Value chain analysis of soybean (Glycine Max [L.] Merr:) the case of metekel zone of benshangule gumuz national regional state, Ethiopia

Abstract

In Metekel zone of Benshangule Gumuz national regional state, soybean is a major cash crop which is mainly produced by smallholder farmers. The study was undertaken with the objective of mapping value chain actors, describing value addition, estimating share of actors' margin and identifying determinants of market supply of soybean by smallholder farmers. Simple random sampling techniques were employed to select a total of 147 farmers from six kebeles. Data were also collected from input suppliers, collectors, local retailers, local wholesalers, national wholesalers, national retailers, processors; exporters and enablers/supporters/ who were also selected using different sampling techniques. Data were collected from both secondary and primary sources. Descriptive and econometric methods of data analyses were used to analysis data using STATA 11. The profitability analysis indicates that soybean production was profitable. The average amount of soybean supplied to the market by producers was 28.84 quintal with a minimum amount of 3.96 quintal and maximum amount of 61 quintals. The major problems identified are low access to improved inputs, collateral problem to get credit, poor storage facilities, low price of produce, and low negotiation (bargaining) power of producers. The result of LRM market supply model revealed that current price, quantity produced, soybean farming experience, the land size allocated for soybean production, training, active family size (labour force), source of oxen and market information significantly affected market supply of soybean. To increase the marketed supply of soybean , enabling the producers to process the product, improving access to inputs to increase productivity of soybean, experience sharing of soybean farming, expanding land allocated for soybean production, facilitation of conditions for farmers to have their own oxen, continuous training and extension service in soybean production and provision of adequate market information are needed.