Marketing Report

To aid the successful implementation of Aquaponics microenterprises in Hawassa, Ethiopia

Bouke Kappers Lemma Nigussie

December 2015 Hawassa Ethiopia

Contents 1 Introduction ............................................................................................................................. 4

2 Value chain overview ............................................................................................................. 5

3 Market research ....................................................................................................................... 6

4 Network structure – Stakeholders in the value chain.............................................................. 7

4.1 Input suppliers .................................................................................................................. 7

4.1.1 Seed shops ................................................................................................................. 7

4.1.2 Nutrient providers ..................................................................................................... 8

4.1.3 Fish feed producers/suppliers ................................................................................... 8

4.1.4 Fish Fingerling producers ......................................................................................... 8

4.1.5 Material suppliers...................................................................................................... 9

4.1.6 Suppliers of utilities (water and electricity) ............................................................ 11

4.1.7 Aquaponics training/knowledge providers ............................................................. 11

4.2 Producers/Competitors/processors ................................................................................. 12

4.2.1 Fish producers/sellers/processors............................................................................ 12

4.2.2 Vegetables producers/sellers/processors ................................................................. 13

5 Market segmentation ............................................................................................................. 14

6 Consumers/Customers .......................................................................................................... 14

6.1 Vegetable consumption .................................................................................................. 14

6.1.1 What types of vegetables are popular/What is the general demand for vegetables

that can be grown aquaponically? ......................................................................................... 14

6.1.2 Is there a specific vegetable that can be grown aquaponically that is Scarce, too

expensive, Imported, Not available in good quality? ........................................................... 15

6.1.3 Is there a specific demand for organic vegetables that can be grown aquaponically?

15

6.1.4 Is there a growing demand for a certain vegetable that can be grown

aquaponically? ...................................................................................................................... 15

6.1.5 Is there a seasonal difference in buying vegetables? What type of vegetable do

people consume during the four different seasons (before/during the first rain period, after

the first rain period, before the end of the second rain period, after the second rain period) 15

6.2 Fish consumption ........................................................................................................... 16

6.2.1 What types of fish are popular? What is the general demand for fish that can be

grown aquaponically? ........................................................................................................... 16

6.2.2 Is there a seasonal difference in buying fish? What type of fish do people consume

during the four different seasons (before/during the first rain period, after the first rain

period, before the end of the second rain period, after the second rain period). ................... 16

6.2.3 Is there a specific fish that can be grown aquaponically that is: Scarce, Too

expensive, Imported, Not available in good quality? ........................................................... 16

6.3 What factors play a significant role for the people when purchasing food items, in

particular fish and vegetables? Categories can be for example: price, Quality, health factors,

brand name/image association, taste, cultural food preference, fasting food or not. ................ 16

6.4 Comparing Hawassa and Shashamane ........................................................................... 17

7 Marketing environment (PESTEL Analysis) LEMMA ........................................................ 17

7.1 Policy Environment (political and legal aspects) ........................................................... 17

7.2 Economic environment: Demand and supply analysis .................................................. 18

7.3 Environmental aspects.................................................................................................... 18

8 Observations and suggestions for further research ............................................................... 19

9 Annexes................................................................................................................................. 20

Annex A: Koudijs fish feed nutrient values .............................................................................. 20

Annex B: Fertilizer supplies from Klaver Flower PLC ............................................................ 21

Annex C: Vegetable prices of commercial farms (prices in Birr per KG) ............................... 22

Annex D: List of vegetables to aid the marketing research ...................................................... 25

Annex E: List of interviewed restaurants, hotels, shops and markets ...................................... 30

Marketing report Aquaponics Hawassa Aquaponics Ethiopia: Developing a business model for sustainable implementation of small scale aquaponics systems improving food and nutrition security of rural and peri -urban households in Ethiopia.

1 Introduction

In 2015 a project will start to develop a business model for sustainable implementation of small scale aquaponics systems in Ethiopia. The project aims to increase nutrition security of rural households in Ethiopia the project aims to increase the production of fish and vegetables (see annex D) while saving scarce natural resources, through the transfer of prototype aquaponics systems to 46 rural households in Ethiopia. Also 3 aquaponics centers will be opened. The project will be executed in three locations: Hawassa, Shoa Robit, and Metahara. To ensure the long term sustainability of the aquaponics farms it is important that there is a working value chain and that the business models are good. Therefore the project has chosen to aim at developing sustainable business models and a sustainable value chain. To be able to know what business models and value chains are possible and sustainable, a value chain analysis and market research have been executed. This market research has been conducted in Hawassa in December 2015 by Lemma Nigussie and Bouke Kappers. The aim is to make this research as practical and applicable as possible.

General remark

All price information mentioned in this report is gathered in December 2015. Even during the time of research price changes occurred, therefore

one should be cautious to take the mentioned prices as absolutes. The market prices in Hawassa fluctuate from day to day and negotiations

are needed to settle for a good price.

2 Value chain overview

Below we have given a simple overview of the aquaponics value chain in Ethiopia and the activities, processes and stakeholders that are important for the aquaponics farmers. A Value Chain Analysis is needed to further understand the stakeholders, processes and activities in the aquaponics value chain.

