Enset (Ensete Ventricosoum) Value Chain in Dawuro Zone, Southern Ethiopia

Abstract

This study was conducted in Dawuro zone southern part of Ethiopia with aim of analyzing enset value chain with specifi c objectives of identifying actors and their functions along the value chain, examine the share of benefi ts along 'enset' value chain, analyze factor affecting market participation and outlet choice of producer. The multi-stage sampling method was employed to select representative producers. The data were collected from both primary and secondary sources. Primary data was collected from 152 producers' 57 traders and 66 consumers, respectively. While secondary data were collected from published and unpublished documents. Descriptive statistics, econometric models of Tobit regression and multivariate probit methods were used to analyze the data using STATA software. Participation and level of market participation were used as a dependent variable to analyze determinants of enset market participation. Market outlet choice was used as a dependent variable to investigate factor affecting outlet choice of the producer. The fi nding of the study revealed that major actors of the value chain are, input suppliers, enablers, enset producers, local collectors, wholesalers, retailers, and consumers. The performance of actors in value chain emphasized that about 26 % kocho and 25.95% 'bulla' profi t margin shared by producers. Similarly, local collectors, wholesaler, and retailers have shared 27%, 22% and 25.08% of kocho; and 25.32%, 22.15% and 26.5% share of bulla margin respectively. Retailers got a high share of profi t 26.5% from bulla. Moreover, local collectors get 27% share of profi t from 'kocho'. However, farmers have the lowest share of profi t margin (26%) since local collectors and wholesalers govern the chain. the econometric result revealed that distance to nearest market at 10%, family size10% and incidence of the disease at 5% determined the probability of farmer's market participation negatively and signifi cantly. Education level 1%, quantity produced at 1%, consumer preference at 1%, transport facility at 1% and Price at 1% is determining the market participation of the producer positively and signifi cantly. The result of multivariate probit model indicated that the outlet choices have signifi cantly infl uenced by age of producer, education level, and distances to market, extension contact, packing animal owner, labor availability, output produced and price of the products. Moreover, the model result indicated that the predicted probability of choosing direct-consumers outlet was (29%) which is relatively lower than collectors (44%) retailers (38%) and wholesaler outlets (69%), since they face constraints immediately to get direct consumers, the probabilities of producers jointly to choose and not to choose four outlets were 2.29% and 5.43% respectively. The Wald χ2 test value of 112.64, which is signifi cant at 1% signifi cance level indicating that separate estimation of choice of four outlets is biased, and the decisions to choose the four outlets are interdependent and simultaneous. Therefore, collective efforts required motivation of extension agents and linking actors with the market are recommended to increase value chain of enset product in the study area.