Pineapple Report Final

Partnerships Resource Centre/SDC-Maastricht School of Management
Project # 594
May 2011
Multi-Stakeholder Platform Contribution

to Value Chain Development
The Pineapple Value Chain in Ethiopia
Sarah Drost, Maastricht School of Management

Jeroen van Wijk , Maastricht School of Management
Final Case Study Report
Table of Contents
Abstract .......................................................................................................................................... 3
Acknowledgments ........................................................................................................................ 4
Abbreviations ................................................................................................................................ 5
1. Introduction .............................................................................................................................. 6
1.1 Research objective and aims............................................................................................ 6
1.2 Theoretical background ................................................................................................... 7
1.3 Methodology .................................................................................................................... 10
1.4 Outline of this report ...................................................................................................... 12
2. Context of the case study ..................................................................................................... 13
2.1 The Pineapple subsector ................................................................................................ 13
2.2 The Pineapple Coordination Group ............................................................................ 18
3. Pineapple Coordination Group Dynamics ....................................................................... 20
3.1 Basic Collaboration Requirements .............................................................................. 20
3.1.1 Level of engagement ............................................................................................... 20
3.1.2 Jointness ..................................................................................................................... 23
3.1.3 Transparency ............................................................................................................ 29
3.1.4 Goal alignment ......................................................................................................... 31
3.2 Embeddedness .................................................................................................................. 32
3.3 Involvement ...................................................................................................................... 34
4. Institutional change .............................................................................................................. 40
4.1 Access to knowledge ....................................................................................................... 40
4.2 Access to capital ............................................................................................................... 42
4.3 Access to markets ............................................................................................................ 44
4.4 Access to organisation .................................................................................................... 47
5. The future of the pineapple CG .......................................................................................... 48
6. Conclusions ............................................................................................................................. 50
7. Limitations .............................................................................................................................. 53
8. References ................................................................................................................................ 54
9. Appendices............................................................................................................................... 57
Appendix 1: Theoretical model ........................................................................................... 57
Appendix 2: Roles of various stakeholders ....................................................................... 58
Appendix 3: Interview schedule/ List of Interviewees.................................................. 59
Appendix 4: Questionnaire................................................................................................... 61
Appendix 5: Course ratio pineapple CG............................................................................ 68
Appendix 6: Betweenness centrality pineapple CG ........................................................ 69
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Abstract
This report investigates the dynamics of a multi-stakeholder platform (named:
coordination group, or CG) for stakeholders of the pineapple value chains in Ethiopia.
The CG was initiated by the Dutch development organisation SNV in 2005 as part of
a broader programme to improve market access for farmers and small- and mediumsized pineapple companies. To examine the MSP, both its internal, organisational
dynamics and its external dynamics, i.e. the changes brought about in key areas of the
institutional business environment, were analysed. A mixed-method design was used
for the data collection and -analysis, including in-depth interviews with 13 key
representative pineapple stakeholders participating in the CG meetings, document
analysis, and a social network analysis. The dominant impression is that the CG
generated some very useful effects in terms of bridging some traditional divides and
offering opportunities for networking and knowledge dissemination. Yet, it seems the
CG predominantly laid out the groundwork, with the edifice of a competitive,
quality-aware pineapple export sector still to be built. Major causes of the somewhat
slow progress have been the broad scope of the CG that has been addressing three
different pineapple chains, the overrepresentation of the public sector that tended to
slow down change processes, the CGs national focus that keeps foreign buyers
hidden from side, and the development of the CG into a competitor network to a
small group of monopolist chain actors. On the other hand, changing business
institutions that facilitate trust-building in the production base, that improve farmers
access to capital and technology, and that make markets more predictable for chain
actors is quite a challenge. Inserting an agricultural sector into the global economy
takes time.
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Acknowledgments
The authors acknowledge first of all the invaluable support by Fenta Abate of the
Addis Ababa University in Ethiopia during the interview phase in Ethiopia. Also the
contribution of Jakomijn van Wijk of the Sustainable Development Centre of
Maastricht School of Management and Ralph Besselink of Tien Vazen Consultancy
was indispensable in the questionnaire preparation and database analysis. The
researchers have benefited greatly from the discussions with Marc Steen and Piet
Visser of SNV BOAM Ethiopia during the research design process. The field
research in Ethiopia was also efficiently facilitated by SNV BOAM staff and value
chain advisors. Finally, we thank all interviewees, who kindly provided us with their
insights and who made this case study possible.
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Abbreviations
AACCSA
B2B
BCaD
BDS
BOAM
BoARD
BoFED
CG
DSA
ECOPIA
ETFRUIT
FBO
GAP
JARC
MFI
MoA
MoTI
MoU
MSEDA
MSM
MSP
NGO
PLC
PrC
QSAE
R&D
RTA
SARI
SDC
SIP
SME
SNNPRS
SNV
TC
VC
VCD
VCF
Addis Ababa Chamber of Commerce Sectoral Association

Business to Business
Consulting Management Business Creation and Development Services
Business Development Services
Business Organisations and their Access to Markets (programme)
Bureau of Agriculture and Rural Development
Bureau of Finance and Economic Development
Coordination Group
Daily Subsistence Allowance
Ecological Products of Ethiopia
Ethiopian Fruit and Vegetable Marketing Share Company
Farmer Based Organisation
Good Agricultural Practice
Jimma Agricultural Research Centre
Micro Finance Institute
Ministry of Agriculture
Ministry of Trade and Industry
Memorandum of Understanding
Micro and Small Enterprise Development Agency
Maastricht School of Management
Multi-Stakeholder Platform
Non-Governmental Organisation
Private Limited Company
Partnerships Resource Centre
Quality Standard Authority of Ethiopia
Research & Development
Round Table Africa
Southern Agricultural Research Institute
Sustainable Development Center
Strategic Intervention Plan
Small and Medium Enterprises
Southern Nations, Nationalities, and People's Region State
Netherlands Development Organisation
Tissue Culture
Value Chain
Value Chain Development
Value Chain Financing
Exchange Rate
Exchange rate of January 24, 2011:
1 Euro(s) = 22.59 Ethiopian Birr (ETB)
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1. Introduction
Multi-stakeholder platforms1 (MSPs) are increasingly recognized by researchers and
practitioners as promising mechanisms for stimulating economies in developing
countries. The so-called chain platforms can help to bring actors, operating directly
or indirectly in the chain, together and realise common objectives through dialogue
and cooperation (Vermeulen et al., 2008). An increasing number of non-governmental
organisations (NGOs) and private enterprises are participating in such platforms,
however systematic research on their effectiveness and impact is scarce. Therefore,
Maastricht School of Management (MSM) / Partnerships Resource Centre (PrC) and
SNV BOAM-Ethiopia have embarked on a collaborative effort to evaluate a number
of MSPs which SNV BOAM initiated with the aim of developing value chains for the
Ethiopian honey and beeswax, dairy, oil seeds and pineapple sector. SNV2 is a nonprofit, international development organisation, with extensive hands-on experience
in their value chain approach. MSMs Sustainable Development Center3 stands for
expertise on sustainable economic development in emerging markets. MSM is
partner in the Partnerships Resource Centre4, an open centre where academics,
practitioners and students can create, retrieve and share knowledge on cross sector
partnerships for sustainable development.
1.1 Research objective and aims
This pineapple case study assesses the effects of the multi-stakeholder platform that
was established by SNV BOAM to improve access to (quality) markets for
stakeholders in the pineapple value chain in Ethiopia. The core of SNV BOAMs
approach is to bring primary and secondary value chain actors and other stakeholders
together to find solutions for identified bottlenecks in the value chain. These actors
join forces in the so-called Coordinating Groups (CGs), which have a multistakeholder nature5.
The overall objective of the study is to gain insight and generate knowledge
on how, and under which conditions multi-stakeholder platforms contribute to the
development of value chains, with a focus on SNV BOAMs programme (agriculture,
horticulture) value chains in Ethiopia. Critical success factors and main bottlenecks of
MSPs for value chain development in Ethiopia are to be identified. In terms of
contribution the synthesis report of the overall study has three aims. First, the study
should contribute to the learning process of MSP members and other local Ethiopian
stakeholders through verification of results and knowledge dissemination. Second,
the synthesis report should end with recommendations on how SNV BOAM can
improve its multi-stakeholder processes to increase their contribution to value chain
development. Finally, the study should contribute to the academic debate on how
value chain partnerships can facilitate sustainable competitiveness in developing
countries. This pineapple case study provides input for all three aims, however,
reports only on the first aim.
Comprising of dialogues, policy making, and implementation, the term multi-stakeholder is often attached
to, platforms, processes, and partnerships (Warner, 2006). In this research we refer to multi-stakeholder
platforms when discussing MSPs.
2 SNV BOAM Ethiopia: www.SNV BOAMworld.org/en/countries/ethiopia/Pages/default.aspx
3 MSM - SDC: www.msm.nl/1/1/uk/research/sustainable_development_center/
4 PrC: www.erim.eur.nl/ERIM/Research/Centres/SCOPE/Partnerships_Resource_Centre/About
5 Website SNV BOAM & Annual Report 2008
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1.2 Theoretical background

Multi-stakeholder initiatives are generally
characterised as horizontally organised, with a greater
degree of flexibility and openness as traditional forms of
governance. In policy-related documents, MSPs are often
considered as highly promising alternative forms of
governance. They are based on the recognition of the
importance of achieving equity and accountability,
involving equitable representation of stakeholder views,
and are based on democratic principles of transparency and
participation aiming to develop partnerships and
strengthened networks among stakeholders (Hemmati,
2002:2).
Institutional theory, social network theory and collaboration literature has been
explored to gain insight and generate knowledge on how, and under which
conditions partnerships (including MSPs) can contribute to changing institutional
business environments to facilitate the inclusion of small and medium agribusiness
players into value chains. The effects of the MSPs are examined in terms of their a)
internal dynamics (basic collaboration, embeddedness and involvement) including a
social network analysis, and b) external dynamics (the changes in key areas of the
institutional business environment). The theoretical model is visualized in appendix 1.
(a) Internal dynamics
From the collaboration literature, the level of engagement of partners, formalized
goal alignment, shared (decision making) processes and activities, and transparency
are among the main basic requirements for successful collaboration (Kolk et al.
2008). A high level of engagement of stakeholders, proper goal alignment,
formalisation, risk- and resource-sharing, trust and transparency, shared learning,
and joint decision making are critical factors for successful multi-stakeholder
platforms, particularly when these deal with more ambitious and complex issues
(Ansell & Gash 2008; Springer-Heinze 2007, Bitzer et al. 2010, Kolk et al. 2008).
Collaboration presents the highest strategic level of engagement and implies
that the partners share risks, resources and rewards (Austin 2007). This also entails a
formalisation of governance structures, including contractual arrangements to
specify objectives, activities and responsibilities. Moreover, the relationship between
actors refers to the range of actors actually participating in the partnership. The
value of partnerships lies in the potential to create win-win situations if all
stakeholders are willing and able to contribute to the achievement of goals (Bitzer et
al. 2010a). Trust, risk- and resource-sharing and transparency are indispensable in
here, as well as notions on power distributions in the value chain MSPs.
In a four-year study of the collaborative activities of as small NGO in
Palestine, Lawrence et al. (2002) found that inter-organisational collaboration leads
to the development of new institutions (new practices, technologies and rules).
Collaborations that are both highly embedded and have highly involved partners, are
the most likely to generate proto-institutions. New rules, technologies and
practices arise and are diffused beyond the boundaries of the specific MSP contexts,
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and adopted by other organisations in the field: they become proto-institutions.

These proto-institutions represent important first steps in the process of institution
creation, thus potentially forming the basis for broader, field-level change (Lawrence
et al. 2002: 283). They may become new institutions if they diffuse sufficiently.
Embeddedness describes the degree to which a collaboration is enmeshed in interorganisational relationships (Dacin et al. 1999; Granovetter 1985). Highly embedded
collaborations involve (1) interactions with third parties, (2) representation
arrangements, and (3) multidirectional information flows (Lawrence et al. 2002). In
order to examine whether the pineapple CG has brought about changes in
institutional fields we investigate not only the relations among collaborating MSP
members, but also how the collaboration embeds them in the wider institutional field.
Involvement focuses on the way in which participating organisations relate to
each other. According to Lawrence et al. (2002), high levels of involvement entail
deep interactions among participants, partnership arrangements, and bilateral
information flows. A high level of involvement among participants is necessary for
institution creation. The internal dimension of partnerships is also explored in terms
of the intensity of actor involvement. If the involvement of an actor is vital for the
functioning of the partnership, from design to monitoring, we speak of a high degree
of involvement. A medium degree of involvement occurs when an actor only
participates during the implementation stages and fulfils particular tasks. If an actor
only participates sporadically or not at all, we can speak of no involvement (Bitzer et
al. 2010b).
The internal dynamics are verified and complemented with a social network
analysis. The network approach allows researchers to capture the interactions of
any individual unit within the larger field of activity to which the unit belongs
(Kilduff & Tsai, 2003: 13). A social network analysis describes network
characteristics and concepts such as embeddedness, social capital, and network
centrality. Moreover, a social network analysis has the ability to address important
aspects of the social structure of a network: the sources and distribution of power
(Hanneman & Riddle 2005). In the MSP research, the network analysis enabled the
researchers to gain insight on:
The main (core) organisations, stakeholder groups and sectors participating
and brokering in the MSPs (betweenness centrality);
The proportion and types of organisations in the three societal sectors: public
and private sector and civil society;
Visitor patterns (core visitor, regular visitor, irregular visitor, at random
visitor);
The proportion of visitors that left the MSP series early (exits);
The centrality analysis helps us to understand the overall social structure of the MSP
networks. Those organizations having the highest scores on betweenness centralities
(the highest number of ties) in the network are the most central players in the MSP
networks (Kilduff & Tsai, 2003). Moreover, more connections often mean that
individuals are exposed to more diverse information. The more connected actors in
the network are, the higher the likelihood that they are able to mobilize their
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resources and to bring diverse and multiple perspectives to solve problems. The
number and kinds of ties actors have determine the range of opportunities, influence
and power they have (Hanneman & Riddle 2005). Actors who have more ties have
greater opportunities because they have choices. This autonomy makes them less
dependent on any specific other actor, and hence more powerful (Hanneman &
Riddle 2005: 61).
Apart from a measure to identify the most central actors, betweenness
centrality is a measure for the degree that actors connect two other actors that do not
have a direct link themselves. In our study it refers to the following illustrative
situation: actor A is present at CG meeting 1 and actor B at meeting 2. If attending
both meetings, actor C connects A with B. The hypothesis is that C is able to
facilitate a flow of information from A to B and vice versa. If actors cannot reach each
other, or cannot be reached by another actor, learning, support or influence between
the two is restrained (Hanneman & Riddle 2005). Therefore, the higher the number
of network players that have a high betweenness centrality, the more horizontal the
network. Information can be diffused through multiple paths, through network
brokers that are in between other network players. The more network brokers there
are, the more likely that actors have alternative ways of connection to other actors
and can by-pass a given (dominant) actor (Hanneman & Riddle 2005). With smaller
numbers of players with a high centrality, the network becomes more hierarchical as
fewer players control intermediary information diffusion.
Finally, it is possible that those players perceive themselves as different from
others in the population as they see themselves as the movers-and-shakers, and the
dealmakers that made things happen (Hanneman & Riddle 2005: 68).
(b) External dynamics
The external dynamics refer to the perceived changes in institutional business
environment that facilitate inclusion of small and medium sized agri-business players
into the pineapple value chains. The fragmented nature of Africas agricultural sector
is one of the limiting factors to its development. The majority of farmers and SMEs
face huge barriers to link themselves to national and global markets, while access to
these markets is considered critical to growth in developing countries (OECD, 2006;
World Bank, 2008). The most important institutional challenges to inclusion in
commercial value chains concern those formal rules, inter-organisational
arrangements, and informal customs that prevent farmers and SMEs from having
access to knowledge & technology, credit, markets, and professional organisations
(Bitzer et al. 2010b; Van Wijk and Kwakkenbos 2011).
Lack of access to capital or credit is a major constraint for many smallholders
and SMEs (Altenburg, 2007; Kaplinsky and Morris, 2001). Broader access to financial
services would expand their opportunities for technology adoption and resource
allocation (World Bank, 2008). The lack of access to knowledge often hampers agrifood enterprises to adopt new practices that build trust and confidence of buyers in
the quality and safety assurance mechanisms for their produce (Henson and Jaffee
2006; Garcia Martinez and Poole 2004). Farmers are exposed to highly volatile
markets, which hinder investments in the agricultural sector. A more stable market
for suppliers through buyer commitment and price stability would motivate farmers
and SMEs to invest in production capacity and quality improvement (Gibbon and
Ponte, 2005). Finally, chain actors, particularly farmers need to be organized to
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develop capacity in terms of supplying volumes and quality, and guaranteeing

regular supply. Access to organisations facilitate risk sharing, the pooling of
resources, enable collective learning, and developing market power (KIT et al., 2006).
1.3 Methodology
Several methods were used for the data collection process: analysis of existing
documents (field documents), in-depth interviews and group discussions with SNV
BOAM in Ethiopia. Both qualitative and quantitative data were gathered. All
primary data were collected in Ethiopia from August to November 2010, both in the
Oromia and Southern Nations, Nationalities, and People's Regional (SNNPR) States.
Research was executed in collaboration with a team of local consultants that was
especially responsible for the interviews in the oil seeds value chain CG.
A sample of 13 CG stakeholders was drawn for the interviews in the
following manner. We selected candidates from participant lists of five Coordination
Meetings (begin, end and middle) who played specific roles in the pineapple value
chains, such as chain actors, chain supporters, chain influencers, and chain facilitators6.
Some critical and reluctant stakeholders were explicitly included. Eventually,
interviews were held with all relevant value chain stakeholders (Table 1). The
researchers also made field visits to private pineapple farms in Didiche and a nursery
site (capacity: 43,000 pineapple seedlings) in Genbela (both in SNNPRS). For a
complete overview of the interviewees and interview schedule, see appendix 3. For
confidentiality reasons, they are made anonymous in the report.
Table 1. Interviewees by stakeholder group
Stakeholder Group
Interviewees Percentage (%)
5
38
Chain actors
Chain supporters
Chain influencers
3
4
23
31
Chain facilitators
Total
13
100
Type
Cooperative, input supplier, private
processor, wholesaler, private exporter
Bank, research centre, BDS provider
Investment Agency, Ministry,
Enterprises Development Agency,
Cooperative Promotion Bureau
NGO
For a complete overview of stakeholder roles in the value chain, see appendix 2.
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Picture: pineapple farm in Didiche and pineapple nursery in Genbela (both in SNNPRS)
A database was constructed that scores the participation of each organisation

