Value Chain Analysis of Banana in Mizan Aman Town of Benchi Maji Zone, Southwest Ethiopia

Abstract

This study was aimed at analyzing value chain of banana in Mizan-Aman town, Bench Maji zone with specific objectives of describing important marketing channels and actors involved on banana value chain, dealing the determinant of supply of banana and identify constraints in value chain of the banana. The data were collected from both primary and secondary sources. The primary data for this study were collected through application of appropriate statistical procedures. The data were analyzed by using both descriptive and Econometric models. Accordingly, the value chain activities in the survey period were production, marketing and consumption. To identify factors affecting farm level marketable supply of banana, OLS regression analysis was employed. About 10 variables were hypothesized to affect farm level of marketable supply of banana in the study area. Age of respondent, experience, family size, education level of the household head, market information and distance to the market affects farm level marketable supply of banana positively and negatively. The study result exhibited also that banana producers are faced lack market, lack of cooperatives and low price of banana. The result revealed that banana passes through several intermediaries with little value being added before reaching the end users. Therefore, farmers are forced to capture a lower share of profit margin. The highest marketing cost is incurred by wholesalers and the highest market profit is shared by retailers. The value chain analysis revealed that the major actors in the area are producers, local collectors, wholesalers, retailers and consumers. The study showed that Input Suppliers, Improved infrastructure and strengthening the linkage/interaction among value chain actors is necessary for good marketing of banana.