Value chain analysis of smallholder highland bamboo products: The case of Hula and Gumer districts, Ethiopia

The utilization of highland bamboo in Ethiopia is currently at a shallow level, despite its immense potential as a valuable non-timber forest product. Value chain analysis is a widely used method to assess business activities and recognize which activities are the most useful and can be improved to create a competitive advantage for a business. A comprehensive study was conducted to understand the value chain and identify opportunities and constraints. The data for the study were collected through surveys, interviews, and observations involving various stakeholders, such as producers, processors, traders, brokers, consumers, and other stakeholders, that influence the value chain. The analysis was undertaken following the combined analysis framework developed by the United Nations International Development Organization (UNIDO), making the market better for the poor (M4P), and Kaplinsky and Morris for value chain actors. In the Hula and Gumer districts selected for this study, 274 smallholder highland bamboo producers were randomly surveyed using a probability proportional to size sampling procedure. Additionally, other actors in the value chain were purposefully selected. The findings showed that key actors in the highland bamboo value chain were smallholder producers, brokers, wholesalers, processors, recreational house constructors, and consumers. Each actor contributed to adding value in different ways through form-type and place-type value-addition strategies. Among the five main channels selected, the manufacturing industry channel (Channel VII and VIII) generates the highest value for bamboo culms which was USD 3.836 per culm. Processors using modernized machines not only reduced processing costs but also enabled the handling of a larger volume of raw materials while ensuring a higher production output with extraordinary efficiency. This study suggests that it is necessary to empower actors by improving their awareness, establishing better linkages, and accessing information to make effective value addition and increase commercialization. In addition to this, this study’s results indicated that policymakers should focus on improving infrastructural access, such as roads and electric power supply, and providing treating machines, chemicals, and processing machines which are necessary for further improvements in the chain performance of bamboo commercialization. Finally, findings in the study suggested that shifting the chain from low-value to high-value addition, upgrading small artisanal processors to manufacturing units, and supporting highland bamboo processing industries enhance overall well-being of the country.