Abstract:
This study aimed at analyzing value chain of sesame in Gimbi woreda of Oromia National
Regional State with specific objectives of identifying sesame value chain and examining the
performance of actors in the chain; analyzing the determinants of sesame supply to the
market; and identifying marketing channels and factors affecting market outlet choice
decisions of farm households. The data were collected from primary and secondary sources.
The primary data were collected from randomly selected 127 farmers and 17 traders.
Descriptive statistics and econometric models were used to analyze the data. To identify
determinants of sesame supply to the market and factors affecting market outlet choice
decision of sesame producers, multiple linear regression and multivariate probit models were
used respectively. The value chain analysis revealed that the major actors in the woreda are
sesame producers, collectors, cooperatives, wholesalers and exporters. The result of the
multiple regression model indicated that market supply is significantly affected by quantity of
sesame produced, land, membership in cooperatives and non-off farm income. The
multivariate probit model results also indicated that the probability to choose the wholesalers
outlet was positively and significantly affected by household education, distance from the
nearest market, quantity produced and market price of sesame but negatively affected by
collector market outlets. Similarly, the probability of choosing cooperative marketing outlet
is positively affected by membership to cooperative and distance from the market whereas it is
negatively affected by market price of sesame. Therefore, policy aiming at increasing
farmers’ access to modern inputs, developing and improving infrastructure, gender
consideration, cooperative development and improving extension system are recommended to
accelerate the value chain development.
