AMHARA NATIONAL REGIONAL STATE BUREAU OF TRADE AND …

Consultant: Institute for Economic Research (IER), Bahir Dar University P.O.Box 79 Tele +251-582-202025 e-mail: [email protected] website: www.bdu.edu.et

NEED ASSESSMENT OF MARKET INFORMATION

SERVICE PROVISION AND PLAN OF ACTION IN THE

AMHARA REGION

AMHARA NATIONAL REGIONAL STATE BUREAU OF TRADE AND TRANSPORT

AUGUST, 2014 BAHIR DAR, ETHIOPIA

AMHARA NATIONAL REGIONAL STATE BUREAU OF TRADE AND

TRANSPORT

Need Assessment of Market Information Service Provision

and Plan of Action in the Amhara Region

Consultant: Institute for Economic Research (IER), Bahir Dar University P.O.Box 79 Tele +251-582-202025 e-mail: [email protected] website: www.bdu.edu.et

Consulting Members

Dr Theodros Bekafa Project Coordinator and Contributor

Dr Daregot Berihun Project team leader, and MIS Economist

Aschalew Degoma Marketing Specialist

Surafel Melak MIS Economist

Amare Kasaw ICT Specialist and Engineer

Getinet Mammo ICT Specialist and Software Engineer

Tesfye Melaku Contributor

Contents

01. GENERAL SUMMARY .................................................................................................. 1

PART I: SITUATION AND NEED ASSESSMENT OF MARKET INFORMATION . 12

1. Introduction ....................................................................................................................... 13

1.1. Background .................................................................................................................. 13

1.2. Rationale for market information systems ................................................................... 15

1.3. Objectives of the study................................................................................................. 17

1.4. Data and methodology ................................................................................................. 18

2. Review of the horticulture market value chain .............................................................. 20

2.1. Horticultural production, availability, and quality ....................................................... 20

2.2. Horticultural crops production and marketing opportunities and challenges .............. 22

2.2.1. Production opportunities and challenges .............................................................. 22

2.2.2. Marketing opportunities and challenges ............................................................... 25

3. Assessment of regional and national market information system and services .......... 26

3.1. Organizational set up, work system and stakeholders of the market information in

Amhara Region ................................................................................................................... 26

3.2. Evaluation of the existing regional market information delivery ................................ 28

3.3. National and International best experiences of MIS and services ............................... 34

3.3.1. National best experiences ..................................................................................... 34

3.3.2. International best experiences ............................................................................... 39

3.4. Assessment and evaluation of the existing ICT and human resources deployment for

MIS service in the Amhara region ...................................................................................... 40

3.4.1. Regional level situation of ICT and human resources .......................................... 40

3.4.2. Assessment of existing regional level ICT for MIS.............................................. 40

Amhara National Regional State Bureau of Trade and Transport

Need Assessment Report of Market Information Service Provision and Plan of Action in The Amhara Region

3.4.2.4. Farmer‘s technological skill ............................................................................... 43

3.4.2.5. Existing human resource at regional and Woreda level..................................... 44

4. Major findings of the need assessment............................................................................ 46

4.1. Current market information provision and utilization by user groups ......................... 46

4.1.1. Farmers market information utilization and perception of the service ................. 47

4.1.2. Traders and brokers MI utilization and perception of the service ........................ 48

4.2. Observed problems on market information utilization and delivery ........................... 50

4.3. Identified needs for horticultural market information and potential roles ................... 56

4.3.1. Market information needs by user groups ............................................................ 57

5. Conclusion, recommendations and the way forward .................................................... 67

5.1. Conclusion ................................................................................................................... 67

5.2. Recommendations and the way forward ...................................................................... 68

PART II: PLAN OF ACTION FOR MARKET INFORMATION SERVICE

PROVISION .......................................................................................................................... 72

1. Intervention Actions and Plan for Market Information Service Provision................. 73

1.1. Objective of the plan .................................................................................................... 73

2. Proposed intervention actions and action plan .............................................................. 73

2.1. Objectives of the five key result areas ......................................................................... 74

2.2. Identified immediate key result areas and proposed activities plan ............................ 74

2.3. Proposed implementation plan ..................................................................................... 76

2.4. Implementation strategies and modalities .................................................................... 83

2.4.1. Implementation strategies ..................................................................................... 83

2.4.2. Market information collection, processing and dissemination design and strategy

......................................................................................................................................... 84

2.4.2. Budget and Cost Estimates ................................................................................... 86


Need Assessment Report of Market Information Service Provision and Plan of Action in The Amhara Region

2.4.3. Monitoring and Evaluation ................................................................................... 88

2.4.4. Opportunities and threats of the plan and its implementation .............................. 88

3. Proposed ICT, System Design and bid document .......................................................... 90

3.1. MIS Modeling and Design ........................................................................................... 91

3.1.1 Role and Responsibilities of Each Unit ................................................................. 91

3.1.2. Types of Information Flow in the Link ................................................................. 94

3.2. ICT-based MIS System Layout ................................................................................. 100

3.3. High Level System Description ................................................................................. 101

3.4. System Deployment and Implementation .................................................................. 102

3.4.1. Required Infrastructures...................................................................................... 102

3.5. Technical Bid Document for System Implementation ............................................... 105

3.6. ICT Implementation Action Plan Strategy .............................................................. 113

PART III: ANNEXES......................................................................................................... 118

1. Literature consulted........................................................................................................ 119

2: List of people contacted .................................................................................................. 120

Acronyms

AgroBIG Agriculture Business Induced Growth in Amhara region

ANRS Amhara National Regional State

BoA Bureau of Agriculture

BoFED Bureau of Finance and Economic Development

BoTT Bureau of Trade and Transport

CSA Central Statistical Authority

ECX Ethiopia Commodity Exchange

FGD Focus Group Discussion

GDP Gross Domestic Product

GTP Growth and Transformation Plan

ICT Information-Communication-Technology

ICT Information Communication Technology

IMIS Integrated Market Information System

IVR Interactive Voice Response

KII Key Informant Interview

LCD Liquid Crystal Display

MI Marketing Information

MIS Marketing Information System

MIS Market Information system

MoARD Ministry of Agriculture and Rural Development

SMS Short Message Service

TOR Terms Of Reference

VPN Virtual Private Network

XML eXtensible Markup Language


Need Assessment of Market Information Service Provision and Plan of Action in Amhara Region Page 1

01. GENERAL SUMMARY

Background

Market information plays an important role in the growth and development of the horticulture

industry. An efficient functioning of any marketing system is supported by a market

information system (MIS) that allows free flow of information along and across the

marketing chain. The existence of such systems facilitates informed decision making among

the various market players. Cognizant to such roles of MIS, the Bureau of Trade and

Transport of the Amhara region is working hard to support smallholder agribusiness

development based on horticulture value chain particularly in the irrigated areas. Sensible of

this goal, BoTT looked for a need assessment study, which is keen for identifying a

marketing information system i.e. a system that includes how marketing data are formally

gathered, analyzed, and disseminated to user groups in accordance with their informational

needs in regular basis through ICT tools. This horticultural market information system needs

assessment study is undertaken to attain the requisite of BoTT for an enhanced MIS through

following integrated objectives.

Objectives, methodology, and tasks accomplished

Upon the MIS need of BoTT, the overall objective of the study was; to conduct the situation

and needs assessment and analyze the state of the current market information service delivery

and make recommendations for possible actions. Through the actions, various value chain

actors will have timely information on production, marketing, price information on inputs and

outputs, where and when to sell their products and at what quality and standards. This MI

needs assessment study was largely based on primary data and information sourced through

rapid appraisal method conducted from Mach, 2014- April 2014. Secondary data including

the value chain of horticultural crops and the related marketing information system were also

compiled and used in this study.

The methodology used in undertaking this market information needs assessment was

primarily a qualitative type and a mix of methodological approaches including desk review,

in-depth key informant interviews, focus group discussions, observation, and experts‘

panel of discussion. Within these methods, to gain a better understanding of the needs of

market information and related systems, a study was undertaken following the market chains



of horticultural crops of Mecha and Fogera Woredas. Moreover, value chain actors such as

producer farmers, traders, brokers, and consumers were approached through the designed

methodologies.

Based on the objectives and following the stated methodology, this study undertook situation

and needs assessment on; horticulture market value chain, existing regional and national

market information system and services, evaluate the existing regional market information

delivery and the existing ICT and human resources deployment, and gather the best national

and international experiences of market information system and services. Specifically, major

findings of the market information systems uses, opportunities and challenges, and need

assessment of all user groups was worked out which reflect the current facts of Mecha,

Fogera Wordas‘ user groups and stakeholders involved in the horticultural value chain. All

these served to develop the recommendation of this study and later the action plans of the

MIS project.

Key Findings –Major constraints of the horticulture sector and producer farmers

The results of this study elaborated that there are thousands of households employed in

horticultural production and marketing both in Fogera and Mecha area, and across the market

chains. Nonetheless, it is undergoing significant challenges that are influencing both the

production, storage and marketing. According to the findings, the major horticulture

production constraints identified in Mecha and Fogera areas include but not limited to, crop

production and management constraints, technological and infrastructure constraints,

marketing constraints, institutional constrains. Few of these problems found pertinent are

summarized below.



Identified constraint Identified Overcoming means Relevance to this project

Crop production and management constraints

Weak production base

Low productivity and yield

Poor disease and pest management

Inappropriate harvesting techniques

Poor pre and postharvest handling

Low quality products

No grading and standardization

Provision of regular market information coordinating

with responsible sectoral agencies helps more to reduce

these problems

Can be directly handled by this

project through market information

provision scheme

Poor technological and infrastructure in the horticulture

production, storage and transportation system

Horticultural products preservation infrastructure should

be in place

Needs to be treated by other projects

whose goal is technology provision to

be used for product preservation and

handling

Marketing constraints

Inadequate market development support

Lack of market information

Distrust of middlemen

Provide up-to-date and sufficient market information Can be directly handled by this

project through market information

provision scheme

Institutional constrains

Lack of specialized horticultural extension

services

Weak industry linkages

Inadequate input supply

Weak cooperatives function

Consider sectoral linkages and motivate responsible

stakeholders such as BoA to act on such challenges

Strengthening cooperatives and MIS training

Part of the tasks can be handled by

this project



Existing regional market information system and services with service delivery gaps

and challenges

Regardless of the few MI providers such as the Cooperatives Promotion agency of the

Amhara region who are only involved for their members only, the primary governmental MI

provider is Bureau of Trade and Transport (BoTT). BoTT is the primary source of regional

marketing information system through collecting, processing and disseminating price

information (PI) on 82 major agricultural and non-agricultural commodities from 23 towns of

the region. It has been trying to deliver MI on 83 commodities, in different media like,

printed, IVR, website, and radio based media, every week, or longer as necessary. In this

case, institutional and professional commitment is observed as this service is primarily under

the shoulder of the marketing development core process, which has few staff dedicated to the

service as much as they can. With its sincere efforts of the service delivery, different gaps and

challenges are identified revolving in and out. These gaps and challenges can be summarized

as internal and external, which ultimately affect the whole marketing system of the

horticultural sector.

Those internal are related to the gaps with the organization (BoTT) itself lined up from

Region to Woreda level. Specific internal gaps are;

Organizational lock up

o Existing organizational structure and human resource deployed, is at the

lowest level and contributed to poor delivery of MI

Poor Market information delivery; less accurate and irregular market information

delivery, poor quality and less value adding MI, limited access and incomplete

outreach to the market information due to,

Poor automation and efficiency of the market information system

o The zonal and Woreda offices are not equipped with the required ICT facilities

and equipment

o The rest infrastructure, which were supposed to support, the MIS such as

FTCs are not in a position to serve even the purpose they are built for



o In general, the system hasn‘t proper interface for data encoding, organizing,

reporting and archiving, has limited reporting service, unable to integrate with

other systems, limited future expansion and poorly designed interfaces with

unlicensed page controls. The capacity of the server can be grouped to be poor

o Another component of MIS is Interactive Voice Response (IVR) in which

users call a specific number and request for specific market information using

predefined codes. Most farmers of the two Woreda‘s are unaware of this

system.

o Distorted primary information collection

o Lack of market extension

o Uncoordinated or traditional approach to providing agricultural information

Institutional and legal oriented challenges

o High informal information networks

o Unregulated and extended role of brokers

o Uncoordinated Partnerships and MIS activities

Those external challenges affecting the horticultural marketing are identified to be;

Open and uncontrolled input market

o Both at national and regional levels, the input market is quite unregulated,

non-systematic, and full of endangering the sector due to dreadful national and

regional quarantine scheme

Powerlessness of farm households

o Unlike other crops, horticulture products are perishable and production is

seasonal, and thus farmers are highly exposed to asymmetry of information

pushing them without any bargaining power. The whole effect of this is

making few well off at the expense of the majority.

Users less awareness of MI manifested on

o Lack of awareness on different aspects of marketing information and

extension



o Distorted primary information reporting

o Limited and suspicious use of the MIS

Identified Market information, technology, and human resource needs

Identified Market information needs

Working to overcome or minimizing the stated gaps and challenges should be the priority

task of BoTT and the stakeholders, in order to have a well-functioning of the horticultural

marketing information system. In addition to these actions on the existing situation, newest

consideration of the market information, technology, and human resource needs should also

be considered.

For easily understanding, the market information is divided in two types, which are known to

be frequent and regular(day to day) type market information, and once-in-a-while (every

three or so months) type market information. This market information includes data or

information about:

Regular (day-to-day) type

Horticultural crops sales prices( market selling price of potato, tomato, or onion, from

major market or centres)

Once-in-a-while (every three month) type

Volume and frequency of supply of horticultural crops ( availability of potato,

tomato, or onion, at field level(Fogera and Mecha), on major markets in the nearby,

and other market chains)

o Expected production in some other competitive places and current stocks

o What grade, quality and quantity of a particular commodity was in demand or

available for sale

Production information

o Seed selection



o Input application

o The availability of inputs and the prices of these inputs( prices related to

fertilizer, chemicals, and seed price of potato, tomato, or onion, nearby towns,

major markets)

o Harvesting and handling

o Weather, pest and disease forecasts

o The costs of producing crops such as onion and potato, suited for the particular

area

Horticultural crops complementary information on quality improvement techniques

information (grade, standards, post-harvest handling, processing, storage,

transportation)

Horticultural crops market complementary information - Marketing chain and

marketing availabilities(market preferences, transporters, as well as market situation

and location, potential market channels, payment requirements, packaging, quality

and a whole host of information required by a producer or cooperatives to make a

successful sale

Skills of marketing and understanding and using market and marketing information

Market trends and forecasts of horticultural crops

All these collected data are transformed into improved horticultural market information when

it is processed, analysed, interpreted, and disseminated to users for making production,

marketing, consumption, and policy decisions.



Key market information required by user groups and ways of delivery

Type of information

required Source User Group Frequency Mode of collection Responsible Delivering

Means

Regular (day-to-day) type

Market price information of

potato, onion, tomato

Selected markets such

as Woreta, Merawi,

B/dar, Gondar, Addis

Ababa , Mekele

Farmers,

traders and

brokers,

consumers

Every day Field collectors send to

the center via networked

mobile phone and if not

through email &

telephone calling

BoTT SMS, LCD,

and website

Once-in-a-while (every three or so months) type

Production information

BoA and related

agencies Farmers

Every three

months Specialized experts

collect through

developed formats, and

send via hard and soft

copy

BoA, BoTT IVR, radio,

Extension

officers and

Bulletins

Product quality improvement

information BoA and related

agencies Farmers,

traders and

brokers,

consumers

Every three


collect through



copy

BoA, BoTT IVR, radio,

Extension

officers and

Bulletins

Marketing chain and

marketing availabilities BoTT‘s collection from

value and market chains Farmers,

traders and

brokers

Every three


collect through



copy

BoTT IVR, radio,

and Bulletins



Marketing skill development

and legal information BoTT and related

agencies Farmers,

traders and

brokers

Every three


collect through



copy

BoTT IVR, radio,

Extension

officers and

Bulletins

Market trends and Forecasts

of Horticultural crops

BoTT Cooperatives,

Academic

institutions,

GOs and

NGOs

Every three


collect through



copy

BoTT Website,

Bulletins


Need Assessment of Market Information Service Provision and Plan of Action in The Amhara Region P a g e 10

Identified technology, and human resource needs

Few set of the above information were collected, processed and disseminated by BoTT by

the exiting limited technology and human resources. In order to collect, process, analyse,

interpret, and disseminate the above market information in a well organized manner, new set

of technology for market information or ICT system, and human resource are required. The

newly designed central system to be administered by BoTT resides with four interfaces for

voice, SMS, web and other software systems. All those interfaces access the same database

for latest information. This system is expected to automate fully or partially the market

information processing and analysis. Collected market data should be encoded online,

processed by the system and it will respond to users‘ information needs based on their

interest and context. It comprises of a simple IVR (Interactive Voice Response) with

predefined keys for set of information. Similarly, the SMS interface will be available to

mobile users who need to get information in text form. Web interface will be accessible by

using web-browser like Mozilla Firefox or Internet Explorer. It can also be accessed using

mobile browser. The LCD technology will also be aviled for selected sites of Fogera and

Mecha. In addition, XML interface that uses a web-service technology in order to interact

with other software systems that may exist in BoTT or some other bureaus that need market

information will be installed. New organizational step up and human resource is also

proposed to enhance an effective MIS and manipulate the ICT in the Amhara region.

Overall, the findings help to conclude that, there should be actions in place for

recommendations identified including; undertake organizational scale up; develop suitable

market information system model and infrastructure; delivery of day to day and accessible

market information for all value chain actors in horticultural subsector; develop the

horticulture crops value adding facilities; formulate and apply appropriate MIS regulating

system, develop and apply appropriate monitoring and evaluation system. Accordingly, we

conclude this summary by remarking that, in order for BOTT to be the right organization to

satisfy the MI needs from user groups and contribute to the horticulture sector development;

these strategic recommendations suggested should be considered and implemented.



