Journal of Economics and Sustainable Development www.iiste.

org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

Review on Barley Production and Marketing in Ethiopia

Samuel Weldeyohanis Kifle
A Seminar Submitted to the Department of Agricultural Economics and Extension,College of Agriculture and
Veterinary Medicine,JIMMA UNIVERSITY
In Partial Fulfillment of the Requirements for the Degree of MASTER OF SCIENCE IN Agribusiness and value
chain management

Abstract
Agriculture is the major supplier of raw materials to food processing, beverage and textile industries. It accounts
for more than 85% of the labor force and 90% of the export earnings. Cereal production and marketing are the
means of livelihood for millions of households in Ethiopia and is the single largest sub-sector within Ethiopia’s
agriculture, far exceeding all others in terms of its share in rural employment, agricultural land use, calorie intake,
and contribution to national income. Barley is the fourth most important cereal crop in the world after wheat,
maize, and rice, and is among the top ten crop plants in the world .Globally, European Union, Russian
Federation, Ukraine, Turkey and Canada are the top five largest world Barley producers where, On the African
continent, Morocco Ethiopia, Algeria, Tunisia and south Africa were the top five largest barley producers. This
study was aimed at reviewing Barley production and marketing in Ethiopia, with specific objectives of reviewing
the production and productivity of Barley in Ethiopia, the importance and consumption of Barley in Ethiopia,
marketing actors and margin distribution of barley in Ethiopia, the value chain actors of barley and the
constraints of Barley value chain and marketing Ethiopia. The data were collected from secondary sources
mainly from FAOSTAT, CSA and different published materials on barley value chain in Ethiopia. The general
idea of the review shows that Ethiopia has potential for Barley production but the producer faced with lack of
modern storage and high postharvest losses. On marketing side, low price of product, lack of storage and low
quality of product are the major problems of the barley marketing activities. According to the study the major
constraints identified as factors that affect Barley Value Chain includes: Shortage of supply of disease resistant
and high yield varieties ,Weed and pest occurrence ,Low soil fertility and low soil pH,Poor soil drainage ,Frost
and drought ,Diseases, such as scald, net blotch, spot blotch and rusts, Rising costs of transport ,Market price
fluctuation and others. In Barley marketing, the major actors identified during the review were; farmers, traders,
cooperatives and consumers while in the case of value chain the major actor’s involved were farmers, traders,
cooperatives, unions, wholesalers, processors and consumers. According to the review, farmers are forced to
capture a lower share of profit margin due to low price.
Keywords: Barley, production, marketing, Ethiopia

1. INTRODUCTION
1.1. Background of the Review
Ethiopia is the second-most populous country in Sub-Saharan Africa with a population of 96.5 million, and
population growth rate of 2.5% in 2014 (WB, 2015) Agriculture dominates the Ethiopian economy. It is the
major supplier of raw materials to food processing, beverage and textile industries. It accounts for more than
85% of the labor force and 90% of the export earnings (MOFED 2005).
Cereal production and marketing are the means of livelihood for millions of households in Ethiopia
and is the single largest sub-sector within Ethiopia’s agriculture, far exceeding all others in terms of its share in
rural employment, agricultural land use, calorie intake, and contribution to national income (Shahidur, 2010).
Barley is the fourth most important cereal crop in the world after wheat, maize, and rice, and is among
the top ten crop plants in the world (Akar et al. 2004). Globally, European Union, Russian Federation, Ukrian,
Turkey and Canada are the top five largest world Barley producers where, Europian unions produce the greatest
quantities of barley with an estimated production of nearly 60 million tons followed by Russian federations with
a production of about 20 million tons according to Untied state of Agricultural institute estimate in 2014.On the
African continent, ,Morocco Ethiopia ,Algeria, Tunisia and south Africa were the top five largest barley
producers for the year 2014 with estimated production of approximately 2.1 million tones,1.7 million tones,1.3
million tones,0.9 million tones and 0.307 million tons respectively.
Barley is an important grain crop in Ethiopia and has diverse ecologies being grown from1800 to 3400
m altitude in different seasons and production systems (Muluken, 2013)and makes Ethiopia being the second
largest producer in Africa, next to Morocco, accounting for about25% of the total barley production in the
continent (FAO, 2014) and recognized as one of the world’s most ancient food crop, which is believed to have
first domesticated about 10,000 years ago from its wild relatives in the Fertile Crescent of the Near East and
center of diversity in Ethiopia.
According to the 2014/2015 forecasts from Ethiopia’s Central Statistics Authority, of the 12.6 million

