Demas Research
Demas Research
Demas Research
MANAGEMENT
BY:
1.DEMAS LAKEW RU/0692/13
2.RIDO JEBAL RU/ /13
3.SERKALEM BOGALE RU/ /13
BONGA UNIVERSTIY
JULAY. 2021
BONGA, ETHIOPIA
i
ACKNOWLEDGEMENT
First of all, I would like to express my heartfelt thanks and gratitude to God. Next I would like to
express my gratitude to my advisor HABTAMU A(MSc.) for his guidance, tremendous assist,
understanding, patience, and support at all times. He made this work to be done with his
innovativeness which enriches my experience to a greater extent. His ideas and way of working
is truly remarkable.
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ACRONYMS AND ABBREVIATIONS
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TABLE OF CONTENTS
Contents
ACKNOWLEDGEMENT..................................................................................................................................ii
ACRONYMS AND ABBREVIATIONS............................................................................................................iii
TABLE OF CONTENTS..................................................................................................................................iv
LIST OF TABLE.............................................................................................................................................vi
LIST OF FIGURE...........................................................................................................................................vii
ABSTRACT.................................................................................................................................................viii
1. INTRODUCTION.......................................................................................................................................1
1.1Background of the study.....................................................................................................................1
1.2. Statement of the problem................................................................................................................2
1.3. Objective of the study.......................................................................................................................4
1.3.1 General objectives......................................................................................................................4
1.3.2. Specific objectives of the study..................................................................................................4
1.4. Research Questions..........................................................................................................................4
1.5. The Scope of the Study.....................................................................................................................4
1.6. Significance of the study...................................................................................................................4
2. LITERATURE REVIEW................................................................................................................................5
2.1. Concepts and definitions..................................................................................................................5
2.1.1. Benefit of Value Chain in Agricultural Sector.............................................................................6
2.1. 2 Overview of Production and Consumption of Mango in Ethiopia..............................................6
2.1.3. Peculiarities of agricultural production and marketing..............................................................6
2.1.4 Value Chain Actors......................................................................................................................7
2.2 Empirical Studies of Value Chain of Agricultural Products.................................................................7
3. METHODOLOGY.......................................................................................................................................9
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3.1. Description of the Study Area...........................................................................................................9
3.2 Sampling Techniques and Sample Size Determination......................................................................9
3.2.1Trader’s sampling technique.....................................................................................................10
3.3 Types and Sources of Data...............................................................................................................10
3.4. Method of data collection..............................................................................................................10
3.5. Method of Data Analysis.................................................................................................................11
4 RESULTS AND DISCUSSION...................................................................................................................12
4.1. Socio-Demographic Characteristics of sample Household..............................................................12
4.1.1 Livelihood and Farming System of the Households.................................................................13
4.1.2 Mango production system.......................................................................................................15
4.1.3 Purpose of mango production.................................................................................................15
4.1.4 Inputs used for mango production..........................................................................................16
4.1.5 Harvesting of mango.................................................................................................................17
4.2 Mango value chain actors and their functions................................................................................17
4.3 Supportive sectors..........................................................................................................................21
4.3.1 Mango marketing channels in the study area..........................................................................22
4.3.2 Opportunities of mango production in study area...................................................................26
4.3.3 Constraints of mango marketing..............................................................................................27
4.4 Opportunities of mango marketing................................................................................................28
5 SUMMARY, CONCLUSION AND RECOMMENDATIONS...........................................................................29
5.1 SUMMARY AND CONCLUSION.........................................................................................................29
5.2 RECOMMENDATION........................................................................................................................29
REFERENCE................................................................................................................................................30
APPENDIX..................................................................................................................................................32
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LIST OF TABLE
Table 1: Socio-demographic characteristics of sample households....................12
Table 2: Livelihood of sample respondents.......................................................14
Table 3: Farming system of sample households................................................14
Table 4: Mango production systems in the study area......................................15
Table 5: Purpose of mango production in the study area..................................15
Table 6: Mango varieties used by households in the study area........................16
Table 7: Inputs used for mango production in study area..................................16
Table 8: Harvesting stages of mango in the study area......................................17
Table 9:Constraints Of mango production in study area............................19
Table 10: Constraints of mango marketing in the study area.............................27
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LIST OF FIGURE
Figure 1.Marketing channel of mango...............................................24
Figure;1value chain actors......................................................21
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ABSTRACT
Mango is one of the most important tropical and subtropical fruits of the world and is popular
both in fresh and processed forms. It is called as the king of fruits on account of its nutritive
value, taste, attractive fragrance and health promoting qualities. The study was conducted in
Gimbo Woreda in kaffa zon. It was initiated with the general objective of analyzing the mango
value chain, with the specific objective of identifying the value chain actors and their functions in
the mango value chain, identifying the marketing channels along the mango value chain, and
identifying the constraints and opportunities of mango production and marketing were the
primary objectives of the study. The study was used quantitative and qualitative types of data.
