Abstract:
Lower production, marketing inefficiencies and low coordination of tomato value chain are
the main problems though Omo Nada district is potential in tomato production.This study is
tomato value chain analyzes with the specific objective to identify tomato value chain actors
and their respective roles, to assess market performance factor across the channel in the
tomato value chain, to identify factors affecting producer’s tomato market outlet choice for
selling tomato and constraints and opportunity of tomato production and marketing along
value chain actors in Omo Nada district. Data for this study were collected from both
primary and secondary sources. Primary data were collected through a survey using a pretested, structured questionnaire administered to randomly sampled 190 producers, 25
traders, and 15 consumers. Qualitative data were collected through key informant
interviews using checklists. Secondary data were collected from the district of agricultural
office, Omo Nada irrigation development of Authorities, Central Statics Agency, and review
of unpublished and published document. Descriptive statistics, value chain analysis and
econometric models were used to analyze the data. A multivariate probit model was used to
analyze factors affecting market outlet choice of tomato producers in the study area. The
major actors of the tomato value chain were; input suppliers, producers, collectors,
wholesalers, retailers, and consumers. Four market channels of tomato were identified in
the study area. The producers’ highest gross marketing margin was77.5% in channel III
(producers-wholesaler-consumers) whereas the lowest gross marketing margin was76.8%
in channel II (producers-collector-wholesaler-retailer-consumers) and the highest total
gross margins was 44.5% in channel II%, whereas the lowest total gross margin was 22.4%
in channel III. The results of multivariate probit model indicated that the households market
outlet (sex of household and distance to nereast market was positively and significantly
affected collector outlet. Also, family size and market information was negatively and
significantly affected collector outlet). Family size, educational level, quantity produced,
motor pump, transeport facilities, land size, was positively and significantly affected
wholesaler outlet.Whereas distance to neraest market was negatively affected the
wholesaleroutlet.(Quantity produced was positively and significantly affected with retailer
outlet. Also family size was negatively affected with retailer outlet. Sex of household head
and non farm income activities was positively and significantly affected with consumer
outlet while distance to nereast market was negativiley and significantly affected with
consumers outlet). The findings suggest the need to improve the input supply system,
encouraging adult education, increasing the quality of market information, improving
productivity and quantity of tomato produced, strengthening the linkage/interaction among
tomato value chain actors, training producers how to select appropriate market outlet and
strengthening supp
