MARKET CHAIN ANALYSIS OF ENSET (Ensete ventricosum) PRODUCTS: THE CASE OF DOYOGENA DISTRICT, SOUTHERN ETHIOPIA

Abstract

Enset is a traditional staple food crop in many parts of the densely populated south and south-western highlands of Ethiopia. It is a multipurpose crop, and can be dependable source of income in areas where it is grown. Doyogena district is one of the major producers of enset products. However, there is no empirical evidence on its products (kocho and bulla) market aspect to design appropriate policies for improving the products’ production and marketing system in the district. Therefore, the purpose of this study was to analyze market chains of kocho and bulla in Doyogena district. Out of 13 kebeles producing enset, three of them were selected randomly for this study. A total of 154 households were selected randomly. For traders’ survey, 39 traders (22 kocho traders and 17 bulla traders) from three markets were selected. Data were obtained through face to face interview and focus group discussion by using pre-tested questionnaire and checklist respectively. Secondary data from different published and unpublished sources were used to support the data obtained from primary source. Descriptive statistics were used to identify actors and their role, analyze cost and margins, and identify opportunities and constraints in kocho and bulla market chain. Econometric model, Heckman selection model (two-step), was used to estimate determinants of kocho and bulla market participation decision and intensity of participation. Kocho and bulla market chain actors identified in the survey period were producers, village collectors, wholesalers, retailers and consumers. The cost of human labor was the most important cost item within the total cost of enset cultivation (33.64%) followed by cost of planting material which accounted 14.41% in the total cost of enset cultivation. The cost and margin analysis shows that kocho and bulla marketing was profitable. The econometric result shows that, out of 154 producers interviewed, 68.2% and 71.4% were kocho and bulla market participants respectively. The model output shows age of the household head, nearest market distance and area under enset cultivation as statistically significant determinants of market participation decision and intensity of participation of kocho producers. The model also shows age of household head, family size, nearest market distance and area under enset cultivation as statistically significant determinants of market participation decision and intensity of participation of bulla producers. Therefore, policy aimed in accelerating enset production and its products marketing could be successful if those households who have large number of livestock are taken into consideration. In addition, improvements in access to transportation facility may contribute to the increased participation in kocho and bulla market by enset farmers in the study district