the financial resource base. While efforts will be
made to prudently use the available resources in order to realize the stated objectives, the
indicative plan acknowledges that the ability of the Agency to implement its key result areas
depends on the availability of adequate funding. The estimated budget for the
implementation of the activities is about Birr seven million. The estimation is made based on
the best experiences reviewed from, ECX in Ethiopia, other best Horticultural MIS practicing
countries such as Kenya, Indonesia, Bangladesh, and India.
For the coming five years a total budget of Birr 12850000.00 is estimated to accomplish the
planned activities.
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Table 3-Five years Budget Estimates for Amhara HMIS Implementation
Activity/objective
Estimated
Total Budget
1. Organizational scale Up 600000.00
2. Acquire new central MIS ICT infrastructure1 9,250,000.00
3. Deployment and capacity Build of ICT HR 500000.00
4. Build and strengthen stakeholder partnership 50000.00
5. Development of market linkages and channels 100000.00
6. Develop capacity for well-functioning of the newly Developed market
information models
200000.00
7. Providing market price information to user groups/collection, processing,
dissemination/
500000.00
8. Providing Production and product management information to
consumers/collection, processing, dissemination/
500000.00
9. Undertake stakeholders capacity building on supplying and accessing MI 200000.00
10. Harmonize and integrate horticulture MIS platform 200000.00
11. Develop capacity for information processing, storage and dissemination 200000.00
12. Market directory and data base 200000.00
13. Monitoring and Evaluation 350000.00
Total 12850000.00
1 Adapted from ICT and system design report
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2.4.3. Monitoring and Evaluation
The planning team recognizes the importance of monitoring and evaluation in the
achievement of the plan‘s intended results. Progressive monitoring should be carried out
based on the measurable indicators set out in the implementation matrix. The Agency should
then have a Monitoring and Evaluation Division dedicated to regular monitoring, and this has
been recognized as a key strategic direction. The monitoring system should be that, the
agency should have regular monitoring every three months of the year, and make use of the
results for the enhancement of its MIS activities. There should be also once in a year
evaluation with stakeholders to well guide the MIS and continue with best results.
2.4.4. Opportunities and threats of the plan and its implementation
There are identified possible opportunities and threats that may have their own influence on
either side for the successful implementation of the market information system for
horticultural products in the region.
Opportunities
Established farmers’ cooperatives and unions: In all of the target words, there are
marketing cooperatives and their unions which are working closely with the farmers.
Currently, the marketing intervention of these institutions is limited to the supply some inputs
such as fertilizer, the collection of price information and the purchase of agricultural produce.
These cooperatives, if they are well structured and strengthened shall be considered as good
opportunities for the effectiveness of the proposed MIS scheme.
Emerging consumer societies: These days, there are a number of consumer protection
societies being established. These are believed to be useful marketing actors along the value
chain.
Facilities: There are established Farmers‘ Training Centres(FTCs) in all of the rural kebeles
though at the current state they are not offering the intended service as expected. These
facilities can be used as a place where MIS ICT infrastructure can be established and
disseminated at kebele level.
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Reliable network infrastructure: The expansion and penetration of the Ethiotelecom
service is a good opportunity for the viability of the MIS in the region.
Threats
Brokers: Brokers do exhibit special place in the current MI system. They are pillars of the
market information who have controlled the price information, the source and destination of
the commodities. Besides, they are credible actors by both parties who connect buyers and
sellers and also transfer payment for transactions. Hence, unless, the MI scheme gives clear
direction for whom, how and when the farmer can sell its products, offering price
information per se can do little to the farmer. The role of the broker may remain persistent
along the value chain.
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3. Proposed ICT, System Design and bid document
The results of the need assessment study shows that the existing system wasn‘t designed
based on predefined market information model. Hence, it has many technical and functional
drawbacks and shortcomings that we have stated in PART I sub section 3.4 of this report.
Further, it is outdated and isn‘t integrated with other ICT based systems in the bureau. Thus
to avoid these problems, this study proposed a new integrated market information system for
the bureau in general and the two Woreda‘s in particular. This new IMIS system will have
the following characteristics:
It will be designed from scratch based on the proposed model in Section 3.1.
bellow
The system will support web, SMS and voice communication for market
information dissemination and delivery.
