Value chain analysis of Sesame (Sesame Indicum L.

) in South Omo Zone,

Southern Ethiopia

Kutoya Kusse*, Gedion Ermias and Dawit Darcho

Southern agricultural Research Institute, Jinka Agricultural Research Center, Agricultural

economics and gender Directorate Researchers, SNNPR, Jinka, Ethiopia
*Corresponding Author; Kutoya Kusse, Email: [email protected]

Abstract
This study was aimed to research sesame value chain in four potential sesame producing kebeles
of Benatsemay and Salamago woredas of South Omo Zone of SNNPR. Simple descriptive
statistics and value chain approach were employed for data analysis during this study. It
attempts to deal with mapping and identifying sesame value chain actors and their roles,
examines marketing channel, cost margin structure and assessing challenges and opportunities
within the study area. Supported these producers, local collectors, wholesalers, retailers and
exporters were found to be core actors in sesame value chain within the study area. The results
of the study indicated that out 5589.3 quintals were supplied to markets for various actors and
five alternative marketing channels were identified to transact the sesame product through
intermediaries. The most important volume of sesame (4900.8 quintals) was marketed through
channel V and the lowest volume in channel I. producers get the highest share in channel IV and
the lowest in channel II. The most barrier to entry traders into the market is that the capital
requirement and therefore the wholesalers govern by volume transacted and internal control
criteria within the market. Fertile land and high demand for the merchandise were the essential
opportunity for sesame production and marketing within the value chain. Pests and disease, Low
level of input utilization, Shortage of input supply and high price of inputs were the most
challenges of sesame production whereas lack of market information, price variability, delay of
buyers, low bargaining power and poor product quality were the most challenges sesame
marketing.

Keywords: - Value addition, Value chain, Value chain actors and Sesame marketing

1
 1. Introduction

Agriculture is that the core component and driver for Ethiopia’s growth and long-term food
security. Its contribution is very high ranges between 15 to 17 percent of the government of
Ethiopia’s expenditures are committed to the world. Agriculture directly employs 80 percent of
the entire population, 43 percent of gross domestic product (GDP), and over 70 percent of export
value (UNDP, 2013). Despite the considerable progress made within the sector, ensuring
commercialized production remains one among the main challenges facing many people. There
also are challenges which are related to food security in some part of the country.

Sesame is currently among one of the main Ethiopian export oilseed crops and is one among the
agricultural crops that Ethiopia is understood in international markets (Sorsa, 2009). Evidence
indicates that Ethiopia ranks fourth in sesame production in 2011/2012 within the world, and
therefore the third in benniseed export next to India and Sudan (FAOSTAT, 2012). Evidence
revealed that there's still potentially arable land in several parts of the country to grow the crop
and increase its supply response to the considerable demand for Ethiopian benniseed in
international markets (Sorsa, 2009).

Globally, the top five largest sesame producers are Myanmar, India, China, Sudan, Uganda and
Ethiopia (Girmay, 2018). Evidence also indicated that Ethiopia ranked one of the 3rd highest
sesame producer country in Africa (Hagose, 2017). In terms of oilseed export potential, Ethiopia
is the third world exporter of sesame seeds after India and Sudan (Temesgen et al, 2017). Among
the main export commodity sesame is the second major export cash crop in Ethiopia, next to
coffee (Abebe, 2016). But sesame marketing in Ethiopia in general and in South Omo Zone in
particular, is hampered by a variety of constraints (FAO for United Nations, 2015). Ethiopia is
among the top five producers of oilseeds within the world. Sesame is among one of the oilseeds
that Ethiopia is understood for within the international market. Within the previous couple of
years, sesame production and marketing have shown very significant growth. Between the years
1998 and 2005- 2006, the entire area of production and therefore the quantity of sesame
produced has grown threefold. As a serious producer of sesame, Ethiopia stands fourth within the
global sesame market following China, India, and Burma, respectively and national sesame

2
production has quite doubled within the past 5 years. Ethiopia exports most of its products and is
poised to become one among the highest two leading sesame-exporting countries within the
world, with a rapidly growing export performance in recent years, destined for markets in middle
east like China, Japan, Korea, Israel, and Turkey. Sesame is the major oilseed crop produced in
terms of exports in Ethiopia, accounting for over 90% of the values of oil seeds exports (ATA,
2014).

