Analysis of Fruits and Vegetables Profitability and Value Chain: The Case Study on Et Fruit

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Date

2011-04

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Addis Ababa University

Abstract

Fruits and Vegetable as a group of crops from the horticulture category have a very wide importance both as a source of food and health care. The consumption of onion, potato, banana & oranges has high-income elasticity of demand. Thus, increased demand for these crops is anti cipated with economic development, population growth and urban ization. Per capita consumption of fruits & vegetables in Ethiopia is currently very low when compared to other countries of the region and world. The study was initiated with the objectives of analyzing fruit and vegetable profitability and value chains on ET fruit. Specifically the study attempts to assess structure-integration -performance of fruit and vegetable marketing, analyze market supply chain and consumption. The study also analyzes profitabi lity of fruit and vegetable production and marketing and identifies constraints and opportunities in fru it and vegetable production and marketing. For this study, primary data were collected from 2 state farms by conducting interview, namely HOE and UAAEI for onion, potato, banana and orange production. Besides, one fruit and vegetable wholesaler/retailer (ET fruit) , 10 private retailers were also interviewed. Primary data were collected by survey method using a pre-tested questionnaire from 50 customers and secondary data were gathered from statistical bulletins. Time series panel data on market prices in ten spatial markets of Addis Ababa for the selected fruits & vegetables was used to investi gate market relationships. Similarly time series data of production of these vegetables was used for production estimates

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