The system will be full- fledged and fully functional and operational to
disseminate and exchange the specified information stated in Section 3.1.2 bellow
The system can be expanded and upgraded to the specified sites based on capacity
and demand. Thus the office can provide regional, national or global wide market
information delivery.
The system will provide a permanent data storage for long term usage
The system will provide analyzed data reporting
The system will provide online data encoding by using smart-phone or computers
The system will provide market information using multiple interfaces like web,
voice and SMS.
The system will provide market information based on location and context of users
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The system will provide a searching to get specific information on market prices,
market price trends, production inputs, supplies and demands.
The system will provide supervision feature for policy makers and administrators
The system will integration with other software systems
The detail system analysis and development strategies are s stated in sub sections below.
3.1. MIS Modeling and Design
To develop this ICT-based MIS that support mobile communication and web based
technologies; first the MIS system should be modeled and designed. Hence, here based on
the need assessment and field visit report analysis, we develop the following MIS layout.
This layout shows all the possible interactions and market chain integrations between the
MIS service provider and other actors in the market.
3.1.1 Role and Responsibilities of Each Unit
For this ICT based agricultural market information design, the assumption for the role and
responsibilities of each block is described below.
Central MIS Agency: This unit is the central database for the specified market information
system. It should contain all the required functionalities, integrated software‘s, hardware‘s
and human resources that we stated in section 4.
District MIS Unit: This unit will be established at Mecha and Fogera worda. It will be the
main building block for the system. It should have well equipped ICT infrastructure that we
stated in section 4. This unit can be installed at the Woreda or at FTC based on the
requirement. This unit will composed of the following human resources.
Information Collectors: They will gather current market price information, agricultural
input demand and supply information, and agricultural product demand and supply
information from the market, producers, consumers and traders as stated in link G, H , L.
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ICT Professionals: They will pre-process the data gathered by the collector and upload that
data to the system. The data will include current market price information, agricultural input
demand and supply information, and agricultural product demand and supply information as
stated in link D in the block.
Supporting Sectors: This unit will include agricultural sectors, marketing agencies and
NGO‘s that will support the system, supply rules and regulations, supply agricultural input
and other required high level market information to the system.
Research Institutes: This include universities and other research institutes that will support
the systems in upgrading, maintaining and sustaining as stated in link B
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Policy Makers
Central MIS Agency (BoTT)
Traders
Processors Research Institutes
MIS Unit at District/ Worda ( Mecha
and Fogera )
Consumers
Web-based LCD Display Systems (at Mecha and Fogera
Site )
All Concerned Public (at Mecha and
Fogera)
A1 A2
B1
B2
C1
C2
D2 D1
E
F
G1
G2
H1
H2
I
J
Producers
Site 1 Site2
M
L2L1K
The detail market information and other information flow in this MIS link are described in
the following table (Table 1.1).
Diagram 2: MIS Layout
Design
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3.1.2. Types of Information Flow in the Link
The types of information that will be exchanged by the different actors in this ICT-based
MIS includes:
Current market price of the selected agricultural products
Detail market information
Agricultural input information
Agricultural product demand and supply information
Agricultural product quality information
Guidance and capacity building information
Rules and regulations
The detail market information and other information flow in this MIS link are described in
the following table.
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Table 3: Detail MIS link description
MIS Link or
Path Downlink Communication Information Types
Uplink Communication
Information Types Remark
MIS Link A Link: A1
Information type:
Rules and regulations
Supervision
Detail agricultural input supply information
Capacity building
Feedback and suggestions
Link: A2
Information type:
Detail Market Information
Agricultural Input requirement
Agricultural demand and
supply information
It will include both
the governmental
and NGO
MIS Link B Link: B1
Information type :
Access data
Detail Market Information
Link: B2
Information type:
Capacity building
Recommend upgrading and
new technology
Support on system security
and sustainability.
Feedback and suggestions
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Table 3: Detail MIS link description……
MIS Link or
Path Downlink Communication Information Types
Uplink Communication
Information Types Remark
MIS Link C Link: C1
Information type :
Detail Market Information
Detail demand and supply information
Link: C2
Information type:
Feedback and suggestions
Demand request
Quality suggestions
MIS Link D Link: D
Information type :
Detail Market Information
Detail agricultural input supply and request information.
Technical support information
Capacity building for the unit
Link: D2
Information type:
Upload market information
Upload demand and supply
information
Upload current market price
Upload Agricultural input and
supply request information
MIS Link E Link: E
Information type :
Detail Market Information
Detail agricultural input supply and request information.
