Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia
Agriculture, Forestry and Fisheries
Volume 8, Issue 4, August 2019, Pages: 81-88
Received: Jul. 16, 2018;
Accepted: Aug. 15, 2019;
Published: Aug. 30, 2019
Views 455 Downloads 128
Oliyad Sori, Department of Agribusiness and Value Chain Management, Wollega University, Shambu, Ethiopia
Hika Wana, Department of Agricultural Economics, Wollega University, Shambu, Ethiopia
Marketing inefficiencies and low coordination of groundnut value chain are the main problems though Digga district is potential in groundnut production. The study was conducted to analyze the profitability and value chain assessment of groundnut in Digga district of Oromia region, Ethiopia. More specifically, the study identified value chain actors, their respective roles, maps the value chain, and assesses the performance of groundnut production in the area. Primary data were collected through a survey using pre-tested semi-structured questionnaire and through key informant interview using checklists and generated from randomly sampled 123 groundnut producers, 28 traders and 25 consumers. The major actors of groundnut value chain were: input suppliers, producers, traders, processors and consumers. Two-stage sampling procedure was employed to draw sample of groundnut producers. Digga districtwas selected purposively based on the potential it has for groundnut production in the zone. In the first stage, from kebeles which produce groundnut, 4 kebeles were randomly selected. In the second stage, 123 samples of household heads were randomly selected from total groundnut producers in the district and the sample households were drawn randomly from each kebele based on probability proportional to size sampling techniques. Producers’ highest gross marketing margin was 86.12% in channel III and highest total gross margin is 19.93% in channel IV while 13.88% is the lowest total gross margin in channel III. Cost incurred in groundnut production was 6588 Birr per Hectare and the gross income obtained from groundnut production was 9,600 Birr per Hectare and net income of the product was 3012 Birr per Hectare which shows groundnut production in Digga district is profitable. Opportunities and constraints of groundnut profitability and value chain were identified at each stage of value chain like input supply, production, processing, marketing and consumption of groundnut. The study recommended that farm machineries, improved seed of groundnut, market facilities and market outlets should be provided for farmers for insuring larger production and selling thereby to enhance profit of groundnut production in the study area.
Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia, Agriculture, Forestry and Fisheries.
Vol. 8, No. 4,
2019, pp. 81-88.
AAFC (Canada, Agriculture and Agri-Food Canada). 2004. Value-added Agriculture in Canada. Report of the Standing Senate Committee on Agriculture and Forestry.
Adeoti, A., Issack, I., Oluwatayo, B, Rahem, O. S. 2014. Determinants of Market Participation among Maize Producers in Oyo State, Nigeria. Journal of Economics, Management and Trade, 4 (7): 1115-1127.
Addisu G, Erimias T. 2017. Value Chain Assessment Study of Groundnut in Northwestern Ethiopia. British Journal of Economics, Management and Trade, 16 (2): 1-15.
Alemayehu C, Berhanu A, Mulugeta Taye, Abdi M, Tameru A, Helge, S. 2014. Opportunities and Constraints of Groundnut Production in Selected Drylands of Ethiopia. Drylands Coordination Group, 74.
CSA (Central Statistical Agency. 2017. Reports on Area and Production of Crops (Private Peasant Holdings, Meher Season). Addis Ababa, Ethiopia.
Dawit A, Samuel, M. nd. Groundnut Production and Marketing Intervention to Empower the Value Chain. ICRISAT.
DDAO (Digga DistrictAgricultural Office). 2016. Annual Report of the district. Digga, East Wollega Zone, Ethiopia.
Ephrem, G.2015. Aflatoxin Contamination in Groundnut (Arachis hypogaea L.) Caused by Aspergillus Species in Ethiopia. Journal of Applied & Environmental Microbiology, 3 (1): 11-19.
FAOSTAT (Food and Agriculture Organization of the United Nations). 2015. Groundnut world production.
FAO (Food and Agriculture Organization). 2016. Trade and Markets Division of Oil Crops. Food Outlook. Rome, Italy, 2016. Food and Agriculture Organization of the United State.
Geleta T, Purshotum, K. S., Wijnand, J. S, Tana T. 2007. Integrated management of Groundnut Root Rot Using Seed Quality and Treatment. International Journal of Pest Management, 53 (1): 53-57.
Gezahagn K. 2013. Economics of Groundnut Production in East Hararghe Zone of Oromia Regional State, Ethiopia. Science, Technology and Arts Research Journal, 2 (2): 135-139.
Gezahagn K. 2010. Value Chain Analysis of Groundnut in Eastern Ethiopia. M.Sc. Thesis. Haramaya University, Haramaya, Ethiopia.
Jemal Y, Chisholm, N. 2015. The Groundnut Value Chain in Babile District, Eastern Ethiopia. An AgriDiet Research Brief.
Mendoza G. 1995. A premier on marketing channel and margins. Lyme Rimer Publishers Inc., USA.
NBE (National Bank of Ethiopia). 2015. National Bank of Ethipia. Annual Report. 2014/15. Addis Ababa, Ethiopia.
Nedumaran S, Abinaya P, Jyosthnaa P, Shraavya B, Parthasarathy R, Cynthia B. 2015. Grain Legumes Production, Consumption and Trade Trends in Developing Countries. ICRISAT, No. 60.
NPL (National Plan Commission). 2015. The First Growth and Transformation Plan (GTP I). Addis Ababa, Ethiopia.
Ruters T, Boere A, Willems D, Dawit K, Dolfen W. 2015. Business Opportunity Report: Oilseeds and Pulses. Ministry of Economic Affairs and Ministry of Foreign Affairs. Den Haag. The Netherlands.
Taphee G. B, Jongur A. A. U, Dengle Y. G, Ephraim I. J. 2015. Analysis of Profitability of Groundnut Production in Northern Part of Taraba State, Nigeria. International Journal of Computer Application, 125 (1): 0975-8887.
Yamane T. 1967. Statistics: An Introductory Analysis, 2nd Ed. New York: Harper and Row.