VALUE CHAIN ANALYSIS OF TEFF: THE CASE OF SHEBEL BERENTA DISTRICT, EAST GOJJAM ZONE, AMHARA REGION, ETHIOPIA

Abstract

Teff is a largely precious crop for Ethiopian people in generating income and achieving food security. Indeed still teff is economically and socially important, its value chain and gender gap in productivity haven't yet been studied and proved in the study area. This research was conducted to analyze teff value chain in Shebel Berenta district of East Gojjam zone, Amhara region, Ethiopia with the specific objectives of mapping the value chains of teff, analyzing performance (value added share) of teff market participant and to assess impact of gender gap in teff productivity. Two stage sampling procedure was applied to select 120 sample teff producer households. Also, 30 traders, 6 processor, and 14 consumers were purposively selected for identifying performance of teff market in the study area. The data were obtained from primary and secondary data sources. The data were analyzed by descriptive statistics and econometric model. Result from functional and institutional approach of value chain analysis showed that input supplier, producer, rural collector, processor, wholesaler, and retailer were set up to be the major teff value chain actors. Analysis of marketing margins indicated that from total gross marketing margin wholesalers received the highest (39.46%) marketing margin and rural collectors received the least marketing margins (6.06%) in teff value chain. teff market is also characterized by relatively good producers’ share when they sale to consumers, retailers and wholesalers. Marketing margin and cost analysis showed unreasonable cost and profit share among teff market chain actors. Therefor teff market in the study area is inefficient. Likewise, the analysis utilizes the Oaxaca- Blinder decomposition model. The result of this model indicated that men headed households 27.28% further productive than women headed households in the study area. Policy implications drawn from the study findings include, strengthening the relation/ commerce among teff value chain actors are recommended to strengthen teff value chain development and programs need to take into account. Differences in morals, markets, and institutions more extensively in order to increase the productivity of women growers in the study area