Contents

page numbers
Chapter one Introduction................................................5
Background............................................................................................................. 5
Problem statement.................................................................................................. 8
Purpose................................................................................................................... 8
General objectives................................................................................................... 8
Specific objectives................................................................................................... 9
Research questions................................................................................................. 9
The scope of the study:........................................................................................... 9
Geographical scope.............................................................................................. 9
Content scope...................................................................................................... 9
Time scope........................................................................................................... 9
Significant of study................................................................................................ 10

Chapter two Literature review.......................................11

Introduction........................................................................................................... 11
Economic important.............................................................................................. 11
Role of economic contribution............................................................................... 12
Economic Contributions by Commodity Groups....................................................12
VALUE ADDED IS IMPORTANT................................................................................. 13
Value addition of agriculture reduced unemployment...........................................13
employment contribution...................................................................................... 14
Economic contribution........................................................................................... 14
Poverty Alleviation................................................................................................. 15
Value addition:...................................................................................................... 15
Approaches to Adding Value..................................................................................16
Innovation.......................................................................................................... 16
Coordination....................................................................................................... 16
Following are some important steps listed by one expert to establish a valueadded business:.................................................................................................... 17
1

Steps to Success in Value Added establishment...................................................17

Four methods are identified for producers to add value to their production.........17
The strategies that has greater opportunity of value addition of agricultural
products................................................................................................................ 18
21ST CENTURY GRAIN........................................................................................... 18
PROCESSING COOPERATIVE................................................................................... 18
PHENIX MANUFACTURING...................................................................................... 19

Chapter three...............................................................20
Methodology.................................................................20
Introduction........................................................................................................... 20
Research design.................................................................................................... 20
Research population.............................................................................................. 20
Sample size........................................................................................................... 20
Sampling Procedure.............................................................................................. 21
Research Instruments............................................................................................ 21
Questionnaire........................................................................................................ 21
Interviews.............................................................................................................. 22
Sources of data..................................................................................................... 22
a) Primary source............................................................................................... 22
b) Secondary source.......................................................................................... 22
Data Gathering Procedure..................................................................................... 22
Data Analysis........................................................................................................ 22
Research Limitations............................................................................................. 22

CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND

INTERPRETATION...........................................................23
Introduction........................................................................................................... 23

Table no: 1 what is your gender.....................................24

List of graphs...............................................................24
Graph no: 1........................................................................................................... 24

Table NO:2 What is your age..........................................25

GRAPH NO:2.......................................................................................................... 25

Table 3 marital status....................................................26

GRAPH NO:3 SHOWS MARITAL STATUS OF RESPONDENTS....................................26

Table 4 how long have you been living here...................27

GRAPH NO: 4 shows how long have you been living here.....................................27

Table 5 living place.......................................................28

GRAPH NO: 5 shows living place............................................................................28

Table 6 educational level...............................................29

GRAPH NO: 6 shows Educational levels.................................................................29

Table 7 occupation........................................................30
Graph no: 7 shows occupation..............................................................................30

Table 8 shows what is the important value addition of

agricultural product in economic contribution................31
Graph no: 8 shows what is the important value addition of agricultural products in
economics............................................................................................................. 32

Table 9 How we starting agricultural product that added

value in economic.........................................................33
graph no:9 How we starting agricultural product that added value in economic......33

Table 10 shows what is the factors effecting local value

addition of agricultural products...................................34
Graph no 10 shows what is the factors effecting local value addition of agricultural
products................................................................................................................ 34

Table 11 shows How to improve standard live of the farmers 35

Graph no: 11 shows how to improve standard live of the farmers........................35

Table 12 shows Improving of agricultural products increase

income of the farmers...................................................36
Graph no: 12 shows improving of agricultural products increase income of the
farmers.................................................................................................................. 36

Table 13 shows how to creating value addition of

agricultural products.....................................................37
3

Graph no 13 shows how to creating value addition of agricultural products.........37

Table 14 How the value additions of the agricultural

products increase demand of the market.......................38
Graph no14: how the value additions of the agricultural products increase demand
of the market......................................................................................................... 38

Table 15 what are the additional opportunity for increasing

value of agricultural product.........................................39
Graph no: 15 shows what are the additional opportunity for increasing value of
agricultural products............................................................................................. 39

Table 16 shows Value additions of agricultural products

increase income of farmers...........................................40
Graph no: 16 shows Value additions of agricultural products increase income of
farmers.................................................................................................................. 40

Table 17 shows Is the increase income capital of farmers

increase economic level................................................41
Graph no 17 shows Is the increase income capital of farmers increase economic level
.............................................................................................................................. 41

Chapter five conclusions and recommendation...............42

Conclusion............................................................................................................. 42

Recommendation of value addition of agricultural

products and their economic contribution......................44
Recommendation by farmers................................................................................44
Producers.............................................................................................................. 44
Government recommendation...............................................................................45
Recommendation of processors............................................................................45
Recommended agricultural extensions.................................................................45

Reference.....................................................................46
Appendixes...................................................................48
Appendix 1: Questionnaire.................................................................................... 48
APPENDIX II: TIME FRAME...................................................................................... 51
4

APPENDIX III: BUDGET........................................................................................... 52

Curriculum vitae.................................................................................................... 53

Chapter one Introduction

Background
Somaliland republic is located in the Horn of Africa. Its boundaries are defined by the Gulf of
Aden in the north, Somalia in the east, the Federal Republic of Ethiopia in the south-west, and
the Republic of Djibouti in the north-west. It lies between Latitudes 8o and 11o27 North and
Longitudes 42o35 and 49o East; it has mountain ranges rising up to six and seven thousand feet
in the center and in the east of the country respectively.
The total area of the Republic of Somaliland is 137, 600sqkms, and it has a coastline which is
850kms long. Somaliland is located north of the Equator. It is semi-arid. The average daily
temperatures range From 25oC to 35oC. The sun passes vertically overhead twice a year, on 22
March and 23 September.
Somaliland consists of three main topographic zones:
The Coastal Plain (Guban)
The Coastal Range (Ogo)
The Plateau (Hawd).
Borama is located about 120km in Hargeisa, the main capital city of Somaliland.
Many raw commodities have value in their original state.
They are raised by an agricultural producer; then sold by that producer for further processing
Corn, wheat, weaned calves, market lambs, watermelons etc. all HAVE value. They are worth
something
Like most other countries in the sub-Saharan Africa, Kenyan economy is predominantly
agricultural. The sector accounts for 24.2% of the GDP, over 60% of exports, 75% of the total
labour force and over 80% of industrial raw materials (Owuor 2009). Therefore agricultural
productivity remains crucial to the nations economic development and welfare of her people.
Due to this, agricultural and financial sectors were identified as twin engines for economic
growth in the national vision 2030 (GoK 2007) which aims at transforming the economy to a
newly industrialized economy by the year 2030. This national development plan emphasizes
5

