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Value chain analysis faba bean in the central highlands of Amhara region
Ethiopia: The case of Bassonawerana and Tarimaber districts

Article · August 2022

DOI: 10.14303/jribm.2022.017

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 Journal of Research in International Business and Management (ISSN: 2251-0028)
Vol. 9(4) pp. 01-010, August, 2022
Available online @ https://www.interesjournals.org/research-international-business-
management.html
DOI: http:/dx.doi.org/10.14303//jribm.2022.017
Copyright ©2022 International Research Journals

Research Artice

Value chain analysis faba bean in the central

highlands of Amhara region Ethiopia: The case of
Bassonawerana and Tarimaber districts
Abiro Tigabie*, Dejene Mamo and Degu Temeche
Debre Birhan Agricultural Research Center, Ethiopia
E-mail: [email protected]

Abstract
Faba bean is one of the major pulse crops grown in the study areas with a considerable share in area coverage and volume of
production. The purpose of this study was to identify the production status and the major value chain actors with their roles
along the value chain. Data was collected by using quantitative and qualitative ways of individual interviews, focus group
discussions, and key informant interviews from 550 smallholder farmers and 54 other value chain actors. A descriptive
method like frequency, mean, and percentage was used. Actors and activity mapping, value chain mapping, and market
governance methods were also employed. Farmers produced faba beans to generate cash income. Production and volume
of supply trends for faba bean become declined due to biotic and abiotic factors. The value chain actors are governed from
input supply up to final consumption through various value addition processes. Smallholder farmers performed a vital
role in the production and marketing of the commodity. Retailers contributed a large share of market governance while
processors earned a high-profit margin in the value chain process. Low investment for faba bean production contributed
to low productivity and the poor quality of the produces which affected the desired demand. The grain price variations
throughout the year resulted in inconsistent supply. Establishing and strengthening partnership linkage along the value chain
actors will improve the farmers' production and supply of faba beans. Improving farmers’ and extension workers' awareness
will improve the quality and volume of product supply to the market.
Keywords: Analysis, Faba bean, Value chain

INTRODUCTION facilities, infrastructures (Feder, 1980). This inefficient

and low supply of agricultural products creates the new
Ethiopia has been followed an agriculture development- driver of consumer demand, as mediated by the large scale
led industrialization policy. Agricultural products are downstream of buyers and retailers. There is an emergent
subsistence agriculture (World Bank, 2004). So, different phenomenon of market concentration, in the input
theoretical kinds of literature and practical works indicated supply industry, agro-processing, and in the retail, market
having an efficient domestic agricultural commodity segments while the agriculture market is fragmented.
marketing system plays a major role in accelerating There is also the risk of supermarket chains progressively
the growth and development of the sector. Besides, it “crowding out” the informal agricultural markets that need
makes the participants in the market chain such as input to be acknowledged and mitigated (Christy et al., 2009).
suppliers, producers, processors, traders, and consumers’ Pulses occupied approximately 13 percent of cultivated
beneficiaries as per their role and efforts exerted in the land and account for approximately 10 percent of the
system (Mohammed & Muhammed, 2015). Farmers agricultural value addition which is critical to smallholder
face incomplete transition and inefficient suppliers of livelihoods in Ethiopia as a source of cash income and
agricultural products due to lack of information, market household consumption (Yirga et al., 2019).

Received: 05-Aug-2022, Manuscript No. JRIBM-22-72200; Editor assigned: 08-Aug-2022, PreQC No. JRIBM-22- 72200(PQ); Reviewed: 22-
Aug-2022, QC No. JRIBM-22-72200; Revised: 23-Aug-2022, Manuscript No. JRIBM-22- 72200(R); Published: 29-Aug-2022

Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.
2 Int. Res. J. Busin. Manag.

