VALUE CHAIN ANALYSIS OF WHITE HARICOT BEAN (Phaseolus vulgaris L.): THE CASE OF GOROGUTU WOREDA, EAST HARARGHE ZONE, OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

Haricot bean contributes to the national economy as a source of food, export commodity, source of income and employment. However, despite its importance for cash generating, the white haricot bean value chain inefficiency and production are influenced by low productivity, erratic rainfall, post-harvest loss and price fluctuations. This study is therefore instigated to identify the main actors and their role in value chains, analyze the market performance and identify determinants of white haricot bean production in the study area. This study used both primary and secondary data sources. The primary data were generated from 155 white haricot bean producers’ households, 4 wholesalers, 11 local assemblers and 3 exporters. Five market channels were identified for white haricot beans. It was estimated that 217.4 quintals of white haricot beans were supplied to the market by sampled farmers. Wholesalers and local assemblers were the main receivers of white haricot beans with percentage shares of 68.4% and 30%, respectively. The highest and lowest total gross marketing margin (TGMM) were 41.9% and 2.7% respectively. Out of 14 variables included in the regressed production function, seven variables were found to significantly affect the regressand. Accordingly, sex of household, land size allocated, off-farm income, and household size were found to influence production positively while credit utilization, age household, and plot distance had shown negative influence. The policy implications of this study findings are to have increase and diversify off-farm activities, credit provision is not only enough in white haricot bean production thus credit providers should followup the purposes loan used for so as to control loan diversion to unproductive purposes, improving the capacity of available production labor and gender consideration would have great contribution in increasing haricot bean production in the study area.