Gerezgiher, Alemseged PhDMossie, Mengistie2021-12-202023-11-182021-12-202023-11-182021-06http://etd.aau.edu.et/handle/12345678/29358Agri-food value chains appear to be the buzzword in recent development debates, frequently in conjunction with rural development promotion. A value chain analysis is required to gain an understanding that can be used to upgrade value chain activities. In spite of the policy options provided by the government of Ethiopia, empirical study on the fruit value chain to design appropriate policies for improvements of the sector specifically, in the study areas is scanty. Cognizant of this gap, the present study is initiated with the objectives of characterizing (mapping) actors involved in the fruits value chain; analyzing the market performance along the value chain; exploring the determinants of farmers’ participation in the fruits value chain; and examining the welfare and food security effects of farmers’ participation in the value chain in the Upper-Blue Nile Basin, North-Western Ethiopia, focusing on apple and mango crops. A random sampling technique was used in selecting survey respondents. The sample includes producers, collectors, processors, traders, and consumers. A pre-tested survey questionnaire was used for data collection. Descriptive statistics, mapping, and market margins were used to achieve the first and second objectives. For the third objective, the double-hurdle model was applied. The fourth and fifth objectives were addressed using endogenous switching regression and propensity score matching, respectively. The study revealed that seedling suppliers, farmers, collectors, wholesalers, retailers, processors, and consumers are among the key mango value chain actors. Seedling suppliers, farmers, collectors, retailers, and consumers are among the main apple value chain participants. In terms of large sales volumes, a channel connecting mango producers to wholesalers via collectors was more efficient, whereas a channel connecting apple producers to retailers via collectors was more efficient. For value chain participants, margin analysis showed that the majority of gross marketing margin goes to traders in both value chains. This implies that the value chain for both apples and mangoes was ineffective due to poor integration and coordination, as well as insufficient support from institutions in the study area. The governance structure of the apple and mango value chain is buyer-driven, with little trust among different actors. Unlike other studies, this dissertation attempted to propose a third type of value chain for developing countries such as Ethiopia known as the “middlemendriven value chain” in addition to the producer and buyer-driven value chains. The study reveals that the likelihood of a household being participating in the apple value chain goes up with household head education level, frequency of extension contacts, experience, and membership in local cooperatives, while it goes down with disease and insect pest incidence and household size. Additionally, mango plot size and membership in local cooperatives were found to increase the likelihood of mango value chain participation decisions. Similarly, level of participation in the apple value chain increases with education, mobile phone ownership, and extension contacts, whereas level of participation in the mango value chain decreases with distance to nearest market and age squared. Furthermore, the study investigates that as more apple and mango farmers join the value chain, their consumption expenditure rises while other factors remain constant. Similarly, the more apple and mango households that participate in the fruit value chain, the higher the household food intake and food security. In essence, policies and programs that support household capacity to produce surplus output, as well as the inclusion of small-scale farmers in more profitable value chains, could increase their participation and improve household welfare and food security. Overall, this dissertation believes that having such first-hand knowledge of the apple and mango value chains is essential to establishing better fruit development initiatives in Ethiopia.enConsumption expenditure, double hurdle model, endogenous switching regression, Ethiopia, fruit value chain, household food intake, welfare, instrumental variable, mapping, marketing margin, participation, small-scale farmerThesis