amhara region horticulture development strategy

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Table 13 Analysis of strategic interventions . .... Agriculture is the major source of food, raw materials for local industries and export earnings. In 2010/11, GDP.
AMHARA REGION HORTICULTURE DEVELOPMENT STRATEGY (2015-2019)

Amhara National Regional State Bureau of Agriculture የአማራ ብሄራዊ ክልላዊ መንግስት ግብርና ቢሮ

Amhara Region Horticulture Development Strategy (2015-2019)

Prepared

By Team of Consultants Dr. Melkamu Alemayehu Mr. Fentahun Tessafa Mr. Solomon Bizuayehu Dr. Belayneh Ayele College of Agriculture Environmental Sciences Bahir Dar University

February 2015 ANRS Horticulture Development Strategy

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Table of Contents List of Figures ............................................................................................................................ v List of tables .............................................................................................................................. vi Acronyms .................................................................................................................................vii Acknowledgment ...................................................................................................................... ix Executive Summary ................................................................................................................... x 1. Introduction ............................................................................................................................ 1 1.1

Horticulture Subsector Development in Ethiopia ....................................................... 2

1.2 Horticulture Subsector Development in Amhara Region ................................................ 5 1.2.1 Overview of horticulture subsector in Amhara Region ............................................. 5 1.2.2 Opportunities of horticulture subsector development in Amhara Region ............... 10 1.2.3 Constraints of horticulture sector development in Amhara Region ........................ 18 1.3 National and Regional Agricultural Development Policies, Strategies and Plans ......... 20 1.4 The Rationale to Formulate Regional Horticulture Development Strategy ................... 21 1.5 Alignment of the Regional Strategy with National Horticulture Development Strategy .... 22

1.6 Scope of the Strategy...................................................................................................... 23 1.7 Approaches followed in the Strategy Development ....................................................... 24 2. Vision, Goals and Objectives of the Strategy ..................................................................... 26 3. SWOT Analysis ................................................................................................................... 27 4. Strategic Issues.................................................................................................................... 32 4.1 Poor Market Linkage and Information Among Producers and Potential Buyers .......... 36 4.2 Diseases and Insect Pest Incidences ............................................................................... 37 4.3 Inadequate and Untimely Supply of Quality Seeds ....................................................... 38 4.4 Inadequate Skilled and Qualified Human Resources ..................................................... 38 4.5 Poor Postharvest Handling Technologies ...................................................................... 39 4.6 Improper Agronomic Practices ...................................................................................... 40 4.7 Low Focus in Extension and Research to Horticulture Sector....................................... 41 4.8 Uncoordinated Linkage Among Stakeholders ............................................................... 41 4.9 Absence of Agro-Processing Industries ......................................................................... 42 4.10 Limited Access to Financial Institutions and Poor Investment Participation .............. 42 4.11 Poor Management of Water and Irrigation Schemes and Weak Institutional Capacity of WUCs and WUAs ............................................................................................................ 43

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5. Strategic Interventions ......................................................................................................... 43 5.1 Market Linkages ............................................................................................................. 48 5.1.1 Contract farming (out-grower) schemes .................................................................. 48 5.1.2 Fresh vegetable and fruit market center for producers ............................................ 54 5.1.3 Market oriented horticulture production and export diversification and improvement ..................................................................................................................... 55 5.1.4 Structural framework needed to address marketing problems ................................ 57 5.2 Proper Production and Management Practices............................................................... 59 5.2.1 Site selection, planting material, land preparation .................................................. 59 5.2.2 Adequate and timely supply of quality seeds/planting materials ............................ 59 5.2.3 Disease and insect pest incidences .......................................................................... 61 5.3 Capacity Building........................................................................................................... 63 5.3.1 Technological capacity building in horticulture sector ........................................... 63 5.3.2 Human capacity building in horticulture sector ...................................................... 65 5.4 Institutions and Policies ................................................................................................. 66 5.5 Cross Cutting Issues ....................................................................................................... 72 5.5.1 Women and youths participation in horticulture sector........................................... 72 5.5.2 Environmental issues in horticulture sector............................................................. 73 6. Implementation Plan ............................................................................................................ 75 7. Logical framework analysis ................................................................................................. 81 8. Monitoring and Evaluation Plan .......................................................................................... 91 9. Stakeholders for Amhara Region Horticulture Sector Development ................................ 100 9.1 Stakeholder Analysis .................................................................................................... 100 9.2 Responsibilities/Roles of Stakeholders ........................................................................ 103 References .............................................................................................................................. 106 Annexes.................................................................................................................................. 109

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List of Figures Figure 1. Vegetable production of Amhara region compared with selected regions in Ethiopia ......... 6 Figure 2. Fruit production of Amhara region compared with selected regions in Ethiopia ................. 7 Figure 3. Development of vegetable area coverage & production compared to the year 2006/7 Meher season by Smallholder farmers in Amhara Region ....................................................... 9 Figure 4.Development of fruit area coverage & production compared to the year 2006/7 Meher season by Smallholder farmers in Amhara Region ................................................................... 9 Figure 5. High rainfall, moisture deficit and pastoralist zones in Ethiopia based on rainfall and evapo-transpiration ....................................................................................................................... 13 Figure 6. Underground Water Potential of Ethiopia ........................................................................... 14 Figure 7. Existing large, medium and small scale irrigation Schemes in Ethiopia ............................ 14

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List of tables Table 1. Share of fruits and vegetables on crop production and cultivated area by private peasant holdings in 2012/13 (2005 E.C) cropping season in Ethiopia ................................................. 3 Table 2. Area, production and productivity of commonly grown vegetable crops by private peasant holdings for Meher season 2012/13 (2005 E.C.) in Ethiopia .................................................. 4 Table 3. Area, production and productivity of commonly grown fruit crops by private peasant holdings for Meher season 2012/13 (2005 E.C.) in Ethiopia ............................................................... 5 Table 4. Area coverage and production of fruits, vegetables and other crops during 2012/13 cropping season (private peasant holdings) in Amhara region ............................................................. 6 Table 5. Area coverage, production and productivity of commonly grown vegetable crops by private peasant holdings for Meher season 2012/13 (2005 E.C.) in Amhara region ............................ 8 Table 6. Area coverage, production and productivity of commonly grown fruit crops by private peasant holdings for Meher season 2012/13 (2005 E.C.) in Amhara region ............................ 8 Table 7. Major agro-ecological zones (AEZs) of Amhara region ...................................................... 11 Table 8. Areas suitable for commercial production of fruits and vegetables across four major regions in Ethiopia .............................................................................................................................. 11 Table 9. Main exported vegetables in 2011 ........................................................................................ 16 Table 10. Strengths, weaknesses, opportunities and threats of horticulture industry in Amhara region .................................................................................................................................................. 27 Table 11. Identification of strategic issues ......................................................................................... 34 Table 12. Analysis of strategic issues ................................................................................................. 34 Table 13 Analysis of strategic interventions ....................................................................................... 44 Table 14. Implementation plan ........................................................................................................... 75 Table 15. Logical framework analysis ................................................................................................ 81 Table 16. Monitoring and evaluation plan .......................................................................................... 92 Table 17. Responsibilities of stakeholders for Amhara region horticulture sector........................... 103

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Acronyms ACSI

Amhara Credit and Saving Institute

ADLI

Agricultural Led Development Industrialization

AEZ

Agro Ecology Zone

AGP

Agricultural Growth Program

AGRO-BIG

Agro-Business-Induced Economic Growth Program Amhara Region

AISCO

Agricultural Input Supply Corporation

ANRS

Amhara National Regional State

ARARI

Amhara Agricultural Research Institutes

ASE

Amhara Seed Enterprise

ATA

Agricultural Transformation Agency

BoA

Bureau of Agriculture

BoFED

Bureau of Finance and Economic Development

BoEPLUA

Bureau of Environmental Protection and Land Use Authority

BoT

Bureau of Trade

BoWR

Bureau of Water Resources

CF

Contract farming

CPA

Cooperative Promotion Agency

CSA

Central Statics Authority

DAs

Development Agents

EHPEA

Ethiopian Horticulture Producers and Exporters Association

EIA

Ethiopian Investment Agency

ESE

Ethiopia Seed Enterprise

FAO

Food and Agriculture Organization

FIs

Financial Institutions

FTCs

Farmers Training Centers

FVFMCP

Fresh Vegetable and Fruit Marketing Center for Producers

GDP

Gross Domestic Product

GTP

Growth and Transformation Plan

IFAD

International Fund for Agricultural Development

IPA

Investment Promotion Agency

IWMI

International Water Management Institute

M&E

Monitoring and Evaluation

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MFIs

Micro-Finance Institution

MIDS

Market Information Dissemination System

MoA

Ministry of Agriculture

MoFED

Ministry of Finance and Economic Development

MoWR

Ministry of Water Resource

NGOs

Non Governmental Organizations

O&M

Organization and Management

PAP

Proper Agronomic Practices

RDPS

Rural Development Policy and Strategies

SNNP

Southern Nations Nationalities and People

SWOT

Strength Weakness Opportunity and Threat

USAID

United States Agency for International Development

WUA

Water Use Associations

WUC

Water Use Cooperatives

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Acknowledgment The preparation of this Regional Horticultural Development Strategy involved many stakeholders. Our first word of gratitude goes to the Bureau of Agriculture of the Amhara National Regional State for their cooperation in preparing such an important document which will help to improve the livelihood of smallholder farmers in the region. Furthermore, our especial thank goes to Dr. Teshome Walle, Head of Bureau of Agriculture for the leadership he provided and his participation in forwarding valuable comments for the improvement of the daft strategy during the Regional Stakeholder Workshop presented on December 29, 2014 in Bahir Dar. In addition the process leading to the completion of this Strategy, involved a large number of people from various institutions, farmers, traders, extension workers and researchers; whose contributions have been vital to the success of the undertaking. Institutions represented during the process include: Government Institutions like the Bureau of Agriculture at its different levels (regional, zonal, woreda and kebele), Bureau of Finance and Economic Development, Regional Investment Promotion Office, Amhara Region Agriculture Research Institute, Agricultural Input Supply Corporation; Development Partners like AgroBig and various Water Use Associations. All have actively participated in supplying information which was very vital for the formulation of the Regional Horticulture Development Strategy. We also appreciate Mr. Sintayehu Misiker and Mr. Tesfaye Mengistu for their commitment and support in realizing the strategic document preparation and their role in facilitating the Regional Stakeholders` Workshop. We are also grateful to all regional horticulture stakeholders for their full participation in discussing the Horticulture Strategy draft document during the Regional Stakeholders’ Meeting held in December 2014, leading to the improvement of the document, their important and valuable contributions made the document what it is today.

Finally, it will not be easy to mention each and everyone who participated in making this document a reality but we thank all who were involved in different stages of making the entire task a success.

The Consultant Team ANRS Horticulture Development Strategy

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Executive Summary Amhara region has different agro-ecologies and fertile soil that are suitable for production of different types of fruits and vegetables. The production practice of fruits and vegetables is predominantly using traditional farming system for local markets as cash crops. The area allocated for production of these crops, and their production and productivity in the region are very low. Currently, fruit and vegetable production covered about 0.06% and 2.14% of the total area covered by crops in the region, respectively.

To avert these situations a comprehensive horticulture development strategy is vital. Despite some efforts done by various development partners, there is barely any comprehensive horticulture development strategy in Amhara Region and at country level. The Horticultural Exporters Association of Ethiopia has attempted to develop a strategy for the horticulture industry in 2007. The focus, however, was mainly to promote exportable horticultural crops, especially floriculture. The fruit and vegetable crops were neglected and/or insufficiently addressed. The Ministry of Agriculture is currently trying to develop a national horticulture development strategy. Therefore, the preparation of a regional horticulture development strategy is timely and relevant.

This strategy was developed in line with the national horticultural strategy document. Both strategies give due emphasize for exploiting the potential, aiming to enhance efficiency of smallholder fruit and vegetable producers and underline the role of agro-processing industries in alleviating the marketing problems of horticultural crops and thus their significance on the development of the horticulture industry. In line with the national strategic plan, this strategy gives due attention in creating jobs and livelihood improvement for youths and women in the sector.

In view of that the five year (2015-2019) Regional Horticulture Development Strategy was developed with the following objectives: 

Fruit and vegetable production will increase three times the current level in the region.



Share of Amhara region to fruits and vegetables exports will increase five times the current level

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Share of horticulture sector to the regional crop production will increase from nine to twenty percent



Vegetable seeds’ and fruit planting materials’ production will increase four folds of its current level



Smallholder farmers will derive maximum gross margin from fruit and vegetable subsector, at least twice the current level



Participation of youths and women in fruit and vegetable sub-sector will increase from 1.6 to 5 million beneficiaries



Post-harvest losses in horticulture sector will reduce by 50%



Traditional horticultural production will be reduced by 50%



Participation in the agro-processing and commercial production will be three times the current level



Water use efficiency of the irrigation schemes will be improved from 40% to 60%

In the strategy document various bottlenecks and opportunities of Horticulture sector in the region have been identified. Among the bottlenecks marketing problems, improper agronomic practices, disease and insect pest incidence and input supply problems are the major ones. However, the region has also opportunities in the horticulture industry development, among which suitable agro-ecology, abundant surface and ground water potentials, infrastructure, cheap labor force and increasing demand for horticultural produces both in the domestic and international markets can be mentioned. These opportunities and constraints of the Horticulture sector of the region have been critically assessed. Based on the major challenges, 12 strategic issues were identified and the respective strategic interventions are indicated in the analysis of the document. After critical analysis of the constraints, a total of thirty eight strategic interventions are identified and categorized in to five strategic pillars. The five pillars in strategic analysis include capacity building, production and management practices, marketing, institutional and policy, and crosscutting issues. Among many interventions, establishing out grower schemes, establishing fruit and vegetable agroprocessing and marketing centers, specialized education and training for experts and farmers, strengthening tissue cultures in the region, construction of horticulture training centers and adopting commercial production and modern irrigation could be mentioned.

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1. Introduction Ethiopia is one of the fastest growing economies and the second largest population in Africa. The total area of the country is estimated to be about 1.13 million km2. Of which about 51.3 million hectares are arable land. Only about 11.7 million hectares of land, however, are currently being cultivated; just over 20% of the total arable land (CSA, 2007). The country`s economy is highly dependent on agriculture. More than 85% of the Ethiopian population, residing in the rural area, is engaged in agriculture sector for its livelihood. Agriculture sector contributes about 45% of the Gross Domestic Product (GDP) and employs about 85% of the labor force and generates about 90% of the export earnings of the country (Diao et al., 2010; MoFED, 2010; Geiger and Moller, 2013). Improvement in farm incomes of the majority of the rural population is, therefore, a precondition for reduction of poverty whose economic growth depends on agriculture.

The country has different agro-ecology, fertile soil and suitable policies and strategies for the development of the horticulture subsector of agriculture. Both tropical subtropical and temperate crops of horticultural crops can be grown in different parts of the country. Besides, the country has tremendous surface irrigation water potential which is estimated to be 122 Billion M3 (EHPEA, +2013). The underground water potential of the country is estimated to be 40 billion M 3 (Abiti Getaneh, 2011). The water potential of the country is enough to develop 10 million hectares of irrigable land however until now only 1% of the water potential is used for crop production (EIA, 2012).

Likewise, in Amhara National Regional State (ANRS), Agriculture remains base of the economy. It is practiced by more than 85% of the population residing in the rural areas. Agriculture is the major source of food, raw materials for local industries and export earnings. In 2010/11, GDP growth rate estimated to be 8.4% and the contribution of agriculture to the regional GDP was 55.4%. The fact that the region is endowed with diverse agro-ecologies, fertile soil and plenty of water potential, it has a huge potential for production of a variety of agricultural products including horticultural crops both for export purpose and domestic consumption. However, so far the horticulture sector of the region is not well developed and its contribution to regional and export markets is very low. Besides, only small assortments of fruits and vegetables are produced in the region.

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Horticultural crops such as fruits and vegetables in the region are produced mostly by smallholder private peasants in small patches of lands using traditional farming practices where no improved varieties, fertilizers, chemicals and other inputs are used. The areas allocated for the production of fruits and vegetables are also very small. Thus the production and productivity of fruits and vegetables in the region as well as at country level is very low. Currently, very few commercial farms are participated in the production of fruits and vegetables in the region compared to Oromia and SNNP states (Joonsten et al., 2011).

Generally, horticulture industry in the region is facing a number of challenges in both production and marketing aspects. Some of the production constraints include improper agronomic practices because of lack of skills and knowledge in the production and management practices; limited accessibility to improved agricultural technologies; shortage of inputs like fertilizers, improved seeds and pesticides; occurrence of diseases and insect pests; improper harvesting and harvest handling; poor packaging, sorting, and processing which do not add value to the products and do not increase the shelf life and safety of the products. Among the market constraints multiplicity of actors and unfair competition, lack of market information, seasonal price fluctuation, unavailability of market facilities and infrastructure, poor handling and transportation, absence of norms and regulations for fair marketing, considerable role of middlemen or brokers, etc are the major once.

Preparation of a comprehensive horticulture development strategy that gives more emphasis on the fruit and vegetable sub-sector is therefore a prime prerequisite to solve the above mentioned constraints of the sector in the region.

1.1 Horticulture Subsector Development in Ethiopia The production of horticultural crops like fruits and vegetables is certainly not a new activity in Ethiopia. It has been undertaken for decades. However, the subsector is still not well developed. The area devoted for the production of fruits and vegetables and the quantity produced is much less than the other grain crops. In 2012/13 cropping season for instance, the share of fruits and vegetables from total crop production was 1.6 and 15.1%, respectively. Of the total area under crop cultivation in the country during the same year, the area under fruits and vegetables was 0.5 and 2.9 % respectively which is insignificant as compared to cereals and other crops (Table 1).

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Table 1. Share of fruits and vegetables on crop production and cultivated area by private peasant holdings in 2012/13 (2005 E.C) cropping season in Ethiopia

Type of crop Cereals Oil seeds Pulses Cash crops Vegetable including root crops Fruit crops Total

Area coverage Hectare % share 9,601,035.26 71.2 1,863,445.42 13.8 818,449.30 6.1 747,929.20 5.5 396,513.54 2.9 61,972.60 13,489,345.32

0.5 100

Production Productivity Tons % share (ton/ha) 19,651,151.60 66.1 2.05 2,751,031.20 9.3 1.48 726,664.40 2.4 0.89 1,625,820.70 5.5 2.17 4,482,170.00 15.1 11.30 479,336.10 29,716,174.00

1.6

7.73

Source: Summarized from Central Statistic Agency, Statistical Bulletin (2013)

Fruits and vegetables in the country are produced mostly by smallholder farmers on small patches of land using traditional farming practices, which accounts 95% of the total fruit and vegetable production of the country. The production practices are characterized by low input and low output production systems. Most smallholder farmers do not use appropriate agronomic practices specific to the crops. The use of improved seeds and planting materials of high yielding varieties and other inputs such as fertilizers and plant protection material is not common in most farms of peasant smallholders. Technical training and extension services on improved crop husbandry techniques are rear. As a result average productivity levels of fruits and vegetables in the country are very low. Besides, only limited and common types of fruits and vegetables are produced in the country. Red pepper, potato, sweet potato, Taro/Godere and Ethiopian cabbage are the dominant vegetables produced in the country with the area coverage of about 34.4%, 18.9%, 10.5%, 10.4% and 8.8%, respectively. In terms of production only five vegetables account more than 75% of the total vegetable production of the country with the share of sweet potato 26.4 %, Taro/godere 24.9%, potato 19.3 %, and Ethiopian cabbage 8.3% (Table 2).

Recently however some commercial private farms are partly engaged in the production of fruits and vegetables which are concentrated in central rift-valley regions of the country, in Oromia and SNNPR (EHPEA, 2011). Most of the commercial fruit and vegetable producers are still at the pioneer stage and their contribution to the national fruit and vegetable production is very low which accounts only about 5%. Most of the commercial farms are testing different types of crops and varieties to find the optimal product-marketing mix.

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Table 2. Area, production and productivity of commonly grown vegetable crops by private peasant holdings for Meher season 2012/13 (2005 E.C.) in Ethiopia

Vegetable crops Lettuce Head cabbage Ethiopian Cabbage Tomatoes Green peppers Red peppers Swiss chard Beetroot Onion Potatoes Garlic Taro/Godere Sweet potatoes Others Total

Area coverage Hectare % share 75.01 0.02 3,049.01 0.77 34,791.05 8.77 7,237.35 1.83 10,588.52 2.67 136,503.73 34.43 310.7 0.08 1,795.25 0.45 1,132.94 0.29 21,865.37 5.51 74,934.57 18.90 21,258.43 5.36 41,337.62 10.43 41,633.95 10.50 396,513.50 100

Production Tons % share * * 23,224.70 0.52 370,995.20 8.28 55,514.30 1.24 85,547.80 1.91 316,561.50 7.06 329.00 0.01 16,848.50 0.38 5,104.70 0.11 219,188.60 4.89 863,347.80 19.26 222,547.90 4.97 1,117,773.40 24.94 1,185,050.80 26.44 4,482,034.20 100

Productivity (ton/ha) * 7.6 10.7 7.7 8.1 2.3 1.1 9.4 4.5 10.0 11.5 10.5 27.0 28.5 7.6

Source: Summarized from Central Statistic Agency, Statistical Bulletin 2013

Fruit production in general is rear in the country. The fruit crops grown by the private smallholder farmers as well as by commercial farmers cover only a small token area and production in the country compared to other crops. Although the country is endowed with various agro-ecologies which can be suitable for the production of all temperate, tropical and subtropical fruit, only some tropical and subtropical fruits are produced in the country. Banana is the dominant fruit produced in the country and covered about 58.1% of the total fruit crop area followed by avocado (14.4%) and mangoes (14.2%). From the total 479,336.0 tons of fruits produced in 2012/13 cropping season banana, mango, papaya and orange contributed 63%, 14.6%, 8.1% and 7.5%, respectively (Table 3).

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Table 3. Area, production and productivity of commonly grown fruit crops by private peasant holdings for Meher season 2012/13 (2005 E.C.) in Ethiopia

Area coverage Hectare % share 8,938.24 14.4

Production Ton % share 25,633.20 5.3

Banana

36,012.19

58.1

302,502.20

63.1

8.40

Guava

1,492.32

2.4

1,173.00

0.2

0.79

Lemon

754.23

1.2

5,516.80

1.2

7.31

Mango

8,808.64

14.2

69,750.70

14.6

7.92

Oranges

2,999.21

4.8

35,745.80

7.5

11.92

Papaya

2,752.08

4.4

38,694.30

8.1

14.06

Others

215.69

0.3

320.00

0.1

1.48

Total

61,972.60

100

479,336.00

100

Fruit crops Avocado

Productivity (ton/ha) 2.87

Source: Summarized from Central Statistic Agency, Statistical Bulletin 2013

1.2 Horticulture Subsector Development in Amhara Region 1.2.1 Overview of horticulture subsector in Amhara Region Amhara region has different agro-ecologies and fertile soil that are suitable for production of different types of fruits and vegetables. The production of fruits and vegetables is usually practiced by smallholder farmers throughout the region like it is in the country. According to the information obtained from Regional Investment Agency, some private commercial investors are currently starting to engage in the horticulture sector. However, their contribution to the regional fruit and vegetable production is very low.

The production practice of fruits and vegetables is predominantly using traditional farming system for local market as cash crops. The area allocated for the production of fruits and vegetables and their production and productivity in the region is very low. According to CSA data from 2013, from the total area covered by crops, about 0.06% and 2.14% of the area is covered by fruits and vegetables, respectively. The remaining 97.8% of the cultivated area in Amhara region is covered by grain and other crops (Table 4).

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Table 4. Area coverage and production of fruits, vegetables and other crops during 2012/13 cropping season (private peasant holdings) in Amhara region

Area coverage Type of crops Hectare Grain Crops 4,366,386.09 Vegetables(+ root and tuber crops) 96,220.00 Fruits 2,881.41 Others (Chat, Coffee, Hops) 33,996.00 Total 4,499,483.50 Source: Central Statistic Agency, 2013

% share 97.04 2.14 0.06 0.76 100

Production Tons 7,312,204.50 707,285.40 20,993.90 198,710.70 8,239,194.50

% share 88.7 8.6 0.3 2.4 100

The contribution of the region to the national fruits and vegetables production compared to the other regions of the country is very low. Based on four year data the region contributed on average 17.2% to the national vegetable production. Whereas South Nations and Nationalities and People and Oromia Regional state contributed on average about 42.7% and 37.8%, respectively in the national vegetable crops production (Figure 1). Similarly the contribution of Amhara region to the national fruit production was very low which accounted only 4.9%. On average 61.7% of the national fruit production was contributed from SNNP region, whereas the contribution of Oromia Regional State was about 29.7% (Figure 2).

50 40 30 20 10 0 2003 E.C.

2004 E.C. SNNP

Oromia

2005 EC Amhara

2006 E.C.

Others

Figure 1. Vegetable production of Amhara region compared with selected regions in Ethiopia

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70 60 50 40 30 20 10 0 2003 E.C.

2004 E.C. SNNP

Oromia

2005 E.C Amhara

2006 E.C

Others

Figure 2. Fruit production of Amhara region compared with selected regions in Ethiopia

Similar to the country, only some assortments of fruits and vegetables are produced in the region. Common vegetables and fruits produced by smallholder farmers in the region are summarized in Table 5 and Table 6. Currently about 707.3 thousand tons of vegetables of various types including root and tuber crops are produced on about 96 thousand hectares of land in the region. Vegetables like red pepper, potato, onion and garlic are the dominant vegetables grown in ANRS. Currently only two crops namely red pepper and potato covered more that 75% of the vegetable areas. In terms of production, potato and garlic accounted more than 65% of the total vegetable production in the same year. Fruit production in ANRS is much lower than vegetables. Only 20,993.9 tones of fruits are produced for instance 2012/13 cropping season on 2,881.4 hectares of land which is very low compared to the area and production of vegetables in the same year (CSA, 2013).

