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Analysis of Soybean Value Chain in Northwestern Ethiopia

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Journal of Marketing and Consumer Research www.iiste.org
ISSN 2422-8451 An International Peer-reviewed Journal
Vol.90, 2023

Analysis of Soy Bean Value Chain in North Western Ethiopia

Welay Tesfay*
Ethiopia Institute of Agriculture Research (EIAR), Mehoni Agricultural Research Center

Belete Woundefiraw
Ethiopia Institute of Agriculture Research (EIAR), Pawe Agricultural Research Center
Corresponding Author: welaytesfay@gmail.com and beletewound@gmail.com

Abstract
Soybean is one of the industrial crops that have been given high emphasis on GTP II to enhance its production and
productivity through improved soybean varieties development and/or adaptation with different management and
agronomic practices. Although Soybean has plenty importance to enhance soil fertility, source of nutrient to human
and animals, main source of income to smallholder farmers and traders at household level as well as main source
of income and foreign currency to Ethiopian economy as whole, smallholder farmers complain about its lowest
output price relative to its production cost, other pulses and oil crops prices. This is due to one kilogram of soybean
price could not cover the cost of one kilogram of faba bean, chicken pea, grass pea and other beans that purchased
for “wet” purpose by selling soybean outputs. This research investigated the major opportunity and challenges of
soybean production and marketing along value chain actors using focus group discussion, key informant interview
and desk review. Storable ability, required less organic fertilizer, used as input for oil and feed industries and
ongoing to enter ECX among major opportunity whereas low output price, poor linkage along value chain actors,
lack of certified seed multiplier, limited usage of newly released improved soybean varieties were among major
challenges of soybean sector. Therefore to stimulate the soybean sector GO and NGO should be focused on the
strong linkage between soybean producers and oil and feed industries, soybean marketing agents and soybean seed
multipliers with price ceiling.
Keywords: Soybean, Production, Marketing Focus group and Key informant Interview
DOI: 10.7176/JMCR/90-01
Publication date:July 31st 2023

Introduction
In Ethiopia Agriculture is the backbone of Ethiopian economy which generated foreign currency, source of food
for its rural and urban population, supplied raw material for domestic agro-industries like brewery, feed, food and
oil factories. Due to these facts, Government of Ethiopia has been given high emphasis on production of industrial
and food security crops which has high market demand, nutrient value and productivity potentials (1).
Soybean is one of the industrial crops that have been given high emphasis on GTP II to enhance its production
and productivity through improved soybean varieties development and/or adaptation with different management
and agronomic practices since 1950 in the Ethiopian Institute of Agricultural Research (EIAR) (2). Pawe
Agricultural Research Center(PARC) as part of the Federal Agricultural Research, it has been made huge efforts
on developing, promoting and disseminating of improved soybean varieties in North western of Ethiopia for more
than three decades and released nine new improved soybean varieties naming Wegayen, Gishama, Gizo, Pawe1,
Pawe2 and Pawe3 varieties which played vital role on the enhancement of soybean production, productivity,
generating income at household level as well foreign currency at country level. Awi and Metekel Zones are among
the potential areas which produced soybean potentially, introduced and disseminated improved soybean varieties
in Amhara and Benshangul Gumuz regional state respectively, North western Ethiopia. Since 1986 soybean
becomes the main source of income and nutrient to smallholder farmers, consumers, assemblers, retailer and whole
seller in North western Ethiopia. During 2018/19 cropping season, more than 30,000 smallholder soybean
producers were cultivated 55,317 ha of land and produced 1, 472,452 quintal soybean outputs in North western
Ethiopia. Smallholder soybean producers were earned 17.67 million Ethiopian birr (ETB) of gross revenue by
selling their soybean outputs at produce price in the same cropping season (3).
Market played crucial role on creating new agricultural product, employment opportunity across the value
chain and generating income at household level. It also encourages small holder farmers to produce soybean
product and contribute their role on generating of income and foreign currency for the country since it is exportable
crop. Supporting the existing soybean market and developing new soybean market approach is crucial to benefit
smallholder farmers as well as the whole chain actors. Hence, investigating the current soybean production and
marketing approach and developing alternative marketing approach is crucial to benefit the smallholder farmers
as well as the country as whole. (2) Was conducted research in different part of the country point out the
importance of market access of smallholder farmer?
Although Soybean has plenty importance to enhance soil fertility, source of nutrient to human and animals,

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ISSN 2422-8451 An International Peer-reviewed Journal
Vol.90, 2023

main source of income to smallholder farmers and traders at household level as well as main source of income and
foreign currency to Ethiopian economy as whole, smallholder farmers complain about its lowest output price
relative to its production cost, other pulses and oil crops prices (4). This is due to one kilogram of soybean price
could not cover the cost of one kilogram of faba bean, chicken pea, grass pea and other beans that purchased for
“wet” purpose by selling soybean outputs. Therefore, investigating of production and marketing of soybean,
developing of soybean value chain and alternative market option is necessary with the aim of developing value
chain map, identifying major actors and their roles, identifying major opportunity and constraints of soybean value
chain as well as to recommend possible value chain options to benefit smallholder farmers, chain actors as well as
the country as whole (3).

