Abstract
This study analyzed value chain analysis of onion market in south Bench Woreda. The data used for the study were obtained from 118 randomly selected samples of households and 65 sample of trader in the study area. The data for the study was collected from both primary and secondary sources. For the primary data collection, questionnaires was designed and pre-tested based on the objective of the study in the study area. The questionnaires schedule was tested at the farm level on 5 randomly selected farm households. The study was employed both descriptive and econometric data analysis methods. Cobb-Douglas production function model was employed to analyze the determinants of onion production supplied to the market by onion producers. Results of econometric model showed that quantity of fertilizer utilized, distance from the nearest market, family size of house hold head, educational level of house hold head, farming experience and Credit access were significantly and positively determined the quantity of onion supplied to the market. The results suggest that these significant variable need to be promoted to boost the amount of the onion market supply. In order to increase the productivity of onion there is need of public, private, research center and farmer themselves working together so as to increase access and disease resistance seed verity. Keywords: Onion Value Chain Analysis, Marketing Channel, Cobb Douglas Production Function Model, South Bench Woreda. DOI: 10.7176/DCS/11-8-02 Publication date: October 31 st 2021
Highlights
In Less Developed Countries (LDCs) in general and Sub-Saharan Africa (SSA) in particular, economic policy highly depended on agriculture
Where Total gross marketing margin (TGMM) is the total gross marketing margin, it is useful to introduce the idea of farmer portion or producer gross marketing margin, which is the share of price paid by consumer that goes to the producer
The primary data was collected from onion producers and trader using questionnaire and focus group discussion with key informant and Secondary source of data was collected from published article and unpublished reports of different level of agricultural bureau
Summary
In Less Developed Countries (LDCs) in general and Sub-Saharan Africa (SSA) in particular, economic policy highly depended on agriculture. Agriculture is Ethiopia’s most important sector, basis for the country’s food security and the livelihoods of nearly 85% of its people. It holds about 50% of the Gross Domestic Product (GDP), 90% of the total export revenue, 85% employment of the country’s labor force and it accounts 70% of raw materials requirement of the country’s industries [2], and the engine for the country’s Agriculture Development Led Industrialization (ADLI) strategy. Ethiopia has variety of vegetable crops, grown in different agro ecological zone produced through commercial as well as small holder farmer as both source of income as well as a sustainable food security [3]. Smallholder vegetable farms were based on low input- output production systems, use of improved seeds, planting material of high yielding varieties and other inputs such as fertilizer, technical training and extension services on improved crop husbandry techniques are not available a result average productivity levels are low in the small scale farming sector [4]
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