Faba bean Production Whereas in Bassonawerana faba bean producer farmers

allocated their farmlands for the same crop areas share of
According to CSA food legumes are widely cultivated 35% of their farmlands.
in potential mid and high-altitude areas of the country
characterized by elevations of 1800-3000 meters above sea Faba bean marketing and
level and receiving annual rainfall of 700-1100 mm. food
legumes grow in several ecologies of geographical areas of consumption
Ethiopia including Arsi and Bale highlands, Central highlands The marketing of agricultural commodities differs according
of Ethiopia (South-West, West, and North Showa), Tigray, to the commodity, the system of production, the culture
North, and South Wollo, North and South Gondar, East and traditions of producers and traders, and the level
and West part of Gojam, Wollega, Guji highlands, Hadiya, of development of the country and the sector within the
Sidama and Gamo gofa. Yankson et al (2016) stated that country (Scott, 1995). Marketing for agricultural products is
as one of the top-performing crops under global warming important in the creation of various types of the utility of
and climate change because of its distinctive capability to place utility, form utility, time utility, and possession utility
excel under most types of climatic situations and broad (Hasan et al., 2017). Faba beans also contributed to good
adaptability to a range of soil environments. In addition, sources of currency to the farmers and generate foreign
it refills soil fertility as it fixes considerable amounts of exchange for the national economy of Ethiopia. Therefore,
atmospheric nitrogen, thereby notably adding to system studying the agricultural value chain system for faba bean
sustainability in rotation with cereals. Faba bean Vicia fava calls for an understanding of the commodity to take some
is one of the earliest domesticated food legumes in the measures in a way that improves its efficiency. A well-
world, probably in the late Neolithic period. The crop has a developed market for food crops in developing countries
multi-use and is consumed as dry seeds, green vegetables, like Ethiopia provides access to consumers who depend on
or processed food. Its products are a rich source of high- the market for their food supplies and to farmers, who need
quality protein in the human diet, while its dry seeds, to shift from subsistence to market-oriented production
green haulm, and dry straw are used as animal nourishes (Ebbersten, 1983). The transformation of the production
(Sainte, 2011). Faba bean is mainly used as human food in system for domestic and export agricultural commodities
developing and as animal feed in industrialized countries. requires the existence of an efficient marketing system that
Ethiopia is one of the world’s foremost producing countries can transfer the produced agricultural commodities from
next to China which accounted for about 56% of faba bean the point of production to the required market with the
production from Africa (FAOSTAT). Faba bean is among least possible cost. In 2015 Ethiopia is the second in Africa
the most important pulse crop in the highlands and mid- and the tenth world largest exporter of pulses crops. Nearly
highlands of Ethiopia. It was the first crop among the 16% of Ethiopian pulses were exported by pulses exporters
pulses grown in the country both in terms of area coverage of US$ 240 million in 2015. Which is 2.2% of world exports
and volume of annual production. food legumes occupied with an annual growth rate of 16% (Atnaf et al., 2015). The
about 443,107.88 hectares of land with an annual national production system of this potential crop predominantly
production of 8,389,438.97 tones with an average yield of shared a high rate of farmlands and production volume in
1893 kg ha-1(CSA). In Ethiopia, the average yield of faba the study areas did not study yet. The value chain and the
bean under small-holder farmers is not more than 1.89 t market governance of the actors for faba bean crop did
ha-1 (CSA), despite the availability of high yielding varieties not address in the study areas. Based on these reasons and
yielding over 2 t/ha). Faba bean production is insufficient suitable agroecology of the areas to improve its potential this
because crop yields are low as a result of farmers' growing study is very essential and should be addressed. Therefore,
local varieties that are susceptible to diseases, insect pests, this study was conducted to identify the potential actors of
drought, and high summer temperatures (ICARDA). Faba faba bean and their market power relationships in North
bean grows in highland and mid-altitude areas of north shewa highlands, to assess the economic performance and
Shewa under rain-fed and irrigation. Faba bean serves in the market participation status of value chain actors, and to
farming system for crop rotation purposes with cereal crops evaluate the market decision power relationship of different
especially wheat, and barley. Farmers are highly demanding value chain actors (Yankson et al., 2016).
better yielding varieties to maximize their productivity Value chain analysis is a better alternative approach to
and improve the livelihoods of their families. In the study conventional marketing to understand the determinants of
areas, farmers allocated a large share of their farmlands to producers’ market orientation. It also enables researchers
produce faba beans. According to the offices of agriculture to analyze the different actors and their roles in the value
reports, faba bean is the most important field crop grown chain; benefit shares among the actors and the intrinsic
by the farmers in the study areas. In Tarimaber farmers need for upgrading the chain. Though there were similar
allocated 30% of their farmlands for faba bean production. findings in the study areas, it did not focus on faba bean

Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.
 Tigabie A, et al. 3

and was more general in its approach. This entails a need for a Data collection and sampling procedure: Cross-sectional
more comprehensive study that thoroughly analyzes the faba data were gathered in three distinct ways of individual
bean value chain in the study area. Therefore, in this paper, interview, key informant interview, and focus group
we analyze faba bean value chain with the specific objectives discussions. Producer data were collected from 550
of assessing factors affecting faba bean producers market randomly selected producer farmers based on the
orientation; identifying the major faba bean value chain actors, probability of proportionality. The farmers were selected
their roles and benefit shares; and analyzing constraints and from the respected areas using Cochran (1977) formula of:
opportunities along faba bean value chain in the north shewa
z 2 * p (1 − p)
zone of Amhara, Ethiopia (Qualset, 1975). = n − − − − − − − −(1)
e2
Data and Methodology Where n = the sample size, z2 = the abscissa of the normal
Area description and sampling procedure: The study areas curve that cuts of an area α at the tails (1-α) equals the
were selected purposively in which the land allocated for desired confidence level of 95%, the area under the normal
faba bean production has a large proportion. Bassonaworena curve i.e. z= 1.96, P is expected prevalence of proportion. e
and Tamaber woredas (Figure 1) are adjacent in location and is an acceptable sampling error hence is 5%. In this study,
found in the North shewa Zone of Amhara Region. Located P=6.25%, N=3437, Z=1.96 with 95% confidence interval.
130 km North-East of Addis Ababa the capital city of Ethiopia. Value chain mapping relationship was set using 30 key
Most parts of these weredas are characterized as high lands informant farmers who have experiences in the production
and moist weather in wet seasons having moderate rainfall of faba bean representing all socio-economic classes of age,
distribution with semi bimodal rainfall patterns. They wealth, sex, and other social classifications and 24 small
received an average rainfall of 929 mm per annum. with grain traders, processors, retailers, and extension workers
cold annual maximum and minimum temperature of 21.4 from offices of agriculture and NGOs involved in two
and 9.0°C. Light soils are the dominant soil type in the areas different groups set from each district for the focus group
(Woreda Office of Agriculture unpublished and undated discussions.
document). The crops widely grown in the highlands of the
study areas include barley, faba bean, wheat, and field pea The two groups were discussed independently, and data
(ibid). The altitudes of the woredas relatively similar ranged were gathered from both groups based on the checklists
from 2400 up to 3100 masl for all intervention areas (ibid). developed. The producer groups were discussed the
The irrigation system is a little bit found in some areas of production and marketing practices, market channels,
the areas used to produce vegetable crops. The areas are challenges, and opportunities of faba bean production in
characterized as high lands predominantly with barley faba their respective areas with the community level and their
bean farming systems. own experiences and exposures. While the processors,

Figure 1. Maps of the study area.

Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.
 4 Int. Res. J. Busin. Manag.

