Value chain analysis of fruits: The case of mango and avocado producing smallholder farmers in Gurage Zone, Ethiopia

The study was aimed to analyze avocado and mango value chains actors and identify factors that determine avocado and mango market supply in the selected area of Gurage zone. A total of 259 avocado and mango producers were selected through three-stage sampling technique and 151 traders from different level were used to collect primary data using questionnaire and semi-structured interview. Descriptive and econometrics method of analysis were applied for analysis. Value chain approach analysis result revealed that input suppliers, avocado and mango producer, collectors, wholesalers, retailers, and consumers were the main actors in avocado and mango value chain. The profitability and gross marketing margin approach of market analysis showed that wholesalers received the highest marketing margin (34.62%) and highest profit share (36.75%), while producers received the least marketing margins (15.17%) from avocado and mango trade. Generally, all market participants were operating at profitable level, but producers were relatively disadvantaged from the market as they received lowest share from consumers’ price. Moreover, sex of household, land allocated to mango, market distance, farming experience, extension service, market price, and family labor determined mango market supply. Likewise, education level of household, market distance, farm experience, extension service, and family labor affected market supply of avocado. Accordingly, market performance of avocado and mango has shown that producers were relatively disadvantaged and various determinants contributed to reduced market supply of mango and avocado. Therefore, strengthening of extension service and education of farmers, efficient use of family labor, and improvement of farmers’ experience and infrastructure is recommended. Key words: Avocado, mango, value chain.