Feasibility Study Organic Prodcution MVC Project
Feasibility Study Organic Prodcution MVC Project
Feasibility Study Organic Prodcution MVC Project
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CONTENTS
1. MAIN ISSUES 5
1.1. Biodiversity and “New Crops”: allies against malnutrition 5
1.2. Women 6
2. THE SOUTHERN REGION 7
2.1. Geography and Climate 7
2.2. The Rural Livelihood Zones 8
2.3. Goma-Gofa 8
2.3.1. Population Size and Distribution 9
2.3.2. Population Density 9
2.3.3. Age Structure 9
2.4. Nessuna voce di sommario trovata.
2.4.1. Features of the Sector 16
2.5. Beneficiaries and Parties Involved 18
2.6. Problems to be Addressed 18
2.7. General Requirements for Organic Farming 19
3. PLANNED INTERVENTION 26
3.1. Site Description 26
3.2. Overall Objectives 27
3.3. Intervention Purpose 28
3.4. Intervention Results 28
3.5. Planned Activities 28
3.5.1. Provision of Moringa Organic Propagation Material 28
3.5.2. Laying-out of the Organic Production Scheme 29
3.5.3. Establishing and Cultivating Moringa Trees 29
3.5.4. Agricultural Intercropping and Rotations 29
3.5.5. On-farm Livestock Management 31
4. ASSUMPTIONS 32
4.1. Assumptions, Risks, and Limitations 32
4.2. Socio-cultural Aspects
5. IMPLEMENTATION 33
5.1. Organization and Implementation Procedures 33
5.2. Cost Estimates 34
5.2.1. Investment Costs 34
5.2.2. Recurring Costs 35
5.2.3. Nursery Costs 36
5.2.4. Production Revenues 37
5.2.5. Tentative Cash-flow 38
5.3. Economic and Financial Considerations 39
1. REFERENCES 39
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2. VALUE CHAIN 41
2.1. Main Features 41
2.2. Market Target Strategies 41
2.2.1. Raw Material Transformation 42
2.2.1.1. Seed Oil Production 46
2.3. Commercialization 47
3. MAIN FEATURES OF THE MORINGA MARKET 49
3.1. Background Situation 49
3.2. Vertically integrated system 50
3.3. Horizontally Diversified Trading 50
3.3.1. Supermarkets 51
3.3.2. Groceries 51
3.3.3. General Stores 52
4. INTERNATIONAL MARKETS 53
4.1. Global Trading 53
4.2. The European Market, an Overview 54
4.3. European Market Channels 55
4.4. End-Market Prices for Moringa Oleifera 55
4.5. Products Description 56
5. MARKET SEGMENTS TO TARGET 57
5.1. Food Supplements 57
5.2. Novel Food 57
5.3. European Market Perception 58
5.4. Interest in Organic and Fair Trade-Certified Moringa 59
5.5. Requirements for Moringa to be Allowed on the European Market
5.6. Requirements for Niche Markets 60
6. QUALITY STANDARDS AND CERTIFICATIONS 62
7. COOPERATIVES IN AGRICULTURE 62
7.1. The Role of Agriculture Cooperatives 63
7.1.1. The Cooperatives Principals 63
7.1.2. Equity and Essential Issues of Ownership 64
7.1.3. Coop Members Equity Structure 65
7.2. The Wezeka Cooperative 65
7.2.1. Cooperative Organization and Administration 66
7.2.1.1. Juridical Features 66
7.2.1.2. Procedure for the Cooperative’s Constitution and Registration 66
7.3. Cooperative Organization – Strategy 67
7.3.1. The Mission 67
7.3.2. The Vision 68
7.3.3. Objectives 68
7.3.4. Politics and Regulations 68
7.3.5. The Implementation Process 68
7.4. Requirements for Lease Financing 69
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8. WOMEN IN THE PROJECT CONTEXT 69
8.1. Gender and Nutrition 70
8.2. Methodologies and Indicators in Gender Participatory Approach 71
8.3. Women at the Wezeka Cooperative 71
9. MORINGA DEVELOPMENT OPPORTUNITIES AND CHALLENGES 72
9.1. Opportunities 72
9.2. Challenges 73
10. CONCLUSION AND RECOMMENDATIONS 73
11. REFERENCES 74
ATTACHMENTS 75
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1. Main Issues
Increased impact reliance of major food crops has been accompanied by a shrinking of the food
basket which humankind has been relying upon for generations (Prescott-Allen, 2006).
This nutritional paradox has its roots in the agricultural simplification, a process that favoured some
crops instead of others on the basis of their comparative advantages for growing in a wider range of
habitats, their simple cultivation requirements, easier processing and stability, tastes and so on (Ogle
and Rivetti, 1995).
The shrinking of agriculture biodiversity has reduced both the intra- and inter-specific diversity of
crops, increasing the level of vulnerability among users, in particular the poorer sections for which
diversity is a necessity for survival rather than a choice.
Leading international research organizations, such as the Consultative Group on International
Agriculture Research (CGIAR) successfully raised the interest of decision- makers.
This global “opening” towards underutilized crops is the result of a gradual change of attitude
towards biodiversity and plant genetic resources by many countries. Instrumental in this awareness
have been the 1992 Convention on Biological Dversity and the FAO International Technical
Secretariat2.
Since the needs and uses are mostly local, the action will therefore be local, and community based,
with local mechanisms that support the deployment of useful diversity. Household “filieres”, largely
run by women and built in rural and forest areas typically around multiple uses of the same crop,
should be improved. These chains, linking farmers up to final end-users, play a critical role in securing
revenues to rural communities and thus fuelling the very mechanism that will maintain the diversity
of these species in the field1 .
Moringa stenopetala is endemic to Southern Ethiopia and in North of Kenya and Eastern Somalia. It
is an agro forestry tree in the field; a staple food for millions of people living in the Southern part of
Ethiopia. The production can be characterized as informal and scattered, by small farmers and very
limited private growers. The primary production and consumption of Moringa in Ethiopia is informal
and very little attention is given to the production system and marketing and as such it is not even
recorded as an important crop/plant/tree in the livelihood system of the community.
1 S. Padulosi, T. Hodjkin, J.T. Williams and N. Haq; IPGRI, Italy and ICUC, UK – Moringa and other higly nutritious plant resources:
strategies, standards and markets for a better impact on nutrition in Africa – Accra, Ghana 16-18 November 2006.
2 Conference in Plant Genetic Resources for Food and Agriculture, held in Germany in 1996 (cifr. Activity 12: Promoting
Development and Commercialization of Underutilized crops and species (UNEP, 1992), (FAO, 1996), (CFAR, 1999).
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The Moringa Value Chain Project, which is the pilot phase of a more comprehensive program, aims
at adding value to the organic cultivation of Moringa stenopetala, from production to processing and
commercialization for national and European markets.
1.2. Women
Women are the nexus of agro-nutritional health through their roles as plants gathers, home
gardeners, plant domesticators, herbalists, medicinal plant collectors and seed custodians. Their
knowledge of biodiversity and their value for meeting the food, fodder, fuel wood, medicine, clothing
and shelter needs of their family, is crucial for securing the subsistence and development needs of
the poor segment of society.
Women farmers perform up to 75% of farm labour, representing 70% of household food production
in Ethiopia, but they typically produce 35% less than male farmers because they have lower levels of
access to resources.
Actively involved in the household economy, women control consumption patterns and can use a
wide diversity of plant species traded in the market for food and medicine.
Women have different and complementary knowledge than men. They differ in their perception and
thought process, their choice criteria, their preferences, needs, practices and uses of biological
resources. They receive, organize, and transmit their knowledge and skills by different means.
Women are powerful agents of change and their leadership is critical in community revitalization and
renewable natural resources management (CBD- 2013-UNEP).
MVC Project aims to add value to the role of women, from their traditional knowledge to new forms
of capacity. The Project is aimed at identifying appropriate resources and technology to improve the
production of local relevant crops, and to increase food and nutrition security.
The importance of gender equality and women’s empowerment, particularly women’s economic
empowerment, is at the core of the UNIDO mandate. Enhancing the role of women as drivers of
poverty reduction, promoters of food and nutrition security, as well as recognizing the link between
gender equality and safeguarding of the environment, promotes inclusive and sustainable
industrialization, and directly contributes to Sustainable Development Goals (SDG).
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2. THE SOUTHERN REGION
The Region’s cool highland terrains are not extensive, but they are densely populated. Notable
highland areas are in Gurage and Hadyia Administrative Zone in the north- east, in Sidama and Gedeo
Administrative Zones where they form a south-western leg of the Arsi-Bale massif, and in the Gamo
and Gofa highlands of the centre-south-west. The dominant, temperate midlands are relatively wet
or dry mainly depending on their altitude within the range of roughly 2500 to 1500 meters above sea
level, and this has an effect on the relative success of enset (Ensete ventricosum / “False banana”) or
coffee production, to name two key products. The main lowland areas stretch to the south-west and
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west, mainly in South Omo and Bench Maji Administrative Zones, and with their relatively high
temperatures and low rainfalls they are the scene of agro-pastoralism. Elsewhere there are smaller
areas of more arable land, for instance surrounding lakes Abaya and Chamo in the Humbo, Aeba
Minch Zuria and Amaro Special Woredas and further south in Dirashe and Konso Special Woredas.
But the relatively narrow Bilate river valley is more or less agro-pastoral lowland.
SNNPR is a region of relatively high rainfall by Ethiopian standards. Few Woreda reporting stations
show under 1000mm of annual precipitation in the 30 years period of 1971-2000. Those that do are
lowland areas such as the Hamer rangeland (601mm.) and the lowlands around Lake Abaya (around
900mm.) whilst Konso (609mm.) has the lowest rainfall for an arable area, and this is where a
traditional technique of land terracing helps to conserve soil moisture. By contrast the highest rainfall
is found in the north-western area of Masha Anderacha (2180mm.), Gesha (2004mm.), Yeki
(1776mm.) and Bench (1735mm.). Elsewhere the Limu area scores high (1811mm.), as does the
Gamo highland at Chencha (1704mm.). The range for most of the midland of the centre, north-east
and east of the region, where the majority of the Region’s population live, is between 1100mm. and
1500mm.
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insecurity due to a combination of factors: high population density, therefore small landholdings for
most households; low soil fertility; frequent rainfall irregularities; endemic trypanosomiasis; relative
isolation, with poor roads and market access, as well as poor coverage of health and education
services. Less than one in five households is normally self-sufficient in staple food production. The
food crops are maize, enset, sweet potatoes, taro, teff and yams. Enset and roots are important
against losses of the less drought resistant maize. The primal need for food forces the poorer majority
of households to cut their enset before it matures (after 4 years), so that two thirds of the potential
food from the plant is lost. Although all wealth groups sell crops to some extent, none make as much
as half of their annual earnings from this. It is livestock and butter sales that bring in some 20% of the
annual cash earnings for the poor and very poor, and this is made possible by the system of caring
for the stock of richer owners in return for a share of the milk and sometime the progeny. The very
poor also gain about 20% of their income from selling firewood and collecting grasses. However, by
far the main source of cash for all the poorer households is casual employment, including migrant
work on state farms in Jinka, Awash, Shashamene and Ziway3.
Population density can be defined as the average number of inhabitants per square km. The total size
of the region’s population in 2003 was estimated to be 16,825,392, while the total area of the region
(109,015 Km2) accounts for 20% of the total national area. Hence in 2003 the crude population
density of the region was 154 inhabitants per square km.
There is a remarkable variation in population density from one zone to another. The most densely
populated zone of the region is Gedeo (707p/km2) followed by Kambata-Tembaro (567p/km2), whilst
the least populated zone is Debub Omo (28p/km2) followed by Bench Maji (38p/km2).
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2.2.4. Age Structure
Southern Nations Nationalities and Peoples region, like other regions of Ethiopia, has a youthful age
structure. According to the projected population of CSA, in 2011 about 48% of the population was
under age 15 and the elderly (65+) accounts for 2%, totalling 50% of the population which is
economically unproductive. The remaining belongs to working age population (aged15-64) and
accounts for about 50% of the total region’s population.
