RAPID RICE MARKET ASSESSMENT ON

DIFFERENT END MARKETS

By MEDA-EMERTA Rice Team

SEPTEMBER 1, 2017

Bahir Dar
 Rapid rice market assessment on different end markets

Table of Contents
1. Introduction.........................................................................................................................................2
2. Objective of the assessment.................................................................................................................2
3. The main questions raised for discussion.............................................................................................2
4. Methodology.......................................................................................................................................2
5. Result and Discussion..........................................................................................................................3
5.1 Wholesale market........................................................................................................................3
5.2 Supermarkets...............................................................................................................................4
6 Key findings........................................................................................................................................5
6.1 The emergence of Indian broken rice into Ethiopian market threatens local rice.........................6
6.2 Comparison of local and imported table and broken rice.............................................................6
6.3 The market channels....................................................................................................................6
6.4 The identified actors and their functions in value chain...............................................................7
6.5 Market Map.................................................................................................................................8
6.6 Identified target markets and its characteristics...........................................................................8
6.7 Product type with consumer preference.....................................................................................10
7 Recommendations.............................................................................................................................11
7.1 Specific recommendations from supermarkets and wholesalers................................................11
8 Next action........................................................................................................................................12
9 Annex................................................................................................................................................13

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 Rapid rice market assessment on different end markets

1. Introduction
MEDA’s EMERTA project is following market system development oriented approach to improve
income and create job opportunity for rice producers within the target woreda of Dera, Fogera and
Libokemekem in Amhara. To be successful in this market system development approach, the project aims
to improve the business performance of producers and MSMEs focused on women and environmental
considerations to have better market opportunities with in regional and national market by identifying the
possible market out lets and target markets.

To identify the actual market outlets and target appropriate markets, the Rice team has conducted quick
market research to know the market opportunities for processors in rice business using the rapid Market
assessment tool in Addis Ababa, Gondar, Woldia, Dessie and Bahir Dar with the objectives of creating
sustainable market linkage of the rice value chain actors participating in rice business found in the project
areas. Within this specific market assessment, 5 market out lets and 3 target markets (whole sell market,
retail market and super markets) are identified for both white milled rice and parboiled rice.

2. Objective of the assessment

 To know the Potential Market out lets of rice (milled and parboiled)
 To identify the target markets for milled and parboil rice
 To identify the market opportunities of rice processors found in the project areas

3. The main questions raised for discussion

 Where do you get the rice from?
 Do you have the market linkage with Fogera, Dera and Libo kemkem processors and
wholesalers?
 How do you see the quality of the rice found from the project areas?
 Do you have an interest to create market linkage with the processors and wholesalers found
in the project areas?
 What are the problems and possible solution to create market linkage?

4. Methodology

For this specific market assessment, the rapid market assessments tool was employed to get the relevant
information from a total of 28 traders found in the target markets (11 wholesalers, 2 Ethiopian Trading

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 Rapid rice market assessment on different end markets

Business Corporation business units, 1 consumer association, 4 retailers and 10 supermarkets)

purposively selected and identified in the 5 market outlets (Gondar, Dessie, Woldia, Bahir Dar and Addis
Ababa). Interview was conducted using structured questioners and discussion was made with the
respective managers and directors. The information was analyzed in Qualitative and quantitative ways.

5. Result and Discussion

The result and discussion part of this market assessment report is classifying in each of the target markets
separately (wholesale and super markets) relation with the product type they marketed.

5.1 Wholesale market

Thirteen whole sell markets were supervised and discussion was made with 5 identified market out lets
located in Gondar, Woldia, Dessie, Bahir Dar and Addis Ababa (Messalemiya and others). The whole sell
markets are selling the products for the retailers mainly for the purpose of mixing with Teff for Injera
which is low grade rice but, small portion of the rice considered less broken is sold to individual
consumers for table rice or home consumption purpose. The whole sell market has marketed both the
imported rice and local rice segmented their customers. Per the discussion made with the whole sell
market marketing managers and owners, they clearly put the problem of the local rice.

