MARKET CHAIN ANALYSIS OF MANGO: THE CASE OF BABILE DISTRICT, EAST HARERGHE ZONE, OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

Ethiopia has a potential for mango production in different agro ecological Zones by small farmers in general and Babile district in particular, mainly as a source of income as well as food. The nature of the product on one hand and the lack of market system on the other hand have resulted in low producers’ price and hence low benefit by the producers. This study was carried out to analyze the market chain analysis of mango. Multi-stage sampling technique was employed to select mango producers. Three kebeles were selected based on the simple random sampling method from the available 14 mango producing kebeles. The data was collected from 121 mango producing households those were selected using two stages PPS (probability proportional to size) and systematic random sampling method. Twenty eight market actors (6 local collectors, 5 wholesalers, 9 retailers and 8 processors) were selected using systematic random sampling method. Structure, Conduct and Performance (SCP) approach was used to analyze mango market. However, OLS (Multiple linear regression model) was used to analyzed factors that determine mango marketed supply of the producers in the study area. Mango market structure in the area shows the competitive nature. Analysis of marketing costs showed processors incur highest cost for processing of mango product and the marketing margins revealed that processors (juice houses) received the highest 71.80% of the total consumers’ price in channel I (Producers-Processors-Consumers channel) and on the same channel producers received the least 28.20% of the total consumers’ price than other channels. Besides, on this channel Processors obtain relatively highest profit per quintal amounted for birr 2459 this is due to direct purchase of mango product from farmers. Among the different variables that were hypothesized as determining factors for volume of marketed supply of mango the econometric result of OLS regression showed that three variables which are quantity of mango produced, sex, educational level of household heads, market price information and access to extension service were positively and significantly affect marketed supply of mango in the study area. However, one variable, distance to the nearest market were a factor that significantly and negatively affect xv marketed supply of mango in the study area. There is a tradition that trading fruits in the study area is not by male. So, it is strongly recommended that stockholders will give awareness creation for the society in order to minimize such kind of tradition from the society and to encourage male fruit traders in the study area. Finally, it is strongly recommended that Government and other stake holders should work to decrease the production and marketing constraints of mango and also to increase the producers share from total consumer price in the district.