Haricot Bean Value Chain Analysis in Boset Woreda, Oromia National Regional State, Ethiopia

Abstract

This study aimed at analyzing haricot bean value chain in Boset woreda, Oromia National Regional State, Ethiopia with the objectives of analyzing haricot bean value chain in the study area. The data were collected from both primary and secondary sources. The primary data were collected from 196 producers,14 local collectors, 6 wholesalers, 7 retailers, 3 primary cooperatives, Lume Adama farmers’ Cooperative Union and 3 exporters through using random sampling method. Besides, 4 focus group discussions with 32 producers and key informant interview with 4 organizations were conducted. Descriptive statistics and econometric model were used to analyze the data. To analyze factors affecting supply of haricot bean to the market, multiple linear regression models was used. The value chain analysis revealed that haricot bean value chain actors in the Woreda were input suppliers, producers, primary cooperatives, local collectors, wholesalers, retailers, union, exporters and consumers. Value chain supporters are from Governmental offices, NGOs and private service providers.  It was also found out that haricot bean flows through several channels with little value being added. The value chain is governed by exporters and wholesalers who have capital and better information than the other value chain actors. The profit share which account 32.41% to exporters;18.66% to primary cooperatives and Lume Adama Union, 17.98% to retailers, 14.38% to wholesalers, 4.75% to collectors and while producers receive 11.82% profit margin. The result of the multiple linear regression model indicated that land allocated for haricot bean, utilization of NPS fertilizer and livestock ownership have positive and significant influence on supply of haricot bean to the market while distance from nearest market and lagged market price have negative influence. Therefore, strategies aiming at improving farm land management, utilization of fertilizers, livestock ownership, improving road access, price support policy are recommended to upgrade the haricot bean value chain.

Keywords: Value chain Actors, Supporters, Haricot Bean, Multiple Linear Regression.