The population pyramid of SNNPR has a broad base that implies a very large proportion of the
population belongs to younger age groups. The pyramid is the result of very high fertility since new
births are naturally added to the bottom, producing a broad-based age and sex distribution.
3.1. Abstracts
The present study investigates the feasibility of establishing a Moringa stenopetala organic
production system over 30 ha of land at Wezeka Kebele, Arba Minch Zuria Woreda, Gamo Gofa Zone,
organised and managed according to general standards applied for national and international organic
certification, meant to facilitate / create increased market opportunities for Moringa
commercialisation, improve household food security and representing a sustainable land-use model
for out-growers.
The purpose of the intervention is to ascertain the level to which both the farming community and
consumers may benefit (economically, environmentally, physically and from a nutritional point of
view) from the implementation of an integrated resource utilisation system designed to optimise
land, plants, and animal interactions, thus satisfying human needs at both ends of the value chain
while sustaining / enhancing the quality of the environment for future generations.
Such enterprise will demonstrate viability of organic Moringa production by a Public Private
Partnership between a local resident cooperative and Woreda Administration, able to efficiently
participate to the Moringa Value Chain initiative as a mean of adding-value to Moringa and other
local agricultural products.
The foreseen system considers a local resident cooperative established with MVC Development
Program supporting the scheme for organic crop production in return for tendering Moringa trees.
Fresh products (leaves and seeds) will be sold locally to the entity running the process and BoANR,
jointly running the productive process under an agro-forestry scheme, with individual cooperative
members within the plant being established at the Wezeka Kebele Moringa pilot project site. A
Right’Use Contract will be subscribed between BoANR and the Wezeka Cooperative (formed by the
110 beneficiaries; the appropriate economic structure shall be suggested to ensure the sustainability
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of the project and the benefit of the entire communities).
3.2. Background
According to the Project's Interim Progress Report of July 2017, in its work plan for the months of
August to December 2017, the preparation of a Feasibility Study on Moringa Organic Production is
seen as one of the main Project activities (together with the development of production and product
standards, definition of Moringa value chain, and training), primarily needed for furnishing a
reflection on new Project priorities in the present initial pilot phase.
Local Woreda Authorities, with Project support, have lately endeavoured to identify, secure, and start
developing a first portion of some 5 ha within an allocated area of about 30 ha, placed on the western
shore of Lake Chamo, pertaining to Wezeka Kebele, Gamo Gofa Zone in Arba Minch Zuria Woreda,
south of Arba Minch city, which has been set aside for the establishment of a Moringa nursery, block
plantations, and a pilot Moringa processing line for the production of oil, leaf powder and tea, as part
of its field activities. It is within the above estate that the present proposal for Moringa organic
cultivation has been provisionally located.
In the same Kebele, 110 beneficiaries mainly constituted by women, have undergone social coaching
and basic training in the subjects of nursery operations, Moringa production and processing, and
value chain. It is assumed that such labour, together with further personnel that will be trained during
the remaining pilot phase of the Project’s lifetime will constitute the nucleus of the workforce to be
considered in the framework of the present feasibility simulation.
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studies have leaned towards a relationship with the Carricacee. This indicates that the taxonomic
position of the family is not yet settled and is open for further research. Its seed physiology has not
yet been studied in the tropics in general and Ethiopian in particular (Asian J. Applied Sci., 2011).
According to Edwards et al., (2000) Moringa stenopetala is a tree 6-12 m. tall, with a trunk about
60cm in diameter at breast height, a crown strongly branched sometimes with several branches, a
thick base, a white and pale grey or silvery smooth bark, a soft wood, and leaves up to 55cm long,
with a pubescent and dense inflorescence with many flowered panicles 60cm long.
The genus stenopetala is known by different vernacular names such as Shiferaw (Am), Aleko, Alike,
Halaco (Gam/Wol), Kallanki (Ben), Halako (Bur), Cabbage tree (Engl) (Edwards et al., 2000) (Dechasa,
1995; Demeulenaere 2001).
The genus follows the distribution pathway from Rajastan (India) (Mark, 1998). The habitat where
the genus occurs in Ethiopia as summarized from the herbarium vouchers of the national herbarium
includes: rocky areas along rivers, dry scrub land, Acacia-Commiphora bush land on grey, alluvial soil
and in cultivation around villages. Moringa stenopetala is cultivated in terrace fields, gardens and
small towns (Edwards et al., 2000; Endeshaw, 2003).
The National herbarium has few collections of Moringacee; the overall collection was from Gamo
Gofa (Endeshaw, 2003). There are small seed collections of Moringa species at the Institute of
Biodiversity Conservation and Research from Gamo Gofa: However, the viability of the seeds has not
yet been tested. There is no information documented on Moringa stenopetala localities in the
eastern and northern parts of Ethiopia. It is not clear whether this was due to a lack of exploration in
the area or to the absence of the species in the area (Edwards, 2003).
Moringa stenopetala grows naturally in the acacia Tortilis-Deloni sp. vegetation-complex. This type
of vegetation is often found in well-drained soils at altitudes of 900-1200 m. The species is quite
drought resistant and is therefore particularly suitable for dry regions, as it can be grown using rain
water without expensive irrigation techniques. In southern Ethiopia, it has been found in areas of
annual rain ranging between 500-1400mm. Cold temperatures are a limiting factor for the cultivation
of the specie in Ethiopia because it does not tolerate frost (Moges, 2004).
Origin:
Moringa stenopetala is often referred to as African Moringa tree, because it is native only to southern
Ethiopia and Northern Kenya (Mark, 1998). Though it grows in many other parts of the tropics, it is
not as widely known as its close relative, Moringa oleifera.
Uses:
The edible parts are exceptionally nutritious (Ram, 1994; Jiru et al., 2006). The leaves are one of the
best vegetable foods that can be found in the locality. All parts of the tree except the wood are edible,
providing a highly nutritious food for both humans and animals. The flowers are a good source of
nectar for honey bees and can be eaten or used to make a tea. The seeds are rich in oil sources for
cooking and lubricant uses. Many parts of the plant have been used in medical preparations. The
wood is very soft, useful for making low-grade firewood and poor-quality charcoal. Attracting
attention in recent decades is the use of the dried, crushed seeds as a coagulant (Jahn, 1984; Ram,
1994). Even very muddy water can be cleared when crushed seeds are added. Solid matter and some
bacteria will coagulate and sink to the bottom of a container. The clean water can then be poured off
and boiled. It is reported that 100mg of crashed seeds clean 1 l. of muddy water (in India and localities
East Africa (Gupta and Chaudhuri, 1992).
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Among the various uses of Moringa, a few others are outlined below.4
Alley cropping/Intercropping:
With their rapid growth, long taproot, few literal roots, minimal shade and large amount of biomass
held of high protein content, Moringa trees are one of the best MPT (Multipurpose tree) candidates
for use in alley cropping system. Traditionally, the species is grown in mixed multi-story stands with
food crops. For instance, around Arba Minch, farmers plant in their home gardens around 5 (and
sometimes up to 15) Moringa trees per 0.1 ha. Farmers practice permanent multi-storied cultivation
with Moringa stenopetala at the uppermost level; papaya, coffee and bananas in the upper-middle
level; cassava, maize and sugar cane in the lower-middle level and cotton and pepper in the lowest
level.
Soil fertility:
Moringa leaves can be easily processed for their concentration of cytokines to replace chemical
fertilizers which are harmful to the long-term health of soil. It is important that these simple advances
in farming technology continue to spread throughout the developing countries whose life depend on
agricultural export will benefit greatly from small advances in agricultural innovations and natural
alternatives to industrial farming practices.
Animal feed:
Leaves are readily eaten by cattle, sheep, goats, pigs, rabbits, and fish. Moringa stenopetala produces
an excellent fodder, as it is reported by many Authors. The tree is a great indigenous source of highly
digestive proteins, calcium, iron and multivitamins, which are essential for weight gain and increase
in milk production.
Fertilizer:
The seed cake, although unsuitable as animal feed without treatment to remove the alkaloid and
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saponin content, can be used as a nitrogen-rich plant fertilizer.
Gum:
The gum produced from a cut tree trunk has been used in calico printing, in making medicines and
as a bland-tasting condiment.
Honey purifier:
Powdered seeds can be used to purify honey without boiling. Seed powder can also be used to purify
sugarcane juice.
In developing countries, Moringa trees have been used to combat malnutrition, especially among
infants and nursing mothers. The young leaves can be eaten fresh, cooked or stored as dried powder
for many months without refrigeration, and without loss of nutritional value. The plant is a promising
food source in the tropics because the tree retains full green leaves at the end of the dry season when
other food sources are typically scarce. According to Optima of Africa Ltd, (a company involved in
harnessing the tree in Tanzania), 25 g. daily of Moringa leaf powder will give a child the following
recommended daily diets; protein 42%, calcium 125%, magnesium 61%, potassium 41%, iron 71%,
vitamin A 272% and vitamin C 22% (Donovan, 2007). These percentages are considered outstanding,
being available when even other food sources are scarce.
Jim et al. (2006) reported that for a child aged 1-3 a 100g serving of fresh leaves would provide all his
iron and half his protein needs, as well as important supplies of potassium, B complex, vitamins
copper and essential amino acids. As little as 20g of fresh leaves would provide a child with all the
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vitamins A and C it needs.
For pregnant and breast-feeding women, Moringa leaves and pods can do much to preserve the
mother’s health and pass on strength to the foetus and nursing child. Just 20g of fresh leaves will
satisfy all her daily requirements of Vitamin C. One portion of leaves could provide a woman with
over a third of her daily needs of calcium and give her important quantities of iron, protein, copper,
sulphur and vitamin B.
Nutrition experts recommend that proteins (or amino acids) should account 10-15% of the calories
in a balanced diet, although requirements for protein are affected by age, health, weight and other
factors. Generally, a normal adult requires approximately 0.36g of protein per pound of body weight,
or 0.8g of good protein per kg. That makes a total of 50-80g of daily proteins that are made up of
amino acids. There are 20 amino acids present in the human body; of those, nine are known to be
essential and have to be supplied from diet since the human body cannot synthesize them, as it does
with the other 11 amino acids. Few foods are known to contain all essential amino acids. The nine-
essential amino-acids are: histidine, isoleucine, leucine, lysine, methionine, phenylalanine, theorize,
tryptophan and valine. Histidine is considered essential for children and babies.
It is commonly said that Moringa leaves contain four times more vitamin A than carrots, four times
more calcium than milk, three times more iron than spinach, seven times more vitamin C than
oranges and three times more potassium than bananas, and that the protein quality of Moringa
leaves compete that of milk and eggs.
Leaves and pods of Moringa stenopetala can be an extremely valuable source of nutrition for people
of all ages.
Official government involvement in supporting organic farming started in 2003 with the
establishment of a Task Force to outline an Ethiopian Organic Agriculture Regulation, designed to
describe a general definition of organic production in the country and define the regulatory
framework for growing and processing.
In March 2006, the Government issued Federal Negarit Gazeta: Proclamation No. 488/2006, to
establish “The Ethiopian Organic Agriculture System” to support organic agriculture as a means to
foster new market access, opening opportunities for better competencies in the international
market, and facilitating conversions of Ethiopian agriculture while helping in conserving non-
renewable natural resources.
The Ministry of Agriculture has subsequently appointed, as required, a Focal Person for Organic
Agriculture, while a number of government institutions have started developing national organic
standards and regulations for productive systems and particular products, or crops.
Subsequently a number of national and international NGOs were instrumental, through their projects
supporting the organic sector development, in establishing and institutionalising the Ethiopian
Association of Organic Agriculture (EAOA), today recognised as the umbrella organisation for
supporting organic agriculture in Ethiopia. In 2007 EAOA developed a Strategic Plan with five pillars
to guide its future activities to enhance the organic sector by networking actors and operators in the
country.