Local rice supplier problems in the project areas are

1. Inconsistent supply
2. Poor quality mixed with (broken, sand, and other dust particles)
3. Un attractive packaging
4. High price
5. Not properly weighted (sometimes over weighted or under weighted)

Due to such problems of the local suppliers, the whole sellers are shifting to the imported rice which full
fills quality parameters based on customer’s demand indicated underneath:

 Good quality broken/unbroken rice

 Clean and free from any sand and dust particles with average price
 Appropriately packed with 50 kg and 100kg sack
 Correctly weighted and sewed with good sewing machine
 Well graded and labeled

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Ethiopian trading business corporation (Et fruit and Alle Bejimla) are mainly playing the role of whole
selling and some retailing using the retail shops they have. Both these organization, Et fruit and Alle
Bejimla are the business units of the Ethiopian trading business corporation, supervised under ministry of
trade and they are government public enterprises involved in trading of consumer products, such as
different grains, coffee and fruits and vegetables. The companies are working throughout the country. Et
fruit has 64 retail outlet shops in Addis Ababa; through these shops different types of consumable goods
like pasta, macaroni, vegetable and fruit, oil, sugar and others are sold.

Per the discussion made with Et fruit Purchase and sales directorate, rice is new for Et fruit, but he has
indicated his interest to create market linkage with producers and processors and to sell in the retail out let
shops. He expressed that the company is highly demanding to buy and sell quality and bulk local rice
products either by packing by their own package or receives as it is by supplier’s package. While doing
these, the company has required legal agreements (MOU) legal traders and receipts. As his expression,
the company has no financial problem to do the business, as soon as the suppliers delivered the product as
per the company quality requirement the payment will be made as soon as possible.

In addition, the business trading corporation, Alle Bejimla likes the idea of MEDA. The company
imported around 400 metrics tons rice per month and has been facing foreign exchange currency shortage
while importing. In addition to imported rice, the company is buying from domestic rice suppliers like
Saudi star (Horizon plantation) however there is still supply shortage to cover the excess demand from
their customer. Therefore, Alle Bejimla has happily expressed its interest to buy domestic rice from
Amhara and to retail throughout the countries wholesale shops.

During the discussion, the manager expressed his willingness to work with MEDAs clients with contract
agreement. As a requirement, the company needs legal licensed traders and these traders must present
legal receipts while trading. The opportunity for suppliers through the company will include embedded
services to its product suppliers through its own consultancy team, market assessment team, sales persons,
and market surveillance team about product development, packaging, market information, price
information, and other services, thus creating linkage with this organization will increase the benefits of
the clients. Finally, the company manager enquired to see sample products of the Amhara rice before
getting into contract agreement and asked to sign a contract agreement and work with selected traders as a
pilot project and then will be expanded by taking the experience.

5.2 Supermarkets

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Ten supermarkets were interviewed and discussion was made with their respective owners and managers
in Gondar, Woldia, Dessie, Bahir Dar and in Addis Ababa. This market is highly demanding quality and
branded rice product is marketed to customer for those who have higher purchasing power and it is
untouched market by the local rice producers/processors because of poor quality and packaging.

According to the respondents revealed during the discussion, the local rice product quality is very poor,
the packaging is poor and do not attract buyers, and the shelf live is shorter than the imported rice; due to
these reasons, they are not selling local rice in their shops. Mainly imported table grade parboiled rice is
sold in all the visited supermarkets with an average price of 50 birr per kg . Out of the visited ten
supermarkets, only in one of the supermarket (Save way supermarket Gurd shola branch) red brown local
rice is found, but the product has been found attacked by weevils and less quality. However, all
respondents have shown interest to be involved in the business, provided that the product quality,
packaging, brand and consistent supply are improved. Abadir Supermarket different from others has an
experience of repacking imported rice with his own package and expressed his willingness to pack and
sell the local parboiled rice in the supermarket using his own packaging material.

The types of products sold in the super markets are:

1. White basmati rice with attractive package, label, and different size
2. Parboiled rice (White and brown)
3. Brown rice
4. Red rice (Amhara rice) and
The supermarkets are demanding

 High quality unbroken rice; clean and free from any sand and dust particles with average price.

 Appropriately packaged with attractive and transparent 1kg up to 5kg package

 Having long time shelf live

 Correctly weighted

 Graded and standardized

6 Key findings

The identified end markets/destination markets are five in which imported as well as local rice products
traded. In these markets competing products are being sold to different consumers. When consumer buys

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rice, they take into consideration its quality, taste, flavor, package, packaging style and size, shelf life,
easy for cooking etc to maximize their utility. As per the assessment, due to the less quality of the rice,
poor packaging and taste farmers as well as processors/wholesalers are not competing in the identified
markets with imported rice. The forward and backward linkage among traders is very weak; the
information exchange is weak which is made by telephone conversation or through brokers; and product
delivery and payment system is traditional, usually done by trust no written agreement.