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Table 5. Area coverage, production and productivity of commonly grown vegetable crops by private peasant holdings for Meher season 2012/13 (2005 E.C.) in Amhara region

Vegetable crops Lettuce Head cabbage Ethiopian cabbage Tomato Green pepper Red pepper Swiss chard Beetroot Carrot Onion Potato Garlic Sweet potato Total

Area coverage Hectare % share 23.68 0.02 578.02 0.60 976.58 1.01 657.37 0.68 1,508.06 1.57 50,585.59 52.57 35.06 0.04 200.17 0.21 147.09 0.15 7,917.65 8.23 22,513.17 23.40 10,362.70 10.77 714.22 0.74 96,219.36 100

Production Tons % share 54.90 0.01 6,179.50 0.87 9,234.70 1.31 5,325.10 0.75 12,017.40 1.70 97,901.90 13.84 169.70 0.02 1,504.90 0.21 774.40 0.11 99,972.60 14.13 348,835.80 49.32 115,339.30 16.31 9,975.20 1.41 707,285.40 100

Productivity (ton/ha) 2.3 10.7 9.5 8.1 8.0 1.9 4.8 7.5 5.3 12.6 15.5 11.1 14.0

Source: Summarized from Central Statistic Agency, Statistical Bulletin 2013 Table 6. Area coverage, production and productivity of commonly grown fruit crops by private peasant holdings for Meher season 2012/13 (2005 E.C.) in Amhara region

Fruit crops Banana Guava Mango Oranges Papaya Others Total

Area coverage Hectare % share 689.36 23.92 331.57 11.51 246.85 8.57 937.48 32.54 309.53 10.74 366.62 12.72 2,881.41 100.00

Production Tons % share 1,496.60 7.13 330.40 1.57 1,040.90 4.96 12,831.50 61.12 1,288.90 6.14 4,005.60 19.08 20,993.90 100.00

Productivity (ton/ha) 2.17 1.00 4.22 13.69 4.16 10.93

Source: Summarized from Central Statistic Agency, Statistical Bulletin 2013

Although the fruit and vegetable subsector of horticulture in Amhara region is at low level of development, it shows an encouraging improvement both in area coverage and production in the last years. However the improvement both in area coverage and production were fluctuating from year to year. According to the data from Central Statistic Agency of the country the vegetable production increased from 2007/8 to 2010/11 yearly on average by 27% and 40% in area and production respectively, compared to the 2006/7 meher season in stallholder farmers (Figure 3). The fruit production increased in the same year interval by 60% and 63% in area and production respectively which was relatively higher than that of the vegetables (Figure 4). ANRS Horticulture Development Strategy

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80 60 40 20 0 2007/8

2008/9 Area

2009/10

2010/11

Production

Figure 3. Development of vegetable area coverage & production compared to the year 2006/7 Meher season by Smallholder farmers in Amhara Region Source: CSA, 2007-2012

120 100 80 60 40 20 0 2007/8

2008/9 Area

2009/10

2010/11

Production

Figure 4. Development of fruit area coverage & production compared to the year 2006/7 Meher season by Smallholder farmers in Amhara Region Source: CSA, 2007-2012

The relative minimal increment both in area and production of fruits and vegetables could be attributed by greater attention given by the regional government and extension services for the subsector. This is because, that the subsector has been identified as one of the priority sectors of the regional government in the improvement of the livelihood and income of the smallholder farmers in the region. The government has invested a lot in the development of infrastructures such

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as roads, construction of irrigation dams and capacity building activities both for the farmers and experts that facilitate the growth and development of the subsector.

1.2.2 Opportunities of horticulture subsector development in Amhara Region Amhara National Regional State is an agrarian region where more than 85% of its population is living in the rural area and practicing crop production as their source of its livelihood (USAID, 2000). The region is endowed with favorable environmental conditions and plenty of natural resources that are required for the production of crops including horticultural crops.

Suitable agro-climatic conditions and fertile soil As a result of altitudinal differences existing in the region, ANRS has diverse agro-climatic conditions which are suitable for the production of various types of horticultural crops (Table 7). In highlands where the temperature is relatively cool, temperate fruits and vegetables like apple, pear, plum, peach, cabbages, potatoes and others can be grown, whereas in low lands with relatively high annual average temperatures typical tropical and subtropical horticultural crops can be grown in the region.

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Table 7. Major agro-ecological zones (AEZs) of Amhara region

AEZ Description SA1 Hot to warm semi-arid SM1 Hot to warm submoist SM2 Tepid to cool sub-moist SM3 Cold to very cold sub-moist M1 Hot to warm moist M2 Tepid to cool moist M3 Cold to very cold moist SH1 Hot to warm subhumid

Area (km2) 77

Percentage of total area 0.1 10.2

Biophysical constraints Very low moisture Low moisture

Potential/recommendation Moisture conservation and irrigation Supplementary irrigation

17,830 39,352

22.4

Low moisture

Supplementary irrigation

2,143

1.2

Very cold

Restricted to afro-alpine

27,319

15.6

High agricultural potential

66,521

37.9

7,041

4.0

Soil workability (vertisols) Soil workability (vertisols) Very cold

4,162

2.4

Rugged topography and stony soils Rugged topography and shallow soils n.a. n.a.

Very high agricultural potential but marginal for perennial crops Very high agricultural potential but marginal for perennial crops n.a. n.a.

SH2

Tepid to cool sub-humid

5,316

3.0

A1

Hot to warm arid Lake Tana

3,242 2,412

1.8 1.4

High agricultural potential Restricted annual crops

Total 175,415 100.0 n.a. = not available. Source: CEDEP (1999).

Based on the suitability of environmental conditions, the availability of irrigation water and soil fertility, Joonsten, et al., (2011) identified various areas in the region which are suitable for commercial production of fruits and vegetables (Table 8).

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Table 8. Areas suitable for commercial production of fruits and vegetables across four major regions in Ethiopia

Regions

Amhara

Zone

Weredas

West Gojam West Gojam South Gondar Sidama

Achefer Bahidar Zuria Fogera

Soil Depth Well 50drained 150 Well 50drained 100 Imperfectly > 150 drained Well > 150 drained Well > 150 drained Well 50drained 150 Well 50drained 150 Well > 150 drained Drainage

Hawasa Zuria Northern Arbaminch SNNPR Omo Zuria Northern Chencha Omo Eastern Fentale Showa Eastern Aadamitulu Oromiya Showa & J. Kombolcha Tigray Southern Mekele Zuria Well drained Southern Raya Azebo Well drained Central Laelay Well Maychew drained

Temp (0C) Soil Altitude RF (mm) Max Min Texture masl Clayey 1500 1430 24 11 Clayey

1870

1400

23

12

Clayey

1980

1285

23

10

Loamy

1700

1034

25

11

Clayey

1290

1092

23

12

Clayey

2130

1060

20

10

Loamy

930

517

28

12

Loamy

1640

730

27

12

50100 > 100

Loamy

1970

500

25

10

Loamy

1600

760

27

12

50150

Clayey

1980

700

25

11

Source: Joonsten, et al., 2011

Water resource potential The mean annual rainfall of the region varies from 300 mm in the east (Habru and Kobo woredas of North Wello) to over 2000 mm in the Awi zone in the west, specifically, the Banja Shikudad, Sekela and Guangua woredas. Generally, the western parts of the region are characterized as high rainfall and high agricultural potential areas including irrigation potential, with precipitation exceeding 1200 mm annually and irrigation potential (Figure 5). Relatively low rainfall and agricultural potential areas are found in the North Wello and Wag Hemra zones. The region experiences both unimodal and bimodal rainfall patterns, generally, in the west and east, respectively (BoA, 1990).

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Figure 5. High rainfall, moisture deficit and pastoralist zones in Ethiopia based on rainfall and evapo-transpiration Source: Seleshe Bekele Awulachew, 2010

Besides, the region has both underground (Figure 6) and surface water potential that can be used as source of irrigation water. Surface water potential of the region includes lakes and rivers such as Abay (the Blue Nile), Belese, Tekezie, Anghereb, Athbara, Mile, Kessem, Jema, Tana, Zengena, Ardibo and Logo (ANRS BoFED, 2011). The regional and national governments are thus developing large, medium and small scale irrigation in different parts of the region to enhance the production of fruits, vegetables and other cash crops so that to improve the livelihood of the smallholder farmers (Figure 7).

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Figure 6. Underground Water Potential of Ethiopia Source: Seleshe Bekele Awulachew, 2010

Figure 7. Existing large, medium and small scale irrigation Schemes in Ethiopia Source: Joonsten et al., 2011

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Infrastructure development Nowadays most districts in the region have access to roads, electricity and telecommunications through the rural road development and electrification strategy of the regional and national governments. The presence of cold storage in Bahir Dar international airport facilitates the export market of horticultural produces in the region. Besides, two new cold storage structures are under construction in Merawi and Kobo towns which may increase potentials of the region for the development of fruit and vegetable sub-sector.

Labor force Horticulture farming is a labor-intensive system of crops production which requires about 30 mandays per hectare (EIA, 2012). The Amhara region is a very big and probably the most populated region in Ethiopia. According to the estimate of CSA in 2008 the population of Amhara region is 20,136,000. More than 50% of the population is being at working age (BoFED, 2003) that can be actively engaged in the production of horticultural crops. Besides labor cost for unskilled as well as university graduates is very low as it is also at country level (EIA, 2012).

Increased demand in export and local markets The horticulture industry is one of the most significant sectors of agriculture in the world. The demand for horticultural crops including fruits, vegetables and flowers has shown an increasing trend. The economic growth in horticulture has by far exceeded that in most agricultural commodities during the last decayed. Since 1970s, annual growth rates for horticultural crop supplies have surpassed cereals (http://www.prnewswrire.com ). The annual growth rate between 2001 and 2008 was on average about 13% (HODECT, 2010). The increasing world consumption of horticultural products is driven by different factors including rising incomes, urbanization, and awareness of health, development of new production practices, postharvest technology, shipping and storage facilities. Such technologies allow the distribution of produces throughout the world, providing year-round product availability, and increased market opportunities (Patrick Brown, 2005).

The current annual world fruit production is estimated to be about 636.5 million tons and that of vegetable is about 1.1 billion tons (FAO STAT, 2012). The industry plays a significant role in the economy of the various countries including Ethiopia. The United States and Europe are the largest importers of horticultural produce. However, the highest growth in export markets is recorded in Russia, India, and UAE. Most horticultural crops imported by these markets are grown in Latin ANRS Horticulture Development Strategy

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America and the Caribbean, and Africa, respectively (HODECT, 2010). The growth of world export market can be considered as an important opportunity for farmers in Ethiopia including those in Amhara Region to produce fruits and vegetables having export quality, since the country is near to the world market compared to other exporters (Joonsten, et al., 2011).

The export of Ethiopian fruits and vegetables to the world market is generally very low. However, there is an increasing trend in the last few years. The exported fruits and vegetables increased from 25,300 tons in 2002/03 to 63,140 tons in 2009/10. In the same year interval, the foreign exchange earnings of the sector increased from 9.6 to 30 million US dollars (Table 9). The export destination of Ethiopian fruits and vegetables are mostly neighboring countries like Djibouti, Sudan and Somalia where by more than 85% of fruits like citrus, avocado and banana are exported to Djibouti followed by United Arab Emirates. High value fresh vegetables like green beans and peas including herbs are also exported to

United Kingdom, United Arab Emirates and the Netherlands

which may create an opportunity for the improvement of fruit and vegetable sectors in the country (MoA, 2013) at large and in the Amhara Region in particular.

Table 9. Main exported vegetables in 2011

Type of crops

Quantity (tons)

Export value ($,USD)

44,352

237,787,000

198

6,808,000

Green beans (Phaseolus)

3,699

6,385,000

Tomato

17,665

6,224,000

Pepper

2,835

5,127,000

Fresh vegetables Dehydrated vegetables

Source: Ministry of Agriculture, 2013

Fresh and processed fruits and vegetables have also a large domestic market in Ethiopia, significantly higher than the exported volumes. The population of the region as well as the country is in increasing trend which creates high potential demand for fruits and vegetables. Although there are limited number of processing plants in the region and in Ethiopia, fruits and vegetables are important inputs for agro-processing industries producing products for local or export markets.

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Investment incentives, guarantees and protections The Ethiopian Government has developed a package of incentives under Regulations No.84/2003 for investors engaged in new enterprises and expansions, across a range of sectors including horticulture. These incentives are available to both domestic and foreign investors without any difference in their nationalities. The following are types of incentives available to both foreign and domestic investors (EIA, 2012): Customs duty exemption 

A 100 percent exemption from the payment of import customs duty and other taxes imposed on imports is granted to investment capital goods and construction materials necessary for the establishment of a new enterprise or for the expansion or upgrading of an existing enterprise as well as spare parts worth up to 15 percent of the value of the imported capital goods;



Investment capital goods imported without the payment of import customs duties and other taxes imposed on imports may be transferred to investors enjoying similar privileges;



Exemptions from customs duties or other taxes levied on imports are granted for raw materials and packing materials necessary for the production of export goods. Taxes and duties paid on raw materials and packaging materials are drawn back at the time of exports of finished products. The voucher system and bonded manufacturing warehouse facilities are also in place.



All goods and services destined for export are exempted from any export and other taxes imposed on exports.

Income tax exemption 

Any income derived from an approved new manufacturing, agro-industrial or agricultural investment is exempted from the payment of income tax ranging from 2-8 years depending up on the area of investment, the volume of export and the location in which the investment is undertaken.



Income derived from an expansion or upgrading of an existing manufacturing, agro-industrial or agricultural enterprise is exempted from income tax for a period of two years if it exports at least 50% of its products and increases, in value, its production by 25%.

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Loss carry forward 

Business enterprises that suffer losses during the tax holiday period can carry forward such losses for half of the income tax exemption period, after the expiry of such period.

Remittance of fund 

Foreign investors are permitted to make the different remittances out of Ethiopia in convertible foreign currency at the prevailing rate of exchange on the date of remittance.

Investment guarantee and protection 

In Ethiopia both the Constitution and the investment Code protect private property. Ethiopia is also a member of MIGA, which issues guarantees against non-commercial risks to enterprises that invest in signatory Countries. Besides, the Country has signed bilateral investment promotion and protection treaties with a number of Countries and is also in the process of signing such treaties with a number other Countries.

1.2.3 Constraints of horticulture sector development in Amhara Region Despite enormous potentials and favorable environmental and socioeconomic advantages, horticulture industry in Amhara region is relatively under developed. The margin of current achievements, in terms of area and output, is very small compared to the possible level that can be attained. This is due to the fact that horticulture sector in the region has been suffering from various serious constraints. Generally, constraints of the horticulture industry are summarized as follows.

Improper agronomic practices Most horticulture producers in Amhara region usually adopt traditional farming practices. The horticulture farming systems in the region are often based on local knowledge and skills. Inadequate knowledge and skills on many aspects of horticultural crop production, pest management and postharvest management techniques represents a serious constraint for the production of quality fruits and vegetables. Farmers and extension agents lack the required skills and knowledge and most producers could not use agricultural inputs as per recommendation.

Prevalence of diseases and insect pests Since most fruits and vegetables are produced in low and mid altitude areas of the region, there is high incidence of diseases and insect pests resulting in low productivity and quality of fruits and

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vegetables. Besides, there is skill and knowledge gap for identifying what types of diseases and pests prevailed in the area and recommending their appropriate controlling measures.

Input supply problems Inputs for horticultural production (such as improved seeds, fertilizers, pesticides and irrigation equipment) are supplied to farmers through different channels such as governmental organizations, NGOs, farmers’ cooperatives and unions and traders. However, farmers faced shortage of supply and untimely delivery of improved seeds and planting materials for vegetables and fruits. Moreover, although there is no shortage of fertilizers supply, they are expensive and delivered untimely. Pesticides are supplied to farmers mostly by private traders. Since most of these traders lack knowledge and are illegal, they supplied low quality pesticides and sold to farmers at expensive prices as farmers do not have other alternative suppliers. Sometimes traders supplied farmers expired pesticides which totally destroyed their horticultural crops. Different irrigation equipment like motor pumps and rope and washer pumps were supplied to farmers by agriculture offices and donor organizations. But lack of spare parts and unavailability of the nearby local workshop for repair and maintenance of such equipment are the major constraints in the irrigation stream.

Poor infrastructures Infrastructures such as rural roads and means of communication for efficient flow of goods and market information are limited. Most of the production sites are not accessible by vehicles. Handling and means of transportation are rudimentary. The products are transported to the road side by donkeys, camels or by people. Such type of transportation requires longer time to reach the market and affects the quality of the products. Moreover, the farmers don’t practice sorting and grading and the products are packed by traditional packaging materials such as baskets and sacks which expose the products to weathering and physical damages and thus, to deteriorated quality. Storage facilities are rudimentary with no cooling or preservation systems.

Marketing and market information Horticultural crops are perishable by nature. They cannot be stored for long period of time without quality deterioration. Thus, there is a serious problem in the marketing of horticultural crops in the region. There is no direct communication between the producers, traders (wholesaler, retailers) and consumers. The farmers sell their products through negotiation with middlemen or broker. But the farmers have no bargaining power and mostly they are price takers which influence their income. ANRS Horticulture Development Strategy

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There is fluctuation of prices in horticultural crops. Most of the horticultural crops are harvested during the same period that increases the supply and forces the price to decline.

1.3 National and Regional Agricultural Development Policies, Strategies and Plans Poverty reduction is the core objective of Ethiopian national and regional development programs. Ethiopia started the liberalization process in 1992 with the implementation of a series of economic reform programs. The Agricultural Development-Led Industrialization (ADLI) strategy, adopted in the mid 1990s established agriculture as an engine of economic growth. The main driving force of ADLI has been to improve agricultural extension services, promote better use of land and water resources, enhance access to financial services, improve access to domestic and export markets, and provide rural infrastructure (Demissie Chanyalew et al., 2010).

Since 2002, within the framework of ADLI, two national development plans were implemented and the third plan, Growth and Transformation Plan (GTP1), is currently underway with the objective of attaining rapid and sustainable economic growth. The second phase of Growth and Transformation Plan (GTP 2) which will be implemented in the next five years (2015/16-2019/20) is under preparation that will strengthen the results achieved in the first phase. In the first two plans, SDPRP (2002/03-2004/05) and PASDEP (2005/06-2009/10), which focused on agricultural growth via domestic and international trades, greater emphasis was given on commercialization of smallholder agriculture and enhancing private sector development. The establishment of the Ethiopian Commodity Exchange (ECX) and the promotion of farmers’ cooperatives were strategic tools to facilitate the commercialization process. During the last two planning periods, contract farming was not explicitly stated in the list of the development strategies. Like the two last plans, GTP (2010/11-2014/15) still targets agriculture as a major source of economic development, but focuses on intensifying commercialization through the involvement of smallholder farmers and large commercial farms(Demissie Chanyalew et al., 2007).

In the GTP1, there is a fundamental shift to the production of high-value crops (like vegetables and fruits) and the importance of contract farming schemes that link smallholder farmers to high-value markets. As a coordination strategy, contract farming enhances the growth of the agro-processing industries to add value to primary products and it improves the capacity to meet stringent trade requirements of export markets. Furthermore, contract farming provides a strategic option to ANRS Horticulture Development Strategy

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attract Foreign Direct Investment (FDI), specifically transnational corporations in agriculture that can have significant role in the economy of the country in terms of income, employment, poverty alleviation, and technology transfer. The GTP1 also encouraged the private sector to invest in agriculture in lowland areas where extensive farming could be practiced. Moreover, in the highland areas (like Amhara region), investment will be targeted with high-value export horticultural products that can be produced on limited land using abundant labor. It is expected that such investments will be integrated with smallholder agriculture through contractual arrangements in order to provide access to guaranteed and sustainable markets for smallholders.

Within the framework of ADLI, Rural Development Policy and Strategies (2003) present specific policies and strategies to guide agricultural and rural development. The RDPS includes not only the agriculture sector but also rural infrastructure and social development programs and the development of trade and industry that support the development of agriculture. Key elements of the RDPS include rural and agricultural centered development as a means of ensuring rapid economic growth, enhancing benefits to the people, eliminating food aid dependency and promoting the development of a market-oriented economy. It also sets out five basic directions for agricultural development such as labor intensive strategy, proper utilization of agricultural land, diversification according to agro-ecological zones, building on experiences and indigenous knowledge for deploying new technologies in conjunction with human resource development, and an integrated development path among various activities and products in agriculture as well as linking these to education, health and infrastructure development.

1.4 The Rationale to Formulate Regional Horticulture Development Strategy The horticulture industry in Amhara region is constrained by a number of challenges in both production and marketing aspects. Production constraints include shortage of inputs; occurrence of pests and plant diseases; limited accessibility to improved agricultural technologies, pesticides, seeds; poor packaging, sorting and processing which do not add value to the products and do not increase the shelf life and the safety of the products; lack of skilled labor limiting uniform planting and harvesting. Farmers’ skills, knowledge in production methods and product management are seldom backed by scientific recommendations, which affect the quality of horticulture products. The absence of conducive policies and enforcement mechanisms characterized the horticulture sector both in production and marketing. Market constraints include, multiplicity of actors and unfair competition, lack of market information, seasonal price fluctuation, unavailability of market

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facilities and infrastructures, rudimentary handling and transportation, absence of norms and regulations for fair marketing, considerable role of middlemen or brokers, etc.

So far there is barely any comprehensive horticulture development strategy in the Region, despite some piece meal efforts. The MoA is currently trying to develop a national horticulture development strategy. Prior to this effort, the Horticultural Exporters Association of Ethiopia has attempted to develop a strategy for the horticulture industry in 2007. The focus, however, was mainly to promote exportable horticultural crops, especially floriculture. The root and vegetable crops were neglected and/or insufficiently addressed. Therefore, the preparation of a regional horticulture development strategy is timely and relevant.

The strategy assesses the potentials, constraints and possible solutions for horticulture industry development in the region so as to increase the competitiveness and profitability of the industry. Moreover, the strategy includes means of enhancing benefits of different actors in the value chain from input supply via to the products reach to final consumption/export. The novelty of the strategy is that it includes monitoring and evaluation plan and logical framework that help evaluate the performance of the sector at the end of each year, 2015-2019.

1.5 Alignment of the Regional Strategy with National Horticulture Development Strategy The national horticulture strategy (draft) was developed by the ministry of agriculture in 2013. The aim of the strategy is improving the sector through proper and sustainable utilization of the existing suitable natural resources, use of proper cultural and management practices, establishing market linkages, supporting the existing and establishing new agro-processing industries and reducing the existing high level of postharvest losses so that smallholder and commercial growers are able to produce high quality and quantity of products which satisfy the safety standards of local as well as export markets. In this regard the aim of horticulture strategy of Amhara region is fully in line with that of the national strategy. Like the national strategy, this strategy gives more emphasize to the smallholder vegetable and fruit production sub-sectors. Besides, the vision, goals and objectives of Amhara region horticulture development strategy are derived from that of the national horticulture strategy, the strategic issues that need to be addressed and the respective methods of interventions to improve the horticulture sector development in the region are almost similar to that of the national strategy. ANRS Horticulture Development Strategy

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While the national horticulture strategy is implemented in the next ten years from 2013 to 2023 (MoA, 2013), the Amhara region horticulture development strategy is developed only for five years (2015-2019).

1.6 Scope of the Strategy The scope of this strategic document is bounded for smallholder farmers, private investors and youths who are involved in fruits and vegetables sub-sector’s input supply, production, exchange, processing and export in Amhara region. Specifically, the strategic document indicates the possible interventions for each of the strategic issues that can enhance profitability and competitiveness of vegetable and fruit sub-sector in the region. The document is mainly focusing on the Horticulture sector (fruits and vegetables) in Amhara region in general and Tana Beles growth corridor in particular. It also focuses on the entire value chain in the horticulture industry. Both supply and demand sides of the value chain were assessed. Special attention were given to high value crops grown in Mecha, Jabitehenan, Habru, Kalu, Gayint and Farta woredas using both traditional and modern irrigation infrastructure, assuming that the information obtained from these woredas represent the regional picture. The primary beneficiaries of the strategy are smallholder farmers and entrepreneurs who are engaged in the horticulture production and marketing. Besides, agro-dealers, farmers’ organizations/ cooperatives, processors, transporters, traders and consumers are in the center of the strategy design. Moreover, support service providers both financial and nonfinancial, and the business enabling environment were also addressed. The strategy is expected to cover the potentials of transforming the subsistence production to high value and commercialized farming through promoting farming as business, clustering and producing quality products for domestic and export markets.

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1.7 Approaches followed in the Strategy Development The strategy is prepared by a team of consultants from Bahir Dar University in collaboration with ANRS BoA and Agro-BIG. The procedures followed in developing the strategic plan are explained as follows:  A multidisciplinary team of consultants was organized, consisting of individuals from horticulture, agricultural economics, development management/economics, and environment and climate change educational backgrounds that have relevant work experiences in strategic plan development and research.  The technical and financial proposal was prepared by the team and submitted to the program implementing partner (BoA) for comments and corrections were made accordingly in a validation workshop.  A critical review of relevant literatures was made focusing on similar works done in Ethiopia and elsewhere.  Secondary data on input supply, production, processing, marketing and export of horticulture products were collected from different sources such as CSA, agricultural office reports (at bureau, zone and woreda levels), relevant research papers and other relevant office reports.  Primary data from six sample woredas representing the different agro-ecologies of the region (Habru and Kalu from low land; Lay Gayint and Farta from high land; and Jabi Tehinan and Mecha from mid-land) were collected through individual household survey, focus group discussion and key informant interviews. The key informant interviews and discussion were also held with different key stakeholders at bureau and zone levels.  Both the primary and secondary data collected from different sources were analyzed to identify strengths, weaknesses, opportunities and threats of horticulture industry in Amhara region. In addition, the strategic issues that need to be addressed and the strategic interventions that need to be implemented for developing horticulture industry in the region were clearly identified.  In the implementation plan of the strategy responsible stakeholders and their responsibilities are indicated. Similarly, the strategy document includes the monitoring and evaluation plan and the logical framework that help evaluate performance of horticulture industry in the region over the plan years 2015 - 2019.  Validation workshop was organized and the strategy was presented for different stakeholders which are responsible for the development of the industry. Suggestions and comments were incorporated in the final strategic plan document. ANRS Horticulture Development Strategy

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 Finally the ANRS horticulture development strategic plan document will be submitted to the program implementing partner (BoA) and endorsed by the regional government/cabinet and then it will be distributed or communicated to the respective stakeholders. As the owner of the document the Bureau of Agriculture is responsible for endorsement and distribution of the Regional Horticulture Development Strategy.