Afterwards, in 2013 the Ethiopian Standard Agency (ESA) produced Ethiopian Standard ES ARS
751:2013 regarding the Code of Practice for Organic Products, following a similar document
published by the African Regional Organisation for Standardisation, to which the present feasibility
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study adheres.
At present there are no official local certification bodies / laboratory facilities operating in the country
though EAOA is lobbying the government to appoint a local certification company under the
Ethiopian Standard Authority (ESA), particularly for what concerns national organic certification.
International certification and inspection has however taken place in the country since the 90s, with
the first company established and operating in Ethiopia being Ecocert, a French company. Today four
international organisations are offering organic certifications: IMO, Ceres, BCS, and Control Union,
with BCS certifying most of Ethiopian organic production according to ESA, European Commission
Regulation (EC) No 889/2008 operating Council Regulation (EC) No 834/2007 on Organic Production
and Labelling, US National Organic Program (NOP) or organic Japan Agriculture Standards (JAS).
Furthermore, for what specifically concerns Moringa safety / nutritional standards, being considered
an herbal food supplement, its safe production and manufacturing will fall under the regulatory
mandate of the Ethiopian Food, Medicine and Health Care Administration and Control Authority
(EFMHACA), established by Regulation 189/2010 implementing Proclamation No. 661/2009, and
Ethiopian Public Health Institute (EPHI).
It may therefore be assumed that besides the Organic Certification, Moringa leaves either prior to
the manufacturing process (at farm gate as raw material) or before commercialisation as herbal tea
or powdered into food supplement (finished product before entering the market) will be subject to
inspection / quality control in terms of elements such macro and microscopic examination, presence
of foreign organic matter, ash values, moisture content, extractive values, crude fibre, qualitative and
quantitative chemical evaluation, chromatographic examination, and toxicological studies.
Finally, the Ethiopian Standards Agency (ESA) has lately produced standards for Moringa leaves,
recently published, to which the Organic Farm production, once implemented, would eventually be
called to comply with.
For what concerns organic Moringa products being made in Ethiopia, the following is a brief list of
some national and international enterprises active in the sector:
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Table 1. National and International enterprises of organic Moringa products
Traditionally, high-grade Moringa plants have been identified through mass selection, based on best
phenotypes and their adaptation / general performance in local environmental conditions.
Productive parameters in terms of yield of leaves and pods, more than having been directly targeted,
have rather accidentally resulted as a consequence of the above selection process, and rest largely
unknown.
Moringa stenopetala leaves (either powdered or consumed as such) are part of the traditional food
intake (i.e. damaa) mainly in the southern portion of the country, where it is considered as an
important food / supplement on which the rural family heavily relies.
Being utilised “based on availability”, Moringa leaves are mainly consumed at family level, and only
when exceeding family needs would it then enter, often informally and in relatively limited quantities,
the (mainly local) market. No wonder that in such a situation, market quantitative and qualitative
information regarding this trade appears very difficult to obtain. Locally, 1kg of fresh leaves is sold at
around 50 ETB, and fresh seed pods at 100 ETB; in Addis Ababa, a 1kg packet of Moringa leaves
powder sells between 50 – 200 ETB.
Eventually, for what concern the limited quantities of organic powder / tea being commercialised by
the above-mentioned companies, it can well be that the production may primarily come from
Moringa individual trees that happen to be placed on organically certified farms (mainly producing
other crops) rather than originating from specific organic Moringa plantations.
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3.4. Beneficiaries and Parties Involved
As the project has already proceeded in selecting and training a total of 110 beneficiaries and 10
trainers, starting the process of training local villagers (predominantly women and young people) in
organisation and empowerment, it is proposed that the said group, having received adequate training
on Moringa production and processing techniques, good agricultural practices, good manufactured
practices and sustainable use of products and by-products, be involved in the planned Moringa
organic farming scheme, under direct supervision of a BoANR .
Moringa stenopetala cannot however hope to compete with Moringa oleifera as far as growth
parameters are concerned: the former is adapted to harsher environmental conditions, is rich in
lignine and cellulose content, grows more slowly, reaches productive capacity later, and shows but a
fraction of the latter productive capacity either in leaves or pods being annually produced.
This may also be due to the higher genetic variability encountered in Moringa stenopetala in
comparison to Moringa oleifera.
Thus the risk of growing Moringa stenopetala under an organic production system in irrigated blocks
as monoculture, apart from limited experiences being made in Ethiopia on most suited cultivation
techniques of this kind, and high related production costs in terms of irrigation, fertilisation, and
heavy labour requirements when compared with the overall productivity/ha/year, although
optimising biomass production, do increases manifold the risk of the proposed investment being not
rentable mainly because of excessive costs related to increased labour needs (over 130% compared
with non-organic requirements), together with the system being scarcely suitable for organic
farming.
Moringa stenopetala has competitive advantages in the project area over oleifera only when
cultivated under mixed rainfed / localised irrigation conditions. This is within schemes that more
strictly resemble traditional agroforestry systems, or intercropped with vegetables, grains, etc, with
Moringa being established at a more extensive 3/4 x 4m or more spacing, allowing the plant sufficient
land and specific role within the chosen agro-ecosystem constituted under appropriate organic
farming protocols.
In these schemes, such as the one that is presently under consideration, the farmer will be asked to
provide labour for tendering Moringa trees as a part of its normal daily workload (apart from planting
18
and harvesting and nursery’s establishing, that will be remunerated), thus constituting an “in kind”
contribution / compensation to investments being done under the proposed system, hence
substantially decreasing the cost of organically produced Moringa, since these costs are mainly
consisting of labour.
In fact, the species is already presently grown intercropped in mixed multi-story stands with food
crops, and farmers therefore are aware of benefits and advantages of the system. Home gardens in
Ethiopia (Arba Minch area) for instance, include at least 5, and sometimes up to 15 Moringa
stenopetala trees per 0.1 ha.
In such instances farmers practice permanent multi-storeyed cultivation with M. stenopetala at the
uppermost level, with Carica papaya, coffee in the upper-middle level, cassava, maize (but maize is
very demanding on Nitrogen) and sugar cane in the lower-middle level and cotton and pepper in the
lowest level. This incidentally also appears the system most suited for perspective organic farming as
recommended by international and national standards, see following chapter for details.
Eventually, if the Feasibility Study must restrain itself, as per given ToRs, to the establishment of
Moringa stenopetala species, then the preferred solution for cultivating this tree crop under organic
farming will entail its farming within a bio-diverse productive method that may exploit the full
potential of plant interaction: 2/3 of the land in an agro-forestry system for seeds production, and
1/3 of semi-intensive cultivation for leaves and pods production.
19
• organic material to be returned to soil to retain humus; it must be a product of organic farms
or other sources free from toxic substances, and farms must become self-sufficient in producing
such organic material;
• pest and weed control to be resorted by rotation of crops, activating natural enemies,
companion planting, predator management, mechanical / physical elimination. Botanical plant
extracts (neem extract and cow urine) can be used, genetically engineered organisms of
products not permitted;
• cultivation is to guard against pesticide/weedicide contamination and inorganic fertilisers
leaked by other farms through irrigation run-off and drainage;
• soil loss through erosion and depletion of water resources to be consciously prevented;
• organic produce to be stored, transported, and conveyed to final consumer in its most original
state; storage to ensure that care taken at cultivation is not lost by association with non-organic
productions;
• transportation must be appropriate to the product so as to minimise damage;
• pests at storage and processing must be controlled by physical barriers, sound, air, and light.
Temperature and atmospheric control is permissible. Botanical extracts and herbal pellets can
be used for preservation;
• mixture of organic / non-organic products must be prevented during processing. Additives or
substances altering organic nature of produce to be avoided;
• processing to be based on mechanised, physical and biological means;
• packaging must prevent material contact to diminish organic purity of produce. Biodegradable
material to be preferred for packing. Waste / pollution generating packages to be discouraged;
• conformity to labour ILO conventions is required. Equal wages to be paid for equal tasks;
Women and children rights not to be violated;
• Organic farming encourages employment, thus all steps in producing organically are to be
employment-enhancing;
• direct sales by producers to be encouraged; intermediaries are to demonstrate that price
benefits are transferred to producers;
• labelling must declare whether it is fully organic or from farm under conversion. Where
geographic appellation is used, the product must be from that geographic region;
• showing ingredients is essential on labels of processed items, unless spices used are less than
2% on weight. Not obvious processing steps are to be indicated;
As far as baseline requirements of organic farming and processing are concerned, the following
indications are furnished:
Soil:
is the living matter in which the seed is nurtured and the plant raised, it is therefore central to organic
farming? This does not include hydroponics, aeroponics. It should be rich in organic content and
biological activity. It should remain properly aerated and with good moisture retention capacity, free
of toxins deriving from residues of chemicals, fertilisers, pesticides, etc. soil and water conservation
measures should be integral part of organic farming practices.
Cropping pattern:
to actively promote best intra / inter specific diversity, follow proper rotation schedules and other
cultural practices to minimise external inputs; use of trap crops and companion planting to be
encouraged. Crop planning should keep a balance between different produce such as food, fodder,
fibre, fuel, etc. Multipurpose crops intended to help self-sufficiency on such aspects to be
encouraged.
Farm Inputs:
It should largely be produced on-site with low dependence on external inputs. It should maximise re-
use and recycling of organic matter on the farm. It should employ animal traction when feasible.
Fertilising:
Organic manures and other organic nutrients, produced mainly on-farm should be utilised. Use of
crop rotation, companion planting etc. should form the basis for mobilising synergistic effect towards
nutrient supply. Care is to be taken to reduce forms of pollution such as nitrate leaching or nutrient
losses through sun exposure, soil, water, and wind erosion, with thrust always given to maintain and
improve.
Animal/Livestock Fodder:
Livestock is an important and integral component of organic farming to cater for needed agricultural
farming operations and transport, and to convert green matter into soil nutrients, to the maximum
extent possible. Fodder should be grown on-farm with minimal external sourcing, with animals being
well kept in accordance with natural behavioural need of the same and given proper veterinary care.
Harvesting:
Should be done in accordance with general principles of organic farming; no synthetic chemicals to
be allowed either before or after harvest to cater with market needs.
Processing:
Should utilise methods that enhance or maintain nutritional quality of the produce being processed.
21
Non-acceptable to introduce synthetic chemicals such as preservatives, anti-oxidants, emulsifiers,
leavening or flavouring agents for increasing shelf-life, colour, taste or appearance. Process to be
preferably adaptable and friendly towards small scale operations.
Labelling:
Should be clear and specific, without any attempt to mislead the consumer in terms of content, or
nutritional value. It should describe the method of production if it is not totally organic. Products
generated in farms under conversion to organic should likewise be suitably labelled.
Marketing:
Marketing strategies and practices will be in accordance and will respect intellectual property rights
of traditional societies, or people in general. Local knowledge and practices utilised into the entire
process to be recognised and prior informed consent of the collective be taken, in written form,
before making claims of statements in the context of intellectual property.
It is accepted that organic practices require a period of conversion to give the operator time to adapt
and refine production activities according to the productive environment. The system supporting
production, in terms of soil, livestock, etc., may also need time to expel possible residues of chemicals
and respond to the changed environment.
General Principles:
- Seed and plant material Standards:
should be certified - If certified organic seed and material not
organic. available, chemically untreated conventional
- Species and varieties materials shall be used.
adapted to soil and - In absence of alternatives chemically treated
climatic conditions, and seed and planting stock may be used.
resistant to pests and - Certification programme defines conditions for
diseases. exemptions and time limits for use of the above.
- While choosing - Use of genetically modified seed, transgenic
varieties, genetic diversity stock not allowed.
should be taken into
consideration.
2. Crop Rotations
22
General Principles: Recommendations: Standards:
- Rotation to be as varied - Rotations to include - Certification programme to require rotation of
as possible aimed at: legumes. non-perennial crops to take into account
maintain soil fertility, - Perennial crops/plants pressure from insects, weeds, diseases and
reduce nitrate leaching, as border plants be other pests, while maintaining or increasing soil
weed, pest, and diseases. promoted. organic matter, fertility, microbial activity and
soil health.
