Landmark Agreement Paves the Way for Sustainable Durum Wheat Production and Livelihood Improvement in Ethiopia

The agreement:

The collaboration between the two farmers cooperatives – Chefe Donsa Community Seed Bank and Habru Seftu Farmers’ Cooperative – and three food processing companies – Alvima PLC, Astuko PLC, and Ada’a Food Complex – marks a significant step towards the establishment of efficient and effective durum wheat value chain in Ethiopia. The agreement aims to establish a dedicated marketing of durum wheat between the producers and processors which paves a strong foundation for durum wheat contract farming and ensures better payment for durum wheat farmers through premium pay for quality produce. The contracting companies have access to quality durum wheat with minimized market competition from broker traders and hence improve the quality of their pasta products as well as their products’ selling prices. This agreement mutually benefits both parties and encourages and sustains durum wheat production in the vicinity. This agreement could be considered the final output of the durum wheat value chain development effort under the GIZ-funded project on upscaling crowdsourcing winner varieties of durum wheat in Gimbichu District of East Shoa zone, Ethiopia.

Linking farmers and markets in Ethiopia: the durum wheat value chain