Red and White Beans Market

Assessment in Oromiya and

SNNP Regional States
Moti Engineering
Introduction and Objective
• Red and white beans are essential food commodities in the region, with an estimated
production of 280,000 tons in 2022.
• The market assessment covers nine woredas in Oromiya and SNNP regional states and aims
to:
• Identify potential challenges faced by market participants, such as farmers, traders, wholesalers,
exporters, and consumers.
• Analyze the current market situation, including supply and demand dynamics, pricing trends, and market
share of red and white beans.
• Explore the key actors in the market chain, their roles, and their influence on market dynamics.
• Assess the complexity and fragmentation of the market chain, including the presence of multiple
intermediaries and transaction costs.
• Highlight specific challenges related to access to finance, quality standards, logistics, and the availability
of market information.
• Recognize the growing demand for red and white beans in the region and its potential impact on market
opportunities.
Production of Red Beans
• In SNNP regional state, three types of beans are mainly produced: Red Speckled
beans, White Kidney beans, and White beans. The Red and White beans
command the biggest market share and are mainly sold in retail quantities for
export and preparation food at home. Locally produced bean types such as
Haricot beans have a very limited domestic market in Walayeta zone.
• In Oromiya regional state, dry beans are produced in different zones such as
West Arsi, East Showa, and West Hararge. The production varies by woreda and
season.

• Dry beans are an ideal rotation crop and research has shown that dry beans
ensure higher yields in a crop rotation system.
Production Areas of Red Beans
• The figure below shows the distribution of dry bean production in Wolyta zone in SNNP
regional state for 2014/2015 production season. The figure shows that greater volumes of
dry beans were produced in Damote Galle,. These are followed by very minimal production
recorded from Damote Sore , Dugua Fongo.

• The table below shows the percentage of dry bean production in different zones in Oromiya
regional state for Belge and Mehere production seasons. The table shows that Shala ,Negle
Arsi .Shashmene and Adami Tulu woreda in West Arsi zone are high production areas.
Bost ,Bora .and Dugeda woreda in East Showa zone are high potential areas. Ancar . Doba,
Guba Koricha woreda in West Hararge zone are high production areas.
REGION Production(tone Production(tone) Production(tone) Production(tone) Production(tone)
)2017/2018 2018/ 2019 2019/2020 2020/2021 2021/2022

SNNPWoreda

Damote sore 4000 3540 7000 8908 12390

Damote Gale 4560 3987 6000 7432 6490

Damote Bolo Sore 1234 1346 4870 3245 2980

Dugu Fongo 1189 1040 2349 2540 2367

OromiyaWoreda

Shalla 8500 10987 10678 12456 14567

Shashamne 7890 9807 9423 11008 26789

Arsi Negle 7865 8765 9040 10678 1600

Sira roo 6540 7654 8765 9876 13980

Oromiya woreda

Shalla 8500 10987 10678 12456 14567

Shashamne 7890 9807 9423 11008 26789

Arsi Negle 7865 8765 9040 10678 1600

Sira roo 6540 7654 8765 9876 13980

Contractual Farming Data
REGION NO OF PARTICIPANT PRODUCTION(TON)

Oromiya(woreda )

Shalla 9 Exporters 750

Shshamene 7 Exporters 400

Arsi Negele 4 Exporters 480

Bost 9 Exporters 1000

Bora 8 Exporters 1200

SNNP (wolayita zone) 16 exportes ----

Total 53 Exporters 3830

Market Structure of Red and White Beans in
Ethiopia
• Introduction

• Red and white beans are important crops in Ethiopia, providing food and
income for millions of people.
• The market for red and white beans is complex and fragmented, with multiple
intermediaries involved in the distribution chain.
• This presentation will explore the market structure of red and white beans in
Ethiopia, with a focus on the following topics:
• Market places
• Market value chain
• Pricing
Market Places
• The red and white beans market is not centralized, with multiple
markets operating in different regions.
• This fragmentation can make it difficult for buyers and sellers to
connect with each other efficiently, leading to inefficiencies in the
market.
• There is a lack of price transparency, which can give some market
participants an unfair advantage.
• Hoarding of beans can also distort the market and drive up prices.
Market Value Chain
• The red and white beans market involves a complex value chain, with
multiple intermediaries involved in the distribution process.
• Producers sell their beans to brokers, who then sell to rich farmers or
other intermediaries.
• The beans eventually reach the final consumers through a series of
transactions.
• The long value chain can lead to market inefficiencies and high prices
for consumers.
Pricing
• The price of red and white beans is volatile and unpredictable, due to
a number of factors.
• These factors include the weather, the supply of beans, and the
demand for beans.
• The lack of market information makes it difficult for producers to plan
their production and marketing activities.
• Farmers often face financial challenges, particularly when their plants
reach the flowering stage.
The following Data show us a price trend of 2017/ 2018 upto
2021/2022which is trend of price at primary market producers sold in
oromiya and SNNP regional state .
Region Production year Per ton paid to producersIn birr for white and red
beans