3. Fertilisation Policy
23
soils with high bio- - Natural enemies of pests - Use of synthetic herbicides, fungicides,
activity, rotations, etc be protected and insecticides and other pesticides be prohibited.
companion planting, encouraged by habitat
green manures etc. management (hedges,
nesting sites).
5. Pollution Control
General Principles:
- all measures to be
taken to minimise
pesticide
contamination from
outside and within
farm by wind drift,
drainage and
irrigation.
24
8. Labelling
Permitted Organic Manure may include manures produced on the farm, such as compost, farmyard
manure, biogas slurry, liquid manure, organic waste, green manure and straw manure, commercially
available organic manures such as manure, liquid manure or slurry, straw and other plant material,
processing bio-products as addition to farm manure like horn, bone, blood, meat meal, feather, waste
fruit processing, or seaweed products, saw dust and bark shavings (not contaminated), peat with no
synthetic additions, brought in supplementing mineral fertilisers as rock dusts, pulverised earth, lime
fertilisers, natural rock phosphates, basic slag and potassium fertilisers having less than 3% chloride,
or other miscellaneous such as water soluble seaweed extracts, or extracts and preparations from
plants.
Permitted measures and substances for plant treatment and protection include, for biological
control, crop rotation, mixed cropping and nutrient balance in soil, encouragement of natural
enemies such as birds, lizards, predator mites, wasps, etc., insect traps, mechanical scarcer, traps,
slug and snail barriers, non-synthetic repellents, botanical plant extracts such as neem, tobacco,
garlic, onion, papaya etc., biodynamic preparations and methods; additional plant protection
measures may include preparations which enhance resistance of plants and limit certain pests and
diseases. Measures against animal pests include viral, fungal and bacterial (i.e. Bacillus thuringiensis)
preparations, sterilised male insects, pyrethrum products, use of storage protections, quassia wood
tea or broth, vegetable oil emulsions, soft soap/potassium salts of fatty acids, calcium chloride, or, as
measures against fungal diseases, wettable sulphur in combination with bentonite, waterglass, rock
dust, lime sulphur, copper for emergencies only, at the rate of 3 kg/ha/year, coffee, gelatine, ethyl
alcohol, diatomaceous earth, neem.
Finally, parameters for farm certification include soil analysis such as pH and electro conductivity,
25
water holding capacity, texture, nitrogen, phosphate and potash, microbial population, earthworm
density and diversity, toxic residues and presence of trace elements, while water analysis will include
definition of main physical and chemical parameters.
4. PLANNED INTERVENTION
According to traditional Ethiopian customary classification, the area may be classified as an upper
“Kolla” zone, bordering however temperate highlands or “Woina Dega”. As far as natural vegetation
is concerned, Wezeka Kebele in Gamo Gofa is characterised by a prevalence of Hyparrhenia
filipendula-Combretum molle associated perhaps in relation with frequent bushfires, as Hyparrhenia
is commonly considered a pyrophyte graminae.
Soils are mostly sandy loams, usually well drained, with little phosphate content available to plants,
and pH that may be considered as neutral / sub-neutral (7/7.5) thus being generally well suited for
Moringa cultivation provided adequate fertilisation is secured.
The location as depicted below is considered as being eligible for organic certification since local
Government Agricultural Services report a period of well over three years during which the selected
farmland has been free from application of prohibited agricultural chemical inputs (chemical
fertilisers, pesticides, herbicides).
26
Fig. 2: Map of the Project Site, Inception Report, July 2017
Regarding irrigation, lake Chamo water quality is presently unfitted for sustained agricultural
irrigation purposes. The lake is considered, in fact, as being heavily polluted especially in terms of
nitrogen and phosphorus content while its salinity / alkali content has lately reached worrying
concentrations mainly due rapid population growth and riverine agricultural developments, on-going
land degradation in the watershed, turbidity of tributaries etc.
27
4.4. Intervention Results
An organic certified productive system for the integrated production of Moringa stenopetala, and
other cash and food crops, is established over an area of 28 ha for productive and demonstration
purposes on the land rendered available for the Moringa Value Chain Project by Local Authorities at
Wezeka Kebele.
Such enterprise will demonstrate viability of organic Moringa production by a Public Private
Partnership between a local resident cooperative and Woreda Administration, able to efficiently
participate to the Moringa Value Chain initiative as a mean to add-value to Moringa and other local
agricultural products.
Under the foreseen system, local resident cooperative and BoANR will jointly run the productive
process, with individual cooperative members. Farmers who want to participate in the cooperative
as out-growers will be supported by the cooperative (and BoNAR and the Project).
The labour contribution of women should be highlighted by creating a “collective nursery”. The
collective nursery (0,50 ha) will facilitate the control of the genetic characteristic of the varieties
propagated. The nursery is formed by a “seedbed” and a “growth area”. Related costs will be covered
by the project.
Considering the genetic variability of Moringa stenopetala, it is proposed the creation of a “clonal
garden”. In the clonal garden the genotypes, previously selected through “mass selection”, will be
planted and then evaluated. The best genotypes will be propagated; in this way the good quality of
the new plantation is guaranteed. Good growth can be achieved by utilising young seeds and by
providing a good management of the seedbeds (the substrate must be of good quality).
Local varieties would be used to avoid poor rate or growing. It is important to provide organic
phytosanitary treatments (copper and sulphur to avoid dumping).
About 120.000 organically produced seedlings will be purchased from the nursery established at
Wezeka Kebele under the MVC Project. The production will take place on a separate portion of the
nursery so as to respect organic productive standards, including controlled seed provenance (either
from organic farms or from local sources not utilising chemical fertilisers or pesticides). In addition,
support in this field may be provided by EOSA (Ethiopian Organic Seed Action).
Seedlings will be raised into 1kg polyethylene bags, avoiding chemical fertilisation and pest
treatments, which should only include permitted substances (compost with animal manure,
treatments with neem / pyrethrum extracts, etc.).
28
4.5.2. Laying-out of the Organic Production Scheme
An adequate portion of land to cover 28 ha plantation plus related services (1 ha and half - internal
road network, shades, store, stables and nearby manure, by-products, residues and compost
deposits, irrigation facilities) will be demarcated and developed, with allowances being made for
natural hedges, live fencing as buffers on boundaries, and fodder trees planting to isolate from nearby
cultivations and provide nesting places, attract pest predators, cater for livestock needs; indigenous
flowers strips be established to be used as beetle banks etc., as required under organic regulations.
All other agricultural operations such as pruning / pollarding, fertilising and pest control, irrigation,
general care and protection will be executed free of charge by the farmers/coop. members in return
for the land being allocated to them, for private organic agricultural production, as per Right’s Use
Contract, mentioned above, to be signed.
Other agricultural operations will include: at least three pruning to be done in the course of the 1st
year to keep the tree at a reasonable height (3-4 m) and given its correct shape by enabling lateral
branches to the maximum extent. Maintenance pruning is to be executed in following years at the
beginning of the main rainy season. Fertilisation with manure / compost is to be done twice a year,
before small and main rainy seasons.
Irrigation by rubber hose, watering can etc. Is to take place in dry periods of the year as part of the
normal watering of underlying crops. Manual weeding with hoe 4 times per year, leaving weeds
around the base as mulch; pests and disease control to be done as part of normal operations needed
for underlying crops, with organic permitted principles and products.
Harvesting leaves and pods to take place from 2nd year onward every 2 months (6 harvests / year),
with shears, sickle or knife, or by hand picking; pods to be harvested when becoming brown and dry
(for oil) or before (for fresh consumption).
Harvested leaves and pods will be brought to the cooperative's processing plant for sale. Due to the
relatively heavy workload involved and the particular care that needs to be given to this operation,
29
the activity will receive remuneration by the Project.
4.5.4. Agricultural Intercropping and Rotations
Organic Agricultural production will be based on intercropping (growing two annual crops together),
commonly a leguminous crop like beans, or a green manure crop, in alternating rows with a cereal or
a vegetable crop, and crop rotation either on a yearly basis or for Kiremt / Belg planting, in order to
diversify production, maximise benefits from land, conserve / increase soil fertility and limit pest
occurrence. As a reference, a number of combination of crops that complement each other well is
hereby given.
Appropriated and updated record-keeping regarding crops grown in individual plots each year will be
mandatory for the cooperative in order to ensure appropriate environmentally-friendly crop
rotations are followed by individual farmers, and record pest outbreaks, particularly those due to
defoliator moth (Noorda bliteallis) according to organic agricultural standards.
Regular monitoring by Cooperative and BoANR technical personnel will make sure organic
prescriptions are strictly followed and crops including Moringa trees are well maintained and
attended.
30
Fig. 3: examples of intercropping
31
Stables will be furnished with slightly sloping concrete floor so as to facilitate gathering of straw,
livestock manure and urine.
This option is only in case the organic manure provided by the farmers is not enough.
Compost can be prepared in firm site, after specific training activities.
Co-operative members working on the scheme will be required to deliver manure, crop residues,
leguminous fodder crops, green manures, etc. to the on-farm animal feed-lot, while fodder trees
planted along boundaries and roads will also be utilised as animal feed. Cattle will be utilised on a
rotational basis under cooperative control.
5. ASSUMPTIONS
General risks related to the organic sector development in Ethiopia include inadequate knowledge of
organic techniques by farmers, processors and exporters; a lack of governmental / private extension
services and training; high certification expenses; a lack of quality and consistency in organic inputs
and products supply; undeveloped local market and specialised research; and weak network in
coordination and mobilisation of human and financial resources.
Eventually, for what concerns possible local constraints, availability of labour may be an issue. It has
already been mentioned by Project authorities that daily transport of trained farmers from their
villages of residence to the demonstration plot / nursery site at Lake Chamo is presently seen as a
difficulty which is under consideration.
This aspect, together with generally higher labour inputs to be expected when following organic
farming protocols if compared with conventional agricultural methods, may result in a scarcity of
daily labourers, especially if these individuals would have other home or agricultural duties to be
performed elsewhere.
This may partially be eased by the prevision of allocating irrigable plots within the organic farm,
providing in many cases returns to farmers from private sale of organically produced crops,
considered to be well-above current levels of average daily wages earnable elsewhere.
It is here worth mentioning the importance for the Project, the local people committees and the
foreseen cooperative, to plan well in advance as part of the selection method, for perspective
members to have sufficient time availability as to guarantee that plots are not left unattended.
32
needed market opportunities, while substantially contributing to fighting food and nutritional
insecurity, and enhancing the role of women together with their perception and standing within the
local society.
6. IMPLEMENTATION
Individual cooperative members and their families will cultivate Moringa trees and underlying organic
agricultural / horticultural crops, retaining for private consumption / sale all crops from the members
organically produced herein. Moringa products (leaves and pods) will be sold by the members to the
cooperative, but a share of the amount paid by the cooperative will be destined to the Fund of the
company.
The cooperative will therefore retain its demonstration / productive role, with BoANR, the Project
Manager, and its local staff remaining in charge of investment costs and its maintenance, extension
/ training organisation, technical supervision and management, etc. The Cooperative will also be in
charge of nursery production and sales to private growers, Moringa processing and marketing.