Research Methodology
Description of the study area
The study conducted in Dangur district, Metekel zone Benshangul Gumuz region, North Western Ethiopia. The
district is found at 570 Km to North Western direction far away from Addis Ababa with geographical location at
36029’46.40’’ longitude and latitude of 11017’03.90’’. It covers an area of 838,700 hectare with estimate
population of 70,387(51.13% male) inhabitants (DDAO, 2018). The farming system of the district is characterized
as mixed crop-livestock farming system dominated by cereal and pulses crops. Among the pulses, Groundnut takes
a lion share in terms of production and area coverage (CSA, 2018). Dangur district is bounded in East by Pawe
district, in South by Bullen, in West by Guba districts and in North by Quara and Jawi districts. It is characterized
as warm humid low land area with high rain fall. The district has 29 kebeles and out of these kebeles 26 are
groundnut producers. The climate of the area is hot humid and characterized by unimodal rainfall pattern with high
and heavy rainfall that exceeds from May to October. The area receives mean annual rainfall of 1250 mm and its
altitude ranges from 800 to 2731 m.a.s.l with mean annual temperature of 160c to 380c which ranges 120c to 40 0c
Dangur district agricultural office (5).
Jawi is found at 602 Km to North West direction far away from Addis Ababa with geographical location at
36029’17.58’’ longitude and latitude of 11033’22.68’’. Fendika is the capital city of Jawi district. It covers an area
of 515,400 hectare with estimate population of 122,259(53.08% male) inhabitants (6). The farming system of the
district is characterized as mixed crop-livestock farming system dominated by cereal and pulses crops. Among the
pulses, soybean takes a lion share in terms of production and area coverage (CSA, 2018). Jawi district is bounded
in East by Dangla district, in South by Dangur and pawe district, in West by Quara districts and in North by Alefa
Taqusa district. It is characterized as warm humid low land area with high rain fall. The district has 25 kebeles and
the climate of the area is hot humid and characterized by unimodal rainfall pattern with high and heavy rainfall
that exceeds from May to October. The area receives mean annual rainfall of 1250 mm and its altitude ranges from
700 to 1500 m.a.s.l with mean annual temperature of 160c to 320c which ranges 120c to 40 0c Jawi district
agricultural offices (6)

Data source (Sampling technique)

The study conducted focus group discussion 8 up to 12 soybean producers at Jawi and Dangur districts
with focus group discussion, key informant interview with Agricultural experts, soybean researchers,
marketing experts and ECX Manage with deeply document review.

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Table 1. Method of Searching Qualitative data

Sample data source Benshagul Gumuz Region Amhara Region
Farm households (FGD) 1 1
Commercial farms 1 1
Traders/commission agents 4 4
Coops/unions 2 4
Supermarkets and consumers 3
Processors (FGD) 1
ECX 1
Mistry of trade 1
Agriculture Office 2 2
Research Center 1 1
Source: Survey 2020

1.2. Data type and collection methods

The sampling frame for the study was soybean producing and marketing population in the locations under
consideration. Farmers for focus group discussion were selected randomly from the sample frame using simple
random sampling technique. Actors in soybean value chain were selected randomly in collaboration with Zone,
Woreda and Kebele experts. The actors include input suppliers, traders, coops, processors, NGOs, and etc.
Qualitative data was collected from the sampled zones, districts and kebeles using key informant interview
(KII) and focus group discussion (FGD). On other hands, both primary and secondary data was collected and
compiled. Primary data was collected from sample respondents (actors) using checklists. Secondary data was
collected using desk review. The major data collected for the study was farmers’ access to land, labor, inputs,
credit, extension services, markets and technology/inputs/, farmers soybean production practices, technology use,
harvesting and post harvesting issues and agricultural output transporting, marketing, processing, consumption
and value addition issues. Soybean supply chains, market outlets, market share and market chain, major constraints
and opportunities in soybean production and marketing was also collected.

1.3. Method of data analysis

The qualitative and quantitative data collected from value chain actors through focus group discussion and key
informant interview was summarized using descriptive statistics. Constraints and opportunities of soybean
production and marketing/trade was also summarized for all actors.

RESULTS AND DISCUSSIONS

Soybean production and Marketing in North Western Ethiopia
Soybean production is estimated at 120,000 metric tons in 2020 (GTP, 2015). Growing local demand for cooking
oil, soy-based foods, and livestock feed forced soya bean production to boast. Future production is expected to
continue its upward climb to respond to rising consumer demand. Soybean production has more than tripled from
35,000 metric tons in 2011/12. Most of this growth in production was due to an increase in the area planted.
Besides, recent increase in price motivated farmers to expand the soya bean production.
In the specified study areas farmers increased their land allocation for the soybean production. Accordingly,
their technology usage regarding to soya bean production like fertilizer application, weeding practices, pesticides
application, clearing and managing the field is improving from time to time. Following this, the productivity of
soya bean is 1.5 to 2.0 ton/ha which is less than the national average of 2.1ton/ha. Most farmers do not use
inorganic fertilizer and the main reasons are they believe that their land is fertile, demand additional labor.
Based on agricultural office of Metekel and Awi-Jawi districts, the amount of soya bean produced was
739,040.2qt and 733,410 qt for the year 2018/19 production season respectively. Soya bean is also produced by
agricultural investors operating in these regions. In 2018/19, 28,497Qt of soybean was produced by three investors
in Metekel & Awi zones. Soya bean production in Metekel and Awi zone exceeds the national average target of
GTP target which is 812,420 quintal. It implies the country does have big potential for soya bean production and
in the near future, it is expected to be one of the largest producers of soya bean in Africa. In addition to this, more
than the GTP of Soybean output was transacted at two of Zones. This may indicated the Central statics should be
revised its methodology of study especially in soybean producing area.

