Honey Value Chain Analysis in Gomma District, Jimma Zone, Southwest Ethiopia

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.