33
6.2. Cost Estimate
Cost estimates for the proposed intervention have been set as follows:
6.2.1. Investment Costs
Organic Moringa Farm - Investment costs
Investments related to a 30 ha farm of which 28 ha being cultivated
Item Unit Q.ty Unit Cost (€) Total cost €
Land Improvement
Clearing, cutting, and disposing of residuess ha 28 200,00 5.600,00
Mechanical land levelling ha 28 150,00 4.200,00
Fencing n. 1 6.000,00 6.000,00
Establishing Moringa for seeds production, 825 plants/ha * ha 18,5 1.650,00 30.525,00
Establishing Moringa for leaves production 20,000 plants/ha
ha
* 9,5 20.000,00 190.000,00
Total Land Improvement 236.325,00
Construction
Low technology irrigation & drainage network ha 28 10.000,00 280.000,00
Shades and storage facilities n. 2 30.000,00 60.000,00
Stables, livestock management structures n. 1 40.000,00 40.000,00
Roads and paths network l.s. 8.000,00
Total Construction 388.000,00
Equipment, supplies, and other expenses
Light truck n. 1 40.000,00 40.000,00
Motorcycle n. 2 2.000,00 4.000,00
Bicycle n. 4 150,00 600,00
Plough n. 20 200,00 4.000,00
Hand Sprayer n. 80 30,00 2.400,00
Implements tools and materials n. 1 10.000,00 10.000,00
Wheelbarrow n. 110 30,00 3.300,00
Organic certification n. 1 2.500,00 2.500,00
Balance n. 3 79,00 237,00
Stainless steel work table n. 3 110,00 330,00
Stainless steel cutting blade n. 10 25,00 250,00
Wash basin n. 3 280,00 840,00
Metal grids n. 3 25,00 75,00
Cart n. 3 130,00 390,00
Plastic box n. 20 8,00 160,00
Greenhouse for drying n. 3 1.200,00 3.600,00
Mill n. 3 1.200,00 3.600,00
Packaging n. 1 5.000,00 5.000,00
Cold Press n. 1 220,00 220,00
Total Equipment 81.502,00
Livestock
Work oxen 10 1.500,00 15.000,00
Total Livestock 15.000,00
Total Investment Costs 720.827,00
Contingencies 10% 72.082,70
Grand Total Investment costs 792.909,70
34
6.2.2. Recurring Costs
35
6.2.3. Nursery Costs
36
6.2.4. Production-Revenues
37
6.2.5. Tentative Cash-flow
38
The investment costs must cover part of recurrent costs of the first year, after which the farm would
become self-sustaining as the project financial flow would turn positive.
The total cost of the project (Investment and Recurring costs for the first year) would be €792.909,70
Moringa stenopetala production assumptions include regular localised irrigation during dry periods,
yielding about 70% production compared with Moringa Oleifera grown under the same conditions
(Agro-forestry).
In this project 28 ha are cultivated 2/3 (18,5ha) for seeds production (agro-forestry system) with
productions of 4/ton/ha/year, 1/3 (9,5ha) for leaves and pods production (semi-intensive) with a
production of 2/ton/ha/year with 6 commercial harvest/year starting from 2nd year onward, being
sold fresh on-site to the local processing facility.
Sale prices have been estimated at € 0.5/kg for fresh leaves, € 2/kg for seeds, as products will be sold
on bulk to the nearby cooperative processing facility under a fixed-price contract. Fuel wood resulting
from the annual pruning has been estimated at € 0.3/q for sale on the local market, or for internal
use.
Considering investments and recurring costs (including Moringa plantation), the Moringa producing
enterprise will become financially self-sustainable by the end of year 3, showing by the 15th year an
internal rate of return of 17,80%, thus potentially representing an economically viable component of
the Moringa Value Chain development for the Arba Minch area.
39
7. REFERENCES
• ARISE Standards for Organic Farming, New Delhi, India, 2000.
• S. Huke, J. Plecan, Planning for Agroforestry, Save the Children, USA, 1988.
• Ato Berhanu et al., Growth of some Forest Trees in Ethiopia and suggestions for species
selection in different climatic zones, Forest Research Note no.2, Forestry Research Center,
Addis Abeba, 1986.
• G. Barbera et al., Konso Cultural Landscape: Terracing and Moringa, Proceedings of the 2nd
Conference, Italian Cultural Institute, Addis Abeba, 2011.
• J. P. Gittinger, Economic Analysis of Agricultural Projects, EDI Series in Economic
Development, John Hopkins University Press, Baltimore, USA, 1982.
• McDonald P. Benjamin, Investment Projects in Agriculture, ELBS Editions, Great Britain, 1985.
• Friedrich von Breitenback, The Indigenous Trees of Ethiopia, Ethiopian Forestry Association,
Addis Abeba, 1963.
• Teshome Soromessa et al., Ecological study of the vegetation in Gamo Gofa zone, southern
Ethiopia, Tropical Ecology 45(2), 2004.
• Ababu Teklemariam et al., Water Quality Monitoring within the Abaya – Chamo Drainage
Basin, Proceedings of Lake Abaya Research Symposium, 2004.
• N. K. Tyagi, Managing Saline and Alkaline Water for Higher Productivity, Central Soil Salinity
Research Institute, Haryana, India. CAB International 2003.
• Ethiopian Organic Forum: Public Private Partnership, UNCTAD – UNEP, Addis Abeba, 2009.
• Dawit Dikasso, Research, Manufactoring, and Regulatory Mechanisms of Moringa
stenopetala: a Working Paper.
• Dechasa Jiru et al., Leaf yield and nutritive value of Moringa stenopetala and Moringa oleifera,
Strategies, standards and markets for a better impact on nutrition in Africa. Accra, Ghana,
2006.
• Ilka Gomez, Lisa Thivant, Training Manual for Organic Agriculture, FAO, 2015.
• Newton Amaglow, et al., Moringa et autres vegetaux for potentiel nutritionnel, Strategies,
Normes, etc, Accra, Ghana, 2006.
• J. O. Animashaun, A.A. Toye, Feasibility analysis of leaf-based Moringa oleifera plantation in
Nigeria, Agroresearch n. 3, 2013.
• Dechasa Jiru et al., Leaf yield and nutritive value of Moringa stenopetala and Moringa oleifera
accessions: its potential farming role in food security in constrained dry farming agroforestry
system, Moringa etc. : Strategies, etc., Accra, Ghana, 2006.
• Indian Council of Forestry Research and Education, Moringa Oleifera, Forest Research
Institute, Dehra Dun, India.
• de Saint Sauvers, Moringa Association of Ghana, Growing and Processing Moringa Leaves,
France, 2010.
• Irénée Modeste Bidima, Production and Processing of Moringa, Pro-Agro Collection, Yaoundé,
Cameroon, 2016.
• S. Hedge, V. Hedge, An overview of Moringa production in Ethiopia, International Journal of
Sciences and Research, vol. 4, issue 4, 2015.
• R. Devi et al., Organic Farming and Sustainable Development in Ethiopia, Scientific Research
and Essays, 2007.
• C. L. Mohler, S. E. Johnson, Crop Rotation on Organic Farms, a Planning Manual, NRAES, USA,
2009.
• Ethiopian Standards Agency, Organic Products – Code of Practice, Addis Abeba, 2013.
40
8. VALUE CHAIN
A value chain can be defined as the sequence of value-adding activities, from production to
consumption through processing and commercialization.
Each segment of a chain has one or more backward and forward linkages.
The “fork to table” integration of a chain can increase efficiency and value through reduction of
wastage, ensuring food safety, providing freshness, the decreasing consume prices and improving
farm prices and incomes.
Value Chain can be defined as the set of actors (private, public and including services providers) and
the sequence of acting of value-adding activities involved in bringing a product from production to
the final consumer.
It is the analysis assessment of the actors and factors influencing the performance of a firm and the
relationships among participants to identify the driving constraints in order to increase efficiency,
productivity and competitiveness, and how constraints can be overcome (Fries, 2007) to summarize
the key aspects of the value chain definition for agriculture.
The value chain management is the process of actually organizing all the activities, so they can
properly be analysed. The goal of value chain management is to ensure that those in charge of each
stage of the value chain are communicating with one another, to make sure the products is getting
in the hands of customers as seamlessly and as quickly as possible (M.E.Porter).
Moringa stenopetala will be a new entry on formal national and international markets. The choice
that is proposed is based on differentiation and focus strategies. Moringa stenopetala’s powered
leaves and edible oil will rely on their Ethiopian roots and origin, their history based on good practices,
41
increased capabilities of the community and the important nutrition contribution to reduce
malnutrition in the Southern Region and Ethiopia. On international markets, Moringa stenopetala will
have to compete not only with other beneficial plants but especially with its close relative from Asia,
Moringa oleifera. Both of the plants have a unique nutritional value based on their very similar genetic
profile. Moringa oleifera is known and appreciated on the global market. Moringa stenopetala will be
a new entry, a “novel food” in national and European markets.
The organic production, fair trade and history of the products are important and attractive features
in the European market competition.
No broken, deteriorated or stained leaves and branches must be collected, with insects and / or other
organic material.
The colour card should only be used to select leaves, also for statistical purposes, and must always
be cleaned and disinfected after use.
The scissors intended for the selection purpose should be used for this purpose only and must be
washed and disinfected after use. Containers for collection must have different sizes: for large
branches, small branches and leaves. This process is in the scope of maintaining uniformity in the
final product. Containers must be cleaned.
25% of the foliage must be left on the plant to prevent physiological imbalances due to intense
pruning.
After collection, the raw material must be placed in clean containers of 70 x 56 x 38 and placed in a
shady, dry space. If the journey from the collection site to the processing site is long, the foliage must
be protected by newspapers.
Regarding hygiene when harvesting, the following actions are recommended: collectors must have
clean hands free of biological and chemical contaminants. The clothing must cover the skin of the
body to avoid insect bites, and the boots must be made of rubber.
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Weight scale Stainless steel work table
At the same time, fresh product quality checks will be carried out.
The washing operation is via immersion in water containers containing a diluted solution with sodium
hypochlorite (5mg per 5Lt). The maximum immersion time is 5 minutes.
The material is then placed on metal grids to drain the water.
Drying
The drying time depends on the circulating air (ventilation speed) and the processed product to be
obtain.
The ratio between cultivated area and surface for the dried product is 1/10; i.e. 10 sqm. of cultivated
area corresponds to 1 sqm. Another aspect to consider is that every 5 kg of fresh material is
transformed into 1 Kg of dried product.
Drying can be done through direct irradiation or inside a greenhouse, where solar energy turns into
heat. This energy is constant, uncontaminated and free.
The wooden boxes, with a wire grid, are placed in 2 lateral rows on 3 levels.
The important elements are:
• the collecting area
• the drying chamber, where the circulating air dehydrate the product.
Both elements can be made in various shapes according to the structure used.
The structure of the greenhouse must be made of wood and have a maximum height of 2 meters and
10 cm, which allows 3 levels of boxes; the roof must be made with transparent polycarbonate and
the sides covered with white polyethylene; the concrete floor must be of a 10 cm thickness.
The greenhouse must be oriented from East to West to get maximum solar irradiation.
The product is ready when the humidity is between 10 and 15 degrees Celsius. With this technique
the product can be ready after 24 hours compared to 72 with other methods.
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Grinding
Once dried, the product must be grinded to obtain particles.
The grinding can be done with a conventional mill that is equipped with all the tools to obtain a
specific kind of grind; blades, sifts, strainers.
After the grinding comes the packaging, after a quality control check has been carried out.
The packaged product is put in boxes of 25 units each, which will be deposited in a cool and bright
environment, protected from insects and rodents.
Vegetable oils constitute an important part of human livelihood all over the world. The widening gap
between demand and supply necessitates alternative sources of edible oil to augment global
production. To meet the growing demand of fats and oils, concerted efforts have been made to
increase the seed yield.
A researcher’s article on the extraction of cold pressed Moringa oil (Janaki, S. and Jamina Devi,
Department of Food and Nutrition Madre Teresa Women’s University, India) presented the following
methods and results:
‘Seeds have to be dried in sun for two days or in a greenhouse for one day. The dried seeds are sent
to the shell removing unit, to get the kernels. The kernels are further dried for a week at room
temperature.
Seeds have to be handled carefully for cleanliness. Then 8Kg of seeds are poured on the receiving
funnel of the cold press.
In the next few minutes the oil was dripping from the outlet collected in a container, weighed, and
subtracted to express the weight of the oil (3Kg). The oil extracted (a golden yellow colour) underwent
a sedimentation process for 3 days to remove impurity and protein residues. On the fourth day the
settled oil was decanted, filtered in a filter cloth of 5 to 6 microspore size, into a clean container, then
bottled in a transparent PET (polyrhtilene trephothalate) of 55micron thickness.