Current market price information.
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Table 3: Detail MIS link description……
MIS Link or
Path Downlink Communication Information Types
Uplink Communication
Information Types Remark
MIS Link F Link: D
Information type :
Detail Market Information
Current market price
MIS Link G Link: G1
Information type :
Detail Market Information
Detail agricultural supply information.
Agricultural product quality information
Link: G2
Information type:
Detail agricultural demand
information
System comments and
feedbacks.
MIS Link H Link: H1
Information type :
Detail Market Information
Detail agricultural input request information.
Agricultural product quality information
Link: H2
Information type:
Detail agricultural demand
information
Current market price
Detail agricultural input
supply information
System comments and
feedbacks.
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Table 3: Detail MIS link description……
MIS Link or
Path Downlink Communication Information Types
Uplink Communication
Information Types Remark
MIS Link I Link: I
Information type :
Detail Market Information
Detail agricultural input supply information.
Agricultural product quality information.
Current market price information.
This link will be
authorized by the
district MIS unit.
All the market
actors will be used
this link
MIS Link J Link: J
Information type :
Detail Market Information
Detail agricultural input supply information.
Agricultural product quality information.
Current market price information.
Virtual link
between the public
and LCD display
MIS Link K Link: K
Information type :
Detail Market Information
Current market price information.
General Announcement.
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Table 3: Detail MIS link description……
MIS Link or
Path Downlink Communication Information Types
Uplink Communication
Information Types Remark
MIS Link L Link: L1
Information type :
Detail agricultural input supply information
Detail agricultural product demand information.
Capacity building
Announcement
Link: L2
Information type:
Detail agricultural input
demand information
Agricultural product supply
information
Current market price
System comments and
feedbacks.
MIS Link M Link M:
Information type:
Current market price
Announcement
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MIS Central System
Processors, Consumers, Traders
Producer
s
MIS unit at Mecha & Fogera
Policy Makers
Voice SMS Web
XML
Voice SMS Web
Other Systems
3.2. ICT-based MIS System Layout
There will be a central station in Bahir Dar in BOTT. It will have a datacenter with high
performance network and servers. All software systems and databases will be installed and
managed in this central station. The system will have interfaces for voice, SMS and web-
based communications with clients based on their interest and context. The system will have
an integrated central database for all communications. All market information analysis and
data organization will be handled automatically once the data is encoded by responsible
personnel. The figure below depicts stakeholders of the MIS and their means of
communication. In addition, other systems can easily communicate with MIS through web-
service interface.
Diagram 3: ICT mapping for the MIS Layout in diagram 2.
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3.3. High Level System Description
The central system resides with four interfaces for voice, SMS, web and other software
systems. All those interfaces access the same database for latest information. This system is
expected to automate fully or partially market information processing and analysis. Collected
market data should be encoded online, processed by the system and gives output to users
based on their interest and context. In general, the system is expected to have the following
functionalities:
Provide a permanent data storage for long term usage
Provide analyzed data reporting
Provide online data encoding by using smart-phone or computers
Provide market information using multiple interfaces like web, voice and SMS.
Provide market information based on location and context of users
Provide a searching to get specific information on market prices, market price trends,
production inputs, supplies and demands.
Provide supervision feature for policy makers and administrators
Integration with other software systems
a. Voice: this interface is accessible using hotline phone calls. It is a simple IVR
(Interactive Voice Response) with predefined keys for set of information. This
interface is most important for farmers who have difficulties in using mobile text
messages. Information provided by this interfaces includes latest market prices,
announcements, whether information, production input information, and some other
important messages. Users of this interface are producers, consumers, traders,
processors, policy makers and MIS units.
b. SMS: this interface is available to mobile users who need to get information in text
form. Like voice interface, information provided by this interfaces includes latest
market prices, announcements, whether information, production input information,
and some other important messages. Users of this interface are producers, consumers,
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traders, processors, policy makers and MIS units. This interface can also be used to
upload information into the central system by authenticated users.
c. Web: web interface is accessible by using web-browser like Mozilla Firefox or
Internet Explorer. It can also be accessed using mobile browser. This interface can be
used by public to get market information as well as by MIS experts to interact with
database. MIS experts and market data collectors must login to the system through the
web-interface in order to insert latest information, get reports or processed market
data. The public can get daily market prices, supplies and demands in summarized
format.
d. XML: this interface uses a web-service technology in order to interact with other
software systems that may exist in BoTT or some other bureaus that need market
information.