Both primary and secondary sources of data were used. For the achievement of the objective of
the study,Gimbo Woreda was purposively selected based on the extent of mango production. In
Gimbo Woreda, there are 29 Kebeles. Out of these Kebele, 9 Kebele produce mango. Among
those Kebele, two Kebele, namely, sheta and kiyakela Kebele were selected randomly.About 814
mango producers were selected randomly from the two kebele administrations proportionally
and the sample size becomes 89.Descriptive statistics was used to analyze the data. The major
problems of mango production and marketing in the study area are lack of technology, small size
of land, limited supply of improved mango variety, seasonality, weather related problems,
perishability of mango, lack of proper storage and postharvest management, low price of mango,
and so on. In general Mango sub-sector is a good entry point for tackling poverty and that the
market for mangoes is significant and growing in the study area. Mango is one of potential fruit
crop which has a significant contribution to the livelihood of small scale farmers and creates
business and employment opportunities for the many firms and commercial agents in the study
area. The study has further indicated potential constraints and opportunities related with the
mango production and marketing in the study area.Key words: Mango, value chain, value chain
Analysis, Gimbo worda
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1. INTRODUCTION
1.1Background of the study
Mango (Mangiferaindica) is a fleshy stone fruit belonging to the panes Mangifera, consisting of
numerous tropical fruit trees in the flowering plant family Anacardiaceae. Mango is native to
South Asia from where it was distributed worldwide to become one of the most cultivated fruits
in the tropics.Mango serves as a fruit crop and as a subsistence crop for family farms. As it
ripens at the end of the dry season and at the start of the rainy season, the mango is a
fundamental source of nutrition for rural populations (Vayssières et al., 2012).
Mango is produced in most frost-free tropical and sub-tropical climates. More than 85 countries
in the world cultivate mango.Mango is one of the most widely cultivated and globally traded
tropical and subtropical fruit trees in the world (Clarke, et.al, 2011).
Mango is a king of fruits due to its attractive appearance, delicious taste, excellent flavor, high
nutritional value, variety diversification, year-round production and wide adaptability on
different growing conditions. Mango is commercially grown in 90 countries and known as the
most important tropical fruit crop of Asia. It is also considered as fruit of excellence and thus has
prominent position among commercial fruits grown in Ethiopia. The major production countries
are India, China, Thailand, Indonesia, Philippines, Pakistan, and Mexico. The total production
area of mango in the world is around 3.69 million hectares. The total amount of mango
production in the world is around 35 million tons (FAO, 2011).
Fruits are a versatile product that, depending on need, can be consumed within the household or
sold. Marketing fresh and processed fruit products generates income which can act as an
economic buffer and seasonal safety net for poor farm households. Tropical and sub-tropical fruit
can make a significant direct contribution to the subsistence of small-scale farmers by providing
locally generate nutritious food that is often available when other agricultural crops have not yet
been harvested. Diversification into fruit production can generate employment and enable small-
scale farmers to embark on a range of production, processing and marketing activities to
complement existing income-generating activities (Clarke et al., 2011).
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In Sub-Saharan Africa (SSA), growing both domesticated and wild fruit species on farms
diversifies the crop production options of small-scale farmers and can bring significant health,
ecological and economic revenues (Keatinge et al., 2010).
Gimbo woreda in the Gimbo administrative zone of the sowth western Region of Ethiopia is
known for its high potential in tropical fruit production (mainly mango, banana, lemon and
papaya). The area contributes 10% to 15% of the estimated 135,000 tons of national fruit
production. However, its potential is much higher and supply to the Addis Ababa market could
be as high as 40% of the total amount delivered to the Capital City. Mango is the largest
produced tropical fruit in kaffa Zone,sowth west Ethiopia, production of mango at Gimbo
Woreda is 126,800qt and total area coverage is 634 ha (Woreda Gimbo of Agriculture and Rural
Development,2009).
Presently, mango sales contribute 10% of the household income in Gimbo Woreda. The
estimated total annual mango production in the Woreda is 32,384tons. Out of this, 25% (8,096
tones) is the estimated post-harvest loss. Thus the marketable amount of mango per annum from
the Woreda is estimated to be 24,288 tons. From the potential marketable amount, only 1,440
tons (6%) are formally marketed through Addis Ababa fruits and vegetables wholesalers.
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the Woreda. Getachew (2014) reveals that wholesalers (supplying the bulk to consumers) are
making the highest net margin as they have short channels between producers and consumers,
and as they relatively charge a higher price using their market power.Getachew (2014).
