From Durum Wheat Seed to Pasta: Prospects and Challenges of Pasta Producers in Ethiopia
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Date
2015-06
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Addis Ababa University
Abstract
This study aims at exploring the challenges and prospects of Ethiopian pasta processing sector from the diverse socio-economic setups of smallholder farmers to commercial large-scale pasta factories. The study was conducted in 14 Pasta producing firms among them, Kality food Share Company, Dire Dawa Food complex and East Africa Holding were the leading manufacturer. The total pasta production and import supplied to the local market was about 69,420 tons. Demand for pasta has been growing at an average rate of 22.7% per annum. About 63 % of the market, however, had been supplied by local producers with an average growth rate of 9%per annum. Both quantitative and qualitative approaches were used in the course of analyzing the problems. Both primary and secondary data were collected using questionnaires, interviews and document reviews. Results showed that the major challenges of local pasta producers were the shortage of principal raw materials from local market, huge import costs, under capacity utilization, lack of attention, ineffective marketing to link durum growers to food industries, globalization and increasing competition, poor production technologies and shortage of working capital, are among some of the challenges faced by pasta manufacturing companies. In general, the industry is plagued with a number of constraints and the country remains a net importer of raw material (durum wheat) and processed pasta products. There were also opportunities for pasta producers; rapid urbanization where citizen adapting new life style for which pasta is perfect, large population offers huge market potential for pasta products, presence of unsatisfied demand, presence of pasta on the table of families was considerably increasing, export market potential, demand for pasta growing in the domestic market faster than for any food staff (22.7% per annual), the favorable climatic condition and suitable agro -ecologies to produce principal raw material were among the opportunities. The absence of favorable policies and weak linkages among the different actors in the pasta value chain was considered to be another important factor that negatively affects the pasta industry development in Ethiopia
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Pasta products, opportunities, challenges