Learning Agenda of the FSRE Aloe Value Chain project Christian Aid/HUNDEE March 2014 Addis Ababa

Introduction Borena and Guji Zones are two of the 18 Zones in Oromia NRS Area is 69,373.3 km² and has an estimated population of 1,548,888 (Regional Atlas 1998) 62.5% low land –below 1500masl, 37.5% moderate highland Bimodal and erratic rainfall pattern Livelihood mainly depends on livestock and livestock products Rich in Natural resources like gum and incenses, Aloe, natural salt, minerals … but with little awareness on the commercial viability of this products

Technology Ingredients Water, Palm/vegetable oil, caustic soda and Aloe sap Procedures Harvest about 6 leaves of Aloe and place it clean jug to allow sap to drain out Measure the caustic soda first ensuring the measuring container is DRY- put into plastic bowel or plate Measure the water into plastic basin Measure the oil into a jug Add caustic soda to water Still until the soda dissolves completely and mixture goes back to clean in color

Technology continued … Leave the caustic soda to cool slightly Once it gets cold- Stir in the oil slowly- only on ONE direction Add the Aloe sap, enough to slightly change the color of the solution –if too much the soap will be dark and unappealing After some 5-10 minutes of stiring the mixture should become thick and creamy and should hold a trail mark When this stage is reached – pour into moulds Leave for 48 hours Turn out of moulds, cut, neaten edges, dry, pack and label strong flumes

Technology continued … Precautions Equipment should be made of plastic or wood NOT metal due to the chemical reaction Always add caustic soda to water- NEVER water to caustic soda Be very careful when measuring or mixing not to get into your eyes or skin as it has a burning corrosive effect and gives off

Organisation 200 (80%F) peoples organized into 4 Aloe soap/lotion making and marketing cooperatives – legally certified Have a workshop and Produce soap in a group interchangeably 160 women’s organized into eight SHG to maximize their social and economic benefits – SHG members practice weekly saving from income obtained from sale of products SHG members discuss on various issues gender, HTP and others

Marketing One marketing assessment will be conducted on success and failure of a community based aloe enterprise Mainly focus on local market – product outlet shop, village shops Support two local promotional markets at village and district towns Linked with ‘Milki” cooperative union

Economics Making soap is very profitable, if vegetable oil is purchased at normal market prices The costs of one piece of soap are 8 ETB and this piece can be sold for 12 ETB, so the Gross RoI is in the range of 50%. The price of vegetable oil is the main determinant of the profit. If it rises sharply, the profit will be reduced substantially. The present interference of the government in the vegetable oil market is a potential threat for the soap producers. Spontaneous adoption of the soap making skill can take place around Yabello town where the costs of purchasing the raw materials as well as the marketing costs are lower

Financial efficiency Cooperatives will be provided with training, seed money and other little inputs to start production of soap/lotion Beneficiaries /cooperative members/ contribute local materials and labor for construction of workshop Members fully work on cultivation of Aloe plant in 4ha of land

Environmental issues 6ha of land obtained for planting Aloe resources Aloe plant plays a great role in protecting wind and water erosions as the species generates through the production of 'suckers'. Small ‘suckers’ grow off the side of the 'mother' plant in close proximity to the root covering large areas and providing protection. The crop can store water and survive for longer period of time during drought.

Gender 80% cooperative members are women Women work on soap making in a group and be paid on monthly/weekly bases based on number of soap they make Cooperative management bodies are mainly women’s 20% male members of the cooperatives are intentionally added to protect mainly to protect women’s from any cultural challenges and to maximize mutual support

Food Security The income from the soap will be used to buy food for the household or other life-necessities. Saving from SHG can be used to buy livestock's – which are main source of food (milk and butter) Loan from SHG – will be used to do other IGA – income used to buy food and other items

Entrepreneurship

Conclusions It would be good for the cooperatives to be a member of “Milki” cooperative union for purchase of raw materials and marketing

Learning questions Innovation Technical: - Is this soap of good quality Social (gender): - Will this not lead to extra work for women? How much will women earn per day? Will the men control the money? Economics: - What is the price composition? Will it change when ingredients get more expensive? Environmental: - How to measure environ­mental impact? There are already plenty Aloe plants in Borena. Will this make a difference?

Learning questions… Impact on Food Security and Entrepreneurship Household level How much will the women earn? Can all HH afford to participate in the exercise (sp. those who move with their animals)? How much (money, time, etc.) do the buyers of the soap save? Cooperative level What will be the tasks of the coop and what of members (e.g. coop only input supply and marketing or also production? How will the work be managed? Will staff be paid?

Learning questions… How will members benefit: they work on their own or in groups? How will that be administrated and organized? What is the relation between the SHG and the soap coops? How will the impact of the SHG be measured? How will raw material supply be secured after project phase out? Why is there no reference to the Bio Enterprise in Yabello which supports other soap coops?

Learning questions… Scaling up: constraints and opportunities Technical Aspect All will be interested to know potential new products Market Aspect What is an optimal scale of production and what is the maximum market size? All will be interested in the market assessment, product development etc. What could be the role of the Bio Enterprise in Yabello that is marketing Aloe soap already?

Action plan: what to measure and how to organise this ?

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