Potato Value Chain Analysis in Banja District, Ethiopia

Abstract

Potato is important for its contribution to food security and as source of cash income for a large proportion of the rural households. However, enhancing potato farmers to reach markets and actively engage in the potato value chain is a key issue needed in the study area. This paper was aimed to identify Potato value chains and their performance. The data collected from randomly selected 120 farmers and from purposively selected 42 traders and 35 consumers. Descriptive analysis was used for characterizing farmers, describing value chain and examining market performance. Input suppliers, farmers, collectors, wholesalers, retailers and consumers were main value chain actors and governmental offices and NGOs were support service providers.The product passed through different channels and went out to different destination markets. Out of the total costs of production, seed cost accounts 38.43% of the total production cost to farmers and net return of 27.33% selling price. Even though the study area has high potential for potato production, there are constraints from input supply to consumption stages. Product perishability and lack of storage, seed system, and irrigation access and price fluctuation are some of the problems seen in the potato value chain. Therefore, the study underscores seed supply system, expansion of irrigation access, improvement on storage and postharvest processing methods and strengthening of cooperatives for policy implications.

Keywords: Potato value chain, performance, constraints

DOI: 10.7176/FSQM/95-02

Publication date:March 31^st 2020