3.4. System Deployment and Implementation
In this section, we have discussed the ICT based MIS deployment and implementation
guidelines and strategies. For this, the required infrastructures, human resources and
implementation strategies are discussed in detail.
3.4.1. Required Infrastructures
A fully function MIS needs to have reliable ICT infrastructure that makes it accessible
anywhere, at any time. Like any other ICT-supported system, it needs to have well-equipped
infrastructure. The central system, which is accessible by several users, has to be powerful in
terms of performance and reliability.
3.4.1.1. Required Software
a. Integrated MIS: a system that includes IVR, SMS, web-based MIS and web-service
which takes daily market information, process the data, archive data and provide
market information based on user demand. This system :
Should be platform-independent
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Should support portal service
Should be multilingual
Should have live support feature for further information provision
should identify location and context of users
Should provide feedback feature to users
Must be secured
accessible through mobile text, voice and web from anywhere, at any time
b. Database Management System: an enterprise database management that will be used
by the integrated MIS. Enterprise DBMS with long-term storage of data having the
following functionalities:
Support reporting service
Platform independent
Backup capability
Good security
c. Dynamic Website: A website with backend management, role management, portal
integration, interaction with application service and web-service, deployable on any
platform, multilingual support, with interactive services like feedback and live
support mechanisms.
d. System Security: Antivirus and intrusion protection systems for IMIS and computers
at MIS units.
3.4.1.2. Required Hardware
The required infrastructure for the central MIS agency includes:
a. Datacenter: Standard data center with physical security, air conditioning and
sufficient power supply needs to be established.
b. Servers: High performance servers for the database and application software with
backup server are required. Those servers will store data permanently.
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c. Network Devices: Redundant routing and switching devices are required make the
services available all the time.
d. Broadband Internet: Sufficient internet bandwidth has to be purchased that
accommodates all the services.
e. IVR: Voice modem with standard interface with servers and network devices needs to
be installed to serve voice users. It must have switching capability in order to serve
multiple users at the same time.
f. SMS Modem: A messaging modem and subscription with short code is required at the
center to serve mobile text users. The modem has to have standard interface to servers.
g. Security devices: Data stored on servers must be protected from intruders or viruses
for long term storage. Security device, namely firewall, has to be installed at the
gateway.
h. Power supply: Power backup, like UPS, has to be installed in the datacenter. In
addition, generator is required in case of main power supply failures.
The MIS centers at the two Woreda‘s must be equipped with:
a. LCD display: Outdoor displays that will be mounted at the two Woreda‘s are
required. Those devices will get latest market information from the central system
through one of the computers at the ICT centers.
b. Computers: Computers for market price collectors, MIS experts and network
administrators are required. A computer dedicated to the LCD screen is also required
to retrieve information from central station and update the display.
c. Network: All computers at the ICT centrals must be connected to each other and to
the central system using internet network.
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d. Smart-Phone: The smart mobile phone will be used to upload and download market
information data by ICT technicians and data collectors.
3.4.1.3. Required Human Resource
Human resource required for the ICT part can be organized in two ways: required at the
Woreda ICT centers and required at central system.
Database administrator: Administrator with BSc degree in IT or Computer science
is required to manage and administer stored data. This person is also responsible to
take backups, make sure service is available and data is secured.
Network administrator: this IT expert is responsible for all communicating devices
including the modems. Network administration requires BSC degree in Information
technology or computer science.
IT Technician: a dedicated IT technician is required at each ICT centers with a
minimum
3.5. Technical Bid Document for System Implementation
This Standard Technical Bidding Document for Procurement of Integrated Market
Information Systems for the specified Woreda‘s in particular and the region in general has
been prepared for use in contracts to design and deployment of the proposed integrated
market information system.
To prepare this technical bid document, we have used the market layout and responding ICT
mapping that are stated in section1.1. and 1.2. Thus, to deploy the complete and full-fledged
systems, the hardware and software infrastructures listed out in the technical specification
table below are required. This document will be used for bidding process as technical
specification for required equipment and systems. For final bidding process some
customization and technical specification revision work will be done by the developer of this
report. It needs the attachment of the general bidding document that is prepared by the
national procurement agency.
