HONEY VALUE CHAIN ANALYSIS IN GERA DISTRICT, JIMMA ZONE OF OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

Gera district 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. Thus this research attempted to analyze value chain of honey in Gera District, Oromia Region of Ethiopia. Data for the study were collected from both primary and secondary sources. The primary data were generated by a household survey using a pre-tested semi structured questionnaire and key informant interview using checklists. The data were collected from 139 farmers, 18 traders and 29 consumers and analyzed using SPSS and STATA software. Honey value chain actors identified in the study include input suppliers, producers, rural collectors, retailers, wholesalers, processors and consumers. The chain is governed mainly by wholesalers. Producers are price takers. Nine market channels were identified and the highest total gross margins are in the channel where honey passes through producers-wholesalers-processors-consumers in channel VI and producers-collectors-wholesalers-processors-consumers in channel VII with a share of 75% and 72.7%, respectively. The highest gross marketing margin of producers is in the channel where producers-wholesalers- consumers in channel VIII which account 85.4%. The two-stage least square regression model results showed that seven variables which are quantity of honey produced, family size, type of beehive used, beekeeping experience, distance to nearest market, frequency of extension contact and sex of the house hold head significantly affected the volume of honey supplied to the market. The multivariate probit model results indicated that education level of household head, beekeeping experience, distance to nearest market, access to credit, cash income other than beekeeping, volume supplied to market and frequency of extension contact of honey significantly influenced honey producers choice of market outlets for their produce. Policy implications drawn from the study findings include the need to improve the input supply system, improving beekeepers knowledge, encouraging adult education, improving production and volume of sales of honey, strengthening the linkage/interaction among honey value chain actors, expanding accessibility of market infrastructure and strengthening supportive institutions.