Value Chain Analysis of Teff(Eragrostistef(Zucc): The Case of Jimma Arjo District, East Wollega Zone, Oromia Region, Ethiopia

Abstract

Teff plays a significant role in increasing food security and income for the poor farmers of Ethiopia. Even though teff is economically and socially important, its value chain have not yet been studied and documented in study area. This study attempted to analyze teff value chain in Jimma Arjo district of Eastern Wollega zone, Western Ethiopia with the specific objectives of identifying the role of actors and their respective function, analyzing determinants of teff supplied to the market and market outlet choice of teff producers. Two stages random sampling technique was employed to draw sample of 122 teff producers and purposively selected about 55 traders and 15 consumers. Both quantitative and qualitative data were collected from primary and secondary sources by using pretested structured questionnaire and checklists. Descriptive statistics, value chain analysis approach and econometric models were used to analyze data. Results showed that the main teff value chain actors in the study area were input suppliers, producers, local collectors, wholesalers, retailer and consumers. In the district there were no proper upgrading practices and governance system in teff value chain. The result of two stages least square indicated that land size, quantity of teff produced, credit service, and market distance influenced amount of teff supplied to market significantly. The Multivariate Probit model result indicated that likelihood to choose wholesalers outlet was significantly influenced by market distance, household size, volume of teff supplied and nonfarm income. The likelihood of choosing local collectors outlet was significantly influenced by volume of teff supplied, land size, nonfarm income and market distance. The likelihood of choosing retailers outlet was significantly influenced by land size, volume of teff supplied, household size and access to market information. The likelihood of choosing consumer outlet was significantly influenced by price of teff and nonfarm income. The predicted probability that teff producers choose local collectors, wholesalers, retailers and consumers outlets are 45%, 69.9%, 20.4%, and 74.6%, respectively. The joint probabilities of success and failure of the four variables also suggest that it would be unlikely for households to choose all market outlet simultaneously, for their likelihood to do so was only 7.7% while joint probability of failure were2.8%.The Kendall’s Coefficient of Concordance (W) analysis showed that 68.5% and 46.2% of farmers were in agreement with each other on ranking of constraints hindering teff production and marketing, respectively. Recommendations drawn from the study findings include the need to improve the input supply system, improving the governance and upgrading issues needed in the chain, training farmers, increasing quality of market information, improving productivity and volume sales of teff, constructing infrastructure, providing extension and credit services, strengthening the linkage among teff value chain actors and strengthening supportive institutions.