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Working with national and regional partners, the Livestock and Irrigation Value chains for the Ethiopian Smallholders (LIVES) project has designed sustainable value chain interventions to promote agriculture as a business for both livestock and irrigated crop commodities.

This article shares lessons from the implementation of these interventions. The goal of these activities is to promote market-oriented agriculture through increasing access to input/service supply and market opportunities for all value chain actors by accelerating efficiency and competitiveness in the business sector.

Each of the interventions targeted both new and existing agribusinesses engaged in input supply, service delivery and marketing or processing of commodities. Each of these businesses had different ownership structures—public, private, group, and cooperative/union.

Priority commodity value chains and intervention areas in four LIVES regions in Ethiopia.

Appropriate interventions were designed and promoted in the 31 districts in 10 zones and 4 regions—Amhara, Oromia, Southern Nations, Nationalities and Peoples (SNNPR) and Tigray—where the project is developing commodity value chain systems for dairy, beef, small ruminant, poultry, apiculture, fodder, fruit, and vegetable commodities.

Technical and business development support was offered to value chain actors under the initiative including in basic business, organization, and leadership skills; enhancing business to business and farmer to business links to market and financial services, cost/benefit analysis, advice on alternative financing (financial leasing) and cost saving transactions (mobile banking).

Achievements

As of 31 March 2017, 2,356 agribusinesses had received support from LIVES. Out of these, 1,753 are engaged in input/service supply and 603 in marketing/processing businesses.

LIVES supported Agribusiness by March 2017

The project has facilitated new ideas through commodity platform meetings, new technology demonstrations and other means that have led to the establishment of new businesses. Out of the total number of agribusinesses supported by the project, 589 (25%) have established new businesses, out of which 454 are engaged in input/service supply and 135 in marketing or processing.

LIVES supported Agribusiness by commodity

These businesses have increased access and use of input supplies and services for smallholder farmers and enhanced value addition and market opportunities for value chain actors.

In the mid-term community survey conducted by LIVES in 2016 (covering the time 2012 to 2015) about 49% and 24% of smallholders who have access to and use, the public extension service (for information and knowledge, capacity building/training and linkages support) are satisfied and very satisfied, respectively.

Key lessons and challenges

Despite the achievements of the project in using agribusiness approaches and methods to promote the integration of farmers with markets; challenges have been encountered and lessons learnt in the implementation process.

The most common challenges are lack information by smallholders about the availability of improved input/service supply and processing/ marketing businesses, limited financial access to promote agriculture as a business, and little interest from the private sector in doing business in the agriculture sector. A lack of empirical cost/benefit data to enable business plan has affected the cash flow of community-owned businesses. Information asymmetry, moral hazards and free riding have also been observed.

The importance of addressing market-related challenges is reflected in a number of platform meetings and coaching/mentoring sessions held during the project period. Value chain actors also face commodity- and location-specific market challenges in handling increased production from the adoption of improved farming methods, better post-harvest handling techniques and scaling out.

The cheapest way to enhance realized results in response to these challenges is promoting market-oriented extension services; engaging financial service providers to offer alternative financing (leasing) and delivery channels (mobile banking); encouraging the establishment of private businesses (including family and community-owned); integrating project activities with existing women and youth empowerment activities; and ensuring reliable of local repair and maintenance services for selected technologies.

The project is working with partners to provide information, facilitate market opportunities (including collective marketing), link different value chain actors and promote local demand to address marketing bottlenecks.

The International Water Management Institute (IWMI) and the Livestock and Irrigation Value chains for Ethiopian Smallholders (LIVES) Project recently conducted a training on irrigation scheme management for farmers and agricultural experts in the Mehtsab Azmati Irrigation Scheme in Rama, Tigray.

The Mehtsab Azmati scheme supplies irrigation water for 8000 households in the Hamido plain helping them to obtain higher yields than they could without irrigation. The scheme’s 2000 hectares of irrigated land is an emerging success story for irrigation development in Ethiopia. Farmers there produce vegetables, fruits (mainly mango) and the scheme also has potential for fodder development through irrigation.

Held on 16–17 January 2017 at the Mehtsab Azmati irrigation scheme in Rama, Tigray, the training enhanced the knowledge and skills in irrigation development and value chain development for 26 farmers and agricultural experts.

