Value Chain Analysis of Head Cabbage: The Case of Kofele and Kore Districts in West Arsi Zone, Oromia National Regional State, Ethiopia

Abstract

Cabbage is highly nutritious, and it is an economically important vegetable in Ethiopia and one of the most widely cultivated in West Arsi zone especially at Kofale and Kore districts. The study was aimed to analysis head cabbage value chain in Kofale and Kore districts with the specific objectives of identifying head cabbage value chain actors and examining the performance of actors in the chain in the study area. Data were collected from both primary and secondary sources. The primary data were generated by household survey using a pre-tested structured questionnaire and key informant interview using checklists. The data were collected from 120 farmers, 50 traders and 50 consumers and analyzed using STATA software. Value chain actors of head cabbage identified in the study area includes input suppliers, producers, rural collectors, brokers, wholesalers, retailers, and consumers. Five market channels were identified. The highest total gross margins were 79.28% in channel II. The highest gross marketing margin of producers markets channels are 85.56% in channel IV. From total quantity of head cabbage produced only 33.48% supplied to the market in the study area. Policy implications drawn from the study findings include the need to improve farmers’ knowledge and experience on head cabbage production and marketing, encouraging adult education through extension service, improving land allocated for head cabbage, improving productivity and volume sales of head cabbage, improving market information access, expanding accessibility of market infrastructure and strengthening supportive institutions like credit access are recommended. In addition to this the study suggests that it shall be better to improve the farmers’ market margins from collectors and wholesalers by strengthening farmers-traders linkage through reducing brokers’ exploitation and solving related production and marketing problems in the study area.

Keywords: Value chain analysis, Head cabbage, Marketing margin, Market Performance, Ordinary least square model, and Kofele and Kore districts.

DOI: 10.7176/JAAS/52-05