Description
A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.
A PROJECT REPORT SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ADDISABABA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSNESS ADMINISTRATION
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Submitted by: Arsema Andargatchew
Under the Supervision of: Dr. Krishna Murthy Professor of Management Faculty of Business and Economics Addis Ababa University
January 2008
Dr. Krishna Murthy Professor of Management Faculty of Business and Economics Addis Ababa University
CERTIFICATE
This is to certify that Arsema Andargatchew has worked on “Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone” under my supervision. This work is original in nature and it is suitable for submission in the partial fulfillment of the requirement for the Degree of Master of Business Administration.
_________________________________ Dr. Krishna Murthy
Addis Ababa University School of Graduate Studies
Title: Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
By:
Arsema Andargatchew Faculty of Business and Economics MBA Program
Approved by Board of Examiners
_______________________________ Advisor
__________________________ Signature
_______________________________ Examiner
__________________________ Signature
_______________________________ Examiner
__________________________ Signature
_______________________________ Examiner
__________________________ Signature
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Table of Contents
Chapter I - Introduction ......................................................................................1 1.1 Statement of the problem ............................................................................3 1.2 Objective of the study..................................................................................4 1.3 Significance of the study .............................................................................4 1.4 Scope and limitation of the study.................................................................5 1.5 Organization of the paper ............................................................................5 Chapter II – Literature Review and Conceptual Framework............................6 2.1 Literature Review ........................................................................................6 2.1.1 Characteristics of bamboo ....................................................................6 2.1.2 Bamboo species in Ethiopia................................................................10 2.1.3 Status of highland bamboo forests in Ethiopia ....................................14 2.1.4 Value chain of Ethiopian highland bamboo .........................................16 2.1.5 Policies and Actions taken by the Ethiopian Government ...................22 2.2 Conceptual Framework .............................................................................26 2.2.1 The point of entry for value chain analysis ..........................................28 Chapter III – Methodology ................................................................................30 3.1. Bamboo species selection........................................................................30 3.2. Site selection ............................................................................................30 3.3 Questionnaire design and use...................................................................31 3.4 Sampling of chain actors ...........................................................................32
3.5 Time and other requirements to carry out the study ..................................34 Chapter IV – Results and Discussions............................................................35 4.1 Identification of study site ..........................................................................35 4.2 Value chain of bamboo originating from Shedem......................................39 4.2.1 Shedem’s bamboo harvesters ............................................................41 4.2.2 Bamboo market in Goba town ............................................................52 4.3 Interviews with other Stakeholders............................................................66 4.3.1 Government Institutions ......................................................................66 4.3.2 Private Investor ...................................................................................68 Chapter V – Conclusions and Recommendations .........................................70 5.1 Conclusions...............................................................................................70 5.2 Recommendations ....................................................................................73 Bibliography ......................................................................................................78 Appendices .......................................................................................................81 Appendix I: Major Highland Bamboo Areas in Ethiopia ...................................81 Appendix II: Population structure of Shedem ..................................................82 Appendix III: Questionnaires ...........................................................................83 3.1 Bamboo harvesters survey instrument ..................................................83 3.2 Bamboo intermediary survey instrument................................................88 3.3 Bamboo product producer survey instrument ........................................90 3.4 Bamboo products customers survey instrument ....................................94
List of Tables
Table 1 - General characteristics of the Ethiopian highland bamboo forests ......12 Table 2. Number of employees in modern and traditional workshop and rented workshops in Addis Ababa ...................................................................18 Table 3. Respondent categories .........................................................................33 Table 4. Estimation of bamboo coming to Goba and Robe markets ...................36 Table 5. Interviewed bamboo sellers at Goba market.........................................37 Table 6. Interviewees' statistics ..........................................................................43 Table 7. Amount and frequency of harvest per month ........................................45 Table 8. Percentage of income from bamboo .....................................................47 Table 9. Seasonal fluctuation of bamboo in Goba market ..................................51 Table 10. Amount of bamboo harvested by individuals.......................................53 Table 11 Intermediaries in Goba market.............................................................55 Table 12. Number of bamboos bought by intermediaries ...................................56 Table 13. Crafts made in Goba ...........................................................................59 Table 14. Bamboo products produced in Robe ..................................................60 Table 15. Consumers in Goba and Robe Markets ..............................................63
List of Figures
Figure 1. A simple value chain ............................................................................27 Figure 2. The extended value-chain framework..................................................28 Figure 3. Preliminary value chain map................................................................38 Figure 4. Map of Goba woreda ...........................................................................39 Figure 5. Map of study site..................................................................................40 Figure 6 Final value chain map ...........................................................................64
Abbreviations
BERSMP BoARD CFC DA EC EFAP EMA FeMSEDA INBAR KEFRI MoARD NTFP ODI SNNPR UNIDO
Bale Eco-Region Sustainable Management Programme Bureau of Agriculture and Rural Development Common Fund for Commodities Development Agent Ethiopian Calendar Ethiopian Forestry Action Program Ethiopian Map Authority Federal Micro and Small Enterprises Development Agency International Network for Bamboo and Rattan Kenya Forest Research Institute Ministry of Agriculture and Rural Development Non Timber Forest Product Overseas Development Institute Southern Nations, Nationalities and People’s Region United Nations Industrial Development Organization
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Acknowledgments
I would like to thank Dr. Krishna Murthy, my advisor, for his support.
I am most grateful to the community members of the Shedem kebele, who received me with open arms and fully cooperated to be part of this study. I am indebted to all the chain actors who had provided constructive information.
I would also like to thank the Bale Eco-Region Sustainable Management Programme of FARM-Africa and SOS Sahel Ethiopia for sponsoring this study. Special thanks goes to Mr. Ben Irwin who supported me from the start of this study, Ato Tsegaye Tadesse, who provided me with literatures he has had at hand, Ato Zeleke Kebebew who was very helpful in producing maps and GIS information that were required for the study and Ato Sahelemariam Mezmur who worked with me throughout the field research period as my translator.
Last but not least I would like to thank Ato Hailu Arega, natural resource team leader for the Goba woreda agriculture and rural development office and Ato Jemal Kayo, development agent of Shedem Kebele for their undivided attention and support during my field work in Shedem.
