Agri-food value chains appear to be the buzzword in recent development debates, frequently inrnconjunction with rural development promotion. A value chain analysis is required to gain anrnunderstanding that can be used to upgrade value chain activities. In spite of the policy optionsrnprovided by the government of Ethiopia, empirical study on the fruit value chain to designrnappropriate policies for improvements of the sector specifically, in the study areas is scanty.rnCognizant of this gap, the present study is initiated with the objectives of characterizing (mapping)rnactors involved in the fruits value chain; analyzing the market performance along the value chain;rnexploring the determinants of farmersâ€™ participation in the fruits value chain; and examining thernwelfare and food security effects of farmersâ€™ participation in the value chain in the Upper-Blue NilernBasin, North-Western Ethiopia, focusing on apple and mango crops. A random sampling techniquernwas used in selecting survey respondents. The sample includes producers, collectors, processors,rntraders, and consumers. A pre-tested survey questionnaire was used for data collection. Descriptivernstatistics, mapping, and market margins were used to achieve the first and second objectives. Forrnthe third objective, the double-hurdle model was applied. The fourth and fifth objectives werernaddressed using endogenous switching regression and propensity score matching, respectively. Thernstudy revealed that seedling suppliers, farmers, collectors, wholesalers, retailers, processors, andrnconsumers are among the key mango value chain actors. Seedling suppliers, farmers, collectors,rnretailers, and consumers are among the main apple value chain participants. In terms of large salesrnvolumes, a channel connecting mango producers to wholesalers via collectors was more efficient,rnwhereas a channel connecting apple producers to retailers via collectors was more efficient. Forrnvalue chain participants, margin analysis showed that the majority of gross marketing margin goesrnto traders in both value chains. This implies that the value chain for both apples and mangoes wasrnineffective due to poor integration and coordination, as well as insufficient support from institutionsrnin the study area. The governance structure of the apple and mango value chain is buyer-driven,rnwith little trust among different actors. Unlike other studies, this dissertation attempted to proposerna third type of value chain for developing countries such as Ethiopia known as the â€œmiddlemendriven value chainâ€ in addition to the producer and buyer-driven value chains. The study revealsrnthat the likelihood of a household being participating in the apple value chain goes up withrnhousehold head education level, frequency of extension contacts, experience, and membership inrnlocal cooperatives, while it goes down with disease and insect pest incidence and household size.rnAdditionally, mango plot size and membership in local cooperatives were found to increase thernlikelihood of mango value chain participation decisions. Similarly, level of participation in the applernvalue chain increases with education, mobile phone ownership, and extension contacts, whereasrnlevel of participation in the mango value chain decreases with distance to nearest market and agernsquared. Furthermore, the study investigates that as more apple and mango farmers join the valuernchain, their consumption expenditure rises while other factors remain constant. Similarly, the morernapple and mango households that participate in the fruit value chain, the higher the household foodrnintake and food security. In essence, policies and programs that support household capacity tornproduce surplus output, as well as the inclusion of small-scale farmers in more profitable valuernchains, could increase their participation and improve household welfare and food security. Overall,rnthis dissertation believes that having such first-hand knowledge of the apple and mango value chainsrnis essential to establishing better fruit development initiatives in Ethiopia.