The status of eucalypt products’ trade in western Gurage watersheds and its contribution to construction industry in rural areas and urban centers

Abstract

A marketing channel is a marketing process that performs several functions by bridging the gap between production and consumption. The analysis of marketing channels provides a systematic knowledge of the flow of goods or services from their production areas to the final market or end-users. The information on eucalypt products’ trade in the study area and the country is vacant prior to this study and it will fill the research gap in this regard. The specific objectives were to assess the trend of eucalypt trade and to examine its contribution to the construction industry in rural areas and urban centers. The study employed the purposive sampling method. The main reason for selecting this sampling method is to select well-experienced eucalypt traders and to avoid the inclusion of non-eucalypt tree farmers and to keep the validity of the representative samples (to cover large villages) Focus group discussions, key informant interviews, and critical; observations are the major tools of data collection. The result shows that eucalypt products' trade (marketing channel) is accelerating in the study area due to two reasons. Firstly, attractive markets demand due to booming constriction in urban centers within and out of the study area. Secondly, asbestos and furniture factories which are found mainly in Addis Ababa are the next destinations. These destinations particularly those located out of the study area purchase products from the third suppliers (their adjacent eucalypt traders). Hence the first suppliers (farmers) sell to the second suppliers (local towns' eucalypt traders) and finally, these agents sell to the third suppliers (major towns' eucalypt traders). Eucalypt products are one of the sources of tax revenue to the Zone next to chat. The tax stations found in various parts of the woredas are busy mainly in controlling and taxing these two products. Farmers benefited significantly by selling poles of various stages to urban–rural areas and centers. To sustain the market facility and thereby benefits from eucalypt trade, eucalypt-related factories should be established in the areas. Households have to direct sales to the end-users to avoid unnecessary price deflation by middlemen.