Economic Analysis of Postharvest Losses along the Supply Chain of Potato in Kombolcha Woreda, Eastern Hararghe Zone, Ethiopia

Vegetable postharvest losses are high in Africa and it has been estimated at about 50% of the total production. This implies that half of the total production is lost during storage, handling and transportation and at home. Postharvest loss management is expensive in terms of cost and labor. The main aim of this study is to make a comprehensive attempt to uncover the causes, extent and determinants of postharvest losses and its economic implications to various actors operating in the supply chain of potato in Kombolcha Woreda. The primary data for this study were collected from124 producers, 123 consumers and 20 traders. The analyses employed descriptive and econometric model. The findings of this study showed that the postharvest loss of potato in production year of 2014/2015 in the study area was11.88% and 2.2%, for producers and trader respectively. Furthermore, the gross margin result after postharvest loss was much lower than the gross margin without loss. More postharvest loss incurred by the producers and traders showed the great extent to which postharvest losses reduced the income of the producers and traders. Finally, The simple multiple linear regression model was run to identify factors affecting postharvest loss of potato, the result shows that postharvest loss of potato significantly and positively affected by quantity of harvest, rain at harvesting time distance from farm to market and storage period, and where as age of the household head, availability of labor and , working experience affect negatively. Therefore, these variables require special attention from government and stockholders with developing strategies for minimizing postharvest loss through training and workshops. Furthermore improving infrastructural facility of the study area should be mandatory for potato production and marketing to be increased without severe loss.