ANALYSIS OF HONEY MARKET CHAIN: THE CASE OF SHEBEDINO WOREDA, SIDAMA ZONE, SOUTHERN NATION, NATIONALITIES AND PEOPLES REGIONAL STATE, ETHIOPIA

Abstract

Shebedino Woreda is known for its high production of honey. However, there is a gap in honey marketing in that producers are not benefitted from the existing honey supply to the extent that should be. The current honey supply of the woreda was also less that its potential. Thus, this study was conducted to address the marketing issue with the general objective of analyzing honey market chain. Its specific objectives were to identify market chain actors and their roles; to analyze structure, conduct and performance of honey market; to identify opportunities and constraints in honey production and marketing; and to identify factors affecting market supply of honey at household level. To achieve these objectives, both primary and secondary data were collected. The primary data were collected from 156 farm households, 31 traders, 7 processors and 30 consumers using pre-tested semi-structured questionnaire. Two stage sampling technique was employed to select sample producers. In the first stage 3 kebeles were selected randomly and in the second stage 156 farm households were selected randomly. Individual interview and focus group discussion were employed to collect primary data. Secondary data were collected from different published and unpublished sources. The data collected were analyzed using descriptive statistics and two stage least squire econometric model. The study result showed that honey producers, traders (rural assemblers, wholesalers and retailers), processors and consumers being honey market chain actors. The structure of the honey market was strong oligopoly with four firms’ concentration ratio of 58.18%. The honey market conduct was inefficient in that some traders were price makers and the price was affected by individual firms. From marketing margin analysis it was observed that large margins were going to middlemen. Hence from the result of market structure, conduct and performance analysis it is possible to conclude that honey market in the case of the study area is inefficient. Farmers’ indigenous knowledge of beekeeping, agro-ecological condition of the Woreda, support of governmental organizations and NGOs, and availability of strong domestic market for honey were identified as opportunities in honey production and marketing. Change in weather conditions, pests and predators, chemicals used in crops, absconding, and low participation of women in the sector were constraints in honey production and marketing. The two stage least squire model result showed that six variables were affecting market supply significantly and positively. These were total amount of honey produced, education level of household heads, one year lag price, credit use, training participation and number of days of extension contact. The study result indicated the need to encourage entry of more traders to the business, to device mechanism to increase producers’ margin, facilitate conditions to deliver modern beehives at affordable prices, provide credit including training packages, strengthening extension service for honey producers.