91
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

hectares under cultivation of the grain crops ,80.78% was under cereals which contributed 87.36% of the grain
production and Barley took up about 8 and 7 percent 0f the grain crop area, and production respectively
(CSA,2014/2015).Between 2003/04 and 2013/14, the number of smallholders growing barley increased from 3.5
million to 4.5 million; yields increased from 1.17metric tons per hectare to 1.87 metric tons per hectare; and total
production grew from 1.0million tons in 2005 to about 1.9 million tons in 2014 (CSA, 2005; CSA, 2014).
There are two types of barley that farmers grow in Ethiopia: food barley and malt barley. The majority
of barley that farmers grow is food barley and it is the main ingredient for several staple dishes such as injera,
porridge, and bread. Food barely is a cheaper cereal than maize, wheat, and teff and is often used as a substitute
for lower income families. Recently, there has been an increasing demand for farmers to grow malt barley,
which presently constitutes 10 percent of the total barley production. With the introduction of several new malt
factories in the country, domestic demand is growing and is showing no signs of slowing down.
Farmers in Ethiopia have an opportunity to meet the growing demand for malt barley, but production is
low, and the quality does not match that of imports. Farmers often don’t use best practices when growing barley.
Over the past ten years, average barley yields have been 1.43 tons/hectare, which is low compared to its regional
neighbors and about four times lower than the yields in developed nations such as France and Germany.
There is a need for reviewing Barley production, productivity and marketing for better understanding
of the status of production and productivity of barley, the market share among the actors in the marketing
exchange of barley and the value chain situation .This review will help for generating the topic for improvement
on the production and marketing situation of the barley in general as national or local level. Based on this, the
following general and specific objectives are set outs for review of barley production and marketing in Ethiopia
as major title.

1.2. Objective of the review

1.2.1. General objective:
The general objective of this review is to understand the production and marketing of Barley in Ethiopia
1.2.2. Specific objectives:
To review the production and productivity of Barley in Ethiopia.
To review the importance and consumption of Barley in Ethiopia
To review marketing actors and margin distribution of barley in Ethiopia
To review the constraints of Barley marketing and value chain in Ethiopia

2. Review of Literatures and discussions

2.1. definitions of the terms
2.1.1. Agriculture: - is the science of cultivating the soil, harvesting crops, and raising livestock and also as
the science or art of the production of plants and animals useful to man and in varying degrees the
preparation of such products for man's use and their disposal. Agriculture: The utilization of biological
processes on farms to produce food and other products useful and necessary to man. Both a “way of
life” and a “means of life” for the people involved in this industry.
2.1.2. Agricultural productivity:-is a measure of the efficiency with which inputs are used in agriculture to
produce an output (EEA 2002 ;). Productivity is said to be optimal when the combination of inputs
produces a maximum output. Its measurement is an important tool for planning and development
decisions and shows the characteristics of current performance, future trends and relevance of the
system. Increased production is important if it is a result of improved productivity (EEA 2002).
2.1.3. Crop Production: -is a branch of agriculture that deals with growing crops for use as food and fiber. It
is the growing of staple food crops, fruits, nuts and other food crops and commercial crops.Crop
production deals with the production of various crops, which includes food crops, fodder crops, fiber
crops, sugar, oil seeds, etc. It includes agronomy, soil science, entomology, pathology, microbiology,
etc. The aim is to have better food production and how to control the diseases.
2.1.4. Area Harvested: - refers to the land used for agricultural operation reported as many times as it was
planted and harvested to the same crop or different crops during the reference period.
2.1.5. Crop yield: A measurement of the amount of a crop that was harvested per unit of land area which is
often used for a cereal, grain or legume and is normally measured in metric tons per hectare (or
kilograms per hectare).Crop yield: represents the harvested production per unit of harvested area for
crop products. In most of the cases yield data are not recorded but obtained by dividing the data stored
under production element by those recorded under element: area harvested. Data are recorded in
hectogram (100 grams) per hectare (HG/HA).
2.1.6. Market:-can be defined as an area in which one or more sellers of given products/services and their
close substitutes exchange with and compete for the patronage of a group of buyers. It is the set of the
actual and potential buyers of a product (Kotler and Armstong, 2003) and conceptually, a market can be

92
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

visualized as a process in which ownership of goods is transferred from sellers to buyers who may be
final consumers or intermediaries.
2.1.7. Marketing: - Marketing is the adaptation of the commercial activities and use of institutions by the
organizations with a purpose to induce behavioral change on a short-term or permanent basis.
2.1.8. Marketing channels: -is a set of practices or activities necessary to transfer the ownership of goods
from the point of production to the point of consumption. It is the way products and services get to the
end-user, the consumer; and are also known as a distribution channel. Formally, a marketing channel
is a business structure of interdependent organizations that reach from the point of product or origin to
the consumer with the purpose of moving products to their final consumption or destination (Kotler and
Armstrong, 2003).
2.1.9. Marketing margin: It is a commonly used measure of the performance of a marketing system and is
defined as the difference between the price the consumer pays and the price that is obtained by
producers, or as the price of a collection of marketing services, which is the outcome of the demand for
and supply of such services (William and Robinson, 1990).