6.1 The emergence of Indian broken rice into Ethiopian market threatens local rice

Indian broken rice recently begins imported in bulk in to Ethiopia with low price, good packaging, good
quality, high purity, free from dust and consistent supply; due to these reasons consumers are shifted
from buying domestic rice to Indian rice. This has negative impact on producers as well as farmer’s
income. Therefore, government and NGOs should give emphasis on the rice value chain development to
win over Indian rice by improving the production, processing, packaging, branding, promotion, financial
support, creating strong market linkage among value chain actors and strengthen enabling environment.

6.2 Comparison of local and imported table and broken rice

Product attributes Ethiopian rice Foreign rice/India, Pakistan etc./

Table Broken Table Broken
Quality Low low High High
Quantity of supply Less Less Consistent Highly consistent
consistent consistent
Package Poor package Poor Good package with Good and
with different 50 kg attractive
size package/Jar,
plastic, sack /
Amount of mix with teff High Low (Because it
(Because increases the
it dryness of the
increases enjera)
softness of
the enjera)
Taste Good Good taste Very tasty Less tasty for
for enjera enjera
Purity Less pure Less pure Very Good Very good
Breakage level >1% <100 % Almost 0 % 100%

6.3 The market channels

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During the discussion with traders, we have asked to mention their suppliers and buyers (from whom they
are buying and for whom they are selling) , location and name of the traders. Most of the respondents
replied that the main source of rice is from South Gondar and they have mentioned the name of their
suppliers so that it helps the team to see the marketing channels. Accordingly, the team has identified the
following 5 major rice marketing channels through which different rice products, like milled and
parboiled rice, flows:

I. Producers to processors to wholesalers to retailers to consumers

II. Producers to collectors to processors to wholesalers to retailers to consumers
III. Producers to parboilers to processors to distributors to supermarkets to consumers
IV. Producers to cooperatives to union to wholesalers to retailers/grain millers to consumers
V. Producers to processors to brokers to wholesalers to consumers

6.4 The identified actors and their functions in value chain

Producers: are farmers who are producing paddy rice/milled rice and found in the three intervention
woredas and supplied the product either to processors or cooperatives or aggregators.

Aggregators: are individuals or group traders working around the producer woredas collecting paddy rice
and sell it to processors to get profit.

Processors: are owners of traditional or new processing machine giving milling service to producers and
also buys the milled rice from producers to sell it wholesalers to get profit.

Parboilers: owns parboiling machine to parboil paddy rice to increase the quality of table rice.

Wholesalers: are traders who buys bulk milled rice from processors or aggregators and sold to retailers
or supermarkets or brokers or other wholesalers outside intervention woredas.

Retailers: are traders who buys milled rice from wholesalers and retail it to consumers.

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6.5 Market Map

Product flow (Milled and parboiled rice)

Target markets

Mesalemiya

Parboilers Gondar,
Wholesal
Paddy Woldia,
er/
suppliers Dessie and
distributo
rs others Consumers
Processors/
wholesalers
Supermarkets

EBTC (Et fruit

and Alle
Bejimla)

Payment flow

Information flow

Support Services
Training, Consultancy, Packaging, Finance, Brand, License, Financial management etc.

6.6 Identified target markets and its characteristics

SNo. Type of target Demanded Packaging type Required quality Next action
markets product type and standard
1 Mesalemiya White good By 50 kg and  Good quality,  Create a
wholesale quality full grain 100 kg, good free from dust discussion
and /or broken and labeled and stone between

