1.

Introduction
The poultry feed industry plays a crucial role in the success and profitability of poultry farming.

Demand for poultry products is increasing rapidly due to the growing population. As a result, the poultry industry is continuously seeking ways
to improve productivity and reduce production costs. One important area of focus is the search for cost-effective and non-traditional feed sources
that can enhance poultry productivity while reducing overall production costs. The use of alternative feed ingredients can help to mitigate the
high cost of imported raw materials, such as cereals and oil-seed cakes, which are essential for poultry feed production in many least developing
countries. In addition to the traditional feed sources, there is a growing emphasis on the use of complete feeds in the poultry industry. These
complete feeds are designed to contain all the nutritional materials necessary for optimal meat and egg production. The utilization of complete
feeds not only ensures the dietary needs of the poultry are met but also contributes to the overall quality of poultry products. Advancements in
science and technology have significantly contributed to the expansion of the poultry industry, leading to the adoption of various strategies to
modulate the quality of poultry products, including eggs and meat.

In this regard, research on alternative ingredients for poultry feed has shown promising potential for inclusion or substitution of conventional
ingredients. The aim is to lower the feed costs that represent a significant portion of production costs, with estimates ranging from 70% to 80%.
By incorporating by-products and non-traditional feedstuffs, there is an opportunity to reduce the reliance on costly conventional ingredients
such as maize, soybean, and groundnut. The utilization of these alternative ingredients offers the potential to enhance poultry productivity and
decrease the overall cost of production. By exploring the potentials of alternative feed stuffs, such as Black Soldier Fly larvae, the poultry
industry can further reduce its reliance on costly imported feed components and, in turn, lower the production costs. Moreover, the use of
alternative feed sources can contribute to a more sustainable and environmentally friendly approach to poultry farming. For instance, the
introduction of waste products into the feed can provide a cost-effective and efficient solution, reducing the burden on conventional feed sources.
Furthermore, the adoption of free-range production systems offers an alternative approach, allowing poultry to fulfill their dietary requirements
from household leftovers, kitchen waste, vegetables, and green grasses. Investigating alternative and affordable feeding and housing systems is
crucial in addressing the challenges posed by the high cost of poultry feed.

There are also significant opportunities in exploring affordable housing systems that can contribute to reducing the overall cost of poultry
production. Utilizing cost-effective materials and efficient design strategies in poultry housing can play a key role in managing operational
expenses. Additionally, advancements in technology have led to innovative solutions in poultry production, such as automated feeding and
climate control systems, which can further optimize productivity and reduce labor costs.

As the poultry industry continues to face challenges related to the high cost of feed, it becomes increasingly important to evaluate and implement
sustainable and cost-effective practices.

2. OBJECTIVE

2.1 General objective

The general objective of this value chain is to assess the effectiveness of using black soldier fly larvae as the major protein content in poultry feeds.

2.2 Specific objectives

 To identify the task and responsibilities of main actors and stack holders
 To aware the relationship of participants in the value chain and recognize the gap or bottle neck to improve the value on each activities.
 To support the manufacturers of windows and doors through training or skill (human ware), documents (info ware) and introducing better
technology than before and organize them for coordination and managing merely.
 To use all the benefits’ of the study for succession achievement of the goal.

Scope of value chain

The scope of the assignment was to study the feasibility of BSF production in Ethiopia, with a focus on the role BSF products could play in alleviating feed
supply problems of small-, medium- and large-scale poultry farms. Apart from assessing the technical feasibility, the study also investigated current and
required factors to enable and stimulate insect production in the country.

Statement of problem

Fish feeds (pellets, crumble and powder) in East Africa are made from soya bean cake, Rastrineobola argentae (silver fish), maize brand, cotton seedcake,
wheat brand, cassava brand, blood meal and sometimes greens are added (Bethuel O. Omolo et al), However, these feeds are still very expensive compared to
the returns farmers are receiving from the sales of their outputs after a long struggle to purchase the fingerlings and other production equipments, feeding fish
to marketable sizes, keeping in mind the costs of constructing the holding facilities; which all needs money, putting a heavy upheaval on the poor farmers.
Agricultural and meat processing by-products are possible feed sources, but they can be either difficult or costly to obtain. Of these emerging techniques, one
of the most promising is the culture of black soldier fly (BSF) larvae as fish feed, a technique that offers the additional benefit of reducing organic waste.

In Uganda, a kilogram of pellets is about five thousand (5,000) Uganda shillings or more, and a kilogram of fish goes for a maximum of about ten to eleven
thousand shillings only depending on supply, which ratio do not intersect after a long feeding season. This calls for high need to find an alternative which is
cheaper and yet protein sufficient enough, hence, the reason to look to black soldier fly.

The major source of protein components in the fish feeds named above have been competed for by chicken farmers, piggery, and man has also started eating
the “trash fish”, which intensified the demand and subsequently higher prices involved.

Most farmers are looking for cost effective feeds but with high protein content so as to be able to obtain better returns from fish farming, and this have
remained a dream for a long time now, yet no body has the right answer so far.

This dream can come to reality if we can obtain a cheaper protein rich feed from this wild insect, “black soldier fly” domesticated in culturing facilities and
feeding them on domestic wastes such as table left-over, kitchen waste, livestock dung, and human faeces and then feed its larvae either directly to fish or
make it the major protein component in feeds depending on which yields a better result

1.3

1.3 Activities

It is recommended that the relation (networking) among enterprises or MSEs to be competitive and other stockholders of the value chain. Creating awareness
on the importance of value chain in developing demanded (market centered technologies) the need for this document (value chain) should be clear to all levels
of actors (MSEs) and stockholders as far as it is important in selecting technologies.

1.4 Importance of the document (value chain)

The main importance of this document is to create competitive developmental attitude to those enterprises engaged in livestock farm especially poultry farm.
It is known that the role of BSF feed system is very important to achieve the growth of poultry farm.

 The sector of poultry farm is important to the cities and countries level. So to provide encouragements this sector.
 The actors of the value chain are expected to play their role importantly needs the participation of the clear document.
  To indicate the alternative ways of the enterprises in their business as a result of this value chain.
 To transform the MSEs to the next higher level.
 To encourage the MSEs with the products which are selected through this value chain and let them to transform to next level of metal manufacturing.

1.5 Meaning

Meaning of value chain: - the process which includes important activities of a product/service is processed starting from input to output /customer/

Actors of value chain: - includes input suppliers, producers, exporters, service providers as well as customers.

Production process:- is the process of converting raw input/man power, natural resources, production tools etc to finished goods/service/.

BSF: - One of well-known insect named black soldier fly (BSF) especially Hermetic illusions has been more and more used commercially in feed because of
easy rearing, high yield, rich nutritional value and the ability to utilize organic wastes.