traders, and facilitator groups discussed the supply and age, family size, level of education, farming experience,
demand gaps, the services provided, the market prices and access to extension service. The result showed the
at different levels, faba bean supply trends, and the proportion of female-headed households constituted about
challenges. Finally, value-chain in-depth interviews were 20% of the total sample households and the balance was
conducted, and value chain actors come to a consensus in their counterparts. Households' important characteristics
the workshop. After the workshop, we had enough insight that describe the compositions age, education status, family
into the general functioning of the value chain and identified size, and farming experiences can determine agricultural
key actors. Additional interviews were conducted with key production activities in the agrarian family and provide a clue
informants. These three ways of data collected from the to the structure of the sample and the population too. The
producers, key informants, and focus group discussants mean age of the household head was about 43.9 years. The
were set and categorized for analysis. average family size of the households was estimated at 5.24.
The study areas have a potential for short (Belig) and main
Data analysis
seasons rain access for crop production and irrigation potential
Descriptive statistics of mean, frequency, percentage were during the off-season. This helps the farmers to produce
employed to describe the socioeconomic variables, as well different agricultural products throughout the year. All farmers
as production and market transactions activities. To analyze produce agricultural products including faba bean in the main
the marketing performance of the actors involved in the value season and more than half of them participated in belig (short
chain of malt barley, similar steps used by Tegegn was followed. rainy) season. The average year of production experience in
Marketing margin was calculated by taking the difference the main season was 19.5 years with low years of experience in
between faba bean producers’ price and retail price. This was the irrigation system production practices (Table 1).
calculated mathematically as, the ratio of producers’ price to Landholdings and land use
consumers’ price as expressed in Equation 2:
Pr oducer price Marketing m arg in The average size of land and types of land used by farmers
Pr=
oducers share = 1- - - - - - - - -(2)
Consumer price Consumer price in the study areas are illustrated in table 2. In this study,
farmers had an average of 1.3 + 2.97 ha of land. Of which,
We compute Gross Marketing Margin (GMM) with Net
farmers have used 1.05 + 1.06 ha for crop production and
Marketing Margin (NMM). According to Mendoza (1995)
0.24+0.06 ha for grazing and forage development. The
“marketing margins” should be understood as the gross
farmland was covered by different crops of faba bean and
marketing margins. Gross marketing margin is calculated as other crops. The average area of land covered by faba bean
equnation 3. per household in ha indicated was 0.35 + 0.25 ha. Very small
Consumer price − Producer price
TGMM
Consumer price
*100 − − − − − − − − − − − − − − − (4) hectares of land are used for homestead and other purposes.
A large share of land is allocated for crop production
Total Gross Marketing Margin (TGMM) is important to purposes compared to others followed by grazing and tree
analyses the margins and is given by the difference between plantation purposes. Since the area is a milk shed for dairy
producers (farmers) price and the consumers' price and is products and good market access for milk farmers allocated
calculated as equation 4. their land for livestock forage production. Tree plantation
Consumer price − Producer price
TGMM
Consumer price
*100 − − − − − − − − − − − − − − − (4) is now other sources of cash and farmers grow trees on
farmlands for cash generation (Table 2).
The benefit share of an actor (j) is computed from TGMM of
the actor at that stage and is calculated as given in Equation 5. Faba bean production practices and area share of
SPj − PPj crops grown
GMM j
= *100 − − − − − − − − − − − − − − − (5)
TGMM Production practices: The area is characterized as a barley-
Where SPj is the selling price at the jth stage and PPj is the faba bean production system. Only thirty percent of the
purchase price at the jth stage. growers used an improved faba bean production system.
80% of the producers applied Broad Bed Furrow (BBF)
Value chain mapping, actors and activity mapping matrix, methods for drainage of excess water for crop production.
and market governance methods were used to identify the There were no such improved production practices
actors’ involvement in the value chain. implemented in the study areas that contribute to yield
improvement during the study time. Farmers did not apply
RESULTS modern agricultural practices, like proper crop rotation
system, use of the improved seed, weed management
Socio-economic characteristics practices, soil fertility improvement practices, application
The most common household characteristics important for of seed cleaning practices, and use of appropriate seed and
agricultural activities identified in this study included sex, fertilizer rates (Table 3).

Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.
 Tigabie A, et al. 5

Table 1. Socioeconomic chrematistics of households.

Variables N %
Sex
Male 440 80
Female 110 20
N Mean Std. D
Age 550 43.89 12.3
Literacy rate 550 3.15 3.38
Family size 550 5.24 2.05
Farming experience in the main season 550 19.5 12.56
Farming experience in bulge season 329 19.31 12.02
Farming experience using irrigation 129 13.88 11.97

Source: Author’s survey in the 2014 year

Table 2. Landholding and uses of the land.

Number of plots allocated for N Mean Std. Dev.
Crop production 549 1.05 1.06
Area share of faba bean from cropland 317 0.35 0.25
Grazing and forage development 180 0.24 0.06
Tree plantation 120 0.14 0.04
Homestead 549 0.001 0.00
For other 120 0.17 0.16
Average land holding / ha 550 1.34 2.97