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Abstract
Ethiopia has a natural bamboo forest estimated about 1 million ha, which is about 7% of the world total and 67% of the African bamboo forest area. The Bale Mountains has the largest percentage of reported highland bamboo in Ethiopia. Local communities use bamboo mainly for construction, fences, some rudimentary furniture and household utensils. There are a large number of people involved in bamboo culms extraction for sell in Goba town. These are mainly farmers from Shedem. Kebele. Concerned with the rate of extraction and to understand the existing value chain in order to harness the bamboo potential as a means of alternative livelihoods, the value chain analysis was carried out in this kebele. The results show that communities in Shedem depend on bamboo resources highly. On average 47% of the annual income is estimated to be derived from bamboo sale for Shedem farmers. 17,000 – 23,000 bamboo culms are consumed on each market day in the Goba market with 90% bought by intermediaries. The annually harvested bamboo however accounts only for 1.18 -1.3 % of the total 14,272 ha bamboo resource in the Kebele. Even with the consumption of neighboring kebeles, the harvest rate does not seem to be unsustainable as bamboo culms are ready for harvest every 3 -4 years. However, the harvesting method being applied damages young shoots and has resulted in high sustainability concern. Three independent chains are identified for bamboo culms originating from Shedem. Crafts people, intermediaries and house constructors directly buy culms from the Shedem farmers. Despite the high economic value of bamboo in the area, little value is added to the bamboo; the largest culm value identified was 6.6 Birr at the crafts producers’ stage. Farmers are found to be the second highest income earners, getting 1 Birr / culm. The value chain studied was found to be very week with little or no communication among actors. In order to efficiently use the available resource, it is essential to have a stronger and well coordinated value chain. For this to happen, coordinated works need to be carried out by the chain actors with support from local governmental and non governmental organisations as well as the private sector.
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Value Chain Analysis of Bamboo Originating from Shedem Kebele, Bale Zone
Chapter I - Introduction
Bamboo is a highly utilised natural resource in many parts of the world. In Ethiopia the use of bamboo is limited to construction, fences and some rudimentary furniture and household utensils. Although bamboo is not an integral part of the Ethiopian economy, it plays a very important role socially, economically and ecologically in areas where it occurs naturally as well as where it is planted (Ensermu et al., 2000).
Wild bamboo grows with incredible speed and with great density per square meter (Kassahun, 2003). Therefore, bamboo is among the natural resources, if sustainably utilised, may provide sustainable finance to rural community.
Bamboo plants grow in tropical and temperate regions of the world, being more abundant in the former, particularly in Southeast Asia. According to Ohrnberger (1999), more than 1500 bamboo species are found in the world, covering more than 14 million ha of land. Out of these species, Africa possesses about 43 on over 1.5 million ha of land (Kigomo, 1988).
Ethiopia has two bamboo species: lowland bamboo, Oxytenanthera abyssinica – consisting 85% of the total bamboo forest in the country and highland bamboo, Yushania alpina (Ensermu et al, 2000). The total Ethiopian natural bamboo forest is estimated about 1 million ha, which is about 7% of the world total and 67% of the African bamboo forest area (Kassahun, 2003). MBA Project Report | 1
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Due to its easy workability, highland bamboo in Ethiopia is used for fences, rafts, vessels for carrying and storing water, water pipes, splits for baskets, beehives, hats, mats, furniture, flutes, household utensils and agricultural tools. The lowland bamboo is mainly used for construction and fences.
The term value chain describes a business as a chain of activities that transform inputs into outputs that customers value (Pearce and Robinson, 2007). Thus, value chain analysis (VCA) tries to understand how customer value is created by businesses by analysing the contributions of different activities within the business.
Chain actors are those involved in producing, processing, trading or consuming a particular product. They include direct actors which are commercially involved in the chain (producers, traders, retailers, consumers) and indirect actors which provide financial or non-financial support services, such as banks and credit agencies, business service providers, government, and researchers (IIRR, 2006).
Taking the vast potential of bamboo resources and the huge amount of bamboo available in the country along with the considerable annual growth rate, this research tried to understand the potential of bamboo as a raw material and as products in the market by analysing its value chain. The research focused on the highland bamboo, due to its vast uses, and selected the Bale Mountains which is
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
identified as an area with the largest natural stand1 of highland bamboo in Ethiopia covering 38.7% of the total highland bamboo area in the country (see Appendix I).
There are several bamboo forests in the Bale Mountains. For this study, the bamboo forest in Shedem kebele was selected after an observation was carried out at one of the largest bamboo market in Goba town. The observation showed that a large percentage of the bamboo coming to the Goba market is from Shedem kebele. Hence, seeing the high resource availability in the kebele and concerned with the sustainability of the consumption rate, the research was carried out in Shedem.
1.1 Statement of the problem The Bale Mountains is cited in many literatures as the area covered with the largest highland bamboo forests. Despite this fact, the bamboo industry in not well developed and most of the products seen are at a very rudimentary level. Further, there isn’t a clear indication of the value chains of bamboo culms originating from different sites. It is essential to understand how this system is functioning if bamboo is to be sustainably used to support the livelihood of the communities in the area. This study tried to address this issue by carrying out a value chain analysis of bamboo originating from Shedem kebele, in Bale zone.
1
Natural Stand refers to pure natural forests
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
1.2 Objective of the study This study attempted to explore the value chain of the Bamboo industry taking the case of Shedem kebele in Goba woreda. This was done in order to understand the existing chain and harness the bamboo potential as a means of alternative livelihoods through a well developed marketing strategy. The value chain analysis was carried out with the following objectives: o To know the various uses of bamboo in the kebele; o To identify stakeholders in the value chain and understand their link and level of involvement; o To understand the demand for bamboo in the surrounding towns; o To identify problems in the value chain; and o To recommend strategies for proper management and utilisation of bamboo in Shedem and the surrounding area.
1.3 Significance of the study Bamboo is estimated to be one of the untapped and highly valuable natural resources Ethiopia has. With its rate of growth, sustainable harvesting is possible with higher harvest as compared to other resources in the country. Therefore, proper development and marketing of bamboo products could assist in the quest for poverty alleviation in the country.
This research will be of immense value as it provides a detailed value chain of the bamboo industry originating from the highland of Shedem based on primary data. This will be helpful for any intervention planned by private, government as well as non-government programmes. It can be a starting document for other MBA Project Report | 4
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
similar studies of value chain analysis in different parts of the country and adds to the already existing literature on Ethiopian bamboo industry.
