Determinates of avocado supply and its value chain analysis case study of Mana, Jimma Zone, Oromia National Regional State of Ethiopia

Abstract

This study was aimed at analyzing value chain of avocado Mana Woreda, Jimma Zone. Avocado plays a significant role in increasing food security and income for the poor farmers of Ethiopia. Data for the study were collected from both primary and secondary sources. Primary data were collected using informal and formal surveys.This was supplemented by secondary data collected from different published and unpublished sources. The data was analyzed using the descriptive statistics, multiple linear regression model and Multinomial Logit model. STATA computer programs were used to process the data. Avocado value chain actors identified in the study include input suppliers, producers, rural collectors, brokers, retailers, wholesalers, processors and consumers. The chain is governed mainly by wholesalers with assisted by brokers. Six market channels were identified for avocado. The total gross marketing margin (TGMM) was highest in direct sell to locale collector in channel V and IV, respectively and lowest in direct sell to retailer in channel I.The multiple linear regression model results showed that six variables such as quantity of avocado produced, age of household head, family size of household head, access to market information, access to credit and lagged year price of avocado are significant determinants of the quantity of avocado supplied to the market.. The multinomial logit model results showed educational level, experience of household head, distance from home to nearest market, access to market information, current price of the commodity and access to credit services are significantly influenced the choice of avocado marketing outlets as compared to accessing consumer market outlet. Finally, policy implications drawn from the study findings include the need to improve the input supply system,, improving farmers’ knowledge and experience on avocado production, encouraging adult education through extension service, improving productivity and volume sales of avocado, strengthening the linkage/interaction among fruit value chain actors, expanding accessibility of market infrastructure and strengthening supportive institutions.