The export of oilseeds of Ethiopia generally and sesame, especially, is expanding and therefore
the country’s total exports are performing better within the growing world market. Ethiopia’s
share 1.5% in export volume and 1.9% in value in the year 1997 had grown to eight 8% and
8.3% in 2004 respectively. Within the stated years, Ethiopia ranks 4 th in export quantity and
revenue following Sudan, India, and China. Since sesame contributes, about 80% of the export
earning among the major oilseeds and it ranked second foreign currency earning crop after
coffee. Sesame is grown from water level to altitudes of 1500m with uniformly distributed
rainfall of about 500-800 mm and temperature of 25oc- 30oc. All the sesame growing areas fulfill
the above condition within the country. Sesame in Ethiopia grows well within the semi-arid areas
of Amhara, Tigray, Benshangul Gumuz, Somali Regions, Oromiya region and Southern nation’s
nationalities regional state, especially South Omo Zone of Southern Region. Mainly the low
lands of Oromiya and Southern Nations Nationalities and Peoples Regions grow a big amount
which is driven by high market price and suitability of environmental conditions (Winands et al.,
2007).

In the Southern Ethiopia Nations and Nationalities Peoples Regional State, specifically, areas
located within the gorges of Gibe, Gojeb and Omo rivers and Hot to warm sub-moist and rift
valleys are identified areas for sesame cultivation in which the production of sesame in South
Omo Zone is not known nationwide. (Herald newsletter, September 2004 E.C). This study is
especially focused on the sesame marketing value chain analysis within the South Omo Zone
within the Southern nation nationalities regional state in which there is the highest production in
the region but not known nationwide. The product of sesame from the Zone collected by local
collectors and exported to the central market of Addis Ababa and mixed with the products from
other parts of the country. So among the available marketing study approaches, the commodity
approach is used thanks to its combination nature of both functional and institutional approaches.

3
Because the worth chain is beneficial for identifying and categorizing input used, key producers,
market players, supporting organizations and final consumers of the produce. The worth chain
also illustrates different market channels that a product takes before reaching the ultimate
consumer. Therefore a worth chain analysis is a crucial tool used for identifying bottlenecks, also
as possible opportunities. Based on the data collected from sesame value chain actors (i.e. input
suppliers, farmers, traders, and other actors involved in the chain), this study analyses the sesame
value chain in South Omo Zone, Southern Ethiopia.

1.1. Objective

1.1.1. General objective

The general objective of this study was to research the sesame value chain in South Omo
Zone, Southern Ethiopia.
1.1.2. Specific objectives

 To identify and map different actors within the value chain of sesame and various
activities they perform

 To identify and map the major destinations of Sesame in South Omo Zone

 To identify the main constraints and opportunities of sesame production and marketing
within the area

4
 2. Materials and methods
2.1. Study area and data collection
The study was conducted in two districts of South Omo Zone, such as Salamago and Bena-
tsemay districts. Multi-stage sampling techniques were employed to draw sample respondents. In
the first stage, potential sesame producing districts were selected purposively from the zone. In
the second stage, from each selected districts, two kebeles were selected purposively based on
sesame producing potential. In the third stage, sesame farm households were randomly selected
using probability proportional to the size, whereas collectors, traders and exporters were selected
based on their availability. Accordingly, a total of 147 (126 producers, 13 local collector, 5
wholesalers and 3 exporters) were interviewed to collect the required data. Alongside the survey,
from each peasant association, focus group discussion was made which contains (5 to 8
participants in each group), key informant interview, and researchers’ direct observation were
used to collect detailed data in the study area.

Moreover, the secondary data were collected from Salamago and Bena-tsemay districts
Agriculture and Natural Resource Management offices, Jinka Agricultural Research Center
(JARC), Ethiopian Commodity Exchange (ECX) authority and other nongovernmental
organizations involved in sesame research in the study area.

