VALUE CHAIN ANALYSIS OF TOMATO FROM SMALLHOLDER FARMERSINMECHADISTRICT, WEST GOJJAM ZONE, ETHIOPIA

Abstract

Tomato plays a significant role in increasing food security and income for the poor farmers of Ethiopia in general and Mecha district in particular. This research was conducted to understand the structure and functioning of tomato value chain from smallholder farmers in Mecha district. Both quantitative and qualitative data were collected from both primary and secondary sources. Quantitative data were collected through personal interviews from a total of 181 respondents using semi-structured questionnaires. More over qualitative data were also collected through focus group discussions, key informant interviews and observations. Descriptive statistics, value chain analysis, and econometric analysis were used to analyze the data. STATA Software package was used to analyze the collected data. The survey revealed that major actors involved in the tomato value chain include input suppliers, producers, traders, processors and consumers. In the study area, tomato production is market oriented that all producers sell their product to the traders. The product flows to the end users through seven market channels. The total gross marketing margin (TGMM) is highest in channel I (44.44%) and II (41.18%).This shows that as the number of marketing agents increases the GMMp decreases because of cost incurred for each agent. The OLS regression model indicated that age of household head, land allocated for tomato, improved seed, credit service, extension service, farm-gate price, and Off-farm activities are factors significantly determining the volume of tomato supplied to market by smallholder farmers. Further; multivariate probit model results also indicate that farming experience, total land size, distance to local market, education, level, land allocated for tomato, farm-gate price, non/Offarm activities and market information have a significant impact on market outlet choice. The study findings highlight important development and policy implications include the need to improving farmers experience on tomato production and processing, encouraging adult education especially focused on value chain concepts, expanding accessibility of market infrastructure and strengthening supportive institutions for credit access, and creating announcement on the advantage of value chain activities for all actors.