Tomato value chain analysis in omo nada district of jimma zone, oromia region, ethiopia

Abstract

Lower production, marketing inefficiencies and low coordination of tomato value chain are the main problems though Omo Nada district is potential in tomato production.This study is tomato value chain analyzes with the specific objective to identify tomato value chain actors and their respective roles, to assess market performance factor across the channel in the tomato value chain, to identify factors affecting producer’s tomato market outlet choice for selling tomato and constraints and opportunity of tomato production and marketing along value chain actors in Omo Nada district. Data for this study were collected from both primary and secondary sources. Primary data were collected through a survey using a pretested, structured questionnaire administered to randomly sampled 190 producers, 25 traders, and 15 consumers. Qualitative data were collected through key informant interviews using checklists. Secondary data were collected from the district of agricultural office, Omo Nada irrigation development of Authorities, Central Statics Agency, and review of unpublished and published document. Descriptive statistics, value chain analysis and econometric models were used to analyze the data. A multivariate probit model was used to analyze factors affecting market outlet choice of tomato producers in the study area. The major actors of the tomato value chain were; input suppliers, producers, collectors, wholesalers, retailers, and consumers. Four market channels of tomato were identified in the study area. The producers’ highest gross marketing margin was77.5% in channel III (producers-wholesaler-consumers) whereas the lowest gross marketing margin was76.8% in channel II (producers-collector-wholesaler-retailer-consumers) and the highest total gross margins was 44.5% in channel II%, whereas the lowest total gross margin was 22.4% in channel III. The results of multivariate probit model indicated that the households market outlet (sex of household and distance to nereast market was positively and significantly affected collector outlet. Also, family size and market information was negatively and significantly affected collector outlet). Family size, educational level, quantity produced, motor pump, transeport facilities, land size, was positively and significantly affected wholesaler outlet.Whereas distance to neraest market was negatively affected the wholesaleroutlet.(Quantity produced was positively and significantly affected with retailer outlet. Also family size was negatively affected with retailer outlet. Sex of household head and non farm income activities was positively and significantly affected with consumer outlet while distance to nereast market was negativiley and significantly affected with consumers outlet). The findings suggest the need to improve the input supply system, encouraging adult education, increasing the quality of market information, improving productivity and quantity of tomato produced, strengthening the linkage/interaction among tomato value chain actors, training producers how to select appropriate market outlet and strengthening supp