Marketing Channel and Margin Analysis of Ware Potato: A Case Study of Ware Potato Marketing at Ambo and Dendi Districts in Central Ethiopia

Abstract

The study was conducted at Ambo and Dendi districts, Central Ethiopia to identify ware potato marketing channels, assess margins of the market and examine the role of various marketing actors involved in the chain. Related data from primary and secondary sources were collected and analyzed with descriptive statistics using SPSS. Simple random sampling method was used for the study. From the total volume produced in the study area, a total of 1,366 and 938 tons of ware potato, accounting 76.28% and 68.68% from the total produced, were sold in Ambo and Dendi districts, respectively, during study period. Seven marketing channels were identified. There is wide gap in market margin and found to be inefficient; with the highest market margin goes for collectors (32.8%) with the lowest shared by (40%). Likewise, the highest and lowest profit margins were taken by wholesaler (13.55 birr/qt) and collectors (48.65 birr/qt). In order to benefit the major participants of the market chain, farmers have to linked with the need of consumers by working closely suppliers and processors to produce the specific goods required by consumers.

Keywords: - Ambo and Dendi districts, margin, market channel