(84 in total) in each Coordination Group meeting (11 assessed in total), the type and
subtype of the organisation and its role in the value chain7. Finally, the Coordination
Group meeting was attended to a) have an idea of the working of the CG in practice,
and b) to introduce the researchers to the relevant stakeholders in order to promote
interview response. The questionnaire can be found in appendix 4.
On the basis of the database, a social network analysis was executed with the
program UCINET 6.303 which is a comprehensive program for the analysis of social
networks and other proximity data. The program contains dozens of network
analytic routines (e.g. centrality measures, dyadic cohesion measures, positional
analysis algorithms, clique finders, etc.). A social network analysis allows for linking
micro and macro levels, and an integration between qualitative, quantitative and
graphical data. In this research, the social network analysis is mainly used to verify
the qualitative data. In the report, qualitative descriptions are presented, and -if
applicable- followed by a quantitative check resulting from the network analysis.
Not all interview questions were propounded to all 13 interviewees. Since we
were interested in the social mechanisms at work rather than in statistical realities,
only those having expertise or being knowledgeable on a certain subject were
questioned on that subject. For example, a financial institute might be less
knowledgeable on the (technical) varieties that exist in the value chain product, or a
research institute that has no expertise on the contractual agreements that exist
between suppliers and buyers. In other cases, the respondent had only attended one
CG meeting and therefore lacked knowledge of CG internal processes over time.
7
The classification of organisations in type (private sector, public sector, civil society and education), subtype
(e.g. processing company, producer, consultant, research institute etc.) and value chain role (chain actor,
supporter, influencer and facilitator) has to be regarded as an analytical tool. In reality, there is not such strict
distinction, as for example many producer cooperatives (now classified as a business representative body in the
private sector) are also involved in civil society activities. However, their main aim is to represent an economic
active producer group and most of the time, the cooperatives engage in chain actor activities (e.g. collecting
pineapples or processing tasks). This is the reason to classify them under the private sector. Another example
is a university (classified under Education) who acts as a BDS provider as well.
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Moreover, time pressure indicated by the respondent was taken into account during
the interviews that lasted on average 1.5 hours. Although effort was made to propose
as many questions as possible to all stakeholder groups, conclusions are often based
on the views of less than the 13 respondents.
The secondary data included content analysis of the BOAM programme, with
relevant documentation including all Coordination Group meeting minutes and
impact data on production, income and employment areas provided by SNV BOAM
Ethiopia. Furthermore, the secondary data include descriptions of national and
international pineapple value chain markets, the horticulture sub-sector in Ethiopia,
and relevant aspects of collaboration literature and institutional change theory.
All interviews were summarized and data were analysed with the qualitative
analysis software program MAXQDA. Network analysis has been executed for the
two-mode database containing organisations which have attended the pineapple CG
meetings in Ethiopia.
Finally, all outcomes are cross checked, compared to and extended with
information provided by several key informants to ensure triangulation (e.g. SNV
BOAM staff, experts, chain Lead Advisors).
1.4 Outline of this report
The report is structured as follows: chapter 2 clarifies the context of this study by
providing a short background on the pineapple market and horticulture sector, its
main constraints and SNV BOAMs strategy of establishing the Pineapple
Coordination Group. In chapter 3, the internal dynamics of the Pineapple
Coordination Group are presented. Chapter 4 analyses the perceived changes in the
institutional business environment of the pineapple value chain, as a result of the
MSP (external dynamics). Chapter 5 hints at the future outlook of the MSP and the
value chain, while chapter 6 and 7 respectively conclude with a discussion of results
and limitations of the study.
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2. Context of the case study

2.1 The Pineapple subsector
This section describes a) the international pineapple market, b) the Ethiopian
pineapple market, c) the Ethiopian pineapple value chain map, d) the main constraints
in the pineapple subsector according to the interviewees and e) SNV BOAMs
strategy to tackle these problems.
(a) International pineapple market
There is a considerable demand for processed pineapple products in European and
Middle-East Markets. Canned fruits and juice account for 80 percent of the total
processed pineapple products sold at the international market (FAO, 2003).
Nevertheless, the market for fresh pineapples is one of the fastest growing fruit and
vegetable markets in Europe and the Unites States. Except for Portugal, all
pineapples consumed in the European market are imported from non-European
origins. From 2000 to 2008, net imports into the EU grew at an average annual
growth rate of 12 percent; from 317 478 tonnes in 2000 to 873 936 tonnes in 2008
(Pay, 2009, FAO). Ethiopia is not yet part of this list of main non-European suppliers.
Pineapples, once a favourite fruit for processing, have been increasingly
marketed for fresh consumption with the emergence of the extra sweet MD2 variety
in the mid 1990s (Pay, 2009, FAO: 8). European retailers increasingly prefer MD2
type pineapples over other varieties, including the Smooth Cayenne and Sugarloaf
pineapples (Pay, 2009, FAO; First Consult, 2006). The MD2 variety -strongly
demanded from retailers- accounted for about 85 percent of the countrys pineapple
exports to the European market in 2009 and the once dominant Smooth Cayenne
variety is widely overtaken. According to the research of FAOs Ellen Pay (2009),
West-African producers are increasingly switching to the MD2 variety too, allowing
them to play their part on the European pineapple market. Ironically, now that the
MD2 variety is so common, a good Smooth Cayenne has a better chance than before
of finding a buyer (CTA, 2009). Moreover, the market for fair-trade and certified
tropical fruits, including pineapples and mangoes, offers interesting prospects for
suppliers from developing countries as quality and originality hold the key to good
profits (Pay, 2009, FAO; CTA, 2009).
Furthermore, the growing market for processed pineapple products (i.e. dried,
sliced and canned) in the Middle-East (i.e. Saudi Arabia, Dubai) and Djibouti markets
is promising8 (First Consult, 2006). SNV BOAM therefore believes there will be high
international demand for pineapple products in the medium-term.
CG3 meeting minutes.
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Picture: processed (sliced) pineapples in small shop in Chucko (SNNPRS, Ethiopia)
(b) Ethiopian pineapple market

Substantial pineapple fruit cultivation is mainly practiced in the southern regions of
Ethiopia (Sidama and Gojeb). Small farmers are accustomed to work with pineapples
as a cash crop in a mixed farming system for decades. The use of fertilizer is nearly
absent and the pineapples produced are organic, a comparative advantage of
Ethiopian pineapple production. Yearly, 2700 MT pineapples are produced in the
Tesso area, which is marketed for 98% as fresh (mainly Red Spanish variety)
pineapple9.
Generally, the consumption pattern of the Ethiopian population encourages
the production of the pineapple Smooth Cayenne variety for processing purposes
(MD2 is less suitable for processing) and is mainly appreciated as fresh fruits variety
in the regional markets (close to Ethiopia) and in the Arabic peninsular markets (pers.
comm. SNV BOAM, April 2011). According to SNV BOAM promoting the MD2
variety is hitherto a bridge to far, bearing in mind the European market conditions.
MD2 is in the country, however, not yet released (pers. comm. SNV BOAM, April
2011).
National consumption figures for pineapple are slightly rising as a result of
general national growth in public spending and tourist/expat preferences (Yonad,
2011). The average annual imported processed pineapple consumption is 250 tonnes
with a consumption growth of 695% from 2005 to 2008 (Yonad, 2011)10. Of the total
consumption or processed fruits, average annual imported processed pineapple
consumption is three percent (Yonad, 2011).
Major challenges in the pineapple value chains are the high transaction risks of
pineapple growing (costs, volumes, information) resulting in limited added value and
oligopolistic behaviour in the principal wholesale market. This includes the costs for
producers and potential investors in the industry to install required basic
infrastructures (Yonad, 2011). Second, the existing area of pineapple cultivation in
Ethiopia is by far not enough to produce sufficient numbers for processing exports11.
Although the marketability and margins of low quality fruits can be improved,
maximum impact will only be achieved with the introduction of diversified market
arrangements with better quality fruit production in terms of improved varieties12.
9
SNV BOAM Annual Report 2009.

11 SNV BOAM Annual Report 2005.
12 SNV BOAM Annual Report 2009.
10
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(c) Pineapple value chain map

Figure 1 shows the Ethiopian pineapple value chain, with indicated intervention
areas, as visualized by SNV BOAM. SNV BOAMs interventions mainly address the
exporters, processors and farmer organisations with the aim of improving linkages
between mid-chain buyers and producers. The program strategically intervenes in
three types of pineapple value chains: the new variety (Smooth Cayenne) export
chain, the processed pineapple product chain, and the domestic fresh pineapple
product chain13.
Figure 1. Pineapple value chain map with indicated intervention areas
Large
Consumers,
Hotels
AREA III
Local
Planting
Material
Importation of
Planting
Material
Collecting
Wholesaler
land
preparation and
Transplanting
Watering
AREA
Weeding,
Plant
II
Transport
to factory
Harvesting
and field
Transport
Washing,
Slicing.
Drying
Cleaning
grading
and packing
Ecocertificate
AREA II
Production
of
Planting
Domestic
Sales
Retail sales
Packing and
Ecodocumentation
Transport to
Airport
Export
Processing
Export
Processing
Transport to
Destination
Import
Europe
Transport
to Middle
East and
Europe
Sales of
Planting
Material
AREA I
Area I: Supply of pineapple planting material
Area II: Support to eco-certification
Area III: Introduction of out-grower or contract-farming arrangements
(d) Constraints in the pineapple sector

Stakeholders in the pineapple value chain perceive a multitude of constraints to
pineapple subsector development. According to the interviewees (Table 2), minimal
infrastructure (disconnecting rural pineapple production areas from the main roads),
long procedures to access bank loans, and land investment issues obstruct investment
in the pineapple sector. Concerning the latter, the SNNPRS Investment Agency
allocated land for pineapple farming, however, in the first call for investors none of
the eleven applicants eventually invested in the lands. Four out of eight candidates to
the second call are currently preparing production on the lands (interview 5). The
problem is situated at the private investors site, according to the Investment
Agency, as they lack commitment and financial capacity14. Furthermore, private
investors are hesitant due to bad access roads and insecure markets (interviews 5 and
12). Those who ultimately succeeded in securing land for pineapple production were
discouraged by insufficient supply of seedlings and absence of water15.
13

15 CG11 meeting minutes.
14
15 | P a g e
Other general issues are related to the weak institutional capacity in the
subsector, the non-existing relationships between the few actors that exist (interview
11), and the fact that the pineapple sector is limited to the Southern regions of
Ethiopia (interview 11 and 13).
Regarding issues related to production, the main problems are the low quality
(non-marketable to foreign markets) of the traditional pineapple variety (Red
Spanish) and the insufficient supply of the higher quality variety (Smooth Cayenne
and MD2). What is more, prices fluctuate constantly as a result of the seasonality of
the fruits. Finally, post-harvest losses are considerable (10-15 percent).
Regarding issues related to processing, wholesale and export, the main
problem is the dominance of three to five Piazza16 wholesalers and (illegal) regional
traders that distort the fresh fruit pineapple market. They dominate the single lowquality fresh fruit pineapple market, refuse to pay tax, are not legally registered, and
directly purchase pineapples for cheap prices from cash constraint farmers in the
rural areas. The sad thing is that they destroy the quality of the pineapple market, as
they encourage farmers to sell their even non-ripe pineapples- directly for cash
(interview 9). Moreover, they bypass cooperatives that represent farmers interests.
They have no interest in changing the present situation as it is beneficial to them.
According to SNV BOAM the monopolists (Piazza wholesalers and traders) block
the pineapple market (interview 11). Both a private pineapple investor as well as a
tomato selling cooperative were kicked out of the market by Piazza wholesalers as
the latter ensured no single buyer bought their products (pers. comm. SNV BOAM,
February 2011). Several Piazza wholesalers even physically fought with Etfuit (a
non-Piazza wholesaler) staff to avoid that Etfruit would source fruits (in this case
mangos) from a farmer cooperation and other farmers (pers. comm. SNV BOAM,
February 2011).
As such, the benefits and potential of the pineapple market does not reach the
farmers (interview 1). New investors are worried on the existing monopoly (interview
4). Other problems mentioned by investors and processing- and exporting companies
are the irregular supply and high farm gate prices17 due to seasonality, insufficient
quality, and a general storage/distribution problem.
Table 2. Main constraints in the pineapple sector in Ethiopia and number of times
indicated by the interviewees (frequency)
Constraints in pineapple sector
Frequency
Investment related issues
Low infrastructure (land access road)
Land investment problems
Access bank loans limited (long procedures)
Weak institutional structure/capacity (sector, cooperatives)
Limited private investors (commitment, insecure markets)
Limited to SNNPRS region
16
17
Piazza is the main market in Addis Ababa, and in Ethiopia in general.

Farm gate price = price of the product at which it is sold by the farm.
16 | P a g e
3
3
2
2
2
2
Production related issues

Low quality variety (Red Spanish)
Problematic input supply of quality variety (Smooth Cayenne)
Seasonality product price fluctuation
Post-harvest loss (10-15 %)
5
5
1
1
Processing/exporting related issues

3-5 wholesalers and illegal traders distort (quality) markets (monopoly)
Insufficient quantity and quality supply (peak season)
Too high farm price to compete
Storage/transportation problem
6
3
1
1
(e) SNV strategy in the BOAM framework

To tackle these problems in the pineapple sector, SNV developed the Support to
Business Organisations and their Access to Markets (BOAM) programme 18. Under
this programme, a Value Chain Development (VCD) approach was developed. It is
characterized by (i) a combined sector and business to business (B2B) orientation
(IOB Inception Report, 2009: 27), (ii) a focus on pull factors; working from the
middle of the value chain at both up-stream and down-stream levels (pers. comm.
SNV BOAM, February 2011), (iii) a firm direction towards the private sector
(private businesses) as the entry point, (iv) the use of multi stakeholder processes in
the form of Coordination Groups as the platform for decision making and anchoring
of the local ownership, (v) the use of local consultants or capacity builders to increase
outreach, sustainability and ownership and (vi) the use of leverage and innovation
funds (IOB Inception Report, 2009: 27). Therefore, the MSP approach is only one
part of the whole holistic SNV BOAM value chain approach.
The BOAM programme is based on the idea that change can only be induced if
it builds on knowledge and experience already present in the concerning sectors.
Establishing the CG was only a logical step in the process of bringing together all
the relevant knowledge and experience of stakeholders in the concerning value
chains19. SNV BOAM sees the CG as the main organ for governance and
coordination of chain activities and stresses the importance of ownership through the
formation of stakeholders own network.
Apart from BOAM, SNV runs 2 other value chain programmes (PSNP plus &
RAIN) (SNV BOAM Annual Report 2009). Finally, the four case studies under study
are only part of the impact areas, (sub) sectors and programs of SNV Ethiopia.
18 SNV BOAMs programme, financed by the Embassy of the Kingdom of the Netherlands in Addis Ababa and
until the end of 2009 by the Irish Embassy, contributes to sustainable poverty reduction in rural Ethiopia
through value chain development. The overall BOAM programme period is five years, and started from
September 2005. The programme aims at improving the access to markets for small and medium agribusiness
players along selected value adding chains (SNV BOAM programme proposal 2005-2010). In 2009 a
transformation process of the BOAM programme into a centre of excellence for value chain development has
started in the form of BOAM2 scaling up phase. Some key chances are the emphasis on Business to Business
(B2B) value chain development and the up-scaling of both production as well as a new fund structure. The
additional target of the BOAM program up-scaling phase is to develop, test and introduce innovative
approaches that aim to improve business to business relations in selected value chains (SNV BOAM annual
report 2009). A one-year extension of the BOAM programme was requested and approved, until August 31,
2011, to maximize the results to be obtained from the BOAM programme (BOAM 2 programme proposal
2010-2011).
19 Clarification meeting SNV BOAM, 8 November 2010.
17 | P a g e
Picture: Pineapple CG meeting 14 in Awassa

(Ethiopia), November 9, 2010
2.2 The Pineapple Coordination Group

The existing and rising demand for
(quality) pineapple products in
respectively the international and
Ethiopian markets served as fertile
ground for SNV BOAM to establish a
multi-stakeholder platform (named:
Coordination Group) for the pineapple
value chain in 2005. The CG aims at
promoting efficient and equitable linkages
for the economically active poor along the
agricultural value chain. Establishing the
pineapple CG was one of SNV strategies
under its BOAM programme.
From the network analysis we found that
in total 80 different organisations
attended the pineapple CG meetings 1-13
from 2005-201020. The pineapple CG
consists of representatives of key actors in
the pineapple chain (regional, national and
sporadically international), including:
Characterization CG
The majority of the interviewees
characterize the pineapple CG as a
connecting and discussion forum
where multiple actors and societal
sectors meet and actively discuss
problems in the pineapple sector (e.g.
interviews 1, 2, 3, 7, 9, 10). Potential
solutions are addressed as well, i.e. on
where to find appropriate buyers
(interviews 5, 10). Especially the
smaller groups Business to Business
(B2B) sessions improved trust and
forced stakeholders to make decisions.
It is a neutral meeting place with
tough but open discussions, for
example on delicate matters as the
monopoly of pineapple traders and
wholesalers (interview 9). Moreover, it
is an exchange forum, where
knowledge on technology and
markets is shared (interviews 1, 7).
On the other hand the pineapple CG
saw little progress due to unmet
promises and slow implementation of
decisions (interviews 1, 6, 7, 9, 11), it
did not convince government
authorities to carry out their
responsibilities (i.e. road construction)
as key governmental- and financial
decision makers were absent in the
meetings (interviews 4, 5, 7).
Sometimes, discussions are loose and
off topic (interview 9). Moreover, the
CG as a platform is a toothless lion;
it has no authority to implement and
enforce deviations by members. In
chapter 3 they will be discussed in
detail.
Research institutes such as the

