Potato Value Chain Analysis In The Case Of Dugda Woreda East Shoazone Oromia National Regional State Of Ethiopia

Potato is important for its contribution to food security and as source of cash incomernfor a large proportion of the rural households. However, enhancing potato farmers tornreach markets and actively engage in the potato value chain is a key issue needed inrnthe study area. This paper was aimed to identify value chains and their performance,rnfactors affecting marketed surplus and farmers’ choice of market channels usingrnsurvey data collected from randomly selected 118 farmers and from purposivelyrnselected 42 traders and 35 consumers. Descriptive analysis was used forrncharacterizing farmers, describing value chain and examining market performance.rnInput suppliers, farmers, collectors, wholesalers, retailers and consumers were mainrnvalue chain actors and governmental offices and NGOs were support servicernproviders of potato value chain in the study area. The chain is governed mainly byrnwholesalers with the assistance of brokers. Producers are price takers and hardlyrnnegotiate the price due to fear of post-harvest loss, in case the product is not sold.rnDistrict retailers and wholesalers were received the highest remuneration from potatornmarketed in the study area while central retailers and rural collectors took thernsmallest profits shares from potato value chain. Five market channels are identifiedrnfor potato in the study area. Total gross marketing margin (TGMM) is highest inrnchannel II and IV which was 53.78% and 53.5%, respectively and lowest in channelrnIII which was 34.24%. Producer’s share (GMMp) was highest in channel III whichrnaccount 65.76% from the total consumers‟ price and lowest in channel-II and IVrnwhich is 46.22% and 46.5, respectively. The cost led pricing approach dictates thatrnthe maximum retail price of potato from farmer to consumer in the addis abebarnmarket should be 888.21 through potato supply chain; even though the current actualrnretail price of potato is higher than MRP which is 950 birr per quintal. On the otherrnhand from the consumer’s point of what potato finally worth to them, the potato valuernchain analysis at addis abeba market revealed a maximum retail price of 600 birr perrnquintal on average, which is less than potato supply chain analysis ofrn888.21.Variables like quantity produced, value addition, distance to market, distancernto roads, non/off farm income, current price, potato market experience, sex of thernhousehold head, family size, and total livestock number (TLU) affected significantlyrnfarmer’s market channel choice decisions. Therefore, these variables require specialrnattention to increase farmer’s margin from potato production and marketing sornspecial focus need to be on these variables

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