2.2. Barley production and productivity in Ethiopia

Ethiopia is ranked twenty-first in the world in barley production with a share of 1.2 percent of the world’s total
production (USAD, 2014). According to USAD reports on assessments of commodity and trade, Barley
cultivation is widely distributed across the country on over one million hectares of land and by more than four
million small holder farmers. Currently, it is grown exclusively for the domestic market and is neither imported
nor exported. Barley is a high-opportunity crop, with great room for profitable expansion, particularly when
connected with the country’s commercial brewing and value-added industries. It is the fifth most important
cereal crop in Ethiopia after teff, wheat, corn, and sorghum.
According to Shahidur et.al (2015), Ethiopia is the second largest producer of barley in Africa next to
Morocco, accounting for about 26 percent of the total barley production in the continent. According to these
authors, about 4.5 million smallholder farmers grew barley on more than 1 million meher hectares of land. The
total production has been increasing steadily over the past decade it has increased from 1.1 million metric tons in
2003/4 to 1.9 million tons in 2013/14, which is equivalent to an annualized growth rate of 6 percent per year.
Table 1 Estimate of Area, Production and Yield of Crops from 2010/2011 to2014/2015 Meher Season or from
2003E.C to 2007 E.C in Ethiopia
Year Area in hectare Change Production in Change Productivity Change
(GR ) quintal (GR) in qt/hec (GR)
2010/2011 1,046,555 -0.09 17,033,465.36 -0.07 16.28 0.03
2011/2012 948,107.43 0.075 15,852,869.21 0.124 16.72 0.05
2012/2013 1,018,752.94 0.00 17,816,522.08 0.071 17.49 0.07
2013/2014 1,019,477.94 -0.025 19,082,624.11 0.024 18.72 0.05
2014/2015 993,918.89 0.00 19,533,847.83 0.00 19.65 0.00
Source: Own computation from CSA from year 2010/2011 to 2014/2015, Meher
NB; “negative sign“= show decrease in area, production or productivity; GR=growth rate

93
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

Table 2: Area harvested, production and productivity of Barley in Ethiopia from 2000 to 2014 annual production
according to FAOSTAT official data
Area Production in Yield Growthin Growth in Growth in in
Year harvested tons (ton/hectare) area production productivity
2000 880,360 803,904 0.91 0.07 0.27 0.19
2001 938,010 1,016,940 1.08 -0.12 0.16 0.33
2002 821,383 1,183,541 1.44 0.31 -0.08 -0.30
2003 1,075,437 1,087,373 1.01 0.17 0.26 0.08
2004 1,254,786 1,375,522 1.10 -0.04 0.02 0.06
2005 1,208,631 1,398,395 1.16 -0.17 0.01 0.22
2006 1,409,688 1.41 0.02 -0.10 -0.12
997,868
2007 1,019,314 1,270,680 1.25 -0.03 0.06 0.10
2008 984,942 1,352,148 1.37 0.15 0.29 0.13
2009 1,129,112 1,750,444 1.55 -0.07 -0.03 0.05
2010 1,046,555 1,703,347 1.63 -0.09 -0.07 0.03
2011 948,107 1,585,287 1.67 0.07 0.12 0.05
2012 1,018,753 1,781,652 1.75 0.00 0.07 0.07
2013 1,019,478 1,908,262 1.87 -0.03 0.02 0.05
2014 993,940 1,953,385 1.97 0.26 0.00 0.00
max 1,254,786 1,953,385 1.97 0.31 0.29 0.33
min 821,383 803,904 0.91 -0.17 -0.10 -0.30
mean 1,024,285 1,431,639 1.41 0.04 0.07 0.06
Source: Own computation from FAOSTAT official data
According to CSA of Ethiopia shown above in table1 the output from area harvested Of Barley is
increasing from 2010/2011 to 2014/2015 due to efficient utilization of the inputs like fertilizers and applying
appropriate agronomic practice and modern technology to the crop. The productivity and production in each
consecutive years is increasing, even though the area harvested shows some fluctuation .There is high growth
rate in area harvested and production in quintal in 2012 and 2013 while it decreases in 2014 in area harvested but
due to high in productivity the volume of production in quintal highly increasing during the production year as it
is shown in table 1table above
According to Food and Agricultural Organization Statistical Agency reports, there are high area of
harvesting, production and productivity as it was measured in hectare, tons and tons per hectare in 2004, 2014
and 2014 annual production respectively as it was shown in the table 2above. According to the report or the data,
barley production and the respective productivity of the year become an increasing order generally from year to
year, even though there was some fluctuation in area harvested which is measured in hectare. These data is
nearly the same in line with Central Statistical Agency (CSA) of area harvested crop production in meher season.
The maximum and minimum area of coverage occurred in 2004 and 2002 production year respectively while the
maximum and minimum year of production and productivity were 2014 and 2002 annual production according
to the data shown above in table 3.all the data recorded either CSA or FAOSTAT shows that, barley production
in Ethiopia is the most common and highly productive which shows in turn it is highly consumed by the
consumers of the country.
The maximum growth rate in area of harvesting, production and productivity of Barley in Ethiopia
were occurred between 2002 &2003, between 2008 &2009 and 2001&2002 years of production respectively
while the least or minimum of area harvested, production and productivity were recorded in the years between
2005&2006, 2006 &2007 and 2002 & 2003 respectively as it was reported by Food and Agricultural
organization Statistical data from 2000 up to 20014 years of barley production.