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Table 2. Soya bean production during 2018/19 cropping calendar

No. District Area coverage Soybean Production Amount of soybean sold in Remark
in ha in quintal Quintal
1 Dangur 26,095 536, 101 385,101
2 Bullen 758 17,212 11,704
3 Dibate 23 467 303
Benishangul
4 Mandura 2,027 50,592.5 36,592.6
Gumuz
5 Pawe 7,109.6 122,973 92,229.75
6 Guba 592.75 9,813.2 6,574.85
7 Wombera 99 1,881 1,128.6
8 Jawi 18,613 733, 412.75 542,725.45 Amhara
Total 55,317 1,472,452 1,076,359.25
Source: Metekel zone & Jawi ARDO (2020)
Farmers usually plow soybean land one to three times. This is because they spray roundup herbicide to kill
the weed, and sow the soybean seed following single plow. Broadcasting is common method of sowing soya bean
in major production area.
Land clearing takes place between April and May. Soon after clearing, sowing is done between mid-June and
early July. Thinning and weeding, usually, takes place at the end of July and mid-August. Harvesting and threshing
are done from October to February. Soon after harvesting in January, the price gets very low. It was learnt from
the discussion that the price and demand of soybean was very poor for previous years. But since 2016/17 price
started to increase which at least covers their major production cost like seed. Overall, the average grain price of
soybean was Birr 8, 12, and 16 at low, medium and high price time in the year 2017/18. Usually the price reached
its pick time in April and May.

Characteristics of Respondents’
Now a day soy bean production is very common in different part of Ethiopia particularly Benshangul Gumuz.
Among Benshangul Gumuz zones’ Metekel zone is one of the potential and favorable to produce soybean. Metekel
zone is a low land and warm humid weather condition that favorable to produce soy bean crops. It was produce in
the zone for the last two decade extensively. Government organization takes the responsibility to innovate new
variety that has high productivity ability and disease tolerance like TGX and Belesa 95. Agriculture office at
different level collaborated with Research center to disseminated new variety popularize, scale up and scale out of
the new variety as well as to fill the gap of seed demand in Metekel zone.
Even if soy bean was produced extensively in the zone for the last two decade, the soy bean sector has a lot
of problems related to production, consumption, and transporting, marketing problems. To identify these problems
focus group discussion (FGD) and key informant interview (KII) was designed and conducted in Dangur district.

Composition of the Focus discussion groups in Dangur district

The focus group members’ were selected based on their experience on soy bean production in the last decades.
The group members contain eight and all are male headed households’. Ages of the group were ranges from 29
years old up to 70 years old with a mean of 40.13 years old. Education level of group members were three not able
to read and write while five of them were able to read and write that were ranges from zero class up to 4 classes.
Except one of them they were able to remember their phone number without seen their cell-phone. Experience of
group members on soy bean production were ranges from 3 years to 12 years old with average experience of 6.25
years. During 2017/18 cropping season the group member cultivated 17 ha and produced 252 quantal of soy bean.
Group member cultivated minimum 1 ha up to 7 ha with mean of 2.13 ha. Group members’ Production of soy
bean ranges from 9 qt to 95 qt with a mean production of 31.5 qt. Among the group member the one who gained
13 quantal of soy bean per hectar said that “the reason that gained minimum production was, during the maturity
stage my production was eaten by bird too much”. On contrast among group member who gained 70qt per 5 ha
said that “My cultivated land was virgin and fertile, even it does not give me as it was growing and looks like”.

Composition of the Focus discussion groups In Jawi district

The focus group members’ were selected based on their experience on soy bean production in the last years. The
group members contain nine all are male headed households’. Ages of the group were ranges from 25 years old
up to 56 years old with a mean of 37.56 years old. Education level of group members were six not able to read and
write while three of them were able to read and write that were ranges from zero class up to 7 classes. Except one
of them they were able to remember their phone number without seen their cell-phone. Experience of group
members on soy bean production were ranges from 3 years to 11 years old with average experience of 5.11 years.
During 2017/18 cropping season the group member cultivated 10.5 ha and produced 189.6 quintal of soy bean.

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Vol.90, 2023

Group member cultivated minimum 0.5 ha up to 2 ha with mean of 1.17 ha. Group members’ Production of soy
bean ranges from 9.6 quintal to 45.6 quintal with a mean production of 21.07 qt. the focus group discussion
participants(FGDP) said that “ Natural hazard was affected their Soy bean production during the cropping season”.
66.67 %( 6 out of 9) FGDP told that our soy bean production was decreased due to snow rain.

Trend of Actors and Institutions of supporting soy bean production

Soy bean production needs special integration within the producers and supporting staff to produce at its potential
and marketing at appropriate producer price as well as to benefit the primary producers. Soy bean as one of cash
crops it has many stakeholders’ and supporting staffs should integrated and work collaborated to success soy bean
crop as a sector.

Agricultural Office Role on soybean production

Among the key supporting sector District Agricultural office is one of the supporting staff by facilitating to
supplying of fertilizer, supply seed, access of market information, Agronomic information, credit, technical advice
and training. District and kebele experts were provided different services to soy bean producers during the 2017/18
cropping season. Among the service provided were supplying of fertilizer, supply of seed, and access to market
information, Agronomic information, credit, technical advice and training
Among these services facilitating of market information, access to credit special for Muslim community and
training was weak linkage within the primary producers. The main obstacle to access credit for Muslim community
is religious related problem. Among the group member said that “we need credit without interest that will pay its
principal only later based on our agreement’’. According to his thought this modality should supplied to Muslim
community. In addition to this due to informal credit soy bean producers forced to sale their product after harvest
immediately at low price to repay the informal credit. Train related on soy bean production methods and marketing
system was weak linkage at 2017/18 cropping season. During the first introduction path there were a lot of training
and supports related to soy bean production. However, it decreased from time to time. Market information was
also weak during 2017/18 cropping season. No one facilitate to sale our soy bean product at EXC market or
formulate modalities to sale directly to terminal markets.
During 2017/18 cropping season Agricultural office play big role on supplying fertilizer, seed and agronomic
information and technical advice to soy bean producers. Demand of fertilizer and seed were identified and collected
during the off season. Based on the identification and collected demand of fertilizer and improved seed variety,
fertilizer and seeds were distributed to the producers. More or less it was medium service.
During the cropping season Agronomic information and Technical advices were given to producers. At kebele
level there were different demonstration practices at FTC and Model farmer levels. Farmer experience sharing was
conducted at kebele level on TGX and belesa 95 variety. But there was not continuous mentoring and evaluation
and did not address far area from center of kebele.

