Abstract
Southern Ethiopia is known with favorable environment for pineapple, coffee and many other horticultural crop Production. However, the practice has been facing a number of production and marketing constraints. The aim of the present study was therefore; identifying the value chain actors and their roles, mapping the value chain of pineapple production and marketing, and examining the determinants of market supply. Using purposive sampling technique, 105 households were selected from three representative peasant associations for in depth survey. Both primary and secondary data was collected using a combination of PRA tools. Descriptive statistics and econometric analysis using Ordinary Least Square (OLS) were used to analyze the collected data. The result revealed that both primary and secondary actors were involved in pineapple production and marketing. The percentage of market margin for producer, assembler, whole seller, retailer and processor actors were 9.41, 11.86, 18.33, 26.96 and 33.43%, respectively. Producer (34.20%), assembler (3.30%), whole seller (17.39%), retailer (26.78%) and processor (18.33%) were sharing percentage of profit margin in pineapple production. The result of the OLS regression analysis model indicated that market supply of pineapple was affected by wealthy status and duration of storage (p<0.05) and price (p<0.01), positively. Enhancing the local actors’ capacity through training, providing price and market information, credit and other processing facilities and institutional support could result in increasing production and steady supply of the pineapple products. Keywords: actors, pineapple producers, profit margin, value chain DOI : 10.7176/FSQM/84-01
Highlights
In sub-saharan African countries the domestic value chains of agricultural products are characterized by the provision of raw materials to the market without processing (Aoudji et al, 2012; Bates 1981) and poor competitiveness in the market (Bates 1981)
Materials and Methods 2.1 Description of the study area The study was conducted in Aleta Chuko district of Sidama zone, Southern Ethiopia, located at about 80 km south of regional capital, Hawassa (Fig. 1)
The present investigation revealed that the study area is highly populated with an average of 1.5 ha per household for average family members of 7.3 (Table 1)
Summary
In sub-saharan African countries the domestic value chains of agricultural products are characterized by the provision of raw materials to the market without processing (Aoudji et al, 2012; Bates 1981) and poor competitiveness in the market (Bates 1981). According to Mamo (2009) arguments small scale, dispersed and unorganized producers are unlikely to exploit market opportunities. Such producers cannot attain the necessary economies of scale and lack of confidence in negotiating product prices. About 2,399,566 tons of vegetables and fruits have been produced per annum in the previous year by public and private commercial farms, which are 2% less than the total crop production in the same years (EIA, 2012). Reports indicate that horticultural crop production in the country faces a number of challenges due to limited market outlets, little efforts in market linkage and poor market information among actors (Dereje, 2007; Kaleb, 2008)
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