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2. Vision, Goals and Objectives of the Strategy Vision The horticulture industry envisions developing a competitive horticulture sector capable of transforming the existing subsistence farming to high value and commercialized farming through promoting horticulture farming as business, clustering and sustainable supply of high quality products for both national and international markets.

Goals The goal of horticulture industry in the next five years is to increase the contribution of the sector to the regional GDP and improvement of smallholder farmer’s livelihood in the region.

Objectives In the next five years, by 2019: 

Fruit and vegetable production will increase three times the current 730 thousand tons in the region.



Fruit and vegetable export earnings of the Amhara region will increase to one hundred million US Dollar.



Share of horticulture sector to the regional crop production will increase from the current nine percent to twenty percent.



Production of fruit planting materials in the region will increase every year by 20% from the current 31.7 million in number



Smallholder farmer`s gross margin from fruit and vegetable sub-sector will increase by 25% every year.



Participation of youths and women in fruit and vegetable sub-sector will increase from 1.6 to 5 million beneficiaries



Post-harvest losses in horticulture sector will reduce by 50% from the current level ranging from 30 to 35%.



Share of commercial farming system of horticultural crops will increase to 30% from the current level of less than 3%.



Five fruit and vegetable agro-processing industries will be established in selected potential areas of the region.



Water use efficiency of the irrigation schemes will be improved from 40% to 60%

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3. SWOT Analysis In identifying strategic issues, first it is important to analyze the existing situations of horticulture industry in Amhara region and the overall assessment results can then be summarized with a SWOT analysis, which assesses the strengths and weaknesses of the value chain organization (Table 9, internal factor analysis) and the opportunities and threats of the value chain environment (Table 9, external factor analysis) of horticulture industry in the region.

Table 10. Strengths, weaknesses, opportunities and threats of horticulture industry in Amhara region

Internal factor analysis Strengths Weaknesses  Farmers’ awareness and experience for irrigation  Inadequate supply of quality seeds and season production and use of modern irrigation planting materials for vegetables & fruits schemes  Shortage of pesticides, spare parts and maintenance services for irrigation  Farmers’ experience for producing various horticultural crops equipment  Many large institutions in the region consuming  Poor postharvest handling technologies, more vegetables & fruits as potential domestic leading to high postharvest loss and low markets quality produces  Several supporting organizations in the region  Low quality products for export providing extension services, training and improved  Weak market linkage and information technologies between producers and potential buyers, leading to low margin to producers and loss of produces  Lack of technically well equipped responsible experts in horticulture sector  Limited skill, knowhow and exposure of farmers and experts to proper agronomic practices External factor analysis Opportunities Threats  Diverse agro-climatic conditions and fertile soil  Disease and pest incidence on different suitable to production of various horticultural crops horticultural crops  Abundant surface and ground water resource  Low attention in extension services and potentials research system to horticulture sector  Improved consumption habits of the society for  National and international competitions in vegetables and fruits quality and prices of horticultural produces  High population growth & expansion of urbanization as a potential domestic market  Favorable conditions in other regions  Improvement in transportation service and road (like proximity to Addis Ababa) network  Credit service, 70% for agricultural projects  Increased prices of horticultural products  Excess labor supply relatively at low wages  Due attention of the government for developing ANRS Horticulture Development Strategy

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horticultural sector  A government plan to install different agroprocessing industries in the sector  Free market and privatization policies  International market demand for organic horticultural products

Potentials/opportunities of horticulture industry in the region The horticulture industry development potential of the region is enhanced by properly exploiting the invaluable strengths and opportunities, including diverse agro-climatic conditions and fertile soil suitable for production of several high, mid and low land horticultural crops; abundant surface and ground water resources for irrigation, excess and cheap labor, expansion of urbanization and improved consumption habits of people for horticultural products mainly in urban areas, due attention of the government for developing horticulture industry as a means to improve livelihoods and income of smallholder farmers and promoting exports of horticultural products. Horticultural crops grown in the region The region is potentially suitable for the production of various horticultural crops. Among which, the major horticultural crops grown in high land areas include potato, onion, garlic, cabbage, Ethiopian Cabbage, apple and plum; in mid-altitude areas are cabbage, carrot, tomato, potato, pepper, beetroot, green beans, onion, garlic, papaya, banana, coffee, avocado, guava, mango, fenugreek, black cumin, white cumin, ginger and Korerima; and tomato, pepper, beetroot, mango, avocado, citrus, banana and guava are the major crops in the lowland areas of the region. According to the key informants from the BoA, the horticulture industry will become commercial business and more profitable in the plan period if due attention is given for production, value addition and marketing activities of mango, avocado, banana, coffee, apple, guava and papaya from fruits; tomato, potato, pepper, cabbage, onion, garlic, green beans and green peas from vegetables; and black cumin, white cumin and fenugreek from spices. Irrigation water potentials Ethiopia is blessed with abundant water resources in central, western and south western parts, while most of North Eastern and Eastern parts of the country are relatively dry. Based on the Ministry of Water Resources (MoWR) classification, irrigation projects in Ethiopia are identified as large-scale irrigation if the size of command area is greater than 3,000 ha, medium-scale if it falls in the range of 200 to 3,000 ha and small-scale if it is covering less than 200 ha (Werfring 2004; Awulachew et al. 2005). Accordingly, the total irrigated area estimated from the total of 790 ANRS Horticulture Development Strategy

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irrigation schemes in the nine regional states of Ethiopia is 107,265.65 ha, among which 20,038.39 ha (18.7%) is from small-scale, 30,291.26 ha (28.2%) from medium-scale and 56,936 ha (53.1%) is from large scale. Amhara region is one of the nine regional states of Ethiopia with a geographical area of about 153,000 Km2. Ethiopia’s largest inland water body (Lake Tana) is found in this region. The region has enormous potential both in land and water resources. Different development activities have been underway to utilize these resources. Currently, there are 310 irrigation schemes (39.24% of the country) under development in the region, which covered an irrigated area of 8,469.26 ha with 17,443 people beneficiaries. Out of the total irrigated area, 67.5% is from small-scale and 32.5% from medium-scale irrigation schemes (Awulachew et al. 2007). Generally the region has 0.7 million hectares potential irrigable land, of which only 2% is developed (Ethiopian Growth Corridor document). The Federal Government of Ethiopia is currently implementing several irrigation and drainage projects (like Rib, Gumara, Megech, Koga and Kobo-Girrana) in the region. However, such promising endeavors are not fully supported by the research system.

Consumption habits of the society Nowadays the consumption habit of both urban and rural people for horticulture products is significantly improved though the case of urban people is more significant. Moreover, there is high expansion of urbanization nowadays both in the region and Ethiopia. This implies urbanization increases demand for horticultural products in the future, which in turn can be one of the potential domestic markets for horticultural products. Access to different infrastructure In recent times a significant number of districts and kebeles in the region do have access to allweather roads, where producers can easily transport their horticulture produces by using modern transporting methods like vehicles. Traders can also collect produces by traveling directly to farmers’ homes or farms. While farmers were not accessed to roads, they transported produces to local markets using their own human loads or draft animals, leading to more efforts and postharvest losses during transportation. Thus, access to roads will improve market accessibility and farmers’ returns from sale of produces by reducing postharvest losses. Moreover, some of the towns (like Kombolcha in Kalu district) are identified as industry towns by the government of Ethiopia, where private investors, farmers’ cooperatives or any other individuals can invest on agro-processing industries. In addition, the government plans Kombolcha to be centre for railway transport to Mekele, Desie and Woldia and air transport has also begun at Kombolcha recently, ANRS Horticulture Development Strategy

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which will facilitate marketing of horticultural produces in the region. Kombolcha is near to Middle East countries and Djibouti, which are potential importers of horticultural produces. The strategic location of Amhara region as a gateway to Sudan for other regions of Ethiopia should be able to facilitate more flow of goods and people. The opening of the road that connects Ethiopia and Sudan along Amhara region and the Bahir Dar airport being an international airport can link the various destinations directly from Bahir Dar town. The region should therefore use full advantages of these gateways and effectively improve the logistic system through more efficient service delivery by the public sector and providing better conditions in roads and railways that link to neighboring regions and countries. This implies that the region has good network with Addis Ababa, Mekele, Afar, Djibouti and Sudan markets, which can contribute a lot for horticulture industry development by making the region more accessible to potential domestic and foreign markets if they are well exploited strategically. Government attention In each of the total kebeles found in the region about three agriculture experts (DAs) are assigned by the government to assist the farmers in the different sub-sectors of agriculture. One of them is a plant science expert who is also responsible for Horticulture sector. In some of the irrigation potential districts, the government allows one additional irrigation expert to be assigned at kebele level aiming to promote irrigation oriented horticulture production in the region although there is still lack of horticulture graduates (who can be technically and professionally responsible for horticultural activities) assigned at Kebele level. The local government also attempts to bring farmers’ attitudinal change through awareness creation and sometimes by enforcing them to shift their production pattern from long maturing and traditional crops into short maturing and high value crops (like vegetables) so that farmers can earn high income by cultivating a given plot of land 2-3 times per year. For e.g., farmers in Kalu district still prefer to produce sorghum, which has 9 months growth period. Farmers in this case can produce one type of crop only once in a year as well as earn lower returns from sale of sorghum yields. That is, farmers can get on average 2432 qt/ha yield, resulting in an income of only 14,400-19,200 birr/ha annually. Instead, if a farmer shifts his production to short maturing and high value crops like vegetables he can produce different types of crops three times per year using irrigation and can earn a higher return from the same size of land. Thus, the local government and woreda office of agriculture are nowadays enforcing farmers not to produce long maturing crops (sorghum), instead advise them to shift their production to other short maturing Girana-sorghum variety that yields at least 60qt/ha and high value crops like vegetables. ANRS Horticulture Development Strategy

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Moreover, the government plans to establish different agro-processing industries in the region that mainly use horticultural produces as their inputs. For e.g., the government plans to establish appleprocessing plant in Debre Tabor town which may reduce marketing risk of apples produced in the surrounding areas.

Access to different supporting institutions There are several organizations supporting horticulture industry development in the region. NGOs and bilateral programs such as AGP (Agricultural Growth Program), World Vision (supplies water pumps & improved seeds), FCE (Facilitator for Change of Ethiopia), IFAD (International Fund for Agricultural Development), SLM (Sustainable Land Management) project, Agro-BIG, FAO; and GOs like AISCO (supplies fertilizers, pesticides and improved seeds), ACSI (supplies short term credit), Agricultural Offices (provide extension services, training, ), Investment Offices, ORDA (performs soil and water conservation activities; supplies apple seedlings and improved seeds for potato and onion; promises them to supply small scale fruit juice processing machines), universities (provide training, improved seeds, ..) Farmers’ cooperatives There are several farmers’ primary cooperatives and unions in the region. The existence of these farmers’ organizations can be taken as an opportunity to the horticulture industry in the region to address some of the constraints such as untimely delivery of inputs and lack of markets for horticultural products provided that their capacity is further strengthened. Both focus groups and key informants argued that if they are strengthened, these farmers’ organizations can serve as agents that can facilitate exchange of inputs between sources of inputs and farmers. For e.g., there are 12 primary irrigation cooperatives in Mecha woreda, which are now organized into one Irrigation Cooperative Union and Semen Wogagen Fruits and Vegetables Multiplication and Marketing Cooperative Union in Kobo, which works on marketing and processing of horticultural crops. Thus, these organizations can purchase different farm inputs (such as fertilizers, improved seeds, chemicals and other inputs) directly from the sources and they will distribute timely to farmers. Moreover, they can assemble horticultural products directly from individual farmers during harvesting seasons when prices of products are very cheap and sell these products with better prices by looking for potential buyers. In general, use of these organizations for those intended purposes will increase the bargaining power of farmers and thereby improve farmers’ income obtained from horticulture products in the one hand by reducing the transaction costs ANRS Horticulture Development Strategy

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incurred for sale of products and purchase of inputs if these activities are made by individual farmers and by selling products with better prices on the other hand.

Constraints of horticulture industry in the region The ability to realize the potential is however constrained by many weaknesses and threats along the different stages of supply, value and market chains of the horticulture industry from input supply, on-farm productivity to postharvest losses as it reaches to end users. Any future development is subject to notable threats including climate change uncertainties, occurrences of disease and pest outbreaks, limited attention in extension services and research to the industry and the continuously rising of international standards. These issues were identified through discussion with key informants, focus group discussants and individual households as well as through review of relevant secondary sources such as office reports, research and policy documents.

4. Strategic Issues This strategy is prepared with the aim to facilitate the development of horticulture industry in Amhara region so as to improve nutritional status, increase incomes and livelihoods of smallholder farmers and reduce poverty while increasing productivity and quality of produces. Horticulture is an important sub-sector in agriculture that can exploit the potentials of the region particularly the underutilized water, arable land and abundantly available labor. According to the Regional Growth Corridor document, the region has potentially 0.7 million hectare of irrigable land but only 8,469.3 ha are currently in use which is very low compared to the potential.

The Amhara region horticulture industry faces several challenges. However, in the strategy we consider only the major challenges by classifying into five broad categories, namely agronomic issues, capacity building, marketing issues, institutional and policy issues, and cross cutting issues. For developing the industry, it is important to employ the existing potentials of the region in addressing the following key constraints categorized under five broad strategic issues: 1. Marketing issues- There is poor market linkage and information among producers and potential buyers of horticultural produces in Amhara region. Thus, there is lack of market infrastructure in horticulture sector of the region. 2. Agronomic issues- Improper agronomic practices and inadequate and untimely supply of quality seeds and disease and insect pest incidences are the key constraints of horticulture production in the region.

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3. Capacity building (technological and human capacity) - Poor postharvest handling technologies, absence of agro-processing industries, and inadequate skilled and qualified human resources are the other key constraints in technological and human resource development of the horticulture industry in the region. 4. Institutional and policy issues- Low focus in extension and research to the sector, uncoordinated linkage among key stakeholders, limited access to financial institutions and poor investment participation, and poor management of irrigation schemes and weak institutional capacity of Water User Cooperatives (WUCs) and Associations (WUAs) are also the other major challenges in the horticulture industry. 5. Cross cutting issues- limited participation of women and youths, alignment of the strategy to small and micro enterprises (SMEs) and environmental problems (like salinity and inefficient use of water resources) are the other important constraints in the sector.

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Table 11. Identification of strategic issues

1

Poor market linkage and information among producers and potential buyers

Rating (put X) 1 2 3 4 x x x x

2

Disease and insect pest incidences and lack of appropriate treatments

x

x

x

3

Inadequate and untimely supply of inputs like high quality seeds

x

x

x

4

Poor postharvest handling technologies

x

x

x

5

Inadequate skilled and qualified human resources in the sector

x

x

x

x

6

Improper agronomic practices

x

x

x

x

7

Low focus in extension and research to the sector

x

x

x

x

8

Absence of agro-processing industries

x

x

9

Uncoordinated linkage among stakeholders

x

x

x

x

10 Limited access to financial institutions and poor investment participation

x

x

x

11 Poor management of water and irrigation schemes and weak institutional capacity of Water User Cooperatives (WUCs) and Associations (WUAs)

x

No Strategic issues

x

Rating: 1=Biggest impact, 2=Most central, 3=Most immediate, 4= Closer to our values

Once the strategic issues are identified (Table 11), they will be further described by analyzing what make them strategic and what will be their consequences if they are not addressed as of Table 12.

Table 12. Analysis of strategic issues

No Strategic issues

What makes it strategic

Consequences if not addressed  High wastage of products  Low income from the product  Low production in the next season  Low income from the product  Discouraged farmers  Distribution of pest to the next crop  Low adoption of improved seeds  Low production & productivity  Low income and discouraged farmers  High postharvest loss  Low income

1

Poor market linkage and information among producers and potential buyers

 Very low prices for products  Discouraged farmers for next season production

2

Disease and insect pest incidences

3

Inadequate and untimely supply of quality seeds

4

Poor postharvest handling technologies

5

Inadequate skilled and qualified human resources

 Low production, productivity and quality  Increase cost of production  Difficult to identify and treat  Use of local seeds increased  High prices for low quality seeds, leading to high cost of production  High post harvest loss  Poor quality and short lived products  Knowledge and skill gaps on both experts and farmers thus improper management

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 Low acceptance of new technologies  Low production & productivity Page 34

x

x

 

6

7

Improper agronomic practices

Low focus in extension and research to the sector

        

8

Absence of agro-processing industries

   

9

Uncoordinated linkage among stakeholders

   

10 Limited access to financial institutions and poor investment participation

  

11 Poor management of water and  irrigation schemes and weak institutional capacity of Water  User Cooperatives (WUCs)  and Associations (WUAs)

practices Low production and productivity Low acceptance of new technology High postharvest loss Low production & productivity Low quality products Increased disease and insect pest incidences High post harvest loss Improper agronomic practices Low adoption of new technologies Increased use of local varieties and limited variety assortment Traditional production practices implemented Lack of potential markets for raw products No value addition Reduced post harvest life of the products Unavailability of different forms of products through out the year Duplication of efforts Uneconomical use of limited resources No system for sustaining effects of any support Low adoption of new technologies Traditional and subsistence agriculture persist Low technological progress No mechanized farming and value addition High wastage & inefficient use of water Poor clustering of crops with in the scheme Conflict of interest among irrigation users

 Very low income  Lack of markets for products

 Low production & productivity  High incidence of disease and insect pests  Low price and consequently low income  High post-harvest losses  Price fluctuation in the growing and off season

 Low production & productivity  Wastage of resources  Low adoption of new technologies

 Low level of production & productivity  High post harvest losses  Inefficient use of water  Low production, productivity and quality during irrigation season

Although the region is potentially suitable for horticulture production, the development of the horticulture industry is still very low. Still the land allocated for horticulture production (120,792.8 ha) as well as the yields obtained (586,456 tons) are very low as compared to grain crops cultivated with 4,287,155.2 ha of land and 6,969,648.1 tons of yields obtained in 2011/12 cropping

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season (CSA, 2012). Some of the major reasons for low level of development of horticulture industry in the region will be discussed as follows.

The strategic issues identified and analyzed above are briefly discussed based on the information obtained from key informant interview, focus group discussion, household survey and relevant secondary data during the survey.

4.1 Poor Market Linkage and Information Among Producers and Potential Buyers Little or no market linkage and information flow is existed among producers and potential buyersagribusiness firms (such as wholesalers, traders, agro-processing companies and exporters) which results low prices of horticultural products. Results of key informant interview, focus group discussion and household survey showed that there are four main reasons for low producers’ prices, including: (1) the illegal brokers disturb the marketing process by making the information regarding supply, demand and prices asymmetric in favor of traders, (2) excess production of similar horticultural crops by most farmers at the same season, leading to surplus supply of the same product to local markets which in turn reduces prices, (3) no market linkage created with agro-processing companies, which are even few in the region, and (4) farmers entering lately to the irrigation cropping calendar. Consequently, farmers are discouraged not only for expanding their production, but even to keep on production of these crops in the coming seasons.

The illegal brokers and/collectors which enter into the market chain between the producers and traders and/or consumers often disturb the marketing process of horticultural crops. They usually negotiate the price of the produce with the producers and make down payment which is very low compared to the value of the produces. After the informal agreement the producers will be ordered to harvest their produces at a given date of harvesting. However after the crops have been harvested, brokers and/collectors pressurize the produces to down scale the negotiated price by giving iimprobable reasons such as low quality of the product, reduction of the current price in the market etc. Since horticultural products are very perishable in nature producers will be unwillingly forced to sell the products at lower price as the brokers or collectors demanded. This implies that poor market linkage and information between the producers and potential buyers reduce the profit margin and bargaining power of horticulture producers. In most cases they are price taker rather than price maker. ANRS Horticulture Development Strategy

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Producing the similar horticultural crops by most farmers in the same seasons or months also reduced the price of that particular crop since it leads surplus supply of the local market. The framers in Fogera Plain who are growing tomatoes and onions during the irrigation season have such type of experience over year which discouraged the farmers and reduced their income. Such conditions are usually encountered to farmers who enter the irrigation season lately.

4.2 Diseases and Insect Pest Incidences The incidence of diseases and insect pests is the other serious problem in the region. They affect most of the horticultural crops grown in the region. This problem is further aggravated by shortage of appropriate pesticides to manage them. Most horticulture crops in the region are affected by disease and insect pests of various types. Horticultural crops like pepper and citrus diseases are very critical in the region.

Based on key informant interview the apple nursery in Farta woreda, Awuzet Kebele was closed due to the outbreak of apple pests in the area. Debre Tabor University as the owner of the nursery closed the site and fired the planting materials to reduce further dissemination of the pests to the surrounding apple trees, although plant quarantine is generally not strictly practiced in the region.

Generally, in most of the production areas in the region there is shortage of pesticides to control pests. Like improved seeds, pesticides are usually supplied by local traders. Some traders around the production areas however, supplies low quality, even expired pesticides to the producers which may have no effect of the pests. The focus group discussants indicated that the prescription of pesticides to control pests is not based on the type of pests occurred in the farm rather based on the types of crops. The farmers purchase pesticides without consulting the agricultural experts although the agricultural experts lack the required skills and knowledge to identify the pests. This leads to low effectivity of pesticides that increases the production cost. Furthermore the discussants disclosed that most of the chemical traders lack the required knowledge for advisory services in handling of chemicals. Not only pesticides that lack in most horticulture production area but also equipments required for the application of pesticides such as sprayers. Sprayers are mostly supplied by private traders, AISCO and Ambassel trading house in big cities like Bahir Dar and others.

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4.3 Inadequate and Untimely Supply of Quality Seeds High quality seeds and planting materials are the prime prerequisite for the success of a horticultural enterprise. However, the results of all household survey, key informant interviews and focus group discussions revealed that lack of quality seeds supply is one of the major problems of horticulture sector in Amhara region. Most seeds of horticultural crops are supplied by local traders. In most cases supplied seeds could not satisfy farmers’ needs in terms of quality, quantity, prices and time of delivery. They provide uncertified improved seeds with poor quality, inadequate amount, high prices and untimely. Although planting materials of tropical and sub tropical fruits are supplied by governmental nurseries, there is scarcity of planting materials in temperate fruits. Besides there is no alternative temperate fruits in potential growing areas like Layi Gayint and Farta woredas other than apple. Therefore such areas are dependent on apple although the area is suitable for the production of various types of temperate fruits such as peach, plum, pear etc. Furthermore farmers in this area have reported that they faced shortage of tools and equipments necessary for orchard management and nursery operations like pruning, budding and grafting. Irrigation equipments such as pedal pump, rope pump and water pump are delivered by Agriculture offices. However unavailability of spare parts and skilled manpower how can operate and repair such equipments are critical problems in the region.

4.4 Inadequate Skilled and Qualified Human Resources Most professionals in agricultural offices working in horticulture sector are graduates of plant sciences that may have limited skill and knowledge in the field of horticulture which leads to ineffective extension services in the horticulture sector. The practice of horticultural crop production is traditional characterized with low input and low output systems. Farmers don’t apply the recommended agronomic practices in the production, harvesting and postharvest handling activities including spacing, fertilizer and pesticide application rates, irrigation frequency, crop rotation, diseases and insect pest management, use of proper containers for harvesting and postharvest handling. The farmers generally lack technical skills and knowledge about modern production, postharvest handling and marketing systems in the sector. Consequently, the quality, quantity and productivity of the horticultural crops are very low compared to the potentials of the region in the sector.

The agricultural experts also lack skill and knowledge of the recommended agricultural practices in the production of horticultural crops, including their proper postharvest handling technologies ANRS Horticulture Development Strategy

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which have a significant role in maintaining shelf life of harvested crops and thus reducing the postharvest losses. Lack of skills and knowledge in turn will lead to lack of expert’s commitment to tackle problems associated with the production and marketing of horticultural crops. Moreover, producers have not yet participated in value addition activities such as sorting, grading and packaging.

The importance of producing horticultural crops using irrigation is the other constraint for the development of horticulture industry in the region. Some farmers perceived that irrigation makes the soil infertile for the next cropping seasons and others considered the irrigation season as a secondary activity of crop production. They also believed that involving in horticulture production cannot improve their income and livelihoods compared to producing other crops like cereals and pulses. As a result, they preferred to employ most of their resources to the production of the later, non-perishable crops. For e.g, farmers in Mecha district do not want to exert more efforts for the production of horticultural crops like potato & onion, as their production management and postharvest handling are very hard and required more attention, although they know that they can derive higher returns from these crops. Therefore farmers in this area are currently producing wheat rather than vegetables because of its easiness in production management and postharvest handling.

4.5 Poor Postharvest Handling Technologies Horticultural crops are highly perishable in nature. They cannot store for a long period of time without quality deterioration. Therefore they have to be sold fresh immediately to the market or they have to be processed. However it is possible to extend their shelf-life using proper postharvest handling technologies like reducing damages in the process of harvesting, transporting and marketing and using modern transportation methods and cold storage. Lack of awareness in perishability of horticultural crops, rudimentary transport methods and lack of modern storage facilities (cold storage) are the characteristics of the postharvest handling systems practiced in the region which increases the postharvest losses of the products. Due to these problems, farmers are unwillingly enforced to sell their products immediately after harvesting when there is excess supply of products at very low prices. Even some farmers throw out their unsold products in the market. To tackle these problems some farmers store their tuber and bulb vegetables like potato and onion using traditional storage methods such as on-farm storage and on raised-beds in locally constructed storage structures which may incur relatively high losses in harvested products

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Although some kebeles around towns are accessible, most horticulture producing kebeles are not easily accessible because of lack of all weather roads. They transport their produces in sacks, baskets, in some extent using wooden and plastic containers using pack animals or human labor which expose the products to direct sunlight and mechanical damages that shorten the postharvest life and thus increased the postharvest losses.

4.6 Improper Agronomic Practices The increase in crop production in general can be achieved through two ways: increasing area of production and increasing the productivity or efficiency through use of improved production technologies including proper agronomic practices and make use of improved high yielder varieties. Both options can be employed in the region. However increasing the efficiency of the growers is the best option where expanding the production area will have its own limitation in the future since land is a limited natural resource. The efficiency or productivity of farmers can be improved through appropriate extension service, education, training and demonstration so that less efficient farmers will produce as much as efficient producers. This approach however needs a coordinated effort of research institutes, universities, BoA and other development partners engaged in the development, promotion and scale up activities. In line with this recent studies (Solomon, 2014) showed that agricultural production in Ethiopia can be enhanced by nearly 37% using the current technology.