Identified immediate key result areas and proposed activities plan

To realize the MI and MIS full functionality for the study areas in particular and the Amhara

region at large, the subsequent activates are planned for the coming five years. This brief

action plan is designed to start the sector on the long and complex journey that will be

involved in securing its right future. Accordingly, the proposed key result areas for the

coming five years are proposed to be;

Key result area 1: Organizational scale up

Key result area 2: Suitable market information system model and infrastructure

Key result area 3: Day to day and accessible market information delivery for all

value chain actors

Key result area 4: Appropriate MIS regulating systems in place

Key result area 5: Appropriate monitoring and evaluation system in place

Implementation strategies are also drafted for the key areas identified and presented in detail

in the body part and the rest are annexed as part of this document. A total budget of

12850000.00 is calculated for implementation of the stated result areas.



PART I

SITUATION & NEED ASSESSMENT OF

MARKET INFORMATION

PART I: SITUATION AND NEED ASSESSMENT OF MARKET

INFORMATION



1. INTRODUCTION

1.1. Background

Ethiopia is one of the most agrarian countries where the agriculture sector comprises of more

than 80 percent of exports, more than 80 percent of employment, and 45 percent of GDP. In

Ethiopia, more than 80% of the estimated 80 million people (CSA, 2003) depend on

agriculture for their livelihoods (MoRAD, 2005). Thus, the country's economic growth

depends largely on the growth of the agricultural sector, which is characterized by traditional

smallholding and subsistence farming with an average landholding of less than one hectare

(CSA, 2003). Accordingly, the level and speed of economic development in Ethiopia at large

and the livelihoods of many Ethiopians in particular is heavily influenced by sustained

growth in agriculture (WB, 2011).

The same is true in the Amhara region where this study was conducted. In the region, the

economy is predominantly agriculture. The annual contribution by agriculture to Regional

Gross Domestic Product (RGDP) is 59.4 per cent, of which the crop subsector constitutes

41.49 per cent (BoFED, 2014). Thus, in Ethiopia at large and in Amhara region in

particularly, smallholders‘ crop production is by far the most dominant sub-sector continuing

to be the sources of livelihoods of many millions of people.

In the crop sub sector, horticulture is one of the areas where many Ethiopian farmers are

involved in. The Horticulture agriculture in Ethiopia, according to a generally accepted

definition, includes the range of fruits, and vegetables and spices that are grown locally and

sold to the final consumer mostly as a raw product than at various stages of processed

conditions.

The horticulture agriculture is one of the areas with greatest opportunity and challenge in

Ethiopia and the Amhara region. The country‘s environmental conditions are highly

favorable for many horticultural crops, vegetable species, and seed production. Moreover,

yield and diversity of these crops is increasing due to the development of modern irrigation

schemes. Horticultural crops are also relatively water-efficient, contribute significantly

diversification in production, and are sources of much needed nutrients for the population.



Besides, horticulture is land and labor intensive sector, which is an advantage for poor

farmers. Cottage industry, which process horticultural products, generates income for women

and families. With the existence of these opportunities, horticulture becomes a source of

livelihood for many Ethiopians.

While these are the aforementioned opportunities in the agriculture sector in general and

horticulture in particular, there are numerous challenges, which need an immediate action.

The small-scale farmers use traditional inputs and practices of rain-fed farming, which results

in low yields. In addition to low input utilization, agricultural production is highly

susceptible to adverse weather conditions that affect the quantity of surplus supplied to the

market. Some studies indicate that even in time of good harvest, the average marketable

surplus is not more than 28% of the total production (MoARD, 2005). Even this limited

amount of marketable surplus can reach the market place through a long chain of

intermediaries who unnecessarily increase the marketing cost and increasing consumer price.

This situation again has a negative impact on both the income of the producers and welfare of

the consumers, which creates a situation of inefficient agricultural marketing system. Market

inefficiency in return aggravates the poverty status of poor households since the poor does

not produce enough ((SID-Consult, 2008).

With long time recognition of most of the problems explained, the market problem at large

and lack of accurate and relevant information-communication-technology (ICT) supported

market information in particular are focused very recently. These days, lack of accurate and

relevant market information has been identified as a major obstacle in efforts to improve the

agricultural sectors of African countries. Yet very few African farmers have access to such

information (Ferris S., 2004). Information and communication have always mattered in

agriculture. Ever since people have grown crops, raised livestock, and caught fish, they have

sought exchange of information from one another (WB, 2011). A lack of market information

and poor marketing channels prevents growers from recognizing or taking advantage of local

and regional opportunities. ICT based Agricultural market information remains to be one of

the lacking resource input in the small holder farmers, traders, processors, consumers,

investors, policymakers, researchers and other interested actors which are involved in the

agricultural value chains to act and make well-informed decisions on how to add value.



1.2. Rationale for market information systems

The Government of Ethiopia aspires transition from subsistence level to commercial farming.

The Government also believes that the transformation of smallholder farmers and success of

agricultural development depends through, among other things on the existence of an

efficient marketing system. Hence, the Government has placed considerable emphasis on

market and marketing issues such as the market information, aimed at enabling smallholder‘s

secure reasonable share of benefit from the value adding effect of local, national, and global

agricultural marketing system.

Market information plays an important role in the growth and development of the

horticulture industry. An efficient functioning of any marketing system is supported by a

market information system (MIS) that allows free flow of information along and across the

marketing chain. The existence of such systems facilitates informed decision making among

the various market players. One of the important pre-requisites to cultivating the competitive

edge of marketing is provision of market information services.

Marketing information system as defined by Kotler and Armstrong (2012) consists of people

and procedures for assessing information needs, developing the needed information, and

helping decision makers use the information to generate and validate actionable customer and

market insights. With the mix of its ingredients, such as use of technologies and

communication media; structure and design components for information collection, analysis,

and dissemination; markets and content coverage; types of users; and their information needs

and their locality, MIS has components for collecting, analyzing, and disseminating

information, and the main purpose is to empower the information users for thier decision

making.

Agricultural market information is essential for farmers who wish to become fully market

orientated and ensure that their production is in line with market demand. The availability of

reliable market information can help farmers to reduce the risks associated with marketing,

decide where to sell their produce, check whether or not the prices they are offered are in line

with market prices, decide whether or not to store, grow produce ―out of season‖ or grow

different products. Reliable market information also improves market transparency and



farmers‘ bargaining power. Farmers are interested in market information on such as product

prices, price trends, and buyers for their products. Farmers can use market information in

several ways. Current or immediate, information can be used first to decide what to produce

and to negotiate with buyers or traders, to decide whether or not to go to a market and, in

some cases, to decide which market to supply (Shepherd, 1995).

Access to reliable market information also helps farmers become better managers by

assisting them in planning their production to meet market demand and negotiate prices on a

more bargaining power with wholesalers and retailers. Wholesalers and retailers also derive

benefits from improved market information with regard to procurement, marketing, and

distribution. Improved information allows traders to move agricultural inputs from surplus to

deficit areas and make financial decisions about maintaining stock supply (Shepherd, 1997).

ICT based market information tends to reduce the risks and lower the transaction costs of

farmers and other actors participating in the agricultural value chains. These efficiency gains

can lead to increased participation in the agricultural value chains and greater stability of

prices and supply/demand. More efficient and transparent agricultural markets benefit all of

the value chain actors (growers, traders, investors, policymakers, processors and consumers)

and can favorably improve the agro-business management across the value chain. Over all,

ICT supported market information can be regarded as a public good, particularly where there

are numerous small farmers who are unable to pay for information. The availability of timely

and accurate information to all interested parties is therefore essential, whether it be provided

by the government or by the private sector.

The producing farmers, traders, brokers, and consumers in the Amhara region and

particularly those in the study area are among the mentioned groups who need market

information for improving their livelihoods. In response to these needs, there is an attempt to

provide market information through different media by Bureau of Trade and Transport

(BoTT). Despite BoTT is attempting to provide market information through different media,

their market information services have repeatedly proven to be unsustainable and where they

have endured, they have often failed to provide commercially useful advice, confining

themselves to the gathering of, frequently unused, data. As a result, BoTT with the support of



AgroBIG initiated the market information need assessment, which is a critical input, and step

as a solution to all MIS related challenges. The need assessment is needed to promote the

rural marketing sector in Amhara region. Hence, the establishment of a well-established MIS

will play its own role in the Region‘s effort to promote agricultural led economic growth and

development.

1.3. Objectives of the study

The overall objective of the study includes the following;

Assess current state of horticultural market information services and make

recommendations so that various value chain actors get timely information on

production, marketing, price, inputs and outputs, where and when to sell their

products and at what quality and standards.

The specific objectives of the study are;

Identify gaps/opportunities in the current market information system and intelligence

specifically in Amhara region and in the country at large;

Identify best practices of market information system in agricultural value chains;

Suggest recommendations or possible action oriented solutions for the selected value

chains (onions and potatoes) in Koga and Fogera areas;

Design market information and intelligence service delivery system and prepare

tender document;

Draw lessons to be replicated to other similar irrigation schemes and value chains;

Develop action plan including budget requirements for the implementation of the

identified intervention and possible support for Agro-BIG; and

Develop ToT material based on identified needs on MIS



1.4. Data and methodology

By and large the assessment was made based on primary data and information sourced

through rapid appraisal method conducted from Mach, 2014- April 2014. Secondary data

including the value chain of horticultural crops and related marketing information system

were also collected and used. A mix of methodological approaches including desk review, in-

depth key informant interviews, focus group discussions, observation, and experts‘ panel

of discussion were employed.

To gain a better understanding of the needs of market information and related systems, value

chain actors such as farmers, traders, brokers, and consumers were identified and discussed.

Hence, at farmer level 2 Woredas of the Amhara region ( Mecha and Fogera) were focused.

In these Woredas, six farmers level FGD were undertaken participating 35 farmers (7

female). For reaching traders, brokers, and consumers through key informant interview, four

places were visited. These include, Merawi, Bikolo, Bahir Dar, Woreta, and Gondar. In these

market chain places 15 KII were undertaken. Within the key informant interview 10 traders,

2 Brokers, and 3 consumers were targeted. For addressing MI data at stakeholders‘ level, KII

was also undertaken at experts‘ level. Accordingly, 26 KII were undertaken, which involve

informants from Woreda to Federal level. Along with these tasks, experts observation was

undertaken in order triangulate the information delivered by the informants and the facts on

the ground. The data collection areas are showed in Fig1. Over all more than 75 people were

involved in this study.

Data collection was also targeted on regional level horticulture and MIS dealing

organizations such as BOTT, Cooperatives, BoA, Amhara Seed enterprise, AGRO-BIG,

EthioTelecom, INSA Bahir Dar branch, and Amhara Mass Media Agency which were

considered as major actors of a horticulture production and market information service.

Interviews were also conducted with National level MIS best practicing organization found

in Addis Ababa, to share their best experience of MI delivery and the MIS functionality.

These include, ECX, Ethiopian Horticultural Agency, and Agricultural Transformation

Agency.



Data from interviews and group discussions were recorded in notebooks except for a small

number of tape-recorded interviews. The data obtained both through interviews and focus

group discussions were corroborated together for triangulation. More specifically, the

information and data gathered from different sources was triangulated and analysed to form

the final report. Since the data was primarily of qualitative type, we used thematic analysis.

The themes were developed based on the extant literature reviews. In the process of

assimilating data in to themes, the raw data were broken down into manageable forms of

marketing information system.

Figure 1: Woredas surveyed in FGD and KII



2. REVIEW OF THE HORTICULTURE MARKET VALUE CHAIN

2.1. Horticultural production, availability, and quality

Horticulture is a specialized form of farming that demands a fairly wet climate, good soils,

relatively low temperatures and a consistent water supply throughout the year (Muir, 1994).

Ethiopia is endowed with such favorable climate for horticulture crops production and the

lion share of the product comes from the smallholder producers. According to MOARD

(2005), about 99% of the area allocated to horticulture production is cultivated by

smallholders, which produced 428,752 tons of fruits and 2,107,292 tons of vegetables. The

total share of smallholders' product during 2003 was 97% of the national supply. Similarly,

in 2004 about 45,0392ha of land was used for vegetable and fruit production, which is 0.05%

of the total area under cultivation.

Like the national status, the Amhara region has huge hectares of land suitable for the

horticulture production both through natural rainfall and irrigation. For example, horticultural

production in Mecha is entirely located in Koga irrigable farms, which is about eight

kilometers away from Merawi town. In Fogera, likewise, it is produced in irrigable patches

of Gumara River, around Woreta town. These production sites are located, along the highway

asphalt roads that connect the Woreda towns to Bahir Dar, Gondar, Debere Tabor, and Addis

Ababa.

While horticulture farming is found to be

a major element of the farming system,

and a major source of cash income for the

households in the survey Woredas, the

production system and product handling is

still unsatisfactory. The production system

of most of the farmers contacted in the

FGD is found to be irregular in farm field

tillage, seed use, chemical use, and

harvesting technique.

Onion Seed production, Fogera



The most worrying is the farmers‘ practices happening in Mecha area vegetable production.

Most of the farmers are not fully aware how to harvest quality onions, at least by stopping

watering a couple of days before harvest.

The local traders contacted during the KII, explained that one of the most pressing issue is

that farmers are not aware or ready to

work towards quality and a standardized

product handling. Little sorting, grading,

and cleaning of produce is taken place at

the farm level. Poor processing, cleaning,

and packaging facilities all limit the ability

for horticultural farmers of Mecha and

Fogera supply competent products to the

market unlike farmers of Shewa Robit,

Adama, and Zewai, who created market

chain in most places of the Amhara

Region, including Mecha and Fogera area.

Despite Fogera is better than Mecha in

quality of production, it is not yet as

quality as the other regions of Ethiopia. Traders in Woreta also complain, farmers affect the

quality of onion by deliberately watering it while harvesting seeking to increase the weight

and measure at the expense of poor quality. Farmers are also less aware of the damage they

create while they dig out the crops under the soil.

Such malpractices, which are happening knowingly, or unknowingly warns that a continuous

and skill oriented agricultural extension services are required in order to help producers

increase the quality and quantity of their products.

A whole seller and retailer in Bikollo said

“I am involved in trading onions from areas

like Gumara, Shewa robit, Adama, and Zewai,

and potato from Awi Zone and Deberemarkos

area, while Koga products are available in 5

km distance. My reason is Koga farmers’ onion

is full of water, poor quality and perishes

within few days or even a day. In such

circumstances, I will never decide to trade the

poor quality products, if I decide to do so I will

go to loss immediately.” I remark that farmers

are less involved towards quality, which in one

way or another is affecting their own market. “



2.2. Horticultural crops production and marketing opportunities and challenges

2.2.1. Production opportunities and challenges

In Fogera and Mecha areas, there are thousands of households employed in horticultural

production. This means that, horticultural production provides good opportunity for farmers

to generate income, and manage their livelihoods. Farmers in the study area use horticultural

products for their own consumption as well as for market sale. Following the population

growth; lifestyle changes; and horticultural produce such as onion and potato has always

been part of the people‘s diet in the Amhara region; there looks that growth of domestic

demand for vegetables will continue to be robust for the foreseeable future. These factors are

believed to be opportunities to promote farmers produce more horticultural crops.

The major horticulture production constraints identified in Mecha and Fogera areas include

but not limited to, crop production and management constraints (weak production base, low

productivity and quality, poor disease and pest management, crop quality, inappropriate

harvesting techniques, grading, post-harvest handling poor infrastructure), technological and

infrastructure constraints, marketing constraints (inadequate market development support,

lack of market information, distrust of middlemen), institutional constrains(lack of

specialized horticultural extension services, weak industry linkages, inadequate input

supply).

a) Crop production and management constraints

Weak production base: One of the biggest problems facing smallholder horticulture

producers in both Mecha and Fogera is crop production and management constraints. Given

the general crop, production and management constraints observed in smallholder farmers of

Fogera and Mecha, there are further specific challenges such as traditional farming practices

which are affecting the horticultural production.

Poor crop quality: The other constraint in smallholder horticulture producers of the study

area is poor produce quality. Quality standards are mostly determined by the rule of thumb,

irrigation and production methods, pest control, exposure to sun and timely harvesting, seed

selection, and the homogeneity of produce in terms of its size and quality. The small-scale



farmers of Mecha and

Fogera are best explained

on supplying produce

with poor quality. Due to

their low quality products,

consumers demand on

their markets is quite

challenging. This

happened in Mecha,

where traders have little

or no intention to buy

from Mecha producers

due to quality reasons.

Prevalence of disease and pest: Small-scale farmers reported that they are further

constrained by disease and pest due to high costs of getting them. Disease management is

particularly found difficult because farmers are less conversant in prevention and control of

disease. Lack of proper training, limited access to chemicals, cost and their inappropriate use,

poses problems. Furthermore, farmers often resort to shortcuts, which may have devastating

effects on consumers‘ health and the future crop productivity. All we observed and

understood on the field trip implies that both the sellers and farmers are not clear with which

chemical to apply to prevent or cure the disease and pest.

b) Technological and infrastructure constraints

The very nature of horticultural products lends itself for perishability. However, much of this

can be eliminated by planning production in accordance with, the market needs, in-terms of

the vegetable type, and quantities required, and most notably by installing preserving and

processing technologies. Unfortunately, these facilities are not there with the producers of

Mecha and Fogera. If market fails after harvest, the product will be out of use. The

discussants indicated that such a practice is customary in Mecha. The absence of cold houses

and some processing facilities contribute a lot to such problems.

A producer farmer in Mecha said

“With ambition of good market and profit, I planted onion

and potato in my field. Without crosschecking the market

situation, I harvested and took few quintals to the market,

and came back without selling it as there was no one to buy

it, or those who visited me offered me with too cheap price.

These taken were sold with lower price and at substantial

loss. The rest at home, all my produce rotten and I was

subjected to make a compost fertilizer. If the preserving

and technologies were there, all my dreams would have

been true, good sale, good return.”



Poor infrastructure and inadequate transport channels pose great problems for smallholders

who lack means of transport. Particularly, in semi-rainy seasons, it is very difficult to take

their produce to the market, and both broker and traders take this advantage to decrease the

price. Transportation of commodities from the farm to the market is not easy and most is

done on the donkeys back. In this case, the ultimate cost taker is the farmer.

c) Institutional constrains

Lack of specialized horticultural extension services: We understood that there are efforts

to address farmers through agricultural extension. Yet, most respondent farmers argue that

extension experience in the horticultural sector in particular is weak. The staff explained that

they have little direct experience with horticultural crops. In some cases, technical expertise

in some crops is unavailable. Particularly very few development agents are skilled in pest,

disease or seed variety identification. There were also farmers who complain on the

extension services quality; that all the right information is not readily available to small-scale

farmers via extension staff.

