Market Chain Analysis Of Honey Production. The Case Of Adeaberga District West Shewa Zone, Oromia Regional State, Ethiopia

Abstract

This study was initiated to analysze of honey market chain in specific area of Adea Berga district West Shewa zone of Oromia region. The study was focus on the specific objectives of assessing the honey marketing channels, analyses the structure, conduct and performance of honey marketing and identifying of factors affecting honey market supply in Adea Berga district. Both primary and secondary data were used in this study. The secondary data was collected from the district and different websites published and unpublished sources. Primary data was collected from 120 sample household of honey producers and 12 traders which were selected by stratified sample random sampling system. The major actors of honey market channels of the area were producers, wholesalers, processors (tej makers) and consumers. No brokers observed during survey of the honey market channels. The structure, conduct and performance approach were used to evaluate honey market structure, conduct and performance. Linear regression econometrics model was used to analyze factors affecting honey market supply. The result of S-C-P analysis indicates weak oligopoly. Regarding the structure of the market; market transparency; market concentration, industry maturity, barriers to entry were some of the bases to be considered. Most of the respondent answer buying price was set by the honey market supply by negotiation which is seen with social cries and increases of other commodities. Most of traders collects the selling price information from each other’s. and the rest of the respondent sold their honey depending on the increase of demand by increase the price of it. About 27.3% of total gross marketing margins were added to honey price when it passes different market channels. From total gross marketing margin about 18.2% was gross margins of wholesalers and 9.1% was that of retailers. The highest profitable is the retailers. The Linear regression result revealed that honey market supply was significantly and positively affected by education level, price of honey and quantity of honey. The study recommended that fulfilling infrastructure for small scale farmers may improve the problem honey production and market chain in of the market surplus