Abstract:
This study was initiated with the general objective of analyzing maize and haricot beans
value chains in the Adami Tulu Jido Kombolcha and Dugda districts of Central Rift Valley
of Ethiopia. The main objectives of the study were to map and identify the actors of the
value chains, the structure of costs and incentives among them and to identify
determinants of farmers’ participation decision and marketed volume in the study areas.
In this study, both primary and secondary data were used. A total of 200 sample
households, 65 maize traders, 28 haricot beans traders, 6 input suppliers and 2 processors
were taken. Producers, assemblers, wholesalers, retailers, cooperatives and unions were
found to be important actors in the maize value chain. In haricot beans market, in addition
to mentioned actors, exporters were the intermediaries found in the market in the study
areas. Value chain governance was studied on the basis of control over volume of flow,
contractual agreement, quality and level of competition. The highest value added in maize
and haricot beans was 192.43 ETB/qt and 358.96 ETB/qt respectively. Producers gained
the highest gross profit in maize and haricot beans value chains. The Heckman two-stage
econometric estimation procedure was employed to identify factors that determine market
participation decision and intensity of participation of maize. In maize market, the
selection equation results showed that participation decision was positively and
significantly affected by market price, district dummy and source of price information. The
outcome equation results revealed that intensity of participation was found to be positively
and significantly affected by market price, district dummy, land size, livestock holding,
distance to main market, family size, source of price information and literacy level. On the
other hand, haricot beans market, since the inverse mills’ ratio was insignificant ML was
applied. District dummy, land size, non-farm income and number of extension contact
were found to significantly affect market participation and intensity of participation; in
addition, the participation was positively and significantly affected by sex, source of price
information and distance to main market negatively. The outcome equation identified
market price, level of education and family size was found to affect positively and
significantly; and negatively to livestock holding. Lambda is significant for maize and
insignificant for haricot bean market. To upgrade the value chain, minimizing loss at
production and marketing stage; planting maize processing factories; minimizing costs of
production through establishing seed producing enterprises are the actions to be taken to
strengthen the sector development