Currently, less adoption of improved technologies is one of the major challenges of the region to enhance production and productivity of horticulture. Most farmers produce their crops using traditional production systems. Very few farmers apply the proper agronomic practices including seeding/planting rates, fertilizer and pesticides as per the recommendation for that particular crop. These could be because of various reasons, among which lack of knowledge and skills, lack of awareness, lack of proper extension service, lack of premier market price for quality products and cost of some technologies are the most important factors. In this regard Bureau of Agriculture, as main stakeholder in the sector, is trying to introduce improved agronomic practices in collaboration with research, universities and development partners. The efficiency of these trainings is however low since they are more general and the specific problems of horticultural crops like pest management, postharvest handling and the issue of quality are not well addressed. The absence of special premier price for quality products may also influence the adoption of new technologies which are focused on the quality of the products. Farmers for instance use ANRS Horticulture Development Strategy

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deliberately narrow spacing in the production of vegetables such as onion and potato at the expense of quality. Some farmers also use high seeding rate of horticultural crops to compensate losses of seedlings caused by ravages of pests. In case of irrigation technology, some equipment like water pumps is too expensive to use them at farm household level as well as limited in supply.

4.7 Low Focus in Extension and Research to Horticulture Sector In recent years, the national and regional government gave attention to the horticulture industry. However the attention given to the extension services of horticulture is not enough to exploit the potential of the region as well as the country. Currently less effort is made in terms of budget, training and nursery development. The existed nurseries don’t have their own budget and also has poor facilities such as pruning, budding and grafting equipment. There is a lot of research institutes scattered throughout the region. Their research thematic area is however focused more on agronomic crops such as cereals than horticultural crops.

4.8 Uncoordinated Linkage Among Stakeholders Given horticulture is potential/unexploited sector, which could contribute more for the aggregate agricultural production in the region, participation of various stakeholders in the sector is necessary. However their effort should be coordinated to avoid duplication of efforts and enhance efficient utilization of scarce resources. Currently, different stakeholders are working in the horticulture sector of the region, including development partners and NGOs. However, in some cases their work is not well coordinated with respective stakeholders like agricultural offices. Some NGOs and GOs are doing activities that are already done by other stakeholders while there are activities which have not yet been done. Furthermore uncoordinated activities create the problem of sustainability after the lifetime of the projects. Such issues were raised for example by woreda agriculture experts and DAs in Farta woreda where developmental partners like ORDA, and others are engaged in different activities. Therefore coordinating their efforts is quite necessary and if possible addressing the issues of marketing and storage facilities which require relatively more skills and finance are important problems which need more intervention by such stakeholders.

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4.9 Absence of Agro-Processing Industries In the development process, most countries start from production and export of agricultural products and promote manufacturing and value addition industries to fetch better benefit margin. As far as horticulture sector development in the region is concerned, the role of agro-processing industries is quite vital. Among the benefits of agro-processing industries; import substitution, secured market for the producers, employment opportunity are the major ones.

The development of agro-processing industry in the region is very low: better to say no agroprocessing industries except small-scale homemade processors (juices, processing potato to chips). Hotels and supermarkets in the region are dependent on imported products. The reasons for the low level of development of agro-processing industries in the region are lack of sustainable and enough supply of inputs such as vegetables and fruits. The supply of most fruits and vegetables are seasonal which incurs input supply problem for the processing industry and hamper the profitability of the business. However, establishing agro-processing industry in center of potential areas may help to reduce the market risks of horticultural crops which in turn encourage the farmers to produces crops throughout the year through staggering principle using irrigation.

4.10 Limited Access to Financial Institutions and Poor Investment Participation Economic theories confirm that saving is directly related to investment at macro level. Experiences and studies revealed that smallholder farmers do have limited income together with their poor saving culture would lead to very limited saving and hence low investment in agriculture sector in general and Horticulture sector in particular. Hence, the need for credit service for horticulture sector development is unquestionable. What makes the credit service more important besides the perishable nature of horticultural products is the huge financial requirement of the sector for investments in production, agro-processing, other value adding and storage activities. There are limited cold storage facilities and agro-processing industries in the region. There could be a number of reasons for this, among which lack of credit service, fragmented production systems to get sustainable supply of produces throughout the year, limited market linkage, and limitation in investment promotion could be mentioned.

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4.11 Poor Management of Water and Irrigation Schemes and Weak Institutional Capacity of WUCs and WUAs Farmers’ awareness and experience in using irrigation water for horticulture production has improved overtime. Some farmers in Amhara region allocate on average up to 0.25 ha of land per household for the production of vegetables. Some farmers in potential areas for example in Jabi Tahenan woreda transport irrigation water from distant source using two pumps. The first pump transports water from the source to a certain distance while the second pump transports water to the farm. By doing so, farmers are able to transport water about 2 km distance from the source.

However, farmers faced a problem while water is released turn-by-turn. If water is released to one farmer or group of farmers the other groups should wait until their turns. This causes damages on crops which incur water stress that result wilting/drying of horticultural crops. This problem can be alleviated through clustering of farmers based on water requirements of the crops and adjusting the frequency of watering. Besides, establishing additional water source can also help to solve this problem. The other problem in the use of irrigation water source is that most farmers in the region use traditional irrigation schemes by diverting the main river through furrow irrigation. Beside the requirement of continuous channel maintenance and repair services, the water use efficiency of the method is low, since most of the water is lost through evaporation and percolation only a little amount of water is utilized by plants.

5. Strategic Interventions The main objective of this strategy is to exploit the vast potentials of horticulture industry in the region so as to make it grow three folds, and a profitable commercial industry in the coming five years (2015-2019). To achieve this objective, the strategic plan was built on with five strategic pillars within which strategic interventions are identified and analyzed as shown in Table 12.

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Table 13. Analysis of strategic interventions

No 1

2

Strategic pillars Strategic interventions Market linkages 1.1 Contract farming schemes  Promote collective action  Promote Public-Private-Partnership (PPP) in research, extension and large investment  Develop small scale out-growers schemes  Develop innovative private enforcement mechanisms  Promote competition among agribusiness firms  Develop legal frame work for contracts & provide arbitration services  Strengthening the existing and establishing the new farmers’ cooperatives/ unions 1.2 Fresh vegetable and  Establish fresh vegetable and fruit market center for producers at fruit market center for the strategic location of potential areas as pilot projects producers  Scaling up of the proven fresh vegetable and fruit market centers to wider potential areas in the region 1.3 Market oriented  Establish Ethiopian Horticulture Development Agency (EHDA) horticulture production and and Ethiopian Horticulture Producers and Exporter Association export diversification & (EHPEA) at regional level improvement  Promoting production of organic horticultural produces  Advocating horticultural products to national & world markets  Adopt clustering and staggering production system

TF EF SA PF

2 2

3 3

2 2

3 3

Total score 10 10

Rank

3 2 2 2

3 2 3 3

3 2 3 3

2 2 2 2

11 8 10 10

2 4 3 3

3

3

3

3

12

1

3

3

3

2

11

1

3

2

3

2

10

2

3

3

3

3

12

1

2 3 2

2 3 3

2 2 2

3 3 3

9 11 10

4 2 3

3 2 3

2 2 2

2 3 3

2 2 2

9 9 10

3 3 2

3 3

Production and Management practices 2.1 Site selection & planting material and land preparation

 Proper site selection based on the requirements of individual crops  Producing healthy and strong planting materials  Proper seed and/or planting bed preparation according to the requirement of the crops

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No

Strategic pillars

2.2 Adequate and timely supply of quality seeds/planting materials

2.3 Disease and pest control

3

Capacity building 3.1 Technological capacity development

Strategic interventions  Developing and distribution of horticultural crop production packages based on specific conditions of the area  Establishing seed multiplication centers across agro-ecologies  Promote private sectors and farmers` cooperatives involve in horticulture seed multiplication business  Promote state seed enterprises involve in horticulture seed multiplication business  Close monitoring and follow up of agricultural input traders  Practice plant quarantine practices  Introduce certified seed production & supporting producers for certified seed multiplication  Introducing improved seeds from abroad by conducting adaptation trials  Strengthening existing and establishing new tissue cultures  Strengthening the existing and establishing new nurseries  Generating disease resistant varieties through research  Implement plant quarantine  Promote proper agronomic and certify producers with global GAPs  Promote IPM  Identifying pests and recommending appropriate pesticides  Prepare pictorial booklets with symptoms of major diseases and pests and their treatments for woreda and kebele experts  Introducing small scale protected cultivation  Enhancing the capacity of plant tissue culture laboratories

TF EF SA PF 3 2 3 3

 Awareness creation on postharvest handling through training and experience sharing  Creating access to appropriate containers for fruits and vegetables  Provide special incentives for value addition/creation in the

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Total score 11

Rank 1

3 3

2 2

3 2

2 3

10 10

2 2

2

2

2

3

9

3

2 2 3

3 2 3

3 2 3

2 3 2

10 9 11

2 3 1

3

2

3

2

10

2

3 3 2 2 3 3 3 3

2 2 2 2 2 3 3 3

3 3 3 2 3 3 3 3

3 3 3 3 3 2 2 2

11 11 10 9 11 11 11 11

1 1 2 3 1 1 1 1

2 2

2 2

2 3

3 3

9 10

3 2

3

3

2

2

10

2

3 2

3 2

2 3

2 2

10 9

2 3

No

Strategic pillars

3.2 Human capacity development

4

Strategic interventions horticulture sector  Improve sea, air and road transportation services  Strengthening existing and establishing new farmers’ cooperatives involve in agro-processing industries  Establishing cold storage and agro-processing industry in potential areas where the private sector unable to involve  Establishing modern irrigation scheme and its management system in the irrigation potential areas  Improving water use efficiency by adopting drip and sprinkler irrigation systems  Establish practical training centers at strategic locations that deliver short-term training for both experts and farmers  Providing farmers’ advisory services  Short-term training for experts and farmers in horticulture production, postharvest handling, utilization and proper agronomic practices  Long-term training for experts in horticulture fields  Organizing experience sharing field visit for both farmers and experts  Arranging demonstration sites on FTCs that enable farmers get technical and practical knowledge  Experts in the horticulture section at least at woreda level should be graduates of horticulture

TF EF SA PF

2 3

2 3

3 2

2 3

Total score 9 11

 Develop legislation, a code of conduct and regulations for contract farming arrangements  Organize a separate structure for horticulture section responsible for both meher and irrigation seasons  Organize a platform for stakeholders in horticulture industry at regional, zonal and district levels  Promote financial institutions to deliver credit services to horticulture sector

Rank

3

2

3

2

10

2

2

2

3

3

10

2

3

3

2

3

11

1

3

3

3

3

12

1

3 3

3 3

3 2

3 2

12 10

1 3

3 3 3

2 3 2

2 3 3

2 2 2

9 11 10

4 2 3

3

2

2

2

9

4

2

3

2

2

9

3

2

3

2

2

9

3

3

3

2

3

11

1

3

2

3

2

10

2

3 1

Institutions and policies

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No

5

Strategic pillars

Strategic interventions  Promote investment opportunities for both domestic and foreign investors  Develop modern irrigation schemes and its management system in the irrigation potential areas  Establish small-scale workshops for maintenance and repair services especially for irrigation equipment  Empower WUCs and WUAs  Allowing land use certification scheme for the production of especially perennial/fruit crops

Cross cutting issues 5.1 Women & youths participation

 Promote urban agriculture to create more employment opportunities for women and youths  Organize unemployed youth group to supply services to horticulture producers groups  Organize women and youths in SMEs to participate in different value adding activities such as transportation, storage, packaging materials, containers, 5.2 Environmental aspects  Promote planting of fruit crops in closed and rehabilitated watersheds  Provide training on the environmental impacts of chemicals used in horticulture  Promote Good Agricultural Practices (GAP) in horticulture Score for feasibility level: 1= Low 2= Medium 3= High

TF EF SA PF 2 2 3 3

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Rank 2

2

2

3

3

10

2

3

2

3

3

11

1

3 2

2 2

3 2

3 2

11 8

1 4

2

2

3

3

10

2

3

2

3

3

11

1

2

3

2

2

9

3

Where, TF= technically feasible, EF= economically feasible, SA=socially acceptable, PF= politically feasible

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Total score 10

5.1 Market Linkages The results of household survey, key informant interview and focus group discussion revealed that lack of market linkages and information flow between producers (smallholder farmers) potential buyers (agribusiness firms- such as traders, agro-processing industries, exporters, and others) is the principal challenge of horticulture industry development in Amhara region. They also indicated the possible means of addressing such marketing problems in that the governmental institutions like BoA and BoT should consider in their short-term interventions. Thus, in order to create a sustainable market linkage among producers and agribusiness firms, it is recommended that BoT, BoA and Cooperative Promotion Agency should work together on the following three core strategies in collaboration with farmers, donor organizations, agribusiness firms and other key stakeholders in the horticulture sector. These are: 1. Contract farming (out-grower) schemes, 2. Fresh vegetable and fruit marketing center for producers, and 3. Market oriented horticulture production and export diversification and improvement. The importance and means of introducing these core strategies in horticulture sector of the region will be discussed as follows.

5.1.1 Contract farming (out-grower) schemes Contract farming has been widely used in many developing countries across Africa, Asia and Latin America due to the ongoing agro-industrialization and globalization process. It has evolved as an institutional arrangement to serve the interest of both the producers and potential buyersi.e., agribusiness firms (traders, processors and exporters). Smallholder farmers with contractual arrangements generally have two potential advantages which otherwise would not be achieved. First, they have access to emerging and growing high-value global markets despite potential barriers arising from the rapid expansion of global retailers (supermarkets), the use of private grades and standards, and the application of strict quality and safety regulations that need vertical coordination of different stages along agricultural value chains. Secondly, smallholder farmers have the opportunity to manage constraints such as lack of market information, finance and risks that limit their participation in the commercialization process. Contract farming therefore enhances the productivity of smallholder farmers by introducing improved farming practices through the provision of inputs, credits, extension services and other support services. It also brings investments and technical expertise to the smallholder sector. In the process, the ANRS Horticulture Development Strategy

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agribusiness firms are able to ensure sustainable output supply according to agreed quality, quantity and price.

Nowadays, contract farming is widely recognized as an institutional arrangement that promotes the commercialization of smallholder agriculture and poverty alleviation in developing countries. Especially given the poor performance of agriculture in Africa, it is hoped that contract farming and its variants will bring about improved incentives, increased income for farmers and positive multiplier effects for impoverished rural economies (Glover, 1994; Kirsten and Sartorius, 2002). It facilitates crop diversification through a shift from traditional low-value crops to high-value crops (like vegetables and fruits) for niche local and export markets. Those schemes that involve labor-intensive and high-value crops for niche markets have an especially significant impact on poverty. As a coordination strategy, contract farming enhances growth of agro-processing industries to add value to primary products and improves the capacity to meet stringent trade requirements of export markets. In addition, it provides a strategic option to attract foreign direct investment (FDI), specifically transitional corporation in agriculture that can have significant impact on the economy in terms of income, employment, poverty alleviation and technology transfer.

While contract farming plays a vital role in facilitating commercialization of smallholder agriculture in developing countries like Ethiopia, it is not a panacea for all smallholder agricultural production and marketing problems nor is it appropriate for all types of commodities. Thus, it should not be imposed or promoted across all sectors. It does make economic sense in certain commodity markets. Contract farming is appropriate in cases where the contractor is a large processor, exporter, or retail chain; the commodity is high-value, perishable, and/or not widely grown; and there is a destination market that is willing to pay a premium for quality attributes that cannot be obtained in spot markets.

In general, contact farming as a business model is appropriate for high-value fruits and vegetables for quality sensitive markets and other major cash crops such as tea, cotton, sugar, tobacco and oil palm (USAID-CIAFS, 2012). In the literature, it is identified that there are five contract farming models (nucleus estate, centralized, multipartite, informal and intermediary), where the decision of contractors to adopt a particular model depends on market demand, production, and processing capacity and the socioeconomic viability of plantation versus ANRS Horticulture Development Strategy

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smallholder farmers (Eaton and Shephered, 2001). Among which centralized model is commonly used for fruit and vegetable production. This structure is often managed by private sector. In this case, a large number of smallholder farmers are involved and the agribusiness firm provides quality control, brand names and marketing channels. In Ethiopia particularly in Amhara region, this model is recommended for production of high-value crops, where land is relatively scarce but labor is abundant. Given the limited experience of Ethiopia in contract farming, the multipartite model is recommended because it is often established as joint venture between the public and private sectors the former sector has its own sake. Such arrangements also build confidence needed for foreign companies to invest in contract farming with smallholder farmers. Koga Vege, a Private Company from Belgium, in Mecha woreda is an example in this case having started producing sugar snow, snap peas and baby corn for export piloting using 50ha nucleus farm secured from the regional government.

In contract farming, an agreement is made between farmers and agribusiness firms in advance for a specific quantity, quality and date of delivery of an agricultural commodity (say, horticultural product) at a predetermined price or fixed price formula (Binswanger et al., 1995; Eaton and Shepherd, 2001). The agribusiness firm provides the farmer with technical assistance, farm inputs and credits and offers a guaranteed price while the firm receives a guaranteed steady supply of farm products in accordance with the contract terms.

All agricultural markets involve some form of vertical coordination, i.e., matching of supply and demand between different participants along the marketing chain, such as farmers, processors, wholesalers and retailers (Minot, 2007). While the problem of vertical coordination exists along all stages of the marketing chain, the focus in this case is limited into the relationship between farmers and the buyers of agricultural outputs. The theoretical literatures identify three types of vertical coordination strategies in the agricultural sector: spot markets, contracts and vertical integration (Minot, 1986; Da Silva, 2005; Bijman, 2008). Contract farming is a form of vertical coordination that lies between spot markets and vertical coordination.

Spot or open markets are the simplest form of vertical coordination, where transactions are coordinated by prices alone and there are no regular commitments between sellers and buyers. They function well for commodities that have little quality variation, are less perishable, have a short production cycle, do not require precise timing of supply, and have stable and known ANRS Horticulture Development Strategy

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markets. In addition, spot markets are adequate for commodities for which credit, input supply and technical assistance are less critical because of minimal input requirements and well known production techniques (Minot, 1986). However, they do not always deliver the necessary degree of vertical coordination in terms of price, quantity, timing and product attributes. Thus a formal or an informal agreement is required among transaction partners. In this case, contract farming allows a higher level of coordination between farmers and agribusiness firms with regard to production management, time and location of product delivery and product characteristics such as variety, color and size (Minot, 2007). Contracting involves a legally enforceable and binding agreement with specifications regarding production technology, price discovery, risk sharing and other product and transaction attributes (Eaton and Shepherd, 2001; Da Silva, 2005).

Since vertical integration is the tightest form of vertical coordination, instead of procuring farm products on the spot markets or making a contractual arrangement with a group of farmers, the company engages in production by establishing a plantation using purchased or leased farmland and hired labor. This coordination strategy enables the company to have full control over the production process.

In reality, there are many forms of vertical coordination that do not clearly fit into the above three coordination strategies (Minot, 2011). Cooperatives and producer organizations may play a major coordination role either as part of a contract farming scheme or in the context of spot markets. Government and non-governmental organizations or donor-funded projects sometimes serve as intermediaries to link farmers with agribusiness firms by providing technical assistance, establishing standards and/or providing credit to farmers. Assuming a firm is not limited to a single vertical coordination, what determines the choice of a particular governance structure leads to the theoretical explanation for the importance of contract farming.

Literatures show that the most widely applied theoretical framework for the rationale of contract farming is based on Transaction Cost Economics (TCE), a branch of New Institutional Economics (Da Silva, 2005; Minot, 2007; Bijman, 2008; Catelo and Costales, 2008). TCE deals with the relations between buyers and sellers in terms of the costs of carrying our transactions, including finding a buyer, negotiating a price, delivering the commodity, and obtaining payments as well as the risks associated with the transaction, including the risk of being cheated (Williamson, 2000). In TCE, transactions or economic exchanges are organized through ANRS Horticulture Development Strategy

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governance structures that range from spot markets and contracts to hierarchies in the vertical coordination continuum. Thus, TCE matches transactions with the optimal governance structure that minimizes transaction costs (Williamson, 1985).

Based on the results of key informant interview and focus group discussion as well as the empirical literature review on contract farming, the following are recommended to be implemented in the short-term so as to promote competitive and sustainable contract farming schemes in the horticulture sector that are beneficial to smallholder farmers:

Promote collective action Contract farming (CF) schemes that are working with farmers’ groups or cooperatives are more efficient than those contracting with individual farmers. Because cooperatives and farmers’ groups can play the following important roles in the success of CF schemes: 

Reduces the transaction costs associated with dealing with a large number of smallholders. A cooperative serves as a channel for the provision of important support services such as inputs, technical support and other services;



Enables close follow up and monitoring of CF activities, especially the application of inputs and recommended management practices by the contracting company



Helps avoid side selling or farmer default through collective liability



Enhances bargaining power of smallholders in contractual arrangements

The public sectors (such as cooperative agencies and agricultural offices at bureau, zonal and district levels) play an important role in the development of existing and newly established farmers’ groups and cooperatives to involve in contract farming schemes. Thus, CF schemes should involve voluntary cooperative membership as well as voluntary relationships with agribusiness firms (potential buyers) to ensure that they are sustainable.

Promote Public-Private Partnership (PPP) in extension, research and large investment In contrast to subsistence agriculture, farmers in CF will engage in the production of high-value crops (fruits and vegetables) that require technical support that is quite different from the normal extension program on food grains. With some flexibility and collaboration, the public extension program could support agribusiness firms in providing tailor-made and high quality extension services to contract farmers. Moreover, the agribusiness firms could have access to technologies ANRS Horticulture Development Strategy

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that have been generated by public research institutes. The public research could also help private companies in testing and verifying new horticulture technologies introduced from abroad. CF also provides the opportunity to have PPP in the joint investment ventures. These partnerships are common in many developing countries in Africa and Asia. The multipartite CF models are good examples of a private foreign company investing in CF with smallholder farmers in joint venture with the government of the host country. Studies revealed that these are often found to be successful.

Empower small scale out-growers There are some successful companies where contracted smallholder farmers are participating in decision making through their involvement as shareholders. Empowerment enhances the sense of ownership on the part of smallholders and promotes a long-term trust in business relationship.

Develop innovative private enforcement mechanisms Studies reported that enforcement mechanisms should be based on contextual factors, instead of pursuing legal action through courts. For e.g., using court as enforcement mechanism in Ethiopia is inefficient because court procedures are costly and time consuming (Eaton and Shepherd, 2001; Kirsten and Sartorius, 2002). The possible enforcement mechanisms include contracting through the group approach and cooperatives, establishing an arbitration committee consisting of representatives of farmers, agribusiness firms, exporters, government and other stakeholders as a means to mitigate the opportunistic behaviors of contracting parties, and open communication and close monitoring. In other cases, a government agency (like agricultural offices at different levels) might be the most appropriate forum. The arbitration committee can act as an arbiter for possible defaults or other deviations from the contract. However, it is recommended that the contract farming industry has a self-enforcing mechanism in order to offer a measure of protection for all participants.

Develop effective quality standards for horticulture products The horticulture marketing system in Ethiopia specifically in Amhara region is characterized by lack of quality standards. The establishment of grades and standards that are easy to implement and reflect market preferred traits will enhance communication and negotiation in contractual arrangements between smallholders and agribusiness firms. It will minimize contract default from both parties. In the one hand, agribusiness firms will not reject products that meet the ANRS Horticulture Development Strategy

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established grades and standards especially if they participate in developing such a system, contract farmers will strictly follow the recommended procedures to achieve the established quality standards on the other hand. The government may also have a role in certifying compliance with private grades and standards, such as Good Agricultural Practices (GAP), fair trade and organic for high-value markets.

Promote competition among agribusiness firms One of the common criticisms in CF is the fact that firms have much greater market power and leverage than the smallholder farmers who bargain with them. There are also incidents of monopsony situations in the market. One of the most effective approaches to limit the unbalanced power is to enhance competition among firms engaged in similar horticultural products. However, this scenario may also increase the incidence of farmers default. The competition makes easier for farmers to obtain inputs and credit from one firm and then sell the harvest to another firm, thus avoiding repayment of the loan. In this case, effective enforcement mechanisms should be developed and used.

Provide arbitration services One of the major challenges in CF arrangements is contract breach due to opportunistic behavior of both parties (farmers and firms). If market prices rise, farmers tend to breach the contract by side selling while if the market price falls, the firm is tempted to buy its supply on the spot markets. If such breaches are widespread, they can lead to loss of confidence and possibly collapse of the scheme. In this case, the government (particularly BoA) and the private sector could have a major role in developing arbitration alternatives for mediating conflicts between farmers and firms.

5.1.2 Fresh vegetable and fruit market center for producers Besides introducing contract farming for some selected horticultural products, establishment of fresh

vegetable and fruit market center at the strategic location of horticulture potential areas in the region can be taken as the other important intervention in addressing marketing problems in the sector. In market centers, farmers will bring products regularly at fixed days per week and sell their products either to retailers or directly to consumers. Such markets can be used as a place where producers and potential buyers get together and discuss about the horticulture market. Thus, as its short-term intervention, it is recommended that the government (BoA) should ANRS Horticulture Development Strategy

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establish Fresh Vegetable and Fruit Marketing Center in some areas of the region as pilot project in collaboration with farmers and donor organizations. If the project is effective at pilot level, scaling up of the market center to the wider potential areas in the region should be considered in its middle- and long-term interventions.

5.1.3 Market oriented horticulture production and export diversification and improvement The other important interventions for addressing marketing problems include establishing Ethiopian Horticulture Development Agency (EHDA) and Ethiopian Horticulture Producers and Exporters Association (EHPEA) at regional level. Their establishment will improve marketing of the horticultural products by providing market information to smallholder farmers on type and quality specification of the products both in the national and international markets. To address this issue the BoT is also developing market information system. Moreover, the government (BoA) can increase the market potentials of smallholder farmers through promoting organic horticultural crop production as nowadays demand for organic horticultural products increases at an alarming rates in the world markets. Thus, in general, the government should advocate the different horticultural crops production potential of the region so as to diversify and improve its exports.