Mango is one of potential fruit crop produced in Gimbo Woreda in kaffa zone which has a
significant contribution to the livelihood of small scale farmers in the area thereby contributing
to the income of the majority of smallholder producers as well as ensuring of food security.
Moreover, mango is playing a crucial role in creation of business and employment opportunities
for the many firms and commercial agents in the area. Although mango production in Gimbo
Woreda in south west Ethiopia is high, mango value chain analysis has not yet been conducted
and analyzed for the target area even if there is high extent of mango production and transaction
of mango from the production point to the different spatial markets.Ayelech Tadesse, 2011.
A study by Abel (2011) on farmer’s involvement on value added produce finds out several issues
limiting the exploitation and maximization of value-added products. Some of them are growers
sold all their produce, and therefore did not see a clear need to become involved in adding value
to the remaining produce, lack of resources preventing them from adding value to their foods, the
lack of physical facilities to process food, the absence of financial means, sanitary and other
requirements are currently impeding many farm operators to fully optimize or maximize their
food production. And suggested that the involvement of government to assist different growers
to become beneficiary from their produces.
Value chain study conducted on mango by Dendenaet al. (2009) indicated that the subsector
faces some challenges. Among others: highly disorganized and fragmented industry with weak
value chain linkages, long and inefficient supply chains, inadequate information flows and lack
of appropriate production are explained as the major problems. These inspired the researcher to
conduct value chain analysis of mango on the study area and by believing that value chain
analysis is essential as it is a powerful diagnostic tool that can identify critical issues and
blockages for specific target groups – and provides a framework for interventions to change the
circumstances of the poor resource
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1.3. Objective of the study
1. What are the marketing channels along mango value chain in the study area?
2. What are the constraints and opportunities of mango production and marketing in the
study area?
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2. LITERATURE REVIEW
2.1. Concepts and definitions
A value chain is a chain of activities. Products pass through all activities of the chain in
sequence and at each activity the product gains some value. The chain of activities gives the
products more added value than the sum of added values of all activities. It is important not to
mix the concept of the value of the product with the costs of producing it (ErikHempel, 2010).
A value chain describes all the activities, functions, roles and organizations involved in the
production, delivery and consumption of products from raw materials to final consumption
and back again through reverse flows (Hastings et al., 2016). Colloquially, this system is
often described as ‘farm gate to plate’, or ‘beef to burger’, simple descriptors for what are
dynamic and complex systems (Hearn Shaw and Wilson, 2013).
Value chain analysis (VCA) can be a useful tool as a firm seeks to achieve competitive
advantage. It describes the roles of the different actors involved in the production and trade of a
commodity, and the costs, benefits, opportunities and/or constraints accrued/faced by each actor;
and it also describes the relationships between these different actors in the chain. A value chain
is a way of conceptualizing the activities that are needed in order to provide a product or service
to a customer. It depicts the way a product gains value (and costs) as it moves along the path of
design, production, marketing, delivery, and service to the customer.( Value Chain Analysis and
Competitive Advantage Prescott C.( Ensign 2012)
However, value chains can also be seen as a vehicle by which new forms of production,
technologies, logistics, labor processes and organizational relations and networks are introduced.
(Jacques H.Trienekens, 2011)
Value chain actors: The chain of actors who directly deal with the products, i.e. produce,
process, trade and own them.
Value chain supporters: The services provided by various actors who never directly deal with
the product, but whose services add value to the product.
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2.1.1. Benefit of Value Chain in Agricultural Sector
Value chain is useful as a poverty reduction tool if it leads to increase on and off farm rural
employment income. Increase agricultural productivity alone is not sufficient route out of
poverty within the context of globalization increasing natural resource degradation. A focus on a
post-harvest activities differentiated value added products and increasing likes with access to
market with goods produced by low income producers would appear to be the strategy open to
small holders (Lundyetal,2002). Adding value does not necessarily involve altering a product. It
can be the adoption of new production or handling methods that increase new farmer’s capacity
and reliability in meeting market channel. Value added can almost anything that enhances the
dimension of business. The key is that the value adding activity must increase or stabilize profit
margin and the output appeal the consumer (AAFC, 2004).
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(buyers) particularly in the perishable products market, the bargaining position of farmers are
usually week. Beside the market structure, farmers and merchants may not have equal
information from central transaction.
Mango is one of perennial crop grow under lowland agro ecology with a minimum moisture
requirement. Sole planting is the major mango production practice adopted in the study area.
