Business Model: Multiplication of Forage Seed and Vegetative Material For Youth Cooperatives in Ethiopia

Abstract

The shortage of feed due to lack of improved forage seed and vegetative material is one of the core problems in livestock farming in Ethiopia. The cooperative aspiring to supply fodder and planting material is a registered company owned and run by committed, passionate and enthusiastic young men and women. The International Center for Agricultural Research in Dry Areas (ICARDA), in close cooperation with regional agricultural research institutes and partners, implements improved sheep fattening methods and technologies with an entrepreneurial lens in Ethiopia. The project aims to improve the income of rural farmers from sheep fattening. Sheep farming is one of the lucrative commercial businesses in Ethiopia. The youth have been encouraged to undertake collective action to fatten rams for sale as well as participate in related entrepreneurial opportunities along the sheep value chain. Forage production is one of the identified potential ventures. The main products of forage production are improved seeds and forage biomass. Within the Southern Nations, Nationalities, and Peoples' Region (SNNPR), improved high performance varieties can be sourced from Bonga Agricultural Research Center, located in southwestern Ethiopia. The cooperative will produce forage seed on their communal production land and supply the products through direct marketing on the local market and on farms.

Most important is financial success and we believe that this can be achieved by offering high quality seeds while minimizing production costs. Financial projections have been made based on experience and knowledge of the region. With an initial capital of ETB 162,000 (USD 3500), the cooperative can generate ETB 46,000 (USD 1000) in sales by the end of the second year and make good net profits.