Benchmarking and Enhancing the Wheat Value Chain in Central Ethiopia: A Comparative Assessment with Global Best Practices

Abstract

Introduction: This study presents a comprehensive evaluation of the wheat value chain in Central Ethiopia, aiming to assess critical constraints and identify potential opportunities in production, processing, and marketing. Benchmarking against international standards reveals persistent inefficiencies that hinder productivity and competitiveness, with Ethiopia lagging behind countries like India and Turkey in yield, input efficiency, and market integration.

Objectives: The main objective of this study is to benchmark the existing wheat value chain in Central Ethiopia against international best practices and identify interventions for its improvement: A comparative assessment with global best practices.

Methods: A multi-stage sampling procedure was applied to ensure representativeness. Hadiya and Silite Zones were first selected based on agricultural relevance, followed by random selection of two Woredas, two towns, and four kebeles. The final sample included 8 input suppliers, 200 wheat producers, 8 grain traders, 8 processors, 8 output traders, and 162 end consumers. Primary data were collected using structured interviews, questionnaires, and field observations, while secondary data were sourced from reports and literature. Data were analyzed using descriptive and inferential statistics with STATA.

Results: The study identified substantial performance gaps: wheat yield in Central Ethiopia averaged 2.3 tons per hectare, compared to 3.5–4.0 tons in India and Turkey. Production costs were 18–25% higher due to inefficient input supply chains and limited mechanization. These inefficiencies, along with weak infrastructure and institutional support, significantly reduce the wheat value chain’s competitiveness.

Conclusions: Addressing the identified constraints requires a multi-pronged approach, including the promotion of improved agricultural technologies, targeted capacity building for value chain actors, enhanced rural infrastructure investment, and policy reforms. These interventions are essential to boost productivity, lower costs, and improve food security and rural livelihoods in Central Ethiopia.