Analysis of the Charcoal Market Chain in Northwest Ethiopia

Abstract

Understanding the market chain of charcoal in Ethiopia and other countries in sub-Saharan-Africa, and implementing evidence-based recommendations can improve the livelihoods of all stakeholders in the value chain. This study was initiated to identify the marketing channels of charcoal and the major factors influencing its market supply in Fagita Lekoma district, Northwest Ethiopia. Results of multiple regression analyses revealed that producers, brokers, local collectors, wholesalers, retailers, and consumers are the main actors. The most important channel starts from producers and then involves brokers as an intermediary and directs into the out of region market. Retailers had the largest net profit margin. Age and educational level of household heads, price, and post-harvest value addition were significant factors that influence the market supply of charcoal. The major opportunities of charcoal marketing were the growing demand for charcoal, and adequate supply of labor; whereas, the major constraints were lack of government support, storage problems, problems of government policy, and lack of access to credit. The study identified the need for policy interventions by the Government to improve the sustainable development of charcoal production.