Abstract:
Cheha district in Gurage Zone of Southern Ethiopia is known for Enset farming. However, use of traditional technologies and poor linkages along the market chain were mentioned the major problems constraining the potential benefits from the sector. Therefore, this study was aimed at analyzing value chain of Enset products focusing on Kocho and Bulla. The data were collected from both primary and secondary sources. The primary data for this study were collected from 140 farmers, 38 traders and 15 consumers. Descriptive statistics and econometric models were used to analyze the data. The study result showed that Enset producers are constrained with lack of improved varieties, inadequate institutional concerns, and absence of involvement of cooperatives in supplying inputs and in the marketing of Enset products. Lack of efficient processing devices and poor value chain linkage were also the major constraints of processing and marketing, respectively. The value chain analysis revealed that the major actors in the district were input suppliers, Enset producers, collectors, wholesalers, retailers, processors and consumers. On the other hand, the major value chain activities were input supply, production, processing, marketing and consumption. Multiple regression model result revealed that the value adding amount of Kocho and Bulla were significantly affected by experience in Enset production and marketing, own transport facility, perception toward current price, distance from the nearest market and dependency ratio. Moreover, Livestock ownership and Non/off-farm activities, significantly affected the value added amount of Kocho and Bulla, respectively. The multivariate probit model result indicated that the likelihood of households to use collectors, wholesalers, retailers, consumers and processors market outlet for Kocho were 41%, 38.5%, 65.1%, 53.6% and 23.5%, respectively whereas for Bulla were 32.8%, 56.5%, 44.3%, 49.3% and 17.4%, respectively. The multivariate probit model results also indicated that ownership of transport facility, Kocho or Bulla quantity sold, perception toward current price, distance from the nearest market and value addition per kilogram of Kocho or Bulla were significantly influenced Enset producers choices of Kocho and Bulla market outlets. Therefore, policy aiming at increasing farmers’ access to modern inputs, developing and improving infrastructure, cooperative development and improving extension system are recommended to accelerate the chain’s development.