2.3. Consumption of barley and barley products

Barley is a staple food grain, especially for Ethiopian highlanders. It matures early which is bridging the critical
food shortage that occurs before the harvest time of other crops around September. Barley also serves as a
substitute for wheat when wheat prices are high. For millennia, barley has been supplying the basic necessities of
life (food, feed, local beverages and roof thatch) for people in the high lands. Many Ethiopian households have

94
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

roasting equipment to convert the grain into roasted barley, a popular snack food in Ethiopia. Because of its wide
range of uses, barley is considered the “king of grains “in much of the country.
Ethiopia’s per capita food barley consumption is by far the largest compared to other African countries
According to the FAO’s food balance sheets, Ethiopia’s annual per capita consumption of food barley in 2011
was 14 kilograms, which is more than three times the average for Eastern African 13 , four times that of Africa,
and fourteen times the world average of consumption ,However, food barley and barley products’ contribution to
the Ethiopian diets is small compared to other staple foods. In fact, it is the least important staple in both quantity
and share of calories in total consumption (Berhane et al., 2011). Only 20 percent of households in Ethiopia
consume barley and barley products, and its share in the total value of consumption is estimated at 9 percent.

2.4. Importance of Barley Crop in Ethiopia as Household Diets

According to (Ejigu, 2012), Barley (Hordeumvulgare L.) which is one of the most important cereal crops in the
world next to maize, wheat, rice among ten top world plants and one of the main cereal crops produced in the
Ethiopia, is an important food crop in the high land parts of Ethiopia. It is an important cereal crop grown by
subsistence farmers on small-scale farms (EJIGU, 2012).
According to Kemelew and Alemayehu, reports that, Among the major cereals, barley ranks fifth in
area, productivity and total production in Ethiopia as a whole it matures early and an emergency crop bridging
the critical food shortage occurs in September (Kemelew & Alemayehu, 2011).Barley accounts for over 60% of
the food of the people in the high lands of Ethiopia. It is used in diverse recipes that have deep roots in culture
and tradition. Some recipes such as Besso (fine flour of well-roasted barley grain moistened with water, butter or
oil), and Chiko (besso soaked with butter alone), which have long shelf life, can only be prepared from barley
grain. Other recipes, such as Genfo (thick porridge), Kolo (de-hulled and roasted barley grain served as snack),
and Kinche (thick porridge) are most popular when made from barley grain, but can be prepared from other
cereals also. Barley is the preferred grain, after tef, for making the traditional bread called Injera, which can be
used either solely or in combination with tef flour or other cereal flours. Other recipes, such as Dabbo (bread),
Kitta (thin, unleavened, dry bread) and Atmit (soup) can be prepared with only barley or blended with other
cereal flours. Among local beverages Tella and Borde are prominent, and best made from barley grain (Grando,
2005).
The major determination of barley profitability is yield. To maximize yield, it is important to ensure
that the crop has every chance to succeed several a biotic and biotic factors that have contributed to this low
productivity. Some of the constraints are poor crop management practices, new introduced barley varieties are
susceptible to mildew, barley yellow dwarf virus, net blotch and scald diseases and the limited availability of the
very few improved cultivars released, weeds, insects and the inherently low yield potential of the prevalent local
varieties (Bayehe & Stefania, 2011)
According to (Haile Michael and Peter, 2011), there are different reasons for farmers to produce
barley .Some of the reasons that makes Barley important the farmers are:Suitable for high altitude, performs
better than other crops, Can be produced both in belg and meherseasons, Tolerant to weather and agronomic
stresses like frost, water logging, weeds, diseases, and insects, Suitable for many kinds of dishes (including
injera)with a better taste, Good source of energy and consuming barley foods gives body strength, Medicinal
purposes for gastritis, headache and can heal broken bones and fractures, The best choice for local beverages,
Relatively high yielding with low management, Produces high quantity and quality straw for feed, which is
preferred by animals, Quality straws for roofing (thatching) houses and bedding, Grain, flour and food products
store better than other crops and Good cash crop as it is highly demanded for local beverages prepared in towns
for sale.

