Value Chain Analysis of Haricot Bean in East Shewa Zone, Oromia Regional State, Ethiopia

Abstract

The key objectives of the study were identifying haricot bean value chain actors, their functions and relationship among them, examining actor’s performance along the chain and analyzing factors affecting supply to the market and factors affecting market outlet choice in the study area. Both primary and secondary sources were used for data collection. The primary data was collected through interviewing 180 sample household farmers and 40 traders using semi-structured questionnaires. STATA version 15 Software was used for data analyzing. As the descriptive result indicate that, on average farmers allocate 0.72ha of land for haricot bean production, from which 21.72qt/ha of output gained. In the value chain of haricot bean input suppliers, farmers, collectors, traders, transporters and consumers are the major value chain actors who perform various value chain. From the study result, six marketing channels of haricot bean are exhibited in the study areas. Estimates of the multiple linear regression models indicate that the level of haricot bean supplied to the market is determined by educational level of household, haricot bean farming experience, land allocated for haricot bean, market price of haricot bean, TLU, access to credit, and access to market information. Therefore, policy makers should focus more on the abovementioned variables in the future intervention to increase volume of haricot bean supplied to the market. As the multivariate probit model result indicated that the market outlet choice of rural assemblers was positively and significantly influenced by distance to the nearest market center, distance to all weather road, and educational level whereas it’s negatively and significantly influenced by output level where as selling direct to consumers outlet choice was negatively and significantly affected by sex of household, educational level, farm experience of household in haricot bean, and output level. Urban traders/wholesalers market outlet was positively and significantly affected by sex of household, educational level, haricot bean farm experience, access to credit, access to market information, membership of cooperative, and output level whereas it’s negatively influenced by distance to the nearest market center, distance to all weather road and extension service. Based on the findings of this study, some relevant implications can be drawn that can assist to design appropriate intervention mechanisms to improve market outlets choice of haricot bean farmers in the study area.