Abstract:
Agriculture plays significant role in the economic growth and poverty reduction, smallholder
farmers need to improve their marketed surplus. The study was aimed to analyzing value
chain of honey in Gamma district, Jimma zone southwest Ethiopia, with the specific objectives
of identify major actors, their function, and linkage ,quantify margin share of honey value
chain actors , identify factors affecting honey market supply and identify challenges and opportunities of honey value chain in study area . In order to attain these objectives, the study
was used primary and secondary data. Primary data were generated by household survey using pre-tested semi structured questionnaire. The data were collected from 119 farmers ,64
traders , 10 cooperatives ,1 union and 21 consumers and analyzed using STATA software
.Value chain actors identified in the study, include input Suppliers , producers, collectors,
retailers, wholesalers, process, cooperative, union and consumers. Market channels were
identified and the highest total gross margins are in the channel where honey passes through
channel producer – wholesale – retailers – consumers in channel VII, which was 70.47 %
.The highest Gross marketing margin of producers is in the channel where producer–
cooperatives-consumers in II ,which account 66 % .The major challenges were application
of chemicals , lack (High cost) of modern beehives and accessories, diseases and pest, pricing
and cheating of traders on balance, lack of timely and sufficient market information , low
price of commodities at harvest time, weak market linkages among value chain actors and
less bargaining power of farmers in the market .While the opportunities were availability of
potential flowering plants, Indigenous beekeepers knowledge & experience, existence of cooperatives and unions , availability of market demand throughout the year, growing number
of buyers , existence of infrastructure and telecommunication, presence of established cooperatives and union .The result of the multiple regression model results showed that education
level of household ,frequency of contact with extension agent, number of beehives owned, income of house hold head, type of beehives and cooperative membership significantly affected
the volume of honey supplied to the market .Therefore ,policy aiming at increasing farmers
access to modern inputs, developing and improving infrastructure, give attention to trainee
beekeepers , Strengthening the linkage/interaction among value chain actors, using improved
beehives, improving the income of farmers , motivational farmers to be a member of cooperatives ,increasing number of beehive to accelerate the chain’s development.
