Value chain analysis of organic honey: in sheka zone of southwestern Ethiopia; case of masha woreda

Abstract

This study was conducted in Masha Woreda of Southwestern Ethiopia in 2014. The objectives of the study were to analyze honey value chain, profit margin distribution along the value chain, determinants of honey value addition decision and extent of value addition, the gender role at the farm level and factors affecting market outlet choice of beekeepers. The data were collected from both primary and secondary sources. The primary data were collected from 147 beekeepers, 22 retailers, 13 cooperatives, 15 tej makers and 20 consumers through application of an appropriate statistical procedures .From the surveyed households there were only two female-headed HHs. The study result showed that the major value chain actors in the Woreda are input suppliers, beekeepers, retailers, cooperatives, tej makers, exporter and consumers. The support service providers are governmental organizations, NGOs, financial institutions and organic inspection and certification agencies. The result showed that the women participation is less in productive activities and decision making as compared with men and women’s participation is higher in reproductive activities as compared with men’s. The Tobit model result indicates that the value addition decision and extent is significantly affected by perception of beekeepers towards price of value added honey, cooperative membership of the HH head, HH adult equivalent, extension service, credit access, distance to the nearest market and education level of the HH head. There were four honey market outlet choices in the study area such as tej makers, retailers, cooperatives and processor. Multivariate probit model result showed that the market outlet choice of the farmers affected by age of the HH head, education level of the HH head, HH adult equivalent, extension service, distance to the nearest market, membership in cooperative, information access, credit access and mode of sale. Therefore, policies promoting farmers access to modern beekeeping technologies, improving extension service, credit and market information access, gender consideration and cooperative development are recommended to improve honey value chain in the study area. In addition, more study will also require improving the existing honey production and marketing system in the study area.