Value Chain Analysis of Kocho: The Case of Cheha and Mirab Azernet Districts

Abstract

Enset based farming system is an important staple crop for million people living in the densely populated regions of South and Southwestern Ethiopia. However, only restricted intervention has been done to upgrade the crop even the consumption demand increases from time to time in different part of the country. This research attempted to analyze value chain of enset product in Cheha and Mirab Azernet districts, SNNPR of Ethiopia focusing on kocho product. Since, kocho plays a significant role in increasing food security and income for the poor farmers in the study districts. Data for the study were collected from both primary and secondary data sources. The data were collected from 154 farmers, 35 traders and 28 consumers. The study result revealed that the production of kocho from enset crop were used more for consumption while the rest was marketed. In addition, interview and observation results also showed that the production of kocho declined because of enset disease that destroyed the crop, absences of institutional and technological enhancements were accredited to existing inefficiencies in enset production and utilization. kocho value chain actors identified in the study include input suppliers, producers, local collectors, retailers, wholesalers, individual processors and consumers. Five market channels were identified for kocho. The highest total gross marketing margin was 33.53% in channel III. The highest gross marketing margin of smallholder farmers in kocho was 80% in channel II. The result of two stage double hurdle model revealed that, out of total 12 explanatory variables included in the model. kocho market participation decision was significantly affected by quantity of kocho produced, enset production experience, market information, credit access. Quantity of kocho produced, distance to nearest market center, marketing experience and average kocho market price significantly affected the volume of kocho supplied to the market. Policy suggestions drawn from the study results include the need to improve the input access system, improving farmers’ knowledge and experience on enset production, solidification extension services for enset production and marketing, strengthening the linkage among enset products value chain actors, improve enset diseases controlling mechanisms, needs attention on enset harvesting and processing technologies and strengthening supportive institutions.

Keywords: Enset; Kocho; Value chain; Double-hurdle model; Cheha, Mirab Azernet.

DOI: 10.7176/IKM/12-1-03

Publication date: January 31^st 2022