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Table 4: Bid Document descriptions and budget
Type of
Infrastructure
Functionalities Unit Quant
ity
Estimated
Cost (Birr)
Remark
For
Central
MIS
Center
1. Software’s
IMIS Software type : Integrated Market Information system
Software Description: system that includes IVR, SMS, web-
based MIS and web-service which takes daily market information,
process the data, archive data and provide market information
based on user demand. This system :
should be platform-independent
should support portal service
should be multilingual
should have live support feature for further information
provision
should identify location and context of users
should provide feedback feature to users
must be secured
accessible through mobile text, voice and web from anywhere,
at any time
Support and Warranty: Two Years
Should provide complete User Manual
Training for administrators and end users.
Pcs 1 2,000,000.00
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Table 4: Bid Document descriptions and budget……
Type of
Infrastructure
Functionalities Unit Quant
ity
Estimated
Cost (Birr)
Remark
Database
Managem
ent System
Software Type : database management system
Software Description : Enterprise DBMS with long-term
storage of data having the following functionalities:
Support reporting service
Platform independent
Backup capability
Good security
Support and Warranty: Two Years
Should provide complete User Manual
pcs 1 500,000.00
Dynamic
Website
Software Type : Dynamic Website
Description: A website with backend management, role
management, portal integration, interaction with application
service and web-service, deployable on any platform,
multilingual support, with interactive services like feedback
and live support mechanisms.
Support and Warranty: One Years
Should provide complete User Manual
Training for administrators and end users.
Pcs 1 170,000.00
System
Security
Software Type: Security Software
Software Description: Antivirus and intrusion protection
systems for IMIS and computers at MIS units.
Support and Warranty: Two Years
Should provide complete User Manual
pcs 1 300,000.00
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Table 4: Bid Document descriptions and budget……
Type of
Infrastructure
Functionalities Unit Quant
ity
Estimated
Cost (Birr)
Remark
B. Hardware’s
Servers Item Type : Servers
Item Description: High performance servers for the database,
application software and backup purposes required.
Those servers will store data permanently.
Should have sufficient slots for additional memory and
storage.
Should have multiple network interface cards
Should extra /redundant power supply unit.
Support and Warranty: Two Years
Should provide complete User Manual
Required Connectors and interfaces
Pcs 3 1,000,000.00
IVR
Modem
Item Type: Interactive voice recognition modem.
Item description: Voice modem with standard interface with
servers and network devices needs to be installed to serve voice
users.
It must have at least 16*1 users switching capability in order
to serve multiple users at the same time.
Compatible with the IMIS software
Should have USB interface to connect it to the server
Support and Warranty: Two Years
Should provide complete User Manual
Required Connectors and interfaces
pcs 1 100,000.00
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Table 4: Bid Document descriptions and budget……
Type of
Infrastructure
Functionalities Unit Quant
ity
Estimated
Cost (Birr)
Remark
SMS
Modem
Item Type: Short message service modem.
Item description: A messaging modem and subscription with
short code is required at the center to serve mobile text users.
The modem has to have standard interface to servers.
Should have USB interface to connect it to the server
Support and Warranty: Two Years
Should provide complete User Manual
Required Connectors and interfaces
Pcs 1 100,000.00
Standard
Data
Center
Standard data center with physical security, air conditioning
and sufficient and separate power supply, data cable try, rack,
backup power needs to be established.
pcs 1 1,300,000.00
Network
device
Network device that include routers(1), 24- port switches(2),
firewall‘s(1), patch panels(2), twisted pair (cat6) cable, fiber
termination box(1), patch cord cable(48+4), RJ45 connector,
node outlets
Should provide complete User Manual
Required Connectors and interfaces
pcs 500,000.00
Desktop
Computers
Item type: desktop computer
Item description: desktop computer for advanced processing
purpose
Pcs 10 150,000.00
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Table 4: Bid Document descriptions and budget……
Type of Infrastructure Functionalities Unit Qua
ntity
Estimated
Cost (Birr)
Rem
ark
For
District
MIS
Unit
A. Software’s
Application
software for
LCD display
data Controller
Software type: Desktop Application
Item Description : desktop application software that interacts with
central system and updates data displayed on the LCD
pcs 1 150,000.00
B. Hardware’s
Desktop
Computers
Item type: desktop computer
Item description: desktop computer for basic office purpose
Pcs 5 75,000.00
Web based LCD
Display System
Item Type: Web based LCD display System
Item description: Outdoor displays that will be mounted at Mecha and
Fogera Woreda‘s are required.
