Wheat Value Chain Needs Fundamental Transformation
By: Kassahun Mamo
Posted on: 2017-01-05

As part of the ongoing efforts in place and to contribute in addressing to the challenges the manufacturing sector face, Addis Ababa chamber of commerce and sectoral Associations has initiated a wheat value chain study with a view to manufacturing sector in Ethiopia.

On welcoming speech of the workshop, Secretary General of AACCSA, Ato Getachew Regassa said that such type of value chain studies have crucial contribution for the improvement of wheat production in Ethiopia. Since wheat is among the most nutritious cereal crop, it has to be produced widely. Moreover, to ensure high level production and productivity of wheat and satisfy the whole wheat value chain actors and consumers there is a need to utilize improved wheat manufacturing technology, he stressed.  

Wheat is an important staple food in the diets of many Ethiopians. Its production and marketing becomes the means of livelihood for millions of small holder households. It is also a critical raw material for the domestic wheat industry, which provides an important contribution to employment opportunity and value creation activities in the agri-food sector.

In the workshop, consultant of the study, Ato Assefa Hagos presented an overview of wheat value chain analysis in Ethiopia. According to him the strategic importance of wheat production has resulted in a strong involvement of the State and many other stakeholders at all levels of the wheat value chain.

 The survey result investigates wheat value chain actors and their value addition roles, analyze major constraints facing manufacturing industries and determine possible strategies for economic actors superior value creation activity.

During the survey, manufacturing industry participants were asked about what really?  The survey result also found in rank order that determines most the quality of their wheat products include; quality of raw material, efficiency and factory plant type, employees work knowledge and Company Leadership.

According to Assefa Hagos, the consultant believes that effective wheat value chain industry in Ethiopia could be made possible through a Fundamental Transformation – Meaning adding meaningful value to a wheat value chain.He added that marketing exchange doesn't rely on the maximum of learning about customer needs and designing new product offerings to suite those needs.   The study pinpoints that linkage among chain participants is very weak.

Participants in the work shop pointed that traditional way of transaction is one of the challenges in the wheat value chain. So, they stressed to focus on the value creating system, where growers, suppliers, milling industries and customers work together to create value.

The study recommends to the needs of reconfiguration of roles and relationships among actors.Agricultural machineries can be acquired   through different means; via cooperatives,  farmer’s unions and association or close relatives and interested groups coming together,  etc... Growers and milling industries should make a close relationship to create value way beyond focusing on economic value creation only, the study indicated.

Manufacturing industries must actively involve in improving organizational leadership by focusing on    a supply chain activities. Economic Power is still in the hands of growers not consumers, hence company owners should work for an environment of abundance so that they may see economic power shift to consumers.

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