linkages between these two sectors

A broad definition of value added is to economically add value to a product by changing its
current place, time, and form characteristics to characteristics more preferred in the marketplace.
As a specific example, a more narrow definition would be to economically add value to an
agricultural product (such as wheat) by processing it into a
product (such as flour) desired by customers (such as bread bakers). Producers involved in
adding value should think of themselves as members of a food company that processes
and markets products to consumers. Often, this may involve building processing plants in the
producers geographical regions to process locally produced crops or animals. However, another
model has occurred, which involves building the processing plant wherever it is most feasible
and profitable, such as closer to where the final products will be marketed. An example of adding
value to wheat through a distant processing plant is illustrated by the following case study. and
Johnson). By encouraging innovative ideas, adding value becomes a reality. Innovation also can
come from research about alternative crops that can be grown successfully by producers to
replace traditional crops. Value-added is if producers are able to economically profit by growing
these alternative crops instead of traditional crops. Some alternative crops that show promise
include industrial hemp for its fiber, kenaf for fiber, and castor bean for its oil. The following
case study describes an innovative nonfood use for a commodity common in Texas, but one that
could be considered an alternative crop,Value added refers to the additional value created at a
particular stage of production or through image and marketing. Value added agriculture is a
process of increasing the economic value and consumer appeal of an agricultural commodity. It
is an alternative production and marketing strategy that requires a better understanding of the
rapidly changing food industry and food safety issues, consumer preference and effective
management. It may not be inferred that value addition, means only processing a raw material
into some form of canned food. There are various ways of adding value to a commodity.
Further , in a country like India, the scope of Value addition is mind-boggling for the reason of
availability of raw material as well as the large market size. In the paper presented here, an
attempt is being made to study the sector of Value addition in agricultural products in the state of
Haryana (India), with a special focus on pickle manufacturing. In Addition, agriculture also
experiences low returns due to labour
underemployment in the sector and low value commodity output; since more than optimal
6

number of people are involved in the production process and the fact that output is marketed in
commodity form. This attracts low prices due to price depression actions of middlemen and
processors, high supply during harvest time when most peasant farmers sell their produce and
low demand especially for starchy cereals (Bozic et al. 2009). Value addition of
agricultural products related economics when the improved value added
products they contributed labor, market demand and income of the farmers,
Value added refers to the additional value created at a particular stage of production or through
image and marketing. Value added agriculture is a process of increasing the economic value and
consumer appeal of an agricultural commodity. It is an alternative production and marketing
strategy that requires a better understanding of the rapidly changing food industry and food
safety issues, consumer preference and effective management. It may not be inferred that value
addition, means only processing a raw material into some form of canned food. There are various
ways of adding value to a commodity. Further, in a country like India, the scope of Value
addition is mind-boggling for the reason of availability of raw material as well as the large
market size. In the paper presented here, an attempt is being made to study the sector of Value
addition in agricultural products in the state of Haryana
Vegetable has high value production plays important role in poverty
alleviation through employment generation, improving the feeding behavior
of the people, and creating new opportunities for poor farmers. Since the
labor to land ratio of vegetable cultivation is high, vegetable products are
bulky and perishable, and vegetable has continuous demand in the market,
its production and marketing allows high productive employment. Increasing
horticultural production and marketing thus contribute to commercialization
of the rural economy and create many off-farm jobs (Weignberger and
Lumpkin, 2005).
The value of agricultural products can be increased in endless ways: by
cleaning and cooling, packaging, processing, distributing, cooking,
combining, churning, culturing, grinding, hulling, extracting, drying, smoking,
handcrafting, spinning, weaving, labeling, or packaging

Adding Value Process of changing or transforming a product from its

original state to a more valuable state

Problem statement
Awdal region is located about 120km in northwestern maroodijeex the main region of
Somaliland

has large number of farms and produce more products but lack of agricultural

processing industries they doesnt produce value addition of agricultural products the main
problem of this region is perishable of agricultural when farmers produce large crops
Connecting smallholders to new dynamic markets for high-value products provides an
opportunity for more rapid reduction of poverty but also poses a challenge. It requires
investing in market infrastructure and upgrading farmers technical capacity to meet
demanding standards. Producer organizations are essential for smallholders to achieve
competitiveness, to realize economies of scale in market transactions, and to gain
market power
Enhancing value addition of agricultural product to contributed economic opportunity such as
increased demand of market reduce unemployment rate the must be established industrial
processing products or cottage industries to produce value addition of agricultural products

Purpose
The main purpose of this problem increasing agricultural products of awdal
region to achieve lower unemployment rate and Suggest policies and strategies
for scio-economic development of agriculture in the region

General objectives
Evaluate agricultural-value chain systems; and Reflect on alternative ways to increase
productivity, develop markets, and build up competitiveness to improve incomes and reduce
poverty in awdal region and involving agricultural processing industries expect benefits to arise
from a change in the form of the agricultural product

Specific objectives
i. To identify role of value addition of agricultural products in economic contribution and reduce
unemployment rate
ii. to develop standard live of farmers by increasing agricultural products
iii. to establish agricultural products that added value in economics by processing agricultural
products to increase demand of the market

Research questions
1. what is role of value addition in economic growth and how to reduce unemployment rate
2. how to develop standard live of the farmers and increasing agricultural products
3. how to processing agricultural products to save perishable products

The scope of the study:

Geographical scope

The research study is made value addition of agricultural products and their
economic contribution in awdalregion geographically located north west of
Somaliland they consisting four district boorama.bakilughaya and qulujeed
the capital city of this region is Borama,boorama is located about 120 km
North West of Hargeisa
Content scope

The study of this research was confined the value addition of agricultural
products and their economic contribution in awdalarea ,available improve
and scientific study options can be used to reduce un employment rate and
motivate agricultural production
Time scope

The first phase of the study was taken place from April to May in 2014 where
understanding, deciding and identification important value addition of
agricultural product,

the second phase of study was observations with market visits and data
collection which started June and ended July in 2014. However, the overall
time taken to complete this study was April to July in 2014

Significant of study
This study is one of the most important studies prepared at awdal region
especially value addition of agricultural products and economic contribution
this topic it is very helpful society in awdal region and also help every
organization formal or in formal which interesting development of this region
and helpful industries which interesting to start processing of agricultural
products,
The value addition of agricultural products it is play important role social
development it reduced unemployment rate increased income of the people
and also increased demand of the market otherwise value addition of
agricultural products is crucial for economically,
It is also useful for the researcher to complete this task to get their degree of
Bachelor science from Amoud University and to gain the experience how to
make a research for any interest issue.