Inappropriate input supply: Shortage of good quality production inputs particularly

improved seeds is restricting farmers who would like to produce crops in good quantity and

quality. In both Mecha and

Fogera, there is a lack of

appropriate seeds for crops such

as onion, tomato, and potato.

This is further hampered by the

high cost element, such that

farmers can end up using seeds

from their own local seeds.

Given the cost element, the seed

vendors in Woreta, Merawi, or

Bahir Dar, have very little idea

about the seed variety, quality,

and other essential

A producer farmer in Mecha said

“I planned to saw cabbage, went to Merawi seed seller,

and bought grams of seed after the seed seller explained

me that it was the right seed for cabbage. I also showed to

the Development Agent who is the extension officer to

assure if I bought the right one and he explained it was

the right seed. Right after I sawed, I tried to observe the

seedling and got confused on its germination. Waiting for

few days, what I saw was spinach than cabbage. All my

plans of producing cabbage failed and took the spinach

leaves to my oxen”



characteristics. The case below from Mecha can explain how grave the case becomes.

2.2.2. Marketing opportunities and challenges

As some of the production factors such as modern irrigation contribute for large produce, this

large product will subsequently be an opportunities for horticulture marketing increment and

expansion. Thus, the opportunities stem from the production potential. While this supply

driven factor is found to be one of the opportunities, the government support of horticultural

marketing and market linkages through marketing arrangements and appropriate production

systems would boost the near future market. This again will be a driver for living standards

improvement of thousands of value chain actors of horticulture crop farmers, traders, and

transporters operating in Mecha and Fogera, the Amhara region and elsewhere.

Like supply and policy factors, technological availability such as mobile networks in most

places, will facilitate the horticulture crops market information exchange. The road networks

already built and being built are also good opportunities for facilitating the horticultural

marketing.

Even though potentials are observed for market expansion, the challenges are double fold,

discouraging many smallholder farmers, traders and other agents inside the market. More

marketing constraints have been identified from the producers‘ and traders‘ perspectives. The

evidence from FGD, KII, and field observations showed that most of the marketing problems

in producers‘ perspective are found to be:

Imperfect pricing system and associated low prices of the products

Limited market outlets and access to external markets

Lack and inefficiency of marketing institutions safeguarding farmers' interest and

rights over their marketable produces (e.g. Cooperatives)

Lack of coordination among producers to increase their bargaining power,

Poor product handling and packaging

Lack of transparency and market ethics among market actors

General lack of marketing skills

Lack of market information and Imperfect market regulations



3. ASSESSMENT OF REGIONAL AND NATIONAL MARKET

INFORMATION SYSTEM AND SERVICES

The Amhara region‘s modern market information service was established in the late 2010 as

a price monitoring system to collect weekly producer and wholesale prices for agricultural

and none agricultural products. In addition, in 2010 a price information service for few

vegetables particularly, potato, onion and garlic was also established, representing the

horticulture sector.

The existing marketing information system and service was introduced with the

reestablishment of the Bureau of Trade and Transport (BoTT) in 2010 by the Proclamation

No. 176 /2010 of The Amhara National Regional State Executive Organs Re-Establishment

and Determination of their Powers and Duties.

This subsection provides a succinct picture on how the organogram of the market

information system in the region is structured, the assignment of human and availability of

other essential inputs for the purpose, the system installed to validate and/or triangulate the

data, regular monitoring and evaluation system of the market information system and the

nature of sectoral integration and partnership among different stakeholders along the value

chain.

3.1. Organizational set up, work system and stakeholders of the market

information in Amhara Region

Until 2010, the agricultural marketing scheme was administered by the regional Bureau of

Agriculture (BoA). However, this mandate was transferred to the Bureau of Trade and

Transport (BoTT) afterwards and currently BoTT is the prime government body in the

region, which is in charge of establishing an efficient marketing system for both agricultural

and non-agricultural products via its regulatory, control, and support roles. The following

institutions are believed to have roles in the MIS of the region.

The Bureau of Trade and Transport (BoTT): The bureau is responsible to generate

reliable timely market information both for inputs and outputs, disseminate the information

using appropriate technologies, carry out market research for informed decision making, and



craft feasible market linkage for efficiency gain both in production and consumption.

However, it was found out in this study that the major focus of BoTT is in output price

information even with less focus on horticultural products. The study team have understood

that the bureau is collecting, assembling and disseminating 82 major commodities weekly

price information on 23 towns of the region.

The Bureau of Trade and Transport (BoTT): As shortly outlined in the organogram of

BoTT, the bureau is in charge of collecting, processing, analysing and disseminating market

information to different users such as producers, consumers, traders, the government etc. So

far, our observation testifies the bureau is collecting, assembling and disseminating 82 major

commodities weekly price information on 23 towns of the region. It plays a leading role in

the execution and management the regional market information system

The Bureau of Agriculture (BoA): Currently, the bureau has deployed three agricultural

extension workers in each kebele of whom one of them is an expert of horticultural crops.

Partnership with the BoA is a fertile ground to integrate the market information system with

the agricultural extension service

Cooperatives Agency/Cooperatives: Cooperatives do play decisive role in increasing the

collective bargaining power of farm households. Their role in filling missing links both in the

input and output market is considerable. At the regional cooperative promotion agency, there

is a marketing case team that is aiming to collect, organize and disseminate market

information to unions thereby to cooperatives. Weekly price information on cereals is

collected, assembled and disseminated to lower level cooperatives. The geographically

disaggregated price information is used to collect farm gate cereals by cooperative.

Nevertheless, it is proved that cooperatives do have no role in the horticulture market

although the Koga cooperatives union has a facilitating role when growers of onion, tomato

and potato face price shock last year. The union is one of the main signatories with the

Agricultural Seed Enterprise on behalf of farmers. However, in the future, cooperatives and

unions are potential players and key stakeholders of the market information system. In this

regard they could serve as 1) a home base for the establishment of information



centres/kiosks, 2) Agents to transfer market information to and fro 3) stabilizing entities

when price shock faces in the short run.

3.2. Evaluation of the existing regional market information delivery

Given the organizational set up, working system and MIS of the horticulture sector scheme in

operation, findings from the in-depth interview of different groups and field observation

showed there are strength and weakness while undertaking the MI delivery through the

existing MIS.

Strength and Opportunities

Despite many constraints are observed, there are found a valuable strength of the BoTT on

market information service delivery. Of all first, it is the first and primary regional and

governmental organization who is trying delivering MI on 83 commodities, in various forms

like, printed, IVR, website, and radio based media, every week, or longer as necessary. In

this case, institutional and professional commitment is observed as this service is primarily

under the shoulder of the marketing development core process, which has few staff dedicated

to the service as much as they can. The regional government and the BoTT‘s management

have also showed politically committed to establish an effective MIS scheme. With such

available strength, there are also observable opportunities to install an effective MIS scheme

for horticultural products in the region. These include:

Committed and Educable producers: farmers are aware that modern agricultural

practices can benefit them better. There is also a clear demand to adopt feasible

technologies, workable agronomic practices and produce market oriented agricultural

products. What is lacking is supply side of the market information scheme.

Growing market for both potato and onion: Unlike the previous years, on the side

of the producer, there is a clear demand to adopt feasible technologies, workable

agronomic practices and produce market oriented agricultural products. What is

lacking is supply side of the market information scheme.



Established agricultural extension service: In the region, information collected

from the Bureau of Agriculture (BoA) shows that currently there are three

development agents assigned at kebele level of which one is an expert of horticulture.

Such an inbuilt institute helps to incorporate marketing information on horticulture

commodities in the extension services along with production aspects to the farmers.

Established institutes: The market information system involves a number of actors

along the value chain. Although, some of them like producers‘ cooperatives/unions

and consumer societies are practically outsiders in the current horticulture value chain

and anatomy of the MIS, it would be easier to make them participate actively.

Good understanding of the problem: This time, there is a good understanding of

the magnitude and impact of the problem by all actors among and outside the chain.

This is a step, which goes at least half way to find solution.

Institutional commitment: Despite its limitations, the regional government is

politically committed to establish an effective MIS scheme. There are already

attempts and practices that need improvement and advancement.

Better information communication technology facilities: The expansion of mobile

network and the increase per capita holding of mobile phones, the availability of local

FM, short waved and radio education programs, LCD technologies and internet

networking are promising facilities to expand an effective MIS.

Observed critical challenges and gaps

As was presented above, the market development work process has three core and strategic

activities: market information, research coupled with training provision, and promotion and

marketing linkage. A structure is laid down to the Woreda and major towns‘ level, which

coordinates these processes. Given such foundations of the MIS service delivery, the critical

questions which should be answered include: Does the existing organizational set up allow

smooth going of the activities? Is the system reliable? How are different stakeholders in the

chain integrated? Generally, how effective is the current MIS of the region?



Degree of automation determines efficiency of the market information system. Availability

of computers on per capita terms at the regional bureau is a good step. Despite a range of

problems and challenges, the bureau processes and generates weekly price information data

using the available ICT equipment. However, the output is far from use. The zonal and

woreda offices are not equipped with the required ICT facilities and equipment. More than

the collection of price information, the mode of transmission of the information to and fro is

proved to be a big challenge. Usually, woreda officers transfer the information via email

whenever there is willingness from the woreda or other body who is in charge of managing

the ICT (woreda net). It looks worthwhile to mention one of the reflections of the Mecha

woreda marketing staffs of trade and transport office.

Here one can note that the

bureau even failed to establish

formal partnership with the key

partners and stakeholders. In

general, it is encircled by

backward and traditional way

of thinking and doing business.

The capacity of the server is

judged to be poor. Attempts

were made to visit the

homepage of the bureau with

three days attempt, but we

could not browse any pages.

.‟.....in previous days, we were begging the woreda

to allow us email the market (price) information to

the region, and successful for few moments.

Nonetheless, today it is not! Because the woreda

said don’t come again....”



The facilities which were supposed to

support, the MIS such as FTCs are not in a

position to serve even the purpose they are

built for. The very good case was observed

in Fogera area of Bebex Kebele

administration. Farmers were asked if they

were served any marketing or any other

trainings and information. All they

answered “… No, No… it is closed every

time and we are not clear what it is built

for”.

The monitoring, evaluation and feedback scheme is not systemic. There is no system in place

to check whether the information arrived is right or not. An informant from the regional

marketing team reported ‟....there is no way to do that (checking and rechecking) except in

extra ordinary cases when we feel there are outliers. What we do is to institutionalize loyalty,

integrity on continuous training programs.‖ In addition, the system fails to install evaluation

and feedback mechanisms to improve efficiency of the service.

Farmers have to be informed about worthiness of alternative crop and non-crop enterprises

ahead of time especially when land preparation begins. Farmer needs comprehensive market

and non-market information about inputs (which input, at what price, where, how etc),

outputs. From field observation and key informant interviews, the consulting team has

learned that:

Input sector (seed and chemicals) information is crucial but nobody offers it.

In effect, farmers access inputs from their own source.

Farmers need of market information about relative profitability their product

before plantation.. Nevertheless, nobody is managing it. Actors worry

independently when shock comes.

Bargaining power of growers of horticultural crops is crippled by both crop

perishability and asymmetry of information. Even if there are producers and

FTC in Bebex KA, Fogera



consumers cooperatives, their role in the horticulture market is invisible. On

the other hand producers and consumers are suffering from falling and higher

prices respectively.

Projected yield data is essential to manage market imbalance ahead of time.

Yet, there is no formal way of contact between BoTT and BoA.

In general, the vicious problem of the farmer requires the active participation of all the key

stockholders outlined above. Without integration, it looks less feasible to solve the problem

in a sustainable way. BoTT is not closely working with its major stakeholders while the task

demands. They are acting very independently with too much duplication of efforts, which

always results in confusion on the side of farmers and traders in both Woreta and Merawi

woredas.

Yet, value chain is not touched at all. What is provided to the user (if some) is price

information mainly collected from retailers and consumers than whole sellers. Retailing price

is subject to substantial fluctuation daily whereas the whole sale price, which we believe

better information for farmer‘s decision making, is relatively less volatile. Once price is

determined at 5: 00 AM it remains stable for a daylong time. Hence, it is recognized that the

current MIS system understood well neither the operation of the market nor the type of useful

price to the ultimate user.

Evidently, pricing of the horticultural produce depends on factors like seasonality and perish

ability and it depends on the demand and supply also. The degree of market imperfection

also matters. The information collected during the survey make certain that all these are

interwoven and ultimately make a deep impact on horticulture marketing of Fogera and

Mecha woredas. The very content of the information provided does not go far from mere

retailing price of the commodities in question. There is no any attempt in the system to

capture actual and projected supply of the produces. In the discussion, producers deemed that

reliable price information is vital. However, knowing the price per se can do nothing to them

unless they know where and for whom to sale their products. Brokers are powerful

middlemen who fully controlled the market information. Almost all of the interviewees are

well convinced and are operationally defeated by the conception that marketing is impossible



without a broker. Thus the formal market information system offered by the BoTT is fully

surrendered by the brokers, traders and their intelligence network in terms of its content and

reliability.

Since these products are almost fully cash crops, production is meant for sale. The

implication is that the nature of market information therefore demands the delivery of a

package of information before land preparation begins. In this regard, we have observed and

documented that production follows the conventional roots. Farmers cultivate their land and

produce their horticultural crops without any information about the market. Various inputs

such as selected seed, insecticides, pesticides, fungicides are purchased from open access

market and applied without any knowledge and reliable information. The discussion made

with all our discussants confirmed that neither the policy context nor the MIS is acting on it.

The existing MIS scheme documents weekly commodity prices than day to day arrivals and

prices and disseminated with traditional approach. This approach is certainly incompatible

with the nature of the market. Major weaknesses observed here are firstly, the information is

not reliable as it truly deviates the market price where market players actually know on the

ground. In effect, two types of disutility have been drawn from what traders, brokers and

farmers reflected. Foremost is that people are reluctant to listen what is released from radio

and followed by a segment of the respondents who do not have the knowledge about it. As

was depicted in the anatomy of the MIS framework above reliability of the price information

puts in question because of the fact that representative price information is not collected from

the true source at the right time nether is segregated. Secondly, while horticultural price is so

volatile on a daily basis, processing and dissemination of weekly price information has no

any use; It therefore end up with untimely and outdated.

The Role of Brokers in the market

The brokers in Mecha and Fogera are key actors in the local market information system.

They are fond to be as strong as diamond. They do have a direct contact with whole sellers in

different towns of the country where the products are transacted. Given the price information

of the whole sellers, they have also their own intelligence network confirming the reliability



of the market price set by the whole seller. Our findings ensure that brokers do have

sufficient and reliable information not only about the daily whole sale price but also the

various retailing prices changing over the course of a day.

It was understood that brokers play multiple roles in the current value chain of horticultural

products in Fogera and Mecha woredas. Firstly, growers acquire daily price information via

brokers. Secondly, brokers know where and for whom the farmer can sell its product.

Thirdly, brokers, from their rich experience, know the demand of each major town in terms

of quality of the product. They take the responsibility to difference, sort and grade the yield

according to the need. Hence, they are also quality assurance agents of the whole seller.

Fourthly, in most of the time, payment to the farmer is effective via the broker because they

have already developed in-built mutual trust from both sides of the market. Fifthly, brokers in

Mecha woreda do assist growers in the provision of essential inputs such as selected seed and

other chemicals for prevention and control of crop diseases.

It looks worthy to synthesis the role of the broker in the existing MIS system. The role at

which they play in filling the missing gap of the market such as collection and dissemination

of market information is appreciable. It is not difficult to guess the probable outcome of the

market had brokers been not there? On the other hand, they have already controlled the

market and captured nearly absolute monopoly power. In addition to the seasonality and

perishability of the products, all this in aggregate eroded the bargaining power of the farmer

and is a price taker.

3.3. National and International best experiences of MIS and services

3.3.1. National best experiences

In addition to the desk review of the existing national level MI dealing organizations, the

research team consisting of three members from ICT, MIS, and Radio and Television

development went to Addis Ababa to get national experiences about MIS at national level.

Accordingly, the team visited three organizations, which are believed to work on issues

related to horticulture and marketing information system. The first organization visited by the

team was the Agricultural Transformation Agency (ATA). The agency is mainly focusing on



advisory roles in commercial commodities. It supports farmers with research based advice as

to how to perform agricultural practices including market. However, the experience is not

much related to horticultural MIS. The second institution visited was the Ethiopian

Horticultural Agency (AHA). Like ATA, AHA is focusing on commercial crops such as

floriculture and banana. The agency is using its personnel to advice farmers, to search for

international markets, and to lobby investors to invest in exportable horticultures. Hence, the

experience was not directly related to our purpose.

The only relevant experience was obtained from Ethiopia Commodity Exchange (ECX). It is

the first Ethiopian Authority to practice such modern marketing and to ensure real time

market information dissemination at a country level. The experience obtained can be

classified in to three major parts such as the institutional setup, the MIS operations, and the

ICT utilization.

1) The experiences of the Ethiopia Commodity Exchange (ECX)

a. The institutional setups

ECX is directed by board of directors whose members are comprised of traders, government

officials, and farmers‘ representatives. It has autonomous decisions in its administration to

the extent of devising and implementing market related directives within its operations. It has

a well-organized warehouse around the major crop areas. In each warehouse, the function of

sorting, grading and labelling of the commodities is taken place. It also qualifies and certifies

parties as sellers and buyers of the commodity under its current transactions. The warehouse

assumes ownership after the expertise assures the quality of the product. Hence, ECX has

modern organizational setups together with qualified manpower both at the warehouses and

the centre.

b. MIS services

ECX has a well established database system. Everyday market information is stored and can

be retrieved at any time required. It uses its recent past data as the base for estimating the



current price for commodities. Example today‘s price lies between +/- 5% of yesterday‘s

price.

It also conducts market research on international level and advises exporters to export in

profitable segments of the markets identified. It also interacts with international agencies

doing similar activities. Besides, it tries to enhance the capacity of traders and suppliers

through organizing trainings and workshops. It actually gets the price information in its

disposal where the transaction is taken place. It also disseminates market information through

integrated communication systems. It disseminates through price sticker (LCD), websites,

interactive voice system, internet message and SMS texts to target individuals.

c. ICT support services

The Ethiopian Commodity Exchange (ECX) is partially automated and supported by ICT.

