Side Selling In Malt Barley Cooperatives

January 9, 2019

Self Help Africa (SHA) has been implementing a project since 2010 targeted at increasing the income of malt barley farmers in Ethiopia through more effective cooperative management in Arsi and West Arsi Zones of Oromia region. The project has been supporting Galema and Raya Kejewa cooperative unions to ensure efficient aggregation of products, better access to markets for purchase of inputs and sale of product, and better prices. The results of this study indicate the need for strategic interventions in six major areas to minimize side selling and further strengthen market arrangements through contracts, which are presented in the first table.

Challenges to side selling can be categorized as those related to:
• ensuring production of required quantity of malt
with required quality,
• managing the free rider problem,
• ensuring timely purchase of produced malt barley,
(relationship of primary cooperatives with contract
providers esp. with unions,
• competitiveness in marketing service provision
compared to other market actors
• the need for wider stakeholder engagement.

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