Value Chain Analysis of Potato (Solanum spp.): Evidence from Guagusa Shikudad District of Awi Zone, Amhara Region, Ethiopia

Abstract

Potato is a key global food security crop, contributing to income generation, employment, and nutrition for smallholder farmers. However, its development is hindered by limited adoption of improved technologies, weak bargaining power, low value addition, and unorganized markets. This study maps potato value chain actors, analyzes market structure, conduct, and performance, and identifies determinants of market supply. Using a mixed-methods approach, data were collected from 174 producers and 75 traders. Findings reveal 69% of producers use improved technologies, while only 37.93% practice value addition. Five market channels were identified, with a 32.07% market concentration. Processors achieved the highest profit margin (34.20%) through value addition. Key determinants of market supply include improved seeds, production volume, education, market information, and extension services, while livestock owning and family size negatively impacted supply. This study recommends coordinated efforts to promote technology adoption, value addition, and market organization to enhance benefits for all value chain actors.