Value Chain Analysis of Malt Barley (Hordeumvulgarel.): A Way Out for Agricultural Commercialization? The Case of Lemu Bilbilo District, Oromia Region, Ethiopia

Abstract

This paper analyzes malt barley value chain and determinants of malt barley producers’ market orientation in Ethiopia. Data were collected from 150 randomly selected producers using structured questionnaire, and key informant interview with different actors along the value chain. Descriptive statistics and econometric methods were used for data analysis. Multiple linear regression model and ordinary least square (OLS) estimations were used to analyze the determinants of malt barley producers’ market orientation. Input suppliers, malt barley producers, cooperatives, union, collectors, grain wholesalers, processors, beer distributors, and retailers are the main actors in malt barley value chain. About 30% and 42% of the gross marketing margin and 51% and 22% of net marketing margin are shared by producers and malt factory, respectively. The econometric results show that literacy of household head, family size, land allocated for malt barely; farming experience, oxen ownership, access to improved seed, access to credit service, productivity of wheat and agricultural input cost are important determinants of malt barley producers’ market orientation. Therefore, policy aiming at improving farmers’ access to credit, access to improved seed, cooperative performances and strengthening actors’ linkage can enhance the development of malt barley value chain and farmers’ market orientation in study area.

Keywords: Malt Barley, Margin Distribution, Market Orientation, Value Chain Analysis, Ethiopia