Supply Chain Assesment of Sesame Oilseed From Humera to Djibouti Port

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Date

2011-09

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Addis Ababa University

Abstract

Ethiopian’s sesame oils product demand has been growing in the last couple of years. In order to stay competitive and cope up with the world market, problems on productivity, logistics, quality, infrastructures and others should be given due attention so that the country can use its potential on this sector and bring foreign currency, which will have huge influence for the economic development. Therefore, it is crucial to study the supply chain of sesame from farm to port in order to point out bottlenecks and proposes mitigation measures. The study was focused mainly on Kafta-Humera woreda where the survey was conducted using questionnaires to gather information from stakeholders such as farmers, retailers, exporters, transistors and ECX officials. Farmers stated that they are encountered with shortage of capital/lack of loan services, high price of inputs and labor, poor roads, poor network system for information exchange, collision between retailers to deny them fair price. As to the retailers the main problem that they face were shortage of capital and credit services to purchase sesame, poor quality sesame supplied by farmers, poor network system to exchange information, delay at ECX due to problems of weighbridge and automated system failure costs them expensive transport prices and waste of time and energy and unawareness on how much tax is enforced on them. Exporters stated that they face problems like forced to pay high transport prices due to delay at ECX, less quality of sesame from anticipated, in accuracy of weighbridge system, poor roads to Port Sudan that impose extra transportation and storage cost, problems of theft and adulteration along route to Djibouti, delay of vehicles at customs branch offices due to automated system failure, delay of vehicles due to improper schedule of vessels and shortage of containers at Djibouti port. Solutions recommended are improving credit services, building capacity of ECX, improving road, storage and network system conditions, controlling theft and adulteration, containerizing sesame at exporter’s warehouse, improving conditions at port are believed to improve the supply chain of sesame.

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Keywords

Supply Chain Assesment, Humera to Djibouti Port, Sesame Oilseed

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