Inputs

• Vegetable seeds producers and traders

• Fish fingerlings providers

• Fish feed providers

• Construction materials providers

• Water pump sellers

• Aquaponics Training providers

• Aquaponcis manual

• Utility providers

• Knowledge providers

• Providers of treatment materials for fish or plant diseases

• Providers of packing materials

Production

• Vegetable production

• Fish production

• System maintenance

• Dealing with fish or plant diseases

• Harvesting fish

• Harvesting vegetables

Processing & distribution

• Processing fish

• Packing fish

• Processing vegetables

• Packing vegetables

• Transport to clients

Marketing

• Advertising

• Selling at markets

• Selling at own farm

• Forming farmer cooperatives

• Selling to wholesalers

• Selling to supermarkets

• Selling to restaurants

• Selling to hotels

Consumption

• Home

• Restaurants

• streets shops

• Supermarkets

• Events

Figure 1 Aquaponics value chain in Ethiopia

3 Market research

In this market research the main focus will be on understanding the current market for fish and vegetables and to explore possible future markets for fish and vegetables. In this market research we will focus on four categories:

1. Market segmentation

2. Customers/consumers

3. Competitors

4. Marketing environment

For each category we will focus on understanding the specific demand for fish and vegetables and the trends in this demand.

Figure 2 Market Analysis

4 Network structure – Stakeholders in the value chain

For each step in the value chain it is important to know who the stakeholders are. We start with the suppliers of inputs, the other producers (our competitors) and those stakeholders that are involved with processing and distribution.

4.1 Input suppliers

4.1.1 Seed shops Several seed suppliers have been identified. All are small shops (8m2) that offer imported seeds (mainly from Holland) in tins of 250gram. Some shops will only sell per 250gram, while others have redistributed the seeds in packages of +/-5gram. Although their assortment is almost identical, there are slight differences (table 1). The seeds are brought in through wholesalers in Addis Abeba. Main customers are in all cases the Agricultural offices (governmental) and secondly local farmers. Apart from seeds they offer a limited range of pest and insect control solutions. E.g. Infofil fungicides and Sarikas insecticides.

Table 1 Seeds supplied by different seed companies

Seed / Supplier* Amount (gram)

Debub Zerihun Abera Thanks Lord

Tomato Roma 50 120 195 80

250 500

Swiss Chard 250 170

Iceberg 250 250

Cabbage (Copenhagen) 4 10 10

250 175 160 160

Cabbage (France) 250 160

Cabbage (Euro) 250 150

Lettuce 5 10 20 10

250 175 170 220

Costa 5 10 10 10

250 160 160 160

Tomato 5 20 10

250 650

Hot Pepper 5 10

50 110

Zucchini 5 10

250 390

Brocolli 5 10

250 145

Cauliflower 5 10

250 270

*Prices in orange are the cheapest or only option.

4.1.2 Nutrient providers There is no market in Awassa to provide Aquaponic nutrients. Most farmers work with Manure only and there is thus neither supply nor demand for chemical fertilizers apart from the big farms that all import their own nutrients. Klaver Flowers PLC (Danny@klaverlily.nl/0916581769) has offered to supply us with the necessary nutrients, a list can be found in annex B.

4.1.3 Fish feed producers/suppliers Since almost all fish are coming from the lakes, there are hardly any fish farms in the county and therefore there is no demand for fish feed. The only way to get fish feeds is by mixing the ingredients that are available on the market, see table 2 (The negative side of this is that you get a loose feed mixture. To get pallet feed the only option is wetting the feed and leading it through a mince grinder). Table 2 Main ingredients of fishfeed

Ingredient Where to buy Estimated price (birr/kg)

Soy bean Hawassa open market 23

Corn Hawassa open market 12

Bone meal Addis Abeba 14

Fishmeal No price information, available in Ziway

Minerals Not to be found currently

Oil Residue Hawassa open market 7

Table 3 Fish feed producers in Ethiopia

Fish feed producer Location birr/kg

Alema Koudijs Feed PLC Debre Zeit 13

Abebe Tadesse (Addis Abeba University)

Addis Abeba -

Currently Alema Koudijs Feed PLC (Harry Schimmel: 0942167468) has started producing fish feed in Debre Zeit (4hours from Hawassa) to supply a new fish farm that is starting up in Bahir Dar (Africa Sustainable Aquaculture). Koudijs supplies fishfeed (table 3) with a minimum of 1500kilogram. Because of this high minimum it is currently not possible to buy from them due to a lack of available funds. In the future this will need reconsideration. In Annex A one can find their fish feed nutrient overview. Apart from this Abebe Tadesse from Addis Abeba University is currently doing research on finding a good fish feed mixture for aquaponics. As soon as this is finished his aim is to start a production line for pallet Aquaponics fish feed.