2.5. Marketing chains and the marketing Margins of barley in Ethiopia

2.5.1. Marketing chain of Barley:
Marketing chains vary depending on the infrastructure and other market fundamentals at the location of
production. According to CSA, 2014 and Shahidur et.al.2015 According to the study conducted on Value chain
of barley inEthiopia, the case of Gonder and arsi zone and secondary CSA, 2014 data shows, farmers in Arsi
produce both food and malt barley and market through cooperatives and traders, farmers in Gondar exclusively
market their malt barley through cooperative (CSA, 2014) where a large number of actors are involved atthe
beginning of the marketing chain, that is, in providing input supplies. In both Arsi and Gondar, there are several
government agencies (national research system, seed enterprises), cooperatives, holding companies, NGOs, and
private seed companies that are involved in seed marketing. Therefore, it is very surprising that modern input use
is so low. An obvious implication is that perhaps there is very little coordination among these actors to promote
input supplies to the barley growers. Thus, enhancing coordination among actors and streamlining their
mandates, if necessary, can contribute towards improving modern input supplies and ultimately enhancing barley
productivity. Second, in the Arsi marketing chain both traders and cooperatives appear and compete in marketing

95
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

both food and malt barley. This is a bit counter-intuitive given our earlier results that cooperative’s share in total
marketed volume is small (0.4percent). Thus, if one relies on the national statistics, a cooperative’s share in Arsi
would be very small, even though in reality they do engage in trade.
Finally, north Gondar is unique in that cooperatives market all of the malt barley .The case of
cooperatives’ existence in this context is clear: there are fundamental weaknesses in the infrastructure and
product aggregation. As a result, primary cooperatives along with their unions account for more than 90percentof
the malt barley market. Though the market share of cooperatives is relatively smaller in Arsi Zone, home of the
oldest malt factory, cooperatives are reportedly preferred marketing channels by malt processors because of the
volume and quality they process. Farmers also appreciate cooperatives in terms of their effect on price and
service adjustments in the marketplace. However, as private infrastructure improves and the private sector
evolves, the costs of marketing will go down, and the private sector will be able to aggregate, ensure quality, and
market directly to the breweries. Therefore, cooperatives will have to improve their efficiency to compete and
remain as legitimate market actors.
2.5.2. Marketing Margin Analysis of Barley, the case of Arsi and Gonder
One of the main challenges in conducting any agricultural commodity value chain is the estimation of
appropriate marketing margins. According to the study on Barley value chain in Ethiopia by Shahidur Rashid,.et
al, published in 2015, estimates were attempted in two zones (i.e., Arsi and North Gondar) using rapid rural
appraisal. For performance analysis of the actors, in these two zones, detailed information like farm budget, sales,
and other transaction costs through a set of focus group interviews in selected villages in the respective zones
and triangulation were made from other market actors including assemblers, wholesalers, cooperatives, and
processors. Subsequently, the results were aggregated at four levels: farmers, assemblers (primary coops.),
wholesalers (coop unions), and processing/malt factories.
Table 3: distributions of margin to actors of Malt barley along the value chain in Ethiopia
a) For Arsi zone ,Ethiopia :
Functions Main actors Price Share Production Cost to Net
received of cost price margin
ETB final (Birr/qt) ratio
(Birr/qt) price
Production Farmers 870 54% 566 65.0% 35.0%
Trade(Assembling ) Traders (assemblers) 1000 62% 918 91.8% 8.2%
Wholesaling wholesalers 1035 64% 1020 98.5% 1.5%
Processing Malt factory 1609 100% 1315.83 81.8% 18.2%
b) For North Gonder ,Ethiopia
Functions Major actors Price Share Production Cost to Net
received of cost price margin
ETB final (Birr/qt) ratio
(Birr/qt) price
production Farmers 1000 65% 637 63.7% 36.3%
Trade(assembling) Primary cooperatives 1032 67% 1012 98.1% 1.9%
Trade unions 1153 75% 1124 97.5% 2.5%
(wholesaling)
processing Malt factory 1540 100% 1289 83.7% 16.3%
Source: Barley value chain in Ethiopia published in 2015, the case of Arsi and Gonder zone result
Tables 6:a and b :illustrate the findings for Arsi and north Gondar, respectively. The results are striking
and go against the conventional wisdom that agricultural commodity value chains in developing countries are
non-competitive, and that farmers are often exploited. The estimates of the Authors in the study areas, suggest
that in both Arsi and Gondar, farmers retain the highest share of the final price. In Arsi, farmers net margin is
estimated to be 35percent, which compares with less than 10percent for assemblers and wholesalers combined,
and a little over 18percent in case of malt factories. In north Gondar, the estimated margin for farmers is over
36percent, more than a full percentage point higher than that of Arsi. Also, the margin of the malt factories is
lower at about 16percent. An interesting feature here is that cooperatives’ margins (primary cooperatives and
unions) are far lower than the margins estimated for the assemblers (primary cooperative) and whole sellers
(cooperative union) in Arsi. A primary cooperative in north Gondar earns only 1.9percent, which compares to
over 8percentin Arsi. By contrast, while a whole seller in Arsi makes only 1.5percent, a cooperative union in
north Gondar makes 2.5percent. This variation is contrary to available studies on input marketing through
cooperatives, where margins are pre-set by the government. Therefore, it is surprising that different margins are
observed in different locations in case of barley.
2.5.3. Barley Value Chain Actors (main actors)
According to kaleb.et al. (2014) study on Innovation platforms for improving productivity in mixed farming