Larva: - Black soldier fly larvae (BSFL) are used to compost waste or convert the waste into animal feed.
Chapter 2

2.1 General information about Black Soldier Fly:

The black soldier fly (BSF), Hermetia illucens Linnaeus, is a large Stratiomyidae fly (13-20 mm size)found worldwide. Naturally, the BSF can
be found all over South America and Asia, but is native to Colombia. They are generally considered a beneficial insect and non-pest. The adult
fly does not have mouthparts, stingers, or digestive organs; thus, they do not bite or sting and do not feed during its short lifespan. They feed
only as larvae and are, therefore, not associated with disease transmission. BSF larvae (BSFL) are voracious eaters of a wide range of
organic wastes, decomposing and returning nutrients to the soil. Additionally, BSFL is an alternative protein source for aquaculture, pet
food, livestock feed, and human nutrition. Rapid growth in the global human population and urbanization have led to increasing demands for
food production and organic waste management. As the needs for nutritious food continue to rise, it is critical to ensure current and future
food security, reduce waste generation, and promote sustainable farming that includes residue reuse and waste valorization. The use of the Black
soldier fly (BSF), Hermetia illucens L., an emerging green technology, represents an enormous potential in waste management. BSF can
remarkably reduce a wide variety of wastes and concurrently offer valuable animal or human feed and oil with high nutrient composition. They
are able to survive and adapt to a wide array of environmental temperatures (McCallan, 1974). These flies fall under the Stratiomyidae family
and, in the wild, are commonly found in habitats suitable for larval development such as marshlands and generally damp places with
animal waste, rotten fruit or any decaying organic matter (Li et al., 2011). The adult fly does not eat or look for food and thus does not enter
areas where people live (Sheppard et al., 1994). It is also believed that the BSF larvae are able to consume and digest organic waste at a faster
and more efficient rate than the housefly larvae (Kim et al., 2011). 2.2 Life cycle of Black Soldier Fly : The Black Soldier Fly undergoes a
complete life cycle comprising of four live stages: egg/embryo, larva, pupa/imago and adult (Li et al., 2011). Eggs hatch into larvae within 3-4
days of being laid (Diclaro and Kaufman, 2009). Under the right conditions of food, relative humidity and temperature, larvae mature into
prepupa in about two weeks. Prepupa, given the right conditions take two weeks to change into pupa in a process called pupation and
characterized by development of an embryo within the puparium (casing), stiffness of the body, followed by immobility. Prepupae change into
pupa when they find a dry medium to burrow in. In the dry medium, pupa go into a sleeping mode for a duration of at least two weeks during
which time, the embryo further develops within their exoskeletal casing. When fully developed, the casing breaks up at the tip to release an
adult fly in a process called emergence (Sheppard et al.,2002). Freshly emerged adult flies have undeveloped, folded wings which gradually
unfold within 2-3 hours and also have slightly larger, softer and greenish coloured bodies compared to one day old adults. Adults have a
lifespan of 5-12 days during which time they mate and lay eggs (Diclaro and Kaufman, 2009). Eggs are laid in masses of 500-1200 eggs
depending on the fertility level of the female, which in turn is dependent on the diet and rearing conditions at the larval stage (Tomberlin et
al.,2005). The lifecycle of a Black Soldier Fly from egg to adult is estimated to last about 44-45 days under optimum rearing conditions
but under unsuitable rearing conditions, the period can stretch up to six months (Popa and Green, 2012). The longest part of the lifecycle is
spent at the larval and pupal stages (Figure 1) (Popa and Green, 2012). In addition, the larval stage determines and influences the longevity of
other stages and the productivity of the adult stage (Holmes et al., 2012)

2.3 Nutritive value of Black Soldier Fly :

Body composition of BSF larvae varies among substrates not only in protein content (ranging from 37 to 63% dry matter; DM) but also fat
content, which has the most variation (ranging from 7 to 39% DM). Although BSF larvae on average contain both a high protein and fat content
(Zheng et al., 2012), body composition of the larvae depends on the quality and quantity of food ingested (Nguyen et al.,2015). Dry matter
content of fresh larvae is between 20 and 44% (Nguyen et al., 2015) and depends on both diet and larval stage (Rachmawati et al., 2010). Others
have found protein contents that range from 35% crude protein (Haasbroek, 2016) to 44% protein (Surendra et al., 2016) for dried full-fat
BSF larvae. BSF larvae have been found to contain 58-72% saturated fatty acids and 19-40% mono- and poly-unsaturated fatty acids of total fat
content (Makkar et al.,2014) containing high levels of lauric, palmitic and oleic acid (Surendra et al., 2016). Black soldier fly larvae in various
stages (adult, larval and pupal forms) are naturally consumed by wild bird and free-range poultry (Biasato et al., 2018a). Birds including
chickens have a low taste bud number and thus low taste acuity compared to mammals (Liu et al., 2011). Chickens have different
sensitivities to the bitter taste (Woods et al., 2019). Cullere et al. (2016) made a feed-choice test in quails and observed that the birds
preferred the diet including H. illucens meal compared to Commercial poultry ration. In particular studies, Black soldier fly larvae are fed to
poultry in the form of meal. But according to Moula et al. (2017), feeding life larvae may be more adequate than after processing. They should
be processed to make them safe for use in poultry diets. Live larvae can also be difficult for handling and incompatible with automated feeding
systems and can act as vectors in the transmission of infectious and viral diseases (Khusro et al., 2012). Live larvae also may be difficult to mix
with ingredients in the diet, so processed insects can be easier to handle (Al-Qazzaz et al., 2016). Johnson & Boyce (1990) revealed that
increasing amount of larvae meal added in the diet improved survival and growth rate of chickens. Mortality of quails was not affected by the
inclusion of 10% dried H. illucens larvae (Woods et al., 2019). Correspondingly, the results obtained by Kareem et al. (2018) showed that
excreta Enterobacteriaceae count was lower in birds fed with larvae meal supplemented diets than the control.

2.3.1 Chemical analysis of Black Soldier Fly : The proximate composition in this study shows that BSFM contains 43.17% protein and 31.08%
lipid, previous studies that reported that the prepupae of black soldier fly contained approximately 40% protein and 30% fat Newton et al.,
2005) .The crude protein content of larvae in our study ranged between 30 and 46%. These values are within the range of crude protein values
for BSF larvae reported in the literature (Liland et al., 2017; Spranghers et al., 2017; Meneguz et al., 2018).

2.3.2 Amino acid content of Black Soldier Fly: The amino acids (AA) composition of BSF is rich in methionine and lysine (9.05 and 22.3 g/kg
DM, respectively) ( Oonincx et al.,2015) and is reported to be similar or even superior than that of soybean ( Veldkamp et al., 2012)However,
nowadays knowledge about the suitability of the use of BSF as poultry feed ingredient is scarce and little-to-date.

2.3.3 Fatty acid percentage of Black Soldier Fly:

Compared with other insects, the black soldier fly commonly contains a higher amount of fat (up to approximately 40%) and is rich in
saturated fatty acids (SFA), especially palmitic acid (C16:0) and lauric acid (C12:0), the latter of which is known for its antimicrobial
activity against Gram positive bacteria .(Muller et al., 2015, Caligiani et al., 2019,Rabani et al., 2019).It also has higher contents of oleic acid
(C18:1n-9), palmitic acid (C16:0) and linoleic acid (C18:2n-6) in its body compared to other insects ( Caligiani et al., 2019) However, the
fat content and fatty acid composition of the larvae dramatically vary (ether extracts from 5% to 40% dry matter) with the rearing substrates.

2.4. Effect On poultry ration as protein source :

Black soldier fly larvae have high nutritive value, not only in crude protein but, also for fats,minerals, and vitamins (Khusro et al., 2012). BSFL
can be utilised as a feed ingredient in various animal’s diets, and has been researched extensively in fish but not as vastly in poultry and other
animals (Sealey et al., 2011). Fly larvae, in general, has been tested as a potential renewable protein source for poultry (Awoniyi et
al.,2003). The nutrient requirements of a poultry depend on its species, age and type of production. Broiler performance (based on nutrient
utilisation) is reported as being influenced by one things which is crude protein of a diet (Zaman et al., 2008). The amino acid requirements
differ for every animal species and even vary within species due to different physiological stages and needs (McDonald et al., 2002).
Methionine is known to be the first limiting amino acid for poultry, followed by lysine, and adequate supply of these two amino acids will
support optimised protein utilisation (Schutte & de Jong, 2004). In the ideal amino acid profile for broilers, all essential amino acids are
expressed as a percentage of lysine, because the essential amino acids relative to lysine are unaffected regardless of genetics, dietary and
environmental factors (Schutte & de Jong, 2004). BSFL also have sufficient content of copper, iron, magnesium, phosphorus, and zinc for
requirements of domestic birds (Barker et al., 1998).

