Potato Value Chain Analysis in Highland of Guji Zone, Southern Oromia, Ethiopia

Abstract

: Potato plays a significant role in the national system and channels differ for different areas. Production of potato by smallholder farmers of the in highland parts of Guji zone districts are mainly for house consumption and market which is the most important and widely known cash crop of the area but there was lack of properly functioning marketing system and this often resulted in lower producers’ price. Therefore, this study focused on identifying potato market chain actors and their channels and factors that affect the volume of potato market. The target population was 14547 household farmers of which 141 producer households were selected using simple random sampling ad 24 traders and 13 consumers were selected purposively. Data were collected from both primary and secondary sources. Secondary data were gathered from district agriculture and rural development offices and trade and industry offices. Both descriptive and econometric analyses were employed for data analysis. The study indicated that, out of the total potato produced in 20120/21 cropping season of 6538 quintal, 89.8% of the product was supplied to the market in the study area. The result showed that about six marketing channels were identified in transferring 5897 quintals of potato, where, 38.92%, 26.13%, 11.2% and 23.75% were sold to wholesaler, retailers, collectors and consumers respectively. Result of a multiple linear regression model indicated that Age, potato production experience, amount consumed, quantity of potato produced, information access, off farm income and credit access were variables significantly affected volume of potato supplied to market in the study area. Production constraints of shortage of improved seed supply, disease and credit availability and marketing constrains of low price, and poor linkage with actors and lower consumer demand were identified. Therefore, improving seed supply problem, cooperative management, strengthening market information delivery system, post-harvest potato handling are intervention needed to boast potato production and marketing in the study area.