Analysis of Soy Bean Value Chain in North Western Ethiopia

Abstract

Soybean is one of the industrial crops that have been given high emphasis on GTP II to enhance its production and productivity through improved soybean varieties development and/or adaptation with different management and agronomic practices. Although Soybean has plenty importance to enhance soil fertility, source of nutrient to human and animals, main source of income to smallholder farmers and traders at household level as well as main source of income and foreign currency to Ethiopian economy as whole, smallholder farmers complain about its lowest output price relative to its production cost, other pulses and oil crops prices. This is due to one kilogram of soybean price could not cover the cost of one kilogram of faba bean, chicken pea, grass pea and other beans that purchased for “wet” purpose by selling soybean outputs. This research investigated the major opportunity and challenges of soybean production and marketing along value chain actors using focus group discussion, key informant interview and desk review. Storable ability, required less organic fertilizer, used as input for oil and feed industries and ongoing to enter ECX among major opportunity whereas low output price, poor linkage along value chain actors, lack of certified seed multiplier, limited usage of newly released improved soybean varieties were among major challenges of soybean  sector. Therefore to stimulate the soybean sector GO and NGO should be focused on the strong linkage between soybean producers and oil and feed industries, soybean marketing agents and soybean seed multipliers with price ceiling.

Keywords: Soybean, Production, Marketing Focus group and Key informant Interview

DOI: 10.7176/JMCR/90-01

Publication date:July 31^st 2023