Cost-Benefit Analysis of Cereal Value Chain in Ethiopia

Maize and wheat are the most important staple crops grown and consumed domestically in Ethiopia. With Ethiopia being the third-largest producer of maize in Africa, maize yields are relatively high compared with those of other East African producers but low compared to those other major maize producers in Africa and Asia. Domestically produced wheat is generally grown on smallholder farms, with majority being reserved for on-farm use. The biggest current challenge in terms of improved maize and wheat seeds in Ethiopia is the scaling-up of production and discrimination of high yielding hybrid maize verities and rust-resistant wheat varieties. Other major challenges to increasing the quantity of maize and wheat marketed in Ethiopia is losses due to poor post-harvest management and storage conditions. Using the cost-benefit approach of the integrated investment appraisal, this project aims to increase the availability of improved maize varieties, particularly of high-yield hybrids; improved storage facilities for cooperatives and unions to reduce postharvest losses; professionalization training, capacity building, and business-plan development for cooperatives and Farmers’ Cooperative Unions. This is done by integrating the financial, economic, stakeholder, and risk outcomes of the Ethiopian cereal value chain.