96
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

systems in Ethiopia: Institutions and modalities, the major Barley value chain actor was identified as shown
below; these are:
Farmers- According to the study on Barley value chain, farmers were classified in to malt barley and food
barley producing farmers. Malt barley producers are those that have entered agreement with malt factories and
premium prices are granted. This type of arrangement encourages farmers to engage in malt barley production.
Such arrangement also provides good opportunities for factories to substitute imported malt barley and reduce
their transaction costs
Collectors- according to these authors` Food barley collectors are the same traders that come to the village to
collect many other types of grains. These traders are not specialized for barley only. As a result malt food barley
collectors usually collect the grain at times of harvest and also during slack season from village markets.
Collectors are agents for traders at woreda, and other traders coming from major towns.
Traders:- according to the study, the traders were classified in to two: Traders at woreda town and traders from
major towns. Traders at woreda town are one of the actors in the malt barley and have direct link with collectors.
They buy all produces from collectors. Together with collectors they determine the price of produce at a given
season. Traders from major towns are traders those who have direct link with both collectors and traders at
woreda town. These traders are powerful in the value chain, who determines the ultimate price of produce.
Processors – According to the study, the processors are the malt factories where the factory has established a
scheme to buy malt barley from surrounding farmers. The factory pay premium price for malt barley producers
to encourage them produces quality grain.
Consumers- According to the study by (Kaleb, et.al2014), the consumers are one of the actors involved in
barley value chain particularly food barley and they are the rural residents. The consumption of food barley in
towns is low compared to rural areas.
2.5.4. Barley value chain supporters
The chain supporters (Support giving actors) to barley value chain are enormous like Wheat value chain.
According to the study by kaleb, et.al., (2014) the support actors that are currently providing support to the value
chain are agriculture office of the woreda through supply of technical support through extension system; seed
enterprises both the federal and regional enterprises that are providing seed to the farming communities through
cooperatives, woreda administration, store service providers, transporters, universities and private chemical
traders. According to (Shahidur Rashid, et.al.2015), on barley value chain in Ethiopia, the major actors in the
value chain are the farmers, traders, cooperatives and consumers in different regions of the country where barley
is highly productive.
2.5.5. Performance of Barley value chain actors in Ethiopia
According to the report the REAP: which is Analytical Support For the Agricultural Transformation Agency
(ATA) on Barley value chain in Ethiopia in 2014, as reported by (Shahidur Rashid, et.al.2015), there are wide
variationsacross the regions when determining which farmers sell their barley. However, at the national level,
traders are the single largest actor in barley marketing, handling over 70percent of the marketed surplus. Next in
line are consumers and farmers, accounting for 17.1 and 10.4percent, respectively. Most of the sales to farmers
consisted of seed, and the consumers are the deficit households in the community as shown in the table below.

2.6. Constraints of barley marketing and value chain in Ethiopia

2.6.1. Storage
According to the study on Barley value chain analysis in Ethiopia in 2015, Storage plays a central role in
improving the value chain of an agricultural commodity. Proper storage with appropriate institutions such as
Warehouse Receipts System can alleviate farmers’ liquidity constraints, reduce price volatility, and improve the
well-being of both consumers and producers.
In Ethiopia, commodity storage is primitive and similar to most other developing countries, except in the case of
cash crops, mainly coffee and exportable pulses.

