65 percent of total average landholdings. The majority of the farmers produce improved maize varieties. After harvesting, stacking/ drying and shelling, the maize grains are sold by farmers to rural assemblers who in turn supply the woreda or zone traders. The zone traders then supply the wholesalers. Retailers and millers source the grain from wholesal- ers and sell it to consumers (Table 1). 

Post-harvest begins where production ends, that is at harvest. The highest level of quan- titative loss of 10.5 percent occurs in the production chain where harvesting and sub- sequent on-farm operations are done. On- farm storage is the critical loss point of the supply chain. (Table 1). Poor conditions of used bags and poor sanitation of grain stores predispose the grains to insects and rodents infestation which lead to 6.9 percent loss.

Losses that occur at the farmer’s level have a negative impact on the livelihoods of many smallholder maize farmers who live on the margin of food insecurity. Maize losses re- duce food availability at the household level where 80 percent of the produce is retained for consumption. Reduction in the volume that can be sold due to losses also trans- lates to reduced income. Furthermore, losses mean wastage in labour and inputs utilized in maize production that negatively impact the resource-poor farmers. 

On-farm storage is the most critical loss point at the farmer’s level. A loss of 6.9 percent is incurred due to poor packaging (use of old bags and inadequate storage conditions) that predispose maize grains to attack by insects, rodents and mould growth. With traditional storage, economic losses equivalent to 8.2 USD/year are incurred. A 75 percent reduction in losses, can be achieved through storage in metal silos, which is equivalent to savings of 6.15 USD per year. Metal silos (Figure 1), if properly managed, effectively protect stored grains from rodents, birds and moisture migration that results in mould growth in the grains. Smallholder farmers could benefit from higher grain output and improved quality. However, in the context of Ethiopia, it was found that owning one metal silo is not profitable for one farm household despite the reduction of losses (Table 2). Since an individual smallholder farmer cannot afford the cost of buying and operating a metal silo, the adoption of metal silos will be profitable if purchased by cooperative unions and private suppliers who can provide storage rental services to individuals or groups of farmers. Individual farmers can also make use of triple layer bags, such as PICS bags (hermetic bags) as an option, given their effectiveness in protecting grain from damage by storage insect pests. With a loss reduction of 75 percent, savings of 6.15 USD/year can be realized with the use of triple layer bags, generating a profitability of 2.65 USD/yr (Table 2).


