Value Chain Analysis of Barely: A Case of Ambo District, West Showa Zone of Oromia National Regional State, Ethiopia

Abstract

Though barley value chains analysis assists governmental institutions and non-government organizations (NGOs) to assess their activities and redesign their operations, there has been no adequate study in Ambo district. Thus, this study aimed to analyze barley market value chain and identify determinants of the quantity of barley supply. The data were gathered from 132 randomly selected households, 20 traders and 4 input suppliers. Both descriptive statistics and econometric model were used for data analysis. The study revealed that the highest value added in barley value chains were about Birr 15.5/quintal. Rural assemblers in barley value chain obtained the highest share of gross profit next to producers. The Tobit regression estimator also revealed that age of the household, education of the household head, quantity of barley produced, use of fertilizer, improved seed used, and extension contact were significantly influencing the quantity of barley market supply. There was also no barley processor actor or that uses barley as a raw material in the barley value chain. Therefore, there is a need to promote agro-processors to be involved in barley processing and marketing.