1.4 Scope and limitation of the study The bamboo industry has a wider scope with varied dimensions. But for the purpose of this study the value chain analysis was given emphasis as it lays a starting point for any research on bamboo. Due to the limitation of time and resources, it focuses on the major actors of the value chain and concentrates on the highland bamboo of a single kebele, which excludes the other highland bamboo areas and completely rules out the richly available lowland bamboo. Therefore, this research must be applied taking the stated limitations into consideration. Understanding of the whole bamboo sector in the country requires a wider study than presented here. With respect to the stakeholders involved in the chain, the study examines the experiences and views of rural households, community elders, enterprise operators, urban dwellers as well as government representatives. 1.5 Organization of the paper The paper consists of five chapters. The first chapter presents introduction, statement of the problem, objective of the study, significance of the study, and scope and limitation of the study. The second chapter consists the literature review and concepts and theories related to the area of study. The third chapter presents the methodology applied. The fourth chapter elaborates on the results while the last chapter discuses the conclusions and recommendations.
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Chapter II – Literature Review and Conceptual Framework
2.1 Literature Review Documents suggesting the high potentials of bamboo in Ethiopia have been produced since 1959 (Mooney) which suggested the use of lowland bamboo in Ethiopia as a raw material for paper pulp production in the Wellega region (now Benishangul – Gumuz). Similar suggestions were made by WoldeMichael Kalecha (1980) while the Ethiopian Forestry Action Program (EFAP) in 1994 proposed a “bamboo and reed research and development project”. Further, in 1997 LUSO consult was commissioned by the German Technical Cooperation (GTZ) to carry out a study on sustainable management of bamboo followed by a production – to – consumption study by Ensermu et al (2000). The Kenya Forest Research Institute (KEFRI) has also produced a guideline for sustainable bamboo use in 2007. In addition, a number of research on bamboo management and method for introduction of new species are being carried out at the Ethiopian Forestry Research Center. However, even though studies and recommendations on bamboo conservation and utilisation have been around for quite a while, changes in management and utilisation techniques are not visible on the ground. This section will give a review of the documents that were available to the author. 2.1.1 Characteristics of bamboo There are more than 1500 known species of bamboo in the world (Ohrnberger 1999), of these, Africa has 43 species covering about 1.5 million ha (Kigomo, 1998). Forty of these species are distributed in Madagascar while the remaining 3 are found in mainland Africa (Ensermu et al, 2000). MBA Project Report | 6
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Bamboo species grow naturally on the mountains and highlands of Eastern African Countries and in the medium lowlands of other African countries (KEFRI, 2007). Bamboo is one of the important Non-Timber Forest Products (NTFPs) sharing a number of characteristics with other NTFPs in terms of its renewability and accessibility to rural poor people (Ensermu et al, 2000). The uses of bamboo makes significant contribution to rural livelihood and employment, although the rapidly diminishing supplies of forest bamboo through indiscriminate clearing of natural forests and the lack of government priority in its development erode its status in East Africa (KEFRI, 2007).
Bamboos are tall perennial grasses with tree stature that grow up to about 30 m in height and 35 cm in diameter (Kassahun, 2003). According to Kassahun (2003) and Luso Consult (1997) the average length measured in the indigenous bamboo forests of Ethiopia is 16.9 m with the maximum size being 23 m in height and 20 cm in diameter and the minimum height being 11.1 m.
In a fully developed bamboo root system, which occurs within 3-7 years after seeding, new bamboo shoots are produced every rainy season and attain full height and diameter in about 3 months (Kassahun, 2003; KEFRI, 2007). Bamboos get mature, strong and ready for utilisation after 3-4 years (Kassahun, 2003; Wimbush, 1945; KEFRI, 2007). As mature culms grow older, they deteriorate and eventually die and rot. The life of a bamboo plant is however sustained by the new shoots and culms (Ensermu et al, 2000).
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
One hectare of the highland bamboo forest is estimated to carry an average of 6000 culms (Kassahun, 2003); whereas that of a lowland bamboo carries an average of 8124 living culms and 4185 dead culms (Ensermu, et al 2000).
It is generally recommended to harvest only the mature bamboo culms (3 -4 years and up) and up to 70% of the culms on a given surface. Effective bamboo management involves systematic but selective cutting of mature culms, thereby harvesting a crop that is valuable. The removal of mature culms also ensures the vigor of the plant and allows for generation of new shoots (KEFRI, 2007). On the other hand, clear cutting depresses the rate of recovery of bamboo after cutting (Wimbush, 1945 cited in Kigomo, 1998).
Most bamboo plants flower only once in their lifetime (14-50 years in most species) and then die soon after (Luso consult, 1997; Kassahun, 2003). They emerge again from germinating seeds if the site is not severely disturbed by detrimental factors such as rodents, fire etc. These phenomena were observed in the lowland bamboo forest of Pawe, South Western Ethiopia where the whole forest flowered and died in 1998 (Kassahun, 2003). But this is not always the same for all bamboo species (Luso consult, 1997).
Bamboo forests are characterised by a complex network of root system making them more efficient than other forest species in holding soil particles together (Kassahun, 2003). Therefore, bamboos are excellent in preventing soil erosion,
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
promoting water percolation, and in sheltering the soil from wind erosion and sun drying (Kassahun, 2003; KEFRI, 2007). Further Bamboo litter fall improves soil structure and fertility (Fanshawe, 1972) and is a material source for furniture, building, pulp, bio-energy, food, forage and medicine (Liese, 1985). It is a
preferred material for various applications owing to its straightness, high strength, light weight, easiness of working with it, suitable fibre for pulp production and absence of bark (Suzuki and Jacalne, 1986). Bamboo shoot is of high nutritional value that can be used as source of food and feed (Ayre-Smith, 1963, Chaozong, 1995).
