ANALYSIS OF MAIZE VALUE CHAIN: THE CASE OF GUDURU WOREDA, HORRO GUDURU WOLLEGA ZONE OF OROMIA REGIONAL STATE, ETHIOPIA

Abstract

Lower production, marketing inefficiencies and low coordination of maize value chain is the main problems though Guduru woreda is potential in maize production. This study attempted to analyze maize value chain with the specific objectives of identifying actors, assessing their role and linkages, identify the determinants of market participation decision and level of participation. Both primary and secondary data was utilized by using two-stage sampling procedure. The primary data was collected from 119 sampled households, 15 traders and 25 consumers. Value chain analysis, descriptive statistics and econometric models (i.e Double hurdle model) were used for data analysis. The first double hurdle model revealed that market participation was affected by extension contact, use of credit service, access to market information, education, membership to cooperatives, yield and market price. The truncated part of double hurdle model indicated that market supply of maize was influenced by off-farm income, sex, yield, family size(man-equivalent) and experience. Producers captured high profit margin when they sold their product through channel IV, VI and VII which is 386.45birr, 383.9.15birr and 381.2birr per quintals, respectively. Absence of improved seed, absence of information on how to use credit, shortage of land, lack of transport facility, quality problem, poor actors linkage, lack of market information, late arrival and high cost of seed and fertilizers, and lack of modern storage were the major constraints of maize value chain. Providing credit, extension service, improved infrastructure, supplying production inputs timely, improving yield and volume of sales, knowledge, and creating and strengthening linkages between actors were forwarded by the study to improve maize value chain in the study area.