2.4.1 Black soldier fly meet up the protein requirement of Poultry:

BSF are possibly the most widely studied and the earliest referenced paper for their use as protein source in poultry feed. (Hale et al.,2014)
In case of Broiler starter (20 to 23 percent protein) 0 to 2 weeks Pullet starter (20 to 22 percent protein) 2 to 6 weeks.Pullet grower (16 to 18
percent protein) 6 to 12. Birds almost reach the desired weight. Starter and grower feeds must contain a coccidiostat.Broiler finisher withdrawal
(15 to 18 percent protein) or supplemented scratch grains (10 percent protein). This feed should be fed for 7 to 10 days before slaughter, because
it contains no medication or a medication requiring no withdrawal time. These feeds also are high in energy and low in protein, so they
will produce excessively fat birds when used longer than 2 weeks.A complete broiler grower diet containing 18 to 20 percent protein should be
available free-choice at all times. Above all Dietary Black soldier fly larvae has positively influenced the growth performance of the birds in
the present trial up(Gajana et al.,2018)In case of laying hen, Research indicates that light breed hens require at least 17 grams of well-balanced
protein per day. Using of black soldier fly in ration to meet up this requirement and experiment shows that its give the required
amount protein.(Dabbou et al.,2018)

2.4.2 Increasing the growth rate and feed conversation ratio

A positive performance impact of dietary inclusion of insect meal has also been observed in other research studies in broilers, with
increases in body weight, body weight gain, and feed conversion ratio (FCR). (Gajana et al.,2018).Based on the results of this study, up to 20%,
full-fat BSFL can be safely used in balanced broiler diet formulations without compromising broiler performance or health, and an inclusion
level of 15% to 20% impacted immunologic parameters. The use of BSFL in broiler diets at that level improved growth performance parameters
potentially due to the reduced energy demands of the immune system. Research conducted on commercial farms and in disease challenge models
is highly warranted to validate the current results for economic relevance ( Benzertiha et al.,2019).For broiler producers, an FCR of 1.6
means that their chickens gain 1 kilogram of weight for every 1.6 kilograms of feed consumed. The lower the FCR, the more efficient animals
are at converting feed into food.(Farooq et al.,2019)

2.4.3 Increasing egg quality andlaying performance:

Providing ad libitum dried larvae on the outdoor range found a reduction in egg weight, shell weight, shell thickness, and yolk color compared to
-control hens and found no differences between treatments in the ranging behavior of the hens In comparison, , found an increase in egg
weight and egg shell thickness in a group fed dried whole BSF larvae compared to the control. A new area of interest is providing live larvae
to laying hens, in order to further promote foraging behaviors and avoid abnormal behaviors such as feather pecking. Indeed, in a study of older
laying hens, from 67 to 78 wk of age, the feather condition of live-larvae-fed hens was better than that of the control hens which were provided a
commercial diet Furthermore, larvae provided throughout the day seemed to facilitate the expression of natural feed searching behavior without
affecting feed conversion, body weight gain or egg parameters (Kawasaki et al., 2019)(Star et al.,2019)

2.4.4 Effect on carcass characteristics:

Most of the studies did not find significant differences in carcass traits of young chickens when fly larvae or pupae replaced soybean
meal. T. Molitor meal inclusion did not affect the carcass traits of experimental groups in the trial of Bovera et al. (2016) or Biasato et al. (2016,
2018a). Altmann et al. (2018) detected heavier carcass in chickens fed with diet where 50% of the soy-based protein was substituted by H.
Illucens larval meal than in control group, probably because of H. Illucens larvae meal diet was substantially higher in crude protein and ether
extract and chickens fed with this diet had higher final live weight. When poultry ration was replaced by larvae meal broiler diets, the
dressing out percentage was affected (Awoniyi et al., 2003). In agreement, Cullere et al. (2016) fed broiler quails on 0, 10, and 15% inclusion
levels of H. Illucens meal and did find a difference between the conventional and insect-based diet on dressing out percentage. Hwangbo et
al. (2009) observed higher dressing percentages for broilers fed house fly meal included at levels from 5% to 20%. The results of the
percentage of the main valuable parts in poultry fed insect meals are ambiguous. Awonyi et al. (2011) showed no effect of replacement
fishmeal by larvae meal on muscle yield. Cullere et al. (2016), Onsongo et al. (2018) and Kareem et al. (2018) did not observe the effect of
H. Illucens meal inclusion on breast meat percentage in quails or chickens, respectively. However, when poultry ration diet was partially
replaced with insect meals, it resulted in higher breast and thigh muscle weights (Hwangbo et al., 2009) or higher breast meat percentage
(Pieterse et al., 2014)

2.4.5 Ensure the high quality meat :

Meat quality can be described by chemical composition, physical meat characteristics (pH value, colour, tenderness) or sensory value. The
chemical composition of meat can be influenced by the crude protein and energetic concentrations in the diet, whereas the impact of the crude
protein source is still unclear (Özek et al., 2003). Regarding the change of protein in the diet, Pieterse et al. (2019) and Bovera et al. (2016)
found that when the soybean meal was completely replaced by T. Molitor meal as a crude protein source, it did not affect the proximate
composition of meat. Pieterse et al. (2019) showed that the inclusion of H. Illucens meal in the broiler chicken diet did not influence
moisture, crude protein, fat and ash content of cooked meat. It seems that H. Illucens meals used in broiler chickens have the potential to produce
meat with comparable chemical traits compared to those fed diets containing traditional feed ingredients (Pieterse et al., 2019). Fromphysical
meat properties, the pH value is important for the detection of meat defects like PSE (pale, soft, exudative meat) if the pH value measured 15
minutes post mortem is lower than 5.6. Cullere et al. (2016) obtained that quails fed H. Illucens at 10 or 15% had a pH value of around 5.67, that
is slightly lower than in control group fed soy-based diet. On the other hand, according to the study of Bovera et al. (2016), poultry fed with
insect meals had higher pH value. In contrast, Pieterse et al. (2019) showed that no treatment differences were found regarding to the initial and
ultimate pH of the thigh muscles. Despite this, the addition of H. Illucens meals did not lead to negative changes in pH values that could
indicate meat defects. Nutrition can also affect meat colour, as it is the main sources of pigments in poultry life. Consumers consider meat colour
an important quality clue at the point of purchase (Fletcher, 1999). Secci et al. (2018) have recently found that 1 kg of H. Illucens larval meal
contained around 42 g of total tocopherols and 2 mg of total carotenoids. The pigments in animal feeding are derived from all the
ingredients utilized for the formulation. No significant treatment differences for colour were observed regarding the colour characteristics
of the broiler breast muscle (Fletcher, 1999). Secci et al. (2018) did not find any differences in meat colour parameters between barbary
partridge fed with soybean meal H. Illucens meals or vegetable oils. Another meat quality parameter important for the consumer is meat
tenderness, which was not affected by the introduction of larvae meals in the diet (Bovera et al., 2016; Pieterse et al., 2019). Water holding
capacity of meat can be described by the drip loss or cooking loss when the meat is heat-treated. Drip loss was the lowest for the larvae-fed
samples compared to those with soybean (Pieterse et al., 2014). However, when meat was heat-treated poultry fed with insect meals had higher
cooking losses (Bovera et al., 2016). In another study, no significant treatment differences were found for thaw loss and cooking loss (Pieterse et
al., 2019). Broilers are monogastric animals, any variation in the chemical composition of the feeds could potentially influence (positively or
negatively) the sensory profile of the meat (Pieterse et al., 2019). According to the study of Hwangbo et al. (2009), the organoleptic
characteristics of broiler meat were not affected by Black soldier fly larvae meals in the diet. Likewise, the sensory test of Onsongo et al.
(2018) suggests that inclusion of H. Illucens meal in broiler diets does not affect consumer preference for broiler chicken breast meat
consumption because the black soldier fly larvae meals inclusion did not change the taste and aroma of the meat as well as in study of Pieterse
et al. (2019). On the other hand, fresh chicken breast filets score had the most intensive flavour in H. Illucens fed group (Altmann et al., 2018).
The larvae-fed meat samples scored significantly higher for sustained juiciness compared to the soy and fish meal-fed samples and it also
provides an indication that broilers fed larvae meal could have juicier meat (Pieterse et al., 2014). Therefore, it can be concluded that the
substitution of commercial poultry feed containing protein with black soldier fly larvae meals expressed very modest or no changes in the meat
quality for many of the meat quality.