According to Kassahun (2003) Bamboos have the following limitations: 1. The gregarious flowering and eventual death of all bamboo trees in a forest is a characteristic that may seriously affect the sustainable supply of raw materials for bamboo-based industries; 2. Bamboo culm in storage and use is more susceptible to termites, insect borers and fungal attack than hard and soft woods, as it does not contain toxic substances unlike the latter species; 3. Bamboo culm preservation is less effective than most hard and softwoods because bamboo culm does not possess anatomical pathways which facilitate radial distribution of preservatives unlike in hard and soft wood stems. Moreover, culm skin are impervious and thus preservative
penetration through them is limited;
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
4. A preservative method that is equally effective, cheap and safe as for hard and soft wood has yet to be developed; 5. The maximum attainable diameter is limited by their primary growth as they do not increase their diameter through secondary growth unlike hard and soft wood species. 2.1.2 Bamboo species in Ethiopia The existing information about the distribution and coverage of bamboo in Ethiopia is rather limited. The study by Luso consult (1997) found that topographic maps of the Ethiopian Map Authority (EMA) miss some of the existing highland bamboo areas in Ethiopia; whereas highland bamboo areas shown on the maps prepared by Chaffey (1979) are far more complete but a bit more generalised than indicated in the EMA maps. Therefore, on a new general bamboo map produced by Luso consult, the highland bamboo areas from both Chaffey and the EMA maps were combined. In this regard, the total area of mapped highland bamboo (Yushania alpina) in Ethiopia is 129,000 ha. The highland bamboo area gives a good indication since these areas have been mapped quite accurately from aerial photographs. Since most highland bamboo areas are located in remote and inaccessible areas with a relatively low population pressure, it is assumed that the total highland bamboo area has not decreased significantly (Luso consult, 1997). See appendix 1 for distribution of highland bamboo in Ethiopia.
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
The total area of mapped lowland bamboo (Oxytenanthera abyssinica) on the other hand, amounts to 480,510 ha (Luso consult, 1997, Kassahun; 2003; Ensermu et al, 2000). However, this figure of lowland bamboo area is heavily underestimated and does not represent the real area, since a lot of spatial data are missing for this land cover type (Luso consult, 1997). WoldeMichael Kelecha (1980) estimated the lowland bamboo to be about 1,000,000 ha but according to Luso consult (1997), this figure is based on unverified assumption. Luso consult (1997) estimates area of lowland bamboo in north western part of Ethiopia between 200,000 and 350,000 ha which makes the estimation of lowland bamboo between 700,000 and 850,000 ha; though settlements may have reduced some of the bamboo areas.
Two important factors influencing the occurrence of bamboo in Ethiopia are rainfall and altitude (Luso consult, 1997). The highland bamboo grows in the central, southern, south-western and north-western parts of the country in an altitude ranging from 2200 – 4000 m asl. (Ensermu et al, 2000; Luso consult, 1997). The highland bamboo covers areas between the Bale Mountains, Bonga and Metu in the south and south-western part of the country and all the way to Dangla in the north (Ensermu et al, 2000). This species grows in montane forest, often on fertile, volcanic soils and forms extensive pure stands (Luso consult, 1997). The range of temperature where Y. alpina grows well is 10 – 200c.
Rainfall also influences the occurrence and growth potential of the species. In
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Ethiopia its rainfall range falls in general between 1500 and 2000 mm and it is found as far north as 11oN and as far east as 40oE (Luso consult, 1997).
According to Luso consult (1997), generally in East Africa the species is in pure stand where rainfall is >800 mm/year; in under storey scrub bamboo where the rain is between 1000 -1200 mm and in bamboo / Podocarpus canopy mixture where rainfall is between 1200 – 1800 mm. The species is therefore a highland, low temperature demanding species, and requires high rainfall. Culms of the highland bamboo reach a height of 10 -18 m and a diameter of 10 -16 cm. Mean culm size in the low and highland bamboo forest is 5 cm and 7 m and 8 cm and 17 m of diameter and height, respectively (anonymous, 1997, sited in Kassahun, 2003). Table 1 - General characteristics of the Ethiopian highland bamboo forests Mean altitude Mean annual rainfall Total area Stand density (tree / ha) Percentage of dead trees Culm Ratio of old to new shoots Seeds 2200 – 3200 m 1950 mm 130,000 ha 6000 27 Hollow 5:1 Most empty, not viable
Source: Anonymous, 1997; cited in Kassahun (2003). Ecological Aspects and Resource Management of Bamboo Forests in Ethiopia, Swedish University of Agricultural Sciences, Uppsala, p.12
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Lowland bamboo on the other hand grows only in the western part of the Ethiopian lowlands along major river valleys and in areas bordering the Sudan (Ensermu et al, 2000). This species occurs between 700 – 1700 m asl with an average annual rainfall above 700 mm (Ensermu et al, 2000).
The flowering, seeding and dying of Y. alpina has been reported by Wimbush (1947) to occur in patches, not normally large. Sometimes this may extend to several hectares but no record of extensive flowering has been recorded. Observations in the field by Luso consult (1997) have confirmed this observation along with confirmation from local people around Masha area. Studies by Wimbush (1947) in Kenya on Y. alpina estimated that the life cycle of the species is more than 40 years. It is not however clear whether it is much longer or shorter in other places like Ethiopia where the species also grows (Luso consult, 1997).
Both the highland and lowland species are endemic to Africa, confined to the sub-Saharan region (Ensermu et al, 2000). These forests were until recently protected by their remote and inaccessible locations, however, they are now fast disappearing due to improvements in road networks and establishment of villages within and around the bamboo forests (Kassahun, 2003).
Bamboos are multipurpose plants of high economic and environmental value that convert solar radiation into useful goods and services better than most tree species. Developing countries like Ethiopia that are aspiring for better welfare
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
and faster rate of development, therefore, need to preserve their remnant bamboo forests and expand their resource base. They must also ensure the steady increase, stability and sustainability of bamboo forest production and utilisation activities (Kassahun, 2003). 2.1.3 Status of highland bamboo forests in Ethiopia In Ethiopia, high proportion of dead biomass characterises the highland bamboo stands. According to Ensermu et al (1997), this may be attributed to a prolonged cutting cycle and low cutting intensity. According to Kassahun (2003) the remnant natural bamboo forests of Ethiopia are in a neglected state through lack of management. The condition of the Masha bamboo forest in Southwest Ethiopia was found to be a typical example by this study. The age structure of Masha bamboo forest was heavily skewed towards old trees and the annual litter fall (11t / ha) was larger than the current above shoot
A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.