2.2. Data type and source

Both Qualitative and quantitative data were collected from primary and secondary data sources
in the study area. Primary data were collected from sesame producer farmers, traders, and
processors. Whereas Secondary data were collected from works of literature, reports, documents
both from published & unpublished data sources.
2.3. Sampling procedures and Sample size

Multi-stage sampling techniques were employed to draw sample respondents. Within the first
stage, potential sesame producing Woredas were selected purposively from the zone. Within the
second stage, from each selected woredas, two kebeles were selected purposively supported
sesame producing potential. Following to the present, sample size determination formula of

5
Yamane (1967), which described below was wont to determine the sample size.

Where, n = the sample size, N = total number of households, e = acceptable sampling error and
therefore the value of 'e' is 95% confidence level and it’s assumed to be e = 0.05. Sample size
from each kebele was taken by using stratified sampling technique to the population size and
eventually, a complete of 126 sample respondents were selected using simple sampling method.

2.4. Method of data collection

Both formal and informal survey techniques were wont to implement this study. Regarding the
formal survey, a structured questionnaire was developed and employed over the sampled
households to gather quantitative data. On the opposite hand, some informal survey tools like
FGD, KII were wont to generate qualitative data from the elders who know deeply the world
during which he/she lives in it. In each kebele, a complete of about 8-12 elder members
participated in FGD during the survey time.

2.5. Methods of data analysis

The collected data were analyzed by simple descriptive data analysis methods. The descriptive
methods such as mean, percentage, frequency and chain map were used. Analysis specifying the
functions of each actor across sesame value chain described under the map. Economic
parameters were used to analyze gross margins and producers share across the chain.

2.5.1. Marketing margin

Marketing margin of a given agricultural commodity is referred as the difference between

purchase price and sale prices of the commodity through its marketing channel. Gross margin is
calculated by dividing the gross income of the commodity or gross profit to the revenue earned
from sales of the commodity. Then, multiply by 100 to give a percentage. The gross marketing
margin (GMM) of sesame is given as:

End buyer price−Seller price

GMM = x 100−−−−−−−(1)
End buyer price

6
 The net marketing margin (NMM), which is the percentage of the final price earned by the
intermediaries as their net income after their marketing costs are deducted, and is calculated
as:

Grossmargin−Marketing costs
NMM = x 100−−−−−−−(2)
End buyer price

The above equation tells us that a higher marketing margin along the chain diminishes the
final producer’s share and vice versa. This also provides an information about welfare
distribution among producers and marketing agents in the chain.

3. Results and Discussion

3.1. Demographic and Socioeconomic Characteristics

Under this section, both the socio-economic characteristics of producers and traders/urban
collectors and exporters were analyzed using simple descriptive statistics. The socio-economic
characteristics include Sex, Age, education level, marital status, and family size.

Table 1: Demographic and Socioeconomic Characteristics of Sample Producers

Variables Frequency( N = 126) Percentage (%)
Sex Male 106 84.2
Female 20 15.8
Age 20-40 100 79.3
41-60 23 18.2
>60 3 2.5
Marital status Single 9 7.1
Married 112 88.8
widowed 1 0.8
Divorced 4 3.3
Family size 1-5 48 38.1
6-10 67 53.2
>10 11 8.7
Education level Illiterate 62 49.2
Primary 51 40.5
Secondary 9 7.1
Certificate and above 4 3.2
Source: Survey Data Result, 2020

The results of the study show that from the entire number of sample respondents 84.2% were
male-headed households whereas about 15.8% were female-headed households. Consistent with
7
their age category, 79.3% of the respondents were found between the ages 20-40 years, 18.2%
were between the age of 41-60 and 2.5% were above the age of greater than 60. About marital
status 7.1% were single, 88.8 were married, and 0.8% were widowed whereas 3.3% of the
respondents were divorced. The family size of the sample sesame producers was also categorized
into three categories. Based on this, about 38.1% have a family size between 1-5, 53.2% were
between 6-10 and the rest 8.7% of sample producers have family size >10. This means that those
sample producers, who have a family size of greater than ten have a polygamy mirage. The
education level of sample respondents is categorized in to four groups. Based this about 49.2%
were illiterate, 40.5% have attended primary education, 7.1% have attended secondary education
and the rest 3.2% have an education level of certificate and above respectively.

3.2. Sesame Production in the study area

In the year 2010/2011 cropping season, the total land under sesame production reaches 384,682
hectare and a total of 327,740.92 ton of benniseed has produced within the country (CSA, 2011).
Despite, the production trends of sesame in 2011/2012 production year, its production and area
under cultivation has declined by from 25.31% to 12.26%, compared to the preceding year.
Accordingly, only 337,505.41 hectare of land has covered under sesame production and only
about 2,447,833.59 quintal of output was produced, (CSA, 2012). This means not only the area
under sesame cultivation and its production volume was decreased, but also the crop yield too
decreased from 8.52 quintal/hectare in the year 2010/2011 to 7.25 quintal/hectare in the year
2011/2012, it declined by 14.9% (CSA, 2012).