2.5. Ecological benefit of using Black Soldier Fly

Indirectly, Black Soldiers Fly plays vital role to maintain the ecological balance of environment. There are several ways through we can use
black soldier fly as the weapon which help to modarate the wastage and convert wastage into organic compounds.
2.5.1 Black Soldier Fly composting

In earlier studies (e.g. Sheppard et al., 2002), BSFL was mainly reared on manure from various animals. Lately though, a wide variety of
substrates has been tried out for the BSFL; examples include restaurant waste, fish offal, cow manure, biogas digestate, brewery by-products,
sewer sludge and human faeces (Lalander et al., 2019; Meneguz et al., 2018b; Spranghers et al., 2017; St-Hilaire et al., 2007a). There is a
consensus in the literature, that the growth and feed conversion of the BSFL, as well as nutritional composition, are affected by the substrate
that the larvae are reared on. For example, in the study by Lalander et al. (2019) BSFL reared on abattoir waste took 12 days to reach the
prepupal stage, while it took up to 40 days when the larvae were reared on digested sewage sludge. Also, in the same study, the prepupae
reached a weight of 250 mg when the larvae were reared on abattoir waste, while it was as low as 70 mg when reared on digested sewage sludge.
In the study by Lalander et al. (2019) it was observed that the amount of volatile solids and protein of the substrate had a large impact on
the size and development time of the larvae. The impact of the protein content of the substrate has also been investigated in other
studies. Pimentel et al. (2017) observed morphological changes in the fat body of the BSFL, as well as starvation response in the gene
expression, when the larvae were reared on substrates poor in nitrogen. While the protein and volatile solids content in the substrate
appears as important for the larval development, the BSFL has been observed to withstand wide variations in substrate pH. In the study
by Meneguz et al. (2018a) no significant differences were found in final larval weight, mortality or development time between larvae reared on
substrates with pH-values between 4.0-9.5. Additionally, during the trial, the pH-value changed to 9, independent of the initial pH. It also seems
like the BSFL are able to reduce pathogens in the rearing substrate. In a study by Lalander et al. (2015), a 7 log reduction of Salmonella spp.Was
observed during the BSF composting trial. In addition to the substrate quality, factors such as temperature and relative humidity also affects the
development of the larvae (Tomberlin & Cammack, 2017). BSF mating and oviposition has been observed at temperatures of 24-40°C and at
relative humidity between 30-90% (Sheppard et al., 2002). The temperature usually used for the fly larvae composting step is 27-29°C at a
relative humidity of 60-70% (e.g. Meneguz et al., 2018b; Spranghers et al., 2017). Another factor which has been observed to affect the
larval development is the feeding system. Meneguz et al. (2018a) found that when larvae were given the substrate in one batch, the
prepupae developed faster, but when given the same amount of substrate spread over the whole feeding period, the larvae grew bigger.

2.5.2 Wastage management throughharvesting of BSF

Black soldier flies (Hermetia illucens) play a significant role in recycling many forms of organic waste and other accumulated nutrients in the
environment. The larvae of black soldier flies able to broken down various organic matter including food waste in ecosystem . This
Species also recorded as an agricultural-waste consumer such as coffee pulp palm kernel meal and rice straw waste or organic waste
materials like market waste, municipal organic waste or dewatered faecal sludge . Larvae of black soldier flies also consume livestock manure
such as chicken manure pigmanure, and dairy manure. In digestion process, these larvae assimilate nutrients of the organic matter. Through this
process, black soldier fly larva cuts down the amount of organic waste, so indirectly decline the pollution potential. More than half of the
nutrients contained in feed are excreted as manure. The black soldier fly consume and convert residual manure proteins and other nutrients into
their valuable biomass, which is a high quality animal protein feedstuff The larvae and prepupae of black soldier fly have a high protein and fat
content that can be used to support growth a lot of livestock such as blue tilapia fish and pigs . The environmental impact of animal husbandry
could decline significantly if black soldier fly larvae are used in order to eliminate livestock manure and reused as livestock feed. Organic matter
as growing substrate greatly affects the development of black soldier fly and various biological traits. The present study focused on
analyzing the influence of horse and sheep manure substrates toward nutrient composition and growth performance of black soldier fly larvae
and to quantify the suitability of horse and sheep manure as feed for black soldier fly larvae.

2.5.3 Reduction of pollution and sanitation of the environment

BSFL feeding activity reduces the amount of organic waste dumped in open streets and water points by at least 50-60% (Diener et al., 2011),
resident nutrients such as nitrogen content by 71%, phosphorus and potassium by 52% each, amount of greenhouse gases that is generated from
the waste through anaerobic respiration such as Carbon di oxide, Sulfur dioxide, methane, ammonia and other noxious gases (Van Huis et al.,
2013). The larvae also treat organic leachates that pollute marine and terrestrial environments (Popa and Green, 2012), and clean up oil and
grease pollutions that may cause aquatic suffocations by feeding on the spilled oil (Zheng et al., 2013). The inclusion of BSFL in pit latrines and
sewerage sites to feed on, decompose and reduce the faecal matter content can help prolong the lifespan of these facilities and therefore
contribute to the improvement of sanitation by lessening open defeacation (Banks et al., 2014).

2.6 Cost effectiveness of BSF

Feed cost can form up to 70% of the total cost of poultry production. Animal protein sources are preferred over plant protein sources because
animal proteins contain a good balance of essential amino acids and an excellent content of vitamins (Saima et al., 2008). Fish meal is a high-
quality Protein source used mainly in black soldier fly potentially low-costnutrient-rich alternative protein source, that is similar or superior in
protein quality to FMand plant sources The processed larvae of this insect is rich in nutrients such ascrude protein content (38.5–
62.7%) with well-balanced amino acids profile, good qualityfatty acids (14.0–39.2%) and micronutrients such as iron and zinc. However,the
nutritional status of these insects might vary depending on the species, developmentalstage, and rearing substrates Several studies on the
use of BSF larvae meal (BSFLM)in commercial feeds have largely focused on broiler, pig and fish ) rather thanlayers. In literature, few studies
on chicken layers have largely focused from the point ofegg laying both for non-defatted BSFLM or defatted BSFLM based feeds. Also,chick,

pullet, and layer birds, each has its own specific nutritional requirements, which must be considered when formulating their feed . The
studies described illustrated differences in body weight only at the onset of egg production because it is a major factorinfluencing the
efficiency of egg production. Although, laying hen are not raised formeat, the lack of information on the growth of the visceral organs could
have a detrimental impact on egg productivity. For example, the weights of some visceral organs have been shown to be affected by dietary
treatment. Also, during feed restriction or change, the physical development of birds usually gives priority to the development of the internal
organs, which are capable of recovering more quickly than other parts of the body. According to Obeng et al. Changes of internal organs in
growing birds could improver hinder the utilization rate of energy, protein, amino acids, and other nutrients required to enhance .