Majority of sample respondents in the area practice sole planting of mango because of the
competition for nutrient and they believe that mango suppresses the growth performance of other
crop. During the early stage of maturity, farmers intercrop mango with other perennial crops and
coffee at home garden for seedling purpose. Then, seedling of mango is transported from
backyard garden to the outside in order to minimize nutrient competition and to provide canopy
during sunny season as mango tolerates dry weather.
Study by Ayelech (2011) on fruits market chain analysis reported that the small scaling
deduction, quoting of lower prices, lack of market information and deficiency in capital and
credit availability are the major problems in the study area.
A study by Abel (2011) on farmers‟ involvement on value added produce finds out several
issues limiting the exploitation and maximization of value-added products. Some of them are
growers sold all their produce, and therefore did not see a clear need to become involved in
adding value to the remaining produce, lack of resources preventing them from adding value to
their foods, the lack of physical facilities to process food, the absence of financial means,
sanitary and other requirements are currently impeding many farm operators to fully optimize or
7
maximize their food production. And suggested that the involvement of government to assist
different growers to become beneficiary from their produces.
A study made by Emily and John (2010) focused on the Banana value chains in Central Africa.
The results of the study revealed that, the coordination between and among value chain actors
were characterized by weak linkages within the banana value chains with poor integration of
value chain actors and minimal involvement with regional markets and high-value domestic
chains. Finally, it was recommended that collective marketing, penetration in to high-value
chains and improved processing techniques may provide in increasing chain participation.
The result revealed that the government does not affect much to neither the operation nor the
development of the chain and also confirmed that there are no straight policy barriers that are
hampering the conditions of smallholders. Regarding the problems, the result revealed that bad
seed quality is the major challenge followed by difficulty of getting loans and lack of
investments in case of production and poor road network being the biggest infrastructural issue
in potato production. Thus, poor seed quality, low
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3. METHODOLOGY
3.1. Description of the Study Area
Gimbo Woreda is one of the Woreda in kaffa zone south west region of Ethiopia. This sutdy
will be in bonga bordered on the south west by the kiyakela special Gimbo Woreda.
.Sample sizefor the study will be determined by using appropriate sample size determination
technique using the total population of the sample kebeles. The determination of sample size will
resolve using Yamane (1967), simplified formula to calculate the sample size with the desired
confidence level of 90%.
n = 89
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e: is the precision level. A 90% confidence level is taken and e= 0.01, thenA total of 89
producer’s respondents was included in the study. The sample kebeles has different household
size. Thus it will be based on population proportionate to size to select sample from each
kebeles.
n1= 261×89÷814
n2=553x89÷814
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3.4. Method of data collection
The main element of data collection of this study was questioning and interviewing for the
collection of primary data from producers, wholesalers, retailers and consumers. The Secondary
data was collected from published and unpublished reports of different level of agricultural
bureau, reports of central statistical agency
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4 RESULTS AND DISCUSSION
4.1. Socio-Demographic Characteristics of sample Household
Table 1: Socio-demographic characteristics of sample households
Demographic Description Frequency Percentage
character
Sex Male 72 81
Female 17 19
Total 89 100
Marital status Married 73 82
Single 7 8
Divorced 4 4
Widows 5 6
Total 89 100
Education level Illiterate 28 31
Primary 38 43
Secondary 16 18
Above secondary 7 8
Total 89 100
Family size <4 28 32
5-7 35 39
8-10 15 17
>10 11 12
Total 89 100
Age 15-31 5 6
31-45 32 36
46-60 42 47
>60 10 11
Total 89 100
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Source own survey (2021)
The results in (Table1) show that the age of most respondents (47%) fall between 41-60 years
while only 6 % is within the range of 15-25 years. It indicates that more elder categories are
involved in mango cultivation as compared to the higher (> 60) and lower (<25) age groups. The
family number of most respondents (39%) ranged from five to seven while fewer respondents
(12%) had >10 family size. The involvement of such age group and family size in mango
production implies the presence of adequate productive labor to divide for intensive mango
management activities as necessary.
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Table 2: Livelihood of sample respondents
Livelihood system N %
Farming 65 73.0
Farming and trading 22 24.7
Farming and carpenting 1 1.1
Farming and office working 1 1.1
Total 89 100
N= frequency, %= percentage
Source: Survey result (2021)
As depicted in the (Table 2), farming system of the area is dominated by traditional crop-
livestock production system. About 87% of sample respondents practice crop-livestock
production system whereas the remaining 13% practice only crop production. Major plant crops
grown in the area may include maize, teff, haricot bean, ginger, coffee and perennial crops such
as mango, avocado, banana, papaya, orange and root crops such as enset, yam, sweet potato, and
taro are the common crops cultivated in the area. The major livestock animals reared under
mixed farming system of the area may include cattle, sheep, equine, and poultry.
