Determinants of producers' participation in gums and resins value chains from dry forests and analysis of marketing channels in northwestern and southern Ethiopia

Abstract

Using data gathered from market actors and 384 households, factors influencing the participation of producers in gum and resins chains were identified. Participation is constrained mainly by low product prices, limited access rights to forests, and lack of information on product quality and prices. Regional differences exist regarding access rights to forests and the chains. In northwestern Ethiopia, factors positively influencing participation were the gender of the household head, whether advice was provided by extension workers, and the level of farm income and farm size, indicating that poor people have lesser access to gums and resins. Access to formal credit and perceptions of problems of transport negatively and significantly affect participation. In southern Ethiopia, participation was positively influenced by the number of livestock owned, while distance to the forest and perception of transport problems had negative effects. Two major value chains and eight major marketing channels were identified. Profit margins varied between 12% and 28% for producers and between 14% and 53% for exporters. Improving access to and use of dry forests for gums and resins, encouraging sustained involvement of companies, and building capacity to add value are measures recommended to enhance incentives for collectors to responsibly manage dry forests.

Keywords::

• NTFP value chains
• cooperatives
• profit margins
• policy
• smallholder producers

Acknowledgements

The authors gratefully acknowledge the Austrian Development Agency for financing CIFOR's project in Ethiopia entitled ‘Supporting Community Forestry to Improve Livelihoods and to Facilitate Sustainable Management of Dry Forests in Ethiopia’ (Project No. 2008/03) from which this publication was produced. The authors also thank CIFOR and national partner institutions for contributing to the research work and to the write-up of this paper.

Notes

^1. Birr is the local currency of Ethiopia. During the time of the study, the exchange rate was USD 1 = 17 Birr.