Value chain analysis of potato in Farta District of South Gondar Zone, Amhara National Regional State of Ethiopia

Abstract

Potatoes are the world's most important root and tuber crop. It is grown in over 125 countries and consumed by over a billion people daily. Millions of people in impoverished countries rely on potatoes product to their survival. Today, developing countries are the world's major producers and distributors of potatoes and potato products. Potato can be effective produce for allowing smallholder families to achieve their food security. Ethiopia has probably the maximum prospective country for potato production. However, in Ethiopia, various factors influence potato production and commercialization. It is the main tuber crop produced in Farta District. Potato production and value chain status are not studied well. Hence the main aim of this study was to evaluate the value chains of potatoes in the Farta district, Ethiopia. 123 sample potato farmers were chosen using a two-stage random sampling technique in four kebeles. Descriptive, inferential, value chain approach and econometrics analysis were employed. In addition, Heckman's two-stage selection econometrics model was employed to analyze the determinants of potato market participation and sales quantity. Producers, traders, chain supports, chain enablers, and final consumers were the main value chain actors for potato in the study area. Wholesalers control the potato value chain due to their finances advantage. Probit model estimation result provides that: distance to the nearby market, family size, oxen owned by farmers, market information, land size allocated for potato production, and quantity of inorganic fertilizer were the significant variables affecting the decision to market participation positively except family size. The OLS estimation result provides that: the education level of the farmers, farming experience, the number of extension contact, the land size allocated for potatoes, and the quantity of inorganic fertilizer is the significant variables influencing the amount of potato market supply positively. The main constraints for potato production and commercialization in study area were: Shortage of improved seed, lack of capacity building training to the post-harvest management approach, price fluctuation, shortage of market information, absence of policy framework in price-setting strategy was produced and marketing constraints of potatoes. Therefore, the study suggests that; increasing access to farm inputs, introducing new and improved crop varieties, establishing suitable post-harvest management facilities. In addition, follow up misconduct practice for price-setting strategies, strengthening market information service, facilitating conditions that can promote the smallholder farmers for participating in the market and minimize those constraints which impede the complete value chain in potato production and development.