The extracted oil yield was expressed in percentage, which was calculated as weight of oil extracted
over weight of the sample taken.”
46
The frying performance of Moringa stenopetala seed oil extracted with solvent and with cold press
was studied especially in regard to repeated frying. The oil was used for intermittent frying of potato
slices and cod filets at a temperature of 175 degrees. The fatty acid contents, polar compounds,
colour and viscosity of the oils all increased, whereas the iodine value, smoke point, polynsatures
fatty acid contents, induction period and tocopherol contents decreased. 5
The effect of the oil on the organolectic quality of these fried food and the theoretical number of
frying operations possible before having to discard the oil was also terminated. The analytical and
sensory data showed that the lowest deterioration occurred in cold press production oil.
8.3. Commercialization
Commercialization is often confused with sales, marketing or business development, whereas it is
the process or cycle of introducing a new product, or production method, into the market. The actual
launch of a new product is the final stage of new product development and the one where the most
money will have to be spent for advertising, sales promotion and other marketing efforts.
According to Pingali and Rosengrant (19956) there are three levels of market orientation as far as
production systems are concerned. The three levels are termed as subsistence systems, semi-
commercial, and commercial systems based on the farm household objectives for producing a certain
crop, their source of inputs, their product mix and their incomes sources. According to Govereh et
al., 1995 “commercialization can be mesured along a continuum from zero (total subsistence –
oriented production) to unity (100% production is sold)”.
(Strasberg et al., 1999) suggested a measurement index called “Household Crop Commercialization
Index” (CCI) which is computed as the ratio of gross value of all crops sales over gross value of all crop
production multiplied by hundreds. Even if CCI has limitations, it can be used in practice especially in
the context of developing countries where it is less likely to get smallholders selling all of their output
and very large farmer selling none of their output (Govereh et al., 1999). In conclusion, the degree of
participation in the output market is the conventional way to measure commercialization.
The benefits of commercialization are multifaceted. Von Braun et al., (1994) state that
commercialization plays a significant role in increasing incomes and stimulating rural growth, through
improving employment opportunities, increasing agricultural rural productivity, direct income
benefits for employees and employers, expanding food supply and potentially improving nutritional
status. In most cases, these increased incomes have led to increased food consumption and improved
nutrition. Bernard and Spielman, (2008), observe that smallholder agricultural commercialization is
significantly related with higher productivity, greater specialization and higher incomes”.
It is stated that the aforementioned outcomes give way to improvement in food security, poverty
reduction and economy-wide growth.
Several researchers indicate that the outcomes of commercialization depend on whether efficient
markets exist or not. If efficient markets do exist then commercialization leads to separation of
5 Frying stability seed oil Moringa stenopetala, Lolas S.; Goitzi O, Tsaknist J. 2006
6 cited in Leavy and Poulton, 2007
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production from consumption, supporting food diversity and overall stability at household level and
increased food security and improved allocative efficiency at macro level; but if markets remain
inefficient and transaction costs are high, smallholder fail to exploit the blessing of commercialization
(Bernard et al., 2007).
Samuel and Sharp (2007) pointed out that agricultural commercialization is a bridge through which
smallholder farmers are able to achieve welfare goals. Various research undertakings reveal that the
nutritional status of Moringa gives it high potential to address food and nutrition problems that is
very much persistent in Ethiopia (Abuye rt al., 2007). The development of its value chain helps
improve supply of various products of Moringa both in rural and urban areas so as to get the benefits
of Moringa in addressing the food and nutrition security.
A wide specialist literature tackles on trading and marketing strategies, indicating that relevant
commercial decisions depend on a certain number of specific conditions and variables; nevertheless,
independently from the choices taken (groceries, supermarkets, general markets, virtual markets) it
is Moringa stenopetala’s “native” brand which is the key for a successful story and several good
practices to be spread at country level.
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Upgraded value chain of Moringa Leaf Powder
Although Moringa is fast growing, drought tolerant and easily adapted to poor soils and arid
conditions it has not received significant research attention to select and develop potential ecotypes
that might be evaluable both as horticultural and medicinal crop. Because of its multiple uses and
easy of propagation and ability to thrive under harsh environments, its acreage as a cultivated crop
is on the increase, as is the demand for its products.
The demand for the Moringa in Ethiopian recipe is unidentified; even though Moringa provides
nutritional support. The demand may be huge in future and it will create promised job opportunity
not only for rural or farmers but also can see urban horticulture (Dr. Sreepada Hedge, Dr. Vijayalaxmi
Hedge, 2013).
The commercialization of Moringa products in Ethiopia is still very informal and makes it difficult to
get reliable information of production volumes and prices. To effectively exploit the existing market
potential, the commercialization should become more structured and formalized. Thus, the
coordination between producers, wholesalers and retailers should be improved in vertically.
Over the last decades, a growing middle-class population in Ethiopia, primarily in semi-urban and
rural areas have brought about changes. Consumer tastes and lifestyle changes have an impact on
eating habits. Exotic and imported food as well as health foods and organic foods are now in high
demand by consumers. Moringa is a commercial crop; Authors say that has an ample scope to expand
the Moringa 7.
Mulugeta Girma and Mingizem Birhan (2007) made “An empirical based analysis on the missed
opportunity of Moringa marketing”in Eastern Part of Ethiopia, especially in Dire Dawa Administration.
The findings reveal that there is a good awareness, perception, interest and willingness to pay for
Moringa, and a demand for the processed Moringa products is increasing though there is shortage
of supply within the market with value added products. The Authors found that the bottle neck that
Fresh Moringa products – leaves and pods – are sold at the gate. Regarding the transformed products,
being the market informal, is difficult to know how they (especially powder and tea) reach shops and
supermarkets, in Addis Abeba and other towns. On the other hand, the presence of Moringa in shops
and supermarkets of urban areas seems to demonstrate an interest by buyers and sellers.
The MVC project aims at creating an integrated system that could become an example of good
practices, from production to commercialization.
Contracts can also specify quality standards and thereby address adverse selection problems that
might be caused by failure of the open market to adequately recognize and reword quality.
Contract production can improve market efficiency and align production with the demands of the
market for particular quality attributes.
Changes in farmer organization are not primarily in supplying supermarkets, but rather in public and
international support for food quality improvement, which has been benefiting supermarkets.
The relation between safety and quality is generally discussed in the context of research on consumer
risks perception. Quality and safety perception is linked to food choice and consumer demand
addressing question of price perception and the validity of willingness to pay measurements.
Food quality and safety are central issues in today food economics.
9.3.2. Groceries
The term grocer, from the French grassier (meaning wholesaler), in turn derived from the Latin
grossarius, from which the term gross (meaning a quantity of 12 dozen) is also derived. In the Middle-
Ages a grocer was a dealer of edible dry goods such as spices, peppers, sugar, and later cocoa, tea
and coffee.
Nowadays a grocery store is a retail store that sells food. Small grocery stores that mainly sell fruits
and vegetables are known as greengrocer. Greengrocers and small grocery stores that predominantly
sell prepared food, such as candy and snacks, are known as convenience stores or delicatessen. Some
grocery stores (especially large ones) form the centre piece of a larger complex that includes other
facilities, such as gas station which often operate under the store’s name.
Groceries specialized in the food of a certain nationality or culture, such as Asian, Italian, Middle
Eastern are known as ethnic market-stands may also serve as gathering places for immigrants. In
many cases, the wide range of products carried by larger supermarkets has reduced the need for
such specialties stores.
Grocery stores operate in many different styles ranging from rural family-owned operations, to
boutiques chains and to larger supermarket chain stores.
Despite consolidation throughout the food market system, grocery retailers oftentimes with an
international scope, have emerged as the dominant players in the food chain in most part of the
Over time, improvements in technology and the developments have allowed people to further obtain
the specialized, mass-produced goods that they wanted. As a result, shops became much more
common, as sellers decided to focus on a particular product instead of providing a wide variety of
different products.
Before long, general stores became less common, as families went to the grocery store for food,
clothing store for clothes, shoe store for shoes, and a variety of other stores for specific purchases. A
walk through any modern shopping centre will reveal the many types of stores that exist today.
Today's largest retailers and "big box" stores such as Walmart and Target have revived the concept
of general stores by offering a wide variety of the most commonly-used products under one roof. By
doing so, they offer shoppers the possibility of getting nearly everything they need in one place, which
is attractive to many shoppers in today's busy world.
Nowadays, we are seeing a growing number of virtual on-line general stores that allow clients to
select products at home, order on line and receive at home; Amazon is a good example.
Among these products we find many types of supplement foods directed at sports activities, weight
control and welfare in general.
This is the kind of market that would be appropriate to know and verify as potentially interesting for
Moringa products.
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also big farms that produce organic Moringa, as AGF (Ancient Green Fields); they are the largest
exporters of PKMI quality variety seeds and manufactured organic Moringa products making
wholesale and bulk supply available to large numbers of organic farms around the world.
AGF also sell online seeds, leaves powder, oil, and beauty creams (PKMI seeds are a variety rich in
antioxidants).
An ancient Swiss farm (from 1903), famous for herbal cosmetics, sells on-line at the following prices
(almost the same prices of AGM):
For smaller suppliers it will be very difficult to compete with the Indian companies’ prices. Therefore,
there is the opportunity to develop a Unique Selling Point (USP). This can be done with:
• High quality: European buyers are concerned about the quality of Moringa from India
• Certifications: for example, organic and/or fair trade
• Marketing story: for example, if the product comes from the work of smallholder farmers that
aid rural communities to reduce malnutrition.
In recent years, more and more African companies have entered the market for Moringa oleifera,
such as South Africa, Ghana, Mozambique, Kenya, Malawi.
These companies have differentiated their Moringa products from Indian products on the market by
focusing on product quality and on having an interesting marketing story. There is also a on the island
of Tenerife, which is part of the European Union. This company uses its European location as a Unique
Selling Point (USP). Other upcoming producers are located in the Americas, such as El Salvador,
Nicaragua.
European processors play a relatively small role in the Moringa value chain. Since Moringa leaves
need to be processed close to harvesting, most processing takes place in the country of origin.
European processors can be involved in the standardisation of Moringa leaf powder, just as
the Indian companies that also compete at this level of processing. Some also produce ingredients
registered as intellectual property. For example, the company Sabinsa developed a standardised
ingredient for Moringa oleifera leaves with a minimum level of antioxidant activity. Indian companies
also produce final products based on Moringa oleifera.
Moringa stenopetala can be defined a “novel food”, it is an agro-forestry tree, endemic in the
Ethiopian Southern Region, North Kenya, Somalia. While Moringa oleifera, of Indian origin, has been
studied at length, which made it gain national quality standards and all the certifications required for
international trading, Moringa stenopetala has not been studied as much so far, and its genetic
profile is still little known to establish a national quality standard of its seeds.
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Novel Food is defined as food that has not been consumed to a significant degree by humans in the
EU prior 1997, when the first Regulation on Novel Food came into force (Regulation EC n. 258/97).
Novel food can be newly developed, innovative food or food produced using new technologies and
production process as well as food traditionally eaten outside of the EU.
The 25 of November 2015 a new Regulation was adopted on the basis of a procedure fully centralised
at EU level, which should enable safe and innovative food be placed in the EU market. It will come to
effect in January 2018.
Moringa oleifera is increasingly popular on the European market for food supplements. The plant’s
dried leaves are marketed for a wide range of health benefits. These benefits are based on their high
level of antioxidant activity and chemical composition. India is currently the main global supplier.
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10.3. European Market Channels
Importers and distributors are the most important entry point into the European Moringa market
(see Figure). They may trade in up to 500 natural ingredients, together with other (synthetic)
ingredients. They focus on global sourcing, analysis and quality control, certification, blending,
product documentation and sales to processors and end-product manufacturers.
Small exporter and/or new exporters to the European market can also work with an agent who
represents the firm in the market.
Based on this composition, Moringa oleifera leaf powder is commonly marketed as:
• Supporting immune health
• Improving general health
• Increasing energy levels
• Supporting weight management
The table below shows the use and classification of Moringa oleifera on health products.