A PROJECT REPORT SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES OF ADDISABABA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSNESS ADMINISTRATION
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Submitted by: Arsema Andargatchew
Under the Supervision of: Dr. Krishna Murthy Professor of Management Faculty of Business and Economics Addis Ababa University
January 2008
Dr. Krishna Murthy Professor of Management Faculty of Business and Economics Addis Ababa University
CERTIFICATE
This is to certify that Arsema Andargatchew has worked on “Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone” under my supervision. This work is original in nature and it is suitable for submission in the partial fulfillment of the requirement for the Degree of Master of Business Administration.
_________________________________ Dr. Krishna Murthy
Addis Ababa University School of Graduate Studies
Title: Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
By:
Arsema Andargatchew Faculty of Business and Economics MBA Program
Approved by Board of Examiners
_______________________________ Advisor
__________________________ Signature
_______________________________ Examiner
__________________________ Signature
_______________________________ Examiner
__________________________ Signature
_______________________________ Examiner
__________________________ Signature
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Table of Contents
Chapter I - Introduction ......................................................................................1 1.1 Statement of the problem ............................................................................3 1.2 Objective of the study..................................................................................4 1.3 Significance of the study .............................................................................4 1.4 Scope and limitation of the study.................................................................5 1.5 Organization of the paper ............................................................................5 Chapter II – Literature Review and Conceptual Framework............................6 2.1 Literature Review ........................................................................................6 2.1.1 Characteristics of bamboo ....................................................................6 2.1.2 Bamboo species in Ethiopia................................................................10 2.1.3 Status of highland bamboo forests in Ethiopia ....................................14 2.1.4 Value chain of Ethiopian highland bamboo .........................................16 2.1.5 Policies and Actions taken by the Ethiopian Government ...................22 2.2 Conceptual Framework .............................................................................26 2.2.1 The point of entry for value chain analysis ..........................................28 Chapter III – Methodology ................................................................................30 3.1. Bamboo species selection........................................................................30 3.2. Site selection ............................................................................................30 3.3 Questionnaire design and use...................................................................31 3.4 Sampling of chain actors ...........................................................................32
3.5 Time and other requirements to carry out the study ..................................34 Chapter IV – Results and Discussions............................................................35 4.1 Identification of study site ..........................................................................35 4.2 Value chain of bamboo originating from Shedem......................................39 4.2.1 Shedem’s bamboo harvesters ............................................................41 4.2.2 Bamboo market in Goba town ............................................................52 4.3 Interviews with other Stakeholders............................................................66 4.3.1 Government Institutions ......................................................................66 4.3.2 Private Investor ...................................................................................68 Chapter V – Conclusions and Recommendations .........................................70 5.1 Conclusions...............................................................................................70 5.2 Recommendations ....................................................................................73 Bibliography ......................................................................................................78 Appendices .......................................................................................................81 Appendix I: Major Highland Bamboo Areas in Ethiopia ...................................81 Appendix II: Population structure of Shedem ..................................................82 Appendix III: Questionnaires ...........................................................................83 3.1 Bamboo harvesters survey instrument ..................................................83 3.2 Bamboo intermediary survey instrument................................................88 3.3 Bamboo product producer survey instrument ........................................90 3.4 Bamboo products customers survey instrument ....................................94
List of Tables
Table 1 - General characteristics of the Ethiopian highland bamboo forests ......12 Table 2. Number of employees in modern and traditional workshop and rented workshops in Addis Ababa ...................................................................18 Table 3. Respondent categories .........................................................................33 Table 4. Estimation of bamboo coming to Goba and Robe markets ...................36 Table 5. Interviewed bamboo sellers at Goba market.........................................37 Table 6. Interviewees' statistics ..........................................................................43 Table 7. Amount and frequency of harvest per month ........................................45 Table 8. Percentage of income from bamboo .....................................................47 Table 9. Seasonal fluctuation of bamboo in Goba market ..................................51 Table 10. Amount of bamboo harvested by individuals.......................................53 Table 11 Intermediaries in Goba market.............................................................55 Table 12. Number of bamboos bought by intermediaries ...................................56 Table 13. Crafts made in Goba ...........................................................................59 Table 14. Bamboo products produced in Robe ..................................................60 Table 15. Consumers in Goba and Robe Markets ..............................................63
List of Figures
Figure 1. A simple value chain ............................................................................27 Figure 2. The extended value-chain framework..................................................28 Figure 3. Preliminary value chain map................................................................38 Figure 4. Map of Goba woreda ...........................................................................39 Figure 5. Map of study site..................................................................................40 Figure 6 Final value chain map ...........................................................................64
Abbreviations
BERSMP BoARD CFC DA EC EFAP EMA FeMSEDA INBAR KEFRI MoARD NTFP ODI SNNPR UNIDO
Bale Eco-Region Sustainable Management Programme Bureau of Agriculture and Rural Development Common Fund for Commodities Development Agent Ethiopian Calendar Ethiopian Forestry Action Program Ethiopian Map Authority Federal Micro and Small Enterprises Development Agency International Network for Bamboo and Rattan Kenya Forest Research Institute Ministry of Agriculture and Rural Development Non Timber Forest Product Overseas Development Institute Southern Nations, Nationalities and People’s Region United Nations Industrial Development Organization
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Acknowledgments
I would like to thank Dr. Krishna Murthy, my advisor, for his support.
I am most grateful to the community members of the Shedem kebele, who received me with open arms and fully cooperated to be part of this study. I am indebted to all the chain actors who had provided constructive information.
I would also like to thank the Bale Eco-Region Sustainable Management Programme of FARM-Africa and SOS Sahel Ethiopia for sponsoring this study. Special thanks goes to Mr. Ben Irwin who supported me from the start of this study, Ato Tsegaye Tadesse, who provided me with literatures he has had at hand, Ato Zeleke Kebebew who was very helpful in producing maps and GIS information that were required for the study and Ato Sahelemariam Mezmur who worked with me throughout the field research period as my translator.
Last but not least I would like to thank Ato Hailu Arega, natural resource team leader for the Goba woreda agriculture and rural development office and Ato Jemal Kayo, development agent of Shedem Kebele for their undivided attention and support during my field work in Shedem.