Thus, mixed farming system is the major livelihood system of majority of the sample households
in the study area.
Table 3: Farming system of sample households
Items N %
Crop-livestock production 77 86.5
Only crop 12 13.5
Total 89 100
N=frequency, % = percentage
Source: Survey result (2021)
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4.1.2 Mango production system
Table 4: Mango production systems in the study area
Items N %
Sole planting 58 65.2
Sole planting and intercropping 16 18.0
Intercropping 15 16.8
Total 89 100
N = frequency, % = percentage
The survey result has further revealed that about 65.2%, 18.0%, and 16.8% of sample
respondents practice sole planting, intercropping, sole planting and intercropping, respectively,
as shown in the (Table 4).
Sale 61 68.54
Consumption 28 31.46
Total 89 100
N = frequency, % = percent
This finding is in line with Kinnifesi et al. (2008) who indicated that the dozens of indigenous
fruit tree species although relatively unknown in global markets, are locally of large importance
for food/nutrition security and income generation. Also Ian (2006) reported that canopy of
15
mango is evergreen with a generally spreading habit and heavy canopy of the mango is a source
of shelter and shade for both animals and human
Total 89 100
N = frequency, % = percentage
Source: own Survey result (2021)
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As depicted in (Table 7), about 30.4%, 28.1%, and 20.2% of sample households in the study area
use compost/farmyard manure, water, a combination of compost/farmyard manure and water,
respectively as input for mango production. The survey has further revealed that about 21.3% of
sample households did not use any input for mango production because they assume that mango
do not need any input after it has reached at maturity stage
Harvesting usually starting after fruit dropping-which is principal maturity index. Harvesting
fully ripen, partially ripen and unripe mango is the common stages of harvesting mango in the
study area as shown in the Table 7. The survey has indicated that about 62.92%, 21.35% and
15.73% of households harvest ripe, partially ripe and unripe mango, respectively.
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in each and every stages of the commodity chain. Indirect actors are those who do not have
product claim but, are aligned along the chain for the efficiency of the actors thereby providing
necessary services and supports. The primary/direct actors in mango value chain in Gimbo
Woreda were input suppliers, farmers, traders and consumers. Each of these actors adds value in
the process of changing product title. Some functions or roles are performed by more than one
actor, and some actors perform more than one role.
Input suppliers
These are actors which are engaged in supply and provision of raw materials for mango
production in the area. The involvement of input suppliers in the mango sector of the study area
is not intensive as much. The main reason for this is the low input demand for mango production
and use of locally available inputs instead of the technological one. farmers are still mostly at a
subsistence level with minimal use of production enhancement technologies or inputs. For this
study, the major mango input supplier in the study area is the agricultural extension Centre.
Agricultural extension Centre provides farmers with improved mango variety such as apple
mango, harvesting equipment and technical advice on mango production. This institution brings
improved mango variety from Gimbo woread agricultural research centers and nursery sites and
distributes to the farmers. But, the survey has further indicated that distribution of improved
mango variety and harvesting equipment is not for all farmers because of the limited supply and
provision of mango variety is mainly for comparative analysis of local mango variety against the
improved one.
Producers
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These are small scale farmers who produce mango by using their own resources. They use either
local or improved mango variety to produce and market to the forward actors involved along the
mango value chain. They use locally available inputs such as compost/farmyard manure and
water for mango production so that they produce in organic manner. From the marketing point of
view, they use their own manual labor such as human labor and cart to deliver their produce
either to the local market. They also sale mango at farm gate to mango traders like collectors and
wholesalers. The main value adding activities performed by farmers prior to marketing is the
post-harvest handling activities such as grading and sorting, drying, cleaning, and standardizing.
The primary aim of performing these activities is in order to deliver quality mango to the traders.
They use materials such as basket, mica, plastic bag, sack, cartoon and wooden box
for packaging of mango during marketing. In the production year of
2013 ,it was estimated that 600 quintals of mango were supplied
to the market by the sampled producers.
Local Collectors
These are farmers/mango traders who invest their own capital for mango assembling and part
time traders in assembly markets who collect mango from farmers in village markets for the
purpose of reselling it to wholesalers. They use their financial resources and their local
knowledge to bulk and collect mango from the surrounding area. They collect and assemble
unripe mango in farm gate for 5-7 days and sell at the assembly point to the wholesalers. They
play important role by informing and they do know areas of surplus well. The trading activities
of collectors include buying and assembling, repacking, sorting and selling to wholesale markets.
They often receive cash from wholesalers after or before sell. The survey has further indicated
that all mango collectors in the study area were unlicensed and they begin collecting of mango
prior to peak maturity period. Collecting of mango prior to peak maturity period eventually leads
to decrease in farmers’ utility because farmers were obliged to sell unripe mango with a low
price after it has been harvested. Some concerned bodies and farmers who have awareness are
complaining the action taken by collectors.
