Mung Bean Value Chain Analysis in Ethiopia

Abstract

Mung bean is a cash crop that has high export potential. Ethiopia is among the top ten exporters of mung bean in the world. The crop has the potential to be produced on low moisture areas of the country (low lands), during short season rainfall periods (Belg) and under irrigated conditions. The study aimed to analyze benefit cost ratio of mung bean production, identify key role and relation among the mung bean value chain actors and their challenges, assess the trends in production and export of mung bean. Household survey data were collected from 100 households in north Shewa and north Wollo zones in eastern Amhara region. Key informant interview conducted with north Shewa, Oromia special and North Wollo zones in Amhara region.  Additional KII were conducted at various organizations like: Ministry of trade and regional integration (MOTRI), Ministry of agriculture (MoA), district level agricultural offices working on the crop, research center, Exporters, Ethiopian commodity exchange (ECX) and federal cooperative agency. Secondary data was used from central statistical agency (CSA) and customs office for time series data analysis. In addition, previous research works on mung bean studies were reviewed adequately.  The crop is highly nutritious and has high demand internationally. Mung bean is not part of the staple diet in Ethiopia, where more than 95% of the produce is being exported to several countries. The crop is highly attacked by weevils, where Purdue Improved Crop Storage (PICS) bag can be the best control method, though farmers could not access this bag with the size they want. Currently, in terms of area coverage and production, mung bean takes less than 0.5% and 0.2% of total grain crops in the country, respectively. However, its trends and potential growing areas are much higher than the current status and its benefit in terms of export earning is high. There is also limited supply of improved mung bean variety and its agronomic practices to farmers. Price for a ton of mung bean has increased between 2015 to 2018 from $1220 to $1720 USD. At farmers level the benefit cost ratio of mung bean is 4:1. Mung bean producer farmers are facing marketing problems related to price fluctuation, lack of storage facilities, and lack of access to markets. There was a parallel market of mung bean with price difference of 1000 birr higher per 100kg out of ECX compound in Addis Ababa. Hence, supply of improved mung bean seeds and agronomic practices, seed storage PICS bags, and support in market access both domestically and internationally is advisable.