Earlier, in December 2016, a team of experts comprising of IWMI, LIVES, Tigray Regional State Agricultural Bureau & Rural Development, and the Tigray Agricultural Research Institute (TARI) had conducted a field visit/scoping study to the Mehtsab Azmati irrigation scheme to find out the opportunities and challenges in developing integrated and market-oriented production. The mission also aimed at understanding the local implementers’ capacity and perception of irrigation scheme management.

The study team identified a significant potential for Rama to serve as a market hub for vegetables, fruits, and fodder in the region. But gaps were identified in livestock and irrigated crops value chain development with particular challenges related to efficient use of water including salinity, rising groundwater level among others that could undermine the sustainability of the scheme.

In addition, the significance of training for experts and farmers on irrigation scheme management were among remarkable gaps underlined in the scoping study mission report. To this end, the Region Bureau of Agriculture requested LIVES and IWMI to share their experiences in order to fill these gaps.

The irrigation scheme management training focused on addressing and responding to to some of the issues emerging from the scoping study. It focused on creating an understanding among participants of the benefits and impact of efficient irrigation scheme management in resolving multifaceted agricultural water management challenges and in contributing to value chain development.

Participants were equipped with knowledge and skills in improving the effectiveness, efficient, and timely use of resources, methods and strategies for irrigation development, agronomy and watershed management. The training covered crop water requirement, furrow irrigation method (including soil moisture distribution pattern), irrigation scheme management, criteria to evaluate water delivery service, the significance of collecting/monitoring irrigation data in irrigation scheme. In addition, lesson from Koga Irrigation scheme were shared with the participants.

Insights and observations from the scoping study and field visit confirm that the scheme is experiencing severe disruptions in land and water productivity and increased salinity and nutrient depletion which affects its productivity.

The training was led by Alemseged Tamiru and Desalegne Tadesse of IWMI-Ethiopia; Fanuel Laekemariam of Wolayta University, and Gebremedhin Woldewahid from LIVES.

Livestock and Irrigation Value chain for Ethiopian Smallholders (LIVES) is an International Livestock Research Institute (ILRI)-led project funded by the Department of Foreign Affairs, Trade and Development (DFATD) of Canada. It aims to contribute to enhanced income and gender equitable wealth creation for smallholders, and other value chain actors in Ethiopia. IWMI is responsible for the irrigation value chain components of the project.

Women making traditional hives from bamboo and mud (photo credit: ILRI/Mesfin Tefera).

Apiculture is one of the new ventures introduced by the Livestock and Irrigation Value chains for the Ethiopian Smallholders (LIVES) project in South Wollo, Amhara Region.

Locally made transitional beehives, which are easily managed by women, were installed close to farmers’ homesteads and LIVES facilitated awareness-raising activities on the importance of enhancing women’s involvement in beekeeping.

One of the immediate outcomes of the intervention has been an increase in the number of women beekeepers, from virtually none to 15 women beekeepers at present in intervention areas in South Wollo.

The use of top-bar beehives contributed to an increased household income not only because of increased yields but also because of the higher quality of honey produced. This growth is leading to growing demand for high-quality  honey in the market and opening up new opportunities for upscaling this intervention model into areas beyond the intervention sites.

Zeritu Ahmed, a female smallholders in Kalu District attended apiculture training organized by the LIVES project and the district office of agriculture. Afterward, she became one of the innovative full-time farmers engaged in apiculture overcoming constraints related to existing gender norms and the challenges of working in a male-dominated enterprise.

Zeritu is now a model farmer for other farmers (both men and women) in the surrounding area and has earned respect for her courage, innovativeness and for being a role model for other women to venture into apiculture.

Zeritu’s experience and her role as a model beekeeper shows that integration of women into the honey value chain has a positive effect on household income and employment. The program has encouraged partnerships between women groups of beekeepers and the Honey Producers Associations in South Wollo to further strengthen the honey value chain as a whole. A revolving fund that can provide affordable input technology services to group members and embedded management skill training by the Honey Processors’ Association is now being explored to ensure the initiative is sustainable.

Setting up input supply mechanism for bee colonies and wax and also engaging in honey production simultaneously would enable more women bee keepers to generate higher income from apiculture. And these groups would also help in bulking produce and enhance access to markets thereby reducing instances of arbitrary selling of honey at low prices. Increased support to the initiative is expected to yield enormous benefits in terms of gender empowerment, value addition to products in the honey value chain and in improving incomes for smallholders.

