Malt Barley Contract Farming and Agricultural Cooperatives in Ethiopia

Academic Paper , 2020 , 39 Pages

Business economics - Investment and Finance

This paper seeks to discern the relationship between agricultural cooperatives and contract farming scheme both in the modern malt barley value chain sector in Ethiopia. It ponders over various results of secondary data sources of studies.

Despite the fact that contract farming is at its inception in Ethiopia, GTPs I and II (Growth and Transformation Plans), promotes smallholders commercialization via contract farming and agricultural cooperatives as pillar in the growth. Contract farming is an option way-out to make agricultural commercialization viable. It is an institution that eases supply of agricultural produce for firms and access for input and output market for smallholders. Currently malt barley contractual farming is widely practiced in Ethiopia (Arsi, Shoa) due to the emerging investment of multiple beer factories. Agricultural cooperatives play a significant role in harnessing smallholders and firms in the value chain of malt barley. Along the value chain of malt barley marketing mainly Assela Malt Factory, beer firms, and traders, exist. Malt barley collection from Primary Cooperatives exceeded in 2014 crop year, because of five birr premium price per quintal. However, the amount stipulated in the contract and the collection varies as evident of side selling.

TABLE OF CONTENTS

ACRONYMS

ABSTRACT

1. INTRODUCTION

2. LITRATURE REVIEW
2.1. Debates on Contract Farming
2.2. Drivers for contractfarming
2.3. Drivers for firms
2.4. Drivers for smallholder farmers
2.5. Agricultural Cooperatives in Ethiopia
2.6. The Role of Cooperatives in malt barley Contract Farming

3. THEORETICAL BACKGROUND OF CONTRACT FARMING
3. 1. New Institutional Economics Perspectives and Contract Farming
3.2. Institution, Institutional arrangements and contractfarming
3.3. Transaction Cost Theories of Contract Farming
3.4. Theory of Collective Action and Contract Farming

4. BREWERY INDUSTRY LINKED MALT BARLEY VALUE CHAIN MARKET IN ETHIOPIA AND ITS IMPACT ON SMALLHOLDES
4.1. Malting factories and breweries of malt barley value chain
4.2. Malt barley Import status
4.3. Contract farming arrangements of malt companies and breweries
4.5. Current malt barley market behaviors and actors
4.6. Public Private Partnership impact on local smallholders

5. OPPRTUNITIES AND CHALLENES OF LINKING SMALL HOLDERS WITH CONTRACT FARMING VIA COOPERATIES
5.1. Opportunities of cooperatives in linking smallholders with contract farming
5.2. Challenges of cooperatives in linking smallholders with contract farming

6. CONCLUSION AND RESEARCH GAP

REFERENCES

• College: Haramaya University
• Course: Agricultural Commercialization
• Author: Tesfa Sisay (Author)
• Publication Year: 2020
• Pages: 39
• Catalog Number: V1161370
• ISBN (PDF): 9783346561084
• ISBN (Book): 9783346561091
• Language: English
• Tags: malt, barley, contract, farming, agricultural, cooperatives, ethiopia