Enset Value Chain Analysis and its Determinants: The Case of Rural Households in Abeshge Woreda Gurage Zone, Ethiopia
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Date
2019-06
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Addis Ababa University
Abstract
The aim of this research was to investigate the Value Chain Analysis and its Determinants: The
Case of Rural Households in Abeshge Woreda Gurage Zone. Data was collected from primary
and secondary sources. Primary data for this survey was taken from two sample kebeles
where154 households randomly selected from farmer households, 5 collectors, 15 wholesalers, 8
consumers and 5 key informants. To analyze the data, descriptive statistics and econometric
models were used. The finding revealed that the production of Kocho and Bulla were used more
for consumption while the rest was sold. This finding indicates that Kocho and Bulla are the
staple food for the sampled kebeles. In addition, interview and observation results also showed
that the production of Kocho and Bulla declined because of disease that destroyed the plant.
The value chain analysis discovered that value chain actors in the sample kebeles were input
suppliers/producers, wholesalers, retailers and end users/consumers. But there was lack of
access to markets and roads, weak market information, lack of extension service and credit
facilitation also a constraint to the producer share. The total marketing and profit margin share
along the value chain actors (Producer, Wholesaler and Retailer). The findings indicate that
retailer is more profitable followed by the wholesale side of the production. Multiple linear
regressions also revealed that the market supply chain also increased because of the nearest
access to transportation, age of the producer and production of kocho and bulla which could
increase the amount of Kocho and Bulla. The Multivariate probit Model revealed that
producers’ likelihood of using the channels that maximize market outlet choice to get more profit
would have been appropriate. Therefore, Government interventions in terms of policy on Kocho
and Bulla value chain on marketing would help the producer get more profit. In the mean time,
lack of access roads to the market and weak linkage to agricultural credit facilitations, has
significantly affected the farmers to get profit and input supply. Hence, government has to create
proper policies that will increase production that will sustain the society as a whole and the
study area in particular, and this will support the value chains that need proper intervention to
encourage the actors along the chain.
Keywords: Value chain, Enset, Abeshge woreda, Multivariate Probit model, Market outlet
choice
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Keywords
Value chain, Enset, Abeshge woreda, Multivariate Probit model, Market outlet choice