4.1.4 Fish Fingerling producers As mentioned before there are hardly any fish farms in Ethiopia and thus there is no demand for fish fingerlings. The only producer that could be identified is Hawassa University (Kassaye

Balkew, kassayebalkew@gmail.com, 0921452893) which is producing fingerlings for research purposes. Hawassa University is interested in working together since they currently do not have the capacity to hold more fish for research purposes. Especially because they are growing for research purposes it is beneficial to work together since we’re both interested in measuring fish production.

4.1.5 Material suppliers

4.1.5.1 Pumps and other electric equipment It proved impossible to find reliable electric water pumps in Addis Abeba. Although some businessman are importing them, they didn’t manage to do so on our request. Therefore all pumps have been imported from Germany via the Netherlands (OASE Aquamax Eco Classic 3500, 45w, 60l/min, pump height of max 2.2m) at a price of 130euro (approximately 2990birr). Aerators and air tubes are not available in Awassa and will need to be purchased in Addis Abeba. Currently no price Information for this is available.

4.1.5.2 Fish tanks The only affordable tanks on the market are IBC tanks (1000L) and blue drums (200L), see figure 3. Secondhand IBC tanks can be bought only at a few different stores, see table 4. New ones are not available currently. Secondhand IBC tanks are coming from farms, breweries and other industries that used them for transport of inputs. Currently the hydropower dam near Wolaita-Soddo is a main supplier of second hand IBC tanks. Table 4 IBC tank suppliers

Material (Prices in Birr/unit) Shop1 Shop2

IBC tank 3500 2500

Blue drum 650 (open market)

Figure 3 IBC tank (1000L) and Blue drum (180-220L)

4.1.5.3 Piping material (NFT + connecting) There are quite a number of shops that provide PVC and HDPE pipes, but only a few of them also provide the necessary additional materials. Table 5 gives an overview of shops and prices. Table 5 Piping material

Material (Prices in Birr/unit) Shop1

Shop2 Tamirat Bathroom materials shop

NFT system (PVC 110mm)

PVC pipe 110mm, 6m (NFT) 175 180 175

PVC pipe 110mm end tap (NFT) 35 55 30

PVC pipe reducer 110 - 50mm (NFT) 25 30 35

PVC pipes (connecting fishtank, growbed and sumptank)

PVC 50mm T-connector 15 - 18

PVC 50mm elbow 14 - 16

PVC pipe 50mm (6meter) 95 90 95

PVC pipe 50mm end tap 18 30 18

Funnel 50mm 40

HDPE pipes (connecting pump with NFT system and fish tank return flow)

HDPE pipe 1" 18 16 16

HDPE pipe 1" elbow 60 65 35

HDPE pipe T-connector 1” 65 75 35

Valve 1.0" 160 210 130

Reducer 1” - 0.5” 25 30 25

HDPE pipe 0.5" 12 20 12

4.1.5.4 Media Bed (Masonry material) Two options exist for building the media beds: A brick media bed or using a cut in half IBC tank. Currently the brick media bed proves to be the cheaper option, see table 6. All materials can be bought locally. Concrete bags can be bought at almost all material stores, concrete blocks are produced by small cooperatives/companies all over town (same price) and gravel/sand are supplied by one of the many donkey cart drivers. Table 6 masonry material

Material (Prices in Birr/unit)

Brick system IBC system

Units Unit price Total price units Unit price Total price

Planting gravel (donkey load)

2 120 240 2 120 240

Concrete (25kg bag) 1 120 120 - - -

Sand (donkey load) 1 170 100 - - -

Concrete block ( 40x20x10) 40 6.50 260 - - -

Black plastic foil 6m2 30 180 - - -

IBC tank - - - 1 3500 3500

Total price 900 birr 3740 birr

4.1.6 Suppliers of utilities (water and electricity) Water supply in Hawassa is constant in most areas. Only on a weekly basis the water might be out for a few hours. The electricity supply is not reliable, power outages occur daily and can last a few hours on average. On a weekly basis the power can be out for 6-8 hours even, in times of turmoil in the country power outages might increase. The water pumps used will need 45w/hour, which results in 29kWh per month, taking into account the average number of power outages as mentioned by the beneficiaries. Table 7 indicates current prices. Table 7 utilities

Supply(Prices in Birr/unit) Units Government price (Birr)

Water M3 5

Electricity kWh 9

4.1.7 Aquaponics training/knowledge providers Aquaponics is new to Ethiopia and therefore it would not be possible to find trainers on Aquaponics specifically. Inside the project there are able people to provide training (Desta Anulo, Abebe Tadesse, and Lemma Nigussie). Several people have been involved during the time of the project and could be approached for knowledge, inputs or even training. Table 8 gives an overview of all identified organizations.