The Livestock and Irrigation Value Chains for Ethiopian Smallholders (LIVES) project aims to support the efforts of the Ethiopian government to transform smallholder agriculture in the country.

Using a value chain development approach, LIVES has implemented various interventions using the pillars of knowledge management and promotion.

The project has used different knowledge management and promotion approaches including agricultural knowledge centres, study tours, field days, commodity platforms, technology demonstrations, campaigns, and exhibitions and fairs with different but complementary objectives, to address different target groups at different levels.

Agricultural knowledge centres have supported organizational learning of public extension services by improving access to knowledge and developing capacity for knowledge capturing and sharing. Study tours have been used to motivate and influence value chain actors and support systems to adopt or support livestock and irrigation value chain interventions through exposure to external knowledge and experience, while field days promote and spread innovations in communities by demonstrating effects of intervention in households. Commodity platform meetings operate at different levels, and are mainly used for planning interventions. At the operational level, they have promoted interaction, shared knowledge and created linkages among value chain actors for new business opportunities and at a higher level, they have brought key value chain bottlenecks to the attention of policymakers.

A range of promotional activities have also been implemented by the project; among them technology demonstrations, school milk days, and technology exhibitions and fairs. A number of livestock and irrigation technology demonstration events have been held in LIVES sites which have helped value chain actors learn first-hand the benefits of using specific improved technologies and practices. Among the technologies that have been promoted and adopted by producers and input and service providers include livestock feed choppers and balers. The project has facilitated linkages between farmers and the suppliers of these technologies.

Additionally, participating in campaigns such as the ‘World School Milk Day’ has created awareness about, and demand for, milk consumption particularly among children. These campaigns have also brought together a wide range of actors ranging from policymakers, dairy producers, input and service providers, milk processors and marketers, dairy cooperatives, community leaders and the media. At the same time, technology exhibitions and financial fairs have supported the creation of linkages and business partnerships among value chain actors. In most of the cases, LIVES has demonstrated technologies in events organized by other stakeholders or co-organized such promotional events. Particularly, cattle fattening fairs have been uniquely initiated by LIVES and implemented in collaboration with private and public partners mostly in the Amhara region. The events have benefited cattle fatteners, animal traders and policymakers.

Each of these knowledge management and promotional activities has its strengths. In terms of cost effectiveness and influencing at the community level, field days, technology demonstrations and product fairs have been found to be the best options. Study tours are effective in creating motivation and demands for adoption of improved technologies and practices but are, however, expensive and they require significant organizational and facilitation capacity. Commodity platforms, exhibitions and fairs have also been effective in creating awareness, interactions and exchanges among value chain actors and support systems. Linkage facilitation among value chain actors for exchanges of ideas, innovations and new business opportunities has been key outcome of LIVES sharing and promotional events.

Gender inclusiveness has also been a key feature of LIVES knowledge management and promotional activities. Field days have engaged women at the community level (about 21% participation) in LIVES intervention districts. In commodity platform meetings, despite the efforts to involve women, their participation in such meetings has limited (about 17% participation). In contrast, women focused study tours organized in nearby sites have involved more women and couples (about 23% female participation). But there are challenges in engaging women in study tours that require travelling long distances especially when no other family members are available to take up household responsibilities during this time.

The project team has found that involving couples and married women in long distance experience sharing visits which keep them away from their homes for more than a day distrusts their day-to-day life and affects participation. Consequently, couples and married women are now encouraged to join events organized close to their villages, such as field days, technology demonstrations and community-based product fairs. In addition, married women selected for experience sharing visits that involve more than a day’s travel from their homes are encouraged to involve and consult their husbands on the benefits of participating in such learning events.

In many LIVES sites, partners have adopted some of the successful knowledge management and promotional approaches. In West Shoa Zone, for example, partners in the district have organized field days and study tours to LIVES intervention households. Local NGOs have also organized study tours for producers and extension staff from domain districts to intervention households, and input and service providers. In addition, most of the intervention districts’ teams have mobilized resources, such as computers, furniture and internet subscriptions, to set up knowledge centres. In Amhara, the cattle fattening fair initiative has been taken up by the regional government, while in Oromia, commodity platforms have been supported by the regional government.

