Wheat Sourcing Practices And Challenges Of Mills Industry In Ethiopia
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Date
2018-04-06
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Addis Ababa University
Abstract
Mills firms in Ethiopia couldn`t utilize their milling capacity due to lack of enough wheat. This research assessed the sourcing practice and challenges of mills industries in Ethiopia. To this end, the percentage of the milling industry capacity utilized in this sub sector was assessed, and investigated the purchasing and procurement capacities and capabilities of firms. Qualitative and quantitative research approaches were used. Primary and secondary sources were employed. Under this study 80 mills firms located in five regions (Addis Ababa, Amhara, Oromia, Tigray, and Southern Nation Nationality Region) covered with both stratified and random sampling techniques. Firm’s administrators were formally interviewed. The researcher used z-statistics and Analysis of Variance and other relevant tests in order to estimate the population mean. And the research finding recognized that mills firms in Ethiopia utilized as below 22 percent of their milling capacity due to lack of enough wheat. And unable to establish and implement capacity and capillarity on their purchasing function. It lastly affected the firms` expansion on their product line, unable to maintain their employer, and unable to compete in the domestic and international market (especially penetrate in neighbors country market). In order to strengthen the industry competitive capacity in the long run government should facilitate commercial wheat farming to increase production and supply sufficient wheat. But for the short run government should allow import of wheat in clustered mills association. Furthermore, millers should establish and implement capacity and capability of purchasing and procurement functionality
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Sourcing, Purchasing Capacity, Purchasing Capability