Table 8 Knowledge/training providers

Organisation Person Expertise Email Phone Note

Hawassa University

Kassaye Balkew

Fish growing kassayebalkew@gmail.com

0921452893 Has assisted at previous training

ProAfrica (ngo)

Wim van de Bos

Fish growing Wvdbos@proafricamw.com

0927939730 Has visited GCME and has a wide network of contacts in Ethiopia

Klaver Lilly (farm)

Danny Koppes

Plants and nutrients

Danny@klaverlily.nl

0916581769 Has supplied nutrients to the project

Paprikana (farm)

Jan Prins Johnny

Vegetable growing

jan@paprikana.nl

Jan Prins: 0911513910 Johnny: 0968755680

Has provided seedlings and knowledge (also on marketing)

4.2 Producers/Competitors/processors

4.2.1 Fish producers/sellers/processors Fish supply in Ethiopia is coming from the big lakes, in Hawassa most fish is coming from Lake Hawassa, although most high-end hotels and restaurants buy only from Ziway and Arba Minch. Hawassa fish market The Hawassa fish market is dominated by tilapia amd some catfish can be found. Tilapia is sold by piece or processed as fish filet. The leftovers are mixed in the fish soup that can be consumed at the market itself. Fisherman are working in cooperatives that sell directly to consumers, restaurants and supermarkets. Most interviewed hotels and high-end restaurants do not buy from the fish market since they require VAT receipts that the fisherman do not issue. In the morning people come to the boats to buy and after that fish salesman roam the streets of Hawassa to sell the catch of that day. The prices are somewhat difficult to note down due to the size differences that occur, an indication is given in Table 9 Table 9 Indication of fish prices at the Hawassa fish market

Fishtype Price low (birr) Current Price (birr) Price High (birr)

Tilapia (Whole fish) 8-15 8-15 8-15

Tilapia filet (half a fish) 2.5-3.5 2.5-4 4.5-5.5

Catfish No price information

- -

Wholesalers Most hotels and high-end restaurants get fish supplied from wholesalers. These wholesalers buy fish from Ziway and Arba Minch, they sell processed (filet) and whole fish per Kg (table 10). They provide delivery service and a constant supply.

Table 10 Indication of fish prices of wholesalers

Fishtype Price low (birr) Current Price (birr) Price High (birr)

Tilapia (Whole fish) per piece 10-15 10-15 10-15

Tilapia filet (half a fish) per KG 60 70 100

Nile Perch per KG 180 130 130

4.2.2 Vegetables producers/sellers/processors Local farmers Many local farmers are present in and around Hawassa. Some sell to brokers and others sell the vegetables themselves at the open market that is held twice a week. The only produce: Tomato, Copenhagen Cabbage, Ethiopian Cabbage, Lettuce, Spinach (Costa) , beetroot and Green Beans (Fosolia). Only few seem to grow any other crops: mint, Bell Pepper and zucchini. All other vegetables that can be found are supplied by the commercial farms, with a few exceptions only. Large Scale commercial farms In Hawassa there a currently two commercial vegetable farms present: Green Mark Herbs and Paprikana. Their production is aimed at the foreign markets. They sell slightly lower quality produce to high-end restaurants and hotels in Addis Abeba and Hawassa. Poor quality produce is sold to the local supermarkets and shops. These are supplied directly or through brokers depending of the quantity that the salesmen require. In Annex C an overview of current (wholesale) prices is given. Wholesale prices are normally fixed 1 or 2 months ahead, but in time of scarcity these farms do increase their prices. Outside Hawassa there are other commercial farms, but so far only Jittu farms is supplying the Hawassa market. They supply wholesalers and recently they have started their own vegetable store called GET vegetables. The identified commercial farms receive their inputs from abroad, seeds are mainly from Holland and fertilizers/pesticides/herbicides are coming from abroad as well. The all use their own distribution network to acquire inputs. Paprikana farm mentioned that they see an increasing demand for a wider range of vegetables. They are slowly selling more of their produce to the local market. A few years ago this was hardly possible, but now the demand is increasing.

5 Market segmentation

LEMMA

6 Consumers/Customers

Several customers where distinguished in the value chain analyses: 1. Small market/shop owners 2. Wholesalers 3. Supermarkets 4. Restaurants/Hotels 5. Direct customers

This chapter will give an overview of their demands based on information from the interviews with groups 1 to 4, direct customers have also been interviewed as part of the baseline study. Anwsers given by the different interviewed parties have been summarized and compiled. Prizes mentioned are selling prices, buying prices are available in the excel sheets for those interested. We’ve chosen to mention selling prices here since those are quite equal while buying prices are much different between those that buy from the commercial farms (cheaper but only available for high quantities) and those that buy locally. Therefore the prices mentioned in this chapter are not the prices that will indicate the profit, unless distribution and selling are performed by the producers themselves. Which might actually be a good idea for profit maximization

6.1 Vegetable consumption

6.1.1 What types of vegetables are popular/What is the general demand for vegetables that can be grown aquaponically?

Main consumed vegetables are Tomato, onion, garlic, cabbage, costa, Pepper and potato. These are eaten by all consumers on a daily basis and are sold at every street corner. For all other vegetables people have to visit the small vegetable stores or the open market. There beans, green beans (fosolia), lettuce, beetroot, eggplant and carrot are sold as well. However for most low income households these vegetables are too expensive. Apart from this there are many vegetables available from a few large vegetable stores. These are mainly consumed by top income households, restaurants and hotels: Spinach, cherry tomato, cauliflower, broccoli, cabbage, spinach, zucchini, cucumber, bell pepper, Chinese cabbage, radish, celery, iceberg lettuce, leek & rucola lettuce. Of these vegetables especially cucumber, zucchini and Chinese cabbage are mentioned as very popular Some restaurants/hotels mentioned a need for herbs, chives, basil, mint, parsley and thyme. These are available from the commercials farms and wholesalers.