Oromiya 2017/2018 9300

2019/2020 12500

2020/2021 14700

2021/2022 18000

2022/2023 32000

SNNP 2017/2018 10 300

2019/2020 14500

2020/2021 14700

2021/2022 18000

2022/2023 34000
Market Chain of White and Red Beans in
Ethiopia
• Introduction
• The red and white bean market in Ethiopia is a complex and fragmented one.
• There are a number of challenges facing the market, including:
• Lack of a centralized market
• Market price discrimination
• Hoarding
• Lack of market information
• This presentation will explore these challenges in more detail and discuss
some potential solutions.
Market Structure
• The red and white bean market is not centralized.
• This means that there is no single place where buyers and sellers can
come together to trade.
• Instead, the market is spread out over a number of different locations.
• This fragmentation can make it difficult for buyers and sellers to find
each other and can lead to inefficiencies in the market.
Market Price Discrimination
• There is evidence of market price discrimination in the red and white bean
market.
• This means that different buyers and sellers are facing unequal treatment in
terms of pricing.
• This discrimination may stem from various factors, including:
• Lack of price transparency
• Limited competition
• Information asymmetry among market participants
• Market players with stronger bargaining power or superior market
knowledge may exploit these circumstances, leading to an uneven playing
field for producers and legal traders.
Hoarding
• There is evidence of hoarding in the red and white bean market.
• Hoarding indicates that some market participants intentionally
withhold beans from the market to artificially create scarcity and
drive up prices.
• Hoarding can disrupt market equilibrium, contribute to price volatility,
and negatively affect consumers by limiting their access to affordable
beans.
Lack of Market Information
• There is a lack of market information available to producers in the red
and white bean market.
• This means that producers often do not have a clear understanding of
the current market price or of future trends.
• This can make it difficult for producers to make informed decisions
about when to sell their beans and at what price.
There are134 legal suppliers in SNNP and Oromiya regional
states in Nine market assessment area it is show as follow
REGION NOOF suppliers

Oromiya(woreda )

Shalla 20

Shshamene 16

Arsi Negele 9

Bost 18

Bora 11

Chiro 6

Tulo 24

SNNP(wored)

Damote Sore 11

DFamote Gale 9

Total 134
Quality Problems of Red and White Beans
• High moisture content can lead to the growth of molds, fungi, and bacteria.
• This can compromise the integrity and safety of the beans, resulting in reduced shelf life and
potential health risks.
• High moisture content can also contribute to weight gain, making the beans less economical for
both producers and consumers.
• Shrinking of bean size can negatively impact market value and consumer satisfaction.
• This is because smaller beans may be perceived as inferior in quality and less desirable for culinary
purposes.
• The presence of undesirable odors in red and white beans can indicate microbial contamination or
improper storage conditions.
• Foul smells can be off-putting to consumers and may lead to a perception of poor quality.
• Additionally, strong odors may suggest the presence of spoilage or degradation, further
diminishing the market value and desirability of the beans.
Recommendations to Address Quality
Problems
• To address the quality problems of red and white beans during the
bulge season production, it is important to:
• Dry the beans adequately.
• Store the beans in proper conditions.
• Monitor the beans for signs of spoilage or degradation.
• Implement quality control measures throughout the production and storage
process.
Supply chain of Beans market
• The supply chain of beans is a complex and interconnected system.
• It involves the production, processing, packaging, transportation, and
distribution of beans.
• The success of the bean supply chain depends on the coordination of
all of these activities:
Key Steps in the Supply Chain
Procurement, Production, and Warehousing
• The first step in the supply chain is procurement.
• This involves identifying reputable suppliers who can provide high-
quality beans.
• Once the beans have been procured, they need to be processed and
packaged.
• The final step in the supply chain is warehousing.
• This involves storing the beans in a way that maintains their quality.
Recommendations for Moti Engineering
• Moti Engineering should focus on the following recommendations to
achieve success in the global market:
• Establish an online trade presence and e-commerce platform
• Build strong relationships with bean suppliers
• Implement effective forecasting techniques
• Establish a warehouse in Modjo Town
• Develop a reliable logistics and transportation strategy
• Partner with the Ethiopian Agricultural Authority