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Abstract
Ethiopia has a natural bamboo forest estimated about 1 million ha, which is about 7% of the world total and 67% of the African bamboo forest area. The Bale Mountains has the largest percentage of reported highland bamboo in Ethiopia. Local communities use bamboo mainly for construction, fences, some rudimentary furniture and household utensils. There are a large number of people involved in bamboo culms extraction for sell in Goba town. These are mainly farmers from Shedem. Kebele. Concerned with the rate of extraction and to understand the existing value chain in order to harness the bamboo potential as a means of alternative livelihoods, the value chain analysis was carried out in this kebele. The results show that communities in Shedem depend on bamboo resources highly. On average 47% of the annual income is estimated to be derived from bamboo sale for Shedem farmers. 17,000 – 23,000 bamboo culms are consumed on each market day in the Goba market with 90% bought by intermediaries. The annually harvested bamboo however accounts only for 1.18 -1.3 % of the total 14,272 ha bamboo resource in the Kebele. Even with the consumption of neighboring kebeles, the harvest rate does not seem to be unsustainable as bamboo culms are ready for harvest every 3 -4 years. However, the harvesting method being applied damages young shoots and has resulted in high sustainability concern. Three independent chains are identified for bamboo culms originating from Shedem. Crafts people, intermediaries and house constructors directly buy culms from the Shedem farmers. Despite the high economic value of bamboo in the area, little value is added to the bamboo; the largest culm value identified was 6.6 Birr at the crafts producers’ stage. Farmers are found to be the second highest income earners, getting 1 Birr / culm. The value chain studied was found to be very week with little or no communication among actors. In order to efficiently use the available resource, it is essential to have a stronger and well coordinated value chain. For this to happen, coordinated works need to be carried out by the chain actors with support from local governmental and non governmental organisations as well as the private sector.
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Value Chain Analysis of Bamboo Originating from Shedem Kebele, Bale Zone
Chapter I - Introduction
Bamboo is a highly utilised natural resource in many parts of the world. In Ethiopia the use of bamboo is limited to construction, fences and some rudimentary furniture and household utensils. Although bamboo is not an integral part of the Ethiopian economy, it plays a very important role socially, economically and ecologically in areas where it occurs naturally as well as where it is planted (Ensermu et al., 2000).
Wild bamboo grows with incredible speed and with great density per square meter (Kassahun, 2003). Therefore, bamboo is among the natural resources, if sustainably utilised, may provide sustainable finance to rural community.
Bamboo plants grow in tropical and temperate regions of the world, being more abundant in the former, particularly in Southeast Asia. According to Ohrnberger (1999), more than 1500 bamboo species are found in the world, covering more than 14 million ha of land. Out of these species, Africa possesses about 43 on over 1.5 million ha of land (Kigomo, 1988).
Ethiopia has two bamboo species: lowland bamboo, Oxytenanthera abyssinica – consisting 85% of the total bamboo forest in the country and highland bamboo, Yushania alpina (Ensermu et al, 2000). The total Ethiopian natural bamboo forest is estimated about 1 million ha, which is about 7% of the world total and 67% of the African bamboo forest area (Kassahun, 2003). MBA Project Report | 1
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Due to its easy workability, highland bamboo in Ethiopia is used for fences, rafts, vessels for carrying and storing water, water pipes, splits for baskets, beehives, hats, mats, furniture, flutes, household utensils and agricultural tools. The lowland bamboo is mainly used for construction and fences.
The term value chain describes a business as a chain of activities that transform inputs into outputs that customers value (Pearce and Robinson, 2007). Thus, value chain analysis (VCA) tries to understand how customer value is created by businesses by analysing the contributions of different activities within the business.
Chain actors are those involved in producing, processing, trading or consuming a particular product. They include direct actors which are commercially involved in the chain (producers, traders, retailers, consumers) and indirect actors which provide financial or non-financial support services, such as banks and credit agencies, business service providers, government, and researchers (IIRR, 2006).
Taking the vast potential of bamboo resources and the huge amount of bamboo available in the country along with the considerable annual growth rate, this research tried to understand the potential of bamboo as a raw material and as products in the market by analysing its value chain. The research focused on the highland bamboo, due to its vast uses, and selected the Bale Mountains which is
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
identified as an area with the largest natural stand1 of highland bamboo in Ethiopia covering 38.7% of the total highland bamboo area in the country (see Appendix I).
There are several bamboo forests in the Bale Mountains. For this study, the bamboo forest in Shedem kebele was selected after an observation was carried out at one of the largest bamboo market in Goba town. The observation showed that a large percentage of the bamboo coming to the Goba market is from Shedem kebele. Hence, seeing the high resource availability in the kebele and concerned with the sustainability of the consumption rate, the research was carried out in Shedem.
1.1 Statement of the problem The Bale Mountains is cited in many literatures as the area covered with the largest highland bamboo forests. Despite this fact, the bamboo industry in not well developed and most of the products seen are at a very rudimentary level. Further, there isn’t a clear indication of the value chains of bamboo culms originating from different sites. It is essential to understand how this system is functioning if bamboo is to be sustainably used to support the livelihood of the communities in the area. This study tried to address this issue by carrying out a value chain analysis of bamboo originating from Shedem kebele, in Bale zone.
1
Natural Stand refers to pure natural forests
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
1.2 Objective of the study This study attempted to explore the value chain of the Bamboo industry taking the case of Shedem kebele in Goba woreda. This was done in order to understand the existing chain and harness the bamboo potential as a means of alternative livelihoods through a well developed marketing strategy. The value chain analysis was carried out with the following objectives: o To know the various uses of bamboo in the kebele; o To identify stakeholders in the value chain and understand their link and level of involvement; o To understand the demand for bamboo in the surrounding towns; o To identify problems in the value chain; and o To recommend strategies for proper management and utilisation of bamboo in Shedem and the surrounding area.
1.3 Significance of the study Bamboo is estimated to be one of the untapped and highly valuable natural resources Ethiopia has. With its rate of growth, sustainable harvesting is possible with higher harvest as compared to other resources in the country. Therefore, proper development and marketing of bamboo products could assist in the quest for poverty alleviation in the country.
This research will be of immense value as it provides a detailed value chain of the bamboo industry originating from the highland of Shedem based on primary data. This will be helpful for any intervention planned by private, government as well as non-government programmes. It can be a starting document for other MBA Project Report | 4
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
similar studies of value chain analysis in different parts of the country and adds to the already existing literature on Ethiopian bamboo industry.
