Chickpea Production, Technology Adoption and Market Linkages in Ethiopia Chris O. Ojiewo On behalf of TL III Team-Ethiopia and partners Pan-African Grain Legume and World Cowpea Conference Livingstone-Zambia Feb 28 – Mar 4, 2016

Chick pea production in Ethiopia by zone

Place of Chickpea Production among Major Pulse Crops in Ethiopia

3

Faba bean31%

Fieldpea14%

Haricot bean 19%

Chickpea14%

Lentil7%

Grass pea10%

Soyabean1%

Fenugreek2% Gibto

2%

Faba bean33%

Fieldpea13%

Haricot bean 17%

Chickpea15%

Lentil6%

Grass pea12%

Soyabean2% Fenugreek

1%Gibto

1%

Share of Major Pulse Crops to Total Pulse AcreageAverage (2009/2014): 1.6 million ha

Share of Major Pulse Crops to Total Pulse ProductionAverage (2009/2014): 11.5 million tons

Source: CSA, Various Reports (2009-2014)

Chickpea Area, production and yield in Ethiopia during the TLII & TLIII Intervention Years (2007-2014)

Source: CSA (2007-2014)

Chic

kpea

are

a an

d pr

oduc

tion

(‘000

)

Chic

kpea

pro

duct

ivity

(t/h

a)

Chickpea Technology Dissemination Under TL Projects

Regional State

National

Zone

Woreda/District

Kebele/village TL focus

Technology Adoption in Sample TLII Intervention areas

Adoption trends - Chickpea adoption increased from 30-80%

0%10%20%30%40%50%60%70%80%90%

2006/07 2009/10 2013/14Season

Improved variety

Local Desi

Country 000 Ha Kg/Ha ‘000 MT 1. India 9553 922 26413 2. Pakistan 996 599 1786 3. Iran 557 530 885 4. Australia 538 1430 2304 5. Turkey 409 1199 1474 6. Myanmar 336 1472 1482 7. Ethiopia 236 1913 1278 8. Tanzania 152 745 330 9. Mexico 118 1822 654 10. Malawi 116 576 200

1 The Success Stories of Ethiopian Agriculture

Ethiopia’s chickpea productivity is the highest in top ten producing countries of the world (FAOSTAT, 2012-14 avg.)

0102030405060708090

Kg/h

a/yr

Ethiopia has the highest yield gain of chickpea among the top 10 producing countries in the world, 2000-14, (FAOSTAT, 21/01/2016)

The position of Ethiopia’s chickpea production

3/9/2016 10 Source: Compiled from FAOSTAT, 2013

3/9/2016 11

STRUCTURE OF THE CHICKPEA MARKETS

Source: Bekele & Hailemariam, 2007

80% of the total annual chickpea trade volume

factors favoring the large share of local markets:

a. low incentives for exporters (low volume & unreliable supply)

b. grain quality problem (standards)

c. Problem of price competitiveness

The marketing supply chain involves a number of actors to reach the final consumers

Increases transaction costs

Chickpea Markets: LOCAL MARKETS

EXPORT MARKETS

highly variable Ethiopia’s share in the global chickpea export market is very

limited: average about 4% by value and volume (2000-2010);

However, it accounts for 63.5% of the total chickpea export from Africa (ranks first in Africa)

Ethiopia Rest of world

945,680

96%

4%

Market share of Ethiopia in world exports (2010-12 average – million USD)

Composition of Ethiopian Pulse Export

14

Composition of Ethiopian Pulse EXportAverage (2010/2012): 709 thousand tons

Composition of Ethiopian Pulse EXportAverage (2010/2012): 7.8 Billion Birr

Field Peas0.13%

Chickpea25.02%

Haricot bean45.60%

Others1.81%

Lentil2.65%

Faba beans18.02%

Mung bean6.77%

Field Peas0.11%

Chickpea25.56%

Haricot bean

43.88%Others1.92%

Lentil3.12%

Faba beans17.02%

Mung bean8.39%

Source: :Ethiopian Customs and Revenue Authority, 2014

0

10

20

30

40

50

6019

61

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

Expo

rt v

alue

(US$

mill

ions

)