2.7 Challenges in the use of Black soldier fly larvae as a food and feed resource Operations for the production of BSF have been faced with
different challenges which mostly relate to the use of the larvae as feed rather than as an agent of waste management (Mutafaela, 2015). To start
with, Black Soldier Fly production requires a warm environment. This requirement has proved difficult and energy consuming to sustain in the
temperate climates and during winter periods (Holmes et al., 2012). Use of greenhouses to ensure continued production during the cold seasons
within the tropics and equatorial climates has made the enterprise expensive (Holmes et al., 2012). The duration of the life cycle ranges
between several weeks to several months depending on temperatures, quality and quantity of the diet. This makes prediction of production a
challenge (Veldkamp et al., 2012). The continued lack of legal framework and specific legislations on the use of BSF discourages investment
in the sector (Leek, 2017). For example within the European Union (EU), strict sanitary regulations, a lack of guidelines on the mass
rearing of insects, lack of clarity on which insect types are authorized for the market, and prohibition of some common types of substrates for
insect production have also hindered progress in the acceptance and establishment of the insect market (van Huis et al., 2013). This is in
contrast to countries in Africa where there is virtually no restriction on the kind of substrates used (Leek, 2017). Issues of feed quality due to the
potential of BSF to bio-accumulate toxins and heavy metals from pesticides, chemical fertilizers, herbicides and other chemicals sprayed on
production substrates and genetic engineering technologies presents another challenge (Diener et al., 2009). High sodium levels in processed
food stuffs have also proved problematic. Most of these accumulate in ecosystems and in larva, and at higher concentrations may be toxic
both to the larvae and the consuming animals along the food chain (van Huis et al., 2013). This therefore limits the potential sources of
suitable substrates. Another concern involves acceptance and perception of insects. This is perhaps because society associates them with
houseflies which are a known health risk. This is the basis for the EU restrictions on the use of insects as feed ingredients of animals destined for
human consumption (Leek, 2017). The generalization is affecting even harmless flies like BSF and is largely due to lack of
awareness.Lackofcollaboration among experts in the field to make necessary explanations to the naïve public and create awareness on potential
of insects as a food and feed resource has contributed to poor acceptance and persistence of the wrong perceptions (Smith and Barnes, 2015).
However the perceived benefits of insects such as sustainable production, lowered dependence on imported protein sources and lower

environmental impact are mitigating for improved change of attitude towards broad acceptance and are considered more important than the
perceived risks such as microbiological contamination, chemical residues in the food chain and lower consumer acceptance of poultry products
(Verbeke, 2015). Healthy risks from a variety of pathogens, parasites and diseases are a major challenge in BSF production

systems (Leek, 2017). Knowledge of disease and health management in intensive insect rearing is still limited and population crashes
sometimes involving the whole colony do occur (Leek, 2017). For instance in Georgia, a parastoid wasp of the Trichopria genus has been
reported to infect 21-32% of Black Soldier Fly pupae (Mutafaela, 2015). Current mitigation measures involve minimizing the health

risks by ensuring bio-security in a breeding colony, use of very ‘clean’ substrates and separate housing of the different stages of the breeding
stock to avoid cross infection between the different stages (Leek, 2017). In addition, predators such as rats, mongooses and lizards do feed on
larva and adults and can therefore significantly contribute to diminishing of populations and returns. At current prices, BSF is at par with
fishmeal which over recent years has all but disappeared from most livestock diets. However with increase in campaigns to increase adoption of
insect rearing technologies, supply is expected to rise and with it, reduction of price (Rumpold and Schlüter, 2013).

Our country's poultry feed production strength, weakens, opportunity, and threat

2.1 selection of value chain

2.1.1 Selection of value chain criteria

SELECTION OF
VALUE CHAIN

Growth and transformation plan

SIZE OF SUB SECTOR

 Employment (12%)

For countries like Ethiopia, unemployment is a critical problem. The selected value chain will create a considerable amount of job opportunities and absorb
unemployed labor force. Thus, beyond supplying of quality products a value chain expected to reduce unemployment.

 GDP share(10%)

An Economic development of a country is the total sum of GDP shares for every product/subsector. A product that has a greater GDP share in an economy is
more likely to create jobs and alleviate poverty. A selected value chain should be those products/subsectors with a relatively higher share of national GDP.

 Market share (13%)

If a product is not competitive in quality and price on the market to satisfy customer requirements it no longer exists in the market. So the value chain we are
in a position to develop should have a sustainable and significant market share

 Share of Export(5%)

The share of export represent the shares of the product/subsector from the country`s total export of goods and services. The indicator measures the degree of
importance of a product within the total exports of country. The export share of a product/subsector is a determinant factor for a value chain selection.

 GROWTH POTENTIAL(10%)

Define as the mathematical probability that a business will become larger. The growth potential refers to amount of sales or revenues the organization
generates currently and keeps the future demand and satisfaction. A growth potential is often the most important selection criteria because without growth
competitiveness a product/subsector cannot be sustained. A selected value chain should have the potential to grow parallel to the customer`s growing demand.

 Market potential.(10%)

The estimated total sales revenue of all suppliers of a product in a market during a certain period for both domestic and export scenario.

 Factor condition (human, material, knowledge, capital, infrastructure)(9%)

Other condition factors related with human resources, the accessibility of the materials, knowledge imposed, amount of capital and infrastructure in producing
the product and services should be considered in selection of value chain development.

 Product diversification. (5%)

Enterprise’s expanding opportunities through additional market potential of an existing product.. Achieved by entering into additional markets and/or pricing
strategies. Often the product may be improved, altered or changed, or new marketing activities are developed. A value chain is developed for products that
have a potential to diversify.

 POTENTIAL IMPACT ON MSE, YOUTH etc. (11%)

A value chain is developed to support MSEs with identified gaps. On the other hand, the developed value chain promotes the establishment of MSEs by
creating jobs, and strengthening the linkages with large industries. Growth in industries with high rates of MSE participation and employment will have an
impact in reducingpoverty more than growth in industries with low employment and minimal MSE participation. A value chain that has positive contribution
to massive MSEs participation and job opportunity for youth should be selected

 CONSERVATION IMPORTANCE (10%)

A production of environment friendly product and services, business operation with the utmost consideration of the environment and natural resources that
aims to identify the most significant positive and negative impacts of the value chain on the environment and vice versa. To remain in business and be
profitable in the longer term, the value chains in which we develop need to be all-encompassing and green. Focusing on economic development alone brings
environmental damage, and therefore the selected value chain will have no/less harm on the environment that enhances the quality of growth.

 WOMEN EMPOWERMENT (5%)

Women's empowerment, referring to the empowerment of women in our present society, has become a significant topic of discussion in regards to
development. Equal rights for men and women as a basic human right is given great considerations. The value chain that we are going to select should
consider gender equal opportunity

2.1.2 List products available in the study

No Product name Value in number Rank

1. Metallic bed 8 2nd
2. Metallic shop 2
 3. Door and window 10 1st
4. Chair and table 7 3rd
5. Ladder and scuff hold 1
6. Art metal product 0
7. Container 5
8. Block mold 3
9. Metallic shelf 6
10. Colon and beam panel 1

Remark

 The maximum value is 10 which mean all MSEs are fabricating the product.
 The minimum value is 0
Part three

Data collection

3.1 survey and date collection methodology

During the study mainly focusing on MSEs living in Hawassain manufacturing of metal products and suppliers of raw materials to their customer.