1.4 Scope and limitation of the study The bamboo industry has a wider scope with varied dimensions. But for the purpose of this study the value chain analysis was given emphasis as it lays a starting point for any research on bamboo. Due to the limitation of time and resources, it focuses on the major actors of the value chain and concentrates on the highland bamboo of a single kebele, which excludes the other highland bamboo areas and completely rules out the richly available lowland bamboo. Therefore, this research must be applied taking the stated limitations into consideration. Understanding of the whole bamboo sector in the country requires a wider study than presented here. With respect to the stakeholders involved in the chain, the study examines the experiences and views of rural households, community elders, enterprise operators, urban dwellers as well as government representatives. 1.5 Organization of the paper The paper consists of five chapters. The first chapter presents introduction, statement of the problem, objective of the study, significance of the study, and scope and limitation of the study. The second chapter consists the literature review and concepts and theories related to the area of study. The third chapter presents the methodology applied. The fourth chapter elaborates on the results while the last chapter discuses the conclusions and recommendations.
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Chapter II – Literature Review and Conceptual Framework
2.1 Literature Review Documents suggesting the high potentials of bamboo in Ethiopia have been produced since 1959 (Mooney) which suggested the use of lowland bamboo in Ethiopia as a raw material for paper pulp production in the Wellega region (now Benishangul – Gumuz). Similar suggestions were made by WoldeMichael Kalecha (1980) while the Ethiopian Forestry Action Program (EFAP) in 1994 proposed a “bamboo and reed research and development project”. Further, in 1997 LUSO consult was commissioned by the German Technical Cooperation (GTZ) to carry out a study on sustainable management of bamboo followed by a production – to – consumption study by Ensermu et al (2000). The Kenya Forest Research Institute (KEFRI) has also produced a guideline for sustainable bamboo use in 2007. In addition, a number of research on bamboo management and method for introduction of new species are being carried out at the Ethiopian Forestry Research Center. However, even though studies and recommendations on bamboo conservation and utilisation have been around for quite a while, changes in management and utilisation techniques are not visible on the ground. This section will give a review of the documents that were available to the author. 2.1.1 Characteristics of bamboo There are more than 1500 known species of bamboo in the world (Ohrnberger 1999), of these, Africa has 43 species covering about 1.5 million ha (Kigomo, 1998). Forty of these species are distributed in Madagascar while the remaining 3 are found in mainland Africa (Ensermu et al, 2000). MBA Project Report | 6
Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Bamboo species grow naturally on the mountains and highlands of Eastern African Countries and in the medium lowlands of other African countries (KEFRI, 2007). Bamboo is one of the important Non-Timber Forest Products (NTFPs) sharing a number of characteristics with other NTFPs in terms of its renewability and accessibility to rural poor people (Ensermu et al, 2000). The uses of bamboo makes significant contribution to rural livelihood and employment, although the rapidly diminishing supplies of forest bamboo through indiscriminate clearing of natural forests and the lack of government priority in its development erode its status in East Africa (KEFRI, 2007).
Bamboos are tall perennial grasses with tree stature that grow up to about 30 m in height and 35 cm in diameter (Kassahun, 2003). According to Kassahun (2003) and Luso Consult (1997) the average length measured in the indigenous bamboo forests of Ethiopia is 16.9 m with the maximum size being 23 m in height and 20 cm in diameter and the minimum height being 11.1 m.
In a fully developed bamboo root system, which occurs within 3-7 years after seeding, new bamboo shoots are produced every rainy season and attain full height and diameter in about 3 months (Kassahun, 2003; KEFRI, 2007). Bamboos get mature, strong and ready for utilisation after 3-4 years (Kassahun, 2003; Wimbush, 1945; KEFRI, 2007). As mature culms grow older, they deteriorate and eventually die and rot. The life of a bamboo plant is however sustained by the new shoots and culms (Ensermu et al, 2000).
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
One hectare of the highland bamboo forest is estimated to carry an average of 6000 culms (Kassahun, 2003); whereas that of a lowland bamboo carries an average of 8124 living culms and 4185 dead culms (Ensermu, et al 2000).
It is generally recommended to harvest only the mature bamboo culms (3 -4 years and up) and up to 70% of the culms on a given surface. Effective bamboo management involves systematic but selective cutting of mature culms, thereby harvesting a crop that is valuable. The removal of mature culms also ensures the vigor of the plant and allows for generation of new shoots (KEFRI, 2007). On the other hand, clear cutting depresses the rate of recovery of bamboo after cutting (Wimbush, 1945 cited in Kigomo, 1998).
Most bamboo plants flower only once in their lifetime (14-50 years in most species) and then die soon after (Luso consult, 1997; Kassahun, 2003). They emerge again from germinating seeds if the site is not severely disturbed by detrimental factors such as rodents, fire etc. These phenomena were observed in the lowland bamboo forest of Pawe, South Western Ethiopia where the whole forest flowered and died in 1998 (Kassahun, 2003). But this is not always the same for all bamboo species (Luso consult, 1997).
Bamboo forests are characterised by a complex network of root system making them more efficient than other forest species in holding soil particles together (Kassahun, 2003). Therefore, bamboos are excellent in preventing soil erosion,
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
promoting water percolation, and in sheltering the soil from wind erosion and sun drying (Kassahun, 2003; KEFRI, 2007). Further Bamboo litter fall improves soil structure and fertility (Fanshawe, 1972) and is a material source for furniture, building, pulp, bio-energy, food, forage and medicine (Liese, 1985). It is a
preferred material for various applications owing to its straightness, high strength, light weight, easiness of working with it, suitable fibre for pulp production and absence of bark (Suzuki and Jacalne, 1986). Bamboo shoot is of high nutritional value that can be used as source of food and feed (Ayre-Smith, 1963, Chaozong, 1995).
