Abstract:
The development of financially and economically feasible production systems for rural economic
development and poverty alleviation are currently a widespread problem in Ethiopia. Rhamnus
prinoides L. Herit,is an important commodity plant widely cultivated in Ethiopia and sold in
almost every local market place of dry land and highlands of northwestern Ethiopia. Despite the
widespread commercialization of this economically important activity, not much has been
understood and documented the Rhamnus prinoides production to consumption system. This
research analyzed the value chain of Rhamnus originated from Lay Armachiho District to
understand the structure and functioning of the current value chain and design intervention
strategies based on the existing challenge and opportunity. Both qualitative data and quantitative
data were collected from relevant primary and secondary sources using a combination of data
collection tools including interview of value chain actors (producers and different traders), key
informant interview, focus group discussion. A total of 20 interviews with value chain actors, 12
key informant interviews and 4 focus group discussions were conducted. Data analysis involved
Descriptive statics. value chain analysis and financial analysis. The result reveled that the
Rhamnus prinodes is a common commercial species in the study area with households on
average owning 143.6 trees per ha with (SD=81).The production system is evergreen and
sustainable where only the leaves are picked by hand annually. The major direct value chain
actors include input suppliers, Rhamnus prinodes producers, wholesalers, village collector,
retailers and consumers. Besides indirect value chain actors such as supportive and regulatory
service providers are also involved. Even though all actors have a positive profit margin, the
largest share goes to producers which are about 73.6% of birr per Kg. The average annual
incomes of the producers were 6180 birr per Quintal and the total value added in the value chain
5120 birr per 0.34 ha. Therefore promoting Rhamnus prinodes production and marketing
assessment of the gaps in production establishment, value chain developments for fair benefits
among value chain actors and helps to identify critical intervention points, design appropriate
improvement strategies and market stimulations