10

Chapter two Literature review

Introduction
A broad definition of value added is to economically add value to a product by changing its
current place, time, and form characteristics to characteristics more preferred in the marketplace.
As a specific example, a more narrow definition would be to economically add value to an
agricultural product (such as wheat) by processing it into a
product (such as flour) desired by customers (such as bread bakers). Producers involved in
adding value should think of themselves as members of a food company that processes
and markets products to consumers. Often, this may involve building processing plants in the
producers geographical regions to process locally produced crops or animals. However, another
model has occurred, which involves building the processing plant wherever it is most feasible
and profitable, such as closer to where the final products will be marketed. An example of adding
value to wheat through a distant processing plant is illustrated by the following case study. and
Johnson). By encouraging innovative ideas, adding value becomes a reality. Innovation also can
come from research about alternative crops that can be grown successfully by producers to
replace traditional crops. Value-added is if producers are able to economically profit by growing
these alternative crops instead of traditional crops. Some alternative crops that show promise
include industrial hemp for its fiber, kenaf for fiber, and castor bean for its oil. The following
case study describes an innovative nonfood use for a commodity common in Texas, but one that
could be considered an alternative crop.

Economic important Value-added agriculture generates several billion dollars in

economic impact for the state of Texas each year. In fact, the economic impact of adding value
beyond the farm gate is usually several times the value of agricultural production at the farm gate
alone. Agricultural producers receive a much smaller portion of the consumers dollar than do
food processors, especially those who produce brand name items (e.g.,Sunkist, Del Monte).
11

Capturing those additional dollars or adding value to farm or ranch products is a goal of many
producers. Even for commodity products, such as beef, the farm-to-retail price spread indicates
that those further up the supply chain earn much more than producers at the ranch or farm level.
This leaflet defines value-added activities, outlines the economic forces that make adding value
important, and provides guidelines for starting your own value added business.

Role of economic contribution Using County Agricultural Commissioners data,

we estimate that the Southern California counties produced $8.2 billion (18%) of the states
$46.2 billion of agricultural value in 2010.4 Adjusted for inflation, in 2005 dollars the value of
Southern California agriculture is $7.4 billion. Over the last three decades, the real value of
agricultural production in Southern California has shown no apparent overall trend (Figure
3.4.1). Total production has ranged from $7.8 billion in 1990 to $6.6 billion in 1992, though
since the mid-1990s, production has generally stayed above $7 billion. The 11 percent drop in
Southern California farming from 1991 to 1992 was not apparent in the rest of the state and may
have been the result of several years of ongoing drought. Mainly fruit, nut, and poultry product
sales were affected. However, in each of the southern counties, real agricultural production value
has shown very different trends, as shown in Figures 3.4.1A and 3.4.1B. In Riverside, San
Bernardino, Los Angeles and Orange counties, production value has been falling for three
decades, whereas Ventura and Santa Barbara production continually increased. San Diego
County experienced an agricultural boom in 1989 and 1990, and has grown slowly ever since.
Production value in Imperial County has been on an upward trend for the past decade after
declining for the previous 20 years. Southern California agriculture is responsible for about 18
percent of the states farm production value One-quarter of Californias vegetables come from
the southern part of the state. The region also produced $1.9 billion, or 56 percent of the state
value, in nursery, flowers and foliage. Most of this production occurred in San Diego County,
which alone produced 33 percent of the state nursery output. Within Southern California
agriculture, several important commodity groups comprise the majority of agricultural
production value in the region. About 29 percent of Southern California agricultural output was
fruit and nut crops, and approximately 28 percent was vegetables Another 23 percent of
production value was from the greenhouse and nursery industry. Livestock and livestock
products contribute 13 percent of Southern California production value, which is nearly double

12

the value share for field and seed crops.( Source: USDA, NASS, California Field Office (2011).
California County Agricultural Commissioners Data, various. Accessed May 2012)

Economic Contributions by Commodity Groups In addition to the

industry groups noted above, economic contributions were also evaluated for groups of food,
fiber, and mineral commodities having identifiable market chain linkages between producers,
manufacturers, and service sectors. In this section, some sectors are regrouped to reflect these
linkages, Environmental Horticulture, which includes the sectors Nursery and Greenhouse
Product ((Boskin et al., 1996 and 1998)

VALUE ADDED IS IMPORTANT

The trend toward fewer, larger, and increasingly corporate farms has created a concern that many
midsize family-owned farms will disappear. Already less than 2 percent of all farms account for
nearly 40 percent of the value of U.S. output (Riemund and Harrington). Many rural areas that
are faced with a declining number of farm jobs consider the food processing sector as a source of
potential income and employment growth (Brown and Petrulis). By adding value to farm
products, this food processing sector is seen by some analysts as a key element for rural growth,
as well as a way to enhance farm income and provide rural jobs (Barkama and Drabenstott).
Leaders in local communities also are looking for solutions to their local economic problems. If
rural areas cannot find ways to attract or create jobs requiring the skills of highly educated
people, they may lose the group most likely to be the catalyst for improving local conditions
(Ghelfi).
However, any gains by rural areas probably will have to come about through intense
competition with older, more-established industries in many metropolitan areas(Brown and
Petrulis).
The following sections describe why adding value is important. They compare farm value to
value derived from processing and marketing and the return on equity of both. They also
describe the present, transitional, and turbulent period of agriculture, and they present the
problem of a declining rural economy.
In recent years, there has been an increasing interest in value-added
agriculture and

13

its products, driven by changes in consumers tastes and preferences and

the desire of farmers and firms to capture a larger share of the consumer
expenditure. A broad definition of value addition is to Economically add
value to a product by changing its current place, time and from one set of
Characteristics to other characteristics that are more preferred in the
marketplace Value-added Agricultural products such as organic and locally
produced products have received considerable Attention at both the national
and global levels(Reardon and Swinnen, 2004).

Value addition of agriculture reduced unemployment The value

addition of agricultural production in Washington is approximately $9.5billion.
Over 80,000 people are employed in production. The share of the total value
by commodity group is shown in the chart to the right. The total economic
impact of production is just over $16.5 billion. Food processing and
manufacturing industries (excluding seafood) produce output valued at $9
billion, contribute $1.5 billion in value added (value of outputs minus the cost
of intermediate inputs), employ 18,000 people, and have a total economic
impact of $17 billion. Agriculture and forestry support industries alone
employ 31,000 people that earn $792 million in wages. Proprietors of these
businesses earn $121 million in
income. See the back page for more detailed information organized by industry and location.

employment contribution There are over 80,000 people employed directly in crop
and livestock production. Among the general sectors in these industries fruit production is the
largest employer (approximately 29,000). Income to employees and ownership for crop Direct
employment through the creation of 1.35 million full-time and part-time jobs, representing 13.8
percent of all jobs in the state, and total employment impacts (including multiplier effects) of
2.01 million full-time and part-time jobs Direct value added of $60.66 billion, representing 8.5
percent of Floridas Gross State Product, and total value-added impacts (including multiplier
effects) of $108.74 billion, representing 10.3 percent of Gross State Product Total labor income
impacts of $67.31 billion for employee wages and benefits and business proprietor income, and

14

total property income impacts of $29.56 billion for rents, interest, royalties, and
dividends(Roheim et al, (2007)

Economic contribution of agricultural products eradicate poverty, increase

income of household increase demand of marketing chain and reduce unemployment
rate By this mechanism, of agricultural leads to an increase in the total amount of final goods
and services, which is to say it increases the national income. Again, part of the analyst's task in
the economic analysis is to estimate the amount of this increase in national income available to
the society; that is, to determine whether, and by how much, the benefits exceed the costs in
terms of national income. Like most other countries in the sub-Saharan Africa,
Kenyan economy is predominantly agricultural. The sector accounts for
24.2% of the GDP, over 60% of exports, 75% of the total labour force and
over 80% of industrial raw materials (Owuor 2009).