Sesame is usually grown as a smallholder crop, and a serious aim was to extend yield or oil-
content selectively within local cultivars within the context of sesame’s place in local crop
rotations. A serious drawback of local cultivars is that the mixture of colors in any seed sample,
which reduces its commercial value. Selection within local sesame in Sudan showed that within
a kind producing seed of 1 predominant color several strains might be isolated. These gave a
highly variable yield, indicating that separation not only ensured the purity of seed color but by
eliminating low yielding elements appreciably increased potential yield. Cultivation required for
other crops like wheat, sorghum or similar small grains is suitable for sesame. Level lands are
important to make sure even depth of planting, and lands could also be ridged to help drainage in
areas where high-intensity storms are common. Seed quality is seldom a serious factor limiting

8
yield and doesn't become important until the overall agriculture is raised. A serious agronomic
factor-influencing yield is plant population, and for optimum yield, this must accurately be
determined by trails with local cultivars and can differ if rain-grown or irrigated. Smallholder
sesame is sown by hand and therefore the small seeds are often mixed with sand, soil or ash to
extend the quantity and assist even distribution.

Figure 1 Production trend of sesame in the study area

10000000
9000000
8000000
7000000
6000000
5000000
4000000
3000000
2000000 Production
1000000 in Kg
0
2 3 4 .. 6 7
01 01 01 /2. 01 01
/2 /2 /2 07 /2 /2
0 04 0 05 0 06 20 0 08 0 09
2 2 2 2 2

Source: Zonal agriculture and natural resource management office, 2020

The production of sesame in six consecutive years ranging from the year 2004/2012 up to
2009/2017 is shown in (Fig 1) above, supported this the quantity of sesame produced in
2004/2012 production year is 1733700 kg, which is that the lowest and within the years
2005/2013, 2006/2014, 2007/2015, 2008/2016 and 2009/2017 production years were 2845359
kg, 9564886 kg, 4855365 kg, 5391886 kg and 3163000 kg respectively. The very best amount of
sesame was produced within the year 2006/2014 production year.

3.3. Sesame value chain map of the South Omo Zone

Value chain map is a potential starting point for the inclusion of actors in the chain such as;
producers, traders, consumers, and other stakeholders in the chain (Lundy et al., 2014). Hence,
value chain map used to start to present our results by mapping of the sesame value chain in the
study area. The value chain map described in (Fig 2) cannot only applied to the study area but

9
also be for the nation as a whole because sesame production, processing, and marketing
situations are almost similar in all regions. The map involves functions undertaken by the actors
and other service providers in the whole value chain.

Figure 2 map of the sesame value chain

Source: Survey Data Result, 2020

3.3.1. Main actors in sesame value chain

There are various actors in the sesame value chain. These include actors such as; producers,
small traders (collecting middleman), Wholesalers/brokers, oil millers, retailers, local consumers,
and exporters. They can be those that are directly involved in the value chain or indirect actors
who provide financial or non-financial support services.

10
Input Suppliers: - Input suppliers are those including private input suppliers, seed producers,
primary cooperatives and research centers that supply essential agricultural inputs such as seed,
fertilizers, farm tools, credit and training to the small scale farmers to increase the production
and productivity of sesame.

Producers: - Producers are those small scale farmers who receive input from input suppliers,
plow their farm properly, sow seed, weed their farm, harvest, thresh and sell their product to
retailers, local collectors and wholesalers.

Local collators: - Are small scale trading individuals, who collect the product directly from
small scale farmers and resell to wholesalers. They act as a middleman between producers and
wholesalers who do not add value to the product. This includes farmer’s cooperatives and unions
who involved in sesame collection.

Wholesalers: - Wholesalers are larger suppliers who have better capacities in terms of finance
and other facilities. They resell the sesame seeds to exporters and processors.

Retailers: - Retailers buy the final products produced from sesame like oil and distribute to the
customers or final consumers. They are registered officially for a certain line of products.