Jimma Agricultural Research
Institute (JARC), the Southern
Agricultural Research Institute
(SARI) and the Mekelle Institute of
20By
the end of 2010, already 14 meetings took place for the pineapple value chain CG. Nevertheless, the social
network analysis was based on 13 meetings due to the participation lists in the meeting minutes that were
made available to the researchers at start of the research project in June 2010.
18 | P a g e
Technology/Tissue Culture (TC) Laboratory;

Producer cooperatives and unions including Safa Pineapple Producer
Cooperative and Tesso Farmers Cooperative;
Private processing companies including the Ecological Products of Ethiopia
(ECOPIA) PLC and the Auxumite coffee and fruit export PLC;
Fruit wholesalers such as the Ethiopian Fruit and Vegetable Marketing Share
Company (ETFRUIT) and ELFORA Agro-Industries PLC;
Private investors including Dibabesh PLC and Haji Kemil Hassen Agricultural
PLC;
Government authorities, including the Ministry of Trade and Industry
(MOTI), the SNNPRS Investment Agency, the Micro and Small Enterprises
Development Agency (MSEDA), the Cooperative Promotion Bureau and the
Oromia Bureau of Finance and Economic Development (BoFED);
Financial institutes and banks, such as the Sidama Micro Finance Institute and
the Development Bank of Ethiopia.
Under its BOAM programme, a Value Chain Leader and a Value Chain Facilitator is
selected for each value chain CG. The Value Chain Leader is chosen by the CG and
acts as the focal person who should guarantee the local ownership of the CG and who
is representing the CG. Ideally for SNV BOAM, a Chain Leader represents a key
private sector organisation in the chain. In the pineapple CG, the managing director
of the Auxumite coffee and fruit export PLC was Chain Leader from meeting 1-3.
From meeting 8-14 the Vice Manager of Dibabesh PLC is Chain Leader. The Chain
Leader is supported by value chain development advisors or coaches, who add distinct
expertise to the program (agro-processing, organisational strengthening, women
entrepreneurship/gender and monitoring and evaluation). In addition, SNV BOAM
makes available a Value Chain Facilitator to facilitate and activate communication
amongst CG members and to disseminate information. The owner and the manager
of the organisation Consulting Management Business Creation and Development
Services (BCaD) served as Chain Facilitators in the pineapple value chain CG.
From September 2005 onward the pineapple CG meetings have started to take
place bi-annually, but from May 2007 every three months (four times a year). In
general, the meetings have the following pattern: the CG Facilitator and Leader open
the meeting with a recap of the previous meetings, participants introduce themselves,
fund utilization reports are discussed, experts present about new researches and
technologies related to the pineapple sector and Question and Answer Rounds are
held in between. The first CG meeting started in English, but currently Amharic is
the main language used in the meetings. The Facilitator translates if necessary.
Following the recommendations of the Mid Term Review (Aleme et al. 2008) an
Executive Committee for the evaluation of concept notes for the BOAM designated
funds was established. Next to this, SNV BOAM has assignment contracts indicating
capacity building interventions with all clients (i.e. processors, farmer organisations,
business associations, and government). Finally, a new funding structure was
introduced.
19 | P a g e
3. Pineapple Coordination Group Dynamics

This chapter is meant to present the main findings regarding the internal dynamics
that took place within the pineapple CG meetings 1-13 (2005-2010). The pineapple
CG is assessed on the basis of several collaboration variables, and the levels of
embeddedness and involvement.
3.1 Basic Collaboration Requirements
The extent to which the pineapple CG meets basic collaboration requirements is
examined by assessing so-called success factors. An overview of all these factors is
provided in Table 3.
Table 3. Basic collaboration requirements and their success factors
Basis collaboration
Success factors
requirements
(a) Commitment
(b) Motivations
(c) Roles and contributions
(d) Shared resources
(a) Decision making
3.1.2 Jointness
(b) Leadership
(c) Selection stakeholders
(d) Agenda setting
(e) Distribution of benefits
(f) Risk sharing
(a) Accountability
3.1.3 Transparency
(b) Trust building
(a) Clear objectives
3.1.4 Goal alignment
(b) Win-win opportunities
(c) Compelling case
Source: Compilation based on Kolk et al. (2008), Van Tulder & Pfisterer (2008) and Bitzer et al. (2010).
3.1.1 Level of engagement
3.1.1 Level of engagement

Success factors identified in the research for the level of engagement are fourfold: (a)
a high level of commitment, (b) intrinsic motivation, (c) clarity of roles and
contributions, and (d) resource sharing.
(a) Commitment
For SNV BOAM, one of the drivers to start up the CG was to have the stakeholders
to run their own show and to anticipate on the absence of associations,
organisations and platforms in general (pers. comm. SNV BOAM, August 20, 2010).
From the beginning it was the idea to shift from external support to internal
organisation and as such creating commitment and ownership in the sector. But how
do our pineapple interviewees evaluate the level of commitment of their fellow
pineapple CG colleagues?
None of our thirteen interviewees visited all 13 pineapple CG meetings. Two
interviewees, SNV BOAM and the Chain Facilitator, were classified regulars
(participating 11 or 12 meetings), and the remaining eleven interviewees were
classified irregular members (present at least at three meetings with a maximum
presence of 10 meetings). There are no at random interviewees (participating 0, 1, or
2 meetings).
20 | P a g e
Table 4. Level of commitment evaluated

Commitment Frequency Percentage
(%)
Low
Modest
High
Total
1
8
2
11
10
72
18
100
Source: interview data
The general level of commitment is evaluated as modest (72 %) (Table 4). Only
one public sector representative was of the opinion that commitment is low, as he
witnessed few concrete achievements (interview 13). The majority, including SNV
BOAM, believes the level of commitment is modest as participants are very active
and committed at the meetings and in specific committees, however not or less
committed as soon as the meeting ends (e.g. interviews 1, 4, 9, 10). Agreed
assignments are not being prepared for the next meetings and implementation is
absent. The lack of follow-up is related to the failing commitment of the CG members
as well as the CGs absent formal accountability system (interview 9, see also section
3.1.3a). Another shortcoming is that some organisations do not regularly attend and
sent different representatives to the meetings (rotation) (interview 6). Finally,
wholesalers/traders of the Piazza market in Addis Ababa and pineapple investors are
believed to be less committed to the pineapple CG (interviews 5 and 11). SNV BOAM
tried to engage them in the pineapple CG however it could not keep them on board.
Commitment is related to benefits. The monopolists experience no benefits from the
CG and prefer the current pineapple sector situation (interview 11).
Following the Mid Term Review (Aleme et al. 2008), SNV BOAM has
considered its continuation in the pineapple value chain development (VCD) project
as there were -apparently- limited private investors21. The success of the VCD
depends to a large extent to the willingness of private enterprises to invest, and so far
little interest has been forthcoming. In fact, one of the investors (a processor) has
withdrawn its commitment. If there are no alternative plans, and development after
investment is expected to take 2-3 years, it is questionable if one should go ahead if
investments are not made in the coming 3 months (Aleme et al. 2008: 16).
Nevertheless, in meeting seven SNV BOAM reaffirmed its commitment to the
development of the pineapple value chain22, but participants were less sure
afterwards. In meeting nine members raise the question whether SNV BOAM gives a
lesser degree of importance to the pineapple value chain compared to the other value
chains (oil seeds, honey, dairy). No, SNV BOAM replies, we give equal priority to
all value chains and the three types of funds are equally distributed among all four
value chains23. However, SNV-BOAM continued, participants need to apply for the
funds, and next to the dairy CG, the pineapple CG fund using is limited (see also
section 3.1.2e).
Despite of this, two of the respondents on this issue believe the commitment in
the pineapple CG is high. Even though the pineapple CG seems to have limited
21

22
21 | P a g e
effects so far there is great potential as the government and other investors are very
committed to the pineapple case(interview 12). Not everyone agrees (see section 3.3).
(b) Motivations
The motivations to join the pineapple CG are diverse although for most interviewees
linked to a) the need for technical and financial assistance of SNV BOAM (3x); b) the
need to meet with suppliers or investors (2x) and c) personal invitations by SNV
BOAM (2x). Other motivations were related to land issues as private investors
approached the Investment Agency for cultivatable land. In collaboration with SNV
BOAM, the Agency decided to dedicate 1100 ha of land solely for pineapple growing
purposes. SNV BOAM instructed potential investors on pineapple cultivation
practice (interviews 4 and 5). For the processing company, the pineapple CG provides
an opportunity to meet with all relevant stakeholders at once in one location.
Normally, information is dispersed, and the company had to visit each office
separately. Now all information is available at one place (interview 9). For the
Development Bank, the pineapple CGs agenda coincides with their development
agenda (interview 6). Finally, for SNV BOAM, development has to start from within
the sectors. The CG structure created consensus on what is needed to realise change
the pineapple sector (interview 11).
In short, motivations are never solely intrinsic. In reality, interviewees have to
see the link with and benefits for their own program and goals in order to be
motivated to join a multi-stakeholder platform. Moreover, there is need for technical
and financial assistance in the pineapple sector in Ethiopia. DSA was not mentioned
to be of considerable influence.
(c) Roles and contributions
Operational plans agreed in several CG meetings clarify the roles and contributions
of the main pineapple chain stakeholders present in the meetings. However, due to
the lack of accountability mechanisms, there are no mechanisms to enforce them upon
members (see section 3.1.3a). Besides, due to the high number of participating
organisations (84 organisations in total in the first eleven pineapple CG meetings)
and the high rotation of members and organisations, operational plans are not
representing all participating parties.
(d) Shared resources
We can conclude that resources are shared in the sense that each CG member has an
equal opportunity to have access to financial and technical support delivered through
the SNV BOAM funding programme24. However, the benefits to be obtained from
this support are not always equal (see next section).
In the network analyses on course ratio these findings on stakeholder engagement
were verified. To analyse the course ratio of the pineapple CG participation database
four categories of visiting frequency of organisations have been determined (core
visitor, regular visitor, irregular visitor, random visitor) as well as four categories of
24
In the beginning of the SNV BOAM programme (2005) the three types of funds accessible were the leverage
fund, the research and study fund, and the financial intermediation fund. In line with the recommendations of
the Mid-Term Review in 2008, the three new types of funds are the Sector Development Fund, the Pilot B2B
Fund, and the Up-scaling Support Fund.
22 | P a g e
entry and exit behaviour of the organisations (present & stay, present & exit, entry &
stay, and entry and exit). The descriptive statistics of both categories are calculated
for the pineapple CG participation database and displayed in Appendix 5. A legend is
attached. In Table 5, the visitor frequency in the pineapple CG is presented. In Table
6 the total of exits from the pineapple CG is demonstrated.
Table 5 Visitor frequency in the pineapple CG (%)
exits25
Sector
Core
Regular Irregular At
visitors visitors visitors
random
visitors
Pineapple 0,0
3,8
47,5
48,8
Table 6 Total of
Sector
Pineapple
%
58,8
The social network analysis confirms that:

There is irregular attendance of organisations in the pineapple CG
meetings (Table 5). The proportion of core visitors (present at all
meetings) and regular visitors (present at 11 or 12 meetings) is modest.
In the pineapple there are no core visitors (present at all 13 meetings);
There is high rotation of organisations in the pineapple CG meetings
(Table 6). The total number of exits (present & exit + entry & exit) is
58,8 percent.
In sum, the general level of engagement of pineapple CG members varied
considerably in- and outside the meetings. Commitment is high in the meetings but
completely different as soon as participants step out of the meeting floor.
Implementation of agreements is therefore severely endangered. SNV BOAM has
considered its continuation in the pineapple value chain as committed investors
seemed sparse and the public services of the dominant-commented public sector leave
much to be desired26. CG members themselves have to see the link with and benefits
for their own program and goals in order to be motivated to join a multi-stakeholder
platform.
3.1.2 Jointness
The success factors identified in this case study to measure the level of jointness in
the CG meetings are: (a) decision making, (b) leadership, (c) selection of stakeholders,
(d) agenda setting, (e) distribution of benefits, and (f) risk sharing.
(a) Decision making
The degree to which the decisions are jointly made in the pineapple CG was difficult
to measure, as formal decisions are rarely made in the pineapple CG (see also section
3.1.3a). Only a few moments of more formal decision making could be identified, and
they were related to electing the nominees for certain positions in established
committees or boards. Examples are the election of the CG Leaders in meetings 1
and 8, the Executive Committee members in meeting 9 and on the selection of several
research topics. No single interviewee indicated this process of election is unequal.
25
26
Total exits = present & exit + entry & exit (see also Appendix 5)
Annual Report 2009.
23 | P a g e
Still, an interviewee, who recently quit the CG, believed the CG is a toothless
lion, i.e. it has no authority to implement and enforce deviation by members
(interview 8). In his view, the donor agency SNV BOAM dominates the processes in
the CG; hence, other stakeholders have no real influence on the decisions in the CG
and its Executive Committee. Decisions are implemented only when SNV BOAM
agrees, regardless of the interests and views of other members (interview 8). The
interviewee stopped participating in the CG as a result of its disagreement with SNV
concerning SNV BOAM funding of the interviewees organisation.
We addressed the question whether all members have an equal say in the CG
or whether some members are more equal than others? Seven out of ten of the
respondents interviewed on this question believed members have an equal say
during the meetings with no influence of dominant members (Table 7). Everyone has
an equal chance to express his or her views, even though the level of education and
knowledge is different among CG members (interview 4). Since the meetings are in
Amharic also farmers have an equal say (interview 10).
However, two interviewees mentioned that in their view the plenary CG
meetings were to some extent dominated by some members. This had been part of
the the reason for SNV BOAM to split up the pineapple CG into smaller groups; the
so-called bilateral group sessions (see also section 4.3). According to MSEDA every
member has an equal chance to speak out; nevertheless
the chance depends on the capacity of each actor to
express him/her self (interview 7). The manager of the
Table 7. Equal say
processing company preferred the cooperatives to have a
Equal Frequency Percentage
stronger say in the meetings (interview 9).
say
(%)
SNV BOAM has made attempts to share some of
7
70
Yes
its own responsibilities in respect of the pineapple
3
30
No
products value chains to create more ownership of the
100
Total 10
CG process with stakeholders. Its main initiatives were

the establishment of the Executive Committee for the
evaluation of concept notes regarding BOAM designated
funds and the assignment of contracts between SNV
BOAM and its clients (including CG members) on capacity building interventions. In
the meetings, joint Strategic Intervention Plans27 (SIPs) and operational plans were
formulated. An important step forward was the SIP revision with a group of
pineapple CG members after the MTR in 2008. The upgrading of the low quality
Red Spanish pineapple value chain and less export driven approach brought CG
members closer to what is realistic and executable (pers. comm. SNV BOAM,
February 2011). According to what was recommended in the MTR the CG Executive
Committee should empower the sector in general and the CG in particular by giving
stakeholders a say in the allocation of its pineapple-industry related funding. One
interviewee indicated that members have an equal opportunity to speak out in the
discussions although it is usually the Executive Committee that decides.
27
The following Strategic Intervention Plans distinct per pineapple variety- were agreed with the pineapple
CG members in meeting nine: 1) Support quality improvement in agricultural practices and planting material
mainly in the Smooth Cayenne market channel; 2) Strengthening coops and their relationships mainly in the
Red Spanish market channel; and 3) Develop alternative markets segments /products for pineapple (mainly
Red Spanish but potentially also Smooth Cayenne market channels).
24 | P a g e
Financial ownership was created, to variable degree, as the following shows.