The questionnaires are prepared and filled by our members who accomplished the Study, other methodology observation and interview are also included
to get full information and became effective for its result.

3.2 sampling technique

Since this sector actors are too many in number it is impossible to get all of them so randomsampling is used as a technique to cover all kebeles
manufacturing and supplier members of the city.

3.3 major surveying findings

 Raw materials in put for metal Manufacturing’s are completeimportfrom foreign country resulting higher costs.
 There is a supply problem of raw materials for MSEs.
 The MSEs do have limited knowledge and skill which result the use of back ward technology.
 of the mainly produced products(door and windows ,agricultural tools ,metallic bed ,metallic containers,chair and tables etc…. imitations results
market demand reduces importsubstation
 Encouraging the MSEs does not involve the strong integration of stockholder.

3.4 Data collection covers: - Enterprise, suppliers, producers, contractors and retails
No Name of enterprise Location Kebele Sector Sub sector Trade type Remark
1. Alemasefa metal work Hawassa 04 Manufacturing Metal work producer
2 Haregotmizane metal Hawassa 04 Manufacturing Metal work producer
work and modification
3 Eyasu hirpho general Hawassa 04 Manufacturing Metal and producer
contractor furniture work
4 Bisirathadgu metal and Hawassa 02 Manufacturing Metal and producer
 furniture work furniture work
5 Biruk metal work Hawassa 03 Manufacturing Metal work producer
6 Aksumawit metal and Hawassa 03 Manufacturing Metal and producer
furniture work furniture work
7 Shimukahadush metal Hawassa 03 Manufacturing Metal work producer
work
8 Messebo building Hawassa 05 Trade Supplier retailer
material shope
9 Kidus building Hawassa 03 Trade Supplier retailer
materials shope
10 Tadese building Hawassa 03 Trade Supplier retailer
materials shope

3.5 Data analysis

3.5.1 Sources of main input (materials)

In our country, the main input of the metal manufacturing supply is almostimported. Such metals as hot rolled steel, cold rolled steel sheet,galvanized steel
sheet, flat rolled products, cold plated or coated, electrodes are imported.

From literatures, the above listed metals are imported from India, Ukraine, turkey, Russia, and Kazakhstanand are transported by shipping.

Those metal products are purchased in Ethiopia by

 Governmental institutions
 private companies
 whole sellers
 retailers sellers
 Nongovernmental Organizations (NGOs)
 users and some furniture ,construction materials and manufacturers

Because of this, most of the above buyers face financial and organizational problems to import those materials.
3.5.2 MSEs System of production and usage of technologies

The study shows as all most all worker and mangers of the enterprises are working based on their experience additionally all most all of them
requires quality production and productive management(kaizen),skill development especially interpreting drawings at its standard level ,business management
,entrepreneurship and the ability to use latest technology are essentially necessary.

The tools, equipment’s and machines that they are using in their shop are locally manufactured by themselvesor someone who are skill full in modification
except lake portablegrinder bench drill etc….,. Generally the hand tools are not accurate as per the required and their machines are not latest and safe. So it is
known that they have to be trained to use and fabricated the identified technologies.

3.5.3 Workshop utilization

All most all MSEs work shop is not wellorganized even some enterprise have very narrow work shop which make them to collect their raw
materials ,scraps ,machineries and products together even if finished products are stored outside/near the main road.Becauseof lack the use of moderate
technology and production area, lack of skill and knowledge. Traditional way of production does not satisfy the customer’s needs in addition the MSEs are
limited (less intended) to develop different technology and innovations.

3.5.4 Market condition

The enterprise in Hawassa produces the specified products for users when ordered with the given specification but afew of manufactures have product
shop. The customers are

 Private user
 Schools
 Hospitals
 Hotels
 Other governmental organization
 NGOs of the town and from the rural area around them.

They are not advertising their producers for other regions and use the opportunities to add more values and get better income is weak. Sothey’re not strong
competent with other metal manufacturer even most of them have no suitable selling shop.

3.6 value chain constraints of manufacturers

  They use similar raw materials
 Less qualities raw materials
 Production and selling shops are not available
 Unsuitable market condition
 Finished technique is weak
 Standard materials are not genuine and
 Traditional production system

3.7 value chain constraints of suppliers

 Raw materials are not available as required

 Foreign raw material quality is not as per the standard
 Improper handling of raw materials
 Suppliers are not available closer to the production shop
 In consistent cost of raw materials

3.8 Product and service SWOT analysis

Strength Weakness Suitability Impact

 Creating job  Limited knowledge  Is target sector of the  high cost of raw
opportunist for many and skill government materials
peoples  Limited to use better  professionals are  high cost of almost
 The activates are done technologies encouragedby training all machineries
both traditionally and  market linkage is only  highly demanded and  The raw materials
interestingly limited to government productive sector supply is from foreign
 The use of  availability ofsteel country
interchangeable melting factory in the
products for different country
uses
Part four

4. MAPPING THE VALUE CHAIN

Mapping a chain means creating a visual representation or a flow diagram of the connections between activities in value
chains as well as other market players. It helps to illustrate and understand the process by which a product goes through
several stages until it reaches the final customer.
 Manufacturing፡- Value chain of metal door &windows AS IS

In put Preparation Shaping Assembling Finishing Transporting Marketing

Customer Measuring
-inaccurate Beading Welding Grinding
order -improper Retailing
-improper Use one die -un safe Delivery
- parameter
Material technique -no jig -bycart -in cash
agreement -non SRD
selection Rolling - By Bajaj
-material machine Filling
Lay out -traditional
identificatio -filler rod
-traditional tools
n
Cutting Drilling Sanding
Design
-material fastenin
-un safe -less duty Manual by
property
Photo g
Wastage -misaligned hand
gallery -poor Painting
Hand
Sketch technique
shearing –by brush
man Hack saw Bending -Low mixing
power -out source ratio
-through -traditional -dust
experience environment

Figure 1
 Manufacturing፡- Value chain of metal door &windows BENCH MARK

After
Preparat Assembli Finishin Quality Packing Transpor Market
In put Shaping sale
ion
Measur Beading ng
Weldi g
Grinding control &storing ting ing
R&D Packing service
Shippi
ing -d/t die ng -polishing Promoti
-SWOT Inspecti Prepare Delive ng
Accurate -use jig -proper -jig fixture on
Design
-demand on packing M ry
-Material
for cast
Proper fixture welding -
Visual –banding Business -by
techniqu parame rectificatio -ready Whole
selection Laye out n
Standardi -loading
card car
-BOM ter selling
Brusher
-proper Rolling - Filling ze - Trial
-utilization tools Standar Agree
-media
Working Cutting
-use advanc -stucco ment
Scientific rolling M/C Sanding d
drawing e
-shearing Testing storage on Service
Cost machine Twisting -portable
estimate - Use Fasting Painting
sander Distract Setting quality -
man power -metal assurance
twisting - -- ive out &
&M/C circular Maintena
disc m/c advanc bycompr non orderly quanti
Certified Bending Prepare Retail nce
STD M/C cutter e essor air distract ty
User ing Training
Plan Checking -use ive
techniq Correct -
-quality bending manual
Operation ue mixing tender
al
-quantity m/c
ratio -spare

Fitting -

Using press
machine
 Part five
5. VALUE ANALYSIS

Value Analysis is analyzing value of each activities and how it is undertaken in existing situation(AS IS) with respect benchmark. A value analysis,
providing both qualitative and quantitative background information for activities to be analyzed; Sources of information for this analysis may include
secondary data, published or unpublished literature, surveys, focus groups, and rapid appraisal. A major goal of analyzing is to identify any “bottlenecks” in
the value chain.