Exporters: - Exporters are business professionals who prepare and manage the shipment of
sesame products produced domestically to other countries. In most cases, an exporter work with
the buyer to process the order, then schedules the shipment and ensures that all the relevant
paperwork associated with the process is properly filled.

Processors: - processors are those who participate in the Cleaning, Sorting, Hulling and
extraction of Oil and other byproducts from sesame.

Consumers: - consumers are the final or end-users of the sesame product in the form of Oil.

3.4. Sesame market Channel

11
In the study area 5 alternative frequently transacted marketing channels were identified. The
identified market channels were:

Channel I Producers Consumers (90 quintals)

Channel II Producers Retailers Consumers (170 quintals)
Channel III Producers Wholesalers Retailers Consumers (123.5
quintals)
Channel IV Producers Wholesalers Exporters (428.5 quintals)
Channel V Producers Local collectors Wholesalers Exporters (4900.8 quintals)

Regarding channel comparison using volume of transaction from farmers’ hand through traders
as shown above, channel V carried the most important volume 4900.8 quintals thanks to the high
capacity of local collectors directly purchased from farmers and passes through whole sellers’
intermediaries to exporters. The littlest volume of sesame was skilled channel I about 90
quintals. This was thanks to the tiny capacity of consumers in rural village markets purchased
smaller quantity for consumption. Farmers sold 428.5 quintals of sesame to their wholesalers and
170 quintals passes through retailers to consumers and 123.5 quintals passes through retailers’
intermediaries to consumers.

12
 Figure 3 Map of the sesame market chain

Source: Survey Data Result, 2020

3.4.1. Marketing costs and margin

Market channel comparisons in margin distribution were mad among major value chain actors.
Consistent with Mendoza (1995) computing the entire Gross Marketing Margin (TGMM) is
usually associated with the ultimate price paid by the top buyer and expressed as a percentage.

13
Table 2. Marketing costs and margins analysis at different marketing channels

Marketing margin Sesame Marketing Channels

analysis Channel II Channel III Channel IV Channel V
Producers price 2140 2600 3210 2720
Traders Price 3026 3445 3852 3625
Gross margin 886 845 642 905
Marketing cost 45 85 105 115
Net market margin 841 760 537 790
Producers share 70.72% 75.5% 83.33% 75.03%
Source: Survey Data Result, 2020

Marketing costs and margins were calculated for the channels through which sesame were
passes. The producers share in channel II, III, IV and V were 70.72%, 75.5%, 83.33% and
75.03% respectively. Based on this producers get the highest share in channel IV which is
83.33% and the lowest share in channel II which is 70.72%. This means the involvement of
intermarries between producers and wholesalers or exporters lowers the share of producers, so
the producer sell their product through the right channel from which they get the highest share.
This means producers sell their produce to whole sellers, then directly from whole sellers to
exporters.
3.4.2. Marketing Destinations of Sesame

Farmers in Ethiopia mainly produce sesame for the export market (Alemu and W.Meijerink,
2010). Salamago and Bena-tsemay districts are the main sesame producing areas in South Omo
Zone (Fig 4).

Figure 4. Market Destinations of Sesame in South Omo Zone

14
 Source: Survey Data Result, 2020

At the point of production sesame were collected by local collectors and transported to Jinka
town, then traders transport from Jinka to Addis Ababa ECX warehouse. Currently, the main
Ethiopian sesame imported countries are China which is the largest import market for Ethiopia’s
sesame followed by Israel, Turkey and Jordan in 2011, respectively (Ethiopia Revenue and
Custom Authority, 2012), and some of the sesame seed processed at Addis Ababa in domestic
industries. At the point of production small amount of sesame were also sold at local markets to
consumers, who locally consume in different forms.

3.5. Access to market information and Other Services

3.5.1. Access to Market Information

15
Market information is crucial for agricultural products marketing. So reducing information gap
and uncertainties that exist in the agricultural sector is very important. It’s required by producers
in their planning of production and way of marketing the product.

Figure 5 farmers access to market information

60

50

40

30

20

10

0
Have no market From neighbors By visting the From local traders
information market

Source: Survey Data Result, 2020

Out of the total respondents, 52.5% do not have market information, while 20%, 17.5% and 10%
of the sample respondents get market information from their neighbors, by visiting the market,
and from local traders respectively. As indicated the majority of sample respondents in the study
area have no market information. This has resulted in the low bargaining position of farmers due
to a lack of adequate market information. Sesame is the main export commodity that requires the
dissemination of regular market information on regular bases.