First, the Executive Committee, with five key actors from the pineapple sector, could
evaluate, approve or reject funding proposals, but it is the SNV BOAM program
manager who takes the final decision28. Second, the SIPs and operational plans were
adjusted in response to CG members, although adjustment was mainly possible on
the SIPs already prepared in a preliminary stakeholder workshop (held about three
months before the first CG meeting) with pineapple value chain representatives
identified by SNV BOAM. Nevertheless, in 2008, several members transformed the
SIPs into realistic targets. Third, infrastructure issues were not included in the SIPs
although they cause stringent problems for many stakeholders in the pineapple value
chain. Land for pineapple cultivation is not accessible without infrastructure and
investors are not willing to build the 30 to 40 kilometers of the road themselves29. In
the meetings the participants questioned why it was not included in the SIPs. The
reason is simply that SNV BOAM will not cover infrastructure costs. Fourth, the
pineapple Executive Committee was effective only for a very limited time period
(only 2 or 3 meetings). Fifth, SNV BOAM itself remains modest about the financial
ownership that was created in this way. Having the Executive committee decide on
fund proposals was only a cosmetic measure: a small shift of ownership (pers. comm.
SNV BOAM, August 2010).
In sum, although it was always SNV BOAM that decided on the final budget
spending, decisions made in the CG or by its Executive Committee were never
bypassed by SNV BOAM (pers. comm. SNV BOAM, January 2011).
(b) Leadership
From the interviews we could derive that leadership in the pineapple CG has been a
hot issue. The pineapple CG met without Chain Leader from meeting four after the
withdrawal of the first CG Leader30. SNV BOAM prefers a private processing
company as a Chain Leader because such a chain actor has strong interests in
linkages both upstream and downstream in the chain31. But in meeting six, SNV
BOAM staff is openly discussing and disagreeing on who should be the next CG
leader. One staff member proposed the Ethiopian Horticulture Producers Association
to take the responsibility in chain leading. However, the pineapple CGs first Lead
Advisor opposed the idea due to the mentioned associations weak involvement in
fruit production32. It was only in meeting eight that the private investor Dibabesh
PLC was chosen as the new Chain Leader. But he lacks full support from other
members and cannot serve the primus inter pares role of leading an entire industry
subsector towards modernization.
Furthermore, no strong sector association is expected to have emerged in the
fruit sector by August 2011 (phase out of SNV BOAM)33. Therefore SNV BOAM
explores other forms of sector steering, such as decentralization through the
development of local action groups that focus on specific local issues. Also, the
28

30 SNV BOAM believes this is related to his frustration with regard to the Piazza monopoly market (interview
11).
31 Discussion Group SNV BOAM, August 12, 2010.
32 CG6 meeting minutes. NB The Association was not attending in the meeting.
33 SNV BOAM 2 proposal.
29
25 | P a g e
strengthening of the southern regional Micro and Small Enterprise Development

Agency to steer value chain development in the fruit sector is explored. Interviewees
have a different opinion on who would be the most eligible candidate to steer the
pineapple value chain and CG. The regional Bureau of Agriculture and Rural
Development (BoARD) is preferred as a candidate by three interviewees, followed by
the Cooperative Promotion Bureau by two interviewees. Only SNV BOAM and
MSEDA itself prefer the MSEDA, due to its overlapping mandate. The remaining
interviewees are doubtful on any suitable candidate (see also Chapter 5).
(c) Selection stakeholders
According to SNV BOAM and the CG Facilitator, selection and invitation of
participants is generally decided by the CG Facilitator, the CG Leader, and the SNV
BOAM value chain Lead Advisor. The invitation database builds on the previous
meetings attendants, and when new organisations wish to be invited the trio decides
on approval taking into account the participants potential contribution to the
pineapple value chain. Also other members have the opportunity to suggest new
members to the pineapple CG (interview 11). One interviewee recommended that SNV
BOAM should invite top officials personally and address them by name and job title
(interview 5). One interviewee believes that the Facilitators do not care who
participates in the CG meetings; sending the invitation to a given address is an end
instead of a means to discover why some members fail to attend the meetings
(interview 8).
According to the pineapple CG Facilitators (interview 12), about one or two
weeks in advance of the next CG meeting, the CG Facilitator sends out a package per
email or fax (no regular post mail) to the participants that includes the invitation
letter, the agenda of the meeting, and a summary of about two pages on the previous
meeting (not the full meeting minutes as MSM received them). Interviewees confirm
this (e.g. interviews 1, 2 and 10) but some believe one week notice is too short
(interview 9) Organisations that lack email addresses to receive the meeting agenda in
advance miss the opportunity to anticipate and prepare on the meetings agenda.
However, some interviewees indicate they are also personally invited by telephone by
the Facilitators (interviews 1, 2, 9).
Changes in the SNV BOAM programme coordinating staff considerably
influenced the new CGs invitation policy. The first CG was developed from scratch
and it was SNV BOAM who gathered all relevant stakeholders together34, and the
first BOAM coordinator insisted the number of participants should not exceed 30-35.
However, from meeting nine (end of 2007/beginning of 2008) the value chain Lead
Advisors -headed by the second BOAM coordinator- started inviting many
participants (often over 60 participants), aiming at broad based information
dissemination. This prompted SNV BOAM to look more critical at the engagement
processes within the coordination group35. Invitation became more regulated with
only one participant from each organisation receiving DSA. Less relevant and nonmotivated participants were removed from the participation lists, although this did
not happen often according to the CG Facilitators (interview 12).
34
35
Discussion group SNV BOAM, August 12, 2010.

SNV BOAM Annual Report 2009
26 | P a g e
d) Agenda setting
The agenda of the meeting builds on the previous CG meeting agenda. It is the
Facilitator, the CG Leader and the SNV BOAM Lead Value Chain Advisor who
decide on content (interview 11 and 12). Participants can bring in agenda points
according to SNV BOAM (pers. comm. SNV BOAM, February 24, 2011), but this is
not explicitly stated in the invitation letter.
More than in the other value chain CGs (oil seeds, honey and dairy) the
pineapple agenda is directed towards the action groups or action approach and
(bilateral) grouping. In the pineapple CG, SNV BOAM plays a larger and active
role in establishing relationships, recognizing that strengthening different
relationships contributes more to solving constraints than focusing on experts
telling how it should be done (pers. comm. SNV BOAM, April 2011) (see also section
4.3). As such, SNV BOAM plays the role of broker and is actively linking actors and
stakeholders in and outside the CG.
All interviewees are modestly to highly satisfied with the agenda setting and
selection of stakeholders (Table 8). The Chain Facilitators -also brokers and BDS
providers in the pineapple value chains- are knowledgeable on theories related to
pineapple value chains and have a sector wide overview (interview 11). Members have
the opportunity to claim some agenda time (interviews 2 and 5). Nevertheless,
facilitation of the discussions was not satisfactory for every interviewee (e.g.
interviews 7 and 9). The facilitators were criticized for having insufficient knowledge
on the dynamics in the pineapple value chain, which resulted in discussions being
too loose and off topic. Fortunately, the agenda has been shortened (interview 9).
Two interviewees preferred SNV BOAM to actively share its agenda to top officials
and to locate the meeting place near the pineapple farming areas (interviews 3 and 5).
Table 8. Agenda setting and selection
of stakeholders evaluated
Satisfaction Frequency Percentage
(%)
0
0
Low
4
44
Modest
5
56
High
Total
9
100
Table 9. Equal benefits

Equal
benefit
Yes
No
Total
Frequency Percentage
(%)
4
44
5
56
9
100
(e) Distribution of benefits

The pineapple CG never explicitly identified benefits from the platform for the
stakeholders. When asked during the interviews for benefits and the way they are
distributed among CG members, a small majority (56 %) of the respondents believed
this is not equal (Table 9). Most of them represent public services agencies, next to a
processor company and SNV BOAM. Whether or not interviewees believed
distribution of benefits was equal, the dominant view is that those members
possessing the capacity (level of organisation and understanding) and a proactive
attitude will benefit most (interviews 3, 4, 6, 7, and 9). Those actors who understand
the framework and the requirements to benefit from the program, who are active
during the meetings and who hand in proposals, are more beneficial (interview 7).
Also, the government is likely to have benefitted to greater extent from the
27 | P a g e
discussions and information sharing (interview 11). Some believe that the cooperatives
are rather passive and unprepared probably as a result of their overwhelmed
feelings: the luxury hotel, the city etc. And they might have other motivations to
join (interview 9).
Next to the dairy CG, the pineapple CG was most limited in the usage of SNV
BOAM funds. One reason, according to SNV BOAM, is that CG members applied for
fund activities other than those agreed in the SIPs and operational plans. However,
several interviewees reported on delays in financial support (interviews 4 and 8). SNV
BOAM did not release any second payments in case of accountancy failure36. Also
SNV BOAM realizes that participation is dominated by those making the best
business out of it37. Finally, the high rotation resulting in different persons
representing their offices was listed as a reason for a limited fund use.
(f) Risk sharing
The last indicator of jointness in the CG, the extent to which risks are shared
between CG members in the meeting, appeared not very relevant, as resources are
mainly brought in by SNV BOAM. CG members risk little in the meetings except
their own time.
In sum, the degree of jointness of the CG members and the mutual independency
among them are important measures for the level of jointness in the MSP. Overall,
the data gave the impression that the BOAM programme at least intends to let the
MSP leadership function in a horizontal manner. Nevertheless, SNV BOAM played
an active role in CG leadership and facilitation (as a broker) and one interviewee
believed SNV BOAM is dominant in decision making. The CGs centre of gravity
was with the Chain Facilitators and SNV BOAM Lead value chain Advisor, with the
sitting SNV BOAM programme coordinator as a significant influencer at the
background. This was probably related to the absent and inexperienced Chain
Leaders. It seems the current CG Leader is not considered to be a natural primus inter
pares. In the meetings, members have an equal chance to speak out, although there
seem to be some members dominating the discussions. Moreover, not all stakeholders
have been able to articulate their needs/demand; only those who push their issues
through in previous meetings can influence the CG agenda, but only in consultation
with SNV BOAM.
In the social network analysis, betweenness centrality was among others used to
identify the most central actors in the network. As stated before, those organizations
having the highest scores on betweenness centralities in the network are the most
central players in the MSP networks. In Appendix 6, the top-10 central network
players of the pineapple CG are presented in tables. Their organisational type
(private sector, public sector, civil society, or education), subtype (i.e. processor,
producer, financial institute, business association, implementing agency etc.) and
their stakeholder role (actor, supporter, influencer and facilitator) in the value chains
were taken into account. The following regarding jointness was confirmed in the
social network analysis:
36
37
CG5 and 7 meeting minutes.

Discussion group SNV BOAM, August 12, 2010.
28 | P a g e
SNV BOAM is a central network player in the pineapple CG (Appendix

6). This corresponds with their leading role as an initiator of the whole
program and the pineapple CG; their involvement in agenda setting and
selection of stakeholders, and their final decision in financial affairs;
The current pineapple Chain Leader is not visible as a central player in
the pineapple CG (Appendix 6). This corresponds with the fact that
there was no constant leadership in the pineapple CG;
The Chain Facilitator is visible as central player in the pineapple CG
(Appendix 6);
In the first nine meetings (till January 2008), about 25-35 participants
can be observed in each meeting (except for meeting 4 and 8 counting
44 participants) (participation databases), corresponding with the
invitation policy of the first BOAM coordinator. In meeting 11, 60
participants can be observed (participation databases). This corresponds
with the invitation policy of the value chain Lead Advisor headed by the
second BOAM coordinator.
To identify and compare the genuine information brokers who are in between
other network players and control information diffusion- in the pineapple network,
only those organisations with a normalized betweenness centrality higher than 2 or 3
were taken into account in this part of the analysis38. In Appendix 6 the central
players with a betweenness centrality higher than 2 and 3 are presented.
Regarding information brokerage, the network analysis confirms and complements
that:
SNV BOAM plays the role of information broker in the pineapple CG,
confirming its dominant position as MSPs initiator (Appendix 6);
Measuring a betweenness centrality higher than 3, the pineapple CG is
most horizontal compared to the other CGs; information is diffused
through three information brokers (SARI, BoFED and SNV BOAM)
(synthesis report and Appendix 6).
3.1.3 Transparency
Overall, the transparency of CG activities is rather high. The meetings are open to
public (although more restricted towards the 14th meeting), and meeting summaries,
agendas and other documents are shared with stakeholders. All CG documents could
be downloaded from the former SNV BOAM website, although several links
appeared to be dead and not all documents were available. The CG has open and
transparent discussions on sensitive issues, for example on the behaviour of
monopolists in the markets. Nevertheless, according to one interviewee, the results of
complete studies were not distributed to all CG members (interview 6).
Success factors assessed under transparency were (a) accountability, and (b)
trust building.
38
The cut-points 2 and 3 are arbitrary
29 | P a g e
(a) Accountability
Formal accountability mechanisms are absent in the pineapple CG. Except for the
Chain Leader, Chain Facilitator and other contractors with SNV BOAM none of the
stakeholders participating in the CG have been assigned formal duties and
responsibilities. There are no mechanisms to hold members accountable for their
misdeeds or failure (interview 8). The pineapple CG saw little progress due to unmet
promises and slow implementation of decisions (interviews 1, 6, 7, 9, and 11). This was
emphasised as a critical problem by our pineapple interviewees. If the CG is to bring
changes in the pineapple sector, it has to be empowered to make decisions by its own
and be able to enforce implementation in such a way that members have trust in it.
To ensure this there should be formal MoUs that enforce every member to adhere to
certain basic principles and obligations while participating in the CG (interview 8).
Moreover, certain activities could not be completed due to dragging budget release
procedures of SNV BOAM (interview 8) (see also section 3.1.2 e). Fund users are
expected to present on their project progress in the meetings, but this was not always
fulfilled39.
Remarkable in the pineapple CG is that CG members seem quite keen on tracking
progress related to promises made. Forms of informal accountability are apparently
present in the pineapple CG. In meeting five, participants question how they can
access project outputs of financed projects (answer: SNV BOAM website). In
addition, the reasons for not completing a project by a public agency were not
regarded as satisfactory40. Hard talks sessions were executed in meeting eight on
failing distributions and transportations of plant seedlings. As a result of these talks,
a task force on transportation of seedlings was established41. Moreover, the research
centre that eventually failed to deliver the promised plantlets stepped out of the CG
meetings after meeting eight (pineapple database). As a final example of informal
accountability promises made by the church organisation were called into memory in
meeting eleven 42.
(b) Trust building
Trust is neither mentioned as a major issue in the pineapple CG, nor is it explicitly
addressed by the majority of the interviewees. Nevertheless, the pineapple CG is
valued for its contribution to improved relationships and trust building between
stakeholders in the pineapple value chain. The platform is appreciated as a neutral
meeting place where participants can discuss informally (especially during the coffee
breaks). Without the CG we would never have these open discussions on delicate
subjects such as the behaviour and monopoly of Piazza wholesalers/traders.
Discussions are sometimes tough but open and honest as well. The processing
company and the producer cooperatives gain more confidence and build trust as
they informally exchange their views on the problems of their organisation (interview
9). In meeting ten, trust building is emphasised as an essential key in establishing
long-term relations in a quality based payment system. All participating parties were
invited to sit down and to discuss the benefits of such a system in a transparent
39

40
30 | P a g e
way43. Business relations also improved as a result of the pineapple CG (e.g. interviews
2, 3, 4, 7, 10, and 11).
To sum up, whereas formal accountability mechanisms were absent in the pineapple
CG, informal accountability forms were prevalent. The CG has open and transparent
discussions on sensitive issues. Still, several organisations do not fulfil agreements
reached in the meetings. According to SNV BOAM this is related to a modest
interest of key stakeholders in the pineapple value chain (i.e. investors, wholesalers,
traders, government decision-makers) to bring about fundamental change in the
pineapple market.
3.1.4 Goal alignment
Goal alignment by stakeholders is considered to contribute to the effectiveness of
collective goal-setting processes, which, in turn, positively influences the success of
the MSP. Strong goal alignment and goal visibility allows for more effective
execution of the SIPs identified in the process. Goal alignment is measured by
assessing the success factors (a) clear objectives, (b) win-win opportunities, and (c)
a compelling case as driver of the MSP.
(a) Clear objectives
The formal aim of the CG as formulated by SNV BOAM- is to promote efficient and
equitable linkages for the economically active poor along the agricultural value
chain44. No common MSP objectives where specified ex ante by the pineapple CG
members, although the pineapple products value chain common objective that was
already prepared in the preliminary stakeholder workshop was adjusted in response
to CG members45.
The upgrading strategy in the pineapple value chain is the introduction of
Smooth Cayenne for the fresh and processed domestic and regional export markets.
At the start, retaining to this strategy resulted in too many changes required in the
support environment and business relations. Therefore, the upgrading strategy
seemed less focussed in the pineapple value chain CG. The program had a very broad
focus and the CG tried to please everybody46. Intermediate steps were introduced
for support in three types of pineapple value chains: the new variety (e.g. Smooth
Cayenne) export chain, the processed pineapple product chain, and the domestic
fresh pineapple product chain. For example, also marketing and processing of the
Red Spanish variety was promoted as an intermediate step with the end goal of
pursuing the Smooth Cayenne variety (pers. comm. SNV BOAM, April 2011).
According to SNV BOAM, for example the export of Smooth Cayenne would have
always been a bridge too far for a cooperation that has never sold a pineapple.
Moreover, infrastructure (task force) and land issues were touched upon as well.
43