Poverty Alleviation Agri-food systems are undergoing rapid transformations and the
emergence of integrated food supply chains is one of the most visible market phenomena in
India. Increasing concentration on processing, trading, marketing and retailing is being observed
in all the segments of supply chains. The traditional way of food production is being replaced by
practices more akin to manufacturing processes, with greater co-ordination across farmers,
processors, retailers and other stakeholders in the value chain. Further, with increase in income,
the pattern of food consumption is changing. Demand for high-value commodities like fruits,
vegetables, livestock products, fisheries and edible oils is growing and farmers are trying to
diversify their production systems accordingly. On the other hand, consumers are becoming more
demanding in terms of quality and safety of food commodities. In addition, demographic and
income trends are inducing more enlightened consumers to demand convenience foods such as
frozen, pre-cut, pre-cooked and ready-to-eat items, together with assurances of product quality
and safety. Consequently, production, processing and distribution systems are adapting to such
changes. Organization of agriculture along the value-chain framework has been conceived as one
of the strategies to bring more efficiency in the agricultural sector. The value-chain network may
be defined as a range of activities that are required to bring a product from its conception,
through its designing, sourcing of raw materials and intermediate inputs, marketing and
distribution, to the final consumer. There has been an increasing emphasis on the development of

15

efficient agricultural value chains in India and several innovative and successful value chains
have emerged. These emerging trends though indicative of catering to the expanding consumer
base with growing wealth, have generated concerns on the supply as well as demand side. In the
case of modern integrated value chains, producers gain from increased knowledge, better quality
and food safety, reduced costs and losses, higher sales and greater value-addition in production.

Value addition: the increase in worth of a product or service because of a

particular activity. Factors which constitute the additional values are features,
quality, customers perception (or image) and exclusiveness. Value addition is
done by manufactures to increase satisfaction from consuming a product.
This can be in form of time, form and place satisfaction Value adding
According to Robbins (2005), prices of primary agricultural produce have
fallen steeply, but retail prices for the same packaged, cut and processed
products in industrial countries, have increased. This means that value
adding activities can earn farmers additional income. Value adding can be in
the form of grading, sorting, cutting, packaging in standard weights and
processing of produce (Mather, 2005).Lack of value adding and agroprocessing is part of missing markets amongst smallholder farmers in
marketing. Agricultural produce from smallholder farmers usually are poorly
packaged. With few exceptions, most smallholder farmers cannot add value
to their produce because they do not know its importance and lack
processing technology (Louw, Madevu, Jordaan and Vermeulen, 2007).
Inability to add value to agricultural produce by smallholder farmers excludes
them from interesting market

(Dries et al., 2004; Minten et al., 2007;

Approaches to Adding ValueAdding value to products can be accomplished in a

number of different ways, but generally falls into one of two main types: innovation or
coordination. In general, the problem is to evaluate what, where, how and who can efficiently
perform the marketing functions(Tilley).
16

Innovation

Innovation focuses on improving existing processes, procedures, products, and services or

creating new ones.
Often, successful value-added ideas focus on very narrow, highly technical, geographically large
markets where
competition is sparse. Innovative value-added activities developed on farms or at agricultural
experiment stations are
sources of national growth through changes either in the kind of product or in the technology of
production (Kraybill
Coordination

Coordination focuses on arrangements among those that produce and

market farm products. Horizontal coordination involves pooling or
consolidation among individuals

Following are some important steps listed by one expert to

establish a value-added business:

Start by choosing something you love to do.

Establish good relations with customers to identify products that will appeal to them.
Maintain consistent supply of high quality products.
Make sure that products will be in high demand over the long term.
Partner with people possessing good technical expertise.
Carefully hire consultants with expertise.
Hire an experienced project manager.
Have a complete plan prior to start.
Make long-range plans.
Plan on more time, effort, and expense than expected.(Source: ONeill)

Steps to Success in Value Added establishment

Building a new business is difficult and takes hard work (nothing new for farmers and ranchers).
But, for all the uncertainty, there are ways to craft a successful value-added business strategy.
The key factors in a detailed business plan are:
Operations plan flow of the business, quality and cost control
17

Personnel plan needs, skills and training

Sales plan including challenging but realistic goals
Management plan evaluate strengths, weaknesses and resources
Investment and financial plan cash flow planning

Four methods are identified for producers to add value to their

production:
(1) Selling into available distribution channels
, (2) investing in a portfolio of food companies,
(3) Using production or marketing contracts, and
(4) Forming producer-owned businesses.
Available distribution channels include direct marketing to consumers; conventional marketing
(e.g., identity preserved grains), and niche marketing, which selectively targets a specific market.
Portfolio investments in food companies that utilize producers commodities could
allow these producers to realize value-adding profits. Production or marketing contracts
coordinate producers and processors to obtain desired inputs with special characteristics.
( Brown, M. and M. Petrulis. 1993)
Value-adding producers should focus on products that fill these consumer desires or market
niches. By utilizing value-added precepts for business development, producers can identify the
desires of consumers and target markets, rather than taking the commodity to the market and
hoping that consumers will like it and use it. Target markets are tightening as retailers and
consumers pay more for a narrower range of eating experience. Hitting these target markets
means that value-adding businesses must know their consumers desires.

The strategies that has greater opportunity of value addition

of agricultural products
1. Increase consumer demands regarding healthy ,nutrition and convenience
2. Efforts by food processors to improve their productivity
3. Technological advances that enable producers to produce what consumers and processors
desire (royer)

21ST CENTURY GRAIN

PROCESSING COOPERATIVE
Rincon, New Mexico
18

A flour mill located in New Mexico, but owned cooperatively by Kansas wheat producers,
opened in1998. This flour mill adds value to producers raw commodities by further processing
wheat into flour fortortillas, a product with an increasing demand. Each share of stock purchased
by members for $5,000 provides ownership in the flour mill and obliges them to supply 2,850
bushels of wheat each year. A total of 550 wheat producers supplied $2.7 million of equity stock
to become members of this venture.

PHENIX MANUFACTURING
St. Peter, Minnesota An organic building material that looks like granite,
but
works like wood Environ is made from soybean meal and postconsumer
newspaper. It can be used to make counters, flooring, and furniture. Phenix
Manufacturing is a 1,000 member farmer-owned cooperative that invested
$10 million in initial equity and committed 35,000 acres of soybeans.
Another organic material, Clean Green, has been developed from corn and
wheat starches to replace petroleum-based plastics. This material
biodegrades in a matter of months and is a renewable resource.
.

