Ethiopia is set to construct 25 grain silos at a cost of US $800,000 in four regional states following a Memorandum of Understanding signed between the heads of regional cooperatives earlier this month.
Alliance for Green Revolution in Africa (AGRA) along with the Kenya-headquartered AGRA kicked off the construction of the silos which will be used by agricultural cooperative unions involved in the teff and wheat value chain in Tigray, Amhara, Oromia and southern regional states.
Construction of the storehouses is expected to be completed by 12 contractors in three months before AGRA’s three-year project in Ethiopia is phased out. The program is expected to increase the income of 26,415 farmers in the four regional states. It also aims at building the capacity of the farmers who are involved in teff and wheat production by creating market opportunities.
Additionally, the silos will help reduce shortage of warehouses in the country and also help cooperative unions with a reliable and effective market outlet. This is according to Abdi Mumed, deputy director for the Agency.
The contractor selection process was finalized last May. However the project faced delays due to allocation of finances and land preparation.
“To create a sense of ownership, the cooperative unions will contribute equity to the construction.The cooperative unions will cover differences from actual and estimated costs and price differences due to inflation,” said Abdi Mumed.
An expert on food security and poverty reduction at Addis Abeba University’s College of Development Studies also added that the silos will play a significant role in reducing crop losses.