An observation out of the secondary data is that the aim has gradually been shifting from creating linkages
towards creating ownership in the sector. The third BOAM programme coordinator endorses this strategy
towards a long term vision for the CG.
45 Objective pineapple CG: to ensure sustainable supply of quality pineapple. In meeting one, one additional
result was added (cultivatable land is made available for investors).
46 Clarification meeting SNV BOAM, November 8, 2010.
44
31 | P a g e
b) Win-win opportunities
Do the members feel the CG facilitates a win-win situation for all? As we have seen
in the section on risk sharing, CG members risk little in the pineapple CG meetings
except their time. This suggests that opportunities are equal for every CG member,
although not every member has the same capacity to access these opportunities.
Nevertheless, the illegal traders and wholesalers who in the perception of the
majority of the interviewees- dominate the pineapple market, refuse to pay tax, are
not legally registered, and encourage cash-constraint farmers to sell their products
cheap and directly to them have no interest in changing the situation of the market
as it currently is. Seemingly, they have no interest to join the pineapple CG as they
do not experience any win-win opportunities from it.
(c) Compelling case
Is the pineapple product CG driven by a compelling case, i.e. an important need that
can be best fulfilled through an MSP and that is recognized and accepted by all
members? In the opinion of all eight respondents to this question the CG is
recognised as an important mechanism supporting the development of the Ethiopian
pineapple sector. There was a compelling case to initiate a multi-stakeholder platform
where actors from the three different societal sectors (private sector, government,
and civil society) meet and work together to better link smallholder pineapple
producers and processors to pineapple markets. There was no organising platform as
such before and the pineapple value chain started from scratch (interview 12).
Without SNV BOAM, starting a neutral forum like this would not have been easy, if
not impossible due to all different interests and stakes (interview 5). When we wish
to transform the economy in a sustainable market-oriented way, a platform like this
CG is necessary (interview 7). Finally, information is difficult to retrieve in the
different regions. There is a need for a common organisation or an information
channel to share this information, such as the CG (interview 2). In this way, it can be
concluded that there is a compelling case for the pineapple CG as a vital first step to
organize the pineapple subsector. But the pineapple CG is only one element. The
problems in the pineapple market should also be tackled by strengthening and
promoting cooperatives and small farmers, improving the general educational level,
having private discussions with farmers, professionals and cooperatives in the
pineapple value chains, and creating storage facilities according to the interviewees.
3.2 Embeddedness
To assess the degree to which the pineapple MSP is enmeshed in third organisations,
we assessed its inter-organisational relationships through (a) the origin of the
participants link with the CG (was the motivation to join brought about by another
organisation?), (b) the extent to which the MSP contributed to new professional
organisations memberships, (c) the involvement of participants in multiple MSPs, (d)
relations with the government, and (e) SNV BOAMs inter-organisational
embeddedness as a result of its MSP activities.
(a) The original link to the pineapple CG
For two interviewees inter-organisational relationships have been supportive in
linking and motivating stakeholders in the pineapple value chain to become a
member of the CG. They concern the Chain Facilitators and a pineapple investor who
32 | P a g e
respectively got involved in the pineapple CG through their facilitating activities for
the honey and oil seeds value chains (interview 12) and through the Investment
Agency (interviews 4 and 5). Next to facilitating, the Chain Facilitators organisation
is also providing BDS services to pineapple CG members (interview 12). There was no
association present that successfully attracting new members to the meetings.
(b) Access to new professional organisations memberships
The CG has supported none of the participants interviewed to access new
professional organisations. In principle, they are absent in the pineapple horticultural
sub-sector. Only the wholesalers of the Addis Ababa market are organised, however,
they have no interest in the pineapple CG (interview 11).
(c) Involvement in multiple MSPs
A limited number of organisations of the pineapple CG are active in multiple MSPs.
Next to their membership of the pineapple CG, they visit CG meetings of the dairy,
oilseeds or honey value chains. Among these organisations are: the Ministry of Trade
and Industry; the Chamber of Commerce; a bank; a University, several governmental
implementing agencies like BoFED and SNNPR MSEDA, the Cooperative
Promotion Bureau, the Quality Standard Authority of Ethiopia (QSAE); the
Consulting Management Business Creation and Development Services (BCaD), as
well as a women association. Most of these organisations are limited to the SNNPR
state however, such as the Awassa Chamber of Commerce or the Awassa women
entrepreneurs association. Other organisations were present in several pineapple CG
meetings, but they focus mainly on the honey CG (i.e. the Ministry or the QSAE).
Nevertheless, currently, two pineapple cooperatives are in the process of establishing
business relationships with a wholesaler and a processor. In addition, the bilateral
sessions (see also section 4.3) idea was copied from the other fruit value chains CGs.
The actors involved in multiple MSPs transfer information and contacts from one
MSP to the other to the benefit of the members, and enhance the general networking
opportunities for them. In this way they contribute to the effects of the each MSP.
(d) Relations with the government
Relations with the public sector are obvious in the pineapple CG. Out of the four
value chains under study, the government is best represented in the pineapple CG
(see also section 3.3 a). In fact, the small subsector is depending on the government,
which is slowing down its progression (pers. comm. SNV BOAM, September 7, 2010).
On the other hand, government attention to the subsector increased (e.g. interviews 9
and 12) and pineapple stakeholders learned that even a small sector can grow big
and became visible and recognized (interview 12).
33 | P a g e
Picture: employee Chucko Woreda Agricultural Office (Ethiopia) in pineapple field
(e) SNV BOAMs network

SNV BOAM is not the sole donor involved in the VCD approach, but is embedded in
a broader international development network. The most prominent organisations
with value chain development programmes are the German GTZ, Oxfam GB, and
the Royal Netherlands Embassy (RNE), which supports the dissemination of best
practices among donors, government institutions and practitioners. The government
of Ethiopia has adopted the sectoral and value chain approach. These links of SNV
BOAM also embed the CG members in the wider institutional field.
The pineapple CG is medium embedded in inter-organisational relationships.
Relations with the government are evident and the Chain Facilitator, the most
central actor of the pineapple network, is also BDS provider. But there is no access to
new professional organisations and members hardly joined the CG through interorganisational relations, resulting in limited multidirectional information flows. The
MSP has been partly supportive in creating linkages between public- and private
sector and civil society, reflecting representations arrangements. Finally, linkages of
SNV BOAM also embed the CG members in the wider institutional field.
3.3 Involvement
In this case study, the intensity of actor involvement was assessed through (a)
individual/sector representation in the CG and (b) participation in CG-related
committees. The findings were verified in the social network analysis.
(a) Representation
In total, 7 out of the 10 interviewees we asked this question believe the pineapple CG
has incomplete representation (Table 10). Apart from the interviewed TC laboratory,
Investment Agency and wholesaler, interviewees have a variety of ideas on
stakeholders missing in the pineapple CG. Especially the absence of a) key-decision
making government delegates; b) on the ground development agents (extension
service); c) wholesalers/processors; d) financial institutions (commercial banks) and e)
other NGOs is regarded problematic.
34 | P a g e
There is a relative overrepresentation (compared to the other CGs) of the

public sector in the pineapple CG as they fill the void of the absent private sector
(interview 11). SNV BOAM believes this relative overrepresentation of the public
sector was harmful to the outcomes of the CG (pers. comm. SNV BOAM, September 7,
2010). The public sector is dominant in the pineapple subsector, however, they offer
non-reliable public services47. The CG did not convince government authorities to
carry out their responsibilities (i.e. road construction) (interview 4). SNV BOAM was
assuming that the private sector would automatically take up certain functions and
roles in the pineapple value a chain which was not the case in practice (interview 11).
Next to this, you would normally have processors and traders in the CG as
you expect them to have an interest in diversifying the market. We invited them but
could not keep them on board, regardless our efforts (interview 11). The pineapple
value chain is simple: fresh produce is directly sold to the Piazza market, with power
almost completely concentrated around three to five wholesalers48. The wholesalers
and traders disengaged since they were unwilling to compromise their monopoly
position (pers. comm. SNV BOAM, February, 2011).
Some interviewees explicitly deplored the absence of key decision makers of
government and financial agencies because they could significantly help improving
genuine attention to the subsector and solving the problems in the pineapple sector
(interviews 3, 4, 7). An investor responded: I appreciate the learning possibilities from
other stakeholders in the pineapple value chain; however, they have no authority to
make the necessary decisions (interview 4). The key stakeholders (i.e. investors,
financial, wholesalers, traders, government decision-makers) associate insufficient
benefits with the CG and have low interest in bringing about fundamental change in
the pineapple market (interviews 7 and 11). Furthermore, the absence of development
agents on the ground results in limited technical support to pineapple producers
(interviews 1 and 7). In CG meeting nine, one member stated that it would be good to
invite representatives from the Woreda and Zone49 agricultural bureaus to the CG
meetings. The Lead Advisor replied that it would be difficult to invite and manage
these level participants in this coordination group meeting50. It would also have
helped if other financial institutions (commercial banks) would have been invited to
the CG meetings (interview 6) and some other NGOs such as JICA, the Japanese
development NGO (interview 9).
Table 10. Representation pineapple CG
Representation Frequency Percentage
(%)
Complete
Not complete
Total
3
7
10
30
70
100

47

Clarification meeting SNV BOAM, 8 November 2010.
49 Ethiopia is federal state and at the national level there are two urban administrations. The regional level is
the state level, e.g. Oromia State and SNNPR State. They can develop their own policies. The zonal level is
between state and woreda and they have their own administrative structure. Next is the woreda level, which is a
local government structure at district level. Finally, there is kebele at the grassroots level (village level). It is
the administration of a few villages (source: local consultant).
48
35 | P a g e
(b) Participation in CG related committees

The establishment, membership and participation in (steering, ad hoc) committees,
Boards and working groups are indicators of actor involvement as well. In the
pineapple CG meetings a limited number of (spontaneous) committees, Boards and
groups were formed, such as the task force on transportation of seedlings in meeting
eight, an ad-hoc committee on the problem of infrastructure in meeting nine, as well
as the Executive Committee for the approval of concept notes in meeting nine.
However, the latter already finished before it properly started as funds were
finished (pers. comm. SNV BOAM, August 20, 2010). Furthermore, a business pilot
venture between a private processing company and two farmer organizations was
initiated. Six new pineapple processed products were developed (jam, compote, wine,
sun dried, vinegar, juice) and 160 pineapple producers, the majority women, were
trained in processing the pineapple products. The new products were promoted and
supplied in two towns under the companies label51. The task group on infrastructure
resulted in the improvement of 27 km of road by the government to make investment
lands accessible52. Altogether, the pineapple value chain MSP generated a few suborganisations, however, with medium-high success rate.
The social network analyses on sector representation and central network players
generally support these findings (derived from Appendices 5 and 6). In Table 11 and 12
respectively the sector representation in the pineapple value chain CG and the
number of central network players from each sector are represented. Finally, in Table
13, the central network players per stakeholder role in the pineapple value chain are
displayed.
Table 11. Sector representation in the pineapple CG in percentages (%)
Sector
Private Public Education
Civil
Unknown
sector
sector
society
Pineapple
58,8
25,0
10,0
6,2
0,0
Table 12. Top-10 central network players in the pineapple CG per societal sector
Pineapple
3
Private
4
Public
Civil Society 1
2
Education
10
Total
51
52

SNV BOAM 2010 Mid-Year report fruits.
36 | P a g e
Table 13 Top-10 central network players per stakeholder role in the pineapple value
chain
Pineapple
2
Actor
Supporter 3
Influencer 4
Facilitator 2
10
Total
From the network analysis, the following was confirmed:
SNV BOAMs private sector approach is evident; the majority of the
participants in the pineapple value chain CG represent private sector
organisations (58,8 %) (Table 11).
But with 25 percent, the public sector is relatively higher represented in
the pineapple CG compared to the other value chains CGs (Table 11,
synthesis report). More important, the pineapple CG has a relative greater
share of central players representing public agencies than private sector
agencies (Table 12). This confirms SNV BOAMs suspicion of a relative
overrepresentation of the public sector in the pineapple CG;
All stakeholders roles in the value chains are represented in the lists of
central network players of the pineapple CG (Table 13). This indicates
that value chain roles (chain actors, -supporters, -influencers and facilitators) of the whole chain approach are represented in the
networks;
Financial organisations (i.e. banks, MFIs) are absent as central network
players in the pineapple CG (Appendix 6);
37 | P a g e
Table 14. Pineapple CG Ethiopia: internal and external dynamics

Internal dynamics
I. Collaboration
1.1 Engagement
Commitment
Motivations
Roles & Contrib.

Shared resources
1.2 Jointness
Decision making
Leadership
Selection stakeholders
Agenda setting
Benefits distribution
Risk sharing
1.3 Transparency
Accountability
Trust-building
1.4 Goal alignment
Objectives clear
Win-win
Compelling case
II. Embeddedness
Link to CG
Member new org
38 | P a g e
Modest. High in meetings, low/absent in implementation

outside meetings (slow progress). SNV BOAM considered its
continuation in pineapple VC in 2008. Several key stakeholders
have no interest in changing the subsector.
Never solely intrinsic. Related to 1) the need for technical and
financial assistance of SNV BOAM; 2) the need to meet with
suppliers or investors and 3) personal invitations by SNV. DSA
not objective in itself.
No, Formal duties and responsibilities not specified
No, but equal access to third (SNV BOAM) funds
Joint, but limited in financial decisions. Equal opportunity to
speak out for all, although few gatekeepers present in length
and reduce time for others. Critique that SNV BOAM is
dominant in decision making.
Weak Chain Leader and absent Leading Association. No
unanimity on future steering body.
Leading Trio of CG Leader, Chain Facilitator, & SNV BOAM.
Members modestly-highly satisfied with selection.
Leading Trio of CG Leader, Chain Facilitator, & SNV BOAM.
Influencing agenda by others cumbersome. SNV BOAM plays
the role of broker and applies the action groups or action
approach and (bilateral) grouping. Members modestly-highly
satisfied with agenda setting.
Benefits depend on stakeholders pro-active attitude and
capability to articulate interests, and capabilities not equally
distributed among members.
No risk members in meetings not relevant
Formal accountability mechanisms absent. Prevalence of
informal forms of accountability significant, however, with little
result due to unwillingness to change (see also commitment).
Modestly. CG effective as new meeting place and improved
trust somewhat among actors in and along the chain. More
transparency on delicate matters.
Semi-clear. At start, focus of upgrading strategy to broad
In principle. Win-win opportunities are equal but members
need capabilities to gain from MSP, and some more capable
then others. Monopolists experience no win-win situation from
the CG.
Yes. Pineapple value chain started from scratch and needed
information channel and neutral meeting platform. NGO
successfully facilitated tri-sector approach
No. Hardly any pre-existing links with other organisations.
No. No access to new professional organisations memberships.
Multiple MSPs
Relations with
government
SNV BOAM
embeddedness
III. Involvement
Representation
Participation CG sub
committees
IV. Institutions
Access to knowledge
Access to capital
Access to markets
Access to (third)
organisations
39 | P a g e
Yes. Several members involved in other (BOAM) MSPs. Mango

and pineapple cooperatives establishing business relationships.
This improves network opportunities for CG members.
Yes. Government attention to subsector increased.
Yes, links SNV BOAM also embed CG members in wider
institutional field
Incomplete. Absence of a) key-decision making government
delegates; b) on the ground development agents (extension
service); c) wholesalers/processors; d) financial institutions
(commercial banks) and e) other NGOs.
Medium. CG generated a medium rate of successful suborganisations.
Yes in respect of training, awareness quality issues, and new
means of production (TC) and new varieties (Smooth Cayenne).
But durability is under question.
No, almost no effects. Financial organisations hardly offer
accessible loans to smallholders and SMEs (restricting
conditions). Major limitation effects CG. Capacity support to
cooperatives may improve their creditworthiness.
Yes in B2B relationships and new export opportunities to
foreign markets as a result of introduced variety.
Limited in respect of increasing buyers competition and
contractual agreements.
No effects in respect of quality standards, prices paid by buyers
and farmers awareness on export potential.
No effects. No access to new professional organisations
memberships.
4. Institutional change
This chapter elaborates on the CGs external dynamics, the institutional changes in
the value chains business environment brought about by the CG. We address the
question to what extent the CG has been effective in improving the conditions for
upgrading for farmers and SMEs in the pineapple products value chain, in the
perception of the interviewees. The focus is on opportunities for value chain actors to
acquire knowledge and technology, capital or credit, opportunities to stabilize
markets, and to become part of professional associations. Table 15 presents an
overview of perceptions by knowledgeable interviewees.
In CG meeting nine, SNV BOAM shares its concerns on the limited progress
in the pineapple value chains. Out of the six value chains that are being developed by
the SNV BOAM programme, pineapple was the least performing in the last 2
years53. Anno 2010, the interviewees report on several positive achievements, mainly
related to improved access to knowledge and technology.
Table 15. Perceived changes in the institutional environment, in percentage and
number of interviewees
+/- %
+
%
Total
- %
4.1 Access to knowledge and technology
Training on pineapple farming
TC culture instead of conventional
0
0
0
0
0
0
0
0
0
0
2
3
5
3
1
25
38
62
38
13
6
5
3
5
7
75
62
38
62
87
4.2 Access to capital
+/-
Total
Willingness banks/MFIs to finance
75
25 0
4.3 Access to markets
+/-
Total
Increased prices paid by buyers

Advanced payments
7
7
87
87
1
1
13 0
13 0
0
0
8
8
4.3 Access to organisation
+/-
Total
Access to organisation
100 0
Farmer awareness on quality

Availability of Smooth Cayenne/MD2 variety
Shift from Red Spanish to Smooth Cayenne
- No effect of CG
-/+ Limited positive effect of CG
8
8
8
8
8
+ Considerable positive effect of CG
4.1 Access to knowledge

Access to knowledge refers to market, technical, or organisational information that
value chain actors can acquire either by themselves or by hiring affordable service
suppliers. To what extent have the CG meetings facilitated pineapple chain actors in
their access to such knowledge? Has the CG been indispensible in this respect?
53
40 | P a g e
Interviewees are generally positive on the CGs effect on improved

technologies and knowledge in the pineapple sector. The CG has been instrumental
in providing trainings to pineapple farmers (75 percent) and thereby improving
awareness on quality issues (62 percent), although the numbers of farmers that
received extensive trainings was limited54 (e.g. interviews 4, 10 and 11). At least 300
pineapple producers were trained on pineapple production agronomy and post
harvest handling, planting material preparation, and in hygiene requirements and
processing techniques55 (interviews 1-4, 6, 7, 9, 11). Also operators were trained on
how to train farmers (interview 7). This is to be considered an indirect effect of the
CG, since it is the general SNV BOAM programme that delivered the funding for the
trainings. Nevertheless, it is through the CG that stakeholders meet with their
Business Development Services (BDS) providers (i.e. BCaD), and cooperatives and
processing companies acquire the resources to train their suppliers. Currently, four
investors are participating in the CG and receiving trainings from experts such as
agronomists and researchers through the CG. We have the capital, but we need the
knowledge (interview 4). Due to SNV BOAM funding, the Cooperative Union, a
Tissue Culture laboratory, two public agencies and a processing company
interviewed were able to provide trainings to their members and/or supply them
with for example pineapple seedlings (interviews 1-3, 7, 9). In addition, in the CG
meetings, at least four site visits were organised to two research centres, the
processing company and a nursery site56, contributing to knowledge exchange and
information sharing. Also, pineapple chain stakeholders pointed to information
sharing during the CG meetings on for example pineapple product diversification,
quality based pricing schemes, and tissue culture (e.g. interviews 2, 4, 7, and 11).
Unfortunately, middleman and wholesalers in the Addis Ababa market destroy the
quality of the pineapple market, ascribed to their non-sustainable buying behavior
(inappropriate post-harvesting, buying non-ripe pineapples etc.) (e.g. interviews 4 and
9).
The use and growing of Tissue Culture (TC) planting materials instead of
conventional pineapple materials is perhaps the most tangible success attributed to
the pineapple CG. The CG has really proven that it is possible to change things on
the level of technologies and services in a government control system. The TC
industry is surely recognized in Ethiopia as a success. No less than 87 percent of the
interviewees are convinced on this matter. The main advantages of TC pineapple
plantlets are the ability of mass propagation of quality planting materials and the
shortened investment period (5 years in conventional planting material compared to
2 years in TC planting material). Related to the use of TC planting materials is the
introduction of the Smooth Cayenne pineapple variety instead of the Red Spanish
pineapple variety (confirmed by 62 percent of our respondents). The higher quality
variety Smooth Cayenne (sweeter) is favored in the (international) markets and
farmer friendlier due to its soft leaves (see also pictures below). The Red Spanish
variety is not the king anymore as it used to be. Currently, stakeholders prefer the
Smooth Cayenne variety (interview 4).
54