Research Center Role on soybean production

Soy bean production could be increased by using different technology methods. Some of them are using new
productive and disease tolerance variety, sowing by row, using recommended fertilizer and seed, using
appropriated agronomic practices. Research center give high priority on new variety release in cereal and oil crops
particularly soy bean crop in the study area. Among the newly released varieties were pawe1, pawe2, pawe3, TGX
and Belesa 95. These varieties were disseminated and used by the soy bean producers to increase their production
and productivity levels. Research center was strong linkage on Generation of innovation, technology and providing
trainings.
In addition this research center organized pre extension demonstration and stakeholder conductive meetings.
This is give good opportunity to soy bean producers to select appropriate variety to their particular land. Among
group members said that “TGX or “Achiru” is suitable for clay soil type and started seed at the bottom level where
as belesa 95 or “rejimu” is suitable for red soil types’’. Research center try to link soy bean seed producers with
other seed demanders. But it is weak to link others soy bean producers on oil factory and terminal markets.

Cooperative Role on soybean production

District cooperative has been delivered improved seed, fertilizer as well as has been bought soy bean products as
appropriate price to link producers with terminal markets. Among the services input market service and
information was better service during the cropping season. According to FGDP the services provided by
cooperative was weak linkage with beneficiaries. Except input market service and information all services ( output
market service and information, Processing service and information, facilitating and collection soy bean
production and financial service linkage) have been provided by cooperative were weak. The reason behind is that
cooperative has not been organized very well in terms of skill human power as well as financially.

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The Role of Marketing Agency, University/colleges, Seed enterprise, Processor and Exporters
Marketing Agency, Nongovernmental organization, Universities, seed enterprises exporter and processors
expected to support massive role on the soy bean production and productivity. Unfortunately NGOs, university,
formal seed enterprises, processors and exporter were completely absent near the study area. As result that all
service that has been expected to deliver was not delivered during 2017/18 cropping season.

Role of Informal Seed suppliers

Many farmers prefer to buy seed from relative and neighbor farmers.
Among focus group members one member said that “I sold 20 quintal of soy bean product for seed’’. This is
due farmer to farmer experience sharing conducted at my soy bean farm during 2017/18 cropping season and
farmer prefer my product and asked to sell for seed. Many of Soy bean producers prefer informal seed source to
buy easily without many in governmental seed supplies.

The role of Agro-service dealers

In the study area, it is common buying and selling of agro-chemical supplier with many formal traders in the near
town of Manbuk. The traders buy from terminal and National markets and supply to soy bean producers as well
as to the whole the district smallholder farmers.
According to the focus group discussion participants assured that they buy agro-chemical from the district
traders. Their preference were Glay phosit chemical or ‘’metro geday’’. According to the participants Not only
preference but also bought and spraying the chemical after one ploughing to eliminate existing weed and growing
of new weeds. The agro dealers were relatively medium support to the soy bean producers by supply and giving
of oral advices during 2017/18 cropping season. However, agro dealer were not support in providing of training,
providing credit on agro-chemical at all.

The role of traders on soy bean producers

Dangur district is among the potential soy bean production in Metekele zone. The district leads from the seven
district of Metekel zone in terms of soy bean producers and area coverage in During 2017/18 cropping season.
Many of traders stared their business based on their districts potential. Formal traders in district only support in
terms of purchasing soy bean grain, informal credit service for the purpose of to sell his product to himself.
However, formal traders were not provide service to soy bean producers in terms of providing information, contract
agreement on grain supply, facilitating market linkages for the benefit of soy bean producers and identification of
potential markets.

Availability of Infrastructure in study area

Focus group participants agreed that most of infrastructure has been paved and installed at District levels. However,
at kebele level there is only temporary road that functioned at winter season. Electricity, mobile network, Farmer
training center, market place and storage facilities were there. Among the FGP participants said that “Two of them
have private storage facility for their soy bean product”

Production and Marketing of Soy bean at Misreta kebele Dangur district

Soy bean production was started since 1998. Soy bean was introduced to the kebele by collaboration of Dangur
District Agricultural office and Pawe research center. During that time price of soy bean was 1.5 birr per kilo.
Even there was not demand of soy bean products District, terminal and national markets. Among the FGP said that
“I have been sold my soy bean product for chicken feed at 1.5 birr per kilo”.
The productivity of soy bean in Misreta kebele was ranges from 15qt/ha to 20qt/ha During 2017/18 cropping
season. The producers sold their soy bean product 76.92 up to 100%. They left 0% - 23.08% of their products for
seed based on their products purity. Even they sold their product 100% if they were untrusted about their products
purity and bought seed from other farmers or Governmental organization. According to the FGP they have been
produced 252 quintal of soy bean during 2017/18 cropping season. FGD members’ have been produced 252 quintal
of soybean and 237.2 quintal (94.12%) were sold in the district and farm gate market levels during the cropping.
Seven out of the eight participants’ left 14.8 quintal (5.87) of seed for following year. According to participants of
FGD, even if they have experience of consumption of soy bean products in “Dabo, Kollo, Wot, and injera”.forms
they were not consumed at all during the cropping season. Only one participants said that “I plow two times
including plating” the rest ones (87.5%) of FGD participants have been plowed only once including planting. The
land rented in from Gumuz peoples for soy bean was virgin and fertile. . FGDP’s soy bean production and
marketing trends in the cropping season was illustrated as follow

