Distributional Issues in Value Chains: The Case of Wheat Market in Arsi, Ethiopia.
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Date
2008-11
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A.A.U
Abstract
In Ethiopian where 85% of the population feed s on agriculture raising the fanners share out
of the retail value of their product contribute positively to the nations well being. But in
order to design policies that are deemed to boost farmer s' share, one need to know what
factors affect the share of farmers out of the retail value of their product. However there
are few work s on this area . This paper is an attempt to address this issue . The main
objective of the paper is first to map the distributional outcome and then to investigate and
examine factors that affects farmers hare out of the retail value of their product. The paper
uses 120 farmers form two districts hitosa and Tiyo in Aris zone. The papers take up a
value chain concept which has proven particularly useful to provide a key to understanding
the appropriation of the returns to agents in the chain . The results indicate that fanners sell
more than 50 % of their product without adding any value e to it. In addition to this value
addition was found to be one of the main determinant factors that affect farmer 's share in
the chain. Moreover financial access and infrastructural facility con tribute significantly to
farmer share . From the results the policy implications are straight. First government should
facilitate the establishment of fanner's cooperation with capabilities to process the raw
wheat in view of raising small fanners' benefit. In addition to this there is a need to invest
on the construction of feed roads that may facilitate framers' buying and selling activities in
local and regional market.
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Distributional Issues in Value Chains, the case of wheat market in Arsi