IJEBM

ISSN: 2384-6151

 International Journal of Economic and Business Management
 

Vol. 8(1), pp. 1-10, January, 2020.

ISSN: 2384-6151

DOI: 10.14662/IJEBM2019.200

Full Length Research

Soybean (Glycine max (L.)  Merril) Value Chain Analysis in case of Jimma Zone, Southwestern Ethiopia

Kumilachew Achamyelh¹, Zekariyas Shumeta², Abush Tesfaye³ and Mesfin Hailemariam¹

Ethiopia Agricultural Research Institute, Jimma Agricultural Research Centre,

Jimma University College of Agriculture and Veterinary Medicine, Associate Professor,

³International Institute of Tropical Agriculture, PMB, Nigeria. Corresponding author: email: jrmesfin@gmail.com

Accepted 11 November 2019

This study was conducted at Tiro Afeta district of Jimma zone with the objectives of analyzing and mapping the value chain and identifying the determinants of soybean supply to the market in the study area. Tiro-Afeta district was selected purposively due to its potential in soybean production and marketing. There are 17 rural kebeles administrations in the Tiro-Afeta district. From these rural kebele eight kebeles were selected purposively based on current production level of soybean and finally, four kebeles were selected randomly. Semi-structured questioner was developed and used to collect data from input suppliers, collectors, local retailers, local wholesalers, national wholesalers, national retailers, processors, exporters and enablers or supporters who were purposively selected. Both primary and secondary source data were considered for the analysis, value chain map and econometric methods were used to analyze the data. The result of the study showed that the main value chain actors were input suppliers, soybean producers, wholesalers, retailers, collectors, processors, exporters and consumers. The average amount of soybean supplied to the market by producers was 4.47 quintals with a minimum amount of 2.48 quintals and maximum amount of 5.73 quintals. Compared to farmers, traders took above 65.8% of the total profit margin. The result of Ordinary Least Squares model showed that quantity of soybean produced, sex of the household head, and distance to the nearest market, frequency of agricultural extension visits and cooperative membership positively and significantly affected soybean market supply. Based on the findings, the study recommends introduction of soybean improved varieties and sustainable supply of bio-fertilizer and increase of credit, rural roads and agricultural extension services. Increase the access of cooperatives and intensify cooperative to collect soybean from the farmers could affect the farmers’ profit margin positively by eliminating unwanted chain actors from the chain. Thus, huge emphasis should be given to cooperative development on the study area.

Key words: Benefit share, Market supply, Value Chain, Ordinary Least Squares, Farmers marketing organization (FMOS)
 

Cite This Article As: Kumilachew A., Zekariyas S., Abush T., Mesfin H (2020). SOYBEAN (Glycine max (L.)  Merril) VALUE CHAIN ANALYSIS IN CASE OF JIMMA ZONE, SOUTHWESTERN ETHIOPIA. Inter. J. Econ. Bus. Manage. 8(1): 1-10