This device will get latest market information from the central system
through web from one of the computers at the ICT centers.
It should be capable and compatible to access web based data from the
central MIS system.
It should also read the data in voice format in parallel.
It should also access SMS data from mobile phone.
It should support Amharic and English language
It should include all the necessary accessories, connecting data and power
cables, fixings, configurations software‘s, standing towers, and other
required accessories to make the system full-fledged and fully functional.
The size of the display should be 2*1 m2
Support and Warranty: Two Years
Should provide complete User Manual
Required Connectors and interfaces
pcs 2 1,000,000.00
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Table 4: Bid Document descriptions and budget……
Type of
Infrastructure
Functionalities Unit Quantity Estimated
Cost (Birr)
Rem
ark
Network
Switches
Item Type : Internet Switches
Item description: Standard 24 Port switches for the MIS Unit
Pcs 2 40,000.00
Smart
Phones Item type: Smart phone
Item description: The smart mobile phone will be used to
upload and down load market information data for the ICT
technicians and collectors.
It should be smart phone with android operating system
It should support 2G, 3G and 3.5 G Networks or more.
Its android version should be 4.4 or more
Pcs 6 60,000.00
Data
Cables
Item Type: Data cable s
Item Description: twisted pair ( cat 6) data cable for network
interconnection to the center and the display.
It should include RJ45 connector
Meter 100 5,000.00
Electric
Power
cables
Item Type : Electric Power cable
Item description : PVC Sheathed PVC insulated Electric
power cable for the LCD display and other power supply in
the MIS unit
Cable type: Siemens NYY 0.6/1KV or equivalent
It should be 3*2.5 mm2
type
The electric power cable should be from the standard
manufacturing company and should be sufficient enough to
carry single phase power to the signal booster.
Should include compatible interfaces with the signal booster
Meter 100 50,000.00
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Type of
Infrastructure
Functionalities Unit Quantity Estimated Cost
(Birr)
Rem
ark
UPS and
Air
Condition
er
Standard Original UPS
Standard Air Conditioner
Pcs 2 1,000,000.00
Physical
Implement
ation
Profession
al Cost
Data Center Implementation:
Standard data center with physical security, air conditioning
and sufficient and separate power supply, data cable try, rack,
backup power needs to be established
Pcs 1 300,000.00
District MIS Unit Physical Implementation:
Layout Modeling and Design
Physical Implementation
Testing
Pcs 1 300,000.00
Training for administrator, end users, officers Pcs 100 150,000.00
TOTAL 9,250,000.00
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3.6. ICT Implementation Action Plan Strategy
The detail action plan for this project implementation is outlined in the table below.
Table 5: ICT implementation plan
S.
No
Activities Responsible Offices/Bodies Required
Time2
Required
Budget(Birr)3
As Developer /
Implementer/Su
pplier
As Consultant/ Supervision
1 Software Development and Implementation :
IMIS Software
Dynamic Website
Application software for LCD display data
Controller
Consultant or
bid winner
A team will be formed for
software development
supervision, validation and
accreditation purpose from
AgroBig, BoTT and Bahir Dar
University.
Six
Month
2,320,000.00
2 Buying Other Supporting Software‘s
System Security Software (Antivirus)
Database Management Software (Optional)
The bid winner The technical validation and
accreditation work will be done
by BDU.
BoTT will do the bidding
process
AgroBig will follow up and
supervise the bidding process
Six
Month
800,000.00
2 Here, we assumed the average time required for project implementation.
Most of the tasks will be implemented in parallel. Hence the maximum project
Implementation life time should not be more than eight month 3 Here, we assume the average budget required for project implementation
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Table 5: ICT implementation plan…..
S.
No
Activities Responsible Offices/Bodies Required
Time4
Required
Budget(Birr)5
As Developer /
Implementer/Su
pplier
As Consultant/ Supervision
3 Buying Hardware‘s and Network Infrastructures.
Servers
Network device that include routers(1), 24- port
switches(2), firewall‘s(1), patch panels(2),
twisted pair (cat6) cable, fiber termination
box(1), patch cord cable(48+4), RJ45
connector, node outlets devices
IVR Modem
SMS Modem
Desktop Computers
Web based LCD Display System
Smart phones
Data and Power Cables
Air Conditioner
UPS
The bid winner The technical validation and
accreditation work will be
done by BDU.
