Abstract: | This research was carried out with an aim to conduct and explore the study on major problems and prospect of potato production and marketing activities by taking Gendo gemebela and Doko yoyera rural kebeles as a case study in chencha district Gamogofa Zone SNNPR southern Ethiopia. It entails the specific objectives of examine the production, consumption and productivity of potato, evaluate the performance of smallholder farmers potato farming practice based on modern techniques, identify and analyze the major problems / constraints / that hinder the development of potato farming, explore the contribution of potato production towards food security and income of the smallholder farmers, assess potato value chain analysis, investigate the role of rural women’s in potato production, and to suggest strategic intervention area and action to be taken as a solution in the study area. Primary data have been be collected from 100 selected respondent /farmers/ this supplemented by information from two focus group, & 20 key informants and also retrieved from relevant report and documents. The result of the study shows that production and productivity on seed potato got the highest yield and benefit to multipliers but the ware potato producer couldn’t achieve these result and benefit so all necessary potato technology should disseminate extensively in the study area. The major problems that hinder the development of potato development and value chain were lack of sufficient quality seed, lack of storage and market, disease and pest intensification, low demand, and poor integration between main stakeholders. So this problem should be solved in order to benefit the producers. The result also indicate that the main actors in potato value chain should embraced in the development strategies, the techniques that modern potato farming practice should be disseminated in the study area , if we really to achieve highly the contribution of potato that is a buried treasure, food security and sustainable income for the potato producers. Generally the result showed as that the Potato is an important crop for smallholder farmers in chencha, serving as both a cash and food security crop. Based on the study result and problem encountered in potato production and marketing system in the study area, the following recommendation are suggested: establish and or strengthen cooperative, group, individual, FTC that engage in potato seed production to achieve the economies of scale needed to meet ware potato producer high demand for improved potato seed. Thus Improved potato seed replacement system should be put in place by involving the relevant stakeholders (MOA, NGOs, and Research institution and seed producers). The system should enable farmers to replace the improved Variety at regular interval, Applying quality assurance techniques as the required time (from sit selection to post harvest handling practices), Apply cost sharing method on the construction of DLS and ware house at household level, Potato specific technical recommendations should be adequately disseminated (site selection, ploughing, spacing, weeding, fertilisers, post harvest technologies) to increase potato production and productivity, Establish and strengthen potato producer cooperative union at chencha district level to facilitates potato marketing |