Analysis of Honey Market Chain: The Case of Chena Woreda, Kaffa Zone, Southern Ethiopia

Abstract:

This study was initiated to identify honey marketing channels, actors and their roles; to analyze the structure, conduct and performance of honey markets; to identify factors affecting volume of honey marketed and producers’ market outlets choices in Chena woreda of Kaffa zone, Southern Ethiopia. Data from a total of 154 sample honey producers from three randomly selected honey producing kebeles, 30 traders and 20 consumers were collected and analyzed. SCP model for structure conduct and performance analysis, multiple linear regression model for determinants of market supply and MVP model for outlet choice decision determinants analysis were used. The identified honey market chain actors in the study area include producers, cooperatives, collectors, retailers, wholesalers, processors and consumers. Seven honey marketing channels were identified in the study area with major share of volume of honey marketed goes to marketing through channel VII. The result from analysis of market concentration indicates that the structure of honey market in Chena district is weak oligopoly with four largest honey traders’ concentration ratio of 33.63%. In line with degree market of concentration, lacks of market information for producers, problems in licensing and unfair competition with the unlicensed traders are identified to be the major entry barriers to honey marketing; as the result honey market in the district shows some deviations from competitive market norms. Market conduct shows that price of honey was set by traders and producers are price takers. Market performance analysis based on marketing margins shows that all the actors generated positive gross profit. The result reveals that the total gross marketing margin is highest in channel V (38.55%) and lowest in channel II (22.67%). The results also showed that the maximum producers’ share from the total consumers’ price is highest in channel II (77.33%) and lowest in channel V (61.45%). Multiple linear regression model result reveals that beekeeping experience, hive types used, number of beehives owned, extension contact and cooperative membership positively and significantly affected honey market supply while distance from nearest market negatively and significantly affected it. The simulation result of MVP model shows that 69.05%, 73.4%, 61% and 46.9% probability for choice retailers, cooperatives, collectors and consumer outlets, respectively and with 10.96% probability of jointly choosing the four outlets simultaneously. The MVP result for honey producers’ market outlet choices also reveals that quantity of honey sold, frequency extension contact, beekeeping experience, distance to market, access to market information, cooperative membership and trust in buyers significantly determined honey producers market outlet choices in the study area. To enhance volume supplied with appropriate market outlet choices which in turn increase producers income generated from honey, all concerned bodies need to focus on experience sharing with experienced households, capacity building through training on improved honey production, increasing access to improved beehives, improving poor road facility, strengthen financial capacity of existing and establishment of additional beekeepers cooperatives.
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APA

Kassa, T (2024). Analysis of Honey Market Chain: The Case of Chena Woreda, Kaffa Zone, Southern Ethiopia. Afribary. Retrieved from https://afribary.com/works/analysis-of-honey-market-chain-the-case-of-chena-woreda-kaffa-zone-southern-ethiopia

MLA 8th

Kassa, Tarekegn "Analysis of Honey Market Chain: The Case of Chena Woreda, Kaffa Zone, Southern Ethiopia" Afribary. Afribary, 12 Apr. 2024, https://afribary.com/works/analysis-of-honey-market-chain-the-case-of-chena-woreda-kaffa-zone-southern-ethiopia. Accessed 30 May. 2024.

MLA7

Kassa, Tarekegn . "Analysis of Honey Market Chain: The Case of Chena Woreda, Kaffa Zone, Southern Ethiopia". Afribary, Afribary, 12 Apr. 2024. Web. 30 May. 2024. < https://afribary.com/works/analysis-of-honey-market-chain-the-case-of-chena-woreda-kaffa-zone-southern-ethiopia >.

Chicago

Kassa, Tarekegn . "Analysis of Honey Market Chain: The Case of Chena Woreda, Kaffa Zone, Southern Ethiopia" Afribary (2024). Accessed May 30, 2024. https://afribary.com/works/analysis-of-honey-market-chain-the-case-of-chena-woreda-kaffa-zone-southern-ethiopia