Source own data manipulations

Improved faba bean varieties under production and the importance of faba beans. The participants explained
There is a good future domestic market potential for faba that over the past 5 years the status indicated continuous
bean. The major faba bean production challenges in the study changes in area coverage, the volume of production, and
areas included low productivity, disease, frost, and lack of productivity of major crops. Farmland is shifted from faba
early matured varieties. Farmers are interested in different bean to malt barley production and the area coverage of
varieties based on their preferences. They preferred high faba bean become declined. Smallholder farmers perceived
yielder varieties for high potential areas and early matured that pulse crops including faba bean have the benefits of
varieties for frost-prone areas. The faba bean varieties under improving food security, as an affordable source of protein,
production in the study areas included Wolkie and Gebelicho. it requires low input and labor demand and costs compared
Wilkie variety selected by the producers for yield compared to cereals. A small amount of chemical fertilizer is enough to
with Gebelicho and local variety preferred as a second produce faba bean. Faba bean can have an income benefit
alternative for its adaptability (Figure 2). for smallholders, both in terms of crop diversification and
high-profit margins compared to cereals, and contribute
Yield gap sources
to improving soil fertility. The production trend of faba
75% of the areas applied fertilizers with a low rate of application bean varied resulted from different reasons of challenges
for other crops. Faba bean gall disease infestation affected the like disease and insect pest problems and lack of available
quality and quantity of production. There is low faba bean gall opportunities like improved technologies (Woldesenbet,
disease management practice though alternative technologies 2013).
are available. Farmers used different agricultural inputs for the
improvement of crop production and productivity. In general, Area coverage and volume of production
fewer numbers of farmers among the growers applied farm They have also limited crop commodity alternatives for
inputs for crops they produced from the total producers. The their production environment to produce other crops
Majority 86% of faba bean producer farmers applied compost which are not well performed in the highland areas. The
to produce faba beans (Table 4). production and area coverage of faba bean in the study
area declined because of biotic and abiotic stress that
Perceptions of the farmers
emerged in the study area. The newly emerged disease
From the focus group discussions and key informant called faba bean gall damaged it and irritated the farmers
interviews, the participants discussed the production trends to produce it (Table 5).

Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.
6 Int. Res. J. Busin. Manag.

Table 3. Barley faba bean production practices.

Applied farming practice implemented N percent
Crop rotation practices 4 1.26
Row planting practices 54 17.04
Weed management practices 104 32.81
Seed treatment and cleaning practices 9 2.84
Use of improved seed 164 51.74
Recommended seed rate 39 12.30
Soil fertility conservation practices 37 11.67
Source 2014 survey data manipulation

Faba bean varieties grown (%)

100
76.5
80
60
40
23.13
20
0.3
0
Wolkie Local Gebelicho
Figure 2. Faba bean varieties grown in the study area.

Table 4. Agricultural inputs application to produce crops.

Crops grown
Production inputs used Faba bean Other crops
Freq % Freq %
Urea 0 0 253 48
DAP/NPSB 24 12 230 44
Compost 178 86 89 18
Herbicide 4 2 218 42
Source survey data calculation

Purpose of production and utilization and marketing of faba beans. Traders and processors acted
on different levels of value addition processes (Table 6).
Faba bean was produced in the study area and the output
was allocated for different purposes. From the focus The map shown below provided the value chain map of faba
group and key informant interviews farmers used faba beans in the study areas. The map showed the actors, their
bean for various purposes of consumption, market, and relationships, and economic activities at each stage with the
seed reserves. Farmers confirmed faba bean is produced related physical and monetary flows. Faba bean products
mainly for market and home consumption purposes pass through different phases of production, processing,
(Figure 3). and marketing to reach the final consumers. The downward
arrow shows the flow of products and the upward arrow
Value chain actors’ relationship in production and shows the flow of money movement while the flow of
marketing processes information is going in two ways of upward and downwards
Private sectors are involved in the production, flows in the study areas. The value chain mapping of faba
transportation, processing, input supply, product bean indicated there is enabling environment to improve
distribution, and consumption of faba bean products. The farmers’ knowledge on production and field management
public sectors are also involved in input supply, capacity through the existing extension system (Anil et al., 2013).
development training, and facilitation roles in the value The seed has been delivered by seed enterprises, research
chain. Non-Governmental Organizations (NGOs) are also institutes, and some NGOs, Other inputs like fertilizer and
involved in both input supply and facilitation activities chemicals are supplied by cooperatives and agro-dealers.
in some interesting areas. Faba bean value chain actors Buyers of the produce participated in the marketing of
participated from input supply to consumption of the faba bean including processors, supermarkets, hotels and
products. Farmers are primarily involved in the production restaurants, other groups, cooperatives, and traders (Figure 4).

Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.
 Tigabie A, et al. 7

Table 5. Faba bean production by the study areas.

District Area in ha Production in(t)
Bassona werana 5312.5 11166.25
Tarimaber 2418 4836
Source office of agriculture 2016 report

Fab a b ean p ro d u c � o n d i st r i b u �o n p er h o u s eh o l d i n %

Bassona Werana

50
45

45
Tarimaber
Share of product in %

35

15

10
MARKET HOME CONSUMPTION OWN SEED
Alloca�on of products by purposes

Figure 3. Production purposes and their share by the study areas in %.