CG10 and 13 meeting minutes.
56 CG1, 2, 10 and 13 meeting minutes.
55
41 | P a g e
A few interviewees placed critical notes concerning the durability of CG

interventions. As stated before, the impact of the trainings was limited to a definite
number of producers. Second, pineapple farmers in the Tesso region started to
replace pineapple cultivation with other products, such as coffee, as returns are
higher. Apparently, they do not see the benefits of pineapple production57. Third, the
Smooth Cayenne variety is currently preferred; however, there is a shortage of input
supply (e.g. interviews 1, 4, and 7). It is only modestly available according to 62
percent of our respondents. Fourth, European retailers increasingly prefer MD2 type
pineapples over other varieties, including the Smooth Cayenne and Sugarloaf
pineapples (Pay, 2009, FAO). Finally, dynamics in the pineapple value chains have
only started recently, and SNV BOAM doubts whether the slow progression was
worth the five years of CG investments (pers. comm. SNV BOAM, September 2010;
interview 11).
Pictures: leaves of the Red Spanish (left) and Smooth Cayenne (right) pineapple varieties
4.2 Access to capital

Access to capital involves the possibilities for pineapple value chain actors to acquire
a credit, loan or budget for their commercial activities. Access to capital was assessed
through interest rates, duration, collateral requirements, pay-back conditions, and
characteristics of the funding organisation. It was also verified whether the CG was
indispensable in influencing the stakeholders opportunities to access capital/credit.
In Ethiopia, commercial Banks rarely lend money to small scale suppliers, and
farmers have only access to MFIs and informal lenders. The Development Bank
interviewed is mandated to finance (agricultural) development projects. Clients of the
Development Bank are private investors and farmer cooperatives and they can
receive loans against a 7.5 % interest rate per year (interview 6). However, criteria of
the Bank to obtain loans are often not met: 1) the product should be in the priority
list of bank; 2) a feasibility study should be met; 3) the recipient needs a business
license (secure licence of Bureau of Trade and Investment or MOTI or any other
57
42 | P a g e
authority that provides licences to operate); 4) it has to secure an investment

certificate from the regional or federal investment authority; and an 5) equity
contribution has to be met (30 % own contribution of client). Products (including
pineapple) appear in the priority list if they operate on a commercial scale and have
an export potential. The investors are having problems meeting the equity
contribution criterion and the investment certificate (delayed). According to the
Credit Officer of the Bank, no single cooperative for pineapple production was
financed so far (interview 6). According to the respondent, the main problem is that
farmers can only access credit of the Development Bank through the cooperatives,
and individually through MFIs.
Access to capital/credit was therefore a point of discussion in the pineapple
CG. In the beginning of BOAM there were discussions on whether or not to include
loan guarantees in the programme; however donors of SNV BOAM were not willing
to finance that. Main problems are that the Ethiopian financial sector is heavily state
regulated, even for the private farms, and that agriculture is seen as a high risk
investment. Insurance opportunities against crop failure are absent.
The CG has not been able to improve access to credit/capital in the pineapple
value chains. The eight interviewees with whom the issue was discussed said the CG
did not positively affect the willingness of Banks and MFIs in Ethiopia to lend any
money to stakeholders, mainly smallholders, in the pineapple value chain. Only two
respondents, the processing company and SNV BOAM see a limited -indirectpositive effect of the pineapple CG. But 75 % sees no change at all (Table 15).
Particularly in the small pineapple subsector access to capital is critical, as the fruits
are not being recognized yet as a potential growth area. According to a private
investor, banks are not convinced yet on investing in the pineapple subsector
(interview 4). SNV BOAM confirms the lack of results in this respect and also on the
implications for the durability of the CG activities. This is probably a limitation of
the program: how will the finance continue if there is no access to credit facilities?
(pers. comm. SNV BOAM, August 20, 2010).
Despite the lack of concrete results, the CG could potentially contribute indirectly- to some minor changes in the financial environment of the pineapple
subsector. Improving the capacity of the cooperatives for example, improves their
trustworthiness (e.g. transparent financial system) and will help them to apply for
loans (interviews 6 and 9). Remarkably, in CG meeting eight the Development Bank of
Ethiopia was directly questioned whether they were interested in financing a certain
initiative58. This corresponds with the pro active attitude perceived in the pineapple
CG meetings (section 3.1.1 a). In addition, the pineapple CG received quite some
attention from several MFIs; however, it did not lead to changes in their collateral
policy or any concrete funding to pineapple CG members (e.g. interviews 2, 6, and 11).
Recapitulating, perhaps one of the major shortcomings of the pineapple CG is the
little progress that was booked on pineapple value chain stakeholders access to
affordable credit/capital.
58
43 | P a g e
4.3 Access to markets

Access to markets was examined by gathering information on prices, and buyer and
farmer commitments (advance payments, contractual arrangements, quality
standards, and alternative market opportunities).
The pineapple CG has been limited successful so far in improving markets
access for smallholder farmers and SMEs. First, prices paid by buyers did not
increase in the pineapple value chain (Table 15 and textbox). The monopolists are the
price determiners in the pineapple market (interviews 1, 2, 3, 9, and 11). Still,
discussions in the pineapple CG, for example on the entrance of new investors in the
pineapple market, immediately lead to a response in prices in the pineapple market.
The monopolists quickly lowered their selling prices. Even traders that are not
participating are aware of the discussions taking place in the pineapple CG (interview
11). Furthermore, the fruit wholesaler and processing company interviewed are
willing to work with suppliers, however, only for an agreed quality supply with a fair
price59 and presently local prices suggested by cooperatives are too high (e.g.
interview 10).
Second, thus far, hardly any formal contractual agreements exist between
buyers and suppliers (interviews 1, 7, 9, 11). Nevertheless, ETFRUIT and ELFORA as
fruit wholesalers are exploring the purchase
of Red Spanish pineapples directly from the
Pineapple prices are highly
cooperatives60 (interviews 9 and 10). However,
fluctuating due to seasonality and
the weak capacity of the cooperatives and the
are dependent on pineapple
Piazza monopoly is hindering its
variety (Red Spanish-Smooth
establishment (e.g. interviews 1, 3, 9, 11).
Cayenne) and fruit size (smallAccording to SNV BOAM, contracts were
big). To give some indication, the
established once or twice in the CG process,
researchers found that for example
Smooth Cayenne (2.6-3 kg on
however they failed due to farmers side
average) is sold for 6-8 Birr per
selling practices to merchants that
unit whereas Red Spanish (1.9 kg
encouraged the farmers to sell their products
on average) is sold for 3-5 Birr per
directly to them61 (interview 11). Cooperatives
unit (pers. comm. Chucko Woreda
lack the ability to bind farmers, since they are
Agricultural Office, November 12,
2010). A distributor indicated he
still incapacitated and represent no genuine
buys for 4-5 Birr per unit in the
farmer based marketing organisations
dry season and 2.5-3 Birr per unit
(interview 11). They cannot offer sufficient
in the peak season (interview 10).
support to their members (interview
The Cooperative buys big sized
3).Farmers have no desire to engage in
pineapples for 3 Birr per unit and
small sized pineapples for 2 Birr
binding agreements with the cooperatives as
per unit. They sell with an
they prefer to have their options open in case
additional 0.25 cent added to these
ample opportunities arise (interview 1).
prices (interview 1). Addis Ababa
Another wholesaler, ELFORA, did not start
traders often buy pineapples for
collaboration with the cooperatives (unions)
but 1 Birr (!) per unit (interview 9).
59

60
44 | P a g e
Interviewees point out to inflation

as the main reason for the general
price increase in the sector.
as the unions behaved unpredictable (did not supply properly, shift to alternative
markets, illegal brokers, poor quality products). The topic of contract breaking was
initiated in the CG discussions62. In the peak season, farmers have no problems
finding alternative markets and buyers (e.g. interviews 1, 3, 7, 10). ETFRUIT is
hopeful that the contractual agreements will be formally backed up by the
cooperative promotion bureau and other governmental agencies (interview 10).
Third, none of the respondents believed the willingness of buyers to provide
credit in advance increased considerably as a result of the CG (Table 15).
Fourth, quality standards are absent. The low quality Red Spanish variety is
non-marketable to foreign markets. Moreover, there is insufficient supply of the
higher quality varieties Smooth Cayenne and MD2. For example, the wholesaler
ETFRUIT has tried for seven years to create a market for pineapple in Sudan and
Djibouti but failed due to insufficient quality and price issues (too high farm gate
price)63.
Finally, farmers awareness and trust in the commercial export value of
pineapple needs improvement (interview 7). In meeting one no single farmer was
attending, reason for the SNV BOAM Coordinator to express his concern on farmers
level of awareness on the export potential of pineapple64. As stated before, pineapple
farmers in the Tesso region started to replace pineapple cultivation with other
products, such as coffee, as returns are higher65.
Contrary to these limitations, there are positive developments too. Next to the
considerable demand for Smooth Cayenne in the international market, the main step
forward is that the pineapple CG served the function of contact platform and enabled
the establishment of new business to business (B2B)
relations (see also textbox). Especially the bilateral
sessions uniting actors with similar business interests
SNV BOAM aims at
in the fruit MSPs initiated by SNV BOAM, contribute
delivering B2B support to
to business relations development (interviews 1, 2, 3, 7,
guarantee that a reliable
9, 10). It is a facilitation tool has the potential to
supply and market outlet is
actively engage stakeholders and to strengthen the
assured. In their opinion,
dialogue between the different chain actors,
facilitating the
supporters, influencers and facilitators. It is action
development of business
oriented and has the potential to create commitments
relationships and
(pers. comm. SNV BOAM, February 2011). The
arrangements between
sessions link for example investors with TC
downstream traders,
laboratories and clients to their BDS providers. The
processors and farmer
idea evolved from the SNV BOAM mango and apple
organizations on one side
meetings, where these sessions were instrumental in
and small farmers and their
assuring reluctant wholesalers participation in the
organizations on the other
meetings66. As a result of these bilateral sessions, for
side is essential for
example, research institutes, investors and TC labs
business development.
have agreed to prepare clean mother planting
Source: SNV BOAMs value chain
materials. Moreover, the processor company and the
62

66 Clarification meeting SNV BOAM, 8 November 2010.
63
45 | P a g e
farmer cooperatives decided to give trainings to 50 trainers on processing pineapple

into juice, wine, dried and jam. In addition, ELFORA and ETFRUIT also agreed to
work together on the distribution of excess products in the Addis Ababa market
outlets. Finally, an ad-hoc committee was established as a result of sessions between
investors and Road Agencies on the problem of infrastructure67.
Interviewees report in great numbers on the B2B relations they established in
the pineapple CG meetings. The pineapple investor interviewed currently has the
opportunity to (1) approach several government agencies; (2) have a contractual
agreement for buying 100 350 seedlings per month for his company; and (3) receive
advice from experts like agronomists and researchers (interviews 2 and 4).
Cooperatives were linked with wholesalers and processors (interviews 1, 3, 9, 10). The
processing company has started a fruitful cooperation with the Cooperative
Promotion Bureau as the latter has informed them on the rights to create local
companies with cooperatives (interview 9). A University provided input material for
the TC Laboratory interviewed. The University also prepared a proposal for the
technical support of the establishment of the TC lab by TAF (interview 11). The
Development Bank met with private investors in the meetings resulting in an
agreement being drafted for access to loans for one of these investors (interview 6).
Finally, the pineapple CG attracted several (new) investors, processors and
wholesalers (e.g. ECOPIA, ETFRUIT and ELFORA) to the meetings who have the
potential to break the Piazza (black) market monopoly. With their engagement, the
number of players in the small sector amplified and they are planning to trade
directly with the cooperatives (interviews 4, 9 and 11). By 2010 the position of the
Piazza wholesalers in the low-quality fresh fruit value chain has lessened. Farmer
organizations, processors and regional traders are by-passing the main centres for
wholesale distribution, resulting in higher margins for them (Visser et al., SNV
BOAM, 2011).
Picture: Group sessions in pineapple CG, Awassa (Ethiopia)
67
46 | P a g e
4.4 Access to organisation

As already discussed in section 3.2, the MSP has not facilitated any access to new
professional organisations memberships for the stakeholders interviewed.
General successes in the pineapple sector are presented in the textbox. Indirectly, the
pineapple CG contributed to most of them. In the above sections on institutional
change we have described how pineapple plantlets suppliers and investors have met
in the CG. Trainings provided to farmers were indirectly financed through the CG,
since it is the general SNV BOAM programme that delivered the funding for the
trainings. The task force on infrastructure was established in the pineapple CG.
Eight out of nine respondents rated the overall success of the pineapple CG as
modest and one as low-modest.
47 | P a g e
Ethiopian pineapple sub-sector successes

Eight investors acquired 1200 ha of land for Smooth
Cayenne pineapple production in 2008;
30,000 pineapple plantlets have been delivered by JARC and
390,000 plantlets have been delivered in the first half of
2010 by the TC laboratory;
Good Agricultural Practice (GAP) training was provided to
2,600 pineapple farmers in Chucko and Dara woreda;
A business pilot venture between a private processing
company and 2 farmer organizations was initiated. 6 new
pineapple processed products were developed (jam, compote,
wine, sun dried, vinegar, juice) and 160 pineapple producers,
majority women, were trained in processing of the pineapple
products. The new products were promoted and supplied in
two towns under the companies label;
The task group on infrastructure resulted in the
improvement of 27 km of road by the government to make
investment lands accessible.
Sources: SNV BOAM biannual report 2010, SNV BOAM fruit sector fact
sheet, SNV BOAM Annual Report 2009
5. The future of the pineapple CG

With the interviewees we discussed the future outlook of the MSP. The common
feeling was that the CG has been an effective meeting place that played an important
role in identifying policy gaps and major problems in the pineapple value chain. This
function in its current format is however not likely to be sustained. In August 2011,
the last CG meeting will be organised by SNV BOAM. A number of interviewees are
pessimistic on the CGs continuation (interviews 1, 5, 6, 9), especially as, so far, no
strong and willing host partner has emerged (interviews 5 and 9). The pineapple CG
is too young to run without a chef (interview 4). One interviewee doubts whether
investors are competent to take over as they need assistance themselves (interview
5). Also government agencies seem problematic as they are not interested (interview
5) and their dominance would make the CG less interesting to the cooperatives as
they would be intimidated. The organ should be interested in the whole pineapple
VC, from supply to consumer, and it will be difficult to find someone like that
(interview 9).
Those who do see opportunities for continuation prefer the regional Bureau of
Agriculture and Rural Development (BoARD) as an adequate candidate for take-over
(3), followed by the Cooperative Bureau (2). Only SNV BOAM prefers MSEDA, due
to its overlapping mandate. The latter would be happy to take over (interview 7).
Other interviewees suggest having not one actor but a group structure taking over
(interviews 4 and 10). Or the process of contact exchange between stakeholders
continues, without the CG meetings (interview 2).
What will probably happen, as indicated by SNV BOAM, is that the NGO
continues its support to the CG structure for a while, until supplementary private
48 | P a g e
investment comes in. We entered a scaling-up phase that requires additional private
investments other then public investments (interview 11).
49 | P a g e
6. Conclusions
This case study assesses the effects of the pineapple multi-stakeholder platform, the
Pineapple Coordination Group (CG) that was established by the NGO SNV in 2005
to improve the access to (quality) markets for stakeholders in the Ethiopian value
chain for pineapple. Up to 80 organizations participated in at least one of the 13 CG
meetings that were held in the period 2005-2010. To examine the CG we analysed
both its internal, organisational dynamics and its external dynamics, i.e. the changes
brought about in key areas of the institutional business environment.
SNV BOAM had shown with FAO data that the international demand for
fresh pineapple had been growing at a stable rate from 2000 onwards, also due to
innovations that led to the emergence of a new sweet pineapple variety. But
Ethiopian producers could not benefit from this demand due to various reasons,
among them high transaction costs in the Ethiopian part of the global value chain,
low volumes produced and above all the dominance of a small number of wholesalers
in the market. During our research, interviewees also pointed to the minimal
infrastructure in Ethiopian pineapple production regions, long procedures to access
bank loans, barriers to acquire arable land, insufficient supply of seedlings and water,
and, unsurprisingly, hesitant private investors.
To address most of the above barriers to viable Ethiopian pineapple export
chains, SNV BOAM established the pineapple CG. This was an appropriate response;
contact building and networking among chain actors and facilitators is a necessary
condition for a value chain to develop. Given the state of the Ethiopian pineapple
sector, there was a compelling case for establishing the pineapple CG, and the
platform had a number of positive effects.
SNV BOAM has promoted a horizontal discussion structure in the CG.
Whereas the CGs centre of gravity in selection of participants and agenda setting
remained with the leading trio including the CG Facilitator, the VC Leader, and the
SNV BOAM Lead value chain Advisor, with the sitting SNV BOAM programme
coordinator as a significant influencer in the background, interviewees indicate that
in the meetings members have an equal chance to speak out. They also had a say in
the spending of SNV BOAMs funds for the development of the pineapple value
chain.
Nevertheless, the level of engagement by CG participants remained modest.
Commitment tended to be limited to the meetings, and motivations to participate are
merely related to extrinsic factors (business opportunities and incentives by SNV
BOAM). Many organizations attended the meetings irregular, and the network
analysis showed a high rotation of participants; almost 60% of total participants
apparently entered the CG only from meeting three and/or quit the CG as they did
not attend the last two or more meetings. This may be related to broad goal
alignment. The strategic and operational intervention plans were initially less
focussed in the pineapple CG, with too many changes required in the supporting
environment. Several interviewees also pointed to the limited authority, too much
talking and the lack of teeth of the CG. This suggests a basic misunderstanding of
the role and function of the pineapple CG among its members; a multi-stakeholder
platform is supposed to address challenges and bridge divides by dialoguing rather
than by using teeth.
50 | P a g e
Creating local ownership and leadership in the pineapple CG also remained