1 The Success Stories of Ethiopian Agriculture

Ethiopia’s chickpea export earnings also grew substantially (FAOSTAT, 22/01/2016)

2014: Volume exported: 48,739 t Value: 22.56 M USD

The s

hare

of m

ajor E

thio

pian

chick

pea

expo

rt m

arke

ts to

to

tal c

hick

pea t

rade

volu

me f

or th

e per

iod

2005

-201

0

Sour

ce: c

ompil

ed fr

om E

thiop

ian C

ustom

s Auth

ority

30.51%29.50%

12.62%9.11%

4.93%2.13%2.65%

1.19%0.95%1.17%

0.85%0.66%0.40%0.48%0.32%0.46%0.29%0.35%0.24%0.19%0.32%0.13%0.20%0.07%0.05%0.06%0.06%0.05%0.03%0.03%0.00%0.00%0.00%0.00%0.00%

0% 5% 10% 15% 20% 25% 30% 35%

PakistanUnited Arab Emirates

SudanBangladesh

IndiaSaudi Arabia

SingaporeIsrael

JordanDjibouti

Iran, Islamic Republic ofTurkey

United StatesBulgaria

EgyptCanadaYemen

NetherlandsAlgeria

LebanonSenegal

ChinaSomaliaBelgium

SpainMauritiusIndonesia

UkraineSouth Africa

CubaIcelandGreece

United KingdomSweden

Italy

% trade volume

86.60%

Major Export Market Destinations…

3/9/2016 16

Share of Regional Chickpea Export Destination Markets: Global Chickpea Export (2010): 822 million USD

3/9/2016 17

Source: Compiled from FAOSTAT, 2013

INDIAN SUB-CONTINENT

39.3%

MIDDLE EAST24.4%

EUROPE15.1%

NORTH AFRICA10.2%

SOUTH & CENTRAL AMERICA

3.4% NORTH AMERICA3.2%

ASIA2.9%

SUB-SHARAN AFRICA

1.3%

COMMON WEALTH OF

INDIPENDENT STATES0.2%

Major Export Destination …

3/9/2016 18

Source: Compiled from FAOSTAT, 2013

913.08882.93 875.02 867.45

788.88740.54

686.27

556.22

697.28

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

1,000.00

EUROPE SOUTH & CENTRAL AMERICA

NORTH AMERICA NORTH AFRICA MIDDLE EAST ASIA SUB-SHARAN AFRICA

INDIAN SUB-CONTINENT

World

Uni

t Pric

e (U

S$ P

er to

nne)

Unit Value of Chickpea Export in Major Regional Markets (US$ per ton): 2010

Major Export De stination …

I. Poor product quality Mixture: kabuli with desi, or with other crops like grasspea and foreign materials

sources of quality problems: 1. Poor post harvest practices (harvesting and

threshing), 2. Deliberate mixture for unfair advantages (some

farmers and traders/exporters) Small seed size (kabuli) Mostly < 7 mm ( >= 8 mm for export market)

Major challenges in Ethiopian chickpea export?

3/9/2016 19

II. Chickpea export price determination is entirely based on spot prices (present demand)

Exporters are price takers and highly vulnerable to price risk

III. Lack of marketing information • Lack of information on prices, demand,

and quality requirements of different chickpea export markets

III. Lack of marketing information • Lack of information on prices, demand, and

quality requirements of different chickpea export markets

IV.Unable to meet export demand not only in

terms of quality but also in terms of supply

Major challenges …?

3/9/2016 21

Government commitment e.g. establishment of ECX untapped potential in terms of yield gap (local

varieties??) • Cropping calendar does not coincide with

major chickpea competitors

III.Poorly coordinated and extended market chain High transaction costs

V. High price fluctuation in local markets

Opportunities

3/9/2016 22

• Spatial advantage: proximity to major export markets The major global chickpea export markets

(75%) (S. Asia, M. East, and Europe) are situated at a convenient distance

• Ethiopian chickpea production can safely be considered as organic: limited application of chemicals and external inputs

Amasegnalehu (Thank you)