6.1.2 Is there a specific vegetable that can be grown aquaponically that is Scarce, too expensive, Imported, Not available in good quality?

Cucumber and zucchini are both very expensive, 35 and 25 birr per kg currently. Both are available only in poor quality and a constant supply is there. Both are very easy crops to grow aquaponically and have a high potential. Unfortunately they can only be grown in the media bed. Cauliflower and broccoli are both very scarce and the few stores that have them in stock sell out quickly. One restaurant owner mentioned that they have to go to the store early in the morning before they are sold out. Apart from this they sell for around 40birr/kg. The high price looks promising but bear in mind that they take long to grow and that the high temperature can result to early flowering with no head formation of a head. Lollo Rosso and lollo bianco are high on demand and sell for around 40birr per kg, although the prices might drop as low as 20birr. Both crops can easily be grown Aquaponically and have a high potential therefore. Bell pepper is also high on demand but hardly available, those available are low in quality and are sold for 40birr. Good qualitity ones can be bought from addis for around 60-80birr per kg. Strawberries are currently only supplied by a single farm in mojo (3hours drive) that sells for around 50birr per kg. Strawberries can easily be produced aquaponically. Several herbs are high in demand but it will need further research whether they are profitable. Most sell for around 40-50birr/kg, or higher is sold in small quantities.

6.1.3 Is there a specific demand for organic vegetables that can be grown aquaponically? Almost all interviewed people mention that buying organic is preferred. Restaurants prefer buying organic although they indicate that they will not pay a higher price for it. Customers would not notice it and profit maximization is more important. Besides, almost all vegetables sold at the local market are grown organically due to a lack of chemical fertilizers and pesticides.

6.1.4 Is there a growing demand for a certain vegetable that can be grown aquaponically? No specific increase in demand notices, see chapter 5.1.2 for more information.

6.1.5 Is there a seasonal difference in buying vegetables? What type of vegetable do people consume during the four different seasons (before/during the first rain period, after the first rain period, before the end of the second rain period, after the second rain period)

There are huge seasonal differences in buying vegetables. Due to the widespread practices of irrigation all vegetables are available throughout the year, although prices tend to differ a lot. During the main rainy season many different vegetables are available cheaply. During the rest of the year people tend to buy mainly onion, potato and if the money is available also some tomato. Apart from this a main seasonal difference exists linked to the orthodox calendar. During times of fasting orthodox Christians do not eat any animal products and therefore vegetable consumption tends to increase. Especially during the longer fasts (up to 2months) vegetable prices can almost double in price. Generally speaking the orthodox calendar seem to have a bigger influence on the price and the climatic conditions.

6.2 Fish consumption

6.2.1 What types of fish are popular? What is the general demand for fish that can be grown aquaponically?

The most popular fish in Awassa is tilapia supplied from Lake Awassa. Apart from Tilapia some catfish is caught but these are not widely available. There is some demand for nile perch but only by a few high end hotels.

6.2.2 Is there a seasonal difference in buying fish? What type of fish do people consume during the four different seasons (before/during the first rain period, after the first rain period, before the end of the second rain period, after the second rain period).

Seasonal differences seem to be small, when asked there are only slight price differences. Apart from Lake Awassa additional fish is supplied form the other Rift Vally lakes.

6.2.3 Is there a specific fish that can be grown aquaponically that is: Scarce, Too expensive, Imported, Not available in good quality?

Some scarce fish species are Ansjofish and Shrimp, however these were not frequently mentioned. It will need research if it is possible to grow these aquaponically. Other than this Catfish might be a good option due to its scarcity on the local market and it’s viability to grow it aquaponically.

6.3 What factors play a significant role for the people when purchasing food items, in particular fish and vegetables? Categories can be for example: price, Quality, health factors, brand name/image association, taste, cultural food preference, fasting food or not.

All business mention that they suffer because the supplies are never constant. Especially hotels and restaurant are struggling to serve their guest the dishes as mentioned on the menu. Often certain ingredients are suddenly out of supply.

6.4 Comparing Hawassa and Shashamane This marketing research has been focused on Hawassa since it is the main project location. Currently three out of the eight beneficiaries are from Shashamane and therefore some comparison study has been made between the two towns. Although only four interviews were conducted in Shashamane it becomes clear that prices of the most common vegetables are lower (currently cabbage price is 5birr against 7birr in Hawassa). Due to the fact that Hawassa is very touristic there is a large demand for luxurious vegetables. In Shashamane this demand is low due to the presence of only a handful of high end hotels. Still cucumber, zucchini and bell pepper are available on the local market for seemingly higher prices compared to Hawassa.

