Value chain analysis of niger seed: the case of jardega jarte district, western Ethiopia

Abstract

The study aimed at analyzing value chain of Niger seed in Jardega Jarte district of Oromia national regional state with specific objective of identifying Niger seed value chain and analysis the performance of actors , analyzing the determinants of Niger seed supply to the market, identifying marketing channel, analyzing factors affecting outlet choice decisions and identifying the major constraints and opportunities. The data were collected from both primary and secondary sources. The primary data were collected from 165 farmers, 65 traders and 20 consumers through an appropriate application of sampling and stastical procedures. Multi-stage random sampling techniques were employed to select Niger seed producers of sample respondents. The value chain analysis result revealed that, the major actors in niger seed value chain are input suppliers, producers, collectors, cooperatives, rural wholesalers, brokers, unions, urban wholesalers, retailers, and consumer and also governed by urban wholesalers and processors. The result of multiple liner regression models indicated that, sex of household head, quantity of Niger seed produced, land allocated to niger seed, educational status, ownership of oxen, access to market information, access to credit and price affect marketable supply positively. The multivariate probit model result revealed that late of the year affect the probability to choose collectors outlet negatively. At the same time, quantity produced, membership to cooperatives and late of the year affect to choose cooperative out let positively where as quantity produced, late of the year, access to market information and frequency of extension contact affect wholesalers outlet positively. Lack of inputs, disease and pests, lack of oil milling industry to the area, poor information flow and lack of capital were identified as the main niger seed production and marketing constraints. It is better if, the significance variable result and those identified constraints and opportunities could be taken into consideration to accelerate Niger seed value chain development in the study area.