ISSN 2375-0693
African Journal of Agricultural Economics and Rural Development ISSN: 2375-0693 Vol. 5 (1), pp. 512-524, January, 2017. © International Scholars Journals
Full Length Research Paper
Value chain analysis of onion: the case of Ejere district, West Shoa zone, Oromia national regional state of Ethiopia
Addisu Hailu*, Lemma Zemedu and Kindie Getnet
Oromia Agricultural Research Institute, Haro Sebu Agricultural Research Center.
E-mail: [email protected]
Received 11 October, 2016; Revised 07 November, 2016; Accepted 09 November, 2016 and Published 24 January, 2017
Abstract
This research attempted to analyze value chain of onion in Ejere district. Onion plays a significant role in increasing food security and income for the poor farmers of Ethiopia. Data for the study were collected from both primary and secondary sources. The primary data were generated by household survey using a pre-tested structured questionnaire and key informant interview using checklists. The data were collected from 85 farmers, 30 traders and 35 consumers and analyzed using STATA software. Onion value chain actors identified in the study include input suppliers, producers, rural collectors, brokers, retailers, wholesalers, processors and consumers.Producers are price takers and hardly negotiate the price due to fear of post-harvest loss, in case the product is not sold. Six market channels of onionwere identified during survey year. The highest total gross margin is 32.55% in channel II for onion.The highest gross marketing margin of producers in onion markets channels is 72.84%. Policy implications drawn from the study findings include the need to improve the input supply system,improving farmers’ knowledge and experience on onion production,strengthening the linkage/interaction among onion value chain actors,expanding accessibility of market infrastructure and strengthening supportive institutions.
Keywords: Value chain analysis,Market channel,Onion,Actors, Marketing margin, Ejere.
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Author(s) retain the copyright of this article.
Full Length Research Paper
Value chain analysis of onion: the case of Ejere district, West Shoa zone, Oromia national regional state of Ethiopia
Addisu Hailu*, Lemma Zemeduand Kindie Getnet
Oromia Agricultural Research Institute, Haro Sebu Agricultural Research Center.
Received 11 October, 2016; Revised 07 November, 2016; Accepted 09 November, 2016 and Published 24 January, 2017
This research attempted to analyze value chain of onion in Ejere district. Onion plays a significant role in increasing food security and income for the poor farmers of Ethiopia. Data for the study were collected from both primary and secondary sources. The primary data were generated by household survey using a pre-tested structured questionnaire and key informant interview using checklists. The data were collected from 85 farmers, 30 traders and 35 consumers and analyzed using STATA software. Onion value chain actors identified in the study include input suppliers, producers, rural collectors, brokers, retailers, wholesalers, processors and consumers.Producers are price takers and hardly negotiate the price due to fear of post-harvest loss, in case the product is not sold. Six market channels of onionwere identified during survey year. The highest total gross margin is 32.55% in channel II for onion.The highest gross marketing margin of producers in onion markets channels is 72.84%. Policy implications drawn from the study findings include the need to improve the input supply system,improving farmers’ knowledge and experience on onion production,strengthening the linkage/interaction among onion value chain actors,expanding accessibility of market infrastructure and strengthening supportive institutions.
Keywords: Value chain analysis,Market channel,Onion,Actors, Marketing margin, Ejere.