SCHOOL OF GRADUATE STUDIES MARKET CHAIN ANALYSIS OF RED PEPPER

Abstract

The objective of this study was to conduct market chain analysis, to examine the red pepper, market structure, conduct and performance, analyze profitability of red pepper production, identify the determinants of households marketable surplus and Identify the major constraints, opportunities of production and supply of the red pepper to the market using primary data collected from households through semi structured questionnaire. The producers’ survey result revealed that large proportion of farmers supply the product to the market. The producers and traders survey result revealed that even the red pepper value chain suffers from low production, low quality, less value addition and irregularity of supply red pepper production was profitable for both producers and traders. The actors were producer, collector, wholesaler, retailer, processer and consumer. Hence the structure of the red pepper market in the study area was somewhat competitive. The profitability analysis also indicates that red pepper production was profitable. The average amount of red pepper supplied to the market per producer was 377.25kg with minimum amount of 0kg and maximum of 1050kg. The variables that influenced the marketable supply positively were farm size, price, family size and extension contact. Among the significant variables farm size, price and extension contact were highly significant at 1% significant level and family size at 10% significant level. The variables that influenced the marketable supply negatively were non-farm income, credit access and red pepper diseases affect market supply of red pepper negatively at 1 % level of significant. The major problems identified are diseases and pest, law product, need high men power and land selective behavior of red pepper. To solve these problems the government should be increase production by management of agronomy and pest, increase access to diseases management education and training, and the producers should be establish storage and processing facilities are recommended