BoTT will do the bidding
process
AgroBig will follow up and
supervise the bidding process
Six
Month
5,380,000.00
4 Here, we assumed the average time required for project implementation.
Most of the tasks will be implemented in parallel. Hence the maximum project
Implementation life time should not be more than eight month 5 Here, we assume the average budget required for project implementation
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Table 5: ICT implementation plan…….
S.
No
Activities Responsible Offices/Bodies Required
Time6
Required
Budget(Birr)7
As Developer /
Implementer/Su
pplier
As Consultant/ Supervision
3 Data Center Implementation:
Standard data center with physical security, air
conditioning and sufficient and separate power
supply, data cable try, rack, backup power
needs to be established
A team will be
formed from
BoTT and Bahir
Dar University
AgroBig
Two
Month
300,000.00
4 District MIS Unit Physical Implementation:
Layout Modeling and Design
Physical Implementation
Testing
Training for users
A team will be
formed from
BoTT and Bahir
Dar University
AgroBig
3 Month
300,000.00
5 Training for administrator, end users, officers A team will be
formed from
BoTT and Bahir
Dar University
AgroBig 1 Month 150,000.00
TOTAL 9,250,000.00
6 Here, we assumed the average time required for project implementation.
Most of the tasks will be implemented in parallel. Hence the maximum project
Implementation life time should not be more than eight month 7 Here, we assume the average budget required for project implementation
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To implement this ICT based MIS, the agency has two possibilities. These strategies are
described as follows:
Direct Contract with Bahir Dar University: In this case, the project can be given directly
to Bahir Dar University. By doing this, the office can implement the project with less cost
and time. The process of bidding and evaluation will be avoided and the time and money
required for this purpose will be removed. Further, the team will be formed from the previous
MIS and IVR system developer and the current proposed system developer group. The
existing system is developed by Bahir Dar University. Further, the University is now
developing other MIS for one service provider in Addis. The University also now developing
many other software‘s for different stakeholders. This makes the University a good candidate
because of the stated experiences. Hence, we can develop full-fledged and fully functional
system with short period of time. Additionally the system sustainability and support will be
effective and timely available due to the closeness and interworking collaboration between
the two organizations.
Open Bidding: The office can made open bid and select the system developer in competitive
bases. But it would be costly, time taking, and even the winner of the bid may not have
enough experience and thus the developed system may not be effective enough as we want
.In this case, BoTT can use Bahir Dar University as a consultant to supervise and manage the
project.
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PART III
ANNEXES
PART III: ANNEXES
Amhara National Regional State Bureau of Trade and Transport
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1. Literature consulted
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in Karnataka state – A case of onion. Ph.D thesis. University of Agricultural
sciences, Dharwad.
Bureau of finance and Economic Development (BoFED). (2014). Development Indicators of
Amhara Region 2011/12. Bahirdar, Ethiopia.
Central Statistical Agency(CSA). 2003. Agricultural sample survey: reports for 2001 / 2002.
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Ferris S. and P Robbins.(2004). Developing marketing information services in Eastern Africa.
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Kotler P.,(2012). Marketing Management, 14th
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MoARD.(2005).Improving Productivity & Market Success of Ethiopian Farmers. MoARD,
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Shepherd A,. (1997). Market information services: Theory and practice. FAO
SID-Consult.(2008). Agricultural Marketing in Ethiopia: The Case of Arrero, Goro and Dehana
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The World Bank.(2011).ICT In Agriculture: Connecting Smallholders to Knowledge, Networks,
and Institutions. The International Bank for Reconstruction and Development,
Washington, DC.
The World Bank.(2011).ICT In Agriculture: Connecting Smallholders to Knowledge, Networks,
and Institutions. The International Bank for Reconstruction and Development,
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Tschirley David L., Kavoi Mutuku Muendo, Miltone Ayieko, and Michael T. Weber(2004).
Improving Kenya’s Domestic Horticultural Marketing System:Competitiveness,
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Agricultural Policy and Development, November 2004.
