Is banana value chain in East Africa sustainable? Evidence from Ethiopia

Abstract

Banana is an essential commercial fruit for smallholder farmers in East Africa including Ethiopia. It is also lifeblood of the majority of the farmers in Arba Minch district of Ethiopia. However, this sector is experiencing many constraints with limited investment on sustainable value chain management. Thus, this study aims to examine the sustainability performance assessment of the banana value chain by comparing and analyzing 25 attributes through triple bottom-line indicators. The critical aspects of the qualitative data were analyzed using Sustainability Assessment of Food and Agriculture Systems version 3.0 at Ethiopian context. The results show that banana product flow from the farmer and ends with the consumer through three market channels which link farmers directly with rural retailers, traveling traders, and farmer cooperatives. Largest volume of banana was sold through the traveling trader channel while the smallest volume was sold via the rural retailer channels. The banana payment flow begins from consumers and ends with input suppliers. Farmers have limited access to alternative markets for their banana products, but wholesalers have many connections and marketing options across the country. The results of the banana value chain sustainability assessment also reveal that the economic, social, and environmental indicators have moderate sustainability performance in the study area. The value of the Cronbach’s alpha coefficient was 0.7993 which shows that the five-point scale items of the experts’ judgment on the sustainability of banana value chain are consistent and reliable. The chain has several advantages in terms of profitability, emission of air pollutants, employment, and constraints in terms of coordination, profit margin, value share, market diversity, transportation, product and market information, safety and hygiene, and waste management. Thus, Government and non-governmental organizations give due attention towards the sustainable banana value chain. • Ethiopia is one of major banana producing country in East Africa. • The banana product flow starts from producers and ends with consumers. • Farmers have limited access to alternative markets for their Banana products in Ethiopia. • Banana value chain has moderate sustainability performance in Ethiopia.