Wood Furniture Value Chain Analysis:The Case of Small and Medium Scale Wood Manufacturing Industries in Wolaita Sodo, Ethiopia

Abstract

Current study aimed to identify and characterize different actors involved in wood furniture (Beds) value chain in Wolaita Sodo and to map the value chain of wood furniture (Beds) manufactured Wolaita Sodo. The research has used primary and secondary data and descriptive analysis to obtain the following facts; diverse actors have been participated directly or indirectly in the chain. In input  supply about 35% of the owners/managers of enterprises sourced their raw material far from Wolaita Sodo like (Adis Ababa, Shashmane, and Hawasa) while, the remaining obtained from local traders around sodo area.  Commonly Single, Medium, Double and King Bed size were produced in the area. The estimated volume of production was about 15804 pieces in the year 2014/15 costing 30279.2 Birr in average from which the manufactures received average profit of Birr 10603.18 in total. In other side retails cost and received average profit of 81.08 and 547.90 respectively. Additionally poor quality in raw material and law quantity, lack of modern technology and skilled man power are pointed as a problem in the area. As an opportunities existence of high market potential in the Country and raw material resource in the area were mentioned. Thus, government bodies should invest on capacity and performance building of enterprises engaged in furniture manufacturing by using various relevant institutions is highly needed to sustain furniture contribution to local as well as global economy.

Keywords: Furniture, manufacturing, small and medium scale, value chain