LIVES experience in organizing and facilitating learning and sharing events has given valuable lessons than can inform the scaling out process of successful interventions. Firstly, no single approach is best. A combination of different approaches with appropriate sequencing of learning and sharing activities should, therefore, be used. Secondly, appropriate targeting and selection of participants particularly for study tours is important.  Study tour participants should be those producers and input and service providers who are already engaged, or are likely to engage, in specific value chain activities. Thirdly, successful learning and sharing events require a basic level of organizational and facilitation capacity. Clearly articulating learning outcomes and tailoring learning activities in terms of how knowledge will be applied practically is key in maximizing investments in learning and sharing events. In addition, follow-up activities help in ensuring knowledge gained is used and actions proposed are taken up and linkages created. Finally, organizing learning and sharing events with lasting impact requires the support of the actors likely to play a role in the application of knowledge gained.

In Ethiopia, traditional institutions have emerged with the expansion of traditional irrigation schemes and most of them were established and operated on the initiative of the farmers. These often have very limited financial and technical capacities. Current trends show that developing infrastructure is the major concern in irrigation development efforts. However, managing the schemes is largely overlooked, particularly for externally initiated irrigation schemes. Operation and maintenance of the irrigation schemes, particularly those at tertiary levels, are commonly not well set and often neglected or left to farmers without building their capacities.

This working paper reports on a study in Ethiopia to: i) assess the nature and diversity of irrigation institutions in the study schemes; ii) evaluate existing institutions service delivery with respect to selected attributes and draw useful lessons; and iii) identify appropriate interventions.

The study focused on 10 irrigation schemes located in four regional states of Ethiopia (Tigray, Amhara, Oromia and SNNP). We clustered the study schemes as modern, semi-modern and traditional, using selected criteria (operation and maintenance service delivery, managing financial service delivery, level of inequity) to generate empirical evidence for evaluation of their performances.

The results found two forms of irrigation institutions: irrigation water users associations (IWUA) and irrigation cooperatives or water committee. More than 30% of the irrigation schemes considered in the study, regardless of their typology, had no institution. Membership in the irrigation institution for traditional schemes was 100%, while the average membership both in modern and semi-modern schemes was about 70% of the respondents. This contrasts with the new proclamation in Ethiopia on IWUA which suggest mandatory membership for any water user in a scheme.

Without exception, bylaws were either not detailed enough to address scheme specific problems or not recorded at all. Ambiguity associated with these, and probably presence of non-member water users, deterred the decision-making processes and the enforcement of rules and regulations for water use, thus create opportunities for free riders. This also explains the reason for occasional conflict between irrigators and the inequity of water distribution within scheme.

In many cases, irrigation institutions service delivery limited to operational management and other services, such as financial management, were not common even at those schemes where irrigation fee exists. Problems associated with a lack of empirical evidence as to what to pay for and how much to pay and the application of flat rate—regardless of the amount of irrigation water used, which is not measured—and crop types grown as currently practised will not act as an incentive for prudent water use.

Establishing the amount and types of irrigation water fees will be an important step to finance irrigation schemes. Understanding this diversity and these gaps and tailoring actions to local conditions is vital efforts to improve the service delivery of irrigation institutions in Ethiopia. Second, the service required for the sustainable management of irrigation schemes and mechanisms to operate them needs to be standardized.

Download the working paper:

Haileslassie, A., Hagos, F., Agide, Z., Tesema, E., Hoekstra, D. and Langan, S. 2016. Institutions for irrigation water management in Ethiopia: Assessing diversity and service delivery. LIVES Working Paper 17. Nairobi. Kenya: ILRI.

This working paper focuses on water delivery performance of 10 smallholders irrigation schemes in four regions of Ethiopia, representing diverse water sources, distribution systems, command areas (50–6000 ha) and number of beneficiary farmers (233–500 farm households) and across agro-ecologies as represented by elevation ranges (1500–2725 masl).

Relative irrigation supply (RIS), irrigation intensity (Ii), cropping intensity (CI), farm level adequacy (FLA), sustainability of irrigated land (SIL), and equity and field application efficiency were employed as performance indicators.

