Determinants of wheat value chain in case of North Shewa Zone of Amhara region, Ethiopia

Abstract

The main objective of the study is to identify the determinants of wheat value chain in case of North Shewa Zone of Amhara region, Ethiopia. The researchers used multistage purposive random sampling technique to select representative households in the study area. The ordinary least square output revealed that production of wheat, price of wheat and secondary and tertiary education of the household positively and significantly affect supply of wheat to the market. On the other hand, distance from the market and distance from the main road have negative and significant effect on supply of wheat. Moreover, the multinomial logit regression result showed that household family size and market information have positive and significant effect while distance from the market and ownership of livestock have negative and significant effect on smallholder farmers’ market participation. The binary logit model also indicates that land holding, access to market information, total livestock and primary education affected positively and significantly. Therefore, policies aiming at increasing farmer’s awareness of producing value added wheat produce to enhance value creations are recommended to strengthen chain development.

Keywords:

• Agriculture
• market supply
• market outlet
• value chain
• Moretina Jiru
• Minjar Shenkora
• North Shewa
• Ethiopia

Public interest

In Ethiopia, agriculture is the main sector of the country’s economy. But the sector is dominated by subsistence production and low rate of commercialization. This is due to the fact that the agricultural commercialization is challenged by different constraints. Due to this, agriculture could not cover domestic consumption and the country is now importing substantial agricultural products from different countries mainly wheat. Value chain development plays significant role to improve agricultural commercialization. Thus, this study tried to examine the determinants of wheat value chain in North shewa Zone of Amhara region, Ethiopia. The study found that demographic, socio economic and institutional factors are significantly contributed to low commercialization of the agriculture. Therefore, addressing these constraints can helps to improve wheat value chain in the study area.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The authors received no direct funding for this research.

Notes on contributors

Eshetu Molla

Eshetu Molla Demeke, the author of this article, is a lecturer at Debre Berhan University, Ethiopia. He earned BA in Agricultural Economics and MA in Development Economics from Haramaya and Hawassa University respectively. His research interest includes commercialization, value addition, market performance, determinates of value chain and market outlet.