Cooperatives or associations? Options for wood value chain upgrading in Hawassa, Ethiopia
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Smallholder tree growers in rural areas are the backbone of Ethiopia’s supply of wood products. Equally, the small-scale wood processing sector contributes in adding value to locally sourced wood products. However, those up- and midstream value chain actors are faced with various challenges, notably information asymmetry, and limited access to technical and financial support. Collective action offers the potential to counter such challenges. However, the mechanism in which small-scale wood producers and processers could cooperate horizontally still begs for further scrutiny. This research explores organizational arrangements that facilitate upgrading of wood value chains through horizontal collective action approaches. The research employs the embedded multiple case study approach, consisting of two cases at the level of smallholder tree farmers (producers), and of small-scale furniture enterprises (processors) in Hawassa Town District, southern Ethiopia. We conducted focus group discussions and interviews with 185 rural smallholders as well as 54 urban small-scale furniture enterprises, and 12 key informants. For the case of rural smallholders, a forestry cooperative as a collective form of organization is proposed. Among the sample, 73% expressed their willingness to participate in a cooperative that would arrange harvesting and transporting of wood products from their woodlots to a marketplace in Hawassa. For the case of urban small-scale furniture processors, the business association model is proposed, where 95% expressed willingness to participate. The association would ease access to trainings, represent members’ interest in policy environment, and facilitate networking. These findings stress the importance to have organizational arrangements tailored to the aspirations of each actor groups along the value chain. The proposed organizational arrangements further imply the need for empirical research to test the conceptual models.
Keywords: Decent employment, Value chain, Social protection, Decent employment, Economic Development
ID: 3486535