Several European countries (or groups of countries, such as Belgium, France and Italy in the case of
“BELFRIT agreement”, have established positive lists of species which are allowed to be used in food
supplements. It has to be noted that species allowed for use in food are not necessarily allowed for
supplements (for example in concentrated form).
The seeds and oil of Moringa oleifera are not commonly used in European health products. They are,
however, listed on the Italian national positive list. This list includes the following properties and
effects of the seed and oil:
• Digestive health
• Normal blood circulation
• Weight management
• Respiratory health
• Regulation of perspiration
Moringa stenopetala seed edible oil could compete in the market, starting from BELFRIT countries.
Producers of food supplements cannot make medicinal claims.
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subject to the general labelling requirements laid down in Regulation (E.C.) n. 1169/2014
Condition for authorisation
Novel food will only be approved for use in the E.U. if they do not present a risk to public health, are
not nutritionally disadvantageous when replacing a similar food and are not misleading to the
consumer. They must undergo a scientific assessment prior to authorisation to ensure their safety.
The authorisation supports the condition for their use, their designation as food/food ingredient and
labelling requirements.
To show the interest in meeting the specifications of buyers, it is necessary to develop well-structured
company and product information. This includes detailed Technical Data Sheets, as well as process
and product certifications.
Source: GTZ
European food industries increasingly demand compliance with quality and food safety management.
Examples include:
• required for health ingredients
• food safety
• risk management
• Hazard Analysis Critical Control Point
• Additional requirements
Other ‘superfoods’ and in particular superfood powders are also strong sources of product
competition. These are often used to improve general health or immune support, especially if these
boast a healthy nutritional profile, such as vitamins, or high levels of antioxidant activity.
Examples include:
• Baobab fruit powder (Adansonia digitata)
• Spirulina (Arthrospira plantensis)
• Barley grass powder (Hordeum vulgare)
• Wheat grass (Triticum aestivum)
• Maca (Lepidium meyenii)
Substitute products for Moringa oleifera are used to increase energy: There is a wide range of
products on the European market for energy-boosting supplements. These include both synthetic
and natural alternatives.
The main synthetic alternatives are:
• Caffeinated energy drinks
• Vitamins and minerals
• Protein-based products
Natural alternatives are increasingly popular to increase energy. Most of these ingredients are also
marketed for other health benefits, such as boosting concentration.
These include:
• ‘Super-fruits’, such as guarana fruit and goji berries
• Botanicals, such as yerba mate, Rhodiola rosea and green tea
• Other natural products, such as royal jelly
Substitute products for Moringa oleifera used against obesity: Consumers use different types of
products for weight management, both natural and synthetic.
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These include:
• Protein-based products are a strong force of competition. These can be natural or synthetic.
They support a feeling of fullness, while they have a low content of carbohydrates and fats.
• Probiotics are strong competitors as well, in particular as they are used for wider digestive
health applications.
• Flaxseed oil and other omega-3 oils: These are popular because they also help support the
digestive system and healthy cholesterol levels.
• Fruits: Some fruits are used for their laxative properties, for example.
The ISS is a public research Institute and represents the leading technical body of the Italian National
Institute of Health. ISS is structured in 17 National Centres including two National Reference, 6
Department, 5 Technical Scientific Services and 1 Notified Body.
Its activities include research on health issues, control of drugs, foods, vaccines and topic concerning
products for use in public health. In addition, it organizes training courses and provides consulting
service in the view of public health protection.
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As the cost of using the market mechanism is relatively high for smallholders, collective action may
be a beneficial strategy for realising economies of scale and scope. (9 Given that physical availability
of inputs is often an important constraint to access with thin and unreliable rural distribution,
cooperatives act as a vehicle for input distribution (Darward, Kyed, 2014).
In 2010-2011 and 2015-2016, the Ethiopian Government started the Growth and Transformation
Plan (GTP) towards fostering broad based development in a sustainable manner; while the GPT
foresees a central role for agriculture cooperatives in increasing the productivity and household
income of smallholder farmers.
In the 90ths, the Government designed various policies to strengthen the development and operation
of cooperatives. The first formal legal framework was the Agriculture Co-operative Societies
Proclamation 85/1994 replace by CSP 147/1998.In 2008 the Ethiopian Commodity Exchange (ECX)
was established as a formal institution to improve co-ordination in agri-food markets and to enhance
small holders market integration.
Cooperative promotion started with the Federal Ministry of Agriculture (MoA) of developing and
implementing policies on Cooperatives. One level below is the Federal Cooperatives Agency (FCA).
FCA establishment in 2002 plays a crucial role in the registration and legalization of co-operatives, by
auditing and certifying them and monitoring their performances.
Another important Government Agency is the Agriculture Transformation Agency (ATA) (2010). The
agency promotes cooperatives and agricultural transformation. ATA also takes assignments on
reducing systemic bottlenecks in agriculture development.
ATA has been assigned the task of developing “an integrated strategy that will enhance the support
of agricultural Co-operatives to contribute towards increasing the yields and incomes of smallholder
farmers “(ATA, 2012).
At the Woreda level, two agencies are supporting co-operatives: The Woreda Bureau of Agriculture
and Natural Resources (BoANR) and the Woreda Cooperatives Promotion Office.
Development Agencies (DAs) are mainly targeted to provide technical support to primary co-
operatives.
As part of its rural development assignments, the BoANR provide agriculture extension activities and
crop production. There is a different role between primary cooperatives and co-operatives unions.
The co-operatives unions are the key organizational level for smallholder because the Unions make
the actual link to domestic and foreign buyers.
Many NGOs are actively supporting Unions and primary cooperatives; an example is Cooperatives for
change (C4C) program of the Dutch NGO, financed by the Gate Foundation.
All the cooperatives, no matter the size or sector, adhere to a common set of principles expressing
their foundational values of democracy, equality, equity, self-help, self-responsibility and solidarity.
1. Voluntary and Open Membership: Cooperatives are voluntary organizations, open to all
people able to use its services and willing to accept the responsibilities of membership,
without gender, social, racial, political or religious discrimination.
2. Democratic Member Control: Cooperatives are democratic organizations controlled by their
members – those who buy the goods or use the services of the cooperative-who actively
participate in setting policies and making decisions.
3. Members’ Economy Participation: Members contribute equally to, and democratically control
the capital of the cooperative. This benefits member in proportion to the business they
conduct with the cooperative rather than on the capital invested.
4. Autonomy and Independence: Cooperatives are autonomous, self-help organization control
by their members. Any agreements with other organizations or external sources of capital
ensure democratic control by the members and maintain the cooperative’s autonomy.
5. Education, Training and Information: Cooperative provide education and training for
members, elected representative, managers and employees so they can contribute
effectively to the development of their cooperative and inform the public about the nature
of benefits of cooperatives.
6. Cooperation among Cooperatives: Cooperatives serve their members most effectively by
working together through local, national, regional and international structures.
7. Concern for Community: While focusing on member needs cooperatives work for the
sustainable development of communities through policies and programs accepted by the
members.
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business he or she would own. Both control and financial rewards are driven by the amount of money
invested and the more of one, the more of the other.
Cooperatives are distinguished from other organizations in that member use, or patronage is linked
to control of the enterprise, rather than the degree of monetary investment. Any financial return to
cooperative owners typically comes through profit allocations based in their patronage, or
transactions with the cooperative. This is very different from an investor-owned firm where it is not
necessary to transact any business with the enterprise in order to benefit from it as an owner. In an
investor-owned firm, return comes through funds invested, not services used.
The amount of equity (and subordinate’s debt) that can be supplied by members will in turn influence
the amount of debt the cooperative might raise and therefore the total capital available to start
operations.
All the actions envisaged to meet the objectives of the project will take place in an ecosystem-based,
institutional, social and productive environment already identified by the previously carried out
study. The general scope of this project is to demonstrate how a “friendly” use of land and natural
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resource biodiversity management, can meet the needs of local communities. The start-up of a
primary multipurpose cooperative will demonstrate to the community how a well-organized model
of agricultural production and value chain activities can be a concrete opportunity for human, social
and professional development.
Common cross-cutting actions towards achieving the above-mentioned objectives are as follows:
• Involvement of all stakeholders in a constant participation and awareness of the project
strategies and its time course.
• Provision of coaching and training for all technical and agricultural activities of Wezeca
Cooperative.
The sixth stage for the Cooperative’s legalization is the implementation of the basic course of
cooperative associationism. The course will cover: cooperative doctrine, administration, economic
and financial areas, legal.
The credentials to be submitted are: the name of the representative partner, its position in the
cooperative society, its date of his entry into the cooperative, and its credential term date.
Following are the required elements to begin the product registration process in the Food Health
Register:
a) the product quantification formula, signed by the executor of the formulation
b) original product labels must be presented
c) the activity license must be submitted
d) presentation of the product and its characteristics, samples of the product.
13.3.3. Objectives
1) Placing on the national and European market Moringa stenopetala plant products of the
highest quality, safe, and preserving the exceptional nutritional value.
2) Contributing to reducing domestic and national malnutrition and improving living standards
of the communities in the Southern Region and in Ethiopia, who are the ultimate beneficiaries
of the initiative.
3) Creating a model of development through the project to help spread broad and accurate
information on the exceptional properties of this plant, which has the merit of having a
positive impact on everyone's health, especially children and adolescents in the age of
development, pregnancy and breastfeeding women.
4) Intensifying recovery of fertile land and contributing to increasing the availability of healthy
and safe food through organic production, supported by the Government since 2006, by
Proclamation No. 488/2006 to establish "The Ethiopian Organic Agriculture System"
5) Recognizing and enhancing women's capacities, from production and transformation to
business and management, concrete situations while still projecting towards a better and fair
future.
In all these five pathways, gender roles have a significant influence. As a matter of fact, intra-
household resources allocation has a considerable role to play in nutritional outcomes. The extent to
which women have access to and control over resources largely determines the kind of care they
provide for their children. Women’s lack of control over household resources, time, knowledge, and
social support networks constitute a major barrier to improving poor nutritional outcomes in Ethiopia
(IFPRI 2012).
Empirical researches have also shown that women’s greater control in household has an impact on
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the nutritional and educational outcomes of children.
The linkages are complex, and the direction of relationship between women’s status and nutrition
are not always straight forward. For instance, women’s empowerment through engaging in
agriculture or other paid work could reduce the amount of time available for them to take care of
themselves as well as their children but having a positive income effect.
For many reasons measuring women’s empowerment is not straight forward and quantifying the
linkages between women’s empowerment and nutritional outcomes depends on the measurement
of empowerment.
This pilot project- Development of Moringa Value Chain in Rural communities – aims at looking into
the relationship between women’s empowerment and nutritional outcomes of both women and
children in the Southern Region of Ethiopia. This objective can be facilitated through appropriate
research methodology.
Moringa products, with its unique nutritional content, may potentially give good incomes to the
household. These various contexts suggest getting the project opportunity to look into the relation
between specific women conditions and nutrition and identify the related framework.
In March 2015 IFPRI (International Food Policy Research Institute) and EDRI (Ethiopian Development
Research Institute), in the occasion of Agricultural Economics Society of Ethiopia 15th Annual
Conference, presented the Women, Empowerment in Agriculture Index (WEAI).
The Women Empowerment in Agriculture Index (WEAI) is used to measure women’s empowerment.
The Index was developed by researcher of IFPRI, the Oxford Poverty and Human Development
Initiative (OPHI) and USAID. WEAI is based on the survey on five domains: Production, Resources,
Income, Leadership, and Time.
This methodology may provide a good base to project’s survey on this matter, being also instrumental
to Monitoring and Evaluation activities.
The questionnaire used for the survey includes modules on:
• basic demographic information (still done by the Inception Phase of this project);
• household consumption expenditure;
• women empowerment indicators;
• women dietary;
• diversity and anthropometry;
• child anthropometry and infant and young child feeding;
• employment, agricultural productivity and input use;
• other relevant information.
