Analysis of sesame value chain: the case of gimbi woreda in oromia national regional state Ethiopia

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.