Structure and functioning of chickpea markets in Ethiopia: evidence based on analyses of value chains linking smallholders and markets
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Shiferaw, B.; Teklewold, H. 2007. Structure and functioning of chickpea markets in Ethiopia: evidence based on analyses of value chains linking smallholders and markets. IPMS Working Paper 6. 63p. Nairobi (Kenya): ILRI.
Permanent link to cite or share this item: http://hdl.handle.net/10568/571
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This paper looks into one of the key policy questions - understanding of how rural grain markets function in the context of market liberalization and how the emerging architecture of marketing channels determines the distribution of costs, margins and prices for different participants in the marketing chains. We explore these issues using the case of chickpeas, one of the newly emerging export commodities being promoted for expansion in Ethiopia. Despite its important role and good potentials, the chickpea production system is not adequately market-oriented and competitiveness of smallholders is limited by low productivity and poor quality of traditional varieties (Shiferaw et al. 2007). Despite the policy interest to expand chickpea production for exports, there is lack of empirical evidence on the structure, conduct and performance of the chickpea marketing systems in the country. This study attempts to narrow this gap by examining the chickpea marketing system in one of the major growing areas and provides new insights on how the performance of the marketing system may be enhanced to improve competitiveness. Using primary data collected from a survey of marketing channels in one of the major chickpea growing areas in the country (Ada';a-Liben), we map the marketing channels and value chains for chickpeas and estimate the distribution of costs, margins and prices for the different participants in the identified value chains. The first section presents the conceptual issues in the analyses of marketing channels, value chains and measurement of marketing costs. This is followed by description of the study area, the survey data and the empirical approach and methods used in the analysis. The next section presents the main result with emphasis on identification and mapping of chickpea marketing channels and the distribution of costs, margins and prices across different market participants. The last section presents a summary of the key findings and conclusions, highlighting implications for policy.