Their database system is connected with branch offices, remote storehouses, LCD displays,

mobile phones and website. Both the market and the MIS are relatively well-structured and

organized with a predefined regulations and information flow. Buyers and sellers, once

agreed on price, will fill up a form, sign and submit to responsible body so that market

information is registered and dispatched through website, mobile and LCD screen.

ECX collect process and diffuse information instantly, daily, weekly, and quarterly. ECX

uses multiple dissemination modes, including electronic display boards (Rural Electronic

Price Ticker (REPT)), its website, national public radio, private FM radios, newspapers,

national and private television, fax, email, telephones (voice), and hand delivery of some

reports and bulletins. For example, prices of the day, the closing price of the previous day,

and the real time coffee price on the New York Board of Trade are displayed on the

electronic billboards within 4 seconds of trade in Amharic and English. In 2009, there were

24 electronic billboards, three of which were in Addis Ababa and 21 in the regions. This

information is also updated on the ECX website instantly and targets all users who can access

the internet. All information collected belongs to ECX.

Daily and weekly reports are disseminated by email, fax, and hand delivered to radio stations

(Radio Ethiopia, Amahara-Region radio, Dire-Dawa FM and other private- sector based



radios), television (Ethiopia Television, Addis TV, and Oromigna TV), newspapers (Addis

Zemen, The Daily Monitor and Ethiopian Herald daily, and Capital and Fortune weekly), and

ECX members. The reports are written in four main languages (Amharic, English, Oromifa,

and Tigregna). Other information, such as market regulations and coffee news is provided at

less frequent intervals through the website, in meetings with ECX members, and in a

quarterly newsletter called Its Coffee Time! More confidential information (e.g., quantities of

inventories and warehouse receipts‘ expiry dates) is disseminated by phone, email, fax, or

placed in members‘ mail boxes. ECX also trains its members through awareness workshops,

posters, brochures, and by posting materials on its website on how to trade on the commodity

exchange, how to interpret and use market information such as prices and on grades and

standards of coffee.

In terms of ICT, Ethiopia Commodity Exchange VSAT to connect the trading floor with the

200 remote plasma display installations. Despite Commodity Exchange was planning to use

WoredaNet infrastructure to connect Ethiopia Commodity Exchange‘s head office in Addis

Ababa with the 200 remote sites, they found it unreliable like those are also unreliable in

Mecha and Fogera woredas of the Amhara region. In addition to the 200 remote plasma

display sites, Ethiopia Commodity Exchange is also planning to have 20 remote electronic

trading centers in different parts of the country. . These centers are equipped with computers

and high-speed Internet connection. Via the Internet farmers/traders have the possibility to

get access to live market information. In fact, through the electronic trading centers, users

will be allowed to place orders to their brokers as well.

Overall, the experience found in ECX is summarized to be an automated marketing and

market information. All transactions of buying/selling are made by using automated system

that is accessible through the internet. Well-organized data center has been established to

store and manage market information centrally. Several ICT experts are working to maintain

and administer the automated MIS. Commodity suppliers across the country deliver their

product to warehouses and acquire quality grade from experts in that particular branch office.

Once the product is delivered and graded, it will be registered into the central system for sale.

This information is displayed to buyers for bid via LCD displays.



The winning buyer will fill up a form, sign and submit to confirm the agreement. Then, the

buyer is expected to transfer the money through bank and collect the product from the

warehouse. All those activities are recorded and managed by the online system. This enables

suppliers and branch office workers to follow-up all transactions and market information

right away. Daily transactions are summarized and prices are presented to public by using

LCD displays, website, and IVR

Despite the experience of ECX is on non-perciable crops, some of the practices of ECX can

be adapted by BoTT. Hence, the best practices, which BoTT can adapt from ECX, are the

automation and possibility of collecting, processing and delivering a day to day information.

BoTT can make it happen as long as there will be product collection centers, particularly

through cooperatives, devotion on infrastructure development and deploying and training the

required human resources with appropriate incentives.

d) Lessons Learned from the ECX experience

The following lessons are learned from the ECX experience, which is presumed to be

important for our MIS need assessment study.

1. Day to day information can be accessed and disseminated with the help of ICT

2. Historical data can be used to forecast the future prices. And hence, database

management is part of MIS

Delivery,

Transfer

Transaction,

Administration Central System

Warehouse Branch office

Interaction of warehouses and branch offices with central system



3. Storage and cooler can facilitate the marketing system in addition to protecting the

products from theft and spoilage.

4. Capacity building for both the implementers and the producers is important

5. Cooperatives sophistication and adaptation to modern marketing is possible and

essential through integration

3.3.2. International best experiences

India

Since the 1990s India experienced a boom in the horticulture development sector. The

problem of marketing was solved through the development of supermarkets and effected

contract farming both of which impacted significantly on the way in which marketing takes

place. This strategy had significant contribution to give growers market information on

predicted price of their produce, where and for whom to sale their product. In addition to

considerably reducing market uncertainties, the strategy helped farmers to produces better

quality products as per the demand of the supermarkets. Adapting the experience may help to

establish a useful market linkage between urban supermarkets, consumer societies and the

producers which may ensure mutual benefit for all.

Sri Lanka and Kenya

In Sri Lanka, research findings show that the private sector played a major role in production

and marketing while the State sector played a supportive role in facilitating them and for the

improvement of the living standards of the farmer population. The Market Information

System was completely based on private sector participation Gunatilke (2003). Similarly in

Kenya, the traditional approach to providing agricultural information through public

extension services, didn‘t work effectively and has collapsed since it was limited by many

administrative and design deficiencies and challenges (CABI, 2004). Currently, the Kenya

Agricultural Commodity Exchange is a private sector that collects, processes, updates and

disseminates market information daily to farmers and other market intermediaries through

the MIS. Market information includes prices of commodities in different markets, and

commodity offers to sell and bids to buy (Mukhebi, 2004). It has a number of components



including ICT kiosks. On the horticulture marketing information system the emerging

contract farming with growing super markets and public retailing outlets has been showing

promising result (Tschirley et al, 2004).

3.4. Assessment and evaluation of the existing ICT and human resources

deployment for MIS service in the Amhara region

3.4.1. Regional level situation of ICT and human resources

Information communication technology (ICT) includes any communication device or

application, encompassing: radio, television, mobile phones, computers and network

hardware and software, satellite systems and so on, as well as the various services and

applications associated with them, such as video-conferencing and distance learning. It is

used to meet information, communication, and knowledge needs of public sectors, farmers,

agribusinesses, governments, and society. ICT based agricultural market information enables

farmers, traders, processors, consumers, investors, policymakers, researchers and other

interested actors involved in the agricultural value chains to act and make well-informed

decisions on how to add value.

Aware of such roles of ICT, the Amhara National regional state BoTT, is currently

employing the ICT, and trying to collect, process, store and disseminate the market

information. While BoTT is equipped with certain level of ICT for the MIS, its well-

functioning and proper service delivery to the user groups is not assessed and evaluated yet.

Thus, this ICT focused assessment and evaluation is presented to identify the available ICT,

its status, strength, and weaknesses for collecting feedbacks in the ICT based Market

Information System modelling and designing of the BoTT in well-integrated manner.

3.4.2. Assessment of existing regional level ICT for MIS

In this infant stage of ICT in the region as well as the country, several public sectors are

introducing ICT in their day-to-day activities in order to provide better services. Market

Information System (MIS), like other public services, can be more effective if it is supported

by ICT. The ICT-supported MIS has been introduced few years ago and going on by BOTT

which provides basic market information. However, this system has been implemented

without a well-structured system and functioning. The system comes with novice idea of



providing market information to farmers and traders in the absence of organized and

structured marketing system. The existing market system is not well-structured in order for it

to be supported by ICT. Moreover, farmers and traders have limited understanding of ICT-

based market information system.

3.4.2.1. Existing network and infrastructure

The bureau currently has network designed for the purpose of providing internet service to

employees. The pros and cons of the existing network ifrastructure are described as follows.

Internet Service: It has a 6mbps internet connective bandwidth which is shared among all

staff. This bandwidth is shared by internet users as well as a server providing market

information. The limited internet connectivity does not have the capacity to provide market

information to users with a reasonable performance.

Servers: There are old servers with limited capacity of processing and storage. Their

capacity is equivalent to today‘s standard desktop computers. There is no any security

device. High performance servers and security mechanism are required to provide efficient

market information system that is accessible across the region.

Internet Gateway: Fiber-optic WAN connectivity has been installed using a small router

with 25Mbps performance. The internet connectivity bandwidth is used by professionals at

Woreda‘s in order to encode market information. All the internet traffic, generated by local

employees of the bureau and MIS users, is processed and forwarded through this device. This

network device has to be replaced with better high-performance devices in order to provide

reliable service.

VPN: There is no Virtual Private Network (VPN) subscription and there is no device

supporting VPN. There is a telephone voice modem for the purpose of IVR with a capacity

of eight independent telephone lines. Currently, only one line is being used which can

accommodate only one caller at a time.

Power Supply: All services are running using direct AC power supply with no UPS or

power generator installed that provides alternate power in case of power interruption. Power



fluctuation, in addition to service interruption, can also affect the lifetime of network devices.

In order to provide uninterrupted and reliable service, power backup is mandatory for any

online enterprise system.

3.4.2.2. Existing MIS Database

The existing MIS database system is a web-based system that can be accessed from

Woreda‘s and from within the bureau by market analysts. Some of the drawbacks of the

existing MIS are described below.

Accessibility: It is accessible only using computers connected to internet. It is not

accessible by mobile phones.

Multimedia Support: The web-based database does not support voice or video

communication.

Compatibility: The database system runs on Windows environment.

Functionality: The database lacks basic functionalities that are required by business

processes of MIS. For example, market information encoded by professionals at the

Woreda‘s needs to be re-encoded again by market analysts. Market information analysis is

processed manually and fed to the system by experts. Dissemination of market information is

made through the website as separate file attachment. Analyzed market information is

handed over to the web-admin and is uploaded to website. It does not consider location or

context of user interested in market information. There is no way for farmers to get support

or more information from the central database on specific issues; and it is impossible to give

feedback on the information provided.

Integration: The database system is not designed in such a way that it can be integrated with

other systems like LCD display or radio or some other software. Therefore, it is simply

being used as means of data exchange between Woreda‘s and BOTT. Some staff members

have even commented that email attachment is better to use. Because email allows custom

data format, faster communication with Woreda‘s, reliable in case of failure of the database

system, does not need prior knowledge of the database system and so on.



In general, the system doesn‘t have proper interface for data encoding, organizing, reporting

and archiving, has limited reporting service, unable to integrate with other systems, limited

future expansion and poorly designed interfaces with unlicensed page controls.

Existing IVR: Another component of MIS is Interactive Voice Response (IVR) in which

users call a specific number and request for specific market information using predefined

codes. Most farmers of the two Woreda‘s are unaware of this system. There is no Virtual

Private Network (VPN) subscription and there is no device supporting VPN. There is a

telephone voice modem for the purpose of IVR with a capacity of eight telephone lines.

Currently, only one line is being used which can accommodate only one caller. There is no

multiplexer and only eight telephone lines are come take in to the office out-of which only

one is active.

3.4.2.3. ICT infrastructure in Selected Woredas:

In order to identify the existing ICT infrastructure in the selected Woreda‘s, the consulting

team have discussed with Ethio-Telecom rural wireless experts. Hence, we understood that

there are good telecommunication services that allow us to expand both mobile and web

based technologies up-to the farmers‘ destination. The only problem that we observed is the

electricity supply that will be solved by using solar power technology. The rest, such as

information Kiosks are not in place. In this case, this study could not exploit the advantage

from it, as other countries such as Kenya are doing. The FTCs are not found as they were

assumed to serve for market information purpose. Hence, more effort is required to make

them MIS and technological center.

3.4.2.4. Farmer’s technological skill

From the field level observation, in Mecha and Fogera, still now, most of them do not have

any knowledge on the existing MIS System. However, most of the farmers have the capacity

and technical skill level to understand and utilize mobile based and LCD based technologies.

Hence, if the system provides market information specified above in Amharic via mobile or

LCD, the farmers are interested and ready to use this service. Further, we have understood

that there are at least one mobile per two farmer families. Hence, the device would not be the

constraint to access information.



3.4.2.5. Existing human resource at regional and Woreda level

ICT-supported MIS is expected to have database and application software, which need

professional administrators. In this field visit, it has been observed that there are no ICT

professions with MIS background or experience. This affects the reliability and credibility of

the MIS, which is expected to provide service all the day, throughout the week. At region

level, The ICT experts are employed to manage the internet network and support services to

employees of bureau in general. One of the experts is responsible to manage the network and

website of bureau on top of his daily routine support and maintenance services. They have

limited interaction with the IVR system and no knowledge of detail system architecture.

We have not perceived any organized and structured MIS sector in the Woreda‘s. We have

discussed the MIS experts there and we understood that they simply asked the price once per

week and upload that price information to the system. They do not validate and analyze the

price information. Hence, they could not have any guaranty weather the price they stated is

exact or not.

Hence, to evade these very critical gaps we recommend on establishing well structured MIS

unit in Woreda‘s. This unit should be full-fledged, fully operational, and well structured. For

this, it should be composed of the following requirements:

Should have well organized administrative structure

Should have well organized and full- fledged ICT centers

Should have sufficient well trained and experienced ICT- based MIS market

information specialists.

Should have full-fledged web-based services

Should have strong integration with the policy makers, producers and traders.

Overall, based on the assessment of the existing system, a visit to various regional bureaus

and national organization, the bureau has introduced MIS system with a capability of IVR

and dissemination of summarized weekly market price data that is released through website.

From this study, it has been understood that the existing system does not have proper

interface for data encoding, organizing, reporting and archiving, has limited reporting



service, unable to integrate with other systems, limited future expansion and poorly designed

interfaces with unlicensed page controls. Hence, it is incapable to supply modern and up-to-

date horticultural market information to respective market chain actors. This implies that

design and deployment of a new integrated market information system is required. Therefore,

based on this assessment, it is suggested that a new Integrated Market Information System

(IMIS) should be in place.



4. MAJOR FINDINGS OF THE NEED ASSESSMENT

With due consideration of the roles of MI, BoTT has established MI collection, processing

and dissemination system. This section of the report is therefore built to asses and evaluate

the market information use, needs, availability, and reliability among user groups and

sources, including the BoTT‘s MIS.

4.1. Current market information provision and utilization by user groups

The main organization mandated to provide market information in the Amhara region is

BoTT. There are also few organizations such as the Cooperative Promotion Agency, and

farmers‘ cooperatives, who are trying to provide MI for their members. BoTT, the primary

provider systematically collects price information of major commodities in 32 representative

markets of the region, every week. Most of this information is about weekly selling price of

cereal crops and consumable goods. However, these have little or no information about

horticultural crops. Once the price data is collected, it is semi-processed at Woreda TT

offices, and sent either through hard copies or in soft copies to Zonal offices and to the

regional BoTT. BoTT store and analyze the data to generate required market information.

Thus, the primary provider BoTT, collects and disseminates basic market information mainly

on prices of major commodities, which suits to the urban consuming community. Currently,

BoTT puts a lot of emphasis on the use of radio broadcasts, community notice boards, and

web based systems in information dissemination. There are also few attempts to disseminate

through Interactive Voice Response (IVR) Based System, and Telephone Based Query

System. Nevertheless, most users such as rural farmers, traders, and consumers in most

instances do not know such services

Given the MI services by BoTT, it is noticeable that users require a variety of market

information. For instance, farmers require information on horticultural production and

management extension, harvesting, post-harvest handling and trade of agricultural

produce, commodity market prices, and input prices. Traders also require the provision of

information required in order to sell or make selling-decision, relates to expected production,

current stocks, prevailing prices, regional prices, level of expected imports from other areas.

Despite the requirements by users are such deal of information, market information



utilization by users depends on the availability of the information itself. What are available

by BoTT are those few explained above.

4.1.1. Farmers market information utilization and perception of the service

While there are few horticultural and other market information opportunities for small

farmers, we found that farmers often have very limited or none utilization of the market

information availed by BoTT, or some other agencies such as cooperatives. Most of them

who participated in the FGD have even no or limited idea whether such information is

provided. The utilization of such little opportunities is further hindered by the least quality it

has, and the means of ICT facilities used to communicate. While there are few opportunities

for small farmers and less utilization of such information, the reality is that farmers often

already have a norm of utilization of the locally available rough market information through

their own interpersonal networks, most notably from fellow farmers, and brokers working

with them.

Our findings showed those few farmers who try to utilize MI from BoTT or other sources are

through radio broadcast. Farmers do not know other means such as notice boards, IVR, web-

based, or telephone queries, if they exist for them. We met few farmers who listen to prices

information on the radio are not using the information for production or market decisions.

This is possibly because the prices are not considered credible, or very different from what

they find it through their interpersonal networks. In both the study Woredas, the farmers told

us the previous day's local prices broadcasted are faithfully recorded showing the prices are

not relevant to the local market prices they know. This may also be due to the fact that, BoTT

collects prices only once a week and it is very less likely, this information would be an up-

to-date type in relation to the frequently changing price of horticultural products particularly

onion.

We try to assess their perception on marketing information services from any parties

particularly from BoTT. Most small-scale farmers, however, indicated that they had no idea

on the existence of market information from BoTT or other service providers, and mostly

relied on chatting with fellow farmers and taking risky selling trips. Almost all the farmers

participated in the FGD and aware of the services expressed ignorance of the marketing



information services rendered. Those very few farmers who were familiar with the market

information service also expressed their opinion that the quality and variety of information

received is very shallow; had reservations whether the prices information are true and the

inability to extend the coverage of information to the horticultural crops they are highly

involved in.

The above facts and perceptions suggest that farmers do not or only few use market

information to produce, manage or sale their agricultural products in a well-informed

manner. This situation is particularly serious in the horticulture sector. The market

information is at very insignificant level, where BoTT itself is collecting and providing none

or few horticultural market prices information, as far as the study team discovered.

4.1.2. Traders and brokers MI utilization and perception of the service

All explanations in the farmers‘ side are also observed within the trading group. In practice,

what differs them with farmers is they use mobile cell phones in a better way than farmers

do, to access market information through their own personal networks, most notably brokers

and traders in some other places like, Bahir Dar, Mekele, Gondar, and other value chain

areas.