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rice package  Appropriately suppliers and

packaged and buyers
labeled  Improve quality
 Consistent and  Improve
bulk supply packaging,
 Legally labeling
licensed traders  Create a
 Legal receipts forward market
linkage
 Assist
processors to
use improved
technologies
 Promotion
2 Supermarkets Good quality (1 st
Preferred  Good quality  Work with
grade) white package is 1 kg, rice of brown, supermarkets
rice, brown, red 2 kg, 3 kg and white, red and and link
and parboiled 5kg size parboiled rice suppliers i.e.
rice transparent,  Attractive parboilers and
attractive and it package and selected rice
is good if label, label processors
expire date,  Brand  Identify good
cooking  Legal traders quality rice
instruction owned legal suppliers
written on it vouchers or  Identify
receipts package
 Consistent producers and
supply consult to
 Vacuum produce good
packaging quality package
as per the
requirement of
supermarket
 Organize value
chain actors
meeting to
discuss issues
and forward
possible
solutions
 Promotion
3 EBTC (Et fruit Good quality Packed with  Good quality  Identify
and Alle white, brown, quality and rice of brown, suppliers and
Bejimla) red and attractive white, red and link with ET-
parboiled rice packaging parboiled rice fruit and alle
holding size 1kg  Attractive bejimla
2kg, 3kg etc up package and  Conduct
to 100 kg label Signing of
 Brand contract
 Legal traders agreement

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owned legal  Follow up the

vouchers or transaction
receipts between them
 Consistent  Conduct
supply periodic
discussion with
both.
 Promotion
4 Retailers Good quality Packed with  Good quality  Create linkage
white, brown, quality and rice of brown, between
red and attractive white, red and wholesalers and
parboiled rice packaging parboiled rice retailers
holding size 1kg  Attractive  Promotion
2kg, 3kg etc up package and
to 100 kg label
 Brand
 Legal traders
owned legal
vouchers or
receipts
 Consistent
supply
5 Consumer Quality white, Packed with  Good quality  Organize
cooperative brown, red and quality and rice of brown, discussion
parboiled rice attractive white, red and workshop
packaging parboiled rice between
holding size 1kg  Attractive producer
2kg, 3kg etc up package and cooperatives
to 100 kg label and consumer
 Brand cooperatives
 Legal traders  Develop
owned legal agreement
vouchers or document for
receipts signature
 Consistent  Work on
supply product
development,
quality
improvement,
packaging
development

6.7 Product type with consumer preference

SNo. Type of rice product Consumers Use

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1 White milled/unbroken rice Individual consumer, Table rice, recipes/soup,

hotels, restaurants, broth, gruel, kinche,
universities, porridge, etc/, injera
supermarkets making,
2 White brown rice Individual consumers, Table rice, recipes/soup,
hotels, restaurants, broth, gruel, kinche,
supermarkets porridge, etc/,
3 White broken rice Millers, individual Recipes/soup, broth,
consumers, universities, gruel, kinche, porridge,
flour industry, bakeries, etc/, injera making,
supermarkets
4 White parboiled rice Hotels, individuals, Table rice,
restaurants,
supermarkets
5 Red brown rice Individuals, hotels, Table rice
restaurants,
supermarkets
6 Red brown parboiled rice Individuals, hotels, Table rice
restaurants,
supermarkets
7 Rice flour Individuals, hotels, Bread and Enjera
restaurants, bakeries, making, Recipes/ soup,
injera makers, broth, gruel, kinche,
universities, porridge, etc/
supermarkets

7 Recommendations

 Arranging regional workshop to aware regional key government officials, selected processors and
wholesalers to take the remedial action of foreign broken rice into the Ethiopian market
 Organize key value chain actors meeting to create strong market linkage based on forward
contract marketing using written contract agreement.
 Work on quality improvement through EIGP support,
 Work on packaging improvement and labeling
 Producing different type products as per the consumer’s demand
 Conduct extensive promotion through media, publication, food taste, event and bazaar.
 Government and NGOs give emphasis on the rice value chain development to win over Indian
rice by improving the production, processing, packaging, branding, promotion, financial support,
creating strong market linkage among value chain actors and strengthen enabling environment.