problematic throughout all five years of its existence. SNV BOAM intends to have a
strong and widely respected buyer leading the CG to ensure a market-driven wind
blowing through the Ethiopian part of the value chain. But finding a private sector
buyer that could lead the CG with the unanimous support of the CG members was
difficult. Some meetings were organized without chain leader, while halfway the CG
process, even the SNV BOAM staff itself disagreed about who should lead the CG.
The chain leader who was eventually chosen lacked full support from other members
and could not develop into a primus inter pares role. The network analysis confirmed
the lack of a central broker.
Much of this was related to what can be considered as the main challenge of
the pineapple CG: the market dominance by a small number of wholesalers. SNV had
tried to get them aboard the CG, also with separate, small group meetings, but the
monopolists, who are associated with the Piazza market disengaged, apparently
because they did not find the platform supporting their own interests. Eventually, the
CG did manage to incorporate Etfruit and Elfora, two other major Ethiopian
wholesalers and the processor Ecopia into its platform, but results in terms of
contracts with producers are still to materialize. For the stakeholder population of
the CG this meant an overrepresentation of producers and chain facilitators and very
few buyers who would know the dynamics in consumer demands and who could lead
the modernization of the Ethiopian pineapple sector. The CG developed itself as an
alternative supplier-driven network that tried to compete with the established
networks of a small number of dominant wholesalers. Instead of bridging divides
between producers and wholesalers, the CG served as a vehicle to break the
oligopsonic68 market structure. If the contacts with the two wholesalers and the
processor bear fruit, the CG may have rendered some positive effects for the two
domestic chains in this respect. As for the fresh pineapple export chain, no prospected
effects can be reported, largely because the CG limits its strategy to the Ethiopian
part of the global value chain. Foreign buyers and the real lead firms in the chain
who also could have market power to undermine local strongholds- can therefore not
be involved.
In respect of the external dynamics, the CG has generated a number of
positive effects on the institutional conditions for upgrading the pineapple sector.
First of all, the CG served as a new, horizontal platform where stakeholders from
different societal sectors in the Ethiopian pineapple chain could meet and discuss in a
rather open atmosphere pressing issues in their sector. In the Ethiopian context that
is an achievement in itself. Interviewees appreciated the opportunities for
networking, and the information they received during the meetings on trainings,
quality issues, and on production and the availability of new pineapple varieties.
Interviewees also gave positive feedback on the business contacts they established
through the CG meetings some new investors were attracted-, and the new
opportunities to export by switching to a new pineapple variety.
For the remainder, the effects were either absent or very limited at best. The
CG did not manage to improve any access to credit and loans that both producers
and processors badly require to modernize the pineapple sector. Banks still hardly
68
An oligopsonic market refers to a situation of a small number of buyers dealing with a large number of
sellers. An oligopolistic market is the opposite: few sellers and many buyers.
51 | P a g e
offer affordable loans to smallholders or SMEs. Predictability of the market has also
hardly improved. Formal and longer term contracts have remained scarce with prices
volatile. The market is still dominated by a small number of buyers that hinder the
market from becoming more competitive. The CG has had no substantial effect on
quality issues; quality standards are absent and farmers have largely remained
unaware of the export potential of their crop. Neither has the CG resulted in more
participants becoming member of new professional organizations.
Overall, our impression is that the CG generated some very useful effects in terms of
bridging some traditional divides and offering opportunities for networking and
knowledge dissemination. Yet, it seems the CG predominantly laid out the
groundwork, with the edifice of a competitive, quality-aware pineapple export sector
still to be built. Major causes of the somewhat slow progress have been the broad
scope of the CG that has been addressing three different pineapple chains, the
overrepresentation of the public sector that tended to slow down change processes,
the CGs national focus that keeps foreign buyers hidden from sight, and the
development of the CG into a competitor network to a small group of monopolist
chain actors. Telling is that SNV BOAM staff members themselves wonder whether
the slow progression was worth the five years of CG investments. On the other hand,
changing business institutions that facilitate trust-building in the production base,
that improve farmers access to capital and technology, and that make markets more
predictable for chain actors is quite a challenge. Inserting an agricultural sector into
the global economy takes time.
52 | P a g e
7. Limitations
As is the inherent problem with any investigation of short duration into a complex
subject, choices had to be made regarding what to take on board and what not. We
experienced a challenge to separate the impact of the multi-stakeholder platform on
any changes in the institutional business environment, apart from the SNV BOAM
programme as a whole or from any other (policy) interventions. Especially when
organisations already have established long term relationships with SNV BOAM, the
clear cut distinction between services provided by SNV BOAM or through the CG is
not easy. This attribution problem is a limitation. It was crucial that we remained
consciousness on this challenge during all the interviews by probing and making
assumptions explicit; however as expected- some interviewees remained having
troubles in making this distinction. In addition, it was questioned whether, for
example, the acquired technology services or credit services were being made
available from inside the chain (by chain actors) or outside the chain (e.g. chain
supporters).
Second, during the field work the researchers operated in close collaboration
with SNV BOAM and were partly dependent on SNV BOAM for their selection of
interviewees. Though this substantially facilitated logistics and minimized nonresponse, such embeddedness holds the risk of losing independency in the eyes of
interviewees. Organisations might shy away from reflecting critically on the
pineapple CG as they fear the continuity of their good relationship with SNV BOAM.
To avoid bias, a stakeholder exiting the CG as a result of a conflict was explicitly
incorporated in the interview sample. Furthermore, the researchers constructed a list
of relevant stakeholders in advance to ensure independent sampling. Finally, in the
beginning of each interview the independent status of the researchers was
emphasized.
Finally, the political context of Ethiopia was not explicitly taken into account
in the primary (interviews) and secondary data collection (desk review), despite its
importance in understanding how MSPs are organised and functioning. There is no
genuine multi-party democracy and tensions and pressures in Ethiopias polities are
growing according to the International Crisis Group report (2009). Furthermore,
Human Rights Watch research (2010: 4) reports that development aid flows
through, and directly supports, a virtual one-party state with a deplorable human
rights record and that the government has used donor-supported programs,
salaries, and training opportunities as political weapons to control the population,
punish dissent, and undermine political opponentsboth real and perceived. Local
officials deny these peoples access to seeds and fertilizer, agricultural land, credit,
food aid, and other resources for development. The researchers have not researched
the impact of this political situation on the data found.
53 | P a g e
8. References
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2005-2010.
Ansell, A. & Gash, C. (2008) Collaborative governance in theory and practice,
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(eds) Partnerships, Governance and Sustainable Development. Reflections on Theory
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Bckstrand, K. (2006) 'Multi-Stakeholder Partnerships for Sustainable Development:
Rethinking Legitimacy, Accountability and Effectiveness', European
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Binabe, E., Coronel, C., Le Coq, J. & Liagre, L. (2004) Linking smallholder farmers to
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projects, final report, The World Bank: Washington, DC.
Bitzer, V., & Glasbergen, P. (2010a) Partnerships for sustainable cotton production:
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facilitate smallholder inclusion in value chains. An exploration of relationships
between partnership types and institutional change. Paper prepared in the
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=en&id=682&catid=8#header.
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Dorward, A., Poole, N., Morrison, J., Kydd, J. & Urey, I. (2003) Markets, Institutions
and Technology: Missing Links in Livelihoods Analysis, Development Policy
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FAO (2003) The world pineapple market: when growth goes hand in hand with
diversity, FAO Committee on Commodity Problems, Intergovernmental
group on bananas and on tropical fruits, Available at
ftp://ftp.fao.org/unfao/bodies/ccp/ba-tf/04/ad627e.pdf.
First Consult (2006) Export Opportunities for Ethiopian Pineapple Products. Prepared
for the Stakeholders of the Pineapple Value Chain Coordination Group.
Glasbergen, P., Biermann, F. & Mol, A.P.J. (eds.)( 2007) Partnerships, Governance and
Sustainable Development: Reflections on Theory and Practice, Cheltemham, UK;
Northampton, USA, Edward Elgar.
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agriculture in Asia and the emergence of vertical links with farmers in J.F.M.
Swinnen (ed.) Global Supply Chains, Standards and the Poor, Oxford, UK: CABI
Publishing, pp. 91-108.
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Hanneman, Robert A. and Mark Riddle (2005) Introduction to social network

methods. Riverside, CA: University of California, Riverside (published in
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Hans Posthumus Consultancy (2008) Roles. In Reader.
Hubert (ed.) Local Enterprises in the Global Economy. Issues of Governance and
Upgrading, Edward Elgar, Cheltenham UK and Northampton, MA, USA, pp.
349-381.
Human Rights Watch (2010). Development Without Freedom. How Aid Underwrites
Repression in Ethiopia. Ethiopia report, USA, October 2010.
Humphrey, John & Schmitz, Hubert (2004) Chain governance and upgrading:
tacking stock. In: Schmitz, Hubert (ed.) Local Enterprises in the Global Economy.
Issues of Governance and Upgrading. Edward Elgar, Cheltenham UK and
Northampton, MA, USA, pp. 349-381.
International Crisis Group (2009) Ethiopia: ethnic federalism and its discontents, Africa
Report N153 - 4 September 2009.
Kilduff, M & Tsai, W. (2003) Social Networks and Organisations, Sage Publications
Ltd, London.
Kolk, A., Van Tulder, R. & Kostwinder, E. (2008) Business and partnerships for
development, European Management Journal 26: 262-73.
Lawrence, T.B., Hardy, C. & Phillips, N. (2002) Institutional effects of interorganisational collaboration: the emergence of proto-institutions, Academy of
Management Journal 45: 281-290.
Markelova, H., Meinzen-Dick, R.S., Hellin, J. & Dohrn, S. (2009) Collective action
for smallholder market access, Food Policy 34(1): 1-7.
OECD (2006) Promoting Pro-Poor Growth Agriculture [online]. Available from:
www.oecd.org/dac/poverty.
O'Rourke, D. (2006) 'Multi-Stakeholder Regulation: Privatizing Or Socializing
Global Labor
Standards?, World Development 34(5), 899-918.
Pay, E. (2009) The market for organic and fair-trade mangoes and pineapples. Study
prepared in the framework of FAO Project GCP/RAF/404/GER: Increasing
incomes and food security of small farmers in West and Central Africa
through exports of organic and fair-trade tropical products, FAO. Available at
http://www.fao.org/fileadmin/templates/organicexports/docs/Market_Orga
nic_FT_Pineapple_Mango.pdf
SNV BOAM Annual reports 2005-2009
SNV BOAM programme proposal 2005-2010
SNV BOAM 2 programme proposal. Up-scaling phase extension 2010-2011
SNV BOAM Coordination Group minutes 1-13 of pineapple
SNV BOAM Biannual Report 2010 to the Embassy of the Kingdom of the
Netherlands
SNV BOAM Fruits Fact sheet
SNV BOAM report Value Chains Identification for Intervention 2005
Springer-Heinze, A. (2007) ValueLinks Manual The methodology of value chain
promotion, Eschborn: German Technical Cooperation Agency (GTZ).
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Van Huijstee, M.M. & Francken, M. (2007) 'Partnerships for Sustainable

Development: A Review of Current Literature', Journal of Integrative
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Van Huis, A., Jiggins, J., Kossou, D., Leeuwis, C., Rling, N., Sakyi-Dawson, O.,
Struik, P.C. & Tossou, R.C. (2007) Can convergence of agricultural sciences
support innovation by resource-poor farmers in Africa? The cases of Benin and
Ghana, International Journal of Agricultural Sustainability 5(2&3): 91-108.
Van Tulder, R. & Pfisterer, S. (2008) From Idea to Partnership: Reviewing the
Effectiveness of Development Partnerships in Zambia, Colombia and Ghana.
Findings from a Review of six Partnerships from a Call for Ideas by DGIS.
Warner, J. F. (2006) More Sustainable Participation? Multi-Stakeholder Platforms
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Hague: Expert Centre for Sustainable Business and Development Cooperation
(ECSAD).
Van Wijk, J.C. & Kwakkenbos, H., (2011) Beer multinationals supporting Africas
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Global Value Chains: The Role of Governance. Forthcoming.
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Inclusive Agrifood Market Development. A guide to multi-stakeholder
processes for linking small-scale producers to modern markets. International
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Development and Institutional Change Program (CD&IC), Wageningen
University and Research Centre, the Netherlands.
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chains: Balancing different factors. Draft.
Website SNV BOAM, http://www.business-ethiopia.com/pineapple.html, Assessed
July 2010.
Website SNV BOAM, http://www.SNV BOAMworld.org/en/Pages/default.aspx,
Assessed July 2010.
World Bank (2008) Agriculture for Development. World Development Report 2008.
The World Bank, Washington, D.C.
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Draft.
56 | P a g e
9. Appendices
Appendix 1: Theoretical model
MSP
VCD
Involvement
Access to capital
Collaborative
variables
Access to technology
Impact
Access to markets
Embeddedness
MSP
57 | P a g e
VCD
Appendix 2: Roles of various stakeholders

Source: (based on) Hans Posthumus Consultancy, 2008
In general we distinguish four types of stakeholders:
1) Chain actors
Chain actors are the prime stakeholders who, at some point in the chain, own the product that is
being created. They commonly buy a semi-finished product from chain actors upstream, add a certain
value to it, and sell the enhanced product to buyers downstream. In the research farmers, producer
firms, cooperatives, processing firms, collectors, traders, exporters etc. are included.
2) Chain supporters
Chain supporters are those that are outside the chain. They supply goods or services to the chain
actors, often they are distinguished as either financial providers (e.g. banks providing loans)
or non-financial service providers (e.g. accountants or transporters). In the research consultants,
BDS providers, quality and standard institutes, microfinance, banks, funds (IMF), and agricultural
research centers (not only temporary, but years of input, extension services, seed inputs etc.) are
included.
3) Chain influencers
Chain influencers are those that influence the performance of the sub sector, its actors and their
supporters. They influence the entire sub sector (and beyond) without performing an actor or
supporters role: influencers (such as the ministry of commerce) determine (partly) the factors (such
as investment climate). In the research business representative associations, Ministries, Chamber of
Commerce, media, government implementing agencies (e.g. Cooperative Bureau, BoFED etc.) are
included.
4) Chain facilitators
A temporary (catalyst) role by an organisation (often a donor funded project) to grease the chain
machinery, either between the actors at the various levels or between the actors and their supporters,
with objective to improve the performance of the entire chain and its actors (also commercially).
Often NGOs with donor funding that finance a diversity of capacity building activities. In the
research SNV BOAM, NGOs, University, and multilateral agencies (UN, WB) are included.
CODING FOR EXCEL
1=chain actor, 2 = chain supporter, 3 = chain influencer, 4 = chain facilitator
58 | P a g e
Appendix 3: Interview schedule/ List of Interviewees

General
June 9 & 10, 2010
Orientation visit69: Mr. Marc Steen, National Portfolio

Coordinator and Head Value Chain Development, Mr. Piet
Visser, learning coordinator for VCD and Mr. Mugessie
Fikri, Monitoring & Evaluation and Documentation, SNV
BOAM Ethiopia, Addis Ababa
August 12, 2010
Discussion Group70: SNV BOAM Ethiopia staff:

presentation research and discussion with Mr. Piet Visser,
learning coordinator for VCD and Lead Advisor pineapple
chain, Mr. Carlo Kuepers, Lead Advisor honey chain &
Senior Advisor Market Linkages & Value Chain
Development, Mr. Mugessie Fikri, Monitoring and
Evaluation, Mr. Yohannes Agonafir, Lead Advisor oil
seeds chain, Mrs. Mahlet Yohannes, Lead Advisor dairy
chain, Nicholas Nyathi, program coordinator PSNP Plus
program, Meskerem Shifera, BDS Development and
Elenie Abraham, junior advisor, oil seeds and VCF
September 9, 2010
Short progress discussion with SNV BOAM staff: Mr.