7 Marketing environment (PESTEL Analysis) LEMMA

When studying the marketing environment focusses we will use the PESTEL analysis and PESTEL analysis focusses on the following aspects of a marketing environment:

P – Political

E – Economic (price developments, fasting, season, rainfall)

S – Social

T – Technological

E – Environmental

L – Legal

7.1 Policy Environment (political and legal aspects) In order to overcome the economic and social basic problem of the people and to bring sustainable development through giving high emphases to the private investment every developing country must formulate suitable development strategies and policy. In Ethiopian development endeavors, the relevant and effective policy is formulated and implemented for the last 10 years. This policy has given emphases for the agriculture and industry sector. The Ethiopian city administration also has taken the Federal development objective as frame work in the administration GTP mainly include the higher growth of agricultural sector, the optimal use of material and human resources, higher levels of income and employment, and significant improvement in living condition and living standards (FDRE, 2010/11- 14/15). In particular, the basic objectives of the agricultural policy should be to achieve an accelerated pace of competitive and sustainable growth within a framework of increased market orientation and private sector development. Such growth should also bring about greater socio-economic development, including increased employment and incomes, and thereby improved living standards. And also the agricultural development strategy focuses on agricultural products, agro-processing, and small and micro-enterprises (FDRE, 2004). The government has also recently issued the establishment of new ministerial offices who are specifically focuses on the development of vegetables and fish products which show the

government’s commitment to support the sector.In general, the country’s policy environment and the existence of huge market in the region will be considered as a key success for the project.

7.2 Economic environment: Demand and supply analysis Vegetables and fish products are a highly demanded commodity for which there are many consumers. In case of Ethiopian market most of the demand is covered by local suppliers and there are times in which vegetables and fish products are not widely available which is always marked by highly escalated selling prices. The gap between the demand for vegetables and fish and the domestic supply is still not filled; particularly in the recent year there is a huge and growing demand for these products which shows us the very feasibility of the project if it is implemented. In addition the market for vegetables and fish products will be higher during fast seasons. The fasting seasons are indicated in table 11. Table 11 Fasting times in the Ethiopian Orhodox Tewahido church

TYPE OF FASTING DURATION IN ETHIOPIAN CALEDER

DURATION IN GREGORIAN CALEDER

REMARK

ABIY TSOM FEBRUARY 15-APRIL 15 FEBRUARY 23- APRIL 24

YEHAWARIYAT TSOM

JUNE 10-JULY 5 JUNE 16-JULY 11

YEFILISETA TSOM AUGUST 1-AUGUST 15 AUGUST 7-AUGUST 21

YETSIGE TSOM SEPTEMBER 26-NOVEMBER 6

OCTOBER 6-NOVEMBER 16 OPTIONAL

YENEBIYAT TSOM NOVEMBER 15-DECEMBER 29

NOVEMBER 15-JANUARY 7

NENEWYE TSOM FEBRUARY 1-FEBRUARY 4

FEBRUARY 11-FEBRUARY 14

YEDIHINET TSOM 20 DAYS - WEDENSDAY AND FRIDAY

YEGEHAD TSOM 2 DAYS - EVE OF CHRISTMAS AND EPIPHANY

7.3 Environmental aspects To facilitate the production and the market activity of the proposed project there is well organized infrastructure in sufficient amount. In regard to the road access the project city has good level of passenger transport interaction with influence areas and with other towns particularly Adama and Addis Ababa. And on the other hand there is a prospected railway construction to the areas so that it helps the project to transport the products to better markets as well. The other best infrastructure which is available in sufficient amount for this project is electrical power supply, water supply and telecommunication which may be provided as the project request.

8 Observations and suggestions for further research

No attempt was made so far to identify local farmers organization/cooperatives, this because of the different nature of Aquaponics. It might be of interest to enquire about their role in the value chain. Although they might be hard to identify, it can give a better idea on who earns most money in the supply chain. From some interviewees we got the suggestion that marketing the produce yourself will be increasing your profit. Most money in the value chain seems to end up with the shop owners, the brokers and the wholesalers. There are at least three ways to go about this that will need some practical evaluation. Option1: Make deals with local restaurants/hotels that you will deliver them with the needed vegetables, several restaurants showed interest in this. They prefer dealing with the farmer directly as long as he can supply them with most necessary vegetables. Option2: Open a small store in which several farmers combine their produce and sell it directly to the consumers. Several restaurants mentioned that if the farmers really offer the quality and quantity required they are happy to buy the vegetables straight from the backyard. This project is all about doing business and therefore we suggest that it can be a great addition to the project to evaluate some of these option in order to maximize the profit.