Traders operating in Bikollo, Merawi, Woreta, Bahir Dar, and Gondar stated that they rarely

listened to price broadcasts; rather, information on market prices is obtained through personal

contact and by telephone contact with traders outside their locality and the brokers. Most of

them did not agree on the correctness of MI broadcasts, because, through direct contacts,

they are as, if not more, up-to-date with prices than are the radio broadcasts. Even if a trader

does not make daily visits to the market, others do and there appears to be considerable

exchange of information among traders. Many traders also have access to phones, enabling

them to easily check prices with terminal wholesalers. It is thus not surprising that we found

few traders or collectors who admitted to listening to price broadcasts on the radio or to

consulting the price notice boards, which BoTT is posting the MI at the public notice boards.

Even if few traders listen to prices, they always tend to check them through other sources,

and will not base the price they are prepared to pay to farmers solely on MIS broadcasts.



Several traders complained to us that information on the radio gave farmers a misleading

picture of the situation, because it was inaccurate due to frequent market price fluctuations

even within a day. They are also more worried about the quality of the information.

Overall, due to such perceptions on MI availed from sources such as from BoTT, it is not

common to find traders using the MI availed from BoTT or the radio and TV media. In this

regard, the main sources of MI is those which come from brokers and traders from elsewhere

out of their immediate market areas which is collected through cell phone

The perceptions on the brokers side, is also similar that no concrete information is found if

brokers are using the MI from BoTT or other related sources such as cooperatives. Every

source of information is their personal networks with farmers, traders and wholesalers which

they are attached with. They themselves collect market information from these sources using

their cellphone and make use of it to fix price for farmers, and report the market price

information to traders with different version of the same product and place and day. Most of

the brokers are also highly involved in market intelligence task, which helps them to hide

prices and add them more return.

Generally, the groups contacted are no more relaying on the existing formal sources of

market information, rather all go through their own price information collection through their

own way. This calls, the necessity of reforming and strengthening the existing formal

sources of market information with information and communication technology so as to

provide relevant and scientific information to the farmers, traders, brokers and other stake

holders so as to enable them to make right decisions in their production and

marketing of the horticultural products.

4.1.3 Gender and MI need

The issues raised by the FGD participants seem widely common in the study woredas. Most

of the issues related to MI have been mentioned by both men and women groups showing

that the problems affect both gender groups. Information need for product price, market

demand, where to sell, and general market facilities are common needs by both female and

male participants.



However, information regarding the input price, quality of seed, agricultural knowledge and

skill, knowledge of good agricultural practices, necessary support by DAs which could also

be related to their capacities, horticultural crops pesticides are all the worries of male

participants. This indicates that males are actively involved in the pre-production processes

of the horticultural crops.

4.2. Observed problems on market information utilization and delivery

The lack of market information is found to be one of the major constraints of the stakeholders

of the horticulture sector, particularly smallholder farmers. This represents a significant

impediment to market access especially for smallholder poor farmers; it substantially

increases transaction costs and reduces production and market efficiency.

Most of the user groups of market information suggest that an up-to-date, correct, and

reliable MI is most useful for both short-term decision making (negotiating sales prices and

deciding where to sell) and for future planning (deciding which crop to plant), and how to

harvest it in a profitable manner. Unfortunately, majority of the farmers, traders, and

consumers contacted in the study area stated that utilization of the current official market

information was less for their decision making of production, marketing, and consumption of

the horticultural products. While official market information is vital for the development of

the horticultural sector and the necessary marketing, the reason why it is not utilized, and the

problems related to less utilization should be identified and solved. In this regard, the

following are some of major observed problems of market information delivery and

utilization.

User oriented problems or gaps

Lack of awareness on different aspects of marketing information and extension

Distorted primary information reporting

Limited and suspicious use of the MIS

Service providers oriented problems

Inefficiency in MIS implementation and MI provision



Poor quality and less value adding MI

MIS focused more on market prices information

Less accurate and irregular Market Information Delivery

Inability to disseminate MI to the users on a regular basis

Limited access and incomplete outreach to the market information

Poor access to appropriate and timely information;

Distorted primary information collection

Lack of market extension (awareness on market systems and regulations)

Uncoordinated or traditional approach to providing agricultural information

Institutional and legal oriented problems

High informal information networks

Unregulated role of brokers

Uncoordinated Partnerships and MIS activities

Poor awareness on market information and extension: The problem related with lack of

market extension (awareness on market systems and regulations) is found to be one of the

challenges in the marketing system. By marketing extension we mean making awareness for

different actors in the market about the role of MI, producing with good market outlook and

vision, marketing ethics, respect of rights of the customers and so on.

We found that most of the user groups contacted are very less aware the role of MI for their

business development. When explained about the potential advantages of MI, all were

impressed and eager to access it. The awareness on market information in general was found

to be relatively poor in case of farmers as compared to the traders since the accessibility of

market information in terms of communication systems is very poor in case of farmers. For

those who are aware, the awareness on market information pertains to only prices of few

products.

The farmers do, not know the other important production and marketing parameters like,

post-harvest handlings, grading, and standardization. The same is true for traders. Their



business is managed through common sense and their own personal skills, being less

informed to market information including arrivals, prices, quality/ standardization, area,

prices in reference markets, imports, and exports. Thus, due to poor awareness on market

information the advantages of MI were not realized.

Distorted primary information reporting: the FGD with BOTT, and OTT indicated that

some traders tend to give wrong price information mostly on a lower side as opposed to the

facts obtaining on the ground. Data collectors are then subjected to send this false data to

BoTT and this again is processed and disseminated. Other users are then surprised why such

distorted information is broadcasted. This is believed to contribute to erode the trust and

confidence of users on the MI service of BoTT and other service providers such as

cooperatives.

Poor quality and less value adding MI: Despite MI user groups need up-to-date and quality

information; the market information being broadcasted, is entirely price information, with

poor quality, outdated, and thus would not add value to them. Their main reason to judge this

information is since they found it very different from the information, which they already

know through their business network. Other value adding information (production,

harvesting, post-harvest, and processing, etc.) what they were looking for was not also

included; to provide a complete package containing all the relevant information from

production to marketing of horticultural products. We can then highlight, the need of quality

market information including price, management and harvesting, post-harvest procedures,

processing technologies, government policies (rules, royalties, and taxes), and marketing

techniques for horticultural development process.

Less accurate and irregular market information delivery: Usually, market information

provided by MI providers is criticized to be less accurate, outdated, and irregular. In this

regard, we found that in the study areas user groups do not have fresh market information.

Hence, what users get is usually out dated and inaccurate market information. Often, users

want to know information of specific horticultural crops having specific quality. Usually, the

information broadcasted is too general and provide about few cereal crops such as teff, and

grains. The other challenge is while most respondents require market information at least in



daily basis; the current supply is irregular and goes beyond a week. Thus, the issue of regular

provision at least in daily basis should be considered.

Limited access and incomplete outreach to the market information: Despite, BoTT is

working for widespread access and complete outreach to the market informationthe majority

of users particularly farmers have not yet been exposed or introduced to the MIS services,

and remain vulnerable to unscrupulous middlemen or remain ignorant of the better market

opportunities that exist. Currently, BoTT services are suspended to few users such as the

academic community and those who have internet connection. The rest majority are not even

aware whether the MI services are delivered.

Uncoordinated Partnerships and MIS activities: Although the initiative to commission

and operate a new MIS should be made by a single organization, BoTT, this organization

should, for some of its work, consider itself to be the hub of a wide range of sources of

information and of the means to disseminate information. In addition, clearly, the cost of

commissioning and operating the MIS will have to be met through partnerships with donors

and, perhaps eventually, through the contributions of information recipients. Information

sources could include transport and storage companies, firms offering packaging materials or

other inputs, weather forecasters, banks and other credit providers, government regulatory

departments, other NGOs in this field, organizations offering grants to sector actors, and

most notably horticulture related organizations such as BoA, Cooperatives Agency and the

seed enterprises. These organizations could be linked directly to those seeking the type of

information they have to offer through the web‐site or by including them as contributors to

radio programs targeted at the horticultural sector.

Poor market extension: It is worth mentioning that most farmers are with less awareness on

different aspects of horticulture production, and product handling information. Majority of

the farmers are not aware of market information pertaining to preparation of the produce for

the market by cleaning, drying, sorting, and packing; or primarily on planning and producing

marketable products through good farm practices, seed selection, time of planting, and

harvesting. These all are not exercised due to the lack of marketing extension. Hence, the



market extension activities need to be strengthened to create awareness among farmers

on modern horticultural crops production and marketing.

Unregulated role of brokers: In the study areas and some of the value chain areas such as

Gondar, there is a mix of brokered and unbrokered transactions. In this case, we found mixed

opinions about the role of brokers. The majority of the farmers in both Mecha and Fogera

area sell through brokers largely because they found the system in place and brokers would

normally block them from selling on their own. Most of farmers in the FGD largely indicated

that they were selling at the mercy of the brokers for which they literally had no choice and

failure to negotiate meant they risked losing their produce. With such involvement of

brokers, they found advantages and disadvantages of the existence of brokers. The main

disadvantage of selling through brokers was the lack of transparency in pricing, whereby

brokers get a ‗hidden‘ commission without the knowledge and consent of the farmer. The

farmers who reported receiving market information from the brokers contended that the

information is quite often not reliable, as some brokers would simply entice the farmer to

supply so that the broker can raise some income through the commission he will charge

through selling on behalf of the farmer. The brokers know that once farmers have brought

produce to the market they would sell at whatever price as it becomes very difficult to take

the produce back on account of logistical challenges as well incurring extra costs such that

his/her decision is driven by minimizing loses rather than maximizing returns. The other

disadvantages emphasized were brokers make sales slow due to markup they add, entice

farmers to reduce prices on false account of slow sales, make farmers make losses if they

were dissatisfied by the hidden commission.

Yet a group of farmers and traders believed the presence of brokers is important that they

provide some level of service. Some important roles identified were brokers; provide

security, more easily find customers, sometimes provide some inputs, sometimes provide and

facilitate some credit, provide market information and sometimes assist to pay some costs

such as for transport.

Thus the existence and roles of brokers cannot be blamed, rather there unregulated presence

should be. In this regard, there should be some mechanisms to regulate them to well function



and contribute to the horticultural market development. Concurrent with the above

developments would be the development of a legal and institutional framework under which

brokerage activities at the market can be undertaken to achieve a win-win outcome for all

stakeholders, than in illegal way.

Inefficiency in MIS implementation and MI provision: According to the evaluation

questions raised during the FGD, the existing market information system and service is found

to be inefficient, and accordingly the MI provision to very user group is at infant stage. BoTT

was not in enabling environment to give the range of timely information, which would be

useful for most actors. Price information for horticultural produce ought to be offered daily

whereas; BoTT is delivering only prices for few agricultural crops, which did not consider

horticultural crops in about a week time.

There is also inefficiency in collecting the market information. The BoTT data collectors at

market level typically have difficulty in this role because many traders are suspicious of them

due to tax and other purposes. From the very beginning, information providers are not

oriented that the task is serious. Thus, it will be critical to educate market participants so that

they understand that the information they provide is recorded anonymously, will remain

confidential, and will only be used in aggregation or averaging. Marketing extension for

traders seems to be lacking. Data collectors themselves have lack of skill and the knowledge

of MI, thus they should be trained regularly to maintain quality standards. One of the most

inefficiency areas for BoTT lead MIS‘s is its inability to disseminate data to the users on a

daily basis.

More importantly, BoTT has less Monitoring and supervision mechanism. A manual should

be available for every step of the process and include daily timetables for when information

must be collected, processed, and delivered to the media. Monitoring should be performed at

every step including the actual transmission. Care should be taken to maintain the data

securely with checks and balances to ensure that one person could not manipulate or cook the

data.



4.3. Identified needs for horticultural market information and potential roles

Market information is essential for agricultural development and to improve food security,

particularly for small‐scale producers and traders, who typically have limited access to, and

understanding of market information and analysis. Good market information helps ensure

transparency, competitiveness and the more equitable sharing of benefits between market

participants. Effective market information systems reduce information asymmetries, increase

competitiveness, and improve marketing system efficiencies. For small farmers, this can

help strengthen their bargaining position and improve their understanding of marketing

opportunities and options. For traders, market information can help identify producers and

others traders, expand their business and bargain more efficiently. Good market information

is also an essential ingredient for governments to take appropriate policy decisions in

support of agricultural growth and enhanced food security.

Sensible to the mentioned role, the information need of the target user groups were broadly

identified for the study areas and partly for value chain areas such as Gondar and Bahir Dar.

The Information need assessment exercises were undertaken in the FGD, KII, and detail

discussions with BoTT. Market information with the local context is defined as;

Horticultural market information is defined as that information that any user require, in

order to run the horticultural crops business to produce, process, sale or consume.

For easing the collection, processing and dissemination of market information, it is divided

in two types, which are known to be regular(day to day) type market information, and once-

in-a-while (every three month) type market information. This categorization is based on the

frequency of collection, processing, and dissemination, and urgency of the requirements.

Those MI which needs frequent collection, processing, and dissemination are termed as

regular type market information, and those which needs less frequent collection, processing

and dissemination are termed as once-in-a-while market information. This market

information need according to the user groups are presented bellow.



4.3.1. Market information needs by user groups

4.3.1.1. Producer

1. Product market price information

This information is about prevailing prices of horticultural commodities (Onion

and Potato) in major markets. Thus, horticultural crops sales prices( market

selling price of potato, tomato, or onion, from major market or centers particularly

in Merawi, Woreta, Bahir Dar, Gondar, Deberetabor, Addis Ababa, and Mekele

will be collected, processed and disseminated

If this information is provided, the farmers will be in a position to improve

their bargaining position with traders, know the prevailing market conditions

and decide for themselves how to maximise income, know what crops are on

demand, be protected from being defrauded and be in position to deal with

genuine traders and marketing agents.

2. Production and agronomic information

Farm inputs price information (improved seed varieties, Fertilizer, weed killers

Chemicals pesticides)

Agronomic information focusing on (Crop Selection, Land Preparation, Seed

Selection, Seed Sowing, Irrigation, Crop Growth, Harvesting)

3. Post-harvest product handling Information

4. Production forecasts and market availability Information

5. Business and Marketing skill development

Information on business, marketing, and entrepreneurship skills



4.3.1.2. Traders and cooperatives


This information is about prevailing prices of horticultural commodities (Onion

and Potato) in major markets. Thus, horticultural crops sales prices( market

selling price of potato, tomato, or onion, from major market or centers particularly

in Merawi, Woreta, Bahir Dar, Gondar, Deberetabor, Addis Ababa, and Mekele

will be collected, processed and disseminated. It help traders to make critical

decisions regarding their trade in agricultural commodities.

2. Marketing chain and marketing availabilities information

Horticultural crop varieties, quantities available at the major market and in

major producing areas

information relating to the types of commodities most traded and demanded

3. Market trends and Forecasts of Horticultural crops

Supply-demand trends and forecasts

4. Marketing skill development and legal information

4.3.1.3. Consumers


2. Marketing availabilities information


4.3.1.4. Research and public organizations


2. Price trend analysis.

3. Regional price analysis

4. Market statistical analyses



The small-scale farmers need to have knowledge at least on the prevailing prices on the

market for their decision-making on choice of commodity, cost benefit analysis, and

sustainable production decision. In addition to this, they would also require information on

production, product handling, and input utilization extension with associated cost.

Traders also require information to make a decision as to which types of commodities the

majority of the traders are dealing in, the places where they sell the commodities and the

price, source of supply for the commodities and the price at which the commodity is

procured, the minimum quantities at which they are sold, types and form of transport

available, and transportation costs. Retailers indicated that they are interested in timely

market information on retail market prices for competing established large-scale dealers.

Consumers also require information related to product availability by type and timely market

information on retail market prices.



Table 1: Key information type required by user groups

Information

Source, Mode of

Collection Potential Actors

Frequency And Mode Of

Dissemination

FARMERS

1. Product market Price Information

Market price information of

potato, onion, tomato

Wholesale & retail price will be collected

from three best traders in each major

markets of the value chain [Selected

markets such as Woreta, Merawi, B/dar,

Gondar, Addis Ababa , Mekele]

Smart phones will be used by field staff

to record and send prices

Every day through SMS, LCD

2. Crop Production and agronomic

Information

Farm inputs price information of

improved seed varieties, fertilizer, weed

killers Chemicals pesticides



markets of the value chain

Smart phones will be used to record and

send prices

Every day during the production season

through SMS, LCD



Table 1: Key information type required by user groups……..

Information

Source, Mode of


Frequency And

Mode Of

Dissemination

Seed Selection

Price and quantity needed per acre

Average yield and sprout to sown ratio.

Suitability to particular area and climate.

Water requirement.

Resistance to diseases.

Location of distribution offices for the seed.

Seed Sowing

Appropriate time to sow the seed.

Optimal weather conditions at sowing time.

Best method for the sowing of seeds.

Seed sowing depth.

Irrigation

Critical time for irrigation.

Amount of water to be given to the plants.

Frequency of irrigation.

Crop Growth

Number of plants per unit of area. At times more than optimum

number of seeds sprouts are planted in a given area. Farmers

must reduce density for healthy growth of plants.

Average growth rate of the crop in normal conditions.

Collected from responsible agencies and

sources such as BoA, and organized and

messages are checked by experts before they

are recorded and voice-transmitted

Specialized experts collect through developed

formats, and send via hard and soft copy

Updated Every three

months and diss, via

IVR, radio, Extension

officers and Bulletins




Information

Source, Mode of


Frequency And

Mode Of

Dissemination

Comparison of crop growth rate, leaf size, crop color etc. with

expected growth for given conditions and input.

Interventions needed to maintain expected growth.

Frequency, quantity and method for fertilization.

Proper time, frequency and method for plowing.

Proper time, frequency and method for weeding.

Expected pest and virus attacks, symptoms of such attacks,

precautionary measure that can be taken in advance to avoid

these attacks, immediate actions including pesticide to be used

to kill pests and viruses, quantity of pesticide to be used per

acre, most effective method for pesticide spray, avoid health

issues related to pesticide spray.

Harvesting

Proper time and method for harvesting.

Comparative market rates.

Proper crop storage.