19

Chapter three
Methodology
Introduction
In this chapter the researcher presented the methodology employed for data collection and
analysis of the research. The chapter examined further topics including; research design, research
population, sample and sampling procedures, research instruments, validity and reliability, data
analysis, ethical consideration and lastly limitation of the research.
We preferred to carry out the survey at borama district

Research design
The research design which was conducted during the investigation of this study was two mixed
methods of qualitative method and quantitative method. It was done under field survey at Amoud
farms to see and observe the conditions of agricultural production. After long discussion mostly
we decided to use qualitative method because of in our topic relevant the descriptive data.

Research population
The research populations was the population in awdal region special borama district special
people which studded or practice agriculture, agricultural expert and also include people which
have knowledge of economics in borama ,because I have not time and cost to travel completely
awdal The researcher focused to inquire or ask questions the people who have knowledge in
agricultural or practice rather than agricultural expert.

Sample size
The researcher sampled 50 respondents in total for the study and the sample having been arrived at
by use of table for determining sample size for research activities Krecie and morgan (1970) as
shown in table below. These 50 respondents are the sample of the targeted populations which were
approximately 500 so they are representative and after analysis the sample will be generalized.

Table 1: Showing the target and sample size respondents to be used in the study
Population category

Population

Sample size

20

Men

300

38

Women

200

12

Total
500
Source Krecie and morgan (1970)

50

Sampling Procedure
The study have been used simple random sampling procedure because this kind of sample
ensures that each and every member of the population under consideration has an equal chance
of being selected as part of the sample to respond the value additions of agricultural product and
their economic contribution More over the researcher has chosen purposive sampling to select
women who are farm owner from the rest of the other women who have not but use farming
technique although of the nature of data and information needed and the researcher wants to get
the key informants of this study.

Research Instruments
The study used a standardized self-administered questionnaire as a tool of collecting data and
also use interviews because the sample consisting literate and illiterate people .Questionnaire is
carefully designed instrument written, typed or printed for collecting data direct from the people.
The selection of this instrument has been guided the nature of the data to be collected, the time
available as well as the objectives of the study. Close-ended questionnaire, open ended and
interviews were employed to collect the required data of this study to examine the value
additions of agricultural products and their economic contribution

Questionnaire
The respondents where consisting both literate and illiterate people, so that the researchers
prepared questionnaires intended to collect information those who could read and wrote, because
questionnaires help getting a lot of information with in short period of time.

Interviews
Since some of the respondents were illiterate and couldnt understand what about the
questionnaires, the researchers took them with interviews, so as to give them the chance to
present information.

Sources of data
a) Primary source

Primary data was collected by using questionnaires, observations and interviews. The
questionnaire consisted the questions intended to answer the questions related to the objectives
of the study and questions about general knowledge.

21

b) Secondary source

Secondary data was obtained from different sources done by other scholars who were not direct
observant or participant in events described. These sources include articles published books from
the internet, although the scholars who wrote this topic is lower but we get previous document
from the Google

Data Gathering Procedure

The sample size of this survey was 50 samples; we filled the form of the questioner from 50
students, agricultural expert and economic experts because our topic related which comprised
both men and women. We selected 38 men by using simple random sampling. Also we selected
12 women by using purposive sampling as their numbers were very few comparing to the
number of peoples which knows or understanding this topic.

Data Analysis
Data being collected was organized and analyzed by using Statistical Package for Social Science
(SPSS) software after sorting and coding the questionnaire. Quantitative data is presented in
form of statistical graphs, bi charts, bar charts and correlation as appropriate.

Research Limitations
During the collection of the information of this research we met several complications which
banned to get further more information like shortage of time which was faced while we were
conducting and it was only three months to complete research a part from that we didnt get so
many secondary data which exactly would describe and support our study because we would not
get any other researchers which presented this study before. The only source that we mostly
depended on was having and taking an interview from the target populations, making sometimes
observations on the fields in the area study and the use of internet which are secondary sources
except the observation.
Finally the most the biggest limitations we met during this study there was no one who had or
written any theses or record book keeping about our topic before and it became more difficult to
complete

22

CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND

INTERPRETATION
Introduction

This chapter presents data analysis, presentation and

interpretation. The data analysis and interpretation was based on
the research questions as well as research objectives, the
presentation was divided into two parts, and the first part
presents the respondents profile or demographic information,
while the second part deals with the presentation, interpretation,
and analysis of the other research objectives. Below are the data
presentations and analysis of research findings.

Part one
Socio-demographic profile
The respondents or of the study had different demographic profile for
example different sex, age, marital status, living place, occupation and
educational background. The presentation of respondents profile is shown
below
23

Table no: 1 what is your gender

Frequency

Percentage%

Male

38

76.0

Female

12

24.0

Total

50

100.0

List of graphs
Graph no: 1

Fig1 indicates that 38 (76%) of the respondents were males and the
remaining 12 (24%) were females. This verifies that the majority of the
respondents were males as they dominate the respondents

24

Table NO:2 What is your age

Age

Frequency

Percentage%

20-25

12

24.0

25-30

20

40.0

30-35

10

20.0

35-40

4.0

40-45

8.0

45-70

4.0

Total

50

100.0

GRAPH NO:2

Fig 2 indicated the total respondents were 50 were between age is 20-25
(24%),where between are 25-30 40% were the age between 30-35(20%)were
age between are 35-40(4%) where between age 35-40 (8)and( 4%)were age
between 45-70 finally the majority of respondent between age 25-30 ( 40%

25

Table 3 marital status

Marital
status
Frequency

Percentage%

Single

30

60.0

Married

10

20.0

Divorce

4.0

Widowed

16.0

50

100.0

Total

GRAPH NO:3 SHOWS MARITAL STATUS OF RESPONDENTS

Fig 3 indicated the respondent were 30 (60%)single were 10(20) are married ,were 2(4%) are
divorced and were 8(16%) are widowed this fig shows the majority of
He respondent were single and dominated others
26

Table 4 how long have you been living here

Frequency

Percentage%

2-15years

30

60.0

15-40years

20

40.0

Total

50

100.0

GRAPH NO: 4 shows how long have you been living here

This fig shows how long have been living here were respondent 30(60) living 2-15 years and
where 20(40%) are between 15-40 years the majority of the respondent where between 2-15

27

Table 5 living place

living place

Frequency

Percent

Urban

35

70.0

Rural

15

30.0

Total

50

100.0

GRAPH NO: 5 shows living place

The fig 5 indicated living place of the respondent where 35(70)living urban and remaining
15(30%) living in rural area the majority of respondents living urban area

