Value chain analysis of wheat in the case of North Shewa Zone, Amhara region, Ethiopia

Abstract

In Ethiopia’s central highlands, particularly in the Siyadebirina Wayu and Moretinjiru Districts of the North Shewa zone, wheat is the most extensively grown cereal crop. Despite the zone’s huge wheat production potential, the value chain and industrial growth are highly antiquated and ineffectual. Examining the wheat value chain (WVC) analysis was the main goal of this study, and 156 households and 20 traders were chosen using multistage sampling techniques, descriptive statistics, market margin, and econometric models. The result indicated that the main participants in the WVC were commission agents, input suppliers, local alcohol processors, producers, local collectors, wholesalers, processors, retailers, cooperatives, and unions. Wholesalers got the largest marketing margin (1.61%) and wheat’s gross marketing margin (3.37%) among all participants in the WVC. They also had the biggest profit share (39%) than any other group. The regression model showed that the volume of wheat supplied to the market was significantly influenced by the frequency of using extension services, nearby market availability, wheat production amount, lagged market price, and the involvement of households in off-farm income. The main challenges to the growth of the wheat industry were the high costs of inputs, diseases, weeds, and the inadequate supply of agricultural resources. Therefore, to strengthen the WVC and boost productivity in the study area, regulations pertaining to the adequate or efficient delivery of agricultural inputs, the construction of infrastructure, the opening of agro-processing companies, and the application of appropriate pricing methods by the relevant bodies are crucial.

Keywords

• Market performance
• North Shewa Zone
• wheat market
• wheat value chain