Potato chain in Ethiopia

Senselet was founded in 2015 to set up potato production and processing in Ethiopia by the Veris Investment’s consortium, which included WUR. It has, since, become the connecting link between farmers and the market. In 2020 Pepsico became a major shareholder and in 2022 it invested 40 million dollars. The investment is directed at an expansion of its crisps factory, about 65 kilometres north of Addis Ababa. Senselet has been making crisps since 2017 and sells them under the brand name SUN Chips. They are now sold in around 10,000 shops in Ethiopia. Pepsico plans to significantly expand production of crisps and other snacks in Ethiopia. Their investment is also needed to expand the distribution network and the network of farmers supplying the right potatoes for Senselet. These activities can be undertaken thanks to the Sustainable Business and Food Security Facility (FDOV) of the Netherlands Enterprise Agency (RVO).

Pepsico wants to contribute to the sustainable development of the potato sector in Ethiopia, the company clarifies in a press statement. It has built a network of about 2,000 Ethiopian potato-supplying farmers over the past six years. Higher yields and selling prices have enabled these small farmers - most have a quarter to half a hectare of land – to, often, double their income. In addition, WUR played an important role by conducting research and advising farmers on opportunities for significant income growth.

Seed potatoes

Conditions in Ethiopia are very suitable for growing potatoes, but a good potato chain benefits from good yields and good quality, and both were lacking due to a shortage of good seed potatoes. Farmers depended on a government organisation for seed potatoes, but it supplied low-quality ones, and an insufficient amount. As a result, many farmers used the leftover small potatoes of the farm as seed potatoes. These are far from optimal, as potatoes often remain small due to a genetic defect or disease.

Importing proper Dutch seed potatoes offered no solution, as Ethiopian legislation prohibits the import of seed potatoes. Therefore, Dutch seed potato breeder HZPC was involved in the project. HZPC started a subsidiary in Ethiopia and supplied seed potatoes through local seed potato breeders. Yet Ethiopian farmers often did not buy those better seed potatoes, because, after all, good seed potatoes are expensive.

A huge relief, however, was that many farmers grew a local potato variety, the Gundane, which was suitable for crisp production and was also resistant to the main potato disease: Phytophthora infestans.

Challenges

Nevertheless, Gundane yields were consistently disappointing because farmers were constantly growing potatoes in the same fields. As a result, farmers had to contend with other potato diseases, such as nematodes and bacterial wilt. WUR as a knowledge partner was of importance in developing solutions. WUR advised farmers to make a cropping plan with alternating potato, barley and some vegetables. This prevents disease infestations. Agricultural spokesmen from Senselet were trained and protocols for quality control and selection of potatoes were created so that farmers got paid for quality. Advice was also given on seed potato storage and potato preservation at the farms and Senselet so that the factory could produce crisps all year round.

However, another vulnerability was identified. The local Gundane potato has been made resistant to Phytophthora by the potato research institute CIP, but connoisseurs know that this pathogen breaks through the resistance sooner or later. WUR therefore advised Senselet to already introduce a second crisps potato variety with resistance to the potato disease. That advice was also adopted by Pepsico. By now, a new variety has been registered and a few more varieties are in the registration process.

Success story

Seven years ago, there was no such thing as a successful potato chain in Ethiopia. The crucial factor in the development of the potato chain is the great cooperation with farmers and other partners, such as WUR, to properly understand the existing potato chain and then implement improvements step by step. With training and supervision, but also because off-take is now guaranteed and a decent price is paid, farmers' incomes have grown significantly.