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Vol.90, 2023

FGD's Soy bean Production and marketing in Dangur

district
Soybean Output 200

150
in Quintal

100

50

0
1 2 3 4 5 6 7 8
Soy bean production 9 10 13 15 15 15 80 95
Soy bean Sale 8.4 9 10 14.2 14 13.8 76 91
Soy bean Area 1 1 1 1 1 1 7 4
Fig1 Soy bean production and marketing in Dangur district

Production and Marketing of Soy bean at Argabo kebele Jawi district

Soy bean production was started since 2008. Soy bean was introduced to the kebele by collaboration of Jawi
District Agricultural office and Pawe research center. During that time price of soy bean was 4 birr per kilo. Even
there was not demand of soy bean products District, terminal and national markets.
The productivity of soy bean in Argabo kebele was ranges from 8 quintal/ha to 30qt/ha During 2017/18
cropping season. The producers sold their soy bean product from 84.38 up to 95.37%. They left 4.63% - 15.62%
of their products for seed based on their products purity. Even they sold their product 100% if they were untrusted
about their products purity and bought seed from other farmers or Governmental organization. According to the
FGP they have been produced 189.6 quintal of soy bean during 2017/18 cropping season. FGP have been produced
252 quintal of soy bean during the cropping and 174.10 quintal (91.83%) were sold in the district market levels.
Nine participants’ were left 15.5 quintal (8.17%) of soy bean seed for following year. According to participants of
FGD, even if they have experience of consumption of soy bean products in “Dabo, Kollo, Wot, and injera”.forms
they were not consumed at all during the cropping season. All of the participants plough two times including
planting, 100% plant in row, 100% of them used their own saved seed, they recognized soy bean were improved
their soil fertility when they sow. soy bean improved soil fertility through decomposing of its leaf in the soil. They
were used 60 up to 100 kg of seed per ha based on the seed size, planting method and soil fertility of cultivated
land. FGDP’s soy bean production and marketing trends in the cropping season was illustrated as follow

FDG's Soy bean production and Marketing in Jawi district

100
Soybean Output

90
in Quintal

80
70
60
50
40
30
20
10
0
1 2 3 4 5 6 7 8 9
Soy bean production 45.6 18 18 14.4 9.6 21.6 14.4 24 24
Soy bean Sale 42.6 17 16 12.9 8.1 20.6 12.9 22 22
Soy bean Area 1.5 0.5 2 0.75 1 1.5 1 1 1.25
Fig2 Soy bean Production and marketing in Jawi district

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Soy bean seed rate and method of production

Row planting was not new for FGDP particularly row planting of major cereal and oil crops like maize, finger
millet, sorghums, soy bean and groundnut. But due to shortage of labor during peak sowing period and demand to
cover large cultivated land by cereal and oil crops farmers prefer broadcasting planting method.
Two of FGDP have been sown their soy bean land in row planting where as six of them (75%) have been
sown in broadcasting planting methods. In addition to this three of FGDP or 37.5% were used improved seed soy
bean variety from research center while the rest of them were used their own saved seed of soy bean. Both
improved variety and own saved soy bean producers have been sown 65 kg/ha. According to their experience
determined their sown period. When soy bean sown between June 20 to July 10, it give relative high yield. Besides
sown of soy bean has high benefit on soil fertility improvement. 100% of FGDP assured that soy bean treated our
land through improvement of Nutrients that needed by plants. Among the FGDP said that “soy bean improve soil
fertility through fix nitrogen’’ his answer was unexpected from farmers.

Gender Role of Soy bean production

Participation of gender on soy bean production depends on culture, location the farm land whether it is near or far,
labor division like male must worked at field and women must worked home. Culturally and in tradition way of
think Females considered as simple and homestead workers. Based on these reasons women participant only on
soy bean production process of planting and weeding whereas did not participate directly on land preparation,
harvesting, and threshing selling soy bean pesticide application. However, women participated on decision making
of how much to sell when and where to sell and control over the income gained from the sold of soy bean by
discussed with her husband. Youth has more half role in both activities of soy bean production process except
decision making and income control over the gained income from soy bean.

Rate of inputs used for soy bean

Soy bean production and productivity can be increased through usage of recommended of DAP/NPS, Urea, Bio
fertilizer, Compost/Manure Herbicides and Fungicide if disease has been occurred. According to FGDP except
herbicide (100% used), all of members were not used (100%) all inputs like DAP/NPS, Urea, Bio fertilizer,
Compost/Manure and Fungicide during cropping season. the reason why not used these input were their soy bean
was virgin and fertile. Producers prefer pre-emergency herbicide method of weeding and 100% them were used
this method due to high control not only on the existing weeds but also on new emergency weeds for present and
following cropping seasons. 87.5 % weed their soy bean farm once due to using of pre-emergency weeding
practices.

