Successes, lessons and challenges from grain legume sourcing, processing and marketing: Experiences from Guts Agro Industry
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Poster prepared by Engidu Legesse and Mulugeta Enki (Guts Agro Industry PLC, Addis Ababa, Ethiopia) for the ILRI-N2Africa Annual Partners Review and Planning Workshop, ILRI, Addis Ababa, 16-17 March 2017
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Successes, lessons and challenges from grain legume sourcing, processing and marketing: Experiences from Guts Agro Industry
- 1. N2Africa - Putting nitrogen fixation to work for smallholder farmers in Africa Successes, Lessons and Challenges from Grain Legume Sourcing, Processing and Marketing: Experiences from Guts Agro Industry Engidu Legesse and Mulugeta Enki. Guts Agro Industry PLC, Addis Ababa, Ethiopia. Introduction ILRI-N2Africa Box 5689 Addis Ababa, Ethiopia ● +251 11617 2200/25/33/35 ilri.org ● n2africa.org ● n2africa-Ethiopia.wikispaces.com N2Africa project is funded by BMGF Key achievements Sourcing: mainly from FCU & some from privates Production/Process: legumes blended with cereals, legumes based and fortified . Target Market: • Mainly Low income consumers in semi urban & rural areas • Government & private institutes, consumer Cooperatives & wholesale market Distribution Channel: Wholesale market & Likkie micro franchise distribution model Public-Private Partnerships: • Product development • Technical expertise • Market linkage • Sourcing & quality maintenance • Established in 2005 • Purpose: manufacturing high quality nutritional food products • Raw material sourcing: more than 5000 MT grains & • Production: over 4500MT processed foods, • Partnership & collaboration: HU ATA 2SCALE N2Africa USAID • Output financing should be given due attention at all level • Due attention for consumer awareness & behavior, structuring distribution, & financing • Multi-actor partnership need to be beyond the usual partnership objectives that includes the last mile distribution, affordability, food consumption behavior to address food & nutrition security. Lessons Learned • Major challenges in grain legumes sourcing, • The current out put financing is outdated that is not matching the agribusiness’ need • Unreliable production forecast & thereby affecting pricing or shortage creation • Challenges for processed product marketing/business, etc.? • Consumer behavior to feed on processed food • Purchasing power of mass consumer is limited • Challenge in coordination • Access to reliable price information Challenges • Untapped agricultural resources • Gap in malnutrition • Population size Opportunities • More intervention, input quality, access to finance & skill. • Coordination amongst FCU, processors, distributors • To ensure sustainable grain legume market, research & extension backed production should be strengthened in such a way that increased productivity at farm will take care of the existing high price of pulses. • Coordination amongst Multi-actor partnerships (PPPs) to work across the value chain. • Out grower scheme for accessing quality raw material • Inclusive marketing strategy that involves consumers as suppliers producers and distributors Way Forward This document is licensed for use under the Creative Commons Attribution 4.0 International Licence. May 2017