28

Table 6 educational level

educational level
Frequency

Percentage%

University

25

50.0

Secondary

10

20.0

10.0

Primary

10

20.0

Total

50

100.0

Intermediate

GRAPH NO: 6 shows Educational levels

The fig also indicates that 25(50%) of the respondents were reached at
University level, 10(20%) of the respondents were reached at Secondary
level, 1o(20%) of the respondents were reached at Primary/ and were
5(10%)Intermediate level the majority of the respondent where university
leve

29

Table 7 occupation

Occupation

Frequency

Valid Business person

Percentage%
5

10.0

professional person

11

22.0

Farmer

14

28.0

Student

20

40.0

Total

50

100.0

Graph no: 7 shows occupation

Fig indicates that 5 (10%) of the respondents were Business people, 11

(22%) of the respondents were professional, were 14 (28%) farmer and
remaining were students 20(40). Majority of the respondents were student

30

as they were living in urban area of borama district , while others business
persons , farmers and professional person

Part two interpretation and analysis questions relevant specific objectives

Table 8 shows what is the important value addition of
agricultural product in economic contribution
What is the important value
addition of agricultural
product in economic
contribution

Frequency

Percentage%

Reduced unemployment rate

18.0

Increase demand of the

market

18.0

Increase income of farmer

32

64.0

Total

50

100.0

Graph no: 8 shows what is the important value addition of

agricultural products in economics

This fig indicated the important value addition of agricultural product in economic
contribution where the respondents 9(18%) answering reduced unemployment were
9(18%) increase demand of the market and were 32(64%) answering increase income
31

of the farmers, the majority of the respondents were answering increase income of the
farmers

Table 9 How we starting agricultural product that added

value in economic
How we starting
agricultural product
that added value in
economic

Frequency

Percentage%

Determing what
consumers want

11

22.0

Creating high value

agricultural product

13

26.0

Encouraging trainning
farmers

20

40.0

Enhancing soil fertility

12.0

50

100.0

Total

graph no:9 How we starting agricultural product that added value

in economic

32

This fig indicates the question How we starting agricultural product that added value in
economic were respondents 11(22%)answering Determine what consumers want, were
13(26%)answering Creating high value agricultural product ,were 20(40%) answering
Encouraging training farmers and were remaining answering enhancing soil fertility, the
majority of respondents were answering encouraging or training farmers

Table 10 shows what is the factors effecting local value

addition of agricultural products
Frequency

Percentage%

Climatic factors

19

38.0

Poor demand of the

market

10

20.0

Foreign aid

14

28.0

14.0

50

100.0

Infrastructure problem
Total

33

Graph no 10 shows what is the factors effecting local value addition

of agricultural products

This fig indicated this question What is the factors effecting local value addition of
agricultural products were19(38%)of respondents answering climatic factors, were
10(20%) answering poor demand of market,14(28) answering foreign aid and were
remaining answering infrastructure problem the majority of the respondent answering
climatic factors

Table 11 shows How to improve standard live of the farmers

Frequency

Percentage%

Increase soil fertility

17

34.0

Training farmers

26

52.0

14.0

50

100.0

Government police
Total

34

Graph no: 11 shows how to improve standard live of the

farmers

This fig indicated how to improve standard live of farmers were 17(34%) answering increase soil
fertility were 26(52)answering training farmers and were remaining answering government
policy 7(14%) the majority of respondents were answered training farmers

Table 12 shows Improving of agricultural products increase

income of the farmers
Frequency

Percentage%

Yes

35

70.0

No

15

30.0

Total

50

100.0
35

Graph no: 12 shows improving of agricultural products

increase income of the farmers

The respondent participating these question Improving of agricultural products increase

income of the farmers contains 50 respondents were 35(70%) responded yes and were
15(30%)respondents answering NO, the question is yes because the majority of
respondents answering YES

36

Table 13 shows how to creating value addition of

agricultural products
how to creating value addition of
agricultural products

Frequency

Percentage%

Producer are member food company

12

24.0

Innovation new product

23

46.0

Enhancing product characteristics

15

30.0

Total

50

100.0

Graph no 13 shows how to creating value addition of

agricultural products

This fig indicated the respondent were asked this question how to creating value addition of
agricultural products were 12(24%) respondent answered producers are member of food
company were 23(46%)answering innovation new products and were 15(30%) answering
enhancing product characteristics .the majority of respondent were answering innovation new
products

37

Table 14 How the value additions of the agricultural

products increase demand of the market
Frequency

Percentage%

Customer base expanding

14

28.0

Producers received greater

portion of revenue

24

48.0

Producers receive strategic

advantage in market place

12

24.0

Total

50

100.0

Graph no14: how the value additions of the agricultural

products increase demand of the market

The question ask the respondents is how the value additions of the agricultural products increase
demand of the market where respondents maintains 50 respondents were 14(28%) Customer
base expanding, where 24(48%) Producers received greater portion of revenue and
remaining where answering Producers receive strategic advantage in market place the
38

majority of the respondents where answering Producers received greater portion of

revenue

Table 15 what are the additional opportunity for increasing

value of agricultural product
Frequency

Percentage%

Applying biotechnology

18

36.0

Food engineering

22

44.0

Restructure food distribution

system

10

20.0

Total

50

100.0

Graph no: 15 shows what are the additional opportunity for

increasing value of agricultural products

39

This graph indicated what are the additional opportunity for increasing value of agricultural
products where respondents 18(36%) applying biotechnology, where 22(44%) food engineering
where 10(20%) answering restructure food distribution system
Finally the majority of respondents where answering both applying biotechnology and food
engineering

Table 16 shows Value additions of agricultural products

increase income of farmers
Frequency

Percentage%

Yes

44

88.0

No

12.0

50

100.0

Total

Graph no: 16 shows Value additions of agricultural products

increase income of farmers

40

This graph shows question asked the respondents Value additions of agricultural products
increase income of farmers were respondents 44(88%) answered YES and remaining
small numbers 6(12%)NO, the majority of respondents YES the question is y

Table 17 shows Is the increase income capital of farmers

increase economic level
Frequency

Percentage%

Yes

47

94.0

N0

6.0

50

100.0

Total

41

Graph no 17 shows Is the increase income capital of farmers

increase economic level

This graph interpreted the question is the increase income capital of farmers increase economic
level were respondents 47(94%) answering yes and were small numbers of remaining answering
NO the majority of respondents answering yes the question is yes is the increase income of
farmers increase economic level

Chapter five conclusions and recommendation

Conclusion
Conclusions based my three objectives

1. Value added refers to the additional value created at a particular stage of production or
through image and marketing. Value added agriculture is a process of increasing the
economic value and consumer appeal of an agricultural commodity. It is an alternative
production and marketing strategy that requires a better understanding of the rapidly
changing food industry and food safety issues, consumer preference and effective
management. It may not be inferred that value addition, means only processing a raw
42

material into some form of canned food. There are various ways of adding value to a
commodity. Further , in a country like India, the scope of Value addition is mind-boggling
for the reason of availability of raw material as well as the large market size. In the paper
presented here, an attempt is being made to study the sector of Value addition in
agricultural products adding value is the process of changing or transforming a product
from its original state to a more valuable state that is preferred in the marketplace. Market
forces have led to greater opportunities for adding value to raw commodities because of
increased consumer demands regarding health, nutrition, and convenience as well as
technological advances that enable producers and processors to produce what consumers
desire. Producers involved with adding value are striving for a larger share of the food
dollar by producing what consumers demand, instead of producing only raw
commodities. Adding value to products can be accomplished through innovation and/or
coordination. Innovation focuses on improving existing processes, procedures, products,
and services or creating new ones. Industrial innovation is processing traditional food
products into nonfood uses. Coordination involves arrangements along the food chain.

