Value Chain Analysis of Bamboo Production: The Case of Bule Woreda, Gedeo Zone, Snnprs

Abstract

Bamboo plays very important role socially, economically and ecologically. Despite the fact that bamboo play important role in improving the livelihood of the local community it has an insignificant contribution due to the products are at a very rudimentary level and inexistence of well established bamboo industry. These situations hampered the opportunity of the potential of bamboo that will improve the poor living standards and hence sustainable utilization of the resources. This study was initiated to analyze the existing bamboo market chain in Bule Woreda Gedeo Zone, Southern Nations Nationalities and Regional State. The focus of the study was to  analyze the determinants of marketable supply of Bamboo, identify actors involved in the processes and what do they actually do, investigate the costs incurred by each participants and the benefits driven by each. The data were collected by using a semi-structured questionnaires together with secondary data gathered from agricultural bureau offices and other unpublished sources. Robust Ordinary least square regression econometric model was used to analyze the determinants of market supply of bamboo. The results from this analysis indicates that price of bamboo culm, educational level of producers, distance to the nearest market, and access to market information were found to be  significant variables influencing bamboo supply to the market. A significant amount (70.16%) of bamboo produced is channeled through producers- traders- processors- consumers chain. The concentration ratio of two firms measures of market structure indicated there exist  super tight oligopolistic nature of bamboo market. Moreover, marketing margins also indicate that the producers get much lower benefit than any other market chain actors. The major problems of the production identified by bamboo producers in the study area arised from road infrastructure and market information. Therefore improving road infrastructure, provision of formal education and market information,  and improving the existing chain through creating appropriate market linkage are recommended.

Keywords: Value chain, value chain analysis, structure- conduct- performance, concentration ratio, marketing channel and marketing margin.