Cost of transportation

Weather information

Rainfall and drought information




Information

Source, Mode of


Frequency And

Mode Of

Dissemination

3. Product quality and quantity improvement information

Information on post-harvest, storage, transport, and handling

technologies

Collected from responsible agencies and

sources such as BoA, and organized and

messages are checked by experts before they

are recorded and voice-transmitted



Updated Every three


IVR, radio, Extension

officers and Bulletins

4. Production forecasts and market availability Information

Yield forecast in own locality and other producing areas

Information relating to the types of commodities most traded and

demanded in major markets

BoTT with BoA, CoA, collect and produce

information



Updated Every three


IVR, ,radio, and

Bulletins

5. Business and Marketing skill development

Information on product standardizing and grading, labeling, and

sanitary requirements

Marketing skill and information related to better price realization

by the farmers

o information such as market fee, market charges, costs,

method of sale, payment, weighment, handling, market

functionaries, market laws, dispute settlement mechanism,

composition of market committees, income and expenditure

handling

o place offers to sell or buy

entrepreneurship skills Information


information



Updated Every three


IVR, ,radio, and

Bulletins




Information

Source, Mode of


Frequency And

Mode Of

Dissemination

TRADERS AND COOPERATIVES

1. Product market Price Information

Market price information of potato, onion, tomato



markets of the value chain [Selected

markets such as Woreta, Merawi, B/dar,

Gondar, Addis Ababa , Mekele]

Smart phones will be used by field staff

to record and send prices

Every day through

SMS, LCD, Web

2. Marketing chain and marketing availabilities information

o Horticultural crop varieties, quantities available at the major

market and in major producing areas

o information relating to the types of commodities most traded

and demanded


information



Updated Every three


IVR, ,radio, and

Bulletins


information relating to the types of commodities most

farmers deal

information relating to the types of commodities most

traders deal

quantities available on major market or in major

producing areas

the places where they can best sell the commodity

Supply-demand trends and forecasts


information



Updated Every three


IVR, ,radio, and

Bulletins




Information

Source, Mode of


Frequency And

Mode Of

Dissemination

4. Marketing skill development and legal information

o marketing costs relating to transport and storage

Information on product standardizing and grading, labeling, and

sanitary requirements

Marketing skill and information related to better price

realization by the farmers

o information such as market fee, market charges, costs,

method of sale, payment, weighment, handling, market

functionaries, market laws, dispute settlement

mechanism, composition of market committees, income

and expenditure handling

o place offers to sell or buy

entrepreneurship skills Information



CONSUMERS

1. Product market price information Similar to Farmers and traders Similar to Farmers and

traders

2. Marketing availabilities information Similar to Farmers and traders Similar to Farmers and

traders

3. Market trends and Forecasts of Horticultural crops Similar to Farmers and traders Similar to Farmers and

traders




Information

Source, Mode of


Frequency And

Mode Of

Dissemination

RESEARCH AND PUBLIC ORGANIZATIONS


2. Price trend analysis.

3. Regional price analysis

4. Market statistical analyses

Similar to traders



5. CONCLUSION, RECOMMENDATIONS AND THE WAY FORWARD

5.1. Conclusion

This situation and needs assessment report has discovered that, on the one hand there are

considerable efforts by BoTT to deliver MI, on the other hand high unmeet MI demand

among the user groups. The services are poor and not accessible to the actual users such as

farmers and traders. At present there is, effectively, no sound MIS in the horticultural sector

operating in the region. This study found that though there is tremendous growth of the

horticulture sector due to irrigation facilities, there are threats of declining due to market

problems. In this regard, the current activities of BoTT on market information collection,

processing, and dissemination could be point of reference for the coming enhanced MI

services delivery.

Both user groups particularly farmers are with high need of market information plus well a

regulated marketing system. On the other hand, successful production and trade of

horticultural crops requires an understanding of the fundamentals of market structure and

function. Knowledge of buyer demands, producer supplies, consumer preferences, and

quality standards are critical to success in highly competitive markets. The binding tool for

this is found to be an up-to-date and clear market information delivery, which focus on

product market price, production, and management information.

Thus, whatever efforts should be in place within the day-to-day activities of BoTT to collect,

process and deliver the required market information by user groups. The tasks should not be

stopped only in MI, but stakeholder partnership should be formed. There should also be

activities to regulate the well-functioning of markets particularly the role of brokers. Regular

monitoring and mentoring of the well functioning of the MIS and markets should also be

undertaken.

We then conclude that BoTT, should be in the front line to fulfil the information demands

through well consideration of the opportunities, challenges and needs of the user groups in

this study; and this services would be best availed if the organization is going to apply the

technologies, designs, and working modalities suggested by this study.



5.2. Recommendations and the way forward

In order for BOTT to be the best organization to satisfy the MI demands from user groups

and contribute to the horticulture sector development, the following strategic

recommendations are suggested as a way forward;

Undertake organizational scale up: During the situation assessments, it is found that the

marketing department is very incapable to handle the MI needs of such bulky user groups‘

demands of every market information in a day-to-day basis. We then suggest, the current

department should be reorganized and updated to an Agency level, by reorganize the BoTT‘s

Marketing department to MIS Agency. Moreover, any government organizations cannot be

as efficient as even ordinary brokers simply because of their hierarchical bureaucracy where

decisions are made in meetings. Thus, the best proposition is outsourcing or at least

establishing an independent authority like ECX whose major responsibility is MIS. Based on

this assumption, the current market chain looks like below; and that independent authority

(MISA) serves as MIS hub which collects information from and disseminates to the market

actors depicted in the diagram.

Through this new established MIS agency and the product and information, flow is designed

in a way to reduce the transaction cost of users and maximize their benefit. In this

recommendation, establishing and strengthening cooperatives is at the very heart of the MIS

infrastructure as individual farmers may not be able to access, disseminate, and doing some

marketing intelligence by themselves. Farmers are not only advised to receive information

from others, they need to have their own MIS. This is only possible through their collective

power (efficient and effective cooperative). Besides, the practices of Kenya, Uganda, and

other successful countries in horticultural marketing indicate that strong cooperatives have

made significant influence in regulating the market and benefiting the farmers as a result.

Similarly, the problems in the study areas and around indicate that farmers have become

powerless in price setting. As a result, cooperatives with continuous capacity building

support are strongly recommended by the study team.



Develop suitable market information system model and infrastructure: Efforts should

be made to develop suitable market information system model and infrastructure, which will

promote the horticulture sector of the Amhara region, particularly in Mecha and Fogera

areas. This new MIS model and infrastructure will be enhanced through; Developing and

enhancing MIS with new system, technology and human resources; Developing a range of

low-cost market information services at the local—Woreda level, and regional levels;

BoTT

MIS Agency

Brokers

Traders

Consumers

Cooperatives

Individual

farmer

Input Suppliers

Suppliers/Facilitators

Diagram 1: Proposed MIS and product flow under the new

MIS Agency

Product flow

MI flow



Building stakeholder partnership; Development of market linkages through formalizing

market linkages and improving the marketing competence of farmers and farmer

organizations; organizing farmers into collective marketing groups to improve their

production and marketing practices; Developing capacity for information collection,

processing, storage and dissemination; and increase partnerships between producers, public

institutions, and industry to facilitate market information exchange and develop capacity.

Delivery of day to day and accessible market information for all value chain actors in

horticultural subsector: Efforts must be made to ensure enhance accessing of day to day

and accessible market information for all value chain actors in Horticultural subsector in the

Amhara region, particularly in Mecha and Fogera areas. This Delivery of day to day and

accessible market information will be enhanced through; Provision of market price

information to consumers by gathering and disseminating information on price premiums for

different varieties of the same horticultural crop; Provision of production and product

management information to consumers by gathering and disseminating Production and

product management information particularly for farmers; through continuous advice and

assistance to extend the harvesting or marketing season using appropriate storage systems,

processing, specific varieties and other techniques; addressing assistance needs to be fully

informed by the market conditions that prevail in the market chains.

Formulate and apply appropriate MIS regulating System: Efforts must be made to

formulate and apply appropriate MIS regulating System to assist the well-functioning of the

MIS and horticultural markets in the Amhara region, particularly in Mecha and Fogera areas.

This regulating system will be functional through; getting farmers to join farmer‘s groups or

associations and thus help them gain the economies of scale for purchasing inputs and

harmonizing production to gain higher prices by collectively marketing their output; making

a serious effort to fill the market information gap; making a move towards more transparent

markets in horticulture by helping people to be aware and report actual traded prices to

information gatherers and reducing the possibility of malpractice due to irregular movement

of brokers; training MIS officers to record the volumes of goods on offer and sold each day

in an ethical manner; working towards improvements in market efficiency and transparency;



organizing a compiled directory of producers, traders, exporters and other categories of

actors.

Develop and apply appropriate monitoring and evaluation system: Efforts must be made

to develop and apply appropriate Monitoring and Evaluation system to assist regulate and

well guide the proper functioning of the roles and responsibilities of the proposed MIS

agency, MIS regulating system, delivery of day to day and accessible market information for

all value chain actors, proposed market information system model and infrastructure. The

application of the Monitoring and Evaluation system will be enhanced through; Regularly

monitor and mentor the proper functioning of the MIS; Undertaking evaluations together

with user groups on the effects of MIS to the Horticulture sector development, and Monitor

and evaluate the utilization and impact of market information and MIS on production, ,

market and an over horticulture sector development.

Promotion of stakeholder partnership and grassroots cooperatives: Cooperatives have

got tremendous roles from international experiences. They are also gateways to private

sector. It is then recommended Promotion of Stakeholder Partnership and grassroots

cooperatives should be emphasized.



PART II

PLAN OF ACTION FOR MARKET

INFORMATION SERVICE PROVISION

PART II: PLAN OF ACTION FOR MARKET INFORMATION

SERVICE PROVISION



1. Intervention Actions and Plan for Market Information Service Provision

Following the findings of the need assessment, market actors require an up-to-date supply of

the market information. Thus, this requirement should be fulfilled with well-developed

market information system, ICT infrastructure, enhanced market linkages, enforcement of

legal and regulatory actions, and a firm monitoring and evaluation system. To convert these

recommendations in practice and let all users benefit from the horticulture development,

intervention actions and an action plan is proposed. This plan has been developed through a

thorough analysis and consideration of problems, opportunities, and needs of MI and the

entire required system for its enhancement. The preparation of this plan was guided by the

BOTT‘s need to pursue its vision, uphold key operational values, and realize its mission. The

plan is developed in such a way that strategic intervention areas/milestones/ are first

identified and they are followed by specific actions, which will help them to be fully

implemented.

1.1. Objective of the plan

The objective of this plan is to pick up key strategic actions and activities, which can help the

BoTT to immediately start acting on building the marketing information system, which will

fulfil the MI necessities of the user groups and stakeholders.

2. Proposed intervention actions and action plan

During the plan period, which in this case is for 5 years, BoTT is suggested to focus on the

above five key result areas following the recommendations of the study. These strategic

themes are:

1. Organizational scale up

2. Suitable market information system model and infrastructure

3. Day to day and accessible market information delivery for all value chain actors

4. Appropriate MIS regulating systems in place

5. Appropriate monitoring and evaluation system in place



2.1. Objectives of the five key result areas

Arising from the above key result areas/strategic themes/, BoTT will pursue five major

objectives, namely:

To undertake organizational scale up to capably handle and manage the mi needs of

such bulky user groups‘ demands of every market information in a day-to-day

basis

To develop suitable market information system model and infrastructure which will

contribute for day to day and accessible market information delivery for all value

chain actors in horticultural subsector

To deliver a day to day and accessible market information for all value chain actors in

horticultural subsector to help them produce well, involve in markets as price

takers, and ultimately develop their livelihoods

To formulate and apply appropriate MIS regulating systems so that every partner in

the horticultural sector move equally for equitable benefit

To develop and apply appropriate monitoring and evaluation system which will guide

all the above objectives reach to their end

2.2. Identified immediate key result areas and proposed activities plan

To realize the MI and MIS fully functional for the study areas in particular and the Amhara

region at large, the subsequent activates are planned for the coming five years. This brief

action plan is designed to start the industry on the long and complex journey that will be

involved in securing its future. The plan is necessarily limited in its scope. This is because a

detailed ―To Do‖ list would rapidly become a straitjacket. Indeed, those charged with

responsibility for following the strategy may well find that specific action or outcome

proposals require modification from the start. These action steps are broad, and will

themselves require further specification in due course.



Key result area 1: Organizational scale up

Reorganized the BoTT‘s Marketing department to an agency level

Determine and implement optimal staffing and infrastructure

Key result area 2: Suitable market information system model and infrastructure

Developing new market information models

o Developed a range of low-cost market information services at the local,

Woreda, and regional levels

Develop and enhance MIS with new system, technology and human resources

o Improve on existing ICT infrastructure and acquire new ICT infrastructure

Build and strengthen stakeholder partnership

Collaborate with other stakeholders in development of physical market infrastructure

Development of market linkages and channels

o Formalizing market linkages for producers and small traders

o Formulate producer-consumer networks through farmer organizations

Develop capacity for information collection, processing, storage and dissemination

Undertake Knowledge Management (KM) and innovation through market research

Key result area 3: Day to day and accessible market information delivery for all value

chain actors

Providing market price information to user groups

o Gather and disseminate information on price premiums for different varieties

of the same horticultural crop, markets, demand, and supply

Providing Production and product management information to consumers

o Gather and disseminate Production and product management information

particularly for farmers

o Provide advice and assistance to extend the harvesting and marketing season

using appropriate storage systems, processing, specific varieties and other

techniques, etc.

Undertake stakeholders capacity building on supplying and accessing MI

Key result area 4: Appropriate MIS regulating systems in place

Advise and help farmers to join farmer‘s groups or associations



making a serious effort to fill the market information gap

A move towards more transparent markets in horticulture

o Help people to be aware and report actual prices to information gatherers

o Reduce the possibility of malpractice due to irregular movement of brokers

Train MIS officers to record the volumes of goods on offer and sold each day in an

ethical manner

Work towards improvements in market efficiency and transparency

organize and compile a directory of producers, traders, exporters and other categories

of actors

Undertake inspection of horticultural produce for conformity

Key result area 5: Appropriate monitoring and evaluation system in place

Establish a monitoring and evaluation unit

Regularly Monitor the proper functioning of the MIS

Undertake evaluations together with user groups on the effects of MIS to the

Horticulture sector development

2.3. Proposed implementation plan

To help achieve the key result area and the associated activities the implementation plans

have been proposed. The implementation plan is provided in Table 1.



Table 2- Proposed implementation plan

Strategic Intervention Activities Y1 Y2 Y3 Y4 Y5 Responsible

1. ORGANIZATIONAL SCALE UP Reorganized the BoTT‘s Marketing

department to an agency level

x BoTT

Determine and implement optimal

staffing and infrastructure

x

2. SUITABLE MARKET INFORMATION SYSTEM

MODEL AND INFRASTRUCTURE

BoTT

1.1. Developing new market information models BoTT

1.1.1. Developed a range of low-cost market

information services at the local—district level,

and regional levels

1.1.1.1. Develop MIS technology and human resources BoTT

Acquire new central and local MIS ICT

infrastructure

Establish regional central MI

collection, processing and

dissemination unit

x

Establish regional marketing center at

Bahir Dar and automate with ICT

x

Establish Woreda town level

information points(2)

x

Establish village level information

points (6)

x



Table 2- Proposed implementation plan……


Procurement of required hardware and software x

Develop and test working system prototype x

Assign the well trained Human resource x

Deployment and capacity Build of

ICT HR

Recruitment and deployment of relevant

personnel to operate the system

x

Training and experience visit of ICT staff x x

2.1.3. Build and strengthen stakeholder

partnership

Draw MOUs and sign contracts with sister

organization stakeholders

x

Collaborate with other stakeholders in

development of physical market infrastructure

x x x x x BoTT and

stakeholders

Undertake regular review of HM efficiency

with stakeholders

x x x x x

2.1.4. Development of market linkages

and channels

Create formalized market linkages for

producers and small traders

x x x x x BoTT and

stakeholders

Formulate producer-consumer networks through

farmer organizations

x x x x

Strengthen Value Chain Linkage x x x x x





2.1.5. Develop capacity for well-functioning

of the newly Developed market information

models

Training and experience visits x x x x x BoTT and

stakeholders

2.1.6. Undertake Knowledge Management

(KM) and innovation through market

researches

Market and MIS research x x x x x BoTT and

stakeholders

Knowledge Management (KM)and sharing x x x x x

Undertake Horticulture market Exhibition x x x x x

3. DAY TO DAY AND ACCESSIBLE

MARKET INFORMATION DELIVERY

FOR ALL VALUE CHAIN ACTORS

BoTT, BoA,

and COPA

3.1 Providing market price information to

user groups

Gather information on price premiums for

different varieties of the same horticultural

crop, markets, demand, and supply every day

at 7 sites

x x x x x

Process information on price premiums for

different varieties of the same horticultural


x x x x x

Disseminate information on price premiums

for different varieties of the same horticultural


to user groups

x x x x x





3.2. Providing Production and product

management information to Producers

Gather Production and product management

information particularly for producer farmers every

2 months

x x x x x

Process and disseminate Production and product

management information particularly for producer

farmers every three months

x x x x x

3.3. Undertake stakeholders capacity

building on supplying and accessing MI

Capacity building activities on supplying MI x x x x

Capacity building activities on using MI x x x x

3.4. Harmonize and integrate

horticulture MIS platform

BoTT and

stakeholders

Enhance/improve data

collection and Processing

Capacity build for data collectors and processors x x x x x

Data Storage and Retrieval Create and Maintain database

x x x x

Establish Promotions and

Feedback Mechanism

Conduct User survey x x x x

Creating awareness through various means(road

shows, media, word of mouth, advertisement,

cinema, association

x x x x

3.5 Develop capacity for information

processing, storage and dissemination

Train and exposure visit of personnel in information

management with the relevant institutions and other

stakeholders

x x x x BoTT and

stakeholders





4. APPROPRIATE MIS

REGULATING SYSTEMS IN

PLACE

BoTT and

stakeholders

4.1. Establish farmer‘s groups or

associations Establish farmer‘s groups or associations x x x x

4.2. Help user groups and organizations

move towards more transparent markets

in horticulture

Establish pilot transparent markets in

horticulture sector

x

Help people to be aware and report actual prices

to information gatherers

x x x x

Reduce the possibility of malpractice due to

irregular movement of brokers

x x x x

4.3. Market Ethics and intelligence

Train MIS officers to record the volumes of

goods on offer and sold each day in an ethical

manner

x x x x

Market Intelligence x x x x

Work towards improvements in market

efficiency and transparency

x x x x

Establish legal system for illegal market

activities

x x x x

Undertake inspection of horticultural produce for

conformity

x x x x





4.4. Market directory and data base Organize and compile a directory of producers,

traders, exporters and other categories of actors

x x

5. APPROPRIATE MONITORING

AND EVALUATION SYSTEM IN

PLACE

BoTT and

stakeholders

5.1. Regularly Monitor and mentor the ,

and periodically evaluate the proper

functioning of the MIS

Establish a monitoring and evaluation unit x x

Regular monitoring of MIS x x x x x

Undertake evaluations together with user groups

on the effects of MIS to the Horticulture sector

development

x x x x x



2.4. Implementation strategies and modalities

2.4.1. Implementation strategies

The necessary and frontline activities suggested and described above will help achieving

each of the above objectives. For achieving the proposed objectives and activities the

following strategies are devised;

1. Since marketing information has been identified as the primary constraints in

development of the horticulture sector, a well-coordinated strategy of collection,

processing, and dissemination system with best ICT has to be followed.

