Potato Value Chain Analysis in Degem District, North Shoa Zone of Oromia National Regional State, Central Highlands of Ethiopia

Abstract

Degem is one of the major potato growing Districts in Ethiopia. However, farmers are not getting the right income from their product and information concerning entire potato value chain was also not studied in the study area. This study was therefore initiated with the objectives to describe and analyze the potato value chains and to identify improvement possibilities thereby to improve the position of potato farmers within the potato supply chain in Degem. Primary data for the study were collected through observation, household survey and case study from selected respondents. A total of 97 farmer, 7 retailers, 9 individual household consumers and 2 hotels were participated in providing the information. The results indicated that the major potato value chain actors were input suppliers, producers, retailers and consumers. Potato productivity (148.84qt/ha) in the district was better than the national average (100qt/ha) but much below the potential (350qt/ha). Average production was about 113qt/farmer of which 80% goes to market while 20% used as seed and household consumption. District market was the major outlet while retailers were the main costumers of the farmers who resell mainly for individual household consumers. The use of poor quality seed and disease were reducing productivity while seasonal price fluctuation and shortage of buyers at peak season were major bottlenecks for potato marketing. Improving the seed and storage system, linking farmers to institutional consumers and exporting to other region will likely improve the income from the sector and improves the position of potato farmers in the chain.

Keywords: Potato productivity, price, seed, storage, value chain