In general, the strategic interventions and the structural framework needed for addressing a problem of market linkages and information between producers and potential buyers are summarized as follows.

The risk of horticultural product marketing could be addressed through arranging contract farming schemes between producers and potential buyers. The contract farming should be legal as it can be enforced and controlled by the law in case there is default from both partners. In this system of marketing, producers and buyers sign the contractual agreement before the production of crops, which governs both partners in terms of quantity, quality, price and mode of delivery. This will avoid the involvement of illegal brokers who wrongly maximize their benefits at the expense of farmers’ benefits. Moreover, the horticultural crop production will become demand driven and market oriented as the buyers provide market information from the demand side. Strengthening the existing and establishing the new farmers’ cooperatives/ unions is the other possible intervention that can take the roles of brokers in linking producers and potential buyers. ANRS Horticulture Development Strategy

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Moreover, they may involve in agro-processing and other value adding activities. The cooperatives/unions as intermediaries are expected to collect horticultural products directly from smallholder farmers and then sell products by looking for potential markets, up to the central markets of Bahir Dar, Addis Ababa, other regions and countries. The cooperatives shall prepare a plan for smallholder farmers ahead of time what, how and when to produce through consulting the respective potential buyers and smallholder farmers. In general, cooperatives are preferred to individuals in creating market linkage between smallholders and agribusiness firms, because they will have the following advantages: better bargaining power, better access to different supports (inputs, credits, extension and training), secured markets for their products through enhancing competitiveness in both input and output market chains as well as in various government auctions, better access to tax evasion in selling their produces, and high power to control traders’ supply of lower quality seeds and pesticides at expensive prices to smallholder farmers. However, there is a need that the government (Cooperative Promotion Agency) should take the initiative for registering the cooperatives/unions to get TIN number so that they could participate in any legal government auctions to sell their products as well as purchase their inputs. Besides, the Agency should work on developing belongingness of each member to the cooperative.

The other important intervention in this regard is to adopt cluster farming together with staggering. Clustering refers to arranging a production system in which many farmers will produce similar crops based on agro-ecology, watershed or access to irrigation scheme so that wholesalers, traders and agro-processing industries could get enough amount of produces from one area. Clustering improves water use efficiency, as similar crops do have similar water requirements. For e.g., forming a cluster of farmers producing tomato and onion that require more water and another cluster of farmers producing maize and coffee that require less water will reduce wastage of water. One of the major challenges of agro-processing companies, even the small-scales, is that there is no sustainable supply of fruits and vegetables. Hence, staggering of vegetables planting/seedling with certain time interval following the irrigation cropping season will help to have sustainable supply of produces in the market. This intervention has two implications: (1) there will be a sustainable supply of produces in the market throughout the year and (2) the producers will earn high benefits as their produces will be sold at better prices because farmers can produce the same crop at different times in a year. In general, clustering together with staggering will lead to a large scale and sustainable supply of different crops at better prices- i.e., while some farmers produce one type of vegetable, others produce other types ANRS Horticulture Development Strategy

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of vegetables at different times. Moreover, it will make collection and marketing of yields easy as well as reduce the role of brokers in the market chain. However, until this production system is widely adopted by smallholder farmers, the government should support this system by facilitating establishment of contract farming between producers and potential buyers. To avoid a problem of late entrance of smallholders to irrigation season cropping calendar, it is vital to give awareness creation training both to framers and experts that enable to start irrigation season as early as possible. Thus, farmers should start irrigation season soon after the rainy season so that they do have enough season for growing horticultural crops two times per annum using irrigation.

Adoption of market oriented or demand driven production system can also address the marketing problem in the horticulture sector. However, taking only one season price information may not be good predictor for the next year price of the produce. Usually farmers used to produce the fruit/vegetable type that fetched good price in the last year market. But, the last year good price may drop down significantly in this year as most farmers produce this product this year its total supply will increase excessively in a very specific season. Hence, farmers should decide what to produce by considering more than one year price trend as well as the demand at national level besides the local market.

5.1.4 Structural framework needed to address marketing problems Given the marketing problem in perishable crops, contractual farming is among the best interventions to solve the problem. Even though there is only little experience in terms of contractual farming for the horticulture sector, there is no legal framework during default. Hence, there is a need to have a legal platform both for the buyers and producers like in any other business deals that can enforce during default, since it is very important to develop an institution through which trust and accountability will be developed between the two actors. The government legal institutions could take the lead in implementation and enforcement of the laws. For this purpose the contractual farming experience between national/regional seed enterprises and seed grower farmers existed in the production of for example improved seeds of maize and wheat can be adopted.

Trade and transport offices in collaboration with development partners and NOs should work on establishing market linkage between producers and agribusiness firms. In this regard there is a ANRS Horticulture Development Strategy

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good experience by Agricultural Transformation Agency (ATA) in two pilot areas, Awi and West Gojjam zones. ATA supports farmers through identifying high value crops, preparing cropping calendar and demonstrations on FTC’s, distributing technologies (pedal and rope pump), transforming conventional brokers into legal brokers and creating market linkage between Et-fruit and farmers. There is also a good start by Agro-BIG, which attempted to create market link between producers and Et-fruit through having contractual agreement between them in advance of the crop production. Crops are then collected through cooperative union and supplied to Et-fruit. This improves the benefits of farmers by reducing the transaction cost and selling with better price. Thus, this start should be further strengthened and expanded to other parts of the region. In general, BoT should take the responsibility to transform the illegal/conventional brokers into legal entities.

The communication offices should work regularly on advocacy of the products and in distribution of market information among producers and various potential buyers, specifically on current prices of products that are produced by farmers.

The administrative authorities like municipalities should make land available for the establishment of Fresh Vegetable and Fruit Marketing Center. For this purpose the BoT and BoA should initiate the inquiry to respective town municipalities for such land and establish the center in collaboration with respective stakeholders such as producers, Cooperative Promotion Agency, donor organizations and others.

Bureau of Agriculture and /or research institutes, agribusiness firms and donor organizations may introduce alternative improved types and varieties of fruits and vegetables from abroad to diversify and improve market oriented horticultural crop production for local as well as export markets. In this case, the MoA may coordinate the process of importing improved seeds and planting materials at country level. The research institute should take the responsibility to verify their adaptation to the different agro-ecologies of the region. To improve the market oriented horticulture industry in the region, the establishment of regional offices of Ethiopian Horticulture Development Agency and Ethiopian Horticulture Producer and Exporter association is vital. Besides, establishment of an advisory BoArd which mainly focused on development and diversification of fruits and vegetables production and export is also helpful. This advisory board can be constituted from various actors of the horticulture sector such as ANRS Horticulture Development Strategy

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BoA, BoT, Bureau of Communication, Financial institutions, producers and exporter association, agro-processing industries, consumers associations, and etc.

5.2 Proper Production and Management Practices Most farmers in Amhara region follow improper agronomic practices in horticulture production and postharvest handling. For e.g., farmers often use improved seeds, fertilizers and pesticides below the recommended rates.

One of the major challenges of smallholder horticulture farmers in Amhara region that emanates from improper agronomic practices is low quantity and quality of products, high incidence of diseases and insect pests, high postharvest loss. Most farmers in Amhara region follow improper production, management and postharvest handling practices.

5.2.1 Site selection, planting material, land preparation Proper site selection and planting material and land preparation are the first step that should be followed for the successful horticulture enterprise. The site, where fruits and vegetables are produced, should be selected based on the requirements of the specific crops to be produced. Seedlings or planting materials should be well prepared and free from any diseases and insect pests. Besides the seedbed and or plant beds should be prepared based on the requirements of the specific crops to be produced. This can be achieved by continuous training and preparation and distribution of production packages specific to the conditions of the area through the extension services of the agriculture offices, universities, research institutes and other development organizations . 5.2.2 Adequate and timely supply of quality seeds/planting materials The supply of input for the production of fruits and vegetables both in time, quantity and quality is the other major problem in horticulture sector of the region. This is especially serious in seeds and planting materials supply. Most of the farmers use local and uncertified seeds purchased from local private traders which are low in quality. Since most vegetable seeds are imported from abroad, they are untimely delivered and very expensive. Vegetable seeds produced in the region/country are also not enough to satisfy the demands of the farmers, thus very expensive for the smallholder farmers. For example the price of onion seed ranges from 800 to 1000 Birr/kg. ANRS Horticulture Development Strategy

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The situation is especially problematic in vegetables that require high amount of seed to cover a given hectare of land. To plant a hectare of land with improved potato variety with a seeding rate of 20 quintals for example, a farmer require 24,000-30,000 birr to purchase potato tubers having the price of 1200-1500 birr/quintal which is unaffordable for smallholder framers in the region. To alleviate problems associated with the supply of high quality seeds and planting materials of vegetables and fruits various interventions are forwarded and recommended below.

In order to have a sustainable and timely delivery of improved seeds and planting materials and thereby enhance horticulture sector development, various implementation strategies can be devised and implemented. These intervention strategies can be categorized in to two main approaches. The first approach is towards the strengthening of existing seed/planting material producing farmers, cooperatives and governmental enterprises which can be considered as short term intervention strategy. The second approach should be directed towards the establishment and development of new production centers that can be considered as medium and long-term intervention strategy. All the two approaches should be facilitated by responsible governmental organization whose main responsibility will be promoting and developing the production, collection and distribution of seeds and planting materials of horticultural crops as similar to the case of some cereal crops at regional and country level.

At the first stage of interventions, it is advised to support and strengthen the seed and planting material producing smallholder farmers, small-scale private firms and cooperatives. In this regard there are farmers` cooperatives in the region which involve in multiplication and distribution of planting materials and marketing of horticulture products like Borkena fruits and vegetables production and marketing cooperatives, Adame-Ketetya, Werebito, and Mudi-Kalu temperate fruit production and marketing cooperatives in Kalu woreda and other horticulture potential areas. Small-scale private firms are also engaged in the production of vegetable seeds like Bikolo vegetable seed producer in Mecha woreda and others. State owned nursery sites in different part of the region are also producing planting materials for both low land and highland fruit. Furthermore it is also advised to involve the Amhara Seed Enterprise in horticulture seed multiplication and distribution business.

Generally to solve the acute horticulture seed and

planting material problem in the region, the Bureau of Agriculture should take the initiatives to support and promote the existing seed/planting material producing farmers, cooperatives, private investors and state owned nurseries. ANRS Horticulture Development Strategy

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The second approach in addressing the problem of seed and planting material is establishing new state owned seed/planting material producing centers across the different agro-ecologies until the private sector is fully functional in the sector. The involvement of private investors and farmers` cooperatives in seed/planting material production sector of the industry is also indispensible. Therefore promoting of this group of people to involve in production and distribution businesses of seeds/planting materials through special incentives is advisable. Like any other business, the seed production and distribution business should be regulated and inspected through the respective governmental organizations such as Plant Quarantine Agency, Bureau of Trade and other concerned bodies. Moreover, establishing horticulture seed certification scheme is an important strategy to solve problems associated with seed quality in horticulture sector. Every enterprise engaged in the production of horticulture seed should be certified for that particular crop.

Increasing the capacity of existed and establishment of new plant tissue laboratories also have a great significance in solving planting material shortage of the region. Because make use of this technology enable us to produce thousands of planting materials in limited space with in short period of time. In addition planting materials produced by this technology are free of diseases and insect pests which otherwise incur damages in the production field, the main constraints of horticulture sector in the region.

5.2.3 Disease and insect pest incidences Disease and insect pest incidence is the other major constraints in the development of horticulture sector in the region. This is partly due to the natural environmental conditions of the country where tropical and subtropical climates are prevailed that are suitable for the prevalence of diseases and insect pests. The other most important reason for the prevalence of diseases and insect pests is however the improper production and management practices in the production of horticultural crops in the region. The problem is further intensified by the fact that there is skill and knowledge gap in both the producers and experts by identifying the diseases and insect pests and implementing the appropriate control measures. If diseases or insects are occurred, farmers simply purchase and apply pesticides without the consultation of the experts in this regard. This leads to inefficient utilization of chemicals that in turn increases cost of production and environmental pollution and probably build up of resistance in insect pest population. Besides ANRS Horticulture Development Strategy

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because of shortage of reliable supplier, the prices of pesticides are too expensive for the farmers. Therefore, practical training in identification of diseases and insect pests and their control methods is recommended for both the farmers and experts. For this purpose, crop production packages and leaflets containing pictures of very important disease symptoms and insect pest damages of the particular crops and their control measures should be prepared and distributed to farmers and experts.

Using disease and insect pest free certified seeds and planting materials is the other best intervention strategy to address the problem in the region, since prevention is by far better than protection. In this regard all seeds/planting materials used as input for the development of the regional horticulture should be inspected and certified against the most important pathogens and insect pests by respective governmental organization like plant quarantine agency. Enhancing the capacity of plant tissue laboratories in the production of disease free planting materials is also recommended as intervention strategy for this problem. Although developing of resistant varieties is a long process, it can be considered as intervention strategy for the problems associated with diseases and insect pests. In addition adoption of varieties which are confirmed as resistant to a given disease or insect pest in other countries can be also seen as possible intervention strategy for the issue. The issue of developing and adoption of resistant varieties is considered to be practiced by research institutes and universities.

Implementing the principles of integrated pest management (IPM) in the sector is the other important intervention strategy to tackle the problems associated with diseases and insect pests in the region. The IPM strategy includes all possible measures that help to reduce the population of pests under the economical threshold such as cultural, physical, mechanical, biological and chemical control methods. The IPM gives more emphasis to the environmental pollution and the well being of the human being. Generally, implementing proper agronomic and management practices includes use of healthy and strong seed/seedling/planting materials, proper seed/plant bed preparation, proper watering, use of appropriate types and rates of fertilizer and chemicals, proper harvesting and postharvest handling and crop rotation. The improper implementations of the agronomic practices predispose crops to diseases and insect pest damages. Therefore, producers and experts should get continuous short-term and long-term trainings on horticultural crops production including identification of diseases and insect pests together with their controlling methods. Furthermore vegetable and fruit growers should be certified with global ANRS Horticulture Development Strategy

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GAPs (good agricultural practices) which reduce not only the incidence of diseases and insect pests but also enhance production and productivity.

5.3 Capacity Building Capacity building in terms of technology and human resources has a significant role in bringing a rapid and sustainable development of horticulture sector. Thus, horticulture development requires the use of various improved technologies such as plant tissue culture, agro-processing, cold storage, high yielder improved seeds/planting materials, chemicals and others as well as well skilled human resources that are capable of producing, processing, marketing and managing the horticulture sector as the main actor in the value chain.

5.3.1 Technological capacity building in horticulture sector Plant tissue culture technology The technology of plant tissue culture has been developed many decades before and currently used commercially and in research for rapid multiplication and improvement of a wide range of horticultural crops and their production systems. Initially, plant tissue culture was exploited as a research tool and focused on attempts to culture and study the development of small isolated segments of plant tissues or isolated cells. Around the mid twentieth century, the notion that plants could be regenerated or multiplied from either callus or organ culture was widely accepted and practical application in the plant propagation industry ensured. Many commercial laboratories were established around the world for mass clonal propagation of horticultural plants (Akin-Idowu et.al, 2009). Today plant tissue culture of horticultural crops is a reliable technology applied commercially worldwide, which allows large-scale plant multiplication, production, and supply of selected plants. Hundreds of millions of plants are produced annually in both developed and developing countries.

The technology of plant tissue culture is used not only for the production of millions of planting materials in relatively small area but also it is an important technology to produce planting materials that are free from diseases caused by microorganisms like fungi, bacteria, and viruses. This in turn reduces the occurrence and distribution of diseases which is currently the main problem in hhorticulture sector of the region. Therefore, the development of plant tissue culture laboratories in respect to crop improvement and rapid production of disease free planting ANRS Horticulture Development Strategy

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materials should be given due attention by the regional government as well as the government of Ethiopia to enhance the hhorticulture sector of the region in particular and the country in general. Indeed, recently two plant tissue culture laboratories have been established in Kombolcha and Bahir Dar and are contributing to the development of the horticulture sector of the region. However, their capacity should be improved and new laboratories in potential areas should be established in the future to satisfy the need for improved, vigorous and healthy planting materials of the horticulture sector in the region.

Agro-processing industries and other postharvest technologies Besides value addition and shelf-life improvement, agro-processing industries and cold storage facilities are important alternative to reduce the risk of marketing of horticultural products. The development of such technologies in the region is very low although Elfora Agro-Industry PLC has recently established a tomato paste producing industry in Kalu woreda (South Wello). To develop the horticulture sector of the region however, it is necessary to establish new agroprocessing industry and cold storages.

The establishment of agro-processing industry and cold storage is a capital intensive investment and requires a continuous supply of inputs that may not be fulfilled at this developmental stage of horticulture in the region. This condition may not invite the private investors to engage in this sector of horticulture. Therefore, the government is advised to prepare a special incentive packages for private sectors as well as cooperatives to invest on this sector. The other option is the participation of the government in collaboration with farmers and cooperatives and donor organizations on the establishment of agro-processing industry and cold storage service delivery. This is especially necessary in fruit and vegetable producing potential areas at strategic locations which may serve several kebeles and nearby districts. This intervention approach will reduce the risk of marketing and thus motivate the growers to engage in the production of horticultural crops throughout the year and consequently increases the supply. Such conditions may pave the road to private investment and government will then exit from the sector when the private sector investment in the sector increases significantly. This is in line with Ethiopian economic policy which advocates the intervention of the government in areas where the private sector is not actively participated.

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The methods, techniques and tools required for postharvest handling determine the extent of losses on harvested horticultural crops. Proper postharvest handling of horticultural crops is thus equally important as increasing their production in horticulture development strategy, since it reduces postharvest losses and increases the shelf-life of produces. However, the methods and tools used to handle harvested crops in the region are more traditional and rudimentary as observed during the survey assessment. Farmers use sacks and baskets as container and transport using animals like donkey, camel and horses which expose the crops to damages and direct sunlight and accelerate postharvest losses. Therefore, there is a need to introduce appropriate transport containers like corrugated cartons, plastic containers and cold trucks in potential areas that could be done either by private firms with special incentives of the government and/or development partners or by the government organizations like BoA. Among the possible incentives, improving air and road services, import tax exemptions, provision of special credit services for potential investors etc are major once.

5.3.2 Human capacity building in horticulture sector Horticulture is perhaps the most knowledge intensive and dynamic sub-sector of agriculture. Its short-term growths as well as long-term viability are critically dependent on access to technical knowledge, the ability to adapt that knowledge to local conditions and the flexibility to develop new production systems as market change. Thus, lack of skilled and qualified human resources inhibits innovation, technology adoption, and the development of solutions to address key constraints in the horticultural industry. Therefore the development of effective education, training and extension networks involving public, private, and civic sectors collaborations to strengthen the technical capacity of horticulture producers and experts is a prime prerequisite for the success of the sector.

However, especially the vegetable and fruit sub-sector of horticulture in the country in general and the Amhara region in particular are characterized with traditional farming practices where rudimentary agronomic and management practices and postharvest handling technologies are implemented. Consequently the quantity and quality of horticultural crops produced are very low compared to potentials of the region for the sector. One of the strategic interventions in addressing this problem is the establishment of horticulture training centers with the objectives to acquire growers and extension workers with all the necessary skills, knowledge and attitudes of ANRS Horticulture Development Strategy

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production, management, postharvest handling and marketing of horticultural crops. In this regard upgrading the ‘Wotet Abay’ nursery site in Bicolo and similar nursery sites in the region to horticulture training center may help to fill the existing skills and knowledge gaps of farmers and experts in the sector. The intended training should be however practical oriented and follow the principle of a hand-on-job training approach in all value chain of horticultural crops. The Kenyan horticulture industry has also experienced similar approach in enhancing the performance of farmers and development agents towards the development of the Horticulture sector. Once these centers established at the strategic locations of horticulture potential areas in the region, short-term technical training will be delivered to both farmers and experts at least in the middle term interventions. The other important interventions in this regard include organization of experience sharing field visits for both farmers and experts in the areas where farmers and experts have best practices and achievements in horticulture farming and marketing. To bring a rapid and sustainable development of horticulture industry, there should be a technological progress in the sector. This in turn is a function of the availability of skilled and qualified human resources in the sector. Thus, the government (BoA) as its medium-term intervention should upgrade the capacity of experts through long-term trainings particularly specialization in the field of horticulture sciences.

5.4 Institutions and Policies In order to enhance the commercialization of smallholder farmers leading to income growth and poverty alleviation, the government (BoA) has to play a vital role in creating an effective enabling environment for successful contract farming in particular and development of horticulture industry in general in Amhara region. As a short-term intervention, the government with the support of development partners like Agro-BIG and ATA develop the following key elements of an enabling environment for sustainable development of horticulture sector in the region.

Develop legislation, a code of conduct and regulations for contract farming arrangements Contract farming schemes are normally investment projects organized by large-scale processors, exporters or retail chains (supermarkets). Thus, an enabling environment that facilitates private investment in horticulture business is a necessary precondition for the development of private CF ANRS Horticulture Development Strategy

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schemes. The enabling environment includes investment and trade policies, contract legislation, provision of public goods such as roads and other infrastructures, research and other support services.

One of the major challenges in CF arrangements is contract breach due to opportunistic behavior of both partners. CF arrangements should be backed up with appropriate laws and an efficient regulatory system. Studies indicated that the experience of CF as a business model in Ethiopia in general is very limited and relatively a recent phenomenon. Hence, there is no legally binding contract legislation that specifically regulates CF arrangements between smallholder farmers and agribusiness firms. Therefore, there is a need to develop contract legislation using legal experts by reviewing the current legal framework related to CF.

Developing contract legislation is not enough for the promotion of viable and sustainable CF; legal contractual arrangements are often breached due to lack of enforcement mechanisms. Thus, there should be effective legal enforcement mechanisms that can serve as a code of conduct for contractual arrangements between smallholder farmers and agribusiness firms. Although over regulation is not desirable to business environment. However, introduction of regulations in some critical aspects, such as use of pesticide application, food standards and safety, provision of horticulture seed certification and the like create an effective enabling environment for CF. Regulations could also be applied to prevent monopsony situations and protect contracting agribusiness firms that have invested in CF from opportunistic firms and traders that offer contracted smallholder farmers higher prices for breaking of the contract.

Establish a separate horticulture work process In earliest times, the government had given limited attention to horticulture development and hence all horticulture and related activities were carried out by graduates of plant science under the department of crop at different levels (bureau, zone and woreda). Recently the government has started to give due attention for the development of Horticulture sector and established the so-called Vegetable and Fruit Development and Irrigation Water Use Work Process at different levels of Agriculture offices of the region. This work process is responsible only for crops produced during the irrigation season including horticultural and field crops. However horticultural crops that are produced during the main rainy season such as potato, pepper, carrots, cabbages, etc are followed by the crop development work process. That leads to fragmentation of ANRS Horticulture Development Strategy

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the sector and reduce the overall follow up of the horticulture development endeavors of the region. Even a person who wants to assess the current production of horticultural crops should collect data from two work processes namely crop and horticulture and irrigation water use which makes the work complicated. In addition experts in horticulture and irrigation water use work process are mostly graduates of plant sciences and irrigation which may lack the specific requirements in the production, management, postharvest handling and marketing of horticultural crops. Furthermore, the overall work and extension services conducted by this process may tend to focus on the production of field crops (cereals) during the irrigation season. Therefore it is highly recommended to organize the horticulture sector as one work process like field crops and give the responsibility to follow, inspect, and give advisory and extension service to all horticultural crops whether cultivated during meher or irrigation season. Besides, to reduce the existed skill and knowledge gap in horticulture value chain among the experts who are working in front line the government should employ individuals who are graduated in horticulture fields. In addition, to address the limited supports of experts to the development of horticulture industry in the region, the followings are recommended: 

Strengthening the support and monitoring activities in the Horticulture sector at all levels,



Establishing horticulture demonstration fields at kebele level/FTCs,



Developing production and postharvest handling manuals for horticultural crops,



Strengthening the existing nursery sites and establishing new ones at the strategic locations of potential areas in the region,



Giving appropriate awareness creation practical training for both farmers and experts,



Giving long-term training for experts in the field of horticultural science.

Establish advisory board and organizing a platform for stakeholders of horticulture industry The horticulture sector by its nature is participating different stakeholders such as growers, traders, processing firms, developing partners and donor organizations, research institutes, universities and various governmental offices. Each of them is working on various activities that may contribute to the development of Horticulture sector of the region. But their developmental activities are not organized under one platform. Donor organizations for example supply production inputs such as improved seeds/planting materials and irrigation equipment and gives training, and extension services directly to smallholder farmers without participating or consulting the respective agricultural offices. Such kind of supports would not be sustainable because of the limited life span of such donor organizations. Therefore, for its sustainability and ANRS Horticulture Development Strategy

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even for improvement of the proposal and results of donor organizations it would have been better to work with the respective governmental offices (BoA) in the implementation of such projects.

The research institutes are also engaged in research activities which may help to improve the horticulture sector of the region, although the quantity and quality of researches in horticulture sector is limited. In addition, the research institutes should produce and distribute basic seeds of various horticultural crops in consultation with the need of the main stakeholder (BoA). Similarly universities are producing horticulture professional that contribute to the development of the sector, even if the curriculum is focused more on theoretical knowledge rather than practical skills which shall be prepared based on the needs of the main stakeholder of the sector (BoA). The Bureau of Agriculture as main stakeholder of the sector should also inform its need for basic seeds and forwards the problems that should be solved through research activities and extension services of respective stakeholders such as development partners and research institutes and universities. Furthermore, the horticulture extension group needs to be established in agricultural offices that can specifically participate in the extension and scaling up of the research results related to horticultural sector development.

All the above mentioned activities and others which are focused towards the development of horticulture of the region should be well organized and structured by establishing advisory BoArd and organizing a platform. The main objective of the advisory BoArd should be coordinating the development activities of the stakeholders in the area of horticulture and organizing platform in which activities are jointly planned, results and impacts of the activities are reported, discussed and evaluated. The member of the advisory Board could be constituted from the representatives of the main stakeholders of the sector under the chairmanship of Bureau of Agriculture. Unless such platform is organized there will be duplication of efforts and ineffective utilization of the scarce resources and projects will not be sustainable as reported by key informants during the survey of the consultant.

