IAO’s project “Value chains in Oromia”
In the framework of IAO’s project “Value chains in Oromia”, a contract has been signed for the supply of wheat between 7 cooperatives and unions of farmers and two Ethiopians companies producing pasta. Last year a similar agreement was reached between farmer groups and private companies. The event has confirmed the importance of a more effective link between the cooperatives and the private sector.
The quantity sold (about 23,000 tons) was three times higher than last year and a new private company has joined the agreement as a proof of benefits for the private sector of buying directly from cooperatives. These results are encouraging particularly for the farmers involved as they can sell their products at competitive prices and acquire new knowledge in terms of how to access the markets.