Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia

Oliyad Sori; Hika Wana

doi:doi:10.11648/j.aff.20190804.11

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Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia

Oliyad Sori, Hika Wana

Published in Agriculture, Forestry and Fisheries (Volume 8, Issue 4)

Received: 16 July 2018 Accepted: 15 August 2019 Published: 30 August 2019

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Abstract

Marketing inefficiencies and low coordination of groundnut value chain are the main problems though Digga district is potential in groundnut production. The study was conducted to analyze the profitability and value chain assessment of groundnut in Digga district of Oromia region, Ethiopia. More specifically, the study identified value chain actors, their respective roles, maps the value chain, and assesses the performance of groundnut production in the area. Primary data were collected through a survey using pre-tested semi-structured questionnaire and through key informant interview using checklists and generated from randomly sampled 123 groundnut producers, 28 traders and 25 consumers. The major actors of groundnut value chain were: input suppliers, producers, traders, processors and consumers. Two-stage sampling procedure was employed to draw sample of groundnut producers. Digga districtwas selected purposively based on the potential it has for groundnut production in the zone. In the first stage, from kebeles which produce groundnut, 4 kebeles were randomly selected. In the second stage, 123 samples of household heads were randomly selected from total groundnut producers in the district and the sample households were drawn randomly from each kebele based on probability proportional to size sampling techniques. Producers’ highest gross marketing margin was 86.12% in channel III and highest total gross margin is 19.93% in channel IV while 13.88% is the lowest total gross margin in channel III. Cost incurred in groundnut production was 6588 Birr per Hectare and the gross income obtained from groundnut production was 9,600 Birr per Hectare and net income of the product was 3012 Birr per Hectare which shows groundnut production in Digga district is profitable. Opportunities and constraints of groundnut profitability and value chain were identified at each stage of value chain like input supply, production, processing, marketing and consumption of groundnut. The study recommended that farm machineries, improved seed of groundnut, market facilities and market outlets should be provided for farmers for insuring larger production and selling thereby to enhance profit of groundnut production in the study area.

Published in	Agriculture, Forestry and Fisheries (Volume 8, Issue 4)
DOI	10.11648/j.aff.20190804.11
Page(s)	81-88
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Groundnut, Profitability, Gross Margin, Digga

References

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APA Style

Oliyad Sori, Hika Wana. (2019). Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia. Agriculture, Forestry and Fisheries, 8(4), 81-88. https://doi.org/10.11648/j.aff.20190804.11

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ACS Style

Oliyad Sori; Hika Wana. Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia. Agric. For. Fish. 2019, 8(4), 81-88. doi: 10.11648/j.aff.20190804.11

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AMA Style

Oliyad Sori, Hika Wana. Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia. Agric For Fish. 2019;8(4):81-88. doi: 10.11648/j.aff.20190804.11

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@article{10.11648/j.aff.20190804.11,
  author = {Oliyad Sori and Hika Wana},
  title = {Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia},
  journal = {Agriculture, Forestry and Fisheries},
  volume = {8},
  number = {4},
  pages = {81-88},
  doi = {10.11648/j.aff.20190804.11},
  url = {https://doi.org/10.11648/j.aff.20190804.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.aff.20190804.11},
  abstract = {Marketing inefficiencies and low coordination of groundnut value chain are the main problems though Digga district is potential in groundnut production. The study was conducted to analyze the profitability and value chain assessment of groundnut in Digga district of Oromia region, Ethiopia. More specifically, the study identified value chain actors, their respective roles, maps the value chain, and assesses the performance of groundnut production in the area. Primary data were collected through a survey using pre-tested semi-structured questionnaire and through key informant interview using checklists and generated from randomly sampled 123 groundnut producers, 28 traders and 25 consumers. The major actors of groundnut value chain were: input suppliers, producers, traders, processors and consumers. Two-stage sampling procedure was employed to draw sample of groundnut producers. Digga districtwas selected purposively based on the potential it has for groundnut production in the zone. In the first stage, from kebeles which produce groundnut, 4 kebeles were randomly selected. In the second stage, 123 samples of household heads were randomly selected from total groundnut producers in the district and the sample households were drawn randomly from each kebele based on probability proportional to size sampling techniques. Producers’ highest gross marketing margin was 86.12% in channel III and highest total gross margin is 19.93% in channel IV while 13.88% is the lowest total gross margin in channel III. Cost incurred in groundnut production was 6588 Birr per Hectare and the gross income obtained from groundnut production was 9,600 Birr per Hectare and net income of the product was 3012 Birr per Hectare which shows groundnut production in Digga district is profitable. Opportunities and constraints of groundnut profitability and value chain were identified at each stage of value chain like input supply, production, processing, marketing and consumption of groundnut. The study recommended that farm machineries, improved seed of groundnut, market facilities and market outlets should be provided for farmers for insuring larger production and selling thereby to enhance profit of groundnut production in the study area.},
 year = {2019}
}