Promote financial institutions to deliver credit services to horticulture sector In order to transform smallholder, subsistence farming into commercialized agriculture and hence make the horticulture sector competitive, there is a need to use improved technologies in the sector such as, quality seeds, pesticides, irrigation equipment, agro-processing industries, storage ANRS Horticulture Development Strategy

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facilities and other technologies which are relatively capital intensive. Therefore, smallholder farmers as well as private investors in the sector could not be able to use and establish such technologies without the involvement of financial institutions. However, accessing credit services to smallholders and private investors would enable them to utilize these technologies. Thus, it is vital to provide credit services for the investments made in horticulture sector in collaboration with microfinance institutions, governmental and private banks. Let alone investment in agroprocessing and cold storage, the amount of money required for purchasing seeds of some horticultural crops (for e.g. potato improved seed) is too much that could not be affordable by some smallholder farmers. Hence, the government should initiate the financial institutions to extend especially their long-term credit services to both smallholder farmers and private investors of horticulture sector.

Promote investment opportunities for both domestic and foreign investors Amhara region is endowed naturally with suitable environment and fertile soil necessary for the development of agriculture in general and horticulture in particular. These potentials are however not well communicated to potential private investors, since their involvement in commercial fruit and vegetable production of the region is very limited compared to other regions like Oromia and SNNPS, although very few investors are participating in flower production around Bahir Dar. Therefore, it is highly recommended to communicate and advocate the horticulture potentials of the region to domestic and foreign investors through government communication office and other stakeholders using alternative Medias such as brochures, leaflets, workshops and ICTs, etc. Furthermore, the government of the region should provide a provision of special incentives for the promotion of investments in the Horticulture sector. The incentives may be different in type such as, tax exemption, provision of suitable land free of charge, infrastructure development, simplifying bureaucracy, etc.

Land use certification scheme for perennial/fruit crops production Ethiopian policy makers voted for a constitution (in 1994) that grants free access to land to every rural resident who wants to farm and earn income from farming. Some argue that it is tenure security not land ownership which is regulated through registered title, leasehold or rental agreement. Many studies have shown how perceived insecurity of tenure restricts people’s incentives to participate on long-term investment. The fear of redistribution hangs over many smallholder farmers and is well remembered from the past. The present effort to improve land administration and security of

tenure includes a focus on land certification, where the regional government will issue land ANRS Horticulture Development Strategy

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certificates to individual farmers. Access to land is an important issue for the majority of Ethiopian people who, one way or the other, depend on agricultural production for their income and subsistence. Unlike other horticultural crops, fruits are perennial crops where the reward/benefit

of their investment takes longer time to be effective. Therefore, it is very important to encourage the smallholder farmers in fruit production investment by ensuring longer time land use certificates.

Establish modern irrigation schemes and their management systems Making use of irrigation potentials of the region is an important measure to increase production and productivity of crops in general and horticultural crops in particular. Most farmers in the region are not using irrigation for the production of horticultural crops. Only some farmers are producing horticultural crops using traditional irrigation methods where most of the irrigation water is lost through percolation and evaporation, thus water use efficiency is very low. The other major challenge in traditional irrigation schemes used by most farmers is that the cannels for water transport require continuous maintenance and repair services. Consequently, farmers continuously exert much more efforts in terms of labor and materials for the maintenance of these schemes. Therefore, modern irrigation channels should be established in potential areas of the region in collaboration with farmers, government and donor organizations. Moreover, most farmers nowadays want to install alternative irrigation system such as pedal and rope pumps in their boreholes and want to acquire water pumps. Hence, establishing irrigation equipment manufacturing industries and maintenance and repair services is recommended to satisfy the requirements of crop production using irrigation system. Maintenance and repair services of irrigation equipments could be delivered by farmer`s cooperatives trained with the required skills and knowledge in collaboration with government and donor organizations.

Empower WUCs and WUAs Poor management of water and irrigation schemes and weak institutional capacity of Water User Cooperatives (WUCs) and Associations (WUAs) are the other major challenges of modern irrigation schemes.

Currently the country has developed a 15 years (2002-2016) regional and national water resource development plan to introduce efficient and sustainable uses of water resources for irrigation and other purposes. However, these development plans didn’t consider the value of the irrigation ANRS Horticulture Development Strategy

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water, which in turn enhances the complexity of irrigation water management decision and deterioration of the resource. Thus, pricing of water is important not only for generating revenues but also for promoting efficient use of water resource (Takase 1987) through creating an ownership feeling to the farmers (Vincent 1990) and recovering repair and maintenance costs of the irrigation schemes, which will ultimately lead to better use of available water and increased crop production. In contrast, a free or very low water charge may led to inefficient allocation of the scarce resource, encourages overuse, reduces the incentive for farmers to cooperate or participate in irrigation originations, and may result in low productivity of the system and poor conservation (Lusk and Parlin 1991). Both under pricing of water and lack of cost recovery mechanisms in government managed irrigation systems had resulted in poor operation and management (Bandara 2005). Chandrasekaran et al (2009) also suggest that adopting water conservation technologies and a water pricing policy can improve efficient and sustainable use of water resources. However, beneficiaries of the irrigation schemes in Ethiopia in general and Amhara region specifically have not yet paid any charge for irrigation water they used. Thus, it is highly recommended to undertake a study to determine the value of irrigation water by considering the capacity of farmers to pay during dry and rainy season and to draw implementation policies for efficient and sustainable utilization and management of the irrigation schemes.

Moreover, water use and management efficiencies of irrigation schemes will be improved by empowering the managerial ability of Water User Cooperative (WUC) and Water User Association (WUA) executive members through delivering training and advisory services. Furthermore the introduction and accessibility of water conserving technologies such as drip and sprinkler irrigations may also help in increasing the irrigation water use efficiency.

5.5 Cross Cutting Issues 5.5.1 Women and youths participation in horticulture sector Women’s participation in the economic sphere is narrow and largely confined to domestic work and low paid jobs in the formal economic sphere. That makes the women largely reliant on economic support of men for themselves and their families. However, a recent trend in the empowerment of women makes a difference in the involvement of women in crop production. Although, the Horticulture sector is a good source of employment and income for rural and urban ANRS Horticulture Development Strategy

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households the role and participation of women and youths in the sector is limited. Therefore it is recommended to increase the participation of women and landless youths in urban agriculture and different value adding activities such as sorting, grading, packaging, transportation and in supply of transport containers by organizing them in small and medium enterprises (SMEs) which creates employment opportunities and improves their livelihoods. Furthermore women and youths may participate on service provision like agro-chemical spraying, motor pump and irrigation canal maintenance, etc.

5.5.2 Environmental issues in horticulture sector Horticulture is an intensive system of crop production and characterized by rigorous utilization of production inputs including chemicals such as fertilizers, pesticides (herbicides, fungicides insecticides), etc. These chemicals may cause environmental pollution if they are not used properly.

Chemical fertilizers are important inputs to increase production and productivities of horticultural crops. There application rates should be determined based on the environmental conditions, nutrient contents of the soil and the requirements of the crops to be produced. Leaching of high rates of chemical fertilizer applied for crop production may cause pollutions of underground and surface water bodies. This may not be however a serious problem in Horticulture sector of the region since most farmers do not apply chemical fertilizers and if applied they use below the recommended rates. But for the future due attention should be given to the environmental impacts of chemical fertilizers and fertilizers should be applied to compensate the nutrient deficiency of soils required for the production of that particular crop which should be determined by soil and plant analysis. Regarding to fertilizer, the importance, preparation and application of organic fertilizers like compost in the production of horticultural crops should be given due attention. Because, organic fertilizers improve the structure of the soil, hence improve the water holding capacity, soil aeration and reduce chemical fertilizer requirements by increasing plant nutrient utilization efficiency and adding supplementary plant nutrients to the soil necessary for crop production.

Pesticides such as fungicides, insecticides, herbicides and others are the other group of chemicals used in commercial horticulture farms. They may also cause environmental pollution and harmful to human being and beneficial organisms like honey bees. During application all safety ANRS Horticulture Development Strategy

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procedures that are indicated on the package of the chemicals should be followed and personal safety equipments such as hand glove, protective cloth, goggle etc should be used. Their application on fruits and vegetables should be in line with the international and national food safety standards, since the presence of pesticide residues on fresh fruits and vegetables is forbidden. Therefore, their application should be controlled and supervised by the respective stakeholder of the government like BoA and others. In this regard landless youth can be organized and trained and give chemical application services which may create employment opportunity and improve livelihood.

Most of pesticides used in crop production are exported from aBoArd. The export of such chemicals should be also controlled by the respective governmental authority. This is because some pesticides are banned because of their carcinogenetic properties and their long persistent ability in the environment. Generally, pesticides used in the sector should be certified to be applied on that particular horticultural crop.

Horticultural crops like fruit trees have also positive effects on the environment. Like any tree they reduce erosion and absorb CO2 for their photosynthesis activity which in turn reduces the concentration of greenhouse gas like CO2. In line with the country`s green economy policy and soil and water conservation strategies, fruit trees should be planted in sloppy areas using terrace planting system to stabilize the watersheds with biological features that in turn creates potential employment opportunity for landless youths to improve their livelihood. Even annual vegetables like cabbages, carrots, potatoes, peppers, etc. can be grown in sloppy watersheds on table/bench terraces during the rainy season with minimal soil cultivation practices.

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6. Implementation Plan Table 14. Implementation plan

No 1

Strategic pillars Market linkages 1.1 Contract farming schemes

1.2 Fresh vegetable and fruit market center for producers

Strategic interventions  Promote collective action  Promote Public-Private-Partnership (PPP) in research, extension and large investment  Develop small scale out-growers schemes  Develop innovative private enforcement mechanisms  Develop effective standards for horticulture products  Promote competition among agribusiness firms  Develop legal frame work for contracts & provide arbitration services  Strengthening the existing and establishing the new farmers’ cooperatives/ unions  Establish fresh vegetable and fruit market center for producers at the strategic location of potential areas as pilot projects  Scaling up of the proven fresh vegetable and fruit market centers to wider potential areas in the region

ANRS Horticulture Development Strategy

Responsible body

Time frame 2015 2016 2017 2018 2019

BOA, WOA1, BOA, WOA1, ARARI, private investors

X X

X X

BOA, WOA1, NGOs

X

X

Beauro/office of trade and industry, BOA, WOA1,

X X

X

BOA, WOA1, NGOs, Cooperatives Legal institutions, WOA

X

X

X

X

Cooperative promotion Agency1, BOA, WOA,

X

X

City administration1, BOA, BoT

X

X

City administration1, BOA, WOA, BoT

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X

X

X

X

X

X

X

X

X

X

X

No Strategic pillars Strategic interventions Responsible body  Establish Ethiopian Horticulture Investment Promotion 1.3 Market oriented Development Agency (EHDA) and Agency1, BOA, HDA, horticulture production Ethiopian Horticulture Producers and EHDA, and export diversification Exporter Association (EHPEA) at & improvement regional level  Promoting production of organic horticultural produces  Advocating horticultural products to national & world markets  Adopt clustering and staggering production system

2

Time frame 2015 2016 2017 2018 2019 X

BOA, WOA1, NGOs

X

X

X

Gov’t communication office1, BOA BOA, WOA1, NGOs

X

X

X

X

X

X

X

X

X

X

Kebelle level DAs1, WOA, NGOs Nursery sites, WOA, ARARI

X

X

X

X

X

X

X

X

X

X

Kebelle level DAs1, WOA,

X

X

X

X

X

ARARI1, University, BOA,

X

X

BOA, WOA1, ASE, ESE

X

X

Cooperative promotion 1 agency , BOA, WOA, ASE, ESE, Cooperative promotion agency1, BOA, WOA, ASE,

X

X

X

X

X

X

Production and Management practices 2.1 Site selection & planting material and land preparation

2.2 Adequate and timely supply of quality seeds/planting materials

 Proper site selection based on the requirements of individual crops  Producing healthy and strong planting materials  Proper seed and/or planting bed preparation according to the requirement of the crops  Developing and distribution of horticultural crop production packages based on specific conditions of the area  Establishing seed multiplication centers across agro-ecologies  Promote private sectors and farmers` cooperatives involve in horticulture seed multiplication business  Promote state seed enterprises involve in horticulture seed

ANRS Horticulture Development Strategy

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No Strategic pillars

2.3 Disease and pest control

Strategic interventions

Responsible body

multiplication business  Close monitoring and follow up of agricultural input traders  Practice plant quarantine practices  Introduce certified seed production & supporting producers for certified seed multiplication  Introducing improved seeds from abroad by conducting adaptation trials  Strengthening existing and establishing new tissue cultures  Strengthening the existing and establishing new nurseries  Generating disease resistant varieties through research  Implement plant quarantine  Promote proper agronomic and certify producers with global GAPs  Promote IPM  Identifying pests and recommending appropriate pesticides  Prepare pictorial booklets with symptoms of major diseases and pests and their treatments for woreda and kebele experts  Introducing small scale protected cultivation  Enhancing the capacity of plant tissue culture laboratories

ESE, regional government Beauro of trade and industry, WOA Quarantine enterprise?? ESE1, ASE, BOA, ARARI

ANRS Horticulture Development Strategy

Time frame 2015 2016 2017 2018 2019 X

X

X

X

X

X X

X X

X X

X X

X X

ARARI1, University

X

X

X

BOA, ARARI, ORDA

X

X

X

X

X

BOA1, WOA

X

X

X

X

X

X

X

X

ARARI1, University Quarantine enterprise ?? BOA1, WOA

X X

X X

X X

X

X

BOA, WOA1 ARARI1, University, BOA, WOA BOA1, WOA, ARARI, Universities, NGOs

X X

X X

X X

X X

X X

ARARI, BOA,

X

X

ARARI, BOA, ORDA

X

X

X

X

X

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X

No 3

Strategic pillars Strategic interventions Capacity building 3.1 Technological capacity  Awareness creation on postharvest handling through training and development experience sharing  Creating access to appropriate containers for fruits and vegetables  Provide special incentives for value addition/creation in the horticulture sector  Improve sea, air and road transportation services  Strengthening existing and establishing new farmers’ cooperatives involve in agroprocessing industries  Establishing cold storage and agroprocessing industry in potential areas where the private sector unable to involve  Establishing modern irrigation scheme and its management system in the irrigation potential areas  Improving water use efficiency by adopting drip and sprinkler irrigation systems  Establish practical training centers at 3.2 Human capacity strategic locations that deliver shortdevelopment term training for both experts and farmers  Providing farmers’ advisory services  Short-term training for experts and

ANRS Horticulture Development Strategy

Responsible body

Time frame 2015 2016 2017 2018 2019

BOA1, ARARI, Universities

X

X

X

Traders1, BOA, Cooperative and promotion agency, Investment promotion agency1, ARARI, University

X

X

X

X

X

X

Beauro of transport1, regional government Cooperative promotion agency1, BOA, WOA

X

X

X

BOA1, NGOS, Regional government

X

X

X

X

X

X

X

X

X

X

X

X

X

X

BOA1, NGOs

X

X

X

X

X

BOA1, ARARI, Beauro of water,

X

X

X

BOA1, WOA

X

X

X

BOA1, Universities, ARARI BOA1, Universities, ARARI

X X

X X

X X

X X

X X

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No Strategic pillars

Strategic interventions

   

4

farmers in horticulture production, postharvest handling, utilization and proper agronomic practices Long-term training for experts in horticulture fields Organizing experience sharing field visit for both farmers and experts Arranging demonstration sites on FTCs that enable farmers get technical and practical knowledge Experts in the horticulture section at least at woreda level should be graduates of horticulture

Responsible body

Time frame 2015 2016 2017 2018 2019

Universities

X

X

X

X

X

BOA1, WOA, ARARI

X

X

X

X

X

BOA1, WOA, Kebele level agriculture office, ARARI

X

X

X

X

X

BOA1, Universities

X

X

X

BoA, WoA, BoT, legal institutions

X

X

BOA1, WOA

X

BOA1, WOA, Universities, ARARI, NGOs, private sector

X

Banks, MFIs, cooperative promotion agency, WOA

X

X

X

X

X

Investment promotion agency1, regional government BOA1, Amhara construction design, Amhara water works enterprise,

X

X

X

X

X

X

X

X

X

X

Institutions and policies  Develop legislation, a code of conduct and regulations for contract farming arrangements  Organize a separate structure for horticulture section responsible for both meher and irrigation seasons  Organize a platform for stakeholders in horticulture industry at regional, zonal and district levels  Promote financial institutions to deliver credit services to horticulture sector  Promote investment opportunities for both domestic and foreign investors  Develop modern irrigation schemes and its management system in the irrigation potential areas

ANRS Horticulture Development Strategy

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No Strategic pillars

Strategic interventions

 Establish small-scale workshops for maintenance and repair services especially for irrigation equipment  Empower WUCs and WUAs  Allowing land use certification scheme for the production of especially perennial/fruit crops

5

Cross cutting issues 5.1 Women & youths participation

5.2 Environmental aspects

Responsible body BOA, WOA, input suppliers

X

X

X

Cooperative promotion agency1, BOA, WOA BOA, BoEPLUA, Regional government, investment promotion agency,

X

X

X

X

X

X

X

 Promote urban agriculture to create BOA, Amhara women more employment opportunities for association, NGOs women and youths  Organize women and youths in SMEs Small scale enterprise, BOA, to participate in different value WOA adding activities such as transportation, storage, packaging materials, containers,  Promote planting of fruit crops in BOA, EPA, ARARI closed and rehabilitated watersheds Note: 1 refers to the coordinator/main stakeholder.

ANRS Horticulture Development Strategy

Time frame 2015 2016 2017 2018 2019

Page 80

X

X

X

X

X

X

X

X

X

X

X

X

X

X

7. Logical framework analysis Table 15. Logical framework analysis Hierarchy of objectives

Progress indicators

Indicators in quantities

Means of verification

• % increase in share of the sector to the regional GDP • Increase in income of smallholders

Share of horticulture sector increased Status of smallholder livelihood gets improved

• BoFED reports • BoA reports • CSA reports

1. Fruit and vegetable production increased three times the current 730 thousand tons in the region

Growth rate of horticulture production in the region

Total horticulture production in the region grows by 25% each year

• CSA reports • BoFED reports • BoA reports

2. Fruit and vegetable exports of the Amhara region will increase to one hundred million USD.

Total export of fruits and vegetables in the region in USD

Total horticulture exports of the region will be 100 million USD at the end of the implementation period

• IPA reports • HDEA reports • CSA reports

3. Share of Horticulture sector to the regional crop production increased from nine to twenty percent

Percentage share of horticulture to crop production in the region

Percentage share of horticulture to crop production will be 20% in 2019

• CSA reports • BoFED reports • BoA reports

Assumptions

Goals: 1. The contribution of Horticulture sector to the regional GDP increased 2. Livelihood of smallholder farmers in the region improved

Objectives:

ANRS Horticulture Development Strategy

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• Good cropping seasons • No major occurrence of uncontrollable pests and diseases • Government gives due attention • Farmers implement proper agronomic practices • Good cropping seasons • No major occurrence of uncontrollable pests and diseases • Government gives due attention • Farmers implement proper agronomic practices • Stable international market • Good cropping seasons • No major occurrence of uncontrollable pests and diseases • Government gives due attention • Demand for horticultural crops increases over time • Farmers become more market

Hierarchy of objectives

Progress indicators

Indicators in quantities

Means of verification

4. Production of fruit planting materials in the region will increase every year by 20% from the current 31.7 million in number.

Growth rate of horticulture seeds & planting materials production

Fruit planting materials production increased by 20% each year.

• BoA reports • BoT reports • Coop/union reports • Nursery center reports

5. Smallholder farmer`s gross margin from fruit and vegetable sub-sector will increase by 25% every year.

Gross margin of producers

The gross margin of farmers increased at least by 25% each year

• Research reports

6. Participation of youths and women in fruit and vegetable sub-sector increased from 1.6 to 5 million beneficiaries

Number of youths and women participated in the sector

Number of youths and women engaged in the sector increased to 5 million in 2019

• BoA reports • CPA reports • SMEs’ reports

7. Post-harvest losses in horticulture sector will reduce by 50% from the current level ranging from 30 to 35%. 8. Share of commercial farming system of horticultural crops will increase to 30% from the current level of less than 3%. 9. Five fruit and vegetable agro-processing industries will be established in selected potential areas of the region.

Decrease in postharvest loss

Postharvest loss reduced to 50% in 2019

• BoA reports • Survey report

oriented • Rainfall is normal • No major occurrence of uncontrollable pests and diseases • Government gives due attention • Seed production and multiplication coops/ unions are established & strengthened • Strong coops/unions are established • Farmers have good market linkage with potential buyers and accessed to market information • Government gives due attention for participating youths & women in the horticulture business • Working habits of the people improve over time • Proper storage and transportation facilities

Decrease in traditional farming

Share of commercial farming system will be 30% in 2019

• BoA reports • Survey report

• Improved credit and marketing systems

Number of agro processing industries

Total of five agro industries will be established in the region during the implementation period

• IPA reports • Improved credit and marketing • BoA reports systems • BoFED report • Adequate and sustainable supply of quality horticultural products • Trust based contractual farming well adopted in the sector

ANRS Horticulture Development Strategy

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Assumptions

Hierarchy of objectives

Progress indicators

Indicators in quantities

Means of Assumptions verification • BoA reports • A reasonable irrigation water • Local use fee payment introduced administrative • Irrigation water use conflict office reports among users solved through empowering WUCs/WUAs • BoWR report • Water conserving irrigation technologies well adopted • Proper maintenance and repair services for irrigation schemes & equipment delivered

10. Water use efficiency of the irrigation schemes improved from 40% to 60%

Increase in irrigation water use efficiency

Water use efficiency of the irrigation schemes increased to 60% by 2019

1. Market linkage created among horticulture producers and potential buyers 2. Seed multiplication and marketing coops/unions (SMMCs) involved at least in potato and onion crops

No. of farmers accessed to secured markets for products No. of SMMCs involved in potato and onion seed business

• No. of farmers benefited from market linkage

Survey BoA report CPA report SMMC report Survey

3. Market information dissemination system (MIDS) developed among producers and potential buyers 4. Clusters formulation among horticulture producers scaled up at zone and district level

No. of farmers accessed to market information by 2019 No. of clusters and farmers clustered at zone & district level by 2019 Adoption rate of staggering known by 2019

• No. of SMMCs benefited from seed business • No. farmers accessed to quality seed supply & market at reasonable prices • No. of farmers benefited from access to market information • No. of clustered farmers • Proportion of farmers benefited from clustering • Adoption rate determined • Sustainable market supply of products

Outputs:

5. Staggering plantation adopted by horticulture producers following the irrigation cropping season

ANRS Horticulture Development Strategy

• Farmers produced quality horticultural crops sufficiently and sustainably • SMMCs are voluntary to enter in the horticulture business

Survey Interview

• The government gives due emphasis

Survey BoA report

• Farmers are voluntary to form clusters

Survey BoA report

• Farmers are accessed to early maturing horticultural crops and get the proper training

Page 83

Hierarchy of objectives

Progress indicators

6. Fresh vegetable and fruit marketing center for producers (FVFMCPs) scaled up at zone and district level

No. of FVFMCs established at Zone & district level by 2019 Types of diseases & pests controlled

7. Diseases and pests of horticultural crops identified and treated

8. Pictorial booklets/leaflets on symptoms and treatments of diseases/pests developed for district and kebele level experts

9. Improved seeds and planting materials secured at community level

10. Improved postharvest handling practices and technologies secured at community level

11. Farmers’ & experts’ knowledge & skill on horticultural activities improved

ANRS Horticulture Development Strategy

Indicators in quantities

• No. FVFMCP established • No. of farmers benefited from selling products at these centers • Types of diseases/ pests controlled • No. of farmers controlling diseases The booklet prepared • No. of experts accessed to booklets • Proportion of experts able to identify diseases prevailed in their area using booklets At least coop members • No. of seed growers and nursery sites • Types and amounts of seeds become source of produced seeds and planting • Proportion of farmers materials, respectively accessed to planting materials for various fruits Adoption rate of post • Adoption rate determined harvest handling practices & technologies known by 2019 No. of farmers & experts whose Knowledge & skill improved

• No. of farmers & experts whose knowledge & skill gaps addressed

Means of verification Survey BoA report Municipal report Survey Observation Report review BoA report Interview Observation

CPA report Farmers’ Coop report Interview BoA report Survey

Interview Observation

Page 84

Assumptions • The local government is willing to deliver land in the town for center establishment • Experts get the proper training, • Horticulture specialists are recruited in the horticulture section • Budget required for developing & duplicating booklets allocated

• Coops and nursery sites are accessed to basic seeds & planting materials • The required budget for planting materials multiplication allocated for fruit nursery sites • Farmers get appropriate training & access to information on postharvest technologies • The technologies introduced from abroad easily adapt the local environment • Farmers & experts get practical training on horticultural activities

Hierarchy of objectives

Progress indicators

Indicators in quantities

12. Proper agronomic practices (PAP) and technologies adopted at least on potato, tomato and onion production 13. Extension advisory services secured at community level

Adoption rate of PAP and technologies known by 2019 No. of farmers accessed to extension advisory services Adoption rate of these seeds known by 2019 A regular platform organized among stakeholders

• Adoption rate determined

Means of verification Survey

• No. of farmers benefited from extension advisory services • Adoption rate determined

Interview Observation Report review Survey

14. Quality and disease tolerant seeds introduced for at least potato, onion, orange and apple crops adopted 15. A regular platform organized among stakeholders for horticulture sector development

16. Upgraded and newly established agroprocessing industries by the public

17. Private sectors involved in horticulture sector investment/business 18. Irrigation schemes improved their organization & management(O&M)

ANRS Horticulture Development Strategy

• A joint plan prepared and implemented by stakeholders • A regularly functioning platform No. of agro• No. of agro-processing processing industries industries upgraded and upgraded and established in the region established by the • Capacity utilization of these public industries • No. of farmers linked with these industries No. of private sectors • No. of private sectors involved in benefited from horticulture horticulture business business No. of irrigation • Efficient and sustainable schemes whose O&M use of water and irrigation improved schemes

Assumptions • Farmers are willing to use improved technologies as per recommendation • Technically fully equipped experts are available sufficiently • Seeds introduced from abroad easily adapt local environment

Interview Report review

• Stakeholders are willing to join a platform regularly & act accordingly with their respective responsibilities

IPA report Interview BoFED report

• The required budget released timely • Adequate amount and quality of horticultural crops produced sustainably

