This document summarizes a study analyzing the vegetable market chain in Dugda Woreda, Oromia Region, Ethiopia. The study identified key actors such as input suppliers, producers, brokers, wholesalers, retailers and consumers. It found five marketing channels for vegetables, with Channel II dominating at 74.2% of the market. Total gross margins were 30% with producers receiving 70%. Wholesalers earned the highest profits. Challenges included an oligopolistic market structure, lack of storage, high costs, and price fluctuations. Opportunities included suitable agriculture and potential for agro-processing.

1. 4/21/2021 Analysis of Vegetable Market Chain in Dugda Woreda, East Shoa Zone, Oromia Region, Ethiopia
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Analysis of Vegetable Market Chain in Dugda
Woreda, East Shoa Zone, Oromia Region, Ethiopia
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Analysis of Vegetable Market Chain in Dugda
Woreda, East Shoa Zone, Oromia Region, Ethiopia
Setegn, Dawit
URI: http://localhost:80/xmlui/handle/123456789/12468
Date: 2015-06
Abstract:
This study is aimed at assessing vegetable market chain in Dugda Woreda, Oromia Region oj Ethiol'ia(ocusing
on tomato and onion products. Irrigated vegetable production is increasing with pop Illation grOlvth and
changes in consumption habits in Ethiopia creating business 0pp0i'lunity Jor many actors along the market
chain, despite number oj production and marketing constraints. Analysis oj marketing peljormance oj vegetable
plays an important role in an ongoing or Juture market development plan. This study aimed at analyzing the
market chain of vegetable Jor Dugda Woreda with the specific objectives of identifoing the key vegetable
marketing aclOrs and channels: examining market structure oj major actors: assessing the market peljormance
Jar key vegetable markeling aclors and channels by quantifoing costs and profit margins: and identifying key
production and marketing constraints and opportunities Jaced by smallholders. The data was generated by
household survey using a pre-tested structured questionnaire, key in/ormanl interview, Jocus group discussions,
semi structured questionnaires and checklists. This was supplemented by secondcu), data collected from
different published and unpublished sources. The data analyzed using SPSS version 20 and summarized info
descriptive formals slich as frequ encies, percentages, means and standard deviation. Besides, Structure,
Conduct and Performance (SCP) model employed to evaluate Ihe slructure and peljormance oj vegetable market.
The study finding shows that vegetable market chain actors are broadly classified into Ihree: input suppliers:
direcl market actors (producers, brokers, Jarmer traders, wholesalers, relailers and consllmers): and enablers
(extension service providers & credit providers). Vegetable producers sell their products to different market
intermediaries andfinal consumers. About five vegetable marketing channels were idenlified. The total amollnt
oj vegetable that was transacted through these marketing channels in 201-1115 was 32,010 quintals. Chunnel II
was Jound to be the dominant lIlarkeling channel in terms oj volume oj vegetable supply, where about 23,752
qllintals oj vegetable (74.2% of the total vegetable) was supplied to the market. Channel {II was the second
dominant market supplier, where about 6,786 quintals oj vegetable (21.2%) supplied through this channel. The
study result also shows that the total gross marketing margin was 30% with producer participation margin oj
70%. The markel intermediaries incurred different marketing costs such as packing, sorting, transportal ion,

2. 4/21/2021 Analysis of Vegetable Market Chain in Dugda Woreda, East Shoa Zone, Oromia Region, Ethiopia
etd.aau.edu.et/handle/123456789/12468 2/3
loading and unloading. Central wholesalers obtain relatively highest profit in channel /I and 1/1, which
amounted to Birr 204,827 and 58,675, respectively. The study result signifies that thefirst Jour largest volumes
of vegetable purchased by traders (CR,) constilule 50% of market share. which indicates the market structure Jor
vegetable is strongly oligopolislic. OLS regression results also revealed that there are econamies oj scale Jor
wholesalers at Meki market, which clearly indicates the presence oj barrier to entry/exit Jor wholesalers in the
market. Opportlll1ilies idenlified Jor vegetable production include: existence oj groundwater, convenient agro-
ecology and ideally appropriate for agro-processing induslries. On Ihe other hand, challenges recognized for
vegetable market chain includes: oligopolislic market structure, absence qf storage Jacililies, soil salinity,
overutilizatioll oj inputs (fertilizers), increasing cost oj inputs, lack of il1lproved seeds and chemicals
(insecticides and jill7gicides), price fluc tuatian, and high markel involvemenl oj brokers. Policy implications
drawn from the study findings necessitate legalizing and supporting actors in the local vegetable markets,
creating access 10 accurate and regular nwrkel inJorlllation and technical support to producers on crop
diversification. Keywords: Vegerable, market chain, market margin, OrdinOlJI Least Square, challenges.
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