AS IS BENCH MARK BEST REMARK

Type of
N QAULI TIM YIEL QAULI TIM PRACTIC
product YIELD COST COST
O TY E D TY E ES
01 1PER NOT 2000 16hrs 1per Basic 1300 birr 8hrs USA Mild steel
DOOR(1.2M* 2DAYS RECOG BIRR day builder
2.4M) NED grade
02 WINDOW(1 1PER DAY NOT 1000 8hrs 2per Basic 1200 birr 8hrs USA Mild steel
M*1.2M) RECOG BIRR day builder
NED grade
Part six
6. IDENTIFICATION OF CONSTRAINTS/GAP

As you know gap is something missing from an activity or a system that prevents it from being complete or perfect. But in this manual identification of a gap
means the difference between the existing situation (AS IS) and the benchmark (TO BE) with the concern of technology. Technology is simply a conversion
of input into marketable output.
 Manufacturing፡-
Manufacturing፡-
ValueValue
chain chain
of metal
of metal
door &windows
door &windows
BENCHGapMARK
Prepara Assemb Finishi After
In put Shaping Grindin Quality Packing Transpo Marke
tion
Measu ling ng sale
Weldi control &storing rting ting
R&D ring Beading g Packing service
ng -polishing
-SWOT Accurat -d/t die -proper Prepare Deliver Promoti
-jig Inspecti
- e -use jig weldin packing y on Shippi
demand Proper fixture on M–
Design fixture g - - Business ng
for cast techniq parame Visual banding -by car
-Material Lay material card
ueout rectificati Standardi - Trial
selection
-proper Rolling ter Filling
on handling Whole
Brusher
-BOM - Standa
ze
-media
tools -use -stucco -loading selling
-utilization advanc rd Service
Scientific
Cutting
rolling -
Working M/C e Sanding storag -
drawing - Testing Agree
-portable e assura
Cost shearing Twistin Fasting Distrac ment
Painting
sander Setting nce
estimate
man
machine g - -- tive out on
-band - Use
Mainte
power advanc non orderly quality
saw twisting bycomp Prepare nance
&M/C e distract &
Certified m/c ressor User Trainin
Checking techni ive quantit
STD M/C -quality Bending air manual Retailing g
que y
Plan -quantity -use Correct
-tender
Operatio bending mixing
-spare
nal m/c ratio
Fitting -

Using press
machine
6.2. PRIORITIZING THE TECHNOLOGY GAPS/CONSTRAINTS

NO PARAMETERS
1 Marketability
Attractiveness to potential buyers of the product and services
2 Profitability
Able to yield a profit or financial gain
3 Capability and Usefulness
Able to be used for a practical purpose or in several ways

4 Functionality
The quality of being suited to serve a purpose well

5 Import Substitution
Able to replace the product imported from outside of the country
6 Feasibility
State or degree of being easily or conveniently done within MSE’s level
7 Adaptability
Able to adjust into a local condition
8 Potential Impact to the MSE
Able to strengthen the linkages with Micro Small and Medium Enterprises

9 Woman Empowerment
Able to offer equal rights to men and women

10 Employment
Ability to utilize available manpower including persons with disability and can reduce the unemployment rate in the
country
Part seven
7. TECHNOLOGY IDENTIFICATION & CATEGORIZATION

Technology identification is the process of identifying technologies from the benchmark. If the technology in the benchmark is somehow
complicated and sophisticated with respect to the country`s potential and focus, it is possible to look for other additional alternative technologies
(equivalent technology from other best practices) without compromising the quality and efficiency.

Categorization of technology: The process of segregating identified technologies according to four categories of technologies namely Techno
ware, Human ware, Info ware and Orga ware.
NO TECHNO WARE HUMAN WARE INFO WARE ORGA WARE
ACTIVATES
1. Cutting - shearing machine
-metal circular disc cutter
2. Bending -Sheet metal Bending machine
-profile bending machine

3. -Working drawing -standard

Design -Cost estimate training specification

4. Measuring Metrology

5. - Rolling machine Operating training

Rolling
6. Beading -Beading machine with d/t die
7 -Welding machine -welding operation training -safety manual
Welding -Welding
operation manual
8. Fitting Press machine Operating training safety manual
9. Painting Air compressor -mixing ratio training -mixing ratio manual

10 Grinding -Grinding operational training -Grinding operational

manual
11. -proper tools
Lay out Scientific training
12. Promotion Awareness training System
13. Filling -finishing training
14. Sanding -portable sander

15. Plan Operational training Business plan manual

16. Inspection -Material inspection Training

17. Testing -Material Testing training Quality management

system

18. Research and Awareness training Information system

development

19 Twisting Metal twister machine

20 Man power Technical skill training

Part Eight

8.1 linkages between sectors

Industrial sector

Metal manufacturing/door and windows /

MINERAL ECONOMIC& infrastructure HEALTH TRADE S OCAL

መሰረተልማት

NO MINERAL ECONOMIC& HEALTH TRADE SOCAL Remark

infrastructure
1. Mining Road transport Anti rest Promotion Insurance
chemical company
2. Ore refining Telecommunication Treatment Market
linkage
3. ELPA Business
plan training

8.2 CAUSE AND EFFECT ANALYSIS

8.2.1 Production area observation gap Production area observation
Inadequate location choice Use Unsuitable material
Effect
Use poor productive material type
Effect Topography problems
Affects standard of the design Material shortage
Affects performance at field level Market nearness
Affects productivity need of door and window Labor availability
Knowledge &Skill gap Lack of awareness Access and availability Financial constraints Accessibility

Shortage of working area

Poor assessment of market
Shortage of training Shortage of skilled man power

Shortage of training materials Shortage of equipment

Loan shortages Poor business plan

Lack of interpreting of drawings

Poor motivation Poor extension

Participant sectors in this Gap
- Research institutions
- TVET institutions
- regional administrations
- local finance institutions
- MSEs
- NGOs

8.2.2 Preparation of work area gaps

Stock wastage material

Not create safe and suitable working area Effect Preparation of work area
Poor managing of Crosse section area
Un-suitableness for production of door and windows
Poor material handling system

Skill and knowledge constraints Material and equipment shortage

Access & availability market

Operation Costs and expenses

Availability
 Participants sectors in this gap

- MSE
- TVET institutions
- Research centers
- Local finance institutions
- NGOs

8.2.3 Selection of materials and tools gap

- Lack of read and interpretation
of drawing
- Lack of new technology
- Poor Preference
- Lack of awareness
- Unevenness
 Selection of materials
Effect
Lack of awareness

Material and equipment Costs and expenses

Attitude
shortage
Availability problem
Skill and knowledge
Access&availability in constraints Poor
market
extension
Lack of new technology High initial cost
Operation

Lack of training

Participants sectors in this gap Cure

- MSEs Gap
- TVET institutions Training and capacity Building
- Research centers Material and equipment shortage
- Local finance institutions Applying designs and prototypes nursery
- NGOs preparation
Skill and knowledge constraints
Enhance and develop indigenous
Costs &expenses materials and equipment

Lack of awareness Awareness creation and improving

extension approach
 8.2.4 Production management gaps

Reduce quality of door and windows product Production Management

Non-uniform production of door and windows Effect
Decrease number of production Skill & knowledge gap for prevention and identification of overall failures
Difficult to management
Affects stability of door and windows production
Increases degree of attack low by and poor quality door and windows production
Focusing on traditional one

Shortage of Training

Lack of Know-how to mang’t Additional cost

Lack of practical demonstration

Input Purchasing gaps
Availability of material

Tools and material gap

High initial cost
Participants sectors in this gap

- TVET institutions
- Research centers
- MSEs
- NGOs Gap
Training and capacity Building
Focusing on traditional one
Create awareness on the advantage of row spacing over the traditional one and nurse
Skill and knowledge constraints