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7.1 Specific recommendations from supermarkets and wholesalers

 Advice processors to improve quality and supply unbroken rice; Assist processors to grade their
product and to separate sand and any other dust particles
 Consult to improve packaging and labeling (assist to pack in clean materials and use different
packaging size pack by 1kg, 2kg,3kg ,5kg, 25kg, 50 kg and 100kg)
 Improve the supplying capacity sustainably (assist processors to meet the buyer’s minimum
requirement, helping to handle a quick reorder)
 Delivery time (Help producer and processors to deliver on time, as ordered, with few major
glitches that demand the buyer’s time and attention)
 Advise processors to pack by using vacuum packaging machine.
 Assisting processors to produce quality rice and supplying to the market by packing with
attractive packaging materials as per the consumer’s interest.
 Advise to improve the quality; grade, separate stone or any other dust materials
 Train processors in quality production
 Introduce best processing machines

8 Next action

Within this assessment, 11 whole sellers were identified to make a forward contract with the processors
and cooperatives found in the project areas of EMERTA. The identified whole sellers found in the 5
market out lets of Gondar, woldiya, Dessie, Bahirdar and Adis Ababa are 1, 2,3,1 and 4 respectively. It is
a good opportunity to create market linkage in sustainable and trust development among the actors.

 Sending sample products to Et fruit and Alle Bejimla

 Selection of traders
 Preparing contract agreement
 Creating discussion between traders and Et fruit and Alle Bejimla

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 Organizing contract signing

 Work with partner organization to assist suppliers to send product as per the agreement
 Supplying product by grade like broken rice, red brown rice, white parboiled rice and white
quality rice
 Monitoring the activity

9 Annex

List of respondents

SNo. List of traders Type of business Address / head Telephone of contact

involved office location person
1 Etfruit(Ethiopian Ethiopian trading Addis Ababa /Kera Contact person Ato
trading business business corporation Gashaw 0913086244
corporation; fruit and unit /public enterprise purchasing and sales
vegetable trading director
business unit) 0114163665
2 Alle Ethiopian trading Addis Contact Person Ato
Bejimla(Ethiopian business corporation Ababa/Lancha Adane
trading business unit /public enterprise 0930106428 -Director
corporation; consumer Wholesaling
products trading
business unit)
3 Abadir Shopping Supermarket/ retailing Addis Ababa/4 Ato Adanan Beshir
center Supermarket Kilo Helico (Managing director)
Building 0911516569
0116478873
4 Safeway Supermarket Supermarket/ retailing Addis Ababa/Gerji Ato Mesfin Gebre
Purchase office head
0930012593
5 Lomyad Supermarket Supermarket/ retailing Addis Ato Haile – General
Ababa/Michael Manager
CMC 0912502348/0912502349
6 Bambis Supermarket Supermarket/ retailing Bambis 011550 55 84 Mensur
Purchase head
7 All Mart Supermarket/ retailing Gerji 0116295876
8 Shoa Supermarket Supermarket/ retailing Bole Wole sefer 0115506104
0911820629 Shefa
0912086324 Mohammed
HRM
9 Suleyman Ahmed Wholesaling Mesalemiya 0911447560
10 Kidane Teferi Wholesaling Mesalemiya 0911666384
11 Tilahun Gezahagn Wholesaling Mesalemiya 0911405922
12 Esmael Muhammod Wholesaling Mesalemiya
13 Ebrahim Amdie Wholesaling/Agent Mesalemiya 0911837393/0918764363
14 Kedija Wholesaling Mesalemiya

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15 Abdi Wholesaling Mesalemiya

16 Seid parboiled rice Retailing/Distribution CMC 0911640110
representative
distributor
17 Ato Baye Zeleke Retailing Gonder, Cherkos 0918032225
sub city
Arada ,kebele 07
18 Ato Shikor Retailing Gonder, kebele 07 0918772749
Mohammed Arada
19 Ato Kassaw Baye Retailing Gonder, kebele 07 0918788654
20 Yodahe Supermarket Supermarket /retailing Gonder Piasa Contact person Temesgen
Deribe, 0918780852
21 Best supermarket Supermarket/ retailing Gonder/Yemisirach Contact person Fasikaw
Area Adane,
091108286/0918772252
22 Ato Fentaw Wondimu Wholesaling Woldiya 0914716939
23 Ato Mariye Teferi Wholesaling Woldiya 0920187678
24 Ato Adem Ababu Wholesaling Dessie/ Sherf Tera 0914710390
25 Lakomelza consumer Wholesaling Dessie/Dandiboru Contact person Ato Yesuf
cooperative union area Mohammed manager
0919761778
26 Kesis Desalegn Retailing Kombolcha 0920475651
27 Papilon supermarket Supermarket/retailing Dessie Contact Person Ato
Ahmed 0932363305
28 Family supermarket Supermarket/piasa Dessie

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