Value Chain Analysis of Enset (Ensete ventricosum) in Hadiya Zone, Southern Ethiopia

Value Chain Analysis of Enset (Ensete ventricosum) in Hadiya Zone, Southern Ethiopia

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Title: Value Chain Analysis of Enset (Ensete ventricosum) in Hadiya Zone, Southern Ethiopia
Author: Nuri, Lefebo Toramo; Dr. Jema, Haji
Abstract: Hadiya zone in southern region of Ethiopia is known for enset farming. However, lower production and productivity, and inefficiencies in the marketing chain were mentioned the major problems constraining the potential benefits from the sector. The purpose of this study was, therefore, to analyze enset products market performance and map the value chain for enset products; identify factors influencing participation in the enset products market and marketed surplus; identify factors affecting enset farmers’ market outlet choices; identify factors affecting enset products value addition at different levels of the marketing chain; identify factors affecting enset product consumption and test whether enset product markets are cointegrated or not. Data were obtained from a sample of 398 enset producers, 240 consumers, 353 traders and 90 hotel and/or restaurant owners selected using random sampling methods. Descriptive statistics and econometric models were used to analyze the data. Heckman’s two-stage, multivariate probit and OLS models were used to identify the determinants of enset products market participation and marketed surplus, market outlet choices, value additions and consumption, respectively. Error correction model was used to test whether enset product markets are cointegrated or not. Producers, collectors, wholesalers, retailers, and hotels/restaurants owners were found to be important enset products (kocho and bulla) market actors. Descriptive results show that farmers capture a lower share of the marketing surplus while they incur the highest marketing cost. Moreover, results show that of the sampled enset producer households, 68% were market participants while 32% were not. Heckman’s two-stage selection model results showed that age, sex, market information, availability of labour, non/off-farm income, perception about price, quantity of kocho and bulla produced, livestock holding had significantly influenced market participation decision while age, sex, livestock holding, perception about price, availability of labour, quantity of kocho and bulla produced, extension and inverse Mill’s ratio (LAMBDA) influenced significantly the extent of marketed surplus. Multivariate probit results showed that the probability to choose collectors, wholesalers, retailers, hotels/restaurants and consumers xix market outlets were significantly affected by age, sex, post-harvest value addition, distance to the nearest market, market information, availability of labor, kocho and bulla output, access to credit, owning transport facility, education level of the household head, land allocated to enset, non/off-farm income and perception of bulla and kocho price. Factors that affected enset products value addition at farm level of the marketing chain were age, sex, availability of labour, livestock holding, experience, quantity of enset produced, size of landholding, access to credit and at traders level value addition affected by age, sex, transport facilities, education, working capital, credit service, access to market information. Age, sex, price of enset product, quality of bulla and kocho, package of enset product, availability of enset product, income and town dummy affected consumption of enset products. The results of vector error correction model and Johansen co-integration for the long-run relation showed that terminal and regional markets of bulla are not integrated in the short-run but integrated in the long-run. Based on the findings of the study we suggest that the government and concerned stakeholders should focus on promoting improved enset variety, encouraging the use of labour saving technology, strengthening the existing social services, promoting farmers’ cooperatives, empowering women, strengthening rural urban infrastructure, creatingcompetitive market and availing market information services.
Description: 251p.
URI: http://hdl.handle.net/123456789/3025
Date: 2016-03


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