High initial Lobar Develop designs suitable for nursery manag’t

 8.2.5 Transferring technology gaps

Effect
High wastage of material
Time consuming Transferring technology
High wastage of time
Affects establishment and uniformity
Hardness of field establishment
Delayed production
Low rate of development Transferring shock Skill and knowledge constraints
Yield reduction
Operation
Costs and expenses of transferring

Metabolic stress

Lack of training
Environmental stress
Availability
Time of transferring
High initial cost

Participants sectors in this gap

- MSEs Gap Cure
- TVET institutions Training and capacity Building
- Research centers Transferring shock
- Local finance institutions
- NGOs Skill and knowledge constraints Develop materials for transplanting

Costs &expenses Enhance and develop indigenous materials and equipment

 8.2.6 Production/processing gaps

Effect
Difficult to flow the producer
Missing utilization of material
Fluctuate the material usage Production/processing
Increases material and time wastage
Poor quality finishing
Decreases productivity

Material and equipment shortage Skill and knowledge constraints

Operation
Access&availabilityin market Costs and expenses

Lack of training
Lack of new technology
Availability

High initial cost

Participants sectors in this gap

- MSEs Gap Cure
- TVET institutions
- Research centers Training and capacity Building
Material and equipment shortage
- Local finance institutions
- NGOs Develop designs and prototypes for sowing
Skill and knowledge constraints

Planter costs &expenses Enhance and develop indigenous materials and equipment
 8.2.7 Handling and storing gaps

Effect
Reduces quality of products
Reduces market share
Increases rejections and wastages Handling and storage
Metabolic stress
Mechanical injury
Improper material handling

Material and equipment shortage Skill and knowledge constraints

Demand analysis
problems
Access&availability in market Costs and expenses Shortage of
trainings
Shortage of Training
Cost of materials and equipment
facility, materials and
Availability limitations skilled man power

Market flux
Participants sectors in this gap
- door and windows producers/providers
And processors
Gap Cure
- TVET institutions
- Research centers
Training and capacity Building
- Local finance institutions Material and equipment shortage
Develop designs and prototypes for preparation
Skill and knowledge constraints

Packaging & preservation costs &expenses Enhance and develop indigenous materials and equipments

Demand analysis problems

41
 8.2.8 Sale products/marketing gaps

Effect
Selling in local market Sale products/marketing
Low price
Low income
Limited product categories
Low return
Promotion problems
Material and equipment shortage Skill and knowledge constraints

Operation
Access&availability in market Costs and expenses

Lack of training
Lack of new technology
Availability

High initial cost

Participants sectors in this gap

- MSE Gap
Cure
- TVET institutions
- Research centers Training and capacity Building
Material and equipment shortage
- Local finance institutions
- NGOs Develop designs and prototypes
Skill and knowledge constraints

Costs &expenses Enhance and develop indigenous materials and equipments

Limited product categories

Promotion

42
PART Nine

CONCLUSION

Currently, the door and window producer manufacturer available in HAWASSA is the one that produce low quality. But the present project is modified
to produce high quality with short period of time. By doing this, production time will be reduced and the quality of the product also will be improved.

The project will have a significant contribution to the Micro and Small Enterprises which are found in and around Hawassa.

Recommendation

We(participants of the study) recommend;

 Occupational training related to value chain analysis should be given to those who participates technology production.
 Since this value chain analysis is done based on the gaps of the MSEs in Hawassa, the gaps may vary from place to place. so it may be revised
and up graded based on the gaps and demanded of the target group.
 Other un listed technologies related to the gaps in the activity based on the priority provided in this value chain may be made considering its
demand.
 Training resources (flash, CD, laptop, ETC…) should be organized from colleges TVET bureau to make the training effective.

43
PART Ten
10.1 ANNEX

SOME ABBRIVATION

 BOM ;- BILL OF MATERAILS

 R&D;- REASERCH AND DEVELOPMENT
 SWOT;- STRENGTH WEAKNESS OPPORTUNITY THREANT
 M/C;- MACHINE
 D/T;- DIFFERENT
 MSEs;- Micro and Small Enterprises

44
Questioner for manufacturer

Part one
Objective of the Questioner
Objective of this questioner is to achieve the second term of the 5 th Ethiopian growth and transformation by increasing productive and competitive MSEs which
transforms the country from agricultural to industrial leading economy by producing demanded technology. The technologies are obtained by surveying the demands
of the MSEs to increase productivity and income. Therefore, gap identification and technology selection is being done by participating actors of the transformation
(MSEs)
Part two
General information

 Name of enterprise _____________________________

 starting year __________________________________
 Address _____________________________________
 kebele ______________________________________
 type of business ______________________________
 sector ______________________________________
 level _________________________________________
 date _______________________________________

Part three

1. type of products made

1, ___________________________________

2, ___________________________________

3, _________________________________

2. Sequential producer used to produce the product

__________________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________________
______________________________________________________________________

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3. How much time does it take to produce the product
_______________________________________________________________________
4. Is there any shortage of tools, and machines in your enterprise to perform the above operation, list down if any?

______________________________________________________________________________________________________________________________________
________________________

5. Where do think that the operation or machines listed above are found?
_________________________________________________________________
6. Is there any market problem with your product or service? Write down the reason if any?
__________________________________________________________________________________________________________________________________
___________
7. List down where the tools that can improve your productivity in terms of safety, time and quantity are found?
_________________________________________________________________________________________________________________________________
8. List down your products why they are not sold even if they are highly demanded reasonably?
__________________________________________________________________________________________________________________________________
_______________
9. List down where the best experiences that can improve your productivity or service are found?
__________________________________________________________________________________________________________________________________
________________________
10. What type of transportation do you use to transport your products to the market?
__________________________________________________________________________________________________________________________________
_________
11. Please inform us if there is indigenes knowledge from older or experienced person that can in reach to our today’s technology?
__________________________________________________________________________________________________________________________________
_______________
12. Finally tell us if you have any suggestion or comment.
__________________________________________________________________________________________________________________________________
________________________

Thank you for your cooperation ||

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Questioner for suppliers
Part one

Objective of the questioner

Objective of this questioner is to achieve the second term of the 5 th Ethiopian growth and transformation by increasing productive and competitive MSEs which
transforms the country from agricultural to industrial leading economy by producing demanded technology. The technologies are obtained by surveying the demands
of the MSEs to increase productivity and income. Therefore, gap identification and technology selection is being done by participating actors of the transformation
(MSEs)
Part two

General information

 Name of enterprise ___________________________

 starting year ________________________________
 Address ____________________________________
 kebele ______________________________________
 type of business ______________________________
 sector ______________________________________
 level _______________________________________
 date _______________________________________

Part three
1. Does the raw material imported or domestic
1.1 Imported
1.2 Domestic

2. If the raw materials are imported, from which country? _____________________

3. If the raw materials are domestic, from which factory or enterprise? _____________________
4. What are the main raw materials to be sold in your business center?
1. __________________________
2. ___________________________
3. ___________________________
4. _____________________________

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 6.Who are the customers that use your raw materials?

1. __________________________
2. ___________________________
3. ___________________________

7.What is the financial system with your customer?

 payment in Cush 

 payment in loan

 payment by check

8.What is your comment on this business? _______________________________________________

Thank you for your cooperation ||

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10.2 REFERANCE
1. FERDRAL TVET DOCUMENT

2. QUESTIONNAIRES, INTERVIEW

3. WWW.ALIBABA .COM

4. WWW.DOLPHIN.COM

5. WWW.GOOGLE.COM

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