3.5.2. Access to Extension Service

16
Access to agricultural extension services is expected to have a direct influence on the production
and marketing behavior of the farmers. The higher farmer have access to extension service, the
more likely that they adopt new technology and innovation.

Figure 6 farmers access to extension service

28%

73%

access to extension service Do not have access to extension

Source: Survey Data Result, 2020

The result of this study indicates that out of the total respondents of sesame producing sample
households, about 27.5 % of sesame producers had access to extension services provided by
development agents of the kebele. The remaining 72.5% of sesame producing sample households
responded that they did not receive any extension services from development agents.

3.5.3. Access to credit

Access to credit is one way of improving smallholder farmer’s production and productivity.
Farmers’ ability to purchase inputs such as improved seed and fertilizer is tied with access to
credit. Farmers having access to credit service can minimize their financial constraints and buy
inputs more readily than those with no access to credit. Thus, it is expected that access to credit
increases the production of crops in general and sesame in particular. Farmers access to credit
from formal institutions (banks, MFI, and cooperatives) and informal sources (Iqub, trader

17
friends, relatives, and money lenders). Governmental and non-governmental institutions also
provide credit to farmers.

Figure 7 farmers access to credit service

18%

83%

Access to credit Do not have access to credit

Source: Survey Data Result, 2020

Figure 7 above shows that only 17.5% of sesame producing farmers reported that they had access
to credit while the remaining majority (82.5% of sesame producing sample respondents) reported
that they have no access to credit to buy input that can be used for production like improved
seeds and fertilizer. According to the sample respondent’s response, access to credit is influenced
by a lack of awareness creation and a negative attitude of farmers for credit access.

3.5.4. Transportation and Access Road

Ethiopia has a good main road infrastructure, although with 21 to 31 km/ 100,000 ha the road
density is quite low considering the African average of 50 km/ 100,000 hectare (Winands, 2007).
However, in the study area a little investment is made to improve further the road
infrastructures.

18
Table 3: Access road
Variables Mean Std. Dev
Distance to main road (in hours) 2.28 2.69
Distance of your residence to the nearest market (in hours) 2.50 2.93
Distance of your residence to the nearest development center( in 2.67 2.95
hours)
Source: Survey Data Result, 2020

The mean distance in hours from the producing area to the main road, to the nearest market, to
the nearest development center is 2.28 hours, 2.50 hours and 2.67 hours respectively with
corresponding standard deviation 2.69 hours, 2.93 hours, and 2.95 hours respectively.

Figure 8 Means of sesame transportation

1% 3%

40%

57% Head/Loading

Back animal

Vehicles

Others

According to the survey 56.7% of total sample respond that the transport of sesame from the
producing area to the nearest market and woreda market of the zone, is mainly done by
head/loading, 40% respond that they transport by pack animal whereas 0.8% by vehicle and
2.5% by others

3.6. Barriers to Entry

The commonly known barriers to entry in the market in the study area are lack of capital,
licensing and lack of access to road. From the respondents of sesame traders, trading license is
the main important factor to enter in to trading of sesame. The traders residing in the town have
grain trade license whereas the farmer traders, who reside in rural markets had no grain trade
19
license. According to the survey result 77.5% of the sample traders indicated that lack of capital
is one of the major constraints to enter trading. Lack of access to credit has been the single most
constraint in startup. More over the remaining 22.5% of traders said that lack of access to road is
the main problem, which needs series attention.

3.7. Major challenges and Opportunities in sesame production and marketing

3.7.1. Major challenges in sesame production and marketing

The major challenges in sesame production and marketing are identified as follows in the study
area. Pests and disease during production, Drought, and Shortage of rainfall, Low productivity,
Flood, Lack of improved seed or Low level of input utilization, Shortage of input supply, High
price of inputs, Unexpected rain during harvest, Buyers come only during harvest, The need for
cash during harvest, Price declines later, Fear of weight loss if stored, Fear of color change if
stored, Thefts, Storage Pests, High postharvest loss, Lack of information on quality standard,
weed problem, price fluctuation, Lack of loan service, Lack of updated market information,
Insufficient or limited rural roads and transports, Limited modern market centers and
Insufficient postharvest technologies, are the major problems faced by producer households in
sesame production and marketing in the study area. Besides this, Lack of advanced value
addition technologies and Lack of awareness and skill of value auditing activities are some of the
problems related to sesame value addition

