Abstract:
Bamboo plays a big role in enhancing the quality of life in the community, but the
contribution of bamboo to local and national economies has been below its potential
because there is less bamboo value chain in the study area as well as at the national level.
The study is to examine the value chain of bamboo in the Dire Enchini district. It also
investigates actors and their functions in the value chain of bamboo production and
consumption, to identify the factors that affect bamboo market supply and examine the
market structure, conduct, and performance of bamboo products in the study area. A
three-stage sampling technique is employed to select specific bamboo producer
households from the study area. Initially, the district was chosen on purpose from among
22 zonal woredas. Secondly, two potential bamboo-producing kebeles were selected
purposively from the 20 kebeles. Finally, representative households were selected by
random sampling techniques from two kebeles. Key informant interviews, focus groups,
and market assessments were used to gather primary data from 140 household heads who
harvest bamboo, as well as 5 local traders, 6 processors, and 15 end users in both Ambo
and Holeta towns. To support and validate the findings, field observations and
unstructured conversations were also used. The concentration ratio of the market
structure demonstrates the strong oligopolistic nature of the bamboo market, and
marketing margins show that the farmers obtain more benefits than any other market
actor. The value chain of bamboo products was found to have three market channels. The
first channel was the middle one that connected producers and end users directly
(12.56%), whereas the second channel was the shortest one (7.46%) that producers,
processors, and consumers contacted each other, and finally, the third channel covered a
high percentage (79.98%) that connected bamboo harvesters, traders, processors, and
consumers. Consumers benefited from the first channel, relatively fair distribution
occurred in the second channel, and farmers benefited more from the third channel.