The results show that irrigation typology developed in this study enabled to identify three relatively homogeneous irrigation schemes typologies: modern, semi-modern and traditional. There was apparent diversity of the study schemes in terms of indicators used. At typology level, as illustrated by the RIS, the highest amount of water was diverted for semi-modern schemes (RIS of 3.84); while the highest water delivery at farm relative delivery (FRD) was recorded for the modern schemes (FRD 2.21).

Traditional schemes consistently showed lower value for both RIS and FRD. Regardless of their typologies, all study schemes suffer from mismatch of water demand and supply. The lower the RIS and FRD values, the stronger was the water supply disparities between irrigation reaches. Assessment of farmers’ perception on fairness of irrigation water delivery substantiate these arguments.

Implicitly, it is important to track the fate of diverted excess water. Field observation and empirical evidences show divergent points of losses of excess water indicating focus areas of improved water conservation on smallholder irrigation schemes. For example the largest proportion of over supplied water (~100%) in the semi-modern schemes and in traditional schemes was lost in the conveyance and distribution systems. For modern schemes water losses in the processes of conveyance was low (26%), while the significant proportion of water (76%) was lost on farm. In view of this evidence, we concluded that irrigation schemes in Ethiopia, regardless of their typology, have low water delivery performance. As every scheme has shown its own strength and weakness, concluding sustainability in terms of typology is misleading and this suggests that policy directions should be based on composite sustainability indices.

Download the working paper:

Agide, Z., Haileslassie, A., Sally, H., Erkossa, T., Schmitter, P., Langan, S. and Hoekstra, D. .2016. Analysis of water delivery performance of smallholder irrigation schemes in Ethiopia: Diversity and lessons across schemes, typologies and reaches. LIVES Working Paper 15. Nairobi, Kenya: ILRI.

This working paper employs a trivariate probit model with double selection to address the issue using data collected from smallholder farmers in Ethiopia. After using a two-step procedure to adjust for sample selection bias, gender of household head, land ownership and access to a livestock centred extension service are found to have a significant effect on farmers decision to use credit for livestock production.

The results showed female-headed households, farmers with a large plot of land and farmers that have access to livestock centred extension services are more likely to utilize credit for livestock production. However, since the effect of land ownership squared is negative, the effect of land ownership lessens for those who own a very large plot of land. The study highlights the fact that lending to female-household heads may lead to increased access to animal-sourced foods for rural households. Furthermore, the study shows that improving farmers’ access to credit should be supported by a focused extension service that addresses the special needs of female farmers.

Download the working paper:

Shiferaw, K., Gebremedhin, B. and Legesse, D. 2016. Factors determining household allocation of credit to livestock production in Ethiopia. LIVES Working Paper 21. Nairobi, Kenya: ILRI.

The paper is based on three MSc theses and one ongoing PhD study. Based on the analysis, the paper recommends intervention options for genetic improvement and conservation of the goat resources and for sustainable production systems under which the goat populations are raised. Morphologically, the majority of the Ambo goat population have a patchy coat colour pattern. Pure white and mixed coat colours describe the Gondar goat population and the majority of the goats are horned, males have ruff but not the females. Similarly, Woyto-Guji is described by patchy, plain and spotted coat colour. Both Arsi-Bale Highland and Lowland goat populations can be characterized dominantly by plain coat colour of black and white. However, the second dominant coat colour pattern in the highland and lowland goat populations, respectively, is patchy and spotted coat colour pattern.

Molecular analysis revealed very narrow genetic differentiation with only two haplogroups or maternal origins (haplogroup A and G). The highest number of haplotypes was obtained in Gondar goat population and the lowest in Ambo.

Demographic expansion analysis showed two recent and rapid expansion events of the goat populations. Most of the variation in the goat populations is explained by within population variation and the pair-wise population differentiation estimates were very low. This is because of the presence of large population admixture.

The major challenges of the goat production in all the study areas are disease, drought, feed and water shortages, in ranking order. The goat marketing practice is traditional in all the study areas.

Genetic improvement options for these goat populations need to consider the production environments in which the populations are maintained. Selective breeding could be considered as a suitable breeding strategy with application of genomic and reproductive technologies as appropriate. Selective breeding together with intervention options to improve the production environment to overcome the production constraints ranked by farmers would contribute to designing sustainable production systems for the goat populations studied. For this, a parallel development in infrastructure and institutional framework is required.