2. Development of marketing infrastructure and market linkages, with appropriate

market intelligence has to be adapted

3. The strategy of leading the MIS through awareness building and capacity building has

to be adapted

4. Stakeholder partnership and the role of private sector involvement has to be well

considered

5. Technical support services at every level particularly to farmers and traders should be

made available to ensure adoption of appropriate crop production, postharvest

management in the horticultural crops production and trading.

6. Legal enforcement and regulated role of brokers should be established and adapted to

help reduce the transaction cost and equitable growth and benefit sharing in the

horticulture sector endeavors

7. Regular monitoring and evaluation should be in place for proper guiding of the MIS

The implementation of the proposed strategies will help the institutional ability and capacity

of the BoTT to enable it builds make to mitigate both external and internal challenges. The

plan implementation will also provide the actual process through which the strategic key

result will be achieved during the plan period. Through operations, the proposed MIS agency



under BoTT will translate the key result areas into reality by developing and implementing

detail specific plans, which will originate from this indicative plan, which are aligned to the

BoTT‘s mandates and responsibilities.

2.4.2. Market information collection, processing and dissemination design and strategy

a) Regular type market information collection, processing and dissemination design and

flow

Markets-1- Woreta

Markets-2—Merawi

Markets-3—Bahir Dar

Markets-4—Gondar

Markets-5—Debre Tabor

Markets-6—Addis Ababa

Markets-7—Mekele

Regular type market

information (eg, price

information)

Collector -1

Collector -2

Collector -3

Collector -4

Collector -5

Collector -6

Collector -7

Raw Regular type market data

Processing and analysis

MIS Agency Unit

MI delivery in day-to-day basis

Producers Traders Consumers

Mecha

Producers

Fogera

Producers

Site 1 Site 2

Site 3

Site 1 Site 2

Site 3



b) Once-in-a-while type market information collection, processing and dissemination

design and flow

Source-1-BoA

Once-in-a-while MI

Collector -1

Raw Once-in-a-while type market information

MI delivery in 3 months interval

Production & product

management handling

info

Input availability & price

Produce availability and

volume

Market situation

&extension

Sources-2- Input sup

Ag& Cooperatives

Sources-3- BoTT

Sources-4- Six Producer

sites from Mecha and

Fogera

Collector -2

Collector -3

Collector -4

Processing and analysis

MIS Agency Unit

Producers Traders Consumers

Mecha

Producers

Fogera

Producers

Site 1 Site 2

Site 3

Site 1 Site 2

Site 3



c) Price data collection format

Market

Name and

code

Product Name

grade, and code

Units Per unit

price-1

Per unit

price-2

Per unit

price-3

Average

selling

price

Min Max Min Max Min Max

Onion Grade-1

Onion Grade-2

Onion Grade-3

Potato Grade-1

Potato Grade-2

Potato Grade-3

2.4.2. Budget and Cost Estimates

Management of resources will be guided by operational rationalization and modernization of

key processes, while cost saving measures, including creating partnerships and strategic

alliances, will be implemented to strengthen the financial resource base. While efforts will be

made to prudently use the available resources in order to realize the stated objectives, the

indicative plan acknowledges that the ability of the Agency to implement its key result areas

depends on the availability of adequate funding. The estimated budget for the

implementation of the activities is about Birr seven million. The estimation is made based on

the best experiences reviewed from, ECX in Ethiopia, other best Horticultural MIS practicing

countries such as Kenya, Indonesia, Bangladesh, and India.

For the coming five years a total budget of Birr 12850000.00 is estimated to accomplish the

planned activities.



Table 3-Five years Budget Estimates for Amhara HMIS Implementation

Activity/objective

Estimated

Total Budget

1. Organizational scale Up 600000.00

2. Acquire new central MIS ICT infrastructure1 9,250,000.00

3. Deployment and capacity Build of ICT HR 500000.00

4. Build and strengthen stakeholder partnership 50000.00

5. Development of market linkages and channels 100000.00

6. Develop capacity for well-functioning of the newly Developed market

information models

200000.00

7. Providing market price information to user groups/collection, processing,

dissemination/

500000.00

8. Providing Production and product management information to

consumers/collection, processing, dissemination/

500000.00

9. Undertake stakeholders capacity building on supplying and accessing MI 200000.00

10. Harmonize and integrate horticulture MIS platform 200000.00

11. Develop capacity for information processing, storage and dissemination 200000.00

12. Market directory and data base 200000.00

13. Monitoring and Evaluation 350000.00

Total 12850000.00

1 Adapted from ICT and system design report



2.4.3. Monitoring and Evaluation

The planning team recognizes the importance of monitoring and evaluation in the

achievement of the plan‘s intended results. Progressive monitoring should be carried out

based on the measurable indicators set out in the implementation matrix. The Agency should

then have a Monitoring and Evaluation Division dedicated to regular monitoring, and this has

been recognized as a key strategic direction. The monitoring system should be that, the

agency should have regular monitoring every three months of the year, and make use of the

results for the enhancement of its MIS activities. There should be also once in a year

evaluation with stakeholders to well guide the MIS and continue with best results.

2.4.4. Opportunities and threats of the plan and its implementation

There are identified possible opportunities and threats that may have their own influence on

either side for the successful implementation of the market information system for

horticultural products in the region.

Opportunities

Established farmers’ cooperatives and unions: In all of the target words, there are

marketing cooperatives and their unions which are working closely with the farmers.

Currently, the marketing intervention of these institutions is limited to the supply some inputs

such as fertilizer, the collection of price information and the purchase of agricultural produce.

These cooperatives, if they are well structured and strengthened shall be considered as good

opportunities for the effectiveness of the proposed MIS scheme.

Emerging consumer societies: These days, there are a number of consumer protection

societies being established. These are believed to be useful marketing actors along the value

chain.

Facilities: There are established Farmers‘ Training Centres(FTCs) in all of the rural kebeles

though at the current state they are not offering the intended service as expected. These

facilities can be used as a place where MIS ICT infrastructure can be established and

disseminated at kebele level.



Reliable network infrastructure: The expansion and penetration of the Ethiotelecom

service is a good opportunity for the viability of the MIS in the region.

Threats

Brokers: Brokers do exhibit special place in the current MI system. They are pillars of the

market information who have controlled the price information, the source and destination of

the commodities. Besides, they are credible actors by both parties who connect buyers and

sellers and also transfer payment for transactions. Hence, unless, the MI scheme gives clear

direction for whom, how and when the farmer can sell its products, offering price

information per se can do little to the farmer. The role of the broker may remain persistent

along the value chain.



3. Proposed ICT, System Design and bid document

The results of the need assessment study shows that the existing system wasn‘t designed

based on predefined market information model. Hence, it has many technical and functional

drawbacks and shortcomings that we have stated in PART I sub section 3.4 of this report.

Further, it is outdated and isn‘t integrated with other ICT based systems in the bureau. Thus

to avoid these problems, this study proposed a new integrated market information system for

the bureau in general and the two Woreda‘s in particular. This new IMIS system will have

the following characteristics:

It will be designed from scratch based on the proposed model in Section 3.1.

bellow

The system will support web, SMS and voice communication for market

information dissemination and delivery.

The system will be full- fledged and fully functional and operational to

disseminate and exchange the specified information stated in Section 3.1.2 bellow

The system can be expanded and upgraded to the specified sites based on capacity

and demand. Thus the office can provide regional, national or global wide market

information delivery.

The system will provide a permanent data storage for long term usage

The system will provide analyzed data reporting

The system will provide online data encoding by using smart-phone or computers

The system will provide market information using multiple interfaces like web,

voice and SMS.

The system will provide market information based on location and context of users



The system will provide a searching to get specific information on market prices,

market price trends, production inputs, supplies and demands.

The system will provide supervision feature for policy makers and administrators

The system will integration with other software systems

The detail system analysis and development strategies are s stated in sub sections below.

3.1. MIS Modeling and Design

To develop this ICT-based MIS that support mobile communication and web based

technologies; first the MIS system should be modeled and designed. Hence, here based on

the need assessment and field visit report analysis, we develop the following MIS layout.

This layout shows all the possible interactions and market chain integrations between the

MIS service provider and other actors in the market.

3.1.1 Role and Responsibilities of Each Unit

For this ICT based agricultural market information design, the assumption for the role and

responsibilities of each block is described below.

Central MIS Agency: This unit is the central database for the specified market information

system. It should contain all the required functionalities, integrated software‘s, hardware‘s

and human resources that we stated in section 4.

District MIS Unit: This unit will be established at Mecha and Fogera worda. It will be the

main building block for the system. It should have well equipped ICT infrastructure that we

stated in section 4. This unit can be installed at the Woreda or at FTC based on the

requirement. This unit will composed of the following human resources.

Information Collectors: They will gather current market price information, agricultural

input demand and supply information, and agricultural product demand and supply

information from the market, producers, consumers and traders as stated in link G, H , L.



ICT Professionals: They will pre-process the data gathered by the collector and upload that

data to the system. The data will include current market price information, agricultural input

demand and supply information, and agricultural product demand and supply information as

stated in link D in the block.

Supporting Sectors: This unit will include agricultural sectors, marketing agencies and

NGO‘s that will support the system, supply rules and regulations, supply agricultural input

and other required high level market information to the system.

Research Institutes: This include universities and other research institutes that will support

the systems in upgrading, maintaining and sustaining as stated in link B



Policy Makers

Central MIS Agency (BoTT)

Traders

Processors Research Institutes

MIS Unit at District/ Worda ( Mecha

and Fogera )

Consumers

Web-based LCD Display Systems (at Mecha and Fogera

Site )

All Concerned Public (at Mecha and

Fogera)

A1 A2

B1

B2

C1

C2

D2 D1

E

F

G1

G2

H1

H2

I

J

Producers

Site 1 Site2

M

L2L1K

The detail market information and other information flow in this MIS link are described in

the following table (Table 1.1).

Diagram 2: MIS Layout

Design



3.1.2. Types of Information Flow in the Link

The types of information that will be exchanged by the different actors in this ICT-based

MIS includes:

Current market price of the selected agricultural products

Detail market information

Agricultural input information

Agricultural product demand and supply information

Agricultural product quality information

Guidance and capacity building information

Rules and regulations

The detail market information and other information flow in this MIS link are described in

the following table.



Table 3: Detail MIS link description

MIS Link or

Path Downlink Communication Information Types

Uplink Communication

Information Types Remark

MIS Link A Link: A1

Information type:

Rules and regulations

Supervision

Detail agricultural input supply information

Capacity building

Feedback and suggestions

Link: A2

Information type:

Detail Market Information

Agricultural Input requirement

Agricultural demand and

supply information

It will include both

the governmental

and NGO

MIS Link B Link: B1

Information type :

Access data


Link: B2

Information type:

Capacity building

Recommend upgrading and

new technology

Support on system security

and sustainability.




Table 3: Detail MIS link description……

MIS Link or




MIS Link C Link: C1

Information type :


Detail demand and supply information

Link: C2

Information type:


Demand request

Quality suggestions

MIS Link D Link: D

Information type :


Detail agricultural input supply and request information.

Technical support information

Capacity building for the unit

Link: D2

Information type:

Upload market information

Upload demand and supply

information

Upload current market price

Upload Agricultural input and

supply request information

MIS Link E Link: E

Information type :


Detail agricultural input supply and request information.

Current market price information.




MIS Link or




MIS Link F Link: D

Information type :


Current market price

MIS Link G Link: G1

Information type :


Detail agricultural supply information.


Link: G2

Information type:

Detail agricultural demand

information

System comments and

feedbacks.

MIS Link H Link: H1

Information type :


Detail agricultural input request information.


Link: H2

Information type:

Detail agricultural demand

information


Detail agricultural input

supply information

System comments and

feedbacks.




MIS Link or




MIS Link I Link: I

Information type :


Detail agricultural input supply information.

Agricultural product quality information.


This link will be

authorized by the

district MIS unit.

All the market

actors will be used

this link

MIS Link J Link: J

Information type :


Detail agricultural input supply information.

Agricultural product quality information.


Virtual link

between the public

and LCD display

MIS Link K Link: K

Information type :



General Announcement.




MIS Link or




MIS Link L Link: L1

Information type :

Detail agricultural input supply information

Detail agricultural product demand information.

Capacity building

Announcement

Link: L2

Information type:

Detail agricultural input

demand information

Agricultural product supply

information


System comments and

feedbacks.

MIS Link M Link M:

Information type:


Announcement


Need Assessment of Market Information Service Provision and Plan of Action in The Amhara Region P a g e

100

MIS Central System

Processors, Consumers, Traders

Producer

s

MIS unit at Mecha & Fogera

Policy Makers

Voice SMS Web

XML

Voice SMS Web

Other Systems

3.2. ICT-based MIS System Layout

There will be a central station in Bahir Dar in BOTT. It will have a datacenter with high

performance network and servers. All software systems and databases will be installed and

managed in this central station. The system will have interfaces for voice, SMS and web-

based communications with clients based on their interest and context. The system will have

an integrated central database for all communications. All market information analysis and

data organization will be handled automatically once the data is encoded by responsible

personnel. The figure below depicts stakeholders of the MIS and their means of

communication. In addition, other systems can easily communicate with MIS through web-

service interface.

Diagram 3: ICT mapping for the MIS Layout in diagram 2.



101

3.3. High Level System Description

The central system resides with four interfaces for voice, SMS, web and other software

systems. All those interfaces access the same database for latest information. This system is

expected to automate fully or partially market information processing and analysis. Collected

market data should be encoded online, processed by the system and gives output to users

based on their interest and context. In general, the system is expected to have the following

functionalities:

Provide a permanent data storage for long term usage

Provide analyzed data reporting

Provide online data encoding by using smart-phone or computers

Provide market information using multiple interfaces like web, voice and SMS.

Provide market information based on location and context of users

Provide a searching to get specific information on market prices, market price trends,

production inputs, supplies and demands.

Provide supervision feature for policy makers and administrators

Integration with other software systems

a. Voice: this interface is accessible using hotline phone calls. It is a simple IVR

(Interactive Voice Response) with predefined keys for set of information. This

interface is most important for farmers who have difficulties in using mobile text

messages. Information provided by this interfaces includes latest market prices,

announcements, whether information, production input information, and some other

important messages. Users of this interface are producers, consumers, traders,

processors, policy makers and MIS units.

b. SMS: this interface is available to mobile users who need to get information in text

form. Like voice interface, information provided by this interfaces includes latest

market prices, announcements, whether information, production input information,

and some other important messages. Users of this interface are producers, consumers,



102

traders, processors, policy makers and MIS units. This interface can also be used to

upload information into the central system by authenticated users.

c. Web: web interface is accessible by using web-browser like Mozilla Firefox or

Internet Explorer. It can also be accessed using mobile browser. This interface can be

used by public to get market information as well as by MIS experts to interact with

database. MIS experts and market data collectors must login to the system through the

web-interface in order to insert latest information, get reports or processed market

data. The public can get daily market prices, supplies and demands in summarized

format.

d. XML: this interface uses a web-service technology in order to interact with other

software systems that may exist in BoTT or some other bureaus that need market

information.

3.4. System Deployment and Implementation

In this section, we have discussed the ICT based MIS deployment and implementation

guidelines and strategies. For this, the required infrastructures, human resources and

implementation strategies are discussed in detail.

3.4.1. Required Infrastructures

A fully function MIS needs to have reliable ICT infrastructure that makes it accessible

anywhere, at any time. Like any other ICT-supported system, it needs to have well-equipped

infrastructure. The central system, which is accessible by several users, has to be powerful in

terms of performance and reliability.

3.4.1.1. Required Software

a. Integrated MIS: a system that includes IVR, SMS, web-based MIS and web-service

which takes daily market information, process the data, archive data and provide

market information based on user demand. This system :

Should be platform-independent



103

Should support portal service

Should be multilingual

Should have live support feature for further information provision

should identify location and context of users

Should provide feedback feature to users

Must be secured

accessible through mobile text, voice and web from anywhere, at any time

b. Database Management System: an enterprise database management that will be used

by the integrated MIS. Enterprise DBMS with long-term storage of data having the

following functionalities:

Support reporting service

Platform independent

Backup capability

Good security

c. Dynamic Website: A website with backend management, role management, portal

integration, interaction with application service and web-service, deployable on any

platform, multilingual support, with interactive services like feedback and live

support mechanisms.

d. System Security: Antivirus and intrusion protection systems for IMIS and computers

at MIS units.

3.4.1.2. Required Hardware

The required infrastructure for the central MIS agency includes:

a. Datacenter: Standard data center with physical security, air conditioning and

sufficient power supply needs to be established.

b. Servers: High performance servers for the database and application software with

backup server are required. Those servers will store data permanently.



104

c. Network Devices: Redundant routing and switching devices are required make the

services available all the time.

d. Broadband Internet: Sufficient internet bandwidth has to be purchased that

accommodates all the services.

e. IVR: Voice modem with standard interface with servers and network devices needs to

be installed to serve voice users. It must have switching capability in order to serve

multiple users at the same time.

f. SMS Modem: A messaging modem and subscription with short code is required at the

center to serve mobile text users. The modem has to have standard interface to servers.

g. Security devices: Data stored on servers must be protected from intruders or viruses

for long term storage. Security device, namely firewall, has to be installed at the

gateway.

h. Power supply: Power backup, like UPS, has to be installed in the datacenter. In

addition, generator is required in case of main power supply failures.

