VALUE CHAIN ANALYSIS OF BREAD WHEAT: THE CASE OF MINJAR SHENKORA WOREDA, AMHARA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

Medium and large scale flour factories in Ethiopia operate by less than half of their full capacity due to lack of market or non-market coordination along bread wheat value chain. The objective of this study was to analyze value chain of bread wheat grain in Minjar Shenkora Woreda. Interview schedules, questionnaires and key informants were used to collect primary data. Multi stage sampling method used to select 152 bread wheat produces, 25 traders, 17procossers and 12 consumes. Descriptive and Heckman econometric analyze methods was used. Result of descriptive analyze showed that bread wheat producers account for more than half (51.3%) of the value, 37% of value added distribution and 40% of non-input related cost along the value chain. And total cost which was 88.8%% of total value is primarily (90 %) triggered by input cost, particularly bread wheat grain was the main input along the value chain. Heckman selection equation shows that bread wheat harvested, type of wheat seed, frequency of extension contact and ownership of communication assets affected output market participation decision positively and non-farm income, family size and distance from nearest market affected participation decision negatively. Heckman outcome equation shows that bread wheat harvested and non-farm income affected bread wheat marketed supply positively and age of house hold affected marketed supply negatively. Based on these finding recommendations was drawn major of them were; bread wheat production and productivity have to be upgraded through adopting improved bread wheat seed, good agronomic practice and post-harvest management techniques. More ever access to quality and sustainable provision of network, electricity and road has to be promoted.