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Wholesalers
These are known for purchase of bulky products with better financial and information
capacity and they are licensed mango traders. They purchase mango directly from
farmers/local collectors and indirectly through brokers. They hire part time mango
collectors to collect matured and partially ripe mango at village and this partially ripe
mango is covered with the dry grass at village for 5-7 days. They use Isuzu as major
transport means to deliver mango to other markets. They procure and consign large
amount of mango to the regional markets and to terminal markets. The critical role
played by wholesalers along mango value chain in the area is hiring of a significant
amount of human resource from collection point to the final sell mainly for quality
control activities such as grading and sorting and loading.
Retailers
These are known for their limited capacity of purchasing and handling products with low
financial and information capacity. They purchase mango from Gimbo woreda local market and
sell to consumers and processors. Their product handling capacity is a maximum of 10 quintal of
mango in a given market day. They mainly purchase mango from farmers who bring either ripe
or unripe mango.
Input s They travel at least 26-55 km to deliver mango from the study area to the other
Producer Wholesaler Retailer Consumer
nearby markets aforementioned. Mango retailers in the study area purchase either ripe or unripe
Upplier
mango.
20
Processors
These are private hotels, cafeteria and restaurants and farmers’ mango processing saving and
credit cooperative organized by the non-governmental organization named as One Village One
Product Promotion Project (OVOP). Mango processing in the study area is apparently skewed to
juice making where cafés, restaurants, hotels and juice houses take the leading position in juice
preparation. Processors are known for their changing of fresh fully ripe mango into processed
goods such as juice (hotels, cafeteria and restaurants) and jams (farmers’ cooperative). They
purchase fully ripe mango from retailers and farmers for the processing of juice and jam. They
play role in satisfying form utility of mango consumers in the study area. Hotels, restaurants, and
cafeteria process juice and supply to the consumers in their locality. Farmers’ cooperative
process mango jams and supplies sample of mango jam to their funding organization in Addis
Ababa which in further export to the foreign market. The major inputs that processors use for
processing of juice and jams are fully ripe mango, lemon, sugar, mango processing equipment,
and cup. The main quality requirement of mango processors is purchasing of colorful red yellow
mango, fully ripen, physically undamaged and not bruised mango. The main value adding
activities performed by the mango processors in the study area is packing (mainly by farmers’
cooperative), freezing, and better storage.
Consumers
These are final users of mango emerging from study area. Consumers for this particular study
mean those households who bought and consume mango. They are individual households; they
bought mango for their own consumption only either in processed or fresh form. They buy
mango either in fresh or processed form from farmers, retailers and processors. Consumers
prefer physically undamaged, not bruised, less fibrous and red mango for their immediate
consumption.
Brokers
Brokers play an important role in linking farmers to market and other stakeholders of the
commodity chain while the ability of market accession of farmers is limited and market demand
requires an improvement in quantity as well as diversity of products type. The brokers
21
sometimes go beyond facilitation of transaction and tend to control and fix prices, create price
symmetry and make extra benefits from the process in addition to convincing the producers to
sale their vegetables at the prices set by wholesalers.
The major role of brokers in mango value chain in study area is serving as a bridge for two ways
flow of information from traders to farmers and vice versa. The survey has indicated that brokers
in the study area are village level brokers who facilitate transaction by convincing farmers to sale
his mango and facilitating the process of searching good quality and quantity mango to traders.
Moreover, they inform wholesalers about the harvesting season of mango and whether mango is
reached for harvesting.
This is the governmental institution which provides extension service for small scale farmers in
agricultural sector in the study area. This organization provides various extension services
specifically in mango sector in the study area. The major services which this organization is
providing in the mango sector are mango breeding, provision of improved mango variety,
compost application, harvesting and post-harvest handling, and provision of improved harvesting
material. The assessment has further indicated that despite extension service is providing
technical advice in mango sector, provision of extension service is not covered the whole
farming families in the study area.
This is also governmental organization which provides marketing services in the certain stages
of mango value chain in the study area. This organization provides services like quality control,
licensing, and market place for wholesalers, collectors and retailers. The organization provides
license to wholesalers emerging from the near area and certifies licensed mango traders to secure
their freely involvement in mango transactions. At the same time, the organization prohibits
direct entry of unlicensed mango traders in order to uphold the rights of traders who have been
licensed. In terms of quality control, the organization prohibits traders who collect immature and
unripe mango in rural village.