Piet Visser, learning coordinator for VCD, Mr. Juergen
Greiling, Senior Advisor Agroprocessing, Mr. Mugessie
Fikri, Monitoring and Evaluation, Mr. Yohannes
Agonafir, Lead Advisor oil seeds chain, and Meskerem
Shifera, BDS Development
November 8, 2010
Clarification meeting and feedback from Mr. Piet Visser,

learning coordinator for VCD and Lead Advisor pineapple
value chain
November 9, 2010
14th Coordination Group Meeting Pineapple Value

Chain
November 12, 2010
Field visit with Mr. Dejene Indeshaw, Agronomist,

Chucko Woreda Agricultural Office. The visit included
Ganbela nursery site (capacity: 43,000 pineapple
seedlings), a private pineapple farm in Didiche and the
Safa Cooperative office, together with Mr. Melese Mekuria
69
By Mr. Jeroen van Wijk (MSM) at SNV BOAM head office (Addis Ababa).
By Ms. Sarah Drost (MSM) & Mr. Fenta Mandefro Abate (Addis Ababa University) at SNV BOAMs head
office (Addis Ababa) (continuing for all interviews).
70
59 | P a g e
Pineapple Value Chain interviewees

Mr. Adissu Amona, Credit Officer, Development Bank of Ethiopia, November 10,
2010
Mr. Solomon Assefa, Technologist, Micro and Small) Enterprises Development
Agency and Focal Person for SNV BOAM Ethiopia, and Mr. Haile Getachew,
Generalist, (Micro and Small) Enterprises Development Agency ((MS)EDA),
November 10, 2010
Mr. Dendena Chemeda, Head of the Agro-Processing Industry Development
Department and Mr. Zergaw Zeleke, team coordinator of that same Department of
the Ministry of Industry and Trade (MOTI), August 30, 2010
Mr. Henok Debessay, Species Diversification, Extension Marketing & Department
Head, Mekelle Institute of Technology, Tissue Culture Laboratory, November 9,
2010
Mr. Mengistu Kebede, General Manager, Ethiopian Fruit and Vegetable Marketing
Share Company (ETFRUIT), November 17, 2010
Mr. Berkanu Asfaw Klegbeza, Cooperative Promotion Monitoring and Evaluation
Officer, Cooperative Promotion Bureau, November 9, 2010
Mr. Melese Mekuria, Treasurer (previously Chairman), Safa Cooperative, November
9, 2010
Mr. Yilma Nadew, Vice Manager, Dibabesh PLC, and Coordination Group Leader in
the pineapple value chain Coordination Group meetings 8-14, November 9, 2010
Mr. Wondyifraw Tefera, Director, Jimma Agricultural Research Centre (JARC),
November 12, 2010
Mrs. Rutha Tsegai, Manager, Ecological Products of Ethiopia (ECOPIA) PLC,
November 16, 2010
Mr. Piet Visser, Learning Coordinator for VCD and Value Chain Advisor Pineapple
Coordination Group Meetings, SNV BOAM Ethiopia, November 18, 2010
Mr. Timerge Yirga, Investment Land Delivery Expert, SNNPRS Investment
Agency, November 10, 2010
Mr. Afework Yohannes and Mr. Michael Yohannes, Managing Director, Consulting
Management Business Creation and Development Services (BCaD) and Coordination
Group Facilitators in the pineapple, honey and oil seeds Coordination Group, August
25, 2010
60 | P a g e
Appendix 4: Questionnaire
Context
Multi-stakeholder platforms (MSPs) are increasingly recognized by researchers and
practitioners as promising mechanisms for stimulating economies in developing
countries. The so-called chain platforms can help to bring actors, operating directly
or indirectly in the chain, together and realise common objectives through dialogue
and cooperation. However, systematic research on their effectiveness and impact is
scarce. Therefore, SNV BOAM Ethiopia and the Maastricht School of Management
(MSM) / Partnerships Resource Centre (PrC) have embarked on a collaborative
effort to evaluate a number of MSPs in which SNV BOAM Ethiopia is involved.
MSM carries the responsibility for the research and final report.
SNV71 is a non-profit, international development organisation, with extensive handson experience in their value chain approach. MSMs Sustainable Development
Center72 stands for expertise on sustainable economic development in emerging
markets. MSM is partner in the Partnerships Resource Centre73, an open centre
where academics, practitioners and students can create, retrieve and share knowledge
on cross sector partnerships for sustainable development.
Interview objectives
This questionnaire serves to structure a series of interviews that will be conducted
with actors in a selection of value chain Coordination Groups (CGs) in Ethiopa.
Selected are CGs in four chains: honey & beeswax, dairy, oil seeds, and pineapple.
The interview results will serve as the main input for an evaluation report that is due
for 1st of February 2011. The results will be presented and discussed during a
workshop in spring 2011.
About the questionnaire
The interview consists of three parts. Section A focuses on the (meetings of the)
Coordination Group itself. Section B concentrates on the institutional changes
brought about by the CG, whereas the last section C asks about your overall opinion
of the CG.
Contact:
For questions and additional information please contact
Ms. Sarah Drost, MSc.
Sustainable Development Center
Maastricht School of Management
71
SNV BOAM Ethiopia: www.SNV BOAMworld.org/en/countries/ethiopia/Pages/default.aspx
72
MSM - SDC: www.msm.nl/1/1/uk/research/sustainable_development_center/
73
PrC: www.erim.eur.nl/ERIM/Research/Centres/SCOPE/Partnerships_Resource_Centre/About
61 | P a g e
Email: [email protected]
Identification
Name interviewee(s):
Organisation:
Position:
Location:
Interviewer:
Date of interview:
Place of interview:
What are the main activities of your organisation in this value chain?
62 | P a g e
A Coordination Group (CG)

A1. General introduction
1. What is the main problem in the apiculture/dairy/horticulture/oil seeds sector,
according to you?
A2. Engagement
2. In what way are you/is your organisation engaged in the CG? (describe activities
and roles: e.g., Facilitator, Leader, advisor, member of committee/working group)
3. Since when are you involved in the CG meetings? (reasons for prolonged stay or
exit)
4. What motivated your organisation to join the CG? (e.g. daily allowance, influence,
networking opportunities?)
5. Do you feel all relevant stakeholders are represented in the CG? Why?
6. How would you evaluate the level of commitment of CG members?
A. Low
B. Modest
C. High
Please explain
A3. CG Governance
7. Do you feel all CG members have an equal say during the CG meetings?
A. Yes
B. No. Who are the dominant members?)
8. Do you feel that all members benefit equally of the CG interventions? (win-win
situation or not?
A. Yes
B. No. Who gains most?).
9. Are you generally satisfied with the way the CG meetings are being governed?
A. No
B. Yes, but only modestly
C. Yes, significantly
Please explain. What should change?
[Honey]
H.1 What is your opinion about the Ethiopian Apiculture Board (EAB) and its
regional chapters?
63 | P a g e
[Dairy]
D.1 What is your opinion about the Ethiopian Milk and Milk Products Association
(EMPPA)?
D.2 What is your opinion about the Dairy Business Hub Model established in
meeting 16?
[Oil seeds]
O.1 What is your opinion about the Ethiopian Pulses, Oil seeds, and Spices
Processors Exporters Association (EPOSPEA)?
B Issues addressed by the CG
10. Did you exchange contact information with other CG members? Has this lead to
concrete actions/funding/other opportunities in your field of activities?
B1. Access to services
11. Do you require specific information, technology or organisational services, for
example to meet quality standards, to increase productivity, or to improve your
management skills?
A. No
Please explain what type of services.
12. Have you been able to acquire sufficient service support?

A. No
Please explain by whom and in what form?
13. Did the CG improve the availability of these services to you?

A. No or almost not
B. Yes but only modestly
Please explain.
B2. Access to capital/credit

14. How difficult is it for you to acquire a loan/credit/budget for making investments
in your organisation (e.g. through financial institute or through B2B relations).
A. Not difficult
B. Sometimes difficult
C. Very difficult
Please explain.
15. Did the CG influence your opportunities to obtain a loan, credit, or additional
budget?
A. No or almost not
64 | P a g e
Please explain.
B3. Access to markets

(a) Prices
15. How would you evaluate prices paid to the producers in the last 3 years (stability,
highness, pre-harvest price set)?
16. Did the CG influence prices (stability and level) paid to farmers?
A. No or almost not
Please explain.
(b) Buyer / producer commitment

17. Do buyers commit themselves to producers to buy their produce in advance of the
production cycle (provided that quality conditions are met)?
A. No
B. Yes
Please explain.
18. In case of a contractual arrangement, do you think producers perform well in

responding to buyers requirements in terms of: delivery, punctuality of delivery,
quality, and flexibility?
A. No or almost not
Please explain.
19. Do producers have alternative market opportunities? Which ones?

If yes, what are the benefits of these alternatives for producers?
20. Did the CG contribute to improvement of contractual arrangements between
producers and buyers?
A. No or almost not
Please explain.
B4. Access to organisation

21. Are you a member of a professional organisation/platform? If yes, which?
22. Did the CG contribute to the formation of this professional organisation?
A. No or almost not
Please explain.
23. Did the CG contribute to your access to your professional organisation?

A. No or almost not
65 | P a g e

Please explain.
B5. Institutional environment (legal, government policy)

24. Which are the (three) main legal/policy constraints that you have to cope with in
the supply chain?
25. Did the CG contribute to solve these constraints?
A. No or almost not
Please explain.
C. Future and overall opinion of the CG

26. In your opinion, has the CG, overall, been a success?
A. No or almost not
Please explain (which are the main successes, failures, weaknesses, strengths)?
27. How could the CG play a bigger role for you? (i.e. really addressing their
issue?/partnerships possibilities).
28. Do you feel that CG is recognized as an important governance mechanism by the

stakeholders in this value chain?
A. No or almost not
Please explain
29. Future scenario: What are, in your opinion, the future prospects of the CG after
the BOAM programme has finished?
30. What would be necessary, apart from the CG, to tackle the problems in your
sector?
Thank you for your time and collaboration.
66 | P a g e
Appendix pineapple: Conditions for upgrading (scored by the respondent)

-/+
+
No effect of CG
Limited positive effect of CG
Considerable positive effect of CG
Access to knowledge & technology

Availability of Smooth Cayenne/MD2 variety?
Shift from Red Spanish variety to Smooth Cayenne/MD2 variety?
Availability and use of Tissue Culture (TC) instead of conventional way?
Training (planting material propagation, farm management) to farmers
Reduction of use of pesticides
Farmer awareness on quality
Other (please fill in)
Access to affordable credit
Banks/MFIs are more willing to lend
Buyer firms (B2B) are more willing to lend
Other institutes more willing to lend
Access to markets
Increase prices paid by the buyer
Advanced payments
Annual pre-price guarantees
Access to organisation (e.g. FBO, forum, representative agency)
Access to institutional (legal, policy) environment
Policy/legal constraints:
Addressed?
67 | P a g e
Appendix 5: Course ratio pineapple CG

category frequence of meeting visits
type of organisation
present & stay
present & exit
entry & stay
entry & exit
type
number
number
number
number
number
Private sector
Government
Education
Civil Society
Unknown
0
0
0
0
0
0
0,0
0,0
0,0
0,0
0,0
0,0
0
0
0
0
0
0
0,0
0,0
0,0
0,0
0,0
0,0
0
0
0
0
0
0
0,0
0,0
0,0
0,0
0,0
0
0
0
0
0
0
0
0,0
0,0
0,0
0,0
0,0
0
0
0
0
0
0
0
0,0
0,0
0,0
0,0
0,0
0
Private sector
Government
Education
Civil Society
Unknown
2
0
1
0
0
3
2,5
0,0
1,3
0,0
0,0
3,8
2
0
1
0
0
3
2,5
0,0
1,3
0,0
0,0
3,8
0
0
0
0
0
0
0,0
0,0
0,0
0,0
0,0
0,0
0
0
0
0
0
0
0,0
0,0
0,0
0,0
0,0
0,0
0
0
0
0
0
0
0,0
0,0
0,0
0,0
0,0
0,0
Private sector
Government
Education
Civil Society
Unknown
18
11
5
4
0
38
22,5
13,8
6,3
5,0
0,0
47,5
3
4
2
1
0
10
3,8
5,0
2,5
1,3
0,0
12,5
2
2
2
0
0
6
2,5
2,5
2,5
0,0
0,0
7,5
10
2
1
2
0
15
12,5
2,5
1,3
2,5
0,0
18,8
3
3
0
1
0
7
3,8
3,8
0,0
1,3
0,0
8,8
Private sector
Government
Education
Civil Society
Unknown
total at random visitors
27
9
2
1
0
39
33,8
11,3
2,5
1,3
0,0
48,8
0
0
0
0
0
0
0,0
0,0
0,0
0,0
0,0
0,0
5
3
1
1
0
10
6,3
3,8
1,3
1,3
0,0
12,5
2
3
0
0
0
5
2,5
3,8
0,0
0,0
0,0
6,3
20
3
1
0
0
24
25,0
3,8
1,3
0,0
0,0
30,0
total private sector

total government
total education
total civil society
total unknown
total all categories
47
20
8
5
0
80
58,8
25,0
10,0
6,3
0,0
100,0
5
4
3
1
0
13
6,3
5,0
3,8
1,3
0,0
16,3
7
5
3
1
0
16
8,8
6,3
3,8
1,3
0,0
20
12
5
1
2
0
20
15,0
6,3
1,3
2,5
0,0
25,0
23
6
1
1
0
31
28,8
7,5
1,3
1,3
0,0
38,8
core visitor
total core visitors
regular visitors
total regular visitors
irregular visitors
total irregular visitors
at random visitors
Pineapple: category timing of visits

present & stay = present at CG1 and/or CG2 AND CG12 and/or CG13
present & exit = present at CG1 and/or CG2; last visit at CG11 or earlier
entry & stay = first visit CG3 or later; present at CG12 and/or CG13
entry & exit = first visit at CG3 or later; last visit at CG11 or earlier
Pineapple: category frequency of meeting visits
core visitor = present at all meetings (13)
regular visitor = present at 11 or 12 meetings
irregular visitor = present at least at 3 meetings with maximum presence of 10 meetings
at random visitor = present at 0, 1 or 2 meetings
68 | P a g e
Appendix 6: Betweenness centrality pineapple CG

Table 1 Top-10 central players in the pineapple CG
Name
Normalised
Type of
Betweenness
Organisation
Centrality
(64) Southern
3.715
Education
Agricultural
Research Institute
(SARI)
(15) BoFED,
3.651
Government
SNNPR
Subtype
Research
institute
Stakeholde
r role
within VC
Supporter
Regional /
Local
government
NGO / NGO
network
Business
representative
body /
Cooperative
Business
development
service
provider
Research
institute
Influencer
(75) SNV BOAM
3.555
Civil society
(78) Tesso
Farmers'
Cooperative
2.946
Private sector
(9) BCaD (Chain

Facilitators)
2.601
Private sector
(46) International
Livestock Research
Institute (ILRI)
(31) Ethiopian
Fruit & Vegetable
Marketing Share
Company
(ETFRUIT)
(71) SNNPRS
Cooperative
Promotion Bureau
(58) Ministry of
Trade and Industry
(MOTI)
(73) SNNPRS
Micro & Small
Enterprises
Development
Agency (MSEDA)
2.084
Education
2.034
Private sector
Wholesaler
Actor
1.872
Government
Influencer
1.752
Government
1.499
Government
Regional /
Local
government
National
government /
Ministry
Regional /
Local
government
Table 2 Central players in pineapple CG with betweenness centrality > 2

Name
Normalised
Type of
Subtype
Betweenness
Organisation
Centrality
69 | P a g e
Facilitator
Actor
Supporter
Supporter
Influencer
Influencer
Stakeholde
r role
within VC
(64)Southern
Agricultural
Research Institute
(SARI)
(15) BoFED,
SNNPR
3.715
Education
Research
institute
Supporter
3.651
Government
Influencer
(75) SNV BOAM
3.555
Civil society
(78) Tesso
Farmers'
Cooperative
2.946
Private sector
(9) BCaD
(Chain
Facilitators)
2.601
Private sector
(46) International
Livestock Research
Institute (ILRI)
(31) Ethiopian
Fruit & Vegetable
Marketing Share
Company
(ETFRUIT)
2.084
Education
Regional /
Local
government
NGO / NGO
network
Business
representative
body /
Cooperative
Business
development
service
provider
Research
institute
2.034
Private sector
Wholesaler
Actor
Table 3 Central players in pineapple CG with betweenness centrality 3

Name
Normalised
Type of
Subtype
Betweenness
Organisation
Centrality
(64) SARI
3.715
Education
Research
institute
(15) BoFED,
3.651
Government
Regional /
SNNPR
Local
government
(75) SNV BOAM
3.555
Civil society
NGO / NGO
network
70 | P a g e
Facilitator
Actor
Supporter
Supporter
Stakeholde
r role
within VC
Supporter
Influencer
Facilitator

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Partnerships Resource Centre/SDC-Maastricht School of Management

Multi-Stakeholder Platform Contribution

Sarah Drost, Maastricht School of Management

Final Case Study Report

Addis Ababa Chamber of Commerce Sectoral Association

1.2 Theoretical background

and adopted by other organisations in the field: they become proto-institutions.

develop capacity in terms of supplying volumes and quality, and guaranteeing

A database was constructed that scores the participation of each organisation

2. Context of the case study

CG3 meeting minutes.

Picture: processed (sliced) pineapples in small shop in Chucko (SNNPRS, Ethiopia)

(b) Ethiopian pineapple market

SNV BOAM Annual Report 2009.

(c) Pineapple value chain map

(d) Constraints in the pineapple sector

CG9 meeting minutes.

Piazza is the main market in Addis Ababa, and in Ethiopia in general.

Production related issues

Processing/exporting related issues

(e) SNV strategy in the BOAM framework

Picture: Pineapple CG meeting 14 in Awassa

2.2 The Pineapple Coordination Group

Research institutes such as the

Technology/Tissue Culture (TC) Laboratory;

3. Pineapple Coordination Group Dynamics

3.1.1 Level of engagement

Table 4. Level of commitment evaluated

Source: interview data

CG3 meeting minutes.

The social network analysis confirms that:

Source: interview data

Financial ownership was created, to variable degree, as the following shows.

CG13 meeting minutes.

strengthening of the southern regional Micro and Small Enterprise Development

Discussion group SNV BOAM, August 12, 2010.

Table 9. Equal benefits

(e) Distribution of benefits

CG5 and 7 meeting minutes.

SNV BOAM is a central network player in the pineapple CG (Appendix

The cut-points 2 and 3 are arbitrary

CG3 meeting minutes.

CG10 meeting minutes.

Picture: employee Chucko Woreda Agricultural Office (Ethiopia) in pineapple field

(e) SNV BOAMs network

There is a relative overrepresentation (compared to the other CGs) of the

Source: interview data

SNV BOAM Annual Report 2009.

(b) Participation in CG related committees

SNV BOAM Annual Report 2009.

Table 14. Pineapple CG Ethiopia: internal and external dynamics

Roles & Contrib.

Modest. High in meetings, low/absent in implementation

Yes. Several members involved in other (BOAM) MSPs. Mango

TC culture instead of conventional

4.2 Access to capital

Willingness banks/MFIs to finance

4.3 Access to markets

Increased prices paid by buyers