Market Value Chain Analysis of Mango: The Case of Arbaminch Zuria Woreda

Abstract

Ethiopia has a variety of fruit crops growing in different agro ecological zones by small farmers, mainly as a source of income and food. The nature of the product, on the one hand, and the lack of market system, on the other, have resulted in low price for producer; and hence, low benefit for traders. This study aims at analyzing market value chains of mango in Arba Minch Zuria Woreda, Gamo Gofa, Zone with specific objectives of describing important marketing channels and actors involved in mango value chains; identifying constraints and opportunities as well as the determinants of supply of mango in the area. Three kebeles were selected based on the presence of higher amount of mango production. The data was collected from both primary and secondary sources. The primary data for this study was collected from 127 farmers and 23 traders through application of appropriate statistical procedures. To analyze the collected data, stata software was used. Multiple linear regression models were also used to analyze factors that determine mango market supply of the producers in the area. Analysis of marketing costs and margins revealed that processors (juice house) received the highest (80.89%) marketing margin and producers received less than (20%) marketing margins in mango trade business. Based on regression model, the study has identified the main determinants of mango quantity supply. Quantity of mango produced, access to market, price of mango, access to extension, access to credit and education are factors that significantly affect quantity of mango supplied to the market positively at 5%, while access to extension service affects the supply negatively at 5% level. The findings suggest that effective market information service has to be established to provide accurate and timely market information to farmers and traders on current supply of mango output, demand and prices at national and regional levels. Infrastructural development is also key to supporting the sub-sector. In this arena, emphasis should be given to improved storage, and transportation system, offering credit and other services to improve effective production and marketing of mango.