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Provision of market place to mango retailers is also through this organization. By performing all
this responsibilities, the organization enables mango marketing environment for the traders and
sets rules and regulations guiding traders in the study area. But, the study has further indicated
that some mango traders like collectors act illegally by collecting immature mango and enter into
the business without receiving trade license from the Woreda marketing and cooperative office.
About 7 marketing channels were identified around study area as shown below
V. Producer-----Collector-----Wholesaler----Retailer----Processor----Consumer (118qts)
From above channe producer get the highest portion in the Channel 1 becaus the shortest
Channel is preferable.
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Figure 1.Marketing channel of mango
Producers(600 quntal)
36.7%
Collectors
25%
Wholesalers
6.6%
Retailers
7.5% Processors
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Consumers
Source: Own sketch from survey result (2021)lems of mango production in the
study area are lack of technology, limited supply of improved mango variety, seasonality and
weather related problems, lack of use of credit service, lack of irrigation, pests and diseases,
harvesting and post-harvest handling problems, low level of extension service provision and low
level of knowledge and skill on efficient use of the mango product.
Total 89 100
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Lack of technology:
About 19.1% of sample respondents have replied as there is lack of technology in mango
production. This is related with low level of the use of improved mango production systems such
as mango breeding, use of agro-chemicals which kill plant pests and mango planting systems.
Traditional way of planting mango without keeping spacing is also common problem of mango
production in the study area.
About 16.8% faced due to Limited supply of improved mango variety: The current supply of
improved mango variety is insignificant in comparison to the demand and distributions of
improved mango variety do not covered the whole members of society. Extension Centre
provides only apple mango variety for a limited number of farmers mainly for practical purpose.
From the above repondent about 21.3 % is due Extension service in the area is mainly oriented
on providing technical service for other crops such as cereals and grains production. There is
limited implementation of technical packages in fruit in general and mango sector in particular in
the study area which might reduce the awareness level of farmers on benefits of mango for
income and food security. Moreover, provision of technical packages like mango breeding,
harvesting and postharvest handling, transplanting, and compost/farmyard manure application is
inadequate and significant members of the society are uncovered. This is in line with the Belay
(2003) who indicated that agricultural extension service has failed to bring major impact on
productivity of fruits due to weak link between stakes and associate workloads of extension
agents.
Majority of farmers do not give special attention to mango production because of emphasizing
mainly on production of staple food items like cereals and consider mango as petty agricultural
commodity.it accounts about 33.8% of respondent. This is because of their low level of
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accessing information related with the market demand of mango. Farmers do not have
knowledge on improved production technology, and there is little or no use of fertilizers and
pesticides. A significant portion of mango fruit is goes to loss at farm level due to poor
management. Exploitation of immature mango by household members and tame animals is also a
common limitation of mango production in the area
Despite credit service is accessible to majority of farmers in the study area; there is limited use of
credit for mango production and marketing there is 9 % household. Even if credit is important to
facilitate the introduction of innovative technologies and for input and output marketing
arrangements, majority of the farmers believe that mango can be produced with the zero
economic cost and they do not need to incur cost for mango transaction activities. In addition to
this, credit provision arrangement is not targeted on mango production and marketing systems in
the study area. This is in line with the Ayelech (2011) who indicated that even if microfinance
and governmental and private banks are available in the study area no credit is reported by the
respondents from formal banks. In addition to this, lack of small scale irrigation, seasonality and
weather related problems, pests and disease are also highlighted during the survey period as the
major constraints of mango production in the study area.
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The assignment of crop experts at micro level based on their academic back ground for the
increasing production and commercialization of agricultural sector is also important policy
dimensions. Credit and saving institutions like OMF institution and commercial bank of Ethiopia
are accessible for small scale farmers in the study area which boost their production and
marketing capacity. Gimbo woreda agricultural research Centre is engaged in specializing fruit
and vegetable crops in the catchment areas. This is quite indispensable for research and
development work in fruit sector and provision of improved mango cultivars in the regions.
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market are also constraints that farmers’ facing in the study area. Moreover, lack of agro
processing enterprise is reportedly mentioned as the major constraint of mango marketing in the
study area. Data obtained from mango traders indicated that high post-harvest loss during
transportation and collection point, price volatility, quality management, seasonality of mango;
high transaction cost and illegal entry of some traders are the major problems of mango
marketing. Exporting of mango to the Djibouti is completely blocked due to poor access to cargo
facility at terminal market and lack of cold chain logistic and this is highlighted as potential
constraint of mango marketing. In addition to this, the survey has further revealed that lack of
government support is the major constraint of mango traders in the area.