3.7.2. Major Opportunities in sesame production and marketing

In the study area the better Opportunities for producers were; Availability of fertile land, less
usage of chemical fertilizer, Low cost of production, Suitability of the environment, High
demand for the product for traders or local collectors were Availability of the production and
Better supply and Market potential for domestic and export. Sesame is the most important oil
seed export crop in Ethiopia and its contribution to foreign exchange earnings in the country has
been increasing over the years. High demand for the product, Market potential for exports are
better opportunities for sesame Exporters and High demand for processed products and
Employments, High demand for quality oil is better opportunities for sesame Processor.

20
 4. Conclusion and Recommendation

4.1. Conclusion

Results from value chain analysis approach showed that input suppliers, sesame producers, local
collectors, retailers, wholesalers, processors and consumers were the main sesame value chain
actors identified in the study area. These actors play their significant roles in the value chain.
Producers in the study area have different alternative marketing channels, but disproportional
flow of costs and benefits was observed. Among alternative marketing channels the producers
share is highest in channel IV which is 83.33 % and lowest in channel II which is 70.72%
respectively. In channel IV producers sell their produce directly to exporter but in channel II
there is the interference of local collectors that lowers the producers share.

On the other hand the highest volume of product were pass through channel V which is 490.08
quintals when producers sell their product to local collectors, local collectors collect the product
and sell it to wholesalers then wholesalers sell to exporters and the lowest volume pass through
channel I when producers directly sell to consumers. The market destinations of sesame is local
collector collect from farm gate and transport to woreda cities, then from woreda cities to zonal
city Jinka, the from Jinka to Addis Ababa, then finally they mixed with the products that game
other places in Ethiopia and export to foreign countries. The problem here is the zone is
potentially known in sesame production, but nationally not known do to mixing up of the product
with products from other at Addis Ababa. The main barrier to entry traders into the market is the
capital requirement and the wholesalers govern by volume transacted and quality control criteria
in the market. Production and marketing opportunities were identified include conducive
environment, fertile land and reduce use of chemical fertilizers as well as presence of potential
sesame producers and suppliers in the study area, High demand for the product and Market
potential for exports were the basic opportunity for traders business in the value chain. Pests and
disease during production, Shortage of rainfall, low productivity, Low level of improved input
utilization, Shortage of input supply and high price of inputs were the main challenges of
producers and suppliers whereas lack of market information, price variability, delay of buyers,
low bargaining power, weight loss and poor product quality were the main challenges sesame
marketing.

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 4.2. Recommendation

Basing on the research findings the following recommendations were forwarded to improve the
sesame value addition in the study area.
 The government and other relevant stakeholders should give more emphasis to the
availability and use of improved seeds, fertilizer and other yield enhancing technologies,
improved post-harvest practices and handling, options access to credit, possibilities to
consolidate land for technology use and economics of scale, and further support sesame
value chain. Such information may be included in state extension programs for
dissemination to all stakeholders who are involved in the sesame seed value chain.
 Expansion of rural road infrastructures in the study area to reduce transport costs, to
attract private investment.
 Strengthening the currently started sesame marketing at woreda level market centers
through the provision of the warehouses in the major producing areas, establishing an
efficient supply chain that can benefit most to producers, Establishing branch ECX at
regional level and create public awareness through different media and providing training
to producer to sell directly to the ECX.
 Build the capacity of whole sellers to upgrade to exports, Improve the relationship
between each actor, Strengthen export promotion to increase export share in existing
destination new markets.
 Improve market intelligence competitive power of the traders can be increased by
knowing the markets, the buyers as well as the competitors.
 Provision of updated and timely market information to the farmers will enable them to
increase the bargaining power.
 Thus, value chain development intervention practitioners in sesame producing area
should take in to account the main value chain actors in the study area while devising
initiative strategies.
 Awareness creation between producers to sell their product through a right channel in
which they get the highest share.
 Further research should undertake on sesame value chain upgrading, sesame seed value
chain in the study area.

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