97
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

Table 4: Ownership of storage facilities and reasons for storag

Storage facilities Tigray Amhara Oromia SNNPR National
Access of Recent harvest in storage 90 84 89 84 86
(yes,%)
Methods of storage
Unprotected pile 0 0 0 26 6
Heaped in house 6 15 3 5 7
Bags in house 77 28 78 60 58
Metallic in house 0 0 0 0 0
Other in house 17 57 19 9 29
Primary reason for storage
Household consumption 99 86 82 64 81
Secondary reason for storage
Sell at higher price 0 10 14 27 14
Seed for planting 99 86 82 64 81
Source: Shahidur, et, al, 2015 (authors’ computation) based on CSA’s 2013 Post Harvest Survey.
According to CSA, 2013 Post Harvest Survey data, shows, the storage of farm households. At the
regional level shows, an overwhelming majority of barley growers store their barley; the primary reason for
storage is for future consumption, which implies limited commercialization. For example, consider the case of
Oromia, where 89percent of the farmers store their barley immediately after harvest. However, 93percentof the
households reported that the primary reason for storage was for consumption and the secondary reason was seed
(82percent). Only 14percentof the farmers reported having stored their barley to sell at a later time for a higher
price. At the national level, 92percentof the farmers reported that the primary reason for storage was for
consumption; and the main secondary reason was for seed (81percent) and future sale (14percent), respectively
Second, responses to the methods of storage indicate that farmers use very primitive storage facilities.
At the national level, no farmers used metallic storage facilities for their cereals; 58percent of the farmers store
their barley in bagson the floor, with the proportion ranging from 78percentin Oromya to 28percentin Amhara;
and 29percentuse other means of storage within their home. Finally, unless the storage constraints are alleviated,
commercialization will not take root and the country will continue to be dependent on barley imports. However,
this does not mean that each farmer requires storage facility of their own to address the liquidity constraints and
to reduce market volatility. There can be an alternative institutional mechanism—such as community storage—
that can address the farm level constraints.
Generally, according to the study on barley value chain in Ethiopia, studied by Shahidur et.al 2015,
suggest that storage is a pervasive and systemic problem at all levels of the value chain. In most of the kebeles
and woredas, the largest storage facilities are owned by the cooperatives; and neither retailers nor wholesaler
reported to have large storage facilities. Moreover, many traders reported that grain storage is discouraged by the
government. Storage is a serious constraint in Ethiopia’s grain markets in general and malt barley in particular.
This constraint is unlikely to be alleviated through market forces, implying that deliberate policy action may be
needed. Instead private investment in storage should be encouraged and bolstered by appropriate and transparent
rules and regulations.
According to the study by Kaleb Kelemu, et.al, (2014), the following are major constraints identified
as factors that affect Barley Value Chain. These includes: Shortage of supply of disease resistant and high yield
varieties ,Weed and pest occurrence ,Low soil fertility and low soil pH,Poor soil drainage ,Frost and
drought ,Diseases, such as scald, net blotch, spot blotch and rusts, Rising costs of transport ,Market price
fluctuation and others.
According to this author, most farmers are not able to access pesticide and fungicide in the nearby
market. Problems of adulteration and selling after expiration dates were often mentioned. At present
cooperatives are providing fertilizers but often at unaffordable prices

3. Conclusion and Recommendations

3.1. Conclusion
Based on the review on Barley production and marketing in Ethiopia, the following points concluded as major
pints;
Generally, barley is major staple grain which accounts for over 60% of the food of the people in the
highlands of Ethiopia and cultivated by small holders in every region of the country. Even though it is able to
grow at all elevations, but it performs best at the higher elevations in the northern and central regions of the
country. Based on CSA and FAOSTAT official data of recent, the production and productivity of Barley shows
nearly increasing pattern, but constrained by low rainfall and depilation of soil fertility which are the major
causes of yield losses. In addition to these, Crop damage during planting, harvesting, and post-harvest handling

98
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

is another major abiotic factor that causes significant barley yield losses in Ethiopia.
Generally, in the marketing activities, farmers gate the highest net margin (share) as compared to
traders and processors due to the smaller cost they incur followed by Processors and traders. The major actors in
the barley value chain are the input suppliers, farmers, rural assemblers, cooperative unions, grain wholesalers,
processed food wholesalers, grain retailers, and retailers of processed food. The support actors that are currently
providing support to the value chain are agriculture office of the woreda through supply of technical support
through extension system; seed enterprises both the federal and regional enterprises that are providing seed to the
farming communities through cooperatives, woreda administration, store service providers, transporters,
universities and private chemical traders.
The major constraints of Barley marketing involve poor storage and handling, poor value chain
development, and low upgrading strategies to the commodity. Moreover, the major constraints identified as
factors that affect Barley Value Chain are: Shortage of supply of disease resistant and high yield varieties, Weed
and pest occurrence, Low soil fertility and low soil pH, Poor soil drainage, Frost and drought, Diseases, such as
scald, net blotch, spot blotch and rusts, Rising costs of transport, Market price fluctuation and channel choice
problems by producers.

