COMMERCIALIZATION PERFORMANCE 59
Table 5.1 Marketing performance of Ethiopian cooperatives Description
25th
Indicator and unit Sold members product over past Value sold last year
1 = yes (%) 12 months Value sold last year, per member
Birr Birr
Number of product commercialized Number Stored product before selling? Number of days of storage
Collect price info before selling? On how many markets? Farthest market on which
information is collected Knows price in Addis Ababa,
Ethiopia, today? Knows price in nearest woreda market today?
1 = yes (%) Number
1 = yes (%) Number
Kilometers 1 = yes (%) 1 = yes (%)
Used intermediary for transaction? 1 = yes (%) Cooperative transported product for 1 = yes (%) transaction?
256,408
1,116.30 1.55
95.58
105.03 85.29 2.25
99.6 37.27 63.31 4.14 21.32 22,800
30.39 1 1
30 1 1
5.5 0 0
0 0
Source: Authors’ calculations based on data from ECS (2006). Note: Woredas, or districts, are one of the smallest administrative units in Ethiopia.
them for more than 3 months (on average) to secure higher prices. Price information is generally collected on one to three markets, including markets that are fairly distant from the location of the cooperative. No intermedi- ary is used for transactions, which may contribute to the improved prices obtained by cooperatives for their members. We examined the knowledge of actual price levels for the Addis Ababa market and found it somewhat limit- ed.2 This ignorance may be due, however, to the timing of our survey—about 5 months before harvest.3 Overall, lack of marketing capacity does not seem to explain the finding that more than 40 percent of cooperatives officially engaged in output marketing did not sell any of their members’ output over the past 2 years.
Another hypothesis is that members may be unwilling to sell their prod- ucts through the organization. Although 82 percent of cooperative members said they were satisfied with their participation in the organization, only 40
2 Addis Ababa is by far the largest grain market in the country and is often considered to lead
price evolution in other regional markets (Gabre-Madhin 2001). 3 The survey attempted to collect accounts of cooperative financial performance. Cooperative- level data were, however, scarce and often of low reliability. Audits by woreda cooperative offices of primary cooperatives were also collected but proved insufficient in number and often concerned only the best-performing organizations.
150,294
188.88 2 1
150 1 3
69.25 1 1
0 0
Mean 58.72
percentile 0
75th
percentile 1
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