Table 6. Activities and actors analysis matrix.

Actors roles in the value chain Limitations Existing challenges
Pest and diseases of faba
Farmers Production of crops Low quality and quantity of supply
bean
Multipurpose Cooperatives and The input supply and marketing on faba Low financial capacity for Low attention to marketing
unions bean marketing involvements
Input supply, marketing, and Adulteration, not trust by
Grain traders Dis organized
transportation farmers,
Marketing, roasting, splinting and
Processors (local baltina, hotels, and Low attention for quality products Not interested in
crushing of faba bean to Kik and
restaurants) and production improvement partnership linkages
powder
Not, enough seed for improved Low attention for faba
Seed enterprise Seed supply and seed marketing
varieties bean seed
Low attention for market
Extension workers Facilitation, awareness of farmers Low capacity, many task burdens
linkages
Research institutes (DBARC, ILRI Capacity building, input supply, Dis organized
Limited area visits, low exposures,
ICARDA) facilitation, technical support interventions
Input supply, market linkages, technical Limited area coverage, specific Dis organized from other
NGOs (SUNARMA, Adhino, CCF)
support interest actors
Facilitation, technical support, and input
Public sectors (OA and AGP) Limited intervention Dis organized
supply
Needs direct market from the Low interest for value-
Consumers Consumption of the produce
producers added produce
Source: own data manipulation

The value chain functions start from farm inputs, weeding, pest/disease controlling, harvesting, and post-
preparation of their farms, or gaining of the inputs from harvest handling (cleaning). The larger quantities of faba
other sources to post-harvest handling and marketing. bean are sold during and soon after the main harvest season
Farmers are the key actors in the value chain. The major to cooperatives, grain traders, processors, and retailers to
farming and value-adding activities which are performed consumers of the area within the same production years.
by faba bean producers include plowing, sowing, fertilizing, About 50% of faba bean produced passes through different

Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.
8 Int. Res. J. Busin. Manag.

Figure 4. Faba bean marketing channels mapping.

marketing channels and cooperatives have a share of 25% uses. Faba bean is finally consumed as end products of
of it. The local processors obtained the products mainly full or kik wot and soup or shiro wot in the local market.
from grain traders and cooperatives in the value chain. The The end products passed various steps from production
consumers accessed the processed faba bean produces to consumption. The end products depend on the grain or
through various forms of grain, powder (shiro), splits (kik), seed sizes of faba bean. Soup or shiro wot produced from
and foods. From this analysis retailers had relatively large small-seeded faba bean types obtained a higher net return
market governance power and they decided on about 35% compared to powder shiro. Kik produced from large-seeded
followed by farmers cooperatives and grain traders. faba bean had the lowest net return in the value chain. In
Cost-benefit analysis of faba bean in the value general, when the value addition of faba bean increased
chain the net benefit from the commodity increased along the
value chain. Local processors (baltina ) used small-seeded
Farm-level cost-benefit analysis of faba bean production faba bean grain to produce a powder which is locally called
and marketing: The costs of production were collected
“shiro”. Large seeded faba bean processed for splits into
based on farmers' implementation practices, crop input
“kik” and graded for food items locally called “full ”. Farmers
requirements, and technology package formulations.
The average production cost of faba bean per hectare of cooperatives and traders bought the grains from the
land resulted from high seed rates lead to higher seed producer farmers and resoled the grain for local processors
cost and field management costs of chemicals for disease to make shiro and kik. The processors graded their produce
management. Faba beans had higher benefits resulting and sold it to the local consumers, and bars and restaurants
from low fertilizer costs and high market prices. Farmers for preparing soup for final consumers (Table 8).
in Basson werana earned high net income resulting from
both better productivity and the high market price of faba Challenges along the value chain
bean (Table 7). Market prices varied from 12,000 to 15,000 From both FGD and household survey responses very
Birr/ton in high and low supply seasons depending upon common set of constraints span the production, collection,
the production volume trends. The average farm-gate price transportation, and demand sinks on faba bean value chain.
at immediate harvest were 13,700 and 14,000 Birr/ton for Different actors explained the challenges along their distinct
Tarimaber and Bassonawerana districts, respectively. value addition stages. Farmers reflect production challenges
that hindered the improvements of quality and quantity of
Other value chain actors’ cost-benefit analysis
the produces. Various actors faced distinct challenges to
Many actors are involved in faba bean processing activities facilitate the value additions process and to smoothen the
and produce different faba bean products for different production and consumption process.

Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.
 Tigabie A, et al. 9

Table 7. Average cost of production.

Cost items Costs in Birr per unit area of land (ha)
Seed 2200
NPS 938
Labor 3200
Chemicals 700
Transportation 1200
Bio-fertilizer 120
Baggage 240
Draft power 2400
Total cost/ha 10998
Benefits Bassonawerana Tarimaber
Yield T/ha 2.1 2.0
Gross benefit Birr/ha 29,426.35 27,400
Net benefit Birr/ha 18,428.35 16,402
Source own data manipulation

Table 8. Production costs and value chain benefits.

Product items Production cost Birr/kg Market price Birr/kg Net return Birr/kg
Split(kik) 24.00 35.00 11.00(45.8%)
Powder (shiro) 24.8 40.00 15.20 (61.3%)
Food (Shiro) 120.00 200.00 80.00 (66.7%)
Source: own data manipulation

Production-related challenge: faba bean productivity is shortage of the produce. This affected the sustainable
below the potential due to low investment, especially flow of the products along the value chain. This further
chemical fertilizers, pesticides, and improved seeds. Poor loosed the actor’s interactions in the value chain. Seasonal
agronomic practices like application of appropriate seed supply variation of the grain also limited the continuous
and fertilizer rate, time of planting, poor weed management flow of the commodities. The limited involvement of
habits, and lack of proper drainage practices, also affected farmers’ cooperatives in the value chain contributed to the
the productivity of faba bean. The volume of supply, difficulties.
farmers' involvement in production, and area coverage by
faba bean become declined. This resulted from increasing CONCLUSION
faba bean gall disease risk and African ball worm insect pest Faba bean is one of the major crops grown in the study
infestations, high input cost, limited availability of improved areas and occupied a considerable share of farmlands. Low
seed, frost, and weak seed supply system for pulse crops productivity of faba bean resulted from low agricultural
in general and faba bean in particular also contributed to investment and improper agronomic practices of low input
shortage supply and poor quality produce. of fertilizer application, lack of disease-resistant improved
Knowledge management and technology transfer related faba bean varieties, poor drainage, and weed management
challenges: The number of improved varieties introduced practices. Various actors are involved in the production and
to the areas and the number of growers indicated there marketing of faba beans. Price fluctuation throughout the
is limited awareness and familiarity with the available year affected its sustainable supply. Faba bean production
varieties and low level of the farmer to farmer seed and supply trends declined due to disease and insect pest
exchange systems hindered the technology transfer effects infestations. Processors earned a high rate of returns from
to improve the productivity of barley and faba bean. The faba beans and had high market governances compared
low level of technology adoption of the improved varieties to smallholder farmers. Retailers have a high market
and weak market linkage and poor partnership among the governance role in which a large volume of faba bean is
transacted through these value chain actors. The need to
actors were also contributed to the level of productivity.
enhance partnership linkages between value chain actors
Aggregation and trading: Both the supply and demand will smoothen the value chain processes of faba bean.
sides of produce marketing and distributions affected the Providing sustainable and adequate market access and
value chain of faba bean in the study areas. The produce information to the farmers is important to improve the
supply and marketing were severely affected by the supply farmers’ awareness. Strengthening the linkage of farmers
side constraints of poor quality, low quantity, and seasonal and other value chain actors will contribute to full fill actors’

Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.
10 Int. Res. J. Busin. Manag.

interest in benefit maximization. Generate technologies to Feder G (1980). Farm size, risk aversion and the adoption of new
technology under uncertainty. Oxford Economic Papers. 32:
reduce faba bean gall disease and insect pest damages.
263-83.
Reduce high market governance of traders and processors
to motivate smallholder farmers for production and supply Hasan R, Kapoor N, Mehta A, Sundaram A (2017). Labor regulations,
employment and wages: evidence from India's apparel sector.
improvements. Asian Economic Policy Review. 12: 70-90.

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Birhan Agricultural Research Center, and concerned practices and challenges of Mung bean (Masho) in Amhara
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Citation: Tigabie A, Mamo D, Temeche D (2022). Value chain analysis faba bean in the central highlands of Amhara region Ethiopia: The
case of Bassonawerana and Tarimaber districts. JRIBM. 9: 017.

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