2: List of people contacted
Name Place Organization Purpose
Amhara National Regional State Bureau of Trade and Transport
Need Assessment of Market Information Service Provision and Plan of Action in The Amhara Region P a g e 121
Habtamu Tsegaye Bahir Dar AgroBIG KII
Aychew Kebede Bahir Dar AgroBIG KII
Zelalem Addis Bahir dar BoTT KII
Mebiratu Simachew Bahir Dar BoTT KII/FGD
Demelash Tadele Bahir Dar BoTT KII/FGD
Marta Eshetie Bahir Dar BoTT KII/FGD
Degu Genete Merawi OoTT KII
Dessalegn Lake Merawi OoTT KII
Misganaw Molla Merawi DoA KII
Algaw Denekew Merawi Cooperatives Off. KII
Algaw Denekew Merawi Expert (union) KII
Belay Zeleke Merawi Koga Project KII
Degu Genetie Merawi OoTT KII
Jegnie Bezie Wereta OoTT FGD
Alemush Mandefro Wereta OoTT FGD
Kassahun Kebede Woreta AgroBIG FGD
Takele Wereta OoTT FGD
Assefa Wereta OoTT FGD
Merkew Asnakew Woreta DoA KII
Nardos Wassie Woreta DoA KII
Tesfaye Mengistu Bahir Dar BoA KII
Bitew Melaku Bahir Dar CopA KII
Emishaw Workineh Bahir Dar Amhara Seed
Agency
KII
Samuel A. Addis Ababa ECX (PR) KII
Tsegaye Berhe Addis Ababa EHA KII
Mitiku Odie Addis Ababa ECX (ICT-expert) KII
Ebrahim Dawud Merawi Trader KII
Endalshi Workie Merawi Seed supplier KII
Atsede Fisiha Merawi Retailer KII
Mulu Alemu Merawi Retailer KII
Tenagne Fenta Merawi Broker KII
Belinesh Kinde Bikolo Abay trader KII
Gudainesh Worku Merawi Customer KII
Gobeze Abebe Woreta Trader KII
Alemye Kelemwork Woreta Customer KII
Kibrom Girma Woreta Customer KII
Misganaw Alebachew Woreta broker KII
Tihitina Tadesse Woreta Wholesaler and
Trader
KII
Rahel Mersha Woreta Wholesaler and
Trader
KII
Misganaw Zemene Gondar trader KII
Yibeltal Embiale Bahir Dar trader KII
Memberu Demisse Mecha/Koga Irr KA Farmer FGD
Gedamu Ayalew Mecha/Koga Irr KA Farmer FGD
Yanhi Amlak Tadesse Mecha/Koga Irr KA Farmer FGD
Reda Anabie Mecha/Koga Irr KA Farmer FGD
Amhara National Regional State Bureau of Trade and Transport
Need Assessment of Market Information Service Provision and Plan of Action in The Amhara Region P a g e 122
Mulat Kifle Mecha/Koga Irr KA Farmer FGD
Molla Mekonnon Mecha/Koga Irr KA Farmer FGD
Chekile Much Mecha/ wngutii Farmer FGD
Mola Yihun Mecha/ Kudimi Farmer FGD
Gebre tegegn Mecha/ Kudimie Farmer FGD
Aysheshum awoke Mecha/ Kolela Farmer FGD
Gebre Zelek Mecha/ Enguti Farmer FGD
Ayehualem Yismaw Mecha/ enguti Farmer FGD
Bekele Belay Mecha/ Kudimie Farmer FGD
Tegenaw Adugna Fogera/Bebex Farmer FGD
Gared Assefa Fogera/Bebex Farmer FGD
Qes Belachew Admas Fogera/Bebex Farmer FGD
Fenta Kasa Fogera/Bebex Farmer FGD
Gebere Tamirat Fogera/Bebex Farmer FGD
Nigat Engdaw FogeraShina Farmer FGD
Desalegn Tesfa FogeraShina Farmer FGD
Kebte Engidaw FogeraShina Farmer FGD
Muche Amare FogeraShina Farmer FGD
Ayenew Alelign FogeraShina Farmer FGD
Abere Dagnew FogeraShina Farmer FGD
Mucheye Demis FogeraShina Farmer FGD
Sisay Abebaw FogeraShina Farmer FGD
Tafete Belete FogeraShina Farmer FGD
Belaynesh Admas FogeraShina Farmer FGD
Tirunesh Ayalew FogeraShina Farmer FGD
Tirunesh Ayele FogeraShina Farmer FGD
Yamrot Feten FogeraShina Farmer FGD
Huluager Damte FogeraShina Farmer FGD
Gashaw Bayew Fogera/Bebex Farmer FGD