Market chain analysis of potato and factors affecting market supply in West Gojam Zone, Ethiopia

Abstract

The study was conducted in South Achefer and Jabi Tehinan districts of West Gojam Zone with the objectives of identifying the major potato marketing channels, to analyze potato marketing cost and margins, and to examine determinants of producer’s potato supply to market. The study took a sample of 100 producers, 70 traders and 40 end consumers randomly. Both quantitative and qualitative data were collected and analyzed through marginal and econometrics analysis. In South Achefer district, producers, wholesalers, retailers and processors earn 11.44, 7.54, 16.85 and 64.17% share of profit margin, respectively. Whereas in Jabi Tehinan district, the percent shares of profit margin for producer, collector, retailers and processors was 26.35, 25.52, 19.13 and 29.01%, respectively. In Jabi Tehinan, regression analyses revealed that distance to nearest market centre (5%), owned ox number (10%), experience (5%), access to credit (10%), total amount of potato produced (1%) and market information (5%) were significant. In South Achefer district, total amount of potato produced and market information were found to be factors affecting supply of potato to the market at 1% probability level. Therefore, governmental and non-governmental organizations should take part in fulfilling the gap of different market chain actors through their intervention especially in term of market information. Key words: Determinants, district, market chain, marketing channels, potato.