Nigerseed Value Chain Analysis: The Case of Toke-Kutaye District, West Showa Zone, Oromia Regional State, Ethiopia

Abstract

The study was designed to analyze factors that affect marketable supply of nigerseed, and nigerseed market chain; and to estimate value addition and marketing margin distribution of actors in Toke-Kutaye district, Oromia Regional State. The data were collected from both primary and secondary sources. The primary data were collected from 148 producer and 37 other market chain actors. The result of the study showed that on average 2.67 and 2.55 quintals of nigerseed were produced and marketed per household, respectively. Nigerseed produce had four market outlets and seven channels with poor values addition before reaching to the final consumers. Out of the total produce 92.4% of nigerseed were marketed by producers. Nigerseed supply in the district is positively affected by education of household, land size for nigerseed farming, number of oxen owned, access to input and market information. Producers and traders got a profit share of 63.79% and 36.21 %, respectively. In all channels, producers’ gross market margin and net market margin were higher, while in multipurpose farmers primary cooperatives was with the least values. The crop has potential to serve as sources of livelihood, and farmers were the major contributor in the value addition process with better profit share margin followed by processers. Therefore, policy aiming to strengthening cooperatives, facilitating inter-linkage of stakeholders, and supporting the local processors are recommended to speed up the nigerseed market chain in the district.

Keywords: Actors, Market Channel, Multiple Linear Regression, Market Margin, Nigerseed