Value Chain Analysis of Fruits for Debub Bench Woreda, Bench Maji Zone
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This study was aimed at analyzing value chain of fruits in Debub Bench woreda, Bench Maji zone with specific objectives of describing important marketing channels and actors involved on fruit value chain, identifying the upgrading strategies in fruit value chain, analyzing the governance structure in the fruit value chain, analyzing the value addition and distribution between the different actors, and identify constraints in value chain of the fruit. This is due to fruits are highly perishable product and it is bulky and of relatively small individual value, and requires rapid, cost-efficient transportation to buyers and consumers. Its quality also deteriorates very rapidly and the ability to consistently provide high-quality products depends on the commitment of all players in the supply chain. The data were collected from both primary and secondary sources. The primary data for this study were collected from 182 farmers and 20 traders through application of appropriate statistical procedures. To analyze the collected data the Statistical package for Social Sciences (SPSS) version 20 was used. Accordingly, the value chain activities in the survey period were production, marketing and consumption. It is also found out that fruits pass through several intermediaries with little value being added before reaching the end users. Therefore, farmers are forced to capture a lower share of profit margin. The highest marketing cost is incurred by wholesalers and the highest market profit is shared by retailers. The governance structure of fruits found in the woreda is hierarchical governance structure. The study result exhibited that fruits producers are faced low supply of fruits seed, low irrigation facility, lack of technical training, lack of credit access, low yield, On marketing side, storage problems, low price of fruits, price fluctuations, and trader give same price and no market. The value chain analysis revealed that the major actors in the Woreda are producers, local collectors, wholesalers, retailers and consumers. Five marketing channels are identified for banana, mango and papaya fruits. The findings of the study have important implication in upgrading the livelihood of smallholder producers, for agricultural research institutions, policy makers and researchers. Infrastructural development is a key to support the fruits sector. In this context, emphasis should be given to improved storage and transportation system, offering credit and other services to improve effective production and marketing of fruits.