Analysis of Apple Fruit Value Chain in Southern Ethiopia; the Case of Chencha District

Abstract

Ethiopia imported 1,328 tons of apple fruit valued 1,776,000 US dollar in 2016 and the import grows by 27% yearly. The study assessed the performance of apple fruit value chain produced in Chencha district and identified constraints along the chain. Multi stage sampling technique was employed to select 226 apple fruit producers from the district. Snowball sampling method was employed to collect primary data from the chain actors. A total of 4 collectors, 5 cooperatives, 2 assemblers, 2 wholesalers and 15 retailers were interviewed to pinpoint the performance of the chain. Descriptive statistics was used to analyze the data and supplemented by qualitative data obtained from the key informants and focus group discussion. Accordingly, highest marketing cost per kuintal of apple fruit was incurred by cooperatives (468.35 birr). About 97%, 71% and 54% of marketing cost of cooperatives, small collectors and district assemblers accounted to market searching cost respectively. Producers were more profitable and obtained the highest producers gross marketing margin when they sold apple through cooperatives. Poor agronomic management, lack of inputs, lack of organic certification, lack of proper harvesting and post-harvest handling, theft and rodent were major production constraints identified. Whereas unripe fruit trade, illegal trade, seasonality of supply and poor market coordination were major marketing constraints in the chain. Wholesale traders play a key role through balancing and controlling the supply and demand of the fruit. Therefore, it is necessary to create highland fruit marketing union to alleviate demonstrated marketing constraints. The government should work to alleviate the production constraints so that producers can be benefited from apple fruit production.