(Wageningen University & Research) – Ethiopia is among the main sesame producers in the world. Sesame provides a living for over 350,000 farmer households. After coffee, sesame is the second agricultural export earner for Ethiopia. The Benefit-SBN project funded by the Dutch Government, takes up the challenge of improving the performance of the Ethiopian sesame sector. Project partners now share experiences, lessons and recommendations through the dissemination of nine ‘lessons learned papers’.
Anteneh Mekuria Tesfaye, assistant manager at Benefit-SBN: ‘There are three main pillars in this project, and for each pillar we’ve developed lessons learned documents. We work on many different aspects of the sector; ranging from financial literacy of farmers to good agricultural practices, but also agri-finance, marketing of sesame and rotation crops and information management systems. When you look at financial literacy for instance, you can see many farmers have been trained and increasingly see their farm as a business. They’re starting to do cost-benefit analysis and make informed decisions. We see real change here, and when you see this change you feel happy- we’re going somewhere.’
Guarantee fund & marketing for sesame producers
One of the most remarkable results so far, has been the promotion of cooperative marketing. Anteneh, ‘With a risk sharing modality (guarantee fund), Benefit-SBN brings commercial banks and cooperative unions together. The unions avail the credit to selected cooperatives, who in turn provide loans to members. Farmers will use the loan for the final stages of the production season, such as second and third weeding, harvesting and threshing. Hereafter, farmers pay back in kind (sesame). During the marketing season, cooperatives and unions use the loan for marketing purposes. The marketing credit thus improves both farmers’ production and cooperatives and unions marketing activities. So far, the repayment rate has been 100%. From a 50-50 risk sharing scheme in the first year, we moved to 30-70 and we’re now moving to a 80-20 guarantee.’ This activity greatly improves the relationship between farmer organizations and banks.
- Launched in May 2013, Benefit-SBN is part of the BENEFIT Partnership which supports the Sesame Business Network stakeholders (such as sesame producers, local entrepreneurs) achieve their individual and common economic objectives, which will in turn boost Ethiopian sesame production.
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