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TY  - JOUR
T1  - Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia
AU  - Oliyad Sori
AU  - Hika Wana
Y1  - 2019/08/30
PY  - 2019
N1  - https://doi.org/10.11648/j.aff.20190804.11
DO  - 10.11648/j.aff.20190804.11
T2  - Agriculture, Forestry and Fisheries
JF  - Agriculture, Forestry and Fisheries
JO  - Agriculture, Forestry and Fisheries
SP  - 81
EP  - 88
PB  - Science Publishing Group
SN  - 2328-5648
UR  - https://doi.org/10.11648/j.aff.20190804.11
AB  - Marketing inefficiencies and low coordination of groundnut value chain are the main problems though Digga district is potential in groundnut production. The study was conducted to analyze the profitability and value chain assessment of groundnut in Digga district of Oromia region, Ethiopia. More specifically, the study identified value chain actors, their respective roles, maps the value chain, and assesses the performance of groundnut production in the area. Primary data were collected through a survey using pre-tested semi-structured questionnaire and through key informant interview using checklists and generated from randomly sampled 123 groundnut producers, 28 traders and 25 consumers. The major actors of groundnut value chain were: input suppliers, producers, traders, processors and consumers. Two-stage sampling procedure was employed to draw sample of groundnut producers. Digga districtwas selected purposively based on the potential it has for groundnut production in the zone. In the first stage, from kebeles which produce groundnut, 4 kebeles were randomly selected. In the second stage, 123 samples of household heads were randomly selected from total groundnut producers in the district and the sample households were drawn randomly from each kebele based on probability proportional to size sampling techniques. Producers’ highest gross marketing margin was 86.12% in channel III and highest total gross margin is 19.93% in channel IV while 13.88% is the lowest total gross margin in channel III. Cost incurred in groundnut production was 6588 Birr per Hectare and the gross income obtained from groundnut production was 9,600 Birr per Hectare and net income of the product was 3012 Birr per Hectare which shows groundnut production in Digga district is profitable. Opportunities and constraints of groundnut profitability and value chain were identified at each stage of value chain like input supply, production, processing, marketing and consumption of groundnut. The study recommended that farm machineries, improved seed of groundnut, market facilities and market outlets should be provided for farmers for insuring larger production and selling thereby to enhance profit of groundnut production in the study area.
VL  - 8
IS  - 4
ER  -

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Author Information

Oliyad Sori

Department of Agribusiness and Value Chain Management, Wollega University, Shambu, Ethiopia
Hika Wana

Department of Agricultural Economics, Wollega University, Shambu, Ethiopia

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Oliyad Sori, Hika Wana. (2019). Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia. Agriculture, Forestry and Fisheries, 8(4), 81-88. https://doi.org/10.11648/j.aff.20190804.11

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ACS Style

Oliyad Sori; Hika Wana. Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia. Agric. For. Fish. 2019, 8(4), 81-88. doi: 10.11648/j.aff.20190804.11

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AMA Style

Oliyad Sori, Hika Wana. Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia. Agric For Fish. 2019;8(4):81-88. doi: 10.11648/j.aff.20190804.11