The main constraints of soy bean productions

Soy bean production faces different obstacles to produce effectively and efficiently. Producing the required output
within the recommended of inputs and agronomic practice. Producing efficient soy bean product exhibits’ the
producers as well as the country’s economy as whole from additional inputs costs and increased his/her annual
income. However, producing efficient product is not cinch activities due to human and natural factors. Especially
smallholder soy bean producers used rain fed cropping season. According the focus group discussion the
bottleneck of soy bean production was
- Poor linkage between exporters, processors, producers and consumers
- Low soybean output price
- Fluctuated of soy bean output price from 7 to 22 birr per kilo during the cropping season
- Lack of fair land distribution and certified cultivated lands.
- Lack of cultivated land. Gumuz peoples are the holder of the land by hereditary system
- Lack of certified private seed multiplier
- Limited usage of newly released soy bean improved varieties

The cropping calendar of soy bean production

Soy bean producers determined their sowing periods from June 20 to July 10 based on their experience. Normally
this is in line with researcher recommendation of sowing period of soy bean. According the FGDP perception and
practical experience the cropping calendar of soy bean production is illustrated with tick in the following table.

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Vol.90, 2023

Table 3. Cropping Calendar of Soybean Production

Main Activities Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug.
Land clearing  
First plough 
second plough
Third plough
Sowing  
Fertilizer application  
Thinning  
Weeding  
Harvesting  
Threshing 
Marketing  
Low price   
Medium price 
High price  
The price of soy bean was fluctuated from 8 birr/kg to 17 birr/kg during 2017/18 cropping season. The
minimum price was occurred during December and the highest price was occurred in May for one day only.

Access to extension service of soy bean producer

Soy bean producers how to produce, how many qt to produce for whom to produce with quality and quantity of
soy bean needs great effort from governmental bodies. District agriculture office and research center try to deliver
different training to capacitate skills and knowledge of soy bean producers. 37.5 % of the focus group discussion
participants(FGDP) have been accessed to soy bean production, soy bean postharvest handling, seed production,
expert follow up and participated in field days whereas 62.5 % of FGDP Have not been accessed to these services
during the cropping season. More ever 50 % and 25 % of FGDP have been accessed to soy bean food preparation
and extension materials like manual and leaflet. However, FGDP have not been accessed to input facilitation and
Medias at all
Even though 50 % FGDP of soy bean producers have been trained on soy bean food preparation method, no
one of them was used soy bean for consumption at Home during the cropping season. Among the FGDP said that
“first it was our weakness”. The main reason was it has sour taste when we use as food in terms of bread, “Kollo”,
and “injera “, Second training was given to men but women should be trained for the future.

Market segment of soy bean

Soy bean producers sold their soy bean product at farm gate and Mambuk town the capital city of Dangur district.
According to FGDP producers prefer to sell their product for those whose traders lend money during planting
period. Based on this they sold their products to Wholesale traders, temporary trader using Isuzu/car/ and
cooperative respectively according to their importance. Temporary traders bought at farm gate level whereas
wholesaler and cooperative bought at district and kebele level. Out of 237.2 quintal of soy bean sold during the
cropping season, 154.2 quintal, 75 quintal and 8 quintal was sold to wholesalers, temporary traders and cooperative
respectively. During the cropping season the market share of wholesalers, temporary traders and cooperatives was
65.01%, 31.62% and 3.37 % respectively. Soy bean producers try to negotiate with traders to set the price of their
product. Producers seek price of soy bean from farmers, traders and even terminal market price of soy bean using
phone. Even if they were set the soy bean price, they were force to sell due to debited credit before planting of soy
bean. According the FGDP 100% of them know the price of soy bean before sell.

Source of soy bean market information

Smallholder producers search the current market price of agricultural commodities through their personal
observation, using their phone, from neighbor/friend who visited the last market day and customer traders.
According the FGDP all of source of information was really reliable. On average the district market place of soy
bean takes 25 to 30 minute. 75 % of FGDP grading their soy bean products before selling. This practice is common
in order to sell relatively high price. Besides producers of good quality of soy bean have been gained premium 20%
of price increment. 75% of FGDP have been got premium for their good quality of soy bean product during the
cropping season.
Traders lend money to the soy bean producers from 1,000 up to 10,000 birr without interest rate in order to
sell their soy bean products after harvest during the cropping season. They agreed each other informally at the
growing stage of soy bean farm. The price of soy bean was increasing year to year staring 7 per kilo reaches 17
birr per kilo now.

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Vol.90, 2023

Production of soy bean trends

Soy bean production has been increased up to now through the increment of allocated land for soy bean and
management of soy bean field very well such as row planting, weeding and using herbicides. 100% of FGDP has
been increased their soy bean production via the increment of allocated land for soy bean and management of soy
bean field very well. However none of them have been used fertilizer for soy bean during the cropping season.
62.5% of FGDP argue that I will decrease soy bean production by little allocation of land to soy bean whereas
37.5% said that I could increase my production with expectation of increment of price. On the other side 62.5% of
FGDP I will not change my production by allocate similar cultivated land for soy bean while 37.5 % said that I
will changed my production status.
37.5% of FGDP prefer the variety of TGX and 37.5% of Belesa 95 whereas 25% were indifference between
the two varieties according their farm land fertility. TGX demander indicated their preference criteria was it started
fruit setting at the bottom plant.

Criteria of traders to buy soy bean product

Traders graded the soy bean product by their imaginary. First prefer relatively large size of soy bean product that
did not mix with any crops and sand. Next prefers any product of soy bean that has not been broken seed, rust seed
and wet seed. 100% of FGDP has been stored soy bean in private storage with expectation of price increment.
Only one FGDP (12.5%) has been occurred loss of 0.5qt soy bean during the cropping season.

Processing and consumption of soy bean

100% of FGDP said that we did not know any soy bean processing factor. So it is difficult to sell our product to
processing factor directly without knowing their address. Soy bean products have been sold at district and farm
gate market level for local traders. A lot of trained have been given on food preparation of food from soy bean.
37.5 % of FGDP has been trained on preparation of Dabo, Injera, Kita, Kukus and Kollo from soy bean. Even if
different efforts made, soy bean producers have not been consumed soy bean during the cropping season.