Download the working paper:

Mekuriaw, G., Gizaw, S. and Tegegne, A. 2016. Genetic-phenotypic and production-system diversity in goat populations in Ethiopia: Options for sustainable production. LIVES Working Paper 22. Nairobi, Kenya: ILRI.

Dairy farming systems in Ethiopia have been extensively characterized. However, a comprehensive characterization of dairy systems in the highlands across the value chain supported with quantitative data and a valid statistical analysis is rare in the literature.

The LIVES project has initiated case studies through its MSc sponsorship program to characterize dairy systems in the highland states of Ethiopia, namely Amhara, Tigray, Southern Nations, Nationalities and Peoples’ region (SNNPR) and Oromia. This working paper synthesizes and analyses two case studies in five districts of Amhara and Oromia states.

This working paper identified characteristic features of smallholder dairy farming in the highlands of Ethiopia, reclassifies sample farmers to the highland dairy farming systems with quantitative data and statistical analysis, and identifies system-specific constraints and leverage points for developing the dairy value chain.

The study found that smallholder dairy farming in the highlands is diverse in characteristics and constraints. A multinomial logistic regression analysis was conducted to re-classify the sampled farmers in the study areas into rural, peri-urban and urban categories based on five categorical and seven covariate variables representing scale of production, production resources, production practices, breeds and genotypes used, marketing objective and contributions to livelihood.

The statistical model classified 83.5% of the sampled farmers correctly to their observed categories of dairy farming systems. The variables that significantly contributed to the classification were the breeds and genotypes kept, daily milk production, earning from livestock, and cow feeding practice. However, the peri-urban and urban systems classified poorly with 50–65% correct classification, indicating the two systems might share some similar characteristics.

The importance of livestock in general and dairy production in particular varied across systems. While livestock production is most important activity for nearly 100% of the urban dairy farmers surveyed, its role as the most important or sole source of livelihood declines to 3.3% and 13.1% of the farmers in rural and peri-urban areas, respectively.

The contribution of livestock to the annual farm income is highest for the urban farmers. However, livestock is also very important source of farm cash income in rural areas, where cropping plays a major livelihood role, for some 44.2% of the interviewed farmers who earn ETB 20,000–40,000 annually. Annual cash income from crop production is lower than ETB 9000 for almost all the urban and peri-urban farmers interviewed, whereas about 84.5% of the rural farmers earn more than ETB 9000 per annum from crop production.

Another classifying characteristics is the type of breeds and genotypes kept by farmers. Using a generalized multinomial regression model, it was found that the rural dairy farmers are 3.3 times more likely when compared to urban farmers to keep low grade crossbred cows with exotic blood level of less than 50%. On the other hand, peri-urban farmers are significantly more likely (P<0.05; odds ratio = 0.94) to keep medium-grade cows than urban farmers. Urban farmers are more likely to keep high grade cows with exotic blood level of greater than 75%, but the difference between urban and peri-urban systems was not statistically significant. The urban, and in some cases the peri-urban, systems are generally described as landless dairy farmers. The urban farmers in the major cities and owns are less likely to practice crop farming. On the contrary, urban farmers in regional towns in the current study are sort of mixed livestock-crop farmers, albeit on very small plots of land, the average crop land holding being 0.025 and 0.15 ha in West Gojam and West Shoa.

The major constraints identified included low scale of production, low productivity that varies across systems, failure to maintain exotic inheritance at farm level resulting in herds with mixed genotypes which are not amenable to recommendation for value chain interventions, least access by the rural system to artificial insemination (AI) service and questions by the urbanites on its efficiency, heifer supply least satisfactory among breeding services, concentrate feed cost threatening urban/peri-urban dairies, unhygienic milk handling and consumption, particularly in rural areas, price of milk generally too low for producers, especially for rural farmers. Leverage points corresponding to the challenges were suggested for developing the dairy value chain in the highlands.

Download the working paper:

Gizaw, S., Megersa, A., Muluye, M., Hoekstra, D., Gebremedhin, B. and Tegegne, A. 2016. Smallholder dairy farming systems in the highlands of Ethiopia: System-specific constraints and intervention options. LIVES Working Paper 23. Nairobi, Kenya: ILRI.