The Wheat Value Chain and Food Security in Arsi Zone, Oromia National Regional State, Ethiopia

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Addis Abeba Universty


The value chain is considered as one way out of poverty and ensuring foods security status of smallholder farmers in Ethiopia. The main objective of this study is to assess the wheat value chain and its role in food security in Arsi Zone, Oromia National Regional State, with specific attention to identify and map actors and activities, marketing margins, constraints and opportunities, marketing outlet choice determinants, rural household food security and the role of wheat value chain to ensure food security status.To achieve the intended outcomes the study uses both primary and secondary data collected through questionnaires, interviews, FGD, and desk review from a total of 336 randomly selected households. A multi-stage sampling procedure was used to select the sample smallholder farmers for the study. A purposive sampling technique was used to select sample for FGD and interview. Household sample survey (questionnaires), interview, focus group and field observation were the main tools of generating primary data. Secondary data were obtained from a range of governmental organizations of which the most important ones were zonal and woreda level agricultural and rural development office. To analyze the data,, different statistical tools such as percentages, tables, frequency distribution were used to assess the socio-economic and demographic characteristics of the households, resource ownerships, SWOT analysis of wheat value chain, the concentration ratio (CR4) to identify market structure and independent t-test to assess the difference in the wheat production between male and female headed households, vale chain mapping to identify and map actors and activities in the wheat value chain, household food balance model, dietary diversity, copping strategies to assess the food security status of the households, one-way ANOVA and post hoc tests were used to identify the dietary energy availability of the households among different kebeles, multinomial logistic regression to identify the determinants of market outlet choice. The result of the study reveals that the actors in the wheat value chain are input suppliers, producers, brokers, wholesalers, processors, traders, and consumers. Whereas the supporting actors are development agents, office of agriculture and rural development, cooperatives/unions, trade and industry office, and financial/credit institutions. The direct link between farmers and processors were very weak or low. The price was set by buyers along the chain and thus, the governance along the chain was buyer-driven. The market along the chain was inefficient and imperfect. The daily average percapita food availability obtained from Household Food Balance Model was 1743.21 which is far from nationally recommended 2100kcal. Likewise, the result from the household dietary diversity score reveal that the domination of monotonous dietary for the household in the study area and the coping strategy index tells us the presence of moderate to severe food insecurity.The result from the multinomial logistic regression indicate that among the ten explanatory variables included in the model seven of them were statistically significant at 1%, 5% and 10%. Those factors significantly affecting wheat producers market outlet vii choices were sex, age, education, year of participation, nearby market, nearby road and quantity produced. Farmers in the study area encounter marketing problem during harvesting seasons which accommodate the cost of production and create profit. Likewise, the well function of wheat value chain enhances the food security status of the poor in increasing their production and productivity, and generating income which increases their economic capacity. Therefore, the study recommends based on the result that the issue of link between producers and processors, marketing, access to credit, and cost of inputs must receive attention to improve the livelihood of the farmers. The issue of food in/security also should receive attention from the government, donors and other concerned bodies to improve the household level food security status. Likewise strengthening education, expansion of road infrastructure, telecom, and access to credit which promote farmers profitable market outlet choices in one hand and increases the production and productivity of wheat in another way should need consideration from stakeholders. Moreover, government and other stakeholder should create effective and efficient market which benefit the farmers on one hand and strengthening the well functioning of value chain which increases the participation of the farmers in the chain.



Value chain, Food in/security, Wheat, Market outlet, Multinomial logistic model, HDD, coping strategy, Arsi, Oromia