IPA report Interview

• FIs deliver long-term credits for horticulture investors

Survey BoA report Interview

• Appropriate training for WUA and WUC committee members given

Page 85

Hierarchy of objectives

Progress indicators

Indicators in quantities

19. Drip, sprinkler & rope pump irrigation technologies adopted

Adoption rate of these technologies known by 2019

• Adoption rate determined • Efficient use of irrigation water

Means of verification Survey

Assumptions • Quality irrigation technologies delivered at reasonable prices • FIs deliver credit for purchasing the technologies

Activities: 1. Contractual farming (CF) agreement made among potato, onion and tomato producers and potential buyers

2. Contractual farming agreement made among mango, avocado, banana, guava, papaya and orange producers and potential buyers

3. Established plant tissue cultures

4. Staggering plantation introduced on potato, tomato and onion crops as pilots 5. The existing and newly established SMMCs strengthened and promoted to involve at least in potato and onion crops ANRS Horticulture Development Strategy

No. of producers • No. of producers created CF created CF agreement agreement with buyers, • Potential buyers for these Potential buyers for products identified these vegetables • Proportion of producers identified sold their surplus products to their partners at reasonable prices No. of producers • No. of producers created CF created CF agreement agreement with buyers, • Potential buyers for these Potential buyers for products identified these fruits identified • Proportion of producers sold their surplus products to their partners at reasonable prices No. of tissue cultures • No. of districts and farmers established served by these tissue cultures Effectiveness of • Effectiveness of staggering staggering plantation plantation determined as a pilot No. of the existing • No. of existing and newly and newly established established SMMCs SMMCs strengthened involved in potato and

Survey Report review Interview

• Both farmers and potential buyers are willing to create CF

Survey Report review Interview

• Both farmers and potential buyers are willing to create CF

BoA report Observation Interview Observation Interview

• The required budget for tissue culture establishment released timely • Farmers are familiarized with staggering plantations

CPA report SMMC report Observation

• The government gives due emphasis

Page 86

Hierarchy of objectives

Progress indicators and promoted

6. Small-scale potato processing equipment supplied to primary coops

7. Potato and tomato processing industry established at the region by the public as a pilot 8. Clusters formed at least among potato and tomato producers as pilots

Indicators in quantities

Means of verification

Assumptions

CPA report SMMC report Observation

• The required budget released timely

Observation Report review

• The required budget released timely

Observation Report review

• Farmers are willing to form clusters • The regional government is willing to deliver place for FVFMCF at the capital city • The required budget for a study released timely

onion crops

• No. of potato processing equipment supplied & coops accessed to these equipment • Effectiveness of the processing industry determined No of clusters formed No of clustered farmers and farmers clustered benefited from clustering No. of small-scale potato processing equipment supplied to primary coops Effectiveness of the processing industry

9. FVFMCF established at regional level as a pilot

FVFMCP established at the region

• Effectiveness of FVFMCP verified

Interview Observation

10. A study conducted on indentifying diseases/pests on horticultural crops and recommending their appropriate treatments 11. Quality and disease tolerant seeds introduced from abroad for potato, onion, orange and apple crops

Types of diseases/ pests identified

Study report

12. Technical training center established at the strategic location of horticulture potential areas 13. Private sectors and ASE advocated to involve in seed multiplication and marketing business on at least potato and onion crops

Training center established

• Types of diseases/ pests identified • The appropriate treatments recommended • Effectiveness of these varieties to tolerate diseases & improve quality of products determined • Training center established at the strategic location

The promotion made to private sectors & ASE for potato & onion seed business

• No. of private sectors involved in this business • ASE involved in this business

ANRS Horticulture Development Strategy

Varieties of these introduced seeds identified

Observation Interview BoA report

• The required budget released timely

Observation Interview

• The required budget released timely

BoA report ASE report Survey

• The government gives due emphasis

Page 87

Hierarchy of objectives

Progress indicators

Indicators in quantities

14. The research institute initiated to focus its research works on horticultural crops specifically to adaptation trails, and identification of diseases and their treatments 15. Inspected agricultural input traders

Type & number of studies conducted on horticulture related issues known by 2019 No. of agri. input traders inspected

• Type & number of studies conducted on horticulture related issues identified

16. Training farmers on production, utilization , post harvest handling, marketing, operation and handling of irrigation equipment and PAP 17. Short term on-job training to experts on identifying diseases & pests, operation and handling of irrigation equipment and PAP 18. Experience sharing field visit organized for both farmers and experts

19. Long-term training given to experts specifically on horticultural sciences 20. FTC’s strengthened and promoted to include at least potato, onion and tomato production, small-scale processing & consumption in their demonstration sites 21. Production packages at least for potato, onion & tomato crops developed, based ANRS Horticulture Development Strategy

• No. of inspected traders supplying quality inputs to farmers No. of farmers • No. of trained farmers trained on these • Proportion of trained topics farmers well performing these activities No. of experts taking • Proportion of short-term short-term training on trained experts able to these topics effectively advise farmers on these topics No. of farmers and • Proportion of farmers and experts participated experts participated in in experience sharing experience sharing field field visit visit No. of experts taking • No. of trained experts able long-term training on to effectively advise these sciences farmers on horticultural activities No. of FTC’s • No. of FTC’s well demonstrated these performing demonstration activities in their sites of these activities in their sites Production packages developed for these

• Area specific production packages developed for

Means of verification Study report Survey BoA report

• The government gives due emphasis

Interview BoA report

• The government gives due emphasis

BoA report Interview Observation

• The required budget released timely

BoA report Interview Observation

• The required budget released timely

Survey BoA report

• The required budget released timely

BoA report Interview

• The required budget released timely • Universities in the country can train in this field of studies • FTC’s are willing to participate in the horticulture activities

FTC report Interview Observation

BoA report Interview

Page 88

Assumptions

• Experts get the appropriate training

Hierarchy of objectives on specific conditions of the area 22. A separate horticultural section organized at least at WoA 23. Horticulture graduates recruited in horticulture section at WoA 24. Strengthened existing and newly established fruit nursery sites 25. Cold storage and agro-processing industries established at the strategic location of at least for potato and onion producers 26. The investment opportunities (like incentive packages) popularized for both domestic and foreign investors 27. The financial institutions (MFIs & banks) initiated to supply long term credits for horticulture investors 28. A study conducted on determining fees for irrigation water use

29. Training given to WUC and WUA committee members on efficient and sustainable use of irrigation water ANRS Horticulture Development Strategy

Progress indicators crops

Indicators in quantities

Means of verification

Assumptions

these crops

A separate horticultural section organized at WoA No. of horticulture graduates recruited in the section No. of fruit nursery sites strengthened & established No. of cold storage and agro-processing industries established

• A separate horticultural section installed at WoA

BoA report Observation

• The government gives due attention

• No. of horticulture graduates in the section

BoA report Observation

• Horticulture specialists available in the national market

• No. of farmers served by these nursery sites

BoA report Survey

• The required budget released timely

• No. of cold storage and agro-processing industries available in the region

IPA report BoA report Survey

• The required budget released timely

No. of foreign and private inventors in horticulture sector increased No. of horticultural investors received long-term credits The amount of irrigation water fee determined

• No. of foreign and private inventors in horticulture sector

IPA report BoA report Survey

• The required budget released timely

• Proportion of investors received long-term credits

MFI & bank reports Interview Study report

• The horticulture business is profitable

Interview Observation

• The required budget released timely

No. of WUC & WUA committee members taking training

• The amount of irrigation water fee determined • The institutional set up required for implementation determined • No. of WUC & WUA committee members whose knowledge and skill gap addressed

Page 89

• The required budget released timely

Hierarchy of objectives

Progress indicators

Indicators in quantities

30. Newly established modern irrigation schemes in the irrigation potential areas

No. of newly established modern irrigation schemes No. of distributed drip, sprinkler & rope pump irrigation technologies

• No. of newly established modern irrigation schemes

31. Drip, sprinkler and rope pump irrigation technologies distributed to horticulture producers

ANRS Horticulture Development Strategy

• No. of distributed drip, sprinkler and rope pump irrigation technologies • No. of farmers installing these technologies on their farms

Means of verification BoA Report Observation

• The required budget is available

BoA Report Observation

• The required budget released timely

Page 90

Assumptions

8. Monitoring and Evaluation Plan Bureau of Agriculture (BoA) will undertake periodic and participatory monitoring and evaluation with a view to promote learning. It will help stakeholders examine the progress, challenges and achievements of horticulture sector in the plan period. It also recognizes the values of various actors in the sector and empowers them to build sense of ownership.

Monitoring will focus on the physical performances, budgetary utilization, quality and quantity of the work done. Quantity of activity accomplished, timeliness, budget utilization, proper targeting and quality of work are some of monitoring indicators. Activity accomplishment against plan in the specified timeframe, budget utilization against planned budget, cost against benefit and progress of the activities towards the overall goal will be monitored. Regular and periodic activity performance and financial reports, field visit and regular meeting with stakeholders are sources of pertinent data for monitoring purpose. Monitoring will be performed throughout the implementation process of the strategic interventions at different levels. On the other hand, evaluation will focus on the impacts brought about as a result of the strategic interventions. The terminal evaluation will be held by independent consultants immediately after completion of the plan period facilitated by BoA and AGRO-BIG. The methods of evaluation will be participatory and primary data from household surveys and secondary data will be also used. These data will be analyzed and interpreted to trace results against set indicators (Table 16). During the terminal evaluation, BoA and government line offices will actively participate and evaluation report will be generated for learning and to be sent to BoA and AGRO-BIG. Recommendations of the evaluation will be used for further planning of development initiatives by BoA in collaboration with local communities.

ANRS Horticulture Development Strategy

Page 91

Table 16. Monitoring and evaluation plan M&E objectives

Indicators

Information to be collected

Methods/tools for collecting information

Methods of analysis

To check the market linkage created among farmers & buyers To check participation of SMMCs in the seed business

No. of farmers accessed to secured markets for products No. of SMMCs involved in the seed business

• No. of farmers benefited from market linkage

Survey BoA report

Descriptive

• No. of SMMCs benefited from seed business • No. farmers accessed to quality seed supply & market at reasonable prices • No. of farmers benefited from access to market information

CPA report SMMC report Survey

Descriptive

Survey Interview

Descriptive

• No. of clustered farmers • Proportion of farmers benefited from clustering

Survey BoA report

Descriptive

• Adoption rate determined • Sustainable supply of products to the market at various times • No. FVFMCs established • No. of farmers benefited from selling products at these centers • Types of diseases/pests controlled • No. of farmers controlling diseases/pests

Survey BoA report

Descriptive

Survey BoA report

Descriptive

Narrative summaries

Outputs: 1. Market linkage created among producers and potential buyers 2. Seed multiplication and marketing coops/unions (SMMCs) involved at least in potato and onion crops

3. Market information dissemination system (MIDS) developed among producers and potential buyers 4. Clusters formulation among horticulture producers scaled up at zone and district level 5. Staggering plantation adopted by horticulture producers following the irrigation cropping season 6. Fresh vegetable and fruit marketing center for producers (FVFMCPs) scaled up at zone and district level 7. Diseases and pests of horticultural crops identified and treated

To assess the MIDS established

No. of farmers accessed to market information by 2019 To check clusters No. of clusters and scaled up at zone and farmers clustered at district level zone & district level by 2019 To assess adoption Adoption rate of rate of staggering staggering known by 2019 To assess the FVFMCP No. of FVFMCP established at zone & established at zone & district level district level by 2019 To verify diseases & Types of diseases & pests controlled pests controlled

ANRS Horticulture Development Strategy

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Municipal report

Survey Observation Report review

Descriptive

M&E objectives

Indicators

Information to be collected

8. Pictorial booklets/leaflets on symptoms and treatments of diseases/pests developed for district and kebele level experts

To check the booklet showing symptoms and treatments of diseases developed

The booklet prepared

9. Improved seeds and planting materials secured at community level

To check availability of improved seeds and planting materials at community level

Farmers’ Coop members become source of seeds, Farmers accessed to planting materials

10. Improved postharvest handling practices and technologies secured at community level

To assess adoption rate of post harvest handling practices & technologies

11. Knowledge and skill of farmers and experts updated/upgraded

To check Knowledge and skill gap of farmers and experts addressed To assess adoption rate of PAP and technologies To check extension advisory services delivered to farmers To verify quality & disease tolerant seeds adopted at least for these crops

Adoption rate of post harvest handling practices & technologies known by end of 2019 No. of farmers and experts whose Knowledge & skill updated/upgraded Adoption rate of PAP and technologies known by 2019 No. of farmers accessed to extension advisory services Adoption rate of these seeds known by 2019

• No. of experts accessed to booklets • Proportion of experts able to identify diseases prevailed in the area using booklets • No. of seed growers • Types and amounts of seeds produced • Proportion of farmers accessed to planting materials for various fruits • Adoption rate determined

Narrative summaries

12. Proper agronomic practices (PAP) and technologies adopted at least on potato, tomato and onion production 13. Extension advisory services secured at community level 14. Quality and disease tolerant seeds for potato, onion, orange and apple crops adopted

ANRS Horticulture Development Strategy

Methods/tools for collecting information BoA report Interview Observation

Methods of analysis

CPA report Farmers’ Coop report Interview BoA report

Descriptive

Survey

Descriptive

Descriptive

• No. of farmers & experts whose Interview Knowledge & skill gaps Observation addressed

Descriptive

• Adoption rate determined

Survey

Descriptive

• No. of farmers benefited from extension advisory services

Interview Observation Report review Survey

Descriptive

• Adoption rate determined

Page 93

Descriptive

M&E objectives

Indicators

Information to be collected

To check a platform organized among stakeholders and regularly functional To check agroprocessing industries upgraded and established by the public

A platform organized among stakeholders

To assess the private sectors involved in horticulture business To check the O&M of irrigation schemes improved To assess adoption rate of these irrigation technologies

• A joint plan prepared & implemented by stakeholders • A regularly functioning platform • No. of agro-processing industries upgraded and established in the region • Capacity utilization of agroprocessing industries • No. of farmers linked with these industries • No. of private sectors benefited from horticulture business

No. of private sectors involved in horticulture business No. of irrigation • Efficient and sustainable use of schemes whose O&M water and irrigation schemes improved Adoption rate of • Adoption rate determined these technologies • Efficient use of irrigation water known by 2019

Narrative summaries 15. A regular platform organized among stakeholders for horticulture sector development 16. Upgraded and newly established agro-processing industries by the public

17. Private sectors involved in horticulture sector investment/business 18. Irrigation schemes improved their organization & management(O&M) 19. Drip sprinkler and rope pump irrigation technologies adopted

No. of agroprocessing industries upgraded and established by the public

Methods/tools for collecting information Interview Report review

Methods of analysis

IPA report Interview BoFED report Observation

Descriptive

IPA report Interview

Descriptive

Survey BoA report Interview Survey Interview

Descriptive

Descriptive

Descriptive

Activities: 1. Contractual farming (CF) agreement made among at least potato, onion and tomato producers and potential buyers

Descriptive

To assess the CF created among these crops’ producers and potential buyers

ANRS Horticulture Development Strategy

No. of producers • No. of producers created CF created CF agreement agreement with buyers, • Potential buyers for these Potential buyers for products identified these vegetables • Proportion of producers sold Page 94

Survey Report review Interview

Descriptive

M&E objectives

Indicators

Information to be collected

Narrative summaries identified 2. Contractual farming agreement made among mango, avocado, banana, guava, papaya and orange producers and potential buyers

To assess CF created among these fruits’ producers and potential buyers

3. Established plant tissue cultures

To check the plant tissue cultures established To check staggering plantation introduced as a pilot To assess the existing and newly established SMMCs strengthened and promoted To check small-scale potato processing equipment supplied to primary coops To check this industry established and verify its effectiveness To check clusters formed among potato & tomato producers

4. Staggering plantation introduced on potato, tomato and onion crops as pilots 5. The existing and newly established SMMCs strengthened and promoted to involve at least in potato and onion crops 6. Small-scale potato processing equipment supplied to primary coops 7. Potato and tomato processing industry established at region level by the public as a pilot 8. Clusters formed at least among potato and tomato producers as pilots

ANRS Horticulture Development Strategy

Methods/tools for collecting information

Methods of analysis

Survey Report review Interview

Descriptive

Descriptive

their surplus products to their partners at reasonable prices

No. of producers • No. of producers created CF created CF agreement agreement with buyers, • Potential buyers for these Potential buyers for products identified these fruits identified • Proportion of producers sold their surplus products to their partners at reasonable prices No. of tissue cultures • No. of districts and farmers established served by these tissue cultures Effectiveness of staggering plantation as a pilot No. of the existing and newly established SMMCs strengthened and promoted No. of small-scale potato processing equipment supplied to primary coops Effectiveness of the processing industry

• Effectiveness of staggering plantation determined

BoA report Observation Interview Observation Interview

• No. of existing and newly established SMMCs involved in potato and onion crops

CPA report SMMC report Observation

Descriptive

• No. of potato processing equipment supplied & coops accessed to these equipment

CPA report SMMC report Observation

Descriptive

• Effectiveness of the processing industry determined

Observation Report review

Descriptive

No of clusters formed and farmers clustered

No of clustered farmers benefited from clustering

Observation Report review

Descriptive

Page 95

Descriptive

M&E objectives

Indicators

Information to be collected

Methods/tools for collecting information Interview Observation

Methods of analysis

To assess FVFMCP established and verify its effectiveness To check a study for identifying diseases/ pests conducted

FVFMCP established at the region

• Effectiveness of FVFMCP verified

Types of diseases/ pests identified

• Types of diseases/ pests identified • Their recommended treatments

Study report

Descriptive

Varieties of these introduced seeds identified

• Effectiveness of these varieties to tolerate diseases & improve quality of products determined

Observation Interview BoA report

Descriptive

Training center established

• Training center established at the strategic location

Observation Interview

Descriptive

The promotion made to private sectors & ASE for potato & onion seed business

• No. of private sectors involved in this business • ASE involved in this business

BoA report ASE report Survey

Descriptive

Type & number of studies conducted on horticulture related issues known by 2019 No. of agri. input traders inspected No. of farmers trained on these topics

• Type & number of studies conducted on horticulture related issues identified

Study report Survey BoA report

Descriptive

• No. of traders supplying quality inputs to farmers • No. of trained farmers • Proportion of trained farmers well performing these activities

Interview BoA report BoA report Interview Observation

Descriptive

Narrative summaries 9. FVFMCF established at regional level as a pilot 10. A study conducted on indentifying diseases/pests on horticultural crops and recommending their appropriate treatments 11. Quality and disease tolerant seeds introduced for at least potato, onion, orange and apple 12.

13.

14.

15. 16.

To check quality and disease tolerant seeds introduced for these crops Technical training center To assess the training established at the strategic location center established at of horticulture potential areas the strategic location Private sectors and ASE advocated To check the to involve in seed multiplication and promotion made to marketing business on at least private sectors & ASE potato and onion crops to involve in potato & onion seed business The research institute initiated to To assess the research focus its research works on institute conducted horticultural crops specifically to adaptation trails, adaptation trails, and identification identification of of diseases and their treatments diseases & treatments Inspected agricultural input traders To check agri. input traders inspected Training farmers on production, To assess farmers utilization , post harvest handling, trained on these topics marketing, operation and handling of irrigation equipment and PAP

ANRS Horticulture Development Strategy

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Descriptive

Descriptive

M&E objectives

Indicators

Information to be collected

Narrative summaries 17. Short term on-job training to experts on identifying diseases & pests, operation and handling of irrigation equipment and PAP 18. Experience sharing field visit organized for both farmers and experts 19.

20.

21.

22.

23.

24.

To check experts given short-term training on these topics To check experience sharing field visit organized for farmers and experts Long-term training given to experts To assess experts given specifically on horticultural sciences long-term training on horticultural sciences FTC’s strengthened and promoted To check FTC’s to include at least potato, onion and demonstrated tomato production, small-scale production, processing processing & consumption in their &consumption of these demonstration sites crops in their sites Production packages at least for To check area specific potato, onion & tomato crops production packages developed, based on specific developed for these conditions of the area crops A separate horticultural section To check a separate organized at least at WoA horticultural section organized at WoA Horticulture graduates recruited in To check horticulture horticulture section at WoA graduates recruited in the section Strengthened existing and newly To assess fruit nursery established fruit nursery sites sites strengthened & established

ANRS Horticulture Development Strategy

No. of experts taking • Proportion of trained experts short-term training on able to effectively advise these topics farmers on these issues No. of farmers and • Proportion of farmers and experts participated experts participated in in experience sharing experience sharing field visit field visit No. of experts taking • No. of trained experts able to long-term training on effectively advise farmers on these sciences horticultural activities No. of FTC’s • No. of FTC’s well performing demonstrated these demonstrations of these activities in their sites activities in their sites

Production packages developed for these crops

• Area specific production packages developed for these crops

A separate • A separate horticultural section horticultural section installed at WoA organized at WoA No. of horticulture No. of horticulture graduates in graduates recruited in the section the section No. of fruit nursery  No. of farmers served by these sites strengthened & nursery sites established

Page 97

Methods/tools for collecting information BoA report Interview Observation

Methods of analysis

Survey BoA report

Descriptive

BoA report Interview

Descriptive

FTC report Interview Observation

Descriptive

BoA report Interview

Descriptive

BoA report Observation

Descriptive

BoA report Observation

Descriptive

BoA report Survey

Descriptive

Descriptive

M&E objectives

Indicators

Information to be collected

To assess cold storage and agro-processing industries established

No. of cold storage  No. of cold storage and agroand agro-processing processing industries available industries established in the region

Narrative summaries 25. Cold storage and agro-processing industries established at the strategic location of at least for potato and onion producers 26. The investment opportunities (like incentive packages) popularized for both domestic and foreign investors 27. The financial institutions (MFIs & banks) initiated to supply long term credits for horticultural investors 28. A study conducted on determining fees for irrigation water use

To check investment opportunities popularized worldwide To assess FIs supplied long-term credits to horticultural investors To check a study conducted on determining fees for irrigation water 29. Training given to WUC and WUA To assess the training executive committee members on given to the WUC & efficient and sustainable use of WUA executive irrigation water committee members 30. Newly established modern irrigation To assess newly schemes in irrigation potential areas established modern irrigation schemes 31. Drip, sprinkler and rope pump To assess drip, irrigation technologies distributed to sprinkler & rope pump horticulture producers irrigation technologies distributed

Inputs:

 To check availability of human power  To check timely release & appropriate

ANRS Horticulture Development Strategy

No. of foreign & private investors in horticulture sector No. of horticultural investors received long-term credits The amount of irrigation water fee determined

 No. of foreign & private investors engaged in horticulture sector  Proportion of investors received long-term credits  The amount of irrigation water fee determined  The institutional set up required for implementation determined  No. of WUC & WUA committee members whose knowledge and skill gap addressed  No. of newly established modern irrigation schemes

No. of WUC & WUA committee members taking training No. of newly established modern irrigation schemes No. of distributed  No. of distributed drip, sprinkler drip, sprinkler & rope and rope pump irrigation pump irrigation technologies technologies  No. of farmers installing these technologies on their farms  Effectiveness & efficiency of Personnel: the personnel involved in the B.Sc. = 429 activities M.Sc. = 159  Regular & timeliness of PhD = 15 Page 98

Methods/tools for collecting information IPA report BoA report Survey

Methods of analysis

IPA report BoA report Survey MFI & bank reports Interview Study report

Descriptive

Interview Observation

Descriptive

BoA Report Observation

Descriptive

BoA Report Observation

Descriptive

Reporting Auditing & action plan Inventory

Descriptive

Descriptive

Descriptive

Descriptive analysis

M&E objectives

Indicators

Information to be collected

utilization of budget  To check availability of facilities

Finance:

approved fund disbursement  Availability of required facilities

Narrative summaries

808 million birr Facilities: Offices and office furniture

ANRS Horticulture Development Strategy

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Methods/tools for collecting information report

Methods of analysis

9. Stakeholders for Amhara Region Horticulture Sector Development 9.1 Stakeholder Analysis ANRS Bureau of Agriculture Amhara Bureau of Agriculture is the main stakeholders in the horticulture sector development in the region. The responsibility of the Bureau ranges from preparation to implementation of the horticultural development strategy. It is also expected to allocate budget and appropriate human resource in the sector, provide short term and long term training on horticultural science for experts at different levels, provide extension service and inputs for the sector and coordinate stakeholders in the sector to make it competitive and profitable. Even though there are good efforts towards these and other responsibilities there are also some limitations. First of all, the horticulture sector is a sub process in the irrigation. This has its own implication in terms of assigning the appropriate professional and giving weight in terms of budget. There is limitation in the budget, despite that by their very nature the sector is budget demanding. Hence it is important to organizing a horticulture section as a separate structure in all level of agricultural offices. Last but not least, the Bureau should provide appropriate and quality planting materials produced in nursery and plant tissue cultures to enhance production and productivity of smallholder farmers. The bureau should also work hand in hand together with other stakeholders like universities and ARARI in identifying problems and devising their solutions for the development the horticulture sector of the region.

ANRS Bureau of Cooperative Promotion Agency Bureau of cooperative promotion agency at respective levels are among the major stakeholders in the horticulture industry. These days, cooperatives are becoming power for the limitation of capital both in the production and marketing of horticultural crops. Even though there are very few successful marketing cooperatives/unions, for horticulture crops, generally the status of marketing cooperatives at farmers grass root level is poor. The bureau is responsible to organize, support and monitor different cooperatives and unions which are involved in production and marketing of horticultural crops. Moreover, it is also important to evaluate the limitation in the structural organization of plan and plan to solve possible interventions which could enhance performance of structural organization. Last but not least, it is supposed to scale up best experiences of cooperatives/unions at different parts of the country. ANRS Horticulture Development Strategy

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ANRS Bureau of Trade As a stakeholder in the regional horticulture industry, Bureau of Trade is responsible to monitor and supervise licensed traders and trading institutions. Moreover, the Bureau is also expected to give license for investors and promote horticultural products in collaboration with stakeholders. However, the effort in terms of searching for potential market and creating linkage between producers and buyers is very limited especially at smallholder farmers’ level. Hence, given the perish ability of the products, the BoT should participate in creating market linkage between the producers, agro-processing industries, traders and consumers and in advocating the crops and providing market information for producers. .

