Value Chain Analysis of Enset in Kaffa, Sheka and Bench Sheko Zone, Southwest Ethiopia

Abstract

Kaffa, Sheka and Bench Sheko Zone in Southwest region of Ethiopia are known for enset farming. The purpose of this study was to analyse Enset value chain; market performance; identify the role of gender, identify factors influencing participation in the enset products market and marketed surplus; and identify factors affecting enset products value addition. Data were obtained from a sample of 657 enset producers, 30 consumers and 135 traders were selected using random sampling methods. Descriptive statistics and econometric models were used to analyze the data. Heckman’s two-stage and probit models were used to identify the determinants of enset products market participation and marketed surplus, and value additions respectively. Producers, collectors, wholesalers, retailers, and processors were found to be important enset products (kocho and bulla) market actors. Eight kocho and seven bulla marketing channels were identified in the study area with a major share of kocho marketed going through producer-wholesaler-retailer-consumer while that of bulla goes through producer-retailer-consumer. The highest total gross marketing margin of kocho was 77.14 in channel VIII while that of bulla was 44.44 in channel VI. Heckman’s two-stage selection model results showed that family size, level of education, farming experience, land allocation, livestock ownership and access to training had significantly influenced market participation decision while family size, level of education, farming experience, livestock ownership, access to transport, quantity kocho and bulla produced, off-farm income inverse Mill’s ratio (LAMBDA) influenced significantly the extent of marketed surplus. Factors that affected enset products value addition at farm level of the marketing chain were family size, labour force, total livestock unit, quantity of kocho and bulla produced, credit access, offfarm income, access to training and access to transport facility. Based on the findings of the study we suggested that the government and concerned stakeholders should focus on promoting improved enset variety, encouraging the use of labour saving technology, strengthening the existing social services, promoting farmers’ cooperatives, empowering women, improve market linkage and creating competitive market among chain actors