According to Kassahun (2003) Bamboos have the following limitations: 1. The gregarious flowering and eventual death of all bamboo trees in a forest is a characteristic that may seriously affect the sustainable supply of raw materials for bamboo-based industries; 2. Bamboo culm in storage and use is more susceptible to termites, insect borers and fungal attack than hard and soft woods, as it does not contain toxic substances unlike the latter species; 3. Bamboo culm preservation is less effective than most hard and softwoods because bamboo culm does not possess anatomical pathways which facilitate radial distribution of preservatives unlike in hard and soft wood stems. Moreover, culm skin are impervious and thus preservative
penetration through them is limited;
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
4. A preservative method that is equally effective, cheap and safe as for hard and soft wood has yet to be developed; 5. The maximum attainable diameter is limited by their primary growth as they do not increase their diameter through secondary growth unlike hard and soft wood species. 2.1.2 Bamboo species in Ethiopia The existing information about the distribution and coverage of bamboo in Ethiopia is rather limited. The study by Luso consult (1997) found that topographic maps of the Ethiopian Map Authority (EMA) miss some of the existing highland bamboo areas in Ethiopia; whereas highland bamboo areas shown on the maps prepared by Chaffey (1979) are far more complete but a bit more generalised than indicated in the EMA maps. Therefore, on a new general bamboo map produced by Luso consult, the highland bamboo areas from both Chaffey and the EMA maps were combined. In this regard, the total area of mapped highland bamboo (Yushania alpina) in Ethiopia is 129,000 ha. The highland bamboo area gives a good indication since these areas have been mapped quite accurately from aerial photographs. Since most highland bamboo areas are located in remote and inaccessible areas with a relatively low population pressure, it is assumed that the total highland bamboo area has not decreased significantly (Luso consult, 1997). See appendix 1 for distribution of highland bamboo in Ethiopia.
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
The total area of mapped lowland bamboo (Oxytenanthera abyssinica) on the other hand, amounts to 480,510 ha (Luso consult, 1997, Kassahun; 2003; Ensermu et al, 2000). However, this figure of lowland bamboo area is heavily underestimated and does not represent the real area, since a lot of spatial data are missing for this land cover type (Luso consult, 1997). WoldeMichael Kelecha (1980) estimated the lowland bamboo to be about 1,000,000 ha but according to Luso consult (1997), this figure is based on unverified assumption. Luso consult (1997) estimates area of lowland bamboo in north western part of Ethiopia between 200,000 and 350,000 ha which makes the estimation of lowland bamboo between 700,000 and 850,000 ha; though settlements may have reduced some of the bamboo areas.
Two important factors influencing the occurrence of bamboo in Ethiopia are rainfall and altitude (Luso consult, 1997). The highland bamboo grows in the central, southern, south-western and north-western parts of the country in an altitude ranging from 2200 – 4000 m asl. (Ensermu et al, 2000; Luso consult, 1997). The highland bamboo covers areas between the Bale Mountains, Bonga and Metu in the south and south-western part of the country and all the way to Dangla in the north (Ensermu et al, 2000). This species grows in montane forest, often on fertile, volcanic soils and forms extensive pure stands (Luso consult, 1997). The range of temperature where Y. alpina grows well is 10 – 200c.
Rainfall also influences the occurrence and growth potential of the species. In
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Ethiopia its rainfall range falls in general between 1500 and 2000 mm and it is found as far north as 11oN and as far east as 40oE (Luso consult, 1997).
According to Luso consult (1997), generally in East Africa the species is in pure stand where rainfall is >800 mm/year; in under storey scrub bamboo where the rain is between 1000 -1200 mm and in bamboo / Podocarpus canopy mixture where rainfall is between 1200 – 1800 mm. The species is therefore a highland, low temperature demanding species, and requires high rainfall. Culms of the highland bamboo reach a height of 10 -18 m and a diameter of 10 -16 cm. Mean culm size in the low and highland bamboo forest is 5 cm and 7 m and 8 cm and 17 m of diameter and height, respectively (anonymous, 1997, sited in Kassahun, 2003). Table 1 - General characteristics of the Ethiopian highland bamboo forests Mean altitude Mean annual rainfall Total area Stand density (tree / ha) Percentage of dead trees Culm Ratio of old to new shoots Seeds 2200 – 3200 m 1950 mm 130,000 ha 6000 27 Hollow 5:1 Most empty, not viable
Source: Anonymous, 1997; cited in Kassahun (2003). Ecological Aspects and Resource Management of Bamboo Forests in Ethiopia, Swedish University of Agricultural Sciences, Uppsala, p.12
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
Lowland bamboo on the other hand grows only in the western part of the Ethiopian lowlands along major river valleys and in areas bordering the Sudan (Ensermu et al, 2000). This species occurs between 700 – 1700 m asl with an average annual rainfall above 700 mm (Ensermu et al, 2000).
The flowering, seeding and dying of Y. alpina has been reported by Wimbush (1947) to occur in patches, not normally large. Sometimes this may extend to several hectares but no record of extensive flowering has been recorded. Observations in the field by Luso consult (1997) have confirmed this observation along with confirmation from local people around Masha area. Studies by Wimbush (1947) in Kenya on Y. alpina estimated that the life cycle of the species is more than 40 years. It is not however clear whether it is much longer or shorter in other places like Ethiopia where the species also grows (Luso consult, 1997).
Both the highland and lowland species are endemic to Africa, confined to the sub-Saharan region (Ensermu et al, 2000). These forests were until recently protected by their remote and inaccessible locations, however, they are now fast disappearing due to improvements in road networks and establishment of villages within and around the bamboo forests (Kassahun, 2003).
Bamboos are multipurpose plants of high economic and environmental value that convert solar radiation into useful goods and services better than most tree species. Developing countries like Ethiopia that are aspiring for better welfare
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Value Chain Analysis for Bamboo Originating from Shedem Kebele, Bale Zone
and faster rate of development, therefore, need to preserve their remnant bamboo forests and expand their resource base. They must also ensure the steady increase, stability and sustainability of bamboo forest production and utilisation activities (Kassahun, 2003). 2.1.3 Status of highland bamboo forests in Ethiopia In Ethiopia, high proportion of dead biomass characterises the highland bamboo stands. According to Ensermu et al (1997), this may be attributed to a prolonged cutting cycle and low cutting intensity. According to Kassahun (2003) the remnant natural bamboo forests of Ethiopia are in a neglected state through lack of management. The condition of the Masha bamboo forest in Southwest Ethiopia was found to be a typical example by this study. The age structure of Masha bamboo forest was heavily skewed towards old trees and the annual litter fall (11t / ha) was larger than the current above shoot