ANRS Bureau of Investment Promotion Agency Following the growing demand in organic fruits and vegetables, there is an increasing trend in terms of investment in the sector. Basically, Bureau of Investment Promotion Agency is responsible to prepare strategic plan to attract potential investors at national and international level through incentive and promotion. Moreover, it should also assist, supervise and monitor large scale investors who are involved in the horticulture industry. Even though there is an effort in this direction, majority of investors in the sector produce/aim to produce mainly flower. Hence, the beauro should equivalently to work on investors in fruit and vegetable production to exploit the potential in the region. Importantly, attention should be given in terms of length of lease period to fruit production as special incentive.

Universities and Amhara Regional Agricultural Research Institution (ARARI) Universities are places where professionals emanate from. Fortunately, currently there are seven universities in the region. Given their responsibility to provide quality and practical education in horticulture science to support the sector and to undertake problem oriented researches on horticulture production, storage and marketing universities could be taken as great opportunities in horticulture sector development. However, there is limitation in terms of providing practical education in the horticulture science and undertaking problem oriented research. Hence, given that the sector needs improvement in skill and research findings, universities are expected to exert more efforts. Similarly, ARARI is an institution which is mandated to coordinate and undertake researches in the region. Among its responsibilities, undertaking researches towards adaptation, variety development and developing varieties resistant/tolerant to diseases and insect pests. Besides providing pre-basic seeds, capacity building and developing crop production ANRS Horticulture Development Strategy

Page 101

packages that can be utilized by smallholder farmers are also responsible to the institute. However, the research activities are biased towards grain crops like cereals and other crops. Hence, given its economic importance both at national and regional level, ARARI should give more attention to horticultural crops in the future.

Horticulture Development Agency The agency was objectively established with the aim of developing the horticulture sectore of the country so that increasing the benefit from export of horticultural crops. Specifically the agency is responsible to facilitate the infrastructure (for example cold storage) necessary for the development of the sector, give advisory service for investors who want to invest in the sector, create market linkage between exporters and producers of horticultural crops using out-growers. Besides preparing strategic plan to create conducive environment for commercial producers and investors in the horticulture sector by facilitating access to inputs, credit service and providing incentives are the major duties of the agency. Given the current experience, the agency is closely working with private investors who are engaged in the horticultural crops production and export. However, the agency is limited to commercial farmers although the greater amount of the national as well as the regional horticulture is produced by smallholder farmers. Since there is limitation in capital among smallholder farmers, the agency could work on sources of finance and adopt out grower schemes to enhance the contribution of smallholder farmers for the regional and national export earnings of the sector.

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9.2 Responsibilities/Roles of Stakeholders Table 17. Responsibilities of stakeholders for Amhara region horticulture sector

No

Organization/institution

1

ANRS Bureau of Agriculture

Main responsibilities/roles      

2

ANRS Bureau of Cooperative Promotion Agency

   

3

ANRS Bureau of Ethiopian Horticulture Development Agency

  

4 5

ANRS Bureau of industry ANRS tissue culture institute

 

Prepare horticultural development strategic document, implement, monitor and evaluate its outcome. Allocate budget and human resource to implement ANRS horticulture development strategy. Prepare long term and short term strategic implementation plan. Support small holder farmers to enhance production and productivity by providing input and extension services up to grass root level Creating access to credit, training and improved technologies for small scale horticultural crop producers Coordinate different GOs and NGOs working in horticulture sector to contribute their own share to enhance profitability and competitiveness of the sector Organize, support and monitor different cooperatives and unions which are involved in production and marketing of horticultural crops. Evaluate the limitation in the structural organization of plan and plan to solve possible interventions which could enhance performance of structural organization. Prepare a strategic plan to solve credit and marketing problems in the horticulture industry. Scale up best experiences of cooperatives/unions, which are successful in terms of production, marketing and export of horticultural crops to different parts of the region Facilitate construction of infrastructure (road, storage) to enhance the exchange rate that the region could get. Creating market linkage between exporters and producers of horticultural crops using out-growers service/method Prepare strategic plan to create conducive environment for those who invest and are planning to invest in the horticulture sector by facilitating access to inputs, credit service and providing incentives. Prepare strategic plan to create market linkage between producers and agro processing firms/industry. Provide appropriate and quality planting material to enhance production and productivity of small holder horticultural crop producers.

ANRS Horticulture Development Strategy

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No

Organization/institution

6

ANRS Bureau of trade

7

ANRS Bureau of Investment Promotion Agency Universities

8

9 10

11

12 13 14

15

16

ANRS Bureau Of Road and Transport ANRS Bureau of Urban and Construction Development ARARI

Main responsibilities/roles  To monitor and supervise licensed traders and trading institutions.  To give license for investors on horticulture crop production, processing and packaging, based on the quality assurance.  To promote horticultural products in collaboration with stakeholders.  To prepare strategic plan to attract potential investors at national and international level through incentive and promotion.  Assist, supervise and monitor large scale investors who are involved in the horticulture industry.  To provide quality and practical education in horticulture science to support the sector  To undertake problem oriented researches on horticulture production, storage and marketing  Providing short term training for different stakeholders in the horticulture industry  To maintain existing roads and construct new roads in potential horticulture crop production areas.  To incorporate horticultural crop storage, processing and marketing cites in master plan so as to provide access to fresh and quality horticultural products.

 Undertake research towards variety development and disease and pest control measures to increase production and productivity  Prepare strategic plan, identify strategic issues and undertake problem solving researches on horticulture production and marketing Banks/ACSI  Provide long term credit service for horticulture crop producers and processors. AISCO/Et-fruit  Provide quality inputs for smallholder farmers on time. Bureau of Water Resource  Developing and managing the water resource intensively, but sustainably, targeting comprehensive economic growth to improve living standard of the people of Amhara National Regional State.  Identify the potentials and opportunities of the region in terms of irrigation potential Amhara Design Supervision  Perform activities of study and design that enable water resource of the surroundings on use, having Works Enterprise been combined irrigation and drainage, ground, surface and rain water.  Supervise over while the construction is carried out. Amhara Water Works  Support the industry by constructing quality irrigation projects, to improve production and productivity of Construction Enterprise horticulture sector.

ANRS Horticulture Development Strategy

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No

Organization/institution

17

Private investors

18 19

Small scale farmers NGOs

Main responsibilities/roles  Participate in production, processing and export of horticultural crops by using the incentives provided by the government and act in line with development strategies of the region and the country.  Support smallholder horticultural producer farmers by training and technology transfer.  Adopt proper agronomic practices for horticultural crop production to boost production and productivity.  Support the horticulture industry financially and technically. Technical support includes short and long term training and experience sharing.

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References Abiti Getaneh Gebremeskel (2011): Ethiopian Water Resource Potential and Development. Ministry of Water and Energy. Awulachew, SB; Yilma, A D; Loulseged, M.; Loiskandl, W., Ayana, M.; Alamirew, T. (2007). Water Resources and Irrigation Development in Ethiopia. Colombo, Sri Lanka: International Water Management Institute. 78p. (Working Paper 123) Bandara, K.R.N. (2005). A National Water Policy for Sri Lanka, Concept paper, Interim National Water Resources Authority. Bezabih Emana and hadera Gebremedhin (2007): Constraints and Opportunities of Horticulture Production and Marketing in Eastern Ethiopia. DCG Report No.46 Bijman, J. (2008). Contract Farming in Developing Countries: an overview. Wageningen UR Center for Development innovation. Wageningen, The Netherlands. Binswanger, H., Deininger, and G. Feder (1995). Power, Distortions, Revolt and Reform in Agricultural and Relations. In: Jere Behrman, and T.N. Srinivasan (eds.). Handbook of development economics. Vol. 3B, Chapter 42. Amesterdam: North Holland. BoFED (2003): Development indicators of Amhara Region. Bahir Dar BoFED (2011): Geography and Climate. Bureau of Finance and Economic Development of ANRS, in: www.amharabofed.gov.et/ANRS/geography_climate.html Catelo, M.O. and Costales, A. (2008). Contract Farming and Other Market Institutions as Mechanisms for Integrating Smallholder Livestock Producers in the Growth and Development of the Livestock Sector in Developing Countries.CEDEP (1999): Center for Development of People. In: https://www.cedep.org/ Chandrasekaran K. et al (2009). Farmers’ Willingness to Pay for Irrigation Water: A Case of Tank Irrigation Systems in South India. J. Water, 1, 5-18. CSA (2007): Compilation of Economic Statistic in Ethiopia CSA (2007-2013): Agricultural Sample Survey Report on Area and Production (Private Peasant Holdings Meher Season. Central Statistical Agency of Ethiopia, Statistical Bulletin Da Silva, C.A.B. (2005). The Growing Role of Contract Farming in Agri-Food Systems development: Drivers, Theory and Practice. Agricultural Management, Marketing and Finance Service, Rome: Food and Agricultural Organization. Demese Chanyalew, Berhanu Adenew and John Mellor (2010): Ethiopia’s Agricultural Sector Policy and Investment Framework (PIF) 2010-2020. Ministry of Agriculture and Rural Development, Addis Ababa, Ethiopia

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Diao, X., Hazell, P., Thurlow, J. (2010): The Role of Agriculture in African Development, World Development, doi:10.1016/j.worlddev.2009.06.011 Eaton, C. and Shepherd, A. (2001). Contract Farming: Partnerships for Growth. Agricultural services Bulletin 165. Rome: Food and Agricultural Organization. EIA (2012): Investment Opportunity Profile for the Production Fruits and Vegetables in Ethiopia. Ethiopian Investment Agency, Addis Ababa, Ethiopia FAO (2012): Food and Agriculture Organization http://faostat.fao.org/ Updated October, 2014.

of

the

United

Nations.

In:

Geiger, M., Moller, L. C. (2013): Ethiopia Economic Update II: Laying the Foundation for Achieving the Middle Income Status, The World Bank. Glover, D. (1994). Contract farming and commercialization of agriculture in developing countries. In: Von Braun, J and Kennedy, E (Eds), Agricultural commercialization, economic development and nutrition. Baltimore, MD: Johns Hopkins University Press, pp. 166-175. HODECT (2010): Tanzania Horticultural Development Strategy 2012- 2021, Horticultural Development Council of Tanzania Joosten, F., Boselie, D., Bekele Wolde and Lemma Desalegn (2011). Exporting Fruit and Vegetables from Ethiopia: Assessment of Development Potentials and Investment Options in the Export-oriented Fruit and Vegetable Sector, Ethiopia-Netherlands Horticulture Partnership Program Kirsten, J and Sartorius, K.I. (2002). Linking agribusiness and small farmers in developing countries: Is there a new role for contract farming? Development Southern Africa 19 (4). Lusk, M.W.; Parlin, B.W.(1991). Bureaucratic and Farmer Participation in Irrigation Development. In: Farmer Participation and Irrigation Organization Studies in Water Policy and Management, Parlin, B.W., Lusk, M.W., Eds.; Westview Press: Boulder, CO, USA, p. 17. Ministry of Agriculture (2013): National Horticulture Development Strategy of Ethiopia, Draft, Addis Ababa, Ethiopia Minot, N. (1986). Contract Farming Contract Farming and its Effect on Small Farmers in Less Developed Countries. Working Paper No. 31. Department of Agricultural Economics, Michigan State University. Minot, N. (2007). Contract Farming in Developing Countries: Patterns, Impacct, and Policy Implications. Case Study No. 6-3 of the Program:”Food Policy for Developing Countries: The Role of Government in the Global food System”. Ithaca: Cornell University, New York. Minot, N. (2011). Contract Farming in sub-Saharan Africa: Opportunities and Challenges. International Food Policy research Institute. Seleshi Bekele Awulachew (2010): Irrigation potential in Ethiopia: Constraints and opportunities for enhancing the system. International Water Management Institute. ANRS Horticulture Development Strategy

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Solomon Bizuayehu, 2014. Technical Efficiency of major crops in Ethiopia. Acadamia Journal of Agricultural Research 2(6):147-153. Takase, K. (1987). ADB Experience in Irrigation Development and Management, Irrigation Engineering and Rural Planning, 11, 1-7. USAID (2000): Amhara National Regional State Food Security Research Assessment Report USAID (2005): Global Horticulture Assessment, Dorothy Ross (editor), University of California Davis, USA USAID-CIAFS (United States Agency for International Development-Capacity to Improve Agriculture and Food Security) (2012). Contract farming and policy options in Ethiopia. Printed by ETH-CANA Printing plc. Vincent, L. (1990). Sustainable Small-Scale Irrigation Development: Issues for Farmers, Governments and Donors. Int. J. Water Resour. Dev., 6, 250-259. Williamson, O.E. (1985). Hierarchies, Markets, and power in the Economy. An Economic Perspective. Industrial and Corporate Change. Williamson, O.E. (2000). The New Institutional Economics: Taking stock, looking ahead. Journal of Economic Literature, 38(:595-613.3). www.prnewswire.com/.../ Global Horticulture Market Outlook 2015

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Annexes ANNEX 1: PLANTING MATERIAL PRODUCTION PLAN (‘000) OF NURSERY SITES AND AREA COVERAGE OF PLANTING MATERIALS DURING THE PERIOD OF THE REGIONAL HORTICULTURE DEVELOPMENT STRATEGY (2015-2019) IN AMHARA REGION 2015

2016

2017

2018

No Horticulture crops 1 Citrus

No 1000

No 1100

2750

No 1210

Ha

2500

3025

No 1330

2

Mango

2500

6250

2750

6875

3025

7562.5

3

Avocado

3000

7500

3300

8250

3630

4

Apple

1000

2500

1100

2750

5

Plum

100

250

110

6

Pear

100

250

7

Banana

5000

8

Papaya

9

3325

No 1464

3328

8320

3660

9150

9075

3993

9982.5

4393

10982.5

1210

3025

1331

3327.5

1464

3660

275

121

302.5

133

332.5

146

365

110

275

121

302.5

133

332.5

146

365

12500

5500

13750

6050

15125

6655

16637.5

7321

18302.5

1000

2500

1100

2750

1210

3025

1331

3327.5

1464

3660

Guava

3000

7500

3300

8250

3630

9075

3993

9982.5

4393

10982.5

10 Coffee

15000

37500

16500

41250

18150

45375

19965

49912.5

21961

54902.5

31700

79250

34870

87175

38357 95892.5

42192

105480

46412

116030

Total

ANRS Horticulture Development Strategy

Ha

Ha

2019

Page 109

Ha

Ha 3660

ANNEX 2: ESTIMATED INVESTMENT COST (BIRR IN ‘000) REQUIRED TO ADDRESS THE STRATEGIC PILLARS ACROSS THE STRATEGY PLAN PERIOD Strategic pillars

Capacity Building

Market linkage

Input supply

Descriptions Short and long term training Establishment of medium cold storage (500 ton capacity) Establishment of Agro-processing industry Strengthening the existing & establishment of new medium plant tissue culture (three in number) Establishment of practical training centers Recruitment of experts (120 per year) Establishing fruit & vegetable market centers (two per year) Advocating horticultural products to national & world markets Promotion of urban agriculture Strengthening the existing nursery Establishment of new nursery (one nursery per year) sites Preparation of planting materials Establishment of vegetable seed multiplication centers (one per year) Strengthening farmers` seed producers and marketing cooperatives Total

ANRS Horticulture Development Strategy

Strategic plan period 2017 2018 10,000.00 11,500.00 3,000.00 3,500.00

2015 7,000.00 2,000.00

2016 8,500.00 2,500.00

2019 13,000.00 4,000.00

Total 50,000.00 15,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

25,000.00

5,000.00

10,000.00

40,000.00

45,000.00

50,000.00

150,000.00

10,000.00 600.00 6,000.00

12,000.00 600.00 7,000.00

14,000.00 600.00 8,000.00

16,000.00 600.00 9,000.00

18,000.00 600.00 10,000.00

70,000.00 3,000.00 40,000.00

5,000.00

5,500.00

6,000.00

6,500.00

7,000.00

30,000.00

2,000.00 5,000.00 15,000.00

3,000.00 6,000.00 17,000.00

4,000.00 7,000.00 19,000.00

5,000.00 8,000.00 21,000.00

6,000.00 9,000.00 23,000.00

20,000.00 35,000.00 95,000.00

25,000.00 15,000.00

28,000.00 16,000.00

31,000.00 17,000.00

34,000.00 18,000.00

37,000.00 19,000.00

155,000.00 85,000.00

5,000.00

6,000.00

7,000.00

8,000.00

9,000.00

35,000.00

105,600.00

126,100.00

171,600.00 192,100.00 212,600.00

808,000.00

Page 110

ANNEX 3: LIST OF KEY INFORMANTS AND EXPERTS No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Key Informants Sintayehu Misker Tesfaye Mengistu Daniel… Jibriel Ahmed Yenesew Awoke Zelalm Tibelechi Atenafu Tegegne Alemu Yihenew Yeshaneh Kassahun Hunegnaw Ato Abera Welelaw Zenebe Tedla Sewbesew Tadesse Tiru Feleke Desalew Fentie Tilahun Mulugeta Desalegn Biresaw Yilikal Wubet Abdu Muhedin Tewachew Abebe Sisay Damtie Kegne Bailie Wale Birhanu Legese Jember Getnet Asnake

Affiliation ANRS Bureau of Agriculture ANRS Bureau of Agriculture Regional Investment Promotion Agency W. Gojjam Zone Agriculture Depart. W. Gojjam Zone Agriculture Depart. W. Gojjam Zone Agriculture Depart. W. Gojjam Zone Agriculture Depart. W. Gojjam Zone Agriculture Depart. W. Gojjam Zone Agriculture Depart. Jabitehnan Woreda Agriculture Office Jabitehnan Woreda Agriculture Office Jabitehnan Woreda Agriculture Office Jabitehnan Woreda Agriculture Office Jabitehnan Woreda Agriculture Office Finoteselam Agricultural Research Sub-Center Mecha Woreda Agriculture Office Mecha Woreda Agriculture Office Mecha Woreda Agriculture Office Mecha Woreda Agriculture Office Koga Irrigation Project S. Gonder Zone Agriculture Depart. S. Gonder Zone Agriculture Depart. S. Gonder Zone Agriculture Depart. S. Gonder Zone Agriculture Depart. Farta Woreda Agriculture Office

ANRS Horticulture Development Strategy

Position Horticulture Expert Irrigation Agronomy Expert Expert Deputy Head Agricultural Extension Work Process Owner Horticulture & Irrigation Water Use Work Process Owner Irrigation water management expert Horticulture post-harvest extension expert Extension Expert Head Horticulture & Irrigation Water Use Work Process Owner Agricultural Input Supply Work Process Owner Cooperative Promotion Expert Agricultural Input Supply & Distribution Expert Sub-Centre Head Horticulture & Irrigation Water Use Work Process Owner Horticulture Irrigation expert Horticulture Irrigation Expert Agricultural Input & Credit Supply Expert Cooperative & Marketing expert Head Horticulture Irrigation expert Agricultural Input Supply & Distribution Coordinator Horticulture Irrigation expert Deputy Head Page 111

No 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Key Informants Birkie Tsega Anley Goshu Temesgen Birhanu Abebe Bezie Tsegaye Temesgen Getahun Belay Bayu Teshome Abate Tiku Andualem Ayalew Debebe Admasu Yirga Negash Abrham Tsegaye Birhanu Mulu Jemal Mohamed Shiferaw Mekonen

Affiliation Farta Woreda Agriculture Office Farta Woreda Agriculture Office Lay Gayint Woreda Agriculture Office Lay Gayint Woreda Agriculture Office N. Wollo Zone Agriculture Department N. Wollo Zone Agriculture Department Habru Woreda Agriculture Office Habru Woreda Agriculture Office Habru Woreda Agriculture Office S. Wollo Zone Agriculture Department S. Wollo Zone Agriculture Department S. Wollo Zone Agriculture Department Kalu Woreda Agriculture Office Kalu Woreda Agriculture Office Kalu Woreda Agriculture Office

ANRS Horticulture Development Strategy

Position Horticulture & Irrigation Water Use Work Process Owner Agricultural Input Supply & Distribution Work Process Owner

Head Agricultural Input Supply & Distribution Work Process Owner

Deputy Head Agricultural Input Supply & Distribution Coordinator Head Horticulture & Irrigation Water Use Work Process Owner Horticulture Irrigation expert Head Horticulture & Irrigation Coordinator Agricultural Input Supply & Distribution Coordinator Head (Representative) Horticulture & Irrigation Water Use Work Process Owner Agricultural Input Supply & Distribution Expert

Page 112

ANNEX 4: LIST OF FOCUS GROUP DISCUSSION PARTICIPANTS

No

Focus Group Discussion 1: Jabitehnan Woreda Focus group discussants Affiliation

Position

1 2 3 4 5 6 7 8 9 10 11 12 13

Alelegn Wondem Alemu Abate Bitew Alamerew Mihret Alehegn Aschalew Fikadu Gijon Yenealem Yitatyeh Hailu Minlargeh Engda Haimanot Nega Tadifie Getaneh Abebe Mirete Simeneh Addis Zelalem Ayalew

Kebele Chairman Chairman of Kebele WUA Kebele Social Justice Office Secretary Chairman of Kebele Social Justice Irrigation user Irrigation user Irrigation user Irrigation user Irrigation user Head, Kebele Gender Office Chairman of the cooperative Secretary of the cooperative Casher of the cooperative

No

Focus Group Discussion 2: Mecha Woreda Focus group discussants Affiliation

Position

1 2 3 4 5 6

Simeneh Fente Sharew Metaferia Gobeze Metaferia Awule Metaferia Melaku Endalew Yayeh Addis

Member of Kebele administration Member of Kebele administration Member of Kebele administration Member of Mecha Woreda Council Chair of Kebele Land Administration Office Irrigation user

Jibat Enkokma Kebele Jibat Enkokma Kebele Jibat Enkokma Kebele Jibat Enkokma Kebele Jibat Enkokma Kebele Jibat Enkokma Kebele Jibat Enkokma Kebele Jibat Enkokma Kebele Jibat Enkokma Kebele Jibat Enkokma Kebele Yashenifal Irrigation Development & Marketing Cooperative Yashenifal Irrigation Development & Marketing Cooperative Yashenifal Irrigation Development & Marketing Cooperative

Enamirit Kebele Enamirit Kebele Enamirit Kebele Enamirit Kebele Enamirit Kebele Enamirit Kebele

ANRS Horticulture Development Strategy

Page 113

7

Getu Degif

Enamirit Kebele

Chair of Kebele administration

Focus Group Discussion 3: Kalu Woreda No Focus group discussants

Affiliation

Position

1 2 3 4 5 6 7 8 9 10 11

Ahimed Hussein Ali Endris Hussein Mohammed Shek Mohammed Aliyu Seid Ali Hussein Ebrahim Asfawu Tayitu Hussein Ali Zemu Abidu Aregashi Beshir Hassen Ebrahim Muhe Endris Hasen Hussein Amanu

034 (Miawa) Kebele 034 (Miawa) Kebele 034 (Miawa) Kebele 034 (Miawa) Kebele 034 (Miawa) Kebele 034 (Miawa) Kebele 034 (Miawa) Kebele 034 (Miawa) Kebele 034 (Miawa) Kebele 034 (Miawa) Kebele 034 (Miawa) Kebele

Chairman, Kebele Administrative Head, Kebele Council Irrigation user farmer Irrigation user farmer Irrigation user farmer Females` Development Team Member Females` Development Team Member Females` Development Team Member Chairman, Youth Irrigation Users’ Team Irrigation user Irrigation user

No

Focus Group Discussion 4: Habru Woreda Focus group discussants Affiliation

Position

1 2 3 4 5 6

Ahimed Siraji Seid Nega Mohammed Husien Alemu Zewdu Degu Yimam Desu Nurye

WUA secretary WUA monitoring committee member Irrigation user Irrigation user WUA team leader WUA monitoring committee member

04 (Anito)Kebele 04 (Anito)Kebele 04 (Anito)Kebele 04 (Anito)Kebele 04 (Anito)Kebele 04 (Anito)Kebele

ANRS Horticulture Development Strategy

Page 114

7 8 9

Moge Tegegne Musa Mohammed Zewdu Abebaw

04 (Anito)Kebele 04 (Anito)Kebele 04 (Anito)Kebele

No 1 2 3 4 5 6 7

Focus Group Discussion 5: Lay Gayint Woreda Focus group discussants Affiliation Desitaw Asires 09 kebele, Farmers’ Irrigation Association Abraraw Sitotawu 09 kebele, Farmers’ Irrigation Association Worku Alebachew 09 kebele, Farmers’ Irrigation Association Ewunetu Mengiste 09 kebele, Farmers’ Irrigation Association Mulate Getinet 09 kebele, Farmers’ Irrigation Association Biru Alebachew 09 kebele, Farmers’ Irrigation Association Getachew Gesese 09 kebele, Farmers’ Irrigation Association

Position Chairman of the association Executive committee member Casher of the association Irrigation user Irrigation user Irrigation user Irrigation user

No 1 2 3 4 5 6 7

Focus Group Discussion 6: Farta Woreda Focus group discussants Affiliation Marew Abitew Awuzet kebele Mulat Tariko Awuzet kebele Biset Nega Awuzet kebele Afwork Molla Awuzet kebele Nega Kassaw Awuzet kebele Adaney Birhan Awuzet kebele Wasie Fila Awuzet kebele

Position Irrigation user Irrigation user Irrigation user Irrigation user Irrigation user Irrigation user Irrigation user

ANRS Horticulture Development Strategy

WUA secretary Irrigation user Irrigation user

Page 115

ANNEX 5: PROFILE OF CONSULTANTS No 1

Name Melkamu Alemayehu

2

Fentahun Tesafa

3

Solomon Bizuayehu

4

Belayneh Ayele

Qualification PhD in Horticulture Pathology; M.Sc. in Horticulture M.Sc. in Development Economics; B.Sc. in Agricultural Economics M.Sc. in Agricultural Economic; Mph in Economics; BSc in Natural Resources Economics & Management PhD in Forest Ecology; M.Sc. in Environmental Science

ANRS Horticulture Development Strategy

Affiliation Bahir Dar University, College of Agriculture & Environmental Sciences Bahir Dar University, College of Agriculture & Environmental Sciences Bahir Dar University, College of Agriculture & Environmental Sciences Bahir Dar University, College of Agriculture & Environmental Sciences

Page 116