Honey Value Chain Analysis and Producers Financing in Damot Gale District, Southern Ethiopia

Abstract

Honey value chain played a significant role in the economy of the country by engaging around two million farm households and other different actors. However, these actors and their function are not literally identified. In  a  given  value  chain,  financial service is an important instrument in improving the welfare of a poor through enhancing their productive capacity and motivating further value adding activities. Despite its importance, its supply for improved apiculture is limited in Ethiopia. This prevented farmers from buying high yielding equipment and undertaking modern colony management. This study was conducted with the aim of identifying different major actors and their respective functions who are engaged in honey value chain. It also identified the sources of finances for bee keepers, and their opportunities and challenges. The study was conducted in 120 households who were selected by using two stage sampling from Damot Gale District. The study identified seven major actors: producers, collectors, wholesalers, retailers, cooperatives, processors and consumers; and their functions were transporting, sorting and packing, filtering and processing. Producers get either in cash or in kind credit both as external and internal value chain financing where the major external sources were Omo micro finance institution and WARDO while the internal financial sources were cooperatives and self-supply. The study also revealed that, Shortage of input supply, Lack of skill to make locally made transitional hive, Shortage bee forage and Lack of strong internal value chain financing system challenged the effectiveness of honey value chain in the study area.

Keywords: Honey, Value chain, Value chain financing, Actors, Marketing, Damot Gale