The production of oilseeds in Ethiopia: value chain analysis and the benefit that accrue to the primary producers

Abstract

Oilseed is the third most important export item in Ethiopian foreign trade. It has registered a high export growth rate over recent years both in terms of volume and value. Besides its growing share in export, it is widely used for the extraction of edible oil and oilcake that is supplied to the domestic market. Although farmers are the primary producers of oilseeds, they are not able to benefit from the growing market share of the product due to the fact that they find themselves at the end of an extended market chain. As a result they only receive a very small proportion of what the final buyers are paying for the oilseed products. In addition, there is not much experience on the part of the farmers to process oilseeds, change it to edible oil and oilcake and retain the value addition in the local economy. This thesis used the value chain approach to investigate the possibilities for the primary producers to increase their income share from the selling of their products either by directly selling to exporters or by processing oilseeds, producing edible oil and oilcake, and retaining the value addition in the local economy.