9 Annexes

Annex A: Koudijs fish feed nutrient values

BESTMIX - Optimalisatie-uitvoer

Formula TGS 30%

TILAPIA 30 %

Analysis Unit

001 Crude Protein % 32.317

002 Crude Fat B % 5.802

003 Crude Fibre % 5.000

004 Ash % 10.460

005 Moisture % 8.052

011 OE-poultry Kcal 2672.228

016 Lysin % 1.875

017 Methionin % 0.773

018 Cystin % 0.465

019 Meth+Cyst % 1.239

020 Treonin % 1.213

021 Tryptophan % 0.378

048 Calcium % 1.642

049 P.Total % 0.912

050 Chloride % 1.191

051 Potassium % 1.289

052 Sodium % 0.800

054 Cu mg/kg 26.465

055 Total Mg % 0.242

056 Total Mn mg/kg 122.479

057 Total Zn mg/kg 110.148

058 Total Fe mg/kg 326.451

367 Se: Na2SeO3 mg/kg 0.241

101 Vit A -Added IE/kg 13623.030

102 Vit D3 -Added

IE/kg 2997.067

103 Vit E -Added mg/kg 50.116

238 Vit C -Added mg/kg

288 Biotin-Total µg/kg 74.102

Annex B: Fertilizer supplies from Klaver Flower PLC

Name Manufacturer Formula Content Use Price (birr/kg)

Amonium Sulphate CZAV NH3SO4 21%N + 60%SO3 fertigation On request

Bone mill National Fertilizer Manuf. Company

organic 1%N + 23%P2O5 broadcast 6.51

Borax ETI Mader Na2B4O7.10H2O fertigation On request

Calcium Nitrate (calcinit)

Yara Live CaNO3 14.4%NO3+ 1.1%NH4 + 26.5%CaO

fertigation On request

Calcium Nitrate (tropicote)

Yara Live CaNO3 15.5%NO3+ 1.1%NH4 + 26.3%CaO

broadcast On request

Copper Sulphate Joint stock CuSO4.5H2O 25% Cu fertigation On request

Dolokal Supra Sibelco CaCO3 80% CaCo3 + 19% MgoCO3 broadcast 8.69

Fe - EDDHA Ciba, Horticoop Fe chelate 6% Fe fertigation 100

FE-EDDHSA Horticoop Fe chelate 3% F Spray On request

Kieserit Agrifirm MgSO4.7H2O 25%MgO + 50%SO3 broadcast On request

Magnesium Sulphate Cebeco, Horticoop MgSO4.7H2O 16% MgO + 32% SO3 fertigation 9.17

Magnisal Haifa MgNO3 11%NO3 + 16% MgO fertigation On request

Manganese Sulphate Norkem MnSO4 32%Mn fertigation On request

Multi -MAP Haifa NH4.H2PO4 12%NH4+ 61%H2PO4 fertigation On request

Multicote Haifa NPK+MgO4 15% N, 7% P, 15% K+2MgO broadcast On request

Nitric Acid Horticoop H2NO3 68% acid fertigation On request

Patentkali CZAV K2SO +MgO4 30% K2O + 10% MgO broadcast On request

Potassium Nitrate Kemapco KNO3 13%N + 46% K2O fertigation On request

Potassium phosphite Biron K3PO3 20% K2O + 30% P2O5 fertigation On request

Potassium Sulphate K2O S03 50% k2O + 45% SO3 fertigation 19.5

Sodium molybdate Cebeco mestoffen Na4MoO4.2H2O 19% Na + 39%Mo fertigation On request

Urea Sabic (NH2)2CO 46%N fertigation On request

Zink Sulphate Grillo ZnSO4 23.6% Zn fertigation On request

Annex C: Vegetable prices of commercial farms (prices in Birr per KG)

Crop

Pap

rika

na

Pap

rika

na

(So

ut

Star

*)

Jitt

u (

AB

CO

)