The Index is composed of two sub-Indexes: the Five Domain of Empowerment sub-Index (5DE) and
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the gender parity sub-Index (GPI). The 5DE measures the empowerment of women in the five areas
mentioned above (90% of the total WEAI; and the Gender Parity Index measures the average level of
equality in empowerment of men and women within the household (10%of the total WEAI).
Guide to WEAY and indicators modules are attached to this document.
Gender indicators can also capture qualitative changes, for example increases in women levels of
empowerment or in attitudes changes about gender equality. To generate richer data, a combination
of quantitative and qualitative indicators is advisable.
In the case of Wezeka cooperative context, the suitable approach seems to be participative, means
that women and men will participate together in gender discussions, seminars, operational training
and capacity building. A significant part of indicators will emerge from these participative activities.
The cooperative will be a place of work and of professional and human growth for both men and
women but will retain spaces and activities reserved for women only. The structure will include a
Centre for Women that will hold:
• workshops
• training courses
• socialization meetings
• educational seminars specific to the value of nutrition and its effects on the human and
intellectual development of children, adolescents and adults.
• Information on health prevention.
Seminars will focus on the importance of multimedia information and on the advertising message
regarding the Moringa's nutritional value. This information will also be developed in schools that will
in turn visit the cooperative on its production, product transformation and marketing preparation
sites.
The visits will give the opportunity to stimulate in the children’s curiosity and interest in the work
being done in and by the cooperative.
Educational tools will be designed to broaden and connect the knowledge of young students; for
example, by following the travel routes of the colourful packages of Moringa stenopetala throughout
the world.
If women want to carry out complementary activities, in regard to the production and marketing of
the Moringa's products, the project will provide the necessary tools and technical assistance. As
already mentioned (in the Organic Production System of Moringa stenopetala chapter), cooperative's
nursery will be handled by women members.
To favour the serenity and motivation of the women within the Wezeka Cooperative, the project
envisions reserving a safe space for pre-school children.
15.1. Opportunities
Moringa stenopetala is a tree endemic to the southern part of Ethiopia and over than 5 million people
are using it as staple food and medicinal plant, based on tradition.
The potential of Moringa as multipurpose tree allows expanding its use significantly as it is:
• Drought resistant, fast growing tree that grows in marginal area
• Source of food supplement, feed, fodder, edible oil, biofuel an industrial raw material
• Prospective crop to ensure food security and environmental management in arid and semi-
arid pastoral or agro-pastoral areas
• Endemic plant that offers international market opportunities and recognition for the
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community
• Water purifying agent that helps rural people to clean water
• Potential plant to mitigate the issue of climate change-carbon sequestration, carbon trade
that contributes to green developments
15.2. Challenges
• Very few research activities on its accessions, high genetic variability
• Non-existent of quality standard and regulatory framework for Moringa stenopetala products
• Lack of capacity with respect to safety, GAP, GMP and regulatory framework
• Use of inappropriate technical information for production processing and marketing
• Promoting Moringa as medicine without sufficient information and verification
• Disorganized information disseminating insufficient knowledge on the values of Moringa.
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16. CONCLUSION AND RECOMMENDATIONS
Women and men from the Southern Region have always known the beneficial contribution of
Moringa to family nutrition; the plant is prolific at the end of the dry season, when few other vegetal
foods are available. Women know that it is healthy and use it as part of their tradition, as well as an
addition to the daily meals.
The project allows to link the development of a plant of exceptional nutritional value to the needs of
a population in which serious and widespread cases of malnutrition have been detected.
Actively involved in the household needs, women control consumption patterns, provide health, can
use a wide diversity of species for food and medicine that are traded in market.
Women deserve to wider their knowledge, not only to better understand how and why the miracle
tree” is beneficial for health and physical and intellectual development.
They also deserve to thrust in their capacity and skill, to grow in their self-esteem, to be supported in
the capacity to take decision, speaking in public, to be engaged to be more visible in agricultural
production and commercialization, an area where they have traditionally been undercounted.
Improving the status of women and empowering them in agricultural production and value chain
activities, has multi-dimensional benefits, which include improved food and nutritional control in
their families and also improve nutritional income
17. REFERENCES
• Metabolically Efficient Information Processing (Balasubramanian, 1998)
• Sustainable Development Best Practices competition at Expo Milano 2015 (Janaki, S. and
Jamina Devi, Department of Food and Nutrition Madre Teresa Women’s University, India,
1998)
• Lolas S.; Goitzi O, Tsaknist J. 2006
• 1995 cited in Leavy and Poulton, 2007
• Strasberg et al., 1999
• Govereh et al., 1999
• Von Braun et al., 1994
• Bernard and Spielman,2008
• Bernard et al., 2007
• Samuel and Sharp,2007
• Abuye et al., 2007
• Yisehak et al., 2010
• K. Yisehak, M. Solomon and M. Tadelle, 2011
• Yisehak et al., 2010
• K. Yisehak, M. Solomon and M. Tadelle, 2011
• Kebele et al., 2007
• Erhabor and Emokaro 2007, Ibrahim et al., 2009
• Ghosh, 2011
• Dr. Sreepada Hedge, Dr. Vijayalaxmi Hedge, 2013
• Journal of Marketing and Consumer Research - ISSN 2422-8451ol.28, 2016
• Mulugeta Girma and Mingizem Birhan, 2004
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• Delforces et al., 2005
• Paule Monstrien et al., 2010 – Elsevier volume 35
• Poulton, Dorword and Kyald, 2010
• Darward, Kyed , 2014
• IFPRI (International Food Policy Research Institute), March 2015
• EDRI (Ethiopian Development Research Institute), March 2015
• Pelto, 1990
• Im-Act, 2005
• CIDA, 1997
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Attachments
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Cooperative Requirements for lease financing
1. Application
Bank and finance lease services to applicants who want to lease their capital base and useful
excursion vessel type, quoting the Office should provide Oops.
2. Permission
3.1. If Ownership
• Proof of copyrights attached to the relevant government body
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4. Price Receipt / Pro-forma invoice /
The applicant must provide the invoice receipt separately and from the third-party producer or
legal representative.
The invoice receipt must include the following:
• name and address of the seller
• name and address of the buyer
• ales status
• payment status
• country of origin
• date of the delivery of the item
• detailed technical specifications
5.Representation
Request for lease financial assistance by a third party must be submitted by authorized
agents and authorized representatives.
8. Environmental Impact Assessment Verification Letter from the pertinent bodies of the project.
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10. Administration
The applicant must submit proof of the project manager's or CV project with reference
documents, including the following information, including:
• address
• history
• work experience
11. Type of the organization / individual contribution source (Source of equity), the applicant must
show clearly the source of funds for use assessed contributions.
13. Business Plan or Feasibility Study /Detailed Details Regarding the Form / Information needed to
expand existing projects
1.Article I of No. 13 out of the ordinary number 1-12 listed all conditions
2.Renewed business license
3.Expansion license (if needed)
4. Additional capital: The capital recorded is not sufficient
5. A Review of the Account shall be at least three years
6. A letter of verification from the body concerned that it is properly managing the environmental
security obligation
7. Detailed plan for the expansion project
8. A proof of tax fulfilment
9.Prospective experience of the old labourers and the details of the details
10. Soft goods list, including price and day of purchase
11.List of existing assets; including the price and date of purchase
12.At least one-year performance review report
13. All evidence must be provided and a signed statement stating the true financial condition of the
project.
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Content of Feasibility Study of Small and Medium-Sized Enterprises for more than 10 Million Birr
Capital Investment
The project's feasibility study should be prepared by the consultants authorized by the Facility, and
the content of the study should include at least the following:
1. Executive Summary: Explains the key points outlined below and confirms the amount of the
required amount.
2.Project Background
2.1. Description of applicant and project: name, address, marital status, type of project / economic
activity, legal organization, etc.
2.2. Short story of the project / applicant
2.3. Objective of the project
2.4. Past activity of the project (prospective)
2.5. The status of the applicant's credit history
2.6. The purpose and size of the requested lease financial assistance
3. Market Research (Market Analysis)
Analyse information on the market that is being procured by the company for sale at the time.
3.1. General analysis of the market for the organization
3.2. Contest: -Ensure consistency by providing multiple production companies with more productive
and better products
3.3. Demand Analysis: Demand Analysis Consumers should be responsible for customer service, such
as what customers want, how product is accepted, and how well the consumer's ability to buy and
buy.
3.4. The supply analysis (Supply Analysis)-
Demonstrating the project's local and external supply capabilities in the target market
3.5. The supply-driven gap analysis: Presenting an analysis of the supply/ service gap of the company
on time.
3.6. Others
availability of alternative inputs for the product / service,
lack of environmental safety and health / restricted living standards,
occupancy of trained manpower and payment level,
the proximity to major markets
availability of affordable (infrastructure) products to market.
3.7. Price Analysis: The price of the product at market value is estimated at least five years prior to
the date of the project and based on the income and cost of the project, how the company assesses
the value of the product and how it is competitive in this market.
3.8. Marketing Strategy: Describe the strategies and strategies used by the company to sell the
product.
3.9. SWOT Analysis: Analysing the strengths and weaknesses of the organization and analysing the
conditions and conditions of the organization that are relevant to the local / external situation.
4.Technical Study
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4.1Project Status of the Project: Describe the geographical location of the project, indicating that the
production site is sourced from raw material, processing and marketing.
4.2 Project Engineering- In this section the following engineering projects are addressed
4.2.1 Construction and civil works: -Manufacture of raw material, raw material and finished product
storage warehouse, including workshops that demonstrate the production style of the production
facility suitable for production.
4.2.2 Miscellaneous Equipment: List of spare parts and utensils, detailed list of machines and spare
parts, detailed accessories, machine development program, product requirements, availability, etc.
4.3 Utility and Infrastructure Development The availability of facilities such as water, electricity,
roads, and other facilities to operate the project efficiently and reliably.
4.4 Production process: List of processes, processes, planned production, expense segment, storage
management plan, and expected amount of production process.
4.5 Environmental Impact Assessment: The project should address local and non-direct, positive and
negative impacts of the project and strategies used to address the negative impacts of the project.
5.1. Structure of the organisation: the focus of the company's management, its role and division,
cooperation and control, organizational purpose.
5.2 The organization's leadership skills, experience and skill assessment- the organization in the hands
of individual experience, production capacity and fitness.
5.3 Human Resource-Based Institutional capacity and skills training, recruitment training, work
wages, incentives and benefits.
6. Financial analysis - The project's estimated cost of finance, financial system and revenue from the
project.
6.1. Planned Investment: The General Project covers the financial need, capitalization and financing
required for capital goods and operations, and the obligation of the borrower to contribute.
6.2. Total sales forecast: The firm predicts how much revenue it will need to spend on its time
schedule.
6.3. Operating expenses (Operating Cost)-project product / service to identify and implement direct
and indirect costs
6.4. Predicted a financial statement (Projected Financial Statement): -Statement of Income and
Expense (Income statement): - Profit and loss forecast, cash flow forecasting, description of assets
and liabilities includes.
6.5. Project Effectiveness and Other Adaptive Measurements.
6.5.1. Return on investment - Returns percentage of return on investment in the project's economic
life.
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6.5.2. Net Present Value: the current cash flow of the project refers to the current price point.
6.5.3. Brea-Even Point: the project is used to calculate the minimum selling rate of the project, not
at a specific sale price or profit.
6.5.4. Debt Relief Period: the project indicates the amount of time required to repay the original cost
of the project.
7. Socioeconomic features: the importance of the project by demonstrating the contribution the
organization has made to the community in terms of how much employment has been created or
created, the annual income tax payable to the public, the relationship with the community, the
foreign currency exchange or the export of foreign products.
8. Conclusion and Recommendation: briefly discuss the topics covered in the discussion and
summarize the issues that will be helpful to the project.
Small and medium-sized enterprise business plans requiring investment capital of Birr 10 million or
less.
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Organizational Handbook
and Job Manual
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Women and Nutrition
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