Value Chain Analysis of Bamboo in Dire Enchini District, West Shoa Zone, Oromia Region, Ethiopia

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.