Value Chain Analysis of Maize: The Case of Bako Tibe and Gobu Sayo Districts in Central West Ethiopia

Abstract

This research attempted to generate useful information on maize value chain, which helps governmental institutions and NGOs to assess their activities and redesign their operations in Bako Tibe and Gobu Seyo districts. The research was done by identifying actors and mapping their interactions, evaluating incentives and cost structure, estimating determinants of maize marketed surplus. Data was collected from 199 randomly selected households, 53 maize traders, and 7 input suppliers. For data analysis, both descriptive and econometrics analysis of Tobit model were used. The result of the study showed that, maize average production, yield and marketed surplus were 36.95 quintal, 31.44 quintal per hectare and 18.23 quintal, respectively. Input suppliers, producers, traders and consumers were the main actors in the value chain. In the chain, no maize processors and exporters identified in the study areas. Through the value chain, the maximum value added was about ETB 49 per quintal and rural assemblers obtained the highest share of gross profit next to producers. The econometric model result showed that current price, district, fertilizer used, marketing costs, land allocation, distance to main market and non-farm income were significantly determining maize marketed surplus.

Keywords: Mapping, Marketed surplus, Marketing Margin, Tobit model, Value chain.