October 21, 2021

Market Linkages to Serve Base-of-the-Pyramid Consumers

Ethiopia

2SCALE in Ethiopia is working with different Farmers’ Cooperative Unions focusing on different commodities that can bring positive impacts for smallholder farmers, youths, women, and low-income (base of the pyramid/BoP) consumers.

At present, following the international (i.e., COVID) and national (i.e., political and economic stress) crises, low-income (base of the pyramid/BoP) consumers in Ethiopia are being economically challenged to live decent lives.

Similarly, while acknowledging the increasing burden and challenges low-income consumers in Addis Ababa are facing to feed their families, 2SCALE initiated dialogue with relevant actors to identify potential collaborations.

Accordingly, establishing market linkages between Farmers’ Cooperative Unions working under 2SCALE partnerships and consumer associations operating in Addis Ababa was identified as strategic market linkage plan. Consumer associations are vital distribution channels to reach urban low-income (BoP) consumers.

Through such market linkage systems, it is expected to improve the major challenge of low-income (BoP) consumers living in Addis Ababa i.e., getting nutritious food commodities at affordable prices. The system will also assist to improve living situations of farmers while ensuring sustainable market and income to their produces.

Following up on this, on July 23, 2021, a market linkage platform was facilitated by inviting relevant actors.

Three farmers’ cooperative unions i.e., Kesem, Bench Maji, and Bore Bako were included to express their potential commodities (Teff, honey, and maize respectively) and supply capacities. These farmer unions are already working with 2SCALE under different partnerships. On the other hand, representatives from Addis Ababa Consumer associations participated to express the potential demand and interest.

“A sustainable market linkage with farmer unions will help us to serve the low-income consumers with quality ensured and traceable commodities. In addition, it will enable us to sell at affordable prices, as the involvement of brokers will be limited, and additional transaction costs will also be reduced because of the trust build through such market linkages,” said Mesfin Wolie, the Bole Consumer Association Manager.

Amakele Zewdu, the Kesem Union Manager said, “such market linkage will help us to ensure sustainable market to our farmers.”

On this first market linkage platform, besides to fruitful discussions regarding how to match the potential supply and demand of commodities, it was managed to establish a linkage amounting to 2,600 quintals of Teff and 770 kg of honey.

Moreover, the event created good opportunity for the different actors to share common objectives through more collaboration spirit to improve the challenges of low-income (BoP) society.

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