Major constraints of Soy bean production and marketing constraints

Soy bean production faces different production and marketing problem. FGDP prioritized these bottlenecks of soy
bean production and marketing according their influence to the annual income.
Table 4. Problem analysis of Soy bean production and Marketing constraints
Problem Types of Cause of problems Effect of Possible Actors that
ranking problem problems solution will solve this
problem
1 Lack investor Non–competitive price Decrease Investors Agriculture,
participation on and shortage of edible producers should launch Investor,
soy bean oil income and oil medium or transport and
processing consumption large soy bean trade office
factory
2 Lack Nearest soy Non–competitive price Decrease Government Agriculture,
bean plant and shortage of edible producers should launch Investor,
oil income and oil medium or transport and
consumption large soy bean trade office
factory
3 Harvesting Postharvest loss of soy Decrease Introduce soy Private investor
machine bean standard and bean harvesting and
price of soy machine cooperatives
bean product
4 Lately seed Inaccessible to Decrease soy Timely supply Agriculture,
supply and off improved variety and bean yield and improved cooperative
season training agronomic practices , food security of variety and and research
Exposed to birds HHs conduct off centers
season training
5 Labor shortage
6 Lack of linkage Low price of soy bean Decrease soy Link with EXC Agriculture and
with EXC bean producers transport and
trade office

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ISSN 2422-8451 An International Peer-reviewed Journal
Vol.90, 2023

Problem Types of Cause of problems Effect of Possible Actors that

ranking problem problems solution will solve this
problem
7 Lack of credit for Exposed to informal Forced to sell formulate Agriculture and
Muslim money lenders after harvest religious match cooperative
community at immediately credit to
free interest rate Muslim
community
8 Limit field level
technical service

Soy bean Marketing Actors at Dangur District

Dangur Trade and Transport office has been delivered many services to smallholder soy bean producers as well
as soy bean traders. It has been given 49 soy bean licenses to sell and buy soy bean during the 2017/18 cropping
season. Moreover it tries to link 3 new soy bean traders with two soy bean food processing factors. 113,997 qt was
sold to terminal market via 49 soy bean traders during the same cropping season.
It gives soy bean trade license based on the requirement of concert flour warehouse, working capital, asset
mapping, packing sack machine and sometimes considered at least one employed quality control expert. It does
not consider longevity, success, trade volume and trends, sanitary certification and trade skills as requite to involve
in soy bean business.
The district office has been established three soy bean marketing centers during cropping season. These were
Manbuk o1, Jemtiya and Kota soy bean marketing centers. Selling of soy bean out of these market centers is a
crime. Approved of this regulation decreased Number of brokers, cheating kilo and relatively increase producers
price. In addition to these services, three new soy bean traders linked with terminal soy bean market, created legal
transport service providers, creating awareness, posted three times per week current National soy bean market
price at soy bean market centers and providing technical book keeping methods. As district office we will like
expand the market centers to Ankesha and Jaba kebele.
There were different regulations regarding to soy bean trading. Among these Soy bean never sold out of these
markets, specific trade license method like soy bean, sesame and Masho only, punishment method, announcement
of illegal soy bean traders has its own benefit package. Mean 60% of total illegal bought price given to announcer.
These rule and regulations has been launched new road of negotiation between producers and traders to set price.
Traders paid seven birr for sport and municipality per quintal. Our district has three formal market centers
like Manbuk o1, Jemtiya and Kota soy bean marketing centers and two informal marketing centers like Ankesha
and jaba kebeles. Addis Ababa, Adama and Bisheftus, Gondar city are more potential soy bean consumption areas.
Soy bean trade transaction points in Dangur district
Manbuk o1 Manbuk town Addis Ababa exporters/ Oil and Food factory
Jemtiya Manbuk town Addis Ababa exporters/ Oil and Food factory
Kota Manbuk town Addis Ababa exporters/ Oil and Food factory
Ankesha Jawi town Addis Ababa exporters/ Oil and Food factory
Jaba Jawi district Addis Ababa exporters/ Oil and Food factory
Abay dar kebele/dangur district/ Bamur town/Quara disstrict Gondar city/ oil factory/
Abay dar kebele/dangur district/ Bamur town/Quara disstrict Gondar city Addis Ababa
exporters/ Oil and Food factory

Soy bean Marketing Actors at Jawi District

Jawi Trade and Transport office has been delivered many services to small holder soy bean producers as well as
traders. It has been given 121 new soy bean licenses to sell and buy soy bean during the 2017/18 cropping season.
1,000,098 qt was sold to terminal market via 121 soy bean whole traders and cooperatives during the same
cropping season. This traded quantity is greater than the 641,393.5qt of soybean produced in the district during
the cropping season. This is may be due to improper measuring of the soybean sown area as well as the quantity
produced that May be rise from knowledge and skill gap of experts. It gives soy bean trade license based on the
requirement of warehouse, trade license(tin Number), Kebele identification card, working capital, asset mapping,
and sometimes considered at least one employed quality control expert. It does not consider processing machine,
longevity, success, trade volume and trends, sanitary certification and trade skills as requite to involve in soy bean
business.