3.2. Recommendation
For barley production and marketing the following policy measures will be recommended. The production
and productivity of barley is constrained by different factors as listed in the conclusion parts, therefore,
research on barley production that affects yields should be done by researcher’s and the possible solutions
should be put down accordingly.
Markets are highly constrained by low storage and low post harvest management of the commodity, there
for the post-harvest management sectors should do more on this. Farmers are selling to the local traders in
bulk, but if they select other channel they can get more benefit from the production the produce: the
researchers should focus on determinants of market outlet choice of producers, the case of barley producers
in Ethiopia.
Proximity to the market place promotes farmers to enhance barley productivity via making easy access to
essential inputs for barley production; that in turns improve productivity. Therefore, transportation roads and
inputs distribution networks need to be reorganized to improve barley productivity.
To assure mutual benefits of cooperatives and producers, cooperatives need to improve the quality and
coverage of buyers’ preference information delivery to producers.. Accordingly, cooperative need to be
capacitated via business management training and encouraged through long-term credit to compete with the
dominant groups like wholesalers.
Environmental factors such as droughts or excessive rains may adversely affect harvests and lead to
insufficient raw malt barley to meet required production volumes for breweries and malt factories. Storage
problems also the main problems for low quality malt barley and reduction in price for the producer. To
mitigate these it needs Government investments irrigation systems under the Growth and Transformation
Plan (GTPII), the Post-harvest management practices and other mitigation activities to alleviate these
problems.

References
Akar, t., avci, m., dusunceli, f. (2004). Barley: post-harvest operations.
Area, production and yield of crops for private peasant holdings for meher season 2013/14 (2006 e.c)
Bayehemulatu and stefaniagrando (2011). Barley research and development in ethiopia. International center for
agriculture research in the dry areas.
CSA (central statistical agency). 2005. Agricultural sample survey: area and production of major crops,Meher
season. Vol. I. Addis ababa, Ethiopia
CSA (central statistical agency). 2014. Agricultural sample survey: area and production of major crops,Meher
season. Vol. I. Addis ababa, ethiopia.
Ejigu tefera,2012.developing knowledge based system for cereal crop diagnosis and treatment: the case of
kulumsa agriculture research center
Ethiopian economic association / Ethiopian economy policy research institute (eea/eepri). 2002/03. Annual
report on the Ethiopian economy. Addis ababa, ethiopia.
FAO (food and agriculture organization). 2014. Food balance sheets. Faostat.
Rome.(http://faostat3.fao.org/download/fb/fbs/e)
Grando, s. (2005).Food uses of barley. International center for agricultural research in the dry areas (icarda),
aleppo, syria.
Grando, s. And g.m. Helena, 2005. Food barley: importance, uses and local knowledge. Proceedings of the
international workshop on food barley improvement, january 14-17, 2002, hammamet, tunisia, pp: 14-

99
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.7, No.9, 2016

17.
Hailemichaelshewayrga and peter a sopade, 2011),ethnobotany, diverse food uses, claimed health benefits and
implications on conservation of barley landraces in north eastern ethiopia highlands.
Http://www.fao.org/inpho/content/compend/text/ch31/ch31.htm. Accessed on 15 august 2007
Kemelewmuhe and alemayehuassefa (2011).Diversity and agronomic potential of barley (hordeumvulgare
l.)Landraces in variable production system, ethiopia:world journal of agricultural sciences 7 (5): 599-
603, 2011 issn 1817-3047. Idosi publications.
Kotler, p.And g. Armstrong, 2003.Principle of marketing, 10th edition. Hall of indiapvt.Ltd. New delhi. Pp 5-12.
Lakew, b., 2003.Exploiting the diversity of barley landraces in ethiopia. Ethiopian agricultural research
organization (earo), holetta agricultural research center, addisababa, ethiopia.
Ministry of finance and economic development (mofed). 2005. Survey of the ethiopian economy ii, review of
developments (1998/99-2003/04). Addis ababa, ethiopia.
Mulukenbantayehu, 2013: study on malting barley genotypes under diverse agroecologies of north western
ethiopia:adet agricultural research center, p. O. Box 08, bahirdar, ethiopia.
Munck, l., 1992.The case of high-lysine barley breeding. In: barley: genetics, biochemistry, molecular biology
and biotechnology, shewry, p.r. (ed.). Cab international, wallingford, uk, isbn-13: 9780851987255, pp:
573-602.
Rashid, 2010, prepared for the comesa policy seminar on “variation in staple food prices: causes, consequence,
and policy options”, maputo, mozambique, 25 ‐ 26 january 2010under the african agricultural
marketing project (aamp
Shahidur rashid,Gashaw Abate,solomon lemma,James Warner,leulsegged kasa and Nicholas minot,2015:barley
value chain in Ethiopia : research for ethiopia’s agriculture policy (reap): analytical support for
theagricultural transformation agency (ata)
William, g.and l. Robinson, 1990.agricultural product prices. Cornell university press, 3rd edition, ithaca and
london.

100