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@article{10.11648/j.aff.20190804.11,
  author = {Oliyad Sori and Hika Wana},
  title = {Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia},
  journal = {Agriculture, Forestry and Fisheries},
  volume = {8},
  number = {4},
  pages = {81-88},
  doi = {10.11648/j.aff.20190804.11},
  url = {https://doi.org/10.11648/j.aff.20190804.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.aff.20190804.11},
  abstract = {Marketing inefficiencies and low coordination of groundnut value chain are the main problems though Digga district is potential in groundnut production. The study was conducted to analyze the profitability and value chain assessment of groundnut in Digga district of Oromia region, Ethiopia. More specifically, the study identified value chain actors, their respective roles, maps the value chain, and assesses the performance of groundnut production in the area. Primary data were collected through a survey using pre-tested semi-structured questionnaire and through key informant interview using checklists and generated from randomly sampled 123 groundnut producers, 28 traders and 25 consumers. The major actors of groundnut value chain were: input suppliers, producers, traders, processors and consumers. Two-stage sampling procedure was employed to draw sample of groundnut producers. Digga districtwas selected purposively based on the potential it has for groundnut production in the zone. In the first stage, from kebeles which produce groundnut, 4 kebeles were randomly selected. In the second stage, 123 samples of household heads were randomly selected from total groundnut producers in the district and the sample households were drawn randomly from each kebele based on probability proportional to size sampling techniques. Producers’ highest gross marketing margin was 86.12% in channel III and highest total gross margin is 19.93% in channel IV while 13.88% is the lowest total gross margin in channel III. Cost incurred in groundnut production was 6588 Birr per Hectare and the gross income obtained from groundnut production was 9,600 Birr per Hectare and net income of the product was 3012 Birr per Hectare which shows groundnut production in Digga district is profitable. Opportunities and constraints of groundnut profitability and value chain were identified at each stage of value chain like input supply, production, processing, marketing and consumption of groundnut. The study recommended that farm machineries, improved seed of groundnut, market facilities and market outlets should be provided for farmers for insuring larger production and selling thereby to enhance profit of groundnut production in the study area.},
 year = {2019}
}

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TY  - JOUR
T1  - Profitability and Value Chain Assessment of Groundnut in Digga District of East Wollega Zone, Oromia National Regional State, Ethiopia
AU  - Oliyad Sori
AU  - Hika Wana
Y1  - 2019/08/30
PY  - 2019
N1  - https://doi.org/10.11648/j.aff.20190804.11
DO  - 10.11648/j.aff.20190804.11
T2  - Agriculture, Forestry and Fisheries
JF  - Agriculture, Forestry and Fisheries
JO  - Agriculture, Forestry and Fisheries
SP  - 81
EP  - 88
PB  - Science Publishing Group
SN  - 2328-5648
UR  - https://doi.org/10.11648/j.aff.20190804.11
AB  - Marketing inefficiencies and low coordination of groundnut value chain are the main problems though Digga district is potential in groundnut production. The study was conducted to analyze the profitability and value chain assessment of groundnut in Digga district of Oromia region, Ethiopia. More specifically, the study identified value chain actors, their respective roles, maps the value chain, and assesses the performance of groundnut production in the area. Primary data were collected through a survey using pre-tested semi-structured questionnaire and through key informant interview using checklists and generated from randomly sampled 123 groundnut producers, 28 traders and 25 consumers. The major actors of groundnut value chain were: input suppliers, producers, traders, processors and consumers. Two-stage sampling procedure was employed to draw sample of groundnut producers. Digga districtwas selected purposively based on the potential it has for groundnut production in the zone. In the first stage, from kebeles which produce groundnut, 4 kebeles were randomly selected. In the second stage, 123 samples of household heads were randomly selected from total groundnut producers in the district and the sample households were drawn randomly from each kebele based on probability proportional to size sampling techniques. Producers’ highest gross marketing margin was 86.12% in channel III and highest total gross margin is 19.93% in channel IV while 13.88% is the lowest total gross margin in channel III. Cost incurred in groundnut production was 6588 Birr per Hectare and the gross income obtained from groundnut production was 9,600 Birr per Hectare and net income of the product was 3012 Birr per Hectare which shows groundnut production in Digga district is profitable. Opportunities and constraints of groundnut profitability and value chain were identified at each stage of value chain like input supply, production, processing, marketing and consumption of groundnut. The study recommended that farm machineries, improved seed of groundnut, market facilities and market outlets should be provided for farmers for insuring larger production and selling thereby to enhance profit of groundnut production in the study area.
VL  - 8
IS  - 4
ER  -

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