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ISSN 2422-8451 An International Peer-reviewed Journal
Vol.90, 2023

The district office has not been identified potential soy bean marketing centers during cropping season. But
now it identified eighteen soy bean marketing centers and sends to Amhara trade and transport beauro to be
established for 2008/19 cropping season. These are Finkika, kezkazit, kentelie and bakksa of soy bean marketing
centers. There were not new trading regulations regardless to soy bean product. Rather they were given license of
soy bean under bean crops trading system.
Traders paid ten birr fee for service per quintal. Jawi district has not been demarked formal soy bean market
centers. But now the districts identify eighteen potential soy bean trade centers for 2018/19 cropping season. The
market centers are sending to Amhara trade and transport regional beauro for formal establishment. These are
divided in two main trading routs. Kezkazit and Kebtelie kebeles are Qura rout and other sixteen kebeles are
Fendika town routs.Fendika is the capital city of the district. Addis Ababa, Adama and Bisheftus, Gondar city are
more potential soy bean consumption areas.
Soy bean trade transaction points in Jawi district
Finkika Fendika town Addis Ababa exporters/ Oil and Food factory
Others 15 Kebeles Fendika town Addis Ababa exporters/ Oil and Food factory
Kezkazit Quara town Gondar city Addis Ababa city exporters/ Oil and
Food factory
kebtelie Quara town Gondar city Addis Ababa city exporters/
Oil and Food factory

Opportunities of soy bean Business

Entered to enforced production trading method
It is on the way to enter to Ethiopian commodity exchange
Increasing in production and productivity
Large amount of cultivated land Suitable for soy bean production
Increase trends of farmers soy bean production
Availability of Community based seed multipliers
Availability of improved seeds
Increased number of soy bean traders
Storable ability
Soy bean production requires less amount of inputs like fertilizer and labor
Used as raw material for oil and food factory
Challenges of soy bean Business
Lack of infrastructure to connect kebele with main road
Low interest of soy bean trading license in remote kebeles especial in Jaba, Ankesha and Abay ber kebeles
Shortage of loanable capital
Shortage of improved seed particularly jawi district

Role of Financial service providers in Dangur district

Finance is the engine of business. Business men’s or producers can easily bought raw materials to run their business
timely. At the district level credit was accessed to smallholder farmers through cooperatives and dangur micro
finance institution. Dangur micro finance access credit to smallholder farmers through purchase of fertilizer,
improved seeds and directly in cash to run their own business plan. The district micro finance institution has been
allocated birr 4,399,565.38 for purchasing of fertilizer based on the demand identified. Fertilizer was disbursed to
smallholder farmers as credit during the cropping season. However it has not been given soy bean specific credit.
According the institution manager Mrs. sisay, small scale farmers and traders or collectors were the main credit
targeted beneficiaries. The institution has 996 and 528 numbers of active savers and active borrowers during the
cropping season. Active savers were saved 50 birr per month and active borrowers lend money at 16% interest
rate. Its borrowing capacity was range from birr 5,000 to 30,000 according to their demand and business plan
profitability.
Cooperative is also another alternative financial institution in the district. It supplied fertilizers, improved
seeds, buying and selling of agricultural outputs. In addition these services it provides credit in terms of cash to its
rural saving credit members. Cooperative has not been giving training during the cropping season. Four primary
multipurpose cooperatives in the district established Dangur Abay Union in 2012 with birr 180,000 capitals. Now
it has ten primary multipurpose cooperatives with 2479 members (male 1983 and female 495). It was bought 1056
qt of soy bean product and supplied to terminal market during the cropping season. In addition to this 30 qt of
improved soy bean was bought and supplied to soy bean producers during the same season.

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 Journal of Marketing and Consumer Research www.iiste.org
ISSN 2422-8451 An International Peer-reviewed Journal
Vol.90, 2023

Opportunities and Challenges of Micro finance institution

The Micro Finance institution catalyzed the soy bean production and marketing institution by delivery different
services. It gives awareness creation training about the importance of saving, credit administration, its capital cost
or interest rate, the difference between banking and micro finance institution services. The institution served as
saving and credit delivery institutions during the cropping season. However it faces different opportunities and
challenges. These are illustrated as follow
Opportunities
- Trend of active savers have been increased.
- Trend of active borrowers have been increased
Challenges
- Shortage of capital for loan
- Lack of branch at kebele level to expand the service
- Allocation of credit for un intended business plan

Conclusion
The study was conducted at Jawi district Amhara region state and Dangur Benshangul Gumuz Regional state in
North western Ethiopia, with the purpose of investigating the major opportunities and challenges of soybean
production and marketing along different actor of soybean sector to boost the production and productivity of
soybean as well as to benefit soybean producers by focusing on production and marketing of soybean sectors and
linking in to agro-industries. According to the focus group discussion and key informant interview conducted on
soybean producers and soybean researchers, keble and district experts even though the soybean sector has many
opportunities such as require few plowing frequency, gives high yield per hectare in the study area than other
beans, low organic fertilizer, storable ability, used as input for oil, food and feed industries, the sector faced with
low and fluctuated output price, poor linkage among soybean actors, lack certified private or governmental soybean
seed multiplier, limited usage of newly released soybean varieties particularly Pawe1, Pawe2 and Pawe3 which has
high yielding and oil contents, lack of contractual farming systems.
Although different market sectors were involved at district soybean marketing, the sector faced different
challenges at district level such as lack of standardize ware soybean ware house, soybean market centers were nor
well delineated and functioning, does no well cleaning checking at ECX centers and it take time to unload and
expose to additional costs for traders. Despite trader’s faces different challenges to transact their soybean
commodity, they are more profitable than soybean producers in collectivity that earned 104 ETHB per quintal with
simple transaction costs.
This needs to be faire soybean sector in order to continue the production and marketing of the sector. Hence
governmental organization should focus on productivity and production of soybean in the study area in order to
supply enough amount of soybean output to domestic agro industries as well as to fill the demand of edible oil in
the country. Therefore to stimulate the soybean sector GO and NGO should be focused on the strong linkage
between soybean producers and oil and feed industries, soybean marketing agents and soybean seed multipliers
with price ceiling.

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