Value Chain Analysis of Banana in ‘Tekeze’ River Basin, North Ethiopia

Abstract

This paper aims to describe the functions and power relationship of the value chain actors, and to analyze their profit share in the chain for the commodity. In this study both qualitative and quantitative data types were collected from primary and secondary sources to get detailed and diverse information. Representative samples from the different actors in the chain were randomly selected and interviewed. The value chain map was first constructed to indicate the sequence of activities, the key actors and their relationships involved in the chain. The common marketing channels which show the product flow were identified. Marketing costs, margins and value share of the different marketing participants was examined using the chain performance indicators. In this study, mapping of the major actors participating in the chain and the product flow was well developed. Three common marketing channels of banana were identified in the study areas. Marketing costs and margins were analyzed to determine the profit shares of the actors and value addition by intermediaries along the chain.

Keywords: market chain, marketing margin, mapping value chain, profit share, marketing cost