The MIS centers at the two Woreda‘s must be equipped with:

a. LCD display: Outdoor displays that will be mounted at the two Woreda‘s are

required. Those devices will get latest market information from the central system

through one of the computers at the ICT centers.

b. Computers: Computers for market price collectors, MIS experts and network

administrators are required. A computer dedicated to the LCD screen is also required

to retrieve information from central station and update the display.

c. Network: All computers at the ICT centrals must be connected to each other and to

the central system using internet network.



105

d. Smart-Phone: The smart mobile phone will be used to upload and download market

information data by ICT technicians and data collectors.

3.4.1.3. Required Human Resource

Human resource required for the ICT part can be organized in two ways: required at the

Woreda ICT centers and required at central system.

Database administrator: Administrator with BSc degree in IT or Computer science

is required to manage and administer stored data. This person is also responsible to

take backups, make sure service is available and data is secured.

Network administrator: this IT expert is responsible for all communicating devices

including the modems. Network administration requires BSC degree in Information

technology or computer science.

IT Technician: a dedicated IT technician is required at each ICT centers with a

minimum

3.5. Technical Bid Document for System Implementation

This Standard Technical Bidding Document for Procurement of Integrated Market

Information Systems for the specified Woreda‘s in particular and the region in general has

been prepared for use in contracts to design and deployment of the proposed integrated

market information system.

To prepare this technical bid document, we have used the market layout and responding ICT

mapping that are stated in section1.1. and 1.2. Thus, to deploy the complete and full-fledged

systems, the hardware and software infrastructures listed out in the technical specification

table below are required. This document will be used for bidding process as technical

specification for required equipment and systems. For final bidding process some

customization and technical specification revision work will be done by the developer of this

report. It needs the attachment of the general bidding document that is prepared by the

national procurement agency.



Table 4: Bid Document descriptions and budget

Type of

Infrastructure

Functionalities Unit Quant

ity

Estimated

Cost (Birr)

Remark

For

Central

MIS

Center

1. Software’s

IMIS Software type : Integrated Market Information system

Software Description: system that includes IVR, SMS, web-

based MIS and web-service which takes daily market information,

process the data, archive data and provide market information

based on user demand. This system :

should be platform-independent

should support portal service

should be multilingual

should have live support feature for further information

provision

should identify location and context of users

should provide feedback feature to users

must be secured

accessible through mobile text, voice and web from anywhere,

at any time

Support and Warranty: Two Years

Should provide complete User Manual

Training for administrators and end users.

Pcs 1 2,000,000.00



Table 4: Bid Document descriptions and budget……

Type of

Infrastructure


ity

Estimated

Cost (Birr)

Remark

Database

Managem

ent System

Software Type : database management system

Software Description : Enterprise DBMS with long-term

storage of data having the following functionalities:

Support reporting service

Platform independent

Backup capability

Good security



pcs 1 500,000.00

Dynamic

Website

Software Type : Dynamic Website

Description: A website with backend management, role

management, portal integration, interaction with application

service and web-service, deployable on any platform,

multilingual support, with interactive services like feedback

and live support mechanisms.

Support and Warranty: One Years


Training for administrators and end users.

Pcs 1 170,000.00

System

Security

Software Type: Security Software

Software Description: Antivirus and intrusion protection

systems for IMIS and computers at MIS units.



pcs 1 300,000.00




Type of

Infrastructure


ity

Estimated

Cost (Birr)

Remark

B. Hardware’s

Servers Item Type : Servers

Item Description: High performance servers for the database,

application software and backup purposes required.

Those servers will store data permanently.

Should have sufficient slots for additional memory and

storage.

Should have multiple network interface cards

Should extra /redundant power supply unit.



Required Connectors and interfaces

Pcs 3 1,000,000.00

IVR

Modem

Item Type: Interactive voice recognition modem.

Item description: Voice modem with standard interface with

servers and network devices needs to be installed to serve voice

users.

It must have at least 16*1 users switching capability in order

to serve multiple users at the same time.

Compatible with the IMIS software

Should have USB interface to connect it to the server




pcs 1 100,000.00




Type of

Infrastructure


ity

Estimated

Cost (Birr)

Remark

SMS

Modem

Item Type: Short message service modem.

Item description: A messaging modem and subscription with

short code is required at the center to serve mobile text users.

The modem has to have standard interface to servers.

Should have USB interface to connect it to the server




Pcs 1 100,000.00

Standard

Data

Center

Standard data center with physical security, air conditioning

and sufficient and separate power supply, data cable try, rack,

backup power needs to be established.

pcs 1 1,300,000.00

Network

device

Network device that include routers(1), 24- port switches(2),

firewall‘s(1), patch panels(2), twisted pair (cat6) cable, fiber

termination box(1), patch cord cable(48+4), RJ45 connector,

node outlets



pcs 500,000.00

Desktop

Computers

Item type: desktop computer

Item description: desktop computer for advanced processing

purpose

Pcs 10 150,000.00




Type of Infrastructure Functionalities Unit Qua

ntity

Estimated

Cost (Birr)

Rem

ark

For

District

MIS

Unit

A. Software’s

Application

software for

LCD display

data Controller

Software type: Desktop Application

Item Description : desktop application software that interacts with

central system and updates data displayed on the LCD

pcs 1 150,000.00

B. Hardware’s

Desktop

Computers

Item type: desktop computer

Item description: desktop computer for basic office purpose

Pcs 5 75,000.00

Web based LCD

Display System

Item Type: Web based LCD display System

Item description: Outdoor displays that will be mounted at Mecha and

Fogera Woreda‘s are required.

This device will get latest market information from the central system

through web from one of the computers at the ICT centers.

It should be capable and compatible to access web based data from the

central MIS system.

It should also read the data in voice format in parallel.

It should also access SMS data from mobile phone.

It should support Amharic and English language

It should include all the necessary accessories, connecting data and power

cables, fixings, configurations software‘s, standing towers, and other

required accessories to make the system full-fledged and fully functional.

The size of the display should be 2*1 m2




pcs 2 1,000,000.00




Type of

Infrastructure

Functionalities Unit Quantity Estimated

Cost (Birr)

Rem

ark

Network

Switches

Item Type : Internet Switches

Item description: Standard 24 Port switches for the MIS Unit

Pcs 2 40,000.00

Smart

Phones Item type: Smart phone

Item description: The smart mobile phone will be used to

upload and down load market information data for the ICT

technicians and collectors.

It should be smart phone with android operating system

It should support 2G, 3G and 3.5 G Networks or more.

Its android version should be 4.4 or more

Pcs 6 60,000.00

Data

Cables

Item Type: Data cable s

Item Description: twisted pair ( cat 6) data cable for network

interconnection to the center and the display.

It should include RJ45 connector

Meter 100 5,000.00

Electric

Power

cables

Item Type : Electric Power cable

Item description : PVC Sheathed PVC insulated Electric

power cable for the LCD display and other power supply in

the MIS unit

Cable type: Siemens NYY 0.6/1KV or equivalent

It should be 3*2.5 mm2

type

The electric power cable should be from the standard

manufacturing company and should be sufficient enough to

carry single phase power to the signal booster.

Should include compatible interfaces with the signal booster

Meter 100 50,000.00



Type of

Infrastructure

Functionalities Unit Quantity Estimated Cost

(Birr)

Rem

ark

UPS and

Air

Condition

er

Standard Original UPS

Standard Air Conditioner

Pcs 2 1,000,000.00

Physical

Implement

ation

Profession

al Cost

Data Center Implementation:

Standard data center with physical security, air conditioning

and sufficient and separate power supply, data cable try, rack,

backup power needs to be established

Pcs 1 300,000.00

District MIS Unit Physical Implementation:

Layout Modeling and Design

Physical Implementation

Testing

Pcs 1 300,000.00

Training for administrator, end users, officers Pcs 100 150,000.00

TOTAL 9,250,000.00



3.6. ICT Implementation Action Plan Strategy

The detail action plan for this project implementation is outlined in the table below.

Table 5: ICT implementation plan

S.

No

Activities Responsible Offices/Bodies Required

Time2

Required

Budget(Birr)3

As Developer /

Implementer/Su

pplier

As Consultant/ Supervision

1 Software Development and Implementation :

IMIS Software

Dynamic Website

Application software for LCD display data

Controller

Consultant or

bid winner

A team will be formed for

software development

supervision, validation and

accreditation purpose from

AgroBig, BoTT and Bahir Dar

University.

Six

Month

2,320,000.00

2 Buying Other Supporting Software‘s

System Security Software (Antivirus)

Database Management Software (Optional)

The bid winner The technical validation and

accreditation work will be done

by BDU.

BoTT will do the bidding

process

AgroBig will follow up and

supervise the bidding process

Six

Month

800,000.00

2 Here, we assumed the average time required for project implementation.

Most of the tasks will be implemented in parallel. Hence the maximum project

Implementation life time should not be more than eight month 3 Here, we assume the average budget required for project implementation



Table 5: ICT implementation plan…..

S.

No


Time4

Required

Budget(Birr)5

As Developer /

Implementer/Su

pplier


3 Buying Hardware‘s and Network Infrastructures.

Servers

Network device that include routers(1), 24- port

switches(2), firewall‘s(1), patch panels(2),

twisted pair (cat6) cable, fiber termination

box(1), patch cord cable(48+4), RJ45

connector, node outlets devices

IVR Modem

SMS Modem

Desktop Computers

Web based LCD Display System

Smart phones

Data and Power Cables

Air Conditioner

UPS

The bid winner The technical validation and

accreditation work will be

done by BDU.

BoTT will do the bidding

process

AgroBig will follow up and

supervise the bidding process

Six

Month

5,380,000.00






Table 5: ICT implementation plan…….

S.

No


Time6

Required

Budget(Birr)7

As Developer /

Implementer/Su

pplier


3 Data Center Implementation:

Standard data center with physical security, air

conditioning and sufficient and separate power

supply, data cable try, rack, backup power

needs to be established

A team will be

formed from

BoTT and Bahir

Dar University

AgroBig

Two

Month

300,000.00

4 District MIS Unit Physical Implementation:

Layout Modeling and Design

Physical Implementation

Testing

Training for users

A team will be

formed from

BoTT and Bahir

Dar University

AgroBig

3 Month

300,000.00

5 Training for administrator, end users, officers A team will be

formed from

BoTT and Bahir

Dar University

AgroBig 1 Month 150,000.00

TOTAL 9,250,000.00






117

To implement this ICT based MIS, the agency has two possibilities. These strategies are

described as follows:

Direct Contract with Bahir Dar University: In this case, the project can be given directly

to Bahir Dar University. By doing this, the office can implement the project with less cost

and time. The process of bidding and evaluation will be avoided and the time and money

required for this purpose will be removed. Further, the team will be formed from the previous

MIS and IVR system developer and the current proposed system developer group. The

existing system is developed by Bahir Dar University. Further, the University is now

developing other MIS for one service provider in Addis. The University also now developing

many other software‘s for different stakeholders. This makes the University a good candidate

because of the stated experiences. Hence, we can develop full-fledged and fully functional

system with short period of time. Additionally the system sustainability and support will be

effective and timely available due to the closeness and interworking collaboration between

the two organizations.

Open Bidding: The office can made open bid and select the system developer in competitive

bases. But it would be costly, time taking, and even the winner of the bid may not have

enough experience and thus the developed system may not be effective enough as we want

.In this case, BoTT can use Bahir Dar University as a consultant to supervise and manage the

project.



PART III

ANNEXES

PART III: ANNEXES



1. Literature consulted

A. Vadivelu A. and Kiran B.R.(2013). Problems and Prospects of Agricultural Marketing in

India: An Overview. International Journal of Agricultural and Food Science

Universal Research Publications.

Amrutha C.P. 2009. Market information system and its application for Agricultural commodities

in Karnataka state – A case of onion. Ph.D thesis. University of Agricultural

sciences, Dharwad.

Bureau of finance and Economic Development (BoFED). (2014). Development Indicators of

Amhara Region 2011/12. Bahirdar, Ethiopia.

Central Statistical Agency(CSA). 2003. Agricultural sample survey: reports for 2001 / 2002.

Addis Ababa: Central Statistical Agency.

Ferris S. and P Robbins.(2004). Developing marketing information services in Eastern Africa.

International Institute of Tropical Agriculture (IITA).

Gunatilke W.D.(2003). Agricultural Marketing System in Sri Lanka. Agricultural Marketing,

45(4):55.

International Fertilizer Development Center (IFDC): http://www.ifdc.org

Kotler P.,(2012). Marketing Management, 14th

ed . Pearson

MoARD.(2005).Improving Productivity & Market Success of Ethiopian Farmers. MoARD,

Addis Ababa Ethiopia

Muir, K. (1994) Agriculture in Zimbabwe. In Rukuni, M. and Eicher, C.K. (eds.) Zimbabwe‘s

Agricultural Revolution. pp.40-55. Harare: University of Zimbabwe Publications.

Mukhebi A.(2004). Reaching the Poor in Rural Kenya with Market Information: A Case Study of

a Market Information System. A Paper for presentation at the CTA Seminar 2004

on the Role of Information Tools in Food Security, Maputo, Mozambique,

November 8-12, 2004.

Shepherd A,. (1997). Market information services: Theory and practice. FAO

SID-Consult.(2008). Agricultural Marketing in Ethiopia: The Case of Arrero, Goro and Dehana

Woredas. Addis Ababa, Ethiopia.

http://www.ifdc.org/



The World Bank.(2011).ICT In Agriculture: Connecting Smallholders to Knowledge, Networks,

and Institutions. The International Bank for Reconstruction and Development,

Washington, DC.

The World Bank.(2011).ICT In Agriculture: Connecting Smallholders to Knowledge, Networks,

and Institutions. The International Bank for Reconstruction and Development,

Washington, DC.

Tschirley David L., Kavoi Mutuku Muendo, Miltone Ayieko, and Michael T. Weber(2004).

Improving Kenya’s Domestic Horticultural Marketing System:Competitiveness,

Forces of Change and Challenges for the Future. Tegemeo Institute for

Agricultural Policy and Development, November 2004.

2: List of people contacted

Name Place Organization Purpose



Habtamu Tsegaye Bahir Dar AgroBIG KII

Aychew Kebede Bahir Dar AgroBIG KII

Zelalem Addis Bahir dar BoTT KII

Mebiratu Simachew Bahir Dar BoTT KII/FGD

Demelash Tadele Bahir Dar BoTT KII/FGD

Marta Eshetie Bahir Dar BoTT KII/FGD

Degu Genete Merawi OoTT KII

Dessalegn Lake Merawi OoTT KII

Misganaw Molla Merawi DoA KII

Algaw Denekew Merawi Cooperatives Off. KII

Algaw Denekew Merawi Expert (union) KII

Belay Zeleke Merawi Koga Project KII

Degu Genetie Merawi OoTT KII

Jegnie Bezie Wereta OoTT FGD

Alemush Mandefro Wereta OoTT FGD

Kassahun Kebede Woreta AgroBIG FGD

Takele Wereta OoTT FGD

Assefa Wereta OoTT FGD

Merkew Asnakew Woreta DoA KII

Nardos Wassie Woreta DoA KII

Tesfaye Mengistu Bahir Dar BoA KII

Bitew Melaku Bahir Dar CopA KII

Emishaw Workineh Bahir Dar Amhara Seed

Agency

KII

Samuel A. Addis Ababa ECX (PR) KII

Tsegaye Berhe Addis Ababa EHA KII

Mitiku Odie Addis Ababa ECX (ICT-expert) KII

Ebrahim Dawud Merawi Trader KII

Endalshi Workie Merawi Seed supplier KII

Atsede Fisiha Merawi Retailer KII

Mulu Alemu Merawi Retailer KII

Tenagne Fenta Merawi Broker KII

Belinesh Kinde Bikolo Abay trader KII

Gudainesh Worku Merawi Customer KII

Gobeze Abebe Woreta Trader KII

Alemye Kelemwork Woreta Customer KII

Kibrom Girma Woreta Customer KII

Misganaw Alebachew Woreta broker KII

Tihitina Tadesse Woreta Wholesaler and

Trader

KII

Rahel Mersha Woreta Wholesaler and

Trader

KII

Misganaw Zemene Gondar trader KII

Yibeltal Embiale Bahir Dar trader KII

Memberu Demisse Mecha/Koga Irr KA Farmer FGD

Gedamu Ayalew Mecha/Koga Irr KA Farmer FGD

Yanhi Amlak Tadesse Mecha/Koga Irr KA Farmer FGD

Reda Anabie Mecha/Koga Irr KA Farmer FGD



Mulat Kifle Mecha/Koga Irr KA Farmer FGD

Molla Mekonnon Mecha/Koga Irr KA Farmer FGD

Chekile Much Mecha/ wngutii Farmer FGD

Mola Yihun Mecha/ Kudimi Farmer FGD

Gebre tegegn Mecha/ Kudimie Farmer FGD

Aysheshum awoke Mecha/ Kolela Farmer FGD

Gebre Zelek Mecha/ Enguti Farmer FGD

Ayehualem Yismaw Mecha/ enguti Farmer FGD

Bekele Belay Mecha/ Kudimie Farmer FGD

Tegenaw Adugna Fogera/Bebex Farmer FGD

Gared Assefa Fogera/Bebex Farmer FGD

Qes Belachew Admas Fogera/Bebex Farmer FGD

Fenta Kasa Fogera/Bebex Farmer FGD

Gebere Tamirat Fogera/Bebex Farmer FGD

Nigat Engdaw FogeraShina Farmer FGD

Desalegn Tesfa FogeraShina Farmer FGD

Kebte Engidaw FogeraShina Farmer FGD

Muche Amare FogeraShina Farmer FGD

Ayenew Alelign FogeraShina Farmer FGD

Abere Dagnew FogeraShina Farmer FGD

Mucheye Demis FogeraShina Farmer FGD

Sisay Abebaw FogeraShina Farmer FGD

Tafete Belete FogeraShina Farmer FGD

Belaynesh Admas FogeraShina Farmer FGD

Tirunesh Ayalew FogeraShina Farmer FGD

Tirunesh Ayele FogeraShina Farmer FGD

Yamrot Feten FogeraShina Farmer FGD

Huluager Damte FogeraShina Farmer FGD

Gashaw Bayew Fogera/Bebex Farmer FGD

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