2. Adding value is the process of changing or transforming a product from its original state
to a more valuable state that is preferred in the marketplace. Market forces have led to
greater opportunities for adding value to raw commodities because of increased consumer
demands regarding health, nutrition, and convenience as well as technological advances
that enable producers and processors to produce what consumers desire. Producers
involved with adding value are striving for a larger share of the food dollar by producing
what consumers demand, instead of producing only raw commodities. Adding value to
products can be accomplished through innovation and/or coordination. Innovation
focuses on improving existing processes, procedures, products, and services or creating
new ones. Industrial innovation is processing traditional food products into nonfood uses.
Coordination involves arrangements along the food chain. Horizontal coordination entails
pooling or consolidation from the same level of the food chain. Vertical coordination
involves contracts and agreements along different food-chain levels. A coordinated effort
increases market power, which likely will continue to increase in the future. Vertical
integration aligns and controls price, quantity, quality, and transactions. Cooperatives are
positioned to further integrate into food processing with thorough planning and
implementation through the process of value-adding business ventures. Adding value to
farm products becomes vital for rural growth by enhancing farm income and providing
employment in processing businesses. However, before producers examine value-added
processing and marketing, cost minimization in production has to be achieved. Adding
value cannot replace the efficiencies of production attainable through technology and
economies of scale
43

3. There are various ways of adding value to a commodity

increasing the monetary value of raw materials

accessing niche markets

prolonging product shelf life

creating a profitable use for seconds or culls

extending the season

making handling easier for mid and end users

providing more convenience for mid and end users

Steps to Success in Value Added establishment

Building a new business is difficult and takes hard work (nothing new for farmers and ranchers).
But, for all the uncertainty, there are ways to craft a successful value-added business strategy. The key
factors in a detailed business plan are:
_ Operations plan flow of the business, quality and cost control
_ Personnel plan needs, skills and training
_ Sales plan including challenging but realistic goals
_ Management plan evaluate strengths, weaknesses and resources
_ Investment and financial plan cash flow planning

Value Added is the sum of total income and indirect business taxes. Value added is the most
commonly used measure of the contribution of a region to the national economy, as it avoids
double counting of intermediate sales and captures only the "value added" by the region to final
Products

44

Recommendation of value addition of agricultural

products and their economic contribution
Recommendation by farmers
Test soil nutrient levels to get a good idea of what nutrients, if any, your soil is
missing. Although you can order kits to do this yourself, you will obtain more
accurate results from a commercial lab.
2. Purchase liquid fertilizer and composting material based on what nutrients were
missing from your soil. If you plan to make your own sprays and composting
material, base the ingredients you use on the information you obtain from the
soil nutrient test.
1.

3. Spray the leaves of the plants with a liquid fertilizer to deliver nutrients more
directly to the plant. Common organic sprays are liquid kelp or fish emulsion,
and there will be many inorganic commercial sprays available at any gardening
store.
4. Mix compost into the soil before the growing season begins. Compost is an ideal
way to reintroduce valuable nutrients into the soil, and is made by allowing
organic matter to mix and rot in some sort of container. Something as simple as a
bucket will do.
5. Add a layer of mulch to the soil after planting to help retain water and forestall
the growth of weeds. Popular mulch ingredients are grass cuttings, fallen leaves
and compost. There are also commercial plastic mulches available if you do not
have access to enough natural mulch.
6. Use row covers to get an early start on the planting season and possibly squeeze
in an extra crop rotation. You can use greenhouses, simple A-frame structures
with plastic stretched over them or even just a good layer of mulch to help protect
crops from damage done by low temperatures.

Producers Specific actions may include:

a) Establishing producer owned enterprises or establishing linkages with centralized
food processing units.
b) Establishing an association of food processors food ingredients, packaging and
equipment suppliers as well as business service providers for information sharing
and access to services.
c) Production planning
d) Negotiating contracts

45

Government recommendation
1. Help farmers seeds, fertilizers ,pesticides and give farmers subsidiary
2. Investing farmers to produce more value products
3. Providing good extension which contributed farmers knowledge and skills to increase
production of farmers
4. Making policy to increasing local productivity of awdal region
5. improving of agricultural products to increased income of the farmers
6. control foreign aid when the farmers produced good agricultural products
7. training farmers by providing technologies to improved production level of farmers
8. develop agricultural commodity

Recommendation of processors

Minimize post-harvest losses

Extend the shelf-life of food-produce, thus increasing food security
Stabilize prices of raw materials during peak season
Good returns to farmers
Provide employment-opportunities
Promote economic growth of the community
Provides food of uniform quality, on a large scale
To meet the food requirements, particularly in inaccessible areas
to create new products of increased appeal and added value
To provide nutritive value
To promote the establishment and expansion of appropriate industries

Recommendation agricultural extensions

1. Establishing a centre of excellence in food process and product development to
provide training and technical support in improved processing methods, new
product development, food safety/quality and marketing skills.
2. Carrying out market studies in internal markets to identify niche markets, market
requirements and consumer expectations.
3. Establishing producer owned food processing enterprises.
4. Strengthening producer/processor relationships.
5. Establishing the association of food processors, suppliers of ingredients, and
packaging, equipment manufacturers and business service providers.
.
6. It adds value and increases farmers returns on their produce
7. It expands market opportunities
8. It improves shelf life to overcome seasonality and perish ability
9. Food processing enterprises established in rural have potential to generate off farm
employment

Reference
1. Adding Value to Farm Products: An Overview www.attra.org/attra-pub/valueovr.html
2. Adding Value to Farm Products: An Overview www.attra.org/attra-pub/valueovr.html

46

3.Abramovitz, M. 1986. Catching up, forging ahead, and falling behind.