Artichoke 114

Asparagus 19

Beans Fine 25 22 19

Beans Runner 22

broccoli 35 30 28

Brussel Sprouts 11

Cabbage Borecole 15 13 8

Cabbage Chinese 15 13 11

Cabbage Pakchoy 15 13 7

Cabbage Pointed head 10 8 8

cabbage red 9 8 7

Cabbage Savoy 15 13 6

Cabbage white 8 7 9

carrot 12 11 17

cauliflower 25 21 19

Celery Cut 11

Celery Root 8

Celery Stick 20 18 38

Chilly red 40 35 27

Chilly Green 67

Chilly Habanero 67

Chilly Indian Red 67

Chilly Scotch Bonet 15

Corn Sweet 20 39

Corn baby 40 13

Courgette Green 15 13 15

Courgette Yellow 15 13 13

Cucumber 25 22 13

Egg plant 25 22 13

Fennel 25 22 49

Herb basil 45 35 49

herb chives 45 35 49

herb coriander 45 35 49

herb dill 45 35 67

herb Marjoram 49

herb mint 45 49

herb Lemon Grass 49

Herb Oregano 19

Herb Parsley English 35 30 19

Herb parsley French 35 30 49

herb rosemary 45 35 49

herb sage 45 35 67

herb terragon 45 35 52

herb thyme 45 35 9

kohl rabi 15 13 9

Leek 20 17 12

Lettuce Butterhead 35 30 14

Lettuce Frisee Green 35 30 16

Lettuce Frisee Yellow 35 30 10

Lettuce iceberg 25 22 13

Lettuce Lollo Biondo 35 30 15

Lettuce Lollo Rosso 35 30 12

Lettuce Oak leaf green 35 30 15

Lettuce Oak leaf red 35 30 18

Lettuce Radichio 35 30 12

Lettuce Romain (medium) 31

Lettuce Rucolla 45 9

onion red 12 10 16

onion spring 25 22 9

onion white 16 13 9

onion yellow 16 13 18

Paprika Green 30 26 21

Paprika Orange 40 35 26

Paprika Purple 18

Paprika Red 40 35 17

Paprika Yellow 40 35 26

Paprika White 26

Paprika Brown 38

Pea Snow 40 12

Potato 10 12

Potato sweet 10 16

Radish Red 25 22 16

Radish white 25 22 9

Red beet 10 37

Spinach 44

Sugar snaps 40 9

Tomato 47mm (C/A) 12 11 9

Tomato Beef 12 11 10

Tomato Bunch orange 15 13 11

Tomato Bunch yellow 11

Tomato Bunch 16

Tomato Cherry Bunch 25 22 17

Tomato Cherry Red 25 22 19

Tomato Cherry Yellow 25 22 10

Tomato Plum bunch 15 13 10

Tomato plum loose 12 11 11

Tomato yellow bunch 12

Turnip 10 16

Fruit Honey Dew 16

Fruit Rock Mellon 45

Fruit Strawberry 14

*Paprikana farms adjusts its pricelist per customer. In this column the reduced prices are noted down that they offer South Star hotel. This to give an indication of the discount given to businesses that order large quantities.

Annex D: List of vegetables to aid the marketing research

Basil Beans Celery Chard

Chinese cabbage/bok choy Chives Collard Coriander

Cucumbers Dill Eggplant Endive

Kale Lettuce (type) Mint Okra

Parsley Peas Sweet Peppers Spinach

Tatsoi (spinach Mustard) Tomatoes Water Cress Zucchini

Pepper Cauliflower

Red Lettuce (Curly) Red Lettuce (smooth) Russian Kale Red Radish

Chinese Pak-Choi Strawberries Curly Lettuce Brussel Sprout

Summer Squash (Zucchini) Broccoli Purple Broccoli Cucumber

Cauliflower Basil Local Lettuce Parsley

Chinese cabbage Pak Choi Sweet Pepper Thyme

Annex E: List of interviewed restaurants, hotels, shops and markets

Name Type of business

Name contact person

City Tel. number Email-address Occupation/ Function

Size of business

Debub Household & Garden Pest Control

Farm input shop

Hawassa 0916822961 Employee Small

Zerihun Agro-Dealer Farm input shop

Hawassa 0916823659 Employee Small

Abera Farm input shop

Hawassa 0916610270 Employee Small

Thanks Lord Farm input shop

Hawassa 0920442504 Employee Small

Central Hawassa Hotel Hotel Daniel Lakew Hawassa 0912236839 F&B manager Large

Haile Resort Hotel Teshome Garshaw

Hawassa 0916839392 fc@haileresort.com Food processing manager

large

Haile Resort Hotel Hailemariam Wonditraw

Hawassa 0913586857 0913586857h@gmail.com

Food and Beverage processing

Large

Lewi Resort Hotel Wondwosen Bizualem

Hawassa 0918183265 wondie1818@gmail.com F&B manager Large

South Star Hotel Hotel Deseje Mekonen

Hawassa 0911659537 Chef Large

Eyerysalem Ashenafi Local market Eyerysalem Ashenafi

Hawassa 0916304145 Owner small

Aman Fresh vegetables and herbs

local vegetable store

Amanuel Late Hawassa 0916406108 Owner Big

GET vegetables (Jittu) local vegetable store

Hawassa 0912913128 Employee Big

Zarihoen Vegetables local vegetable store

Zarihoen Hawassa 0916027610 owner Medium

Mercado Supermarket local Vegetable store

Wubiye Adredo Hawassa 0462210611 Manager Large

Colette Restaurant Colette Hawassa 0928314200 Owner Medium

Hi-Life Bar and Grill Restaurant Yonas Tefera Hawassa 0930108351 yonas_uk@yahoo.co.uk Manager Large

Sabina Bar and Restaurant

Restaurant Yenenesh Wolde

Hawassa 0911824580 Chef Large

Zinash Tessema open market Zinash Tessema

Hawassa 0911777857 Owner Small

Tamene Bunta open market Tamene Bunta Hawassa 0916621321 Owner Small

Shode Fury open market Shode Fury Hawassa 0973152765 Owner

nigist belay open market nigist belay Hawassa 0913995582 Owner Small

Efrata restaurant Local restaurant

Workie Gulma Hawassa 0934800470 Small

haile Hotel Shashamene Hotel Tibiyou Haile Shashamane

0913558348 large

Tsedale Tegbino Local restaurant

Tamrat Gebre Shashamene

0913934329 Owner Small

Teketel Philipos open market Teketel Philipos Shashamene

0916666606 Owner Small

Mekitu Beriso open market Mekitu Beriso Shashamene

0916938591 Owner Small

EMA supermarket (& Wholesaler)

Supermarket Hawassa 0910285720 Emplpoyee Large