Learning Agenda of the FSRE . Aloe Value Chain project Christian Aid/HUNDEE March 2014 Addis Ababa. Borena and Guji Zones are two of the 18 Zones in Oromia NRS Area is 69,373.3 km² and has an estimated population of 1,548,888 (Regional Atlas 1998)
Aloe Value Chain project
Borena and Guji Zones are two of the 18 Zones in Oromia NRS
Area is 69,373.3 km² and has an estimated population of 1,548,888 (Regional Atlas 1998)
62.5% low land –below 1500masl, 37.5% moderate highland
Bimodal and erratic rainfall pattern
Livelihood mainly depends on livestock and livestock products
Rich in Natural resources like gum and incenses, Aloe, natural salt, minerals … but with little awareness on the commercial viability of this productsIntroduction
Water, Palm/vegetable oil, caustic soda and Aloe sap
Harvest about 6 leaves of Aloe and place it clean jug to allow sap to drain out
Measure the caustic soda first ensuring the measuring container is DRY- put into plastic bowel or plate
Measure the water into plastic basin
Measure the oil into a jug
Add caustic soda to water
Still until the soda dissolves completely and mixture goes back to clean in colorTechnology
200 (80%F) peoples organized into 4 Aloe soap/lotion making and marketing cooperatives – legally certified
Have a workshop and Produce soap in a group interchangeably
160 women’s organized into eight SHG to maximize their social and economic benefits –
SHG members practice weekly saving from income obtained from sale of products
SHG members discuss on various issues gender, HTP and othersOrganisation
One marketing assessment will be conducted on success and failure of a community based aloe enterprise
Mainly focus on local market – product outlet shop, village shops
Support two local promotional markets at village and district towns
Linked with ‘Milki” cooperative unionMarketing
Making soap is very profitable, if vegetable oil is purchased at normal market prices
The costs of one piece of soap are 8 ETB and this piece can be sold for 12 ETB, so the Gross RoI is in the range of 50%.
The price of vegetable oil is the main determinant of the profit. If it rises sharply, the profit will be reduced substantially.
The present interference of the government in the vegetable oil market is a potential threat for the soap producers.
Spontaneous adoption of the soap making skill can take place around Yabello town where the costs of purchasing the raw materials as well as the marketing costs are lowerEconomics
6ha purchased at normal market prices of land obtained for planting Aloe resources
Aloe plant plays a great role in protecting wind and water erosions as the species generates through the production of 'suckers'.
Small ‘suckers’ grow off the side of the 'mother' plant in close proximity to the root covering large areas and providing protection.
The crop can store water and survive for longer period of time during drought.Environmental issues
80% cooperative members are women purchased at normal market prices
Women work on soap making in a group and be paid on monthly/weekly bases based on number of soap they make
Cooperative management bodies are mainly women’s
20% male members of the cooperatives are intentionally added to protect mainly to protect women’s from any cultural challenges and to maximize mutual supportGender
The income from the soap purchased at normal market prices will be used to buy food for the household or other life-necessities.
Saving from SHG can be used to buy livestock's – which are main source of food (milk and butter)
Loan from SHG – will be used to do other IGA – income used to buy food and other itemsFood Security
Innovation purchased at normal market prices
Technical: - Is this soap of good quality
Social (gender): - Will this not lead to extra work for women? How much will women earn per day? Will the men control the money?
Economics: - What is the price composition? Will it change when ingredients get more expensive?
Environmental: - How to measure environmental impact? There are already plenty Aloe plants in Borena. Will this make a difference?Learning questions
Impact on Food Security and Entrepreneurship
Scaling up: constraints and opportunities
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