Journal of Economic History
4.Ahmed, R. 1987. A structural perspective of farm and nonfarm
households in Bangladesh. Bangladesh Development Studies 15 (2):
87111.
5. AAFC (Agriculture and Agri-Food Canada), 2004. Value-added agriculture in
Canada. Report of the standing senate committee on agriculture and
forestry 2004, Agriculture and Agri-Food, Canada.
6. Appropriate Technology Transfer for Rural Areas www.attra.org
7.
8. Brown, M. and M. Petrels. 1993. Value-Added Agriculture as a Growth Strategy, Bulletin
644-10, USDA Economic Research Service, Washington, D.C.
9.Barjolle, D.; Reviron, S.; Sylvander, B. (2007)Cration et distribution de
valeur conomique dans les filires de fromage AOP published in:
conomies et Socits, Srie Systmes agroalimentaires;No. 29; pp.
1507-1524
10.
Brewin, D.G., Monchuk, D.C., Partridge, M.D., (2009). Examining
the adoption of product and process innovations in the Canadian food
processing industry, Canadian Journal of Agricultural Economics 57 (2009) 7597.
11.
Davis, D.E. and H. Stewart. (2002). Changing Consumer Demands Create
Opportunities for U.S. Food System. USDA-ERS.

12. Food and Agriculture Organization (FAO). (2004). FAOSTAT

Food Supply data. Available at http://faostat.fao.org.
13.
Farmers Guide to the Internet www.rural.org/favorites.html

14.FAO (2001) World Markets for Organic Fruit and Vegetables - Opportunities
for Developing Countries in the Production and Export of Organic
Horticultural Products. International Trade Centre Technical Centre for
Agricultural and Rural Cooperation, FAO, Rome.
15. Chemonics Int., Diagnostic mission to determine constraints to production and
exportation of high quality fruit from Rwanda. March-April 2002.
16.

Glickman, D. 1998. Available online June 20, 1998.

http:www.massgrown.org./grower/fmr01-98.htm#. Sec. Glickman

Announces Publication of National Organic Program Proposed Rule.
17.
Hardesty, S. 1993. Programs for Effective Marketing of ValueAdded Products by Agricultural Cooperatives
47

18. Kraybill, D., and T. Johnson. (1989). Value-Added Activities as a Rural Development
Strategy. Southern Journal of Agricultural Economics
19.
Kasenge V, 2009. The sorghum value chain analysis. The case of
SSA-CP. LKPLS Research Report.
20. http://www.ehow.com/how_8318327_increase-crop-production.html
21.

King, R. 1992. Management and Financing of Vertical

Coordination: An Overview. American Journal of Agricultural

Economics,
Putman, J. 1997. Food Consumption, Prices, and Expenditures, 1970-95.
USDA Economic Research Service. Available online February 24, 1999.
http://www.econ.ag.gov/epubs/htmlsum/sb939.htm

48

Appendixes
Appendix 1: Questionnaire

Questionnaire
Dear Respondents,
We are students at Amoud University studying a Bachelor/degree of science in Agriculture and
Environment; this questionnaire has been prepared for data collection concerning about value
additions of agricultural products and their economic contribution case study awdal
region
Please keep in mind that the data you are provided will be used for academic purpose only and
shall be kept with utmost confidentially.
Therefore, you are kindly requested to answer the following questions fully and honestly
according to the best of your knowledge by ticking on the right option. Assistance will be highly
appreciated.
Thank you very much in advance
Yours sincerely,
By jama idle aden
And jama mahamoud jama
Candidates of Degree of science in Agriculture and Environment
Amoud University borama Somaliland.
SECTION 1: DEMOGRAPHIC QUESTIONS:
1. . Gender Male
Female
2. Age: 20-25
3.

Marital status:

4.

Living place:

25-30

30-35

35-40

Single
urban

above 40

Married

divorced

Widowed

rural

5. How long have you been living here

6.

Educational level:

University

Primary
None
7. Occupation: Business person
Student

Secondary
Professional person

intermediate
Farmer

Other

49

SECTION 2: QUESTIONS FOR RESPONDENTS To identify role of value addition of

agricultural products in economic contribution and reduce unemployment rate
8. what is the important of value addition of agricultural products of economic
contribution
a. reduced unemployment rate
b. increased demand of the market
c. increase income of the farmers
9. How we starting agricultural products that added value in economics
a.
b.
c.
d.

determining what consumers want in their food products

creating agricultural products
Encouraging or training farmers
Enhancing soil fertility

10. What is the factors affecting local value additions of agricultural products
a)
b)
c)
d)

climatic factors
poor demand of the markets
foreign AID
infrastructure problems

SECTION 3: QUESTIONS FOR RESPONDENTS OF FARMERS TO develop standard

live of farmers by increasing agricultural products
11. How to improve standard live of the farmers
a. Increased soil fertility
b. Training farmers
c. Government policy
12. improving of agricultural products increased income of the farmers
a. Yes
b. No
13. If answered yes give reason

50

SECTION 4: QUESTIONS FOR RESPONDENTS to establish agricultural products that

added value in economics by processing agricultural products to increase demand of the
market
Instruction: Please tick the right options using the boxes plotted on right side
14. How to creating value addition of agriculture
a. Producers are members of a food company
b. Innovative new products
c. Enhance a products characteristics
15. How the value additions of agricultural products increase demand of the market.
a. Customer base is expanded
b. Producers receive greater portion of revenue
c. . Producers receive strategic advantages in the marketplace
16. What are the additional opportunity for increasing value of agricultural product :
a. Applying biotechnology
b. Food engineering (raw product to consumable forms)
c. Restructuring food distribution systems
17. Value additions of agricultural products increased income of the farmers
A. Yes
B. No
18. is the increase income capital of the farmers increase economic level
a. yes
b. no

APPENDIX II: TIME FRAME

NO

DATE

TASK

DURATION

51

1st-15th April

Introduction and
literature review

30days

15th-30th aprill

Chapter three
methodology

11days

1th-51th

Questionnaire

16 days

15th-30th may

Data collection

15 days

1st-15th-june
8th-17th July

Data analysis,
coding and
interpretation
And conclusions
and
recommendation

10days

52

APPENDIX III: BUDGET

Budget line Budget

description

Unit cost
per day

Duration
days

Total
amount
($)

20

($)
1

Printing,
photocopyin
g and
binding

10

Communicati 5
on and
Stationary

20

Assistant

30

Internet

60

60

Grand total

Curriculum vitae

130

7/14/14
53

Borame
0634490345
Email iidle2621@hotmail.com

Personal data
Name

---------------------------------------------------- jama idle aden

Date of birth

----------------------------------------------------

1/8/1988

Place of birth ------------------------------------------------------ --- borame

Nationality ------------------------------------------------------------- Somaliland
Sex: ----------------------------------------------------------------------------male
Marital status -------------------------------------------------------------single
Qualification --------------------------------------------------------------degree of
agriculture

EDUCATIONAL BACKGROUND
DATE

INSTITUTION

CERTIFICATE/DEGREE

2/10/2010-PRESENT

AMOUD UNIVERSITY

Bachelor agriculture

1/2/2012-PRESENT

Amoud university

Diploma BPA

2007-2009

ALAQSA

GCSE

2003-2006

Aloog

Elementary

Reference
Prof:abokor sh. Abdi dean of faculty agriculture and environment
Prof: yurub A.muumin head of office of the registration in Amoud
University, borame Somaliland
Mob: 0634422727

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