Value Chain Analysis of Groundnut (eBook)

Academic Paper from the year 2019 in the subject Agrarian Studies, grade: Good, Bahir Dar University (College of Agriculture and Environmental Science), course: Agricultural economics, language: English, abstract: This study was aimed at analyzing value chain of Groundnut in Pawi Woreda, Metekel Zone, Beni-shangul Gumuz Region with specific objectives of identifying groundnut value chain and examining the performance of actors in the chain; analyzing the determinants of groundnut supply to the market in the study area; and identifying and map marketing channels. The data were collected from both primary and secondary sources. The primary data for this study were collected from 155 farmers, 30 traders and 25 consumers through using questionnaires.

Descriptive statistics and Econometrics models were used to analyze the collected data. Results show that the main groundnut value chain actors in the study area groundnut producers/farmer, input suppliers, local assembler, wholesalers, retailers, Processers and consumers. It is also found out that groundnut passes through several intermediaries with little value being added before reaching the end users. The chain is governed by wholesalers and Processers who have capital advantage over the other chain actors. Therefore, farmers are forced to capture a lower share of profit margin.

The result of OLS regression model indicated that marketable supply is significantly affected by sex of household head, age of household head, agricultural extension service, owner ship of transport facility, distance of the nearest market and quantity of groundnut produced. Therefore, policy aiming at increasing farmers’ access to modern inputs, developing and improving infrastructure, gender consideration, and improving extension system are recommended to accelerate the chain’s development.