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5 SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY AND CONCLUSION
Mango sub-sector is a good entry point for tackling poverty and that the market for mangoes is
significant and growing in Ethiopia. Mango is one of potential fruit crop which has a significant
contribution to the livelihood of small scale farmers and creates business and employment
opportunities for the many firms and commercial agents in the study area.. In line with the
objective of the study, value chain analysis indicated that there are direct and indirect actors who
can take their part in each and every stages of the mango value chain in the study area. The
indirect actors of mango value chain in the study area are both governmental and
nongovernmental organizations such as Agricultural Extension Centre, Marketing and
Cooperative Office, Trade and Industry Department, Ministry of agriculture, (JICA/OVOP) and
Omo Micro-Finance (OMF). In addition to this, major value adding activities performed by the
mango value chain actors include provision of inputs, production, sorting, grading, drying,
processing, transporting and distributing which in further adds form, time spatial value of the
product.
Conversely, suitable agro ecological zone with favorable weather conditions, abundance of
locally accessible inputs like compost/farmyard manure, plenty of labor force, fertile arable land
and market, urbanization and rapidly growing population size and availability of credit and
saving institutions is perceived as the potential opportunities of mango production. The major
constraints of mango marketing are lack of cooperative, perishability, lack of proper storage and
postharvest management, low price of mango, inadequacy of transport facility and lack of market
information. Nevertheless, the government policy dimension on commercialization of agriculture
and major emphasis on horticultural and fruit sector stimulates the intensive involvement of
small scale farmers as well as traders in mango marketing.
5.2 RECOMMENDATION
Based on the result obtained from the current study the following are anticipated to be done for
the further improvement of mango value chain in the study area. Capacity building of farmers
on agronomic practices like orchards spacing, technological application, use of improved mango
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varieties and overall farm management are key to the development of the mango value chain
thereby improving mango production system. Capacity building of farmers on agronomic
practices like orchards spacing, technological application, use of improved mango varieties and
overall farm management are key to the development of the mango value chain thereby
improving mango production system.
REFERENCE
Abraham Tegegn Woldesenbet; 2013 ‘’value chain analysis of vegetable;-The case of Haribo
and Kombolcha woredas in Oromia Region, Ethiopia’’ MSc thesis ,
Aoudji, A.K., Adégbidi, A., Agbo, V., Atindogbé, G., Toyi, M.S., Yêvidé, A.S., Ganglo, J.C. and
Lebailly, P., 2012. Functioning of farm-grown timber value chains: Lessons from the
smallholder-produced teak (Tectona grandis Lf) poles value chain in Southern Benin.
Forest Policy and Economics, 15, pp.98-107.
31
Clarke, C., Schreckenberg, K & Haq, N.N., 2011. Fruit Products for Profit; Rural Infrastructure
and Agro- Industries Division Food and Agriculture Organization of the United Nations,
Rome.
DendenaGetachew, EfremLema and Lema Belay, 2009.Fresh mango value chain analysis in
Arbaminch area. Organization of value chain competency. Addis Ababa, Ethiopia.
Duarte Alonso, A., 2011. Farmers' involvement in value-added produce: the case of Alabama
growers. British Food Journal, 113(2), pp.187-204.
Ensign 2012 Value Chain Analysis and Competitive Advantage Prescott C.
FAO, 2011. Utilization of tropical foods: fruit and leaves. Food and nutrition paper, via delle
terme dicaracalla, 00100 Rome, Italy.
Ferdous et al (2012) on value chain analysis for Fish Species in Bangladesh, research.
Hastings, K., Howieson, J. And Lawley, M. (2016).Creating Value Chains: The Role of
Relationship Development. British Food Journal, 118(6), Pp. 1384-1406.
JICA/Japan international cooperative agency study team, 2010. The result of the survey in
quality need and buying behavior of fresh fruit in Hawassa.
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Keatinge, J.D.H., Waliyar F., Jamnadas, R.H., Moustafa, A., Andrade, M., Drechsel P, Hughes
Jd’A, Kadirvel P, Luther K. 2010. Re-learning old lessons for the future of food – by
bread alone no longer: Diversifying diets with fruits and vegetables. Crop Science 50:
S51–S62.
Lumpkin, T.A.K Weinberger and S.Moore, 2015.Increasing income through fruits and
vegetables production opportunities and challenges. Marrakech, Morocco. 10p.
Ouma, E.A. and Jagwe, J., 2010. Banana value chains in central Africa: constraints and
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Tiruneh, D. (2009), value chain development of mango and highland fruits production SNV,
Ethiopia.
APPENDIX
BONGA UNIVERSTY
Department of Agribusiness and value chain management
QUESTIONARY
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Survey Questionnaires
Dear respondents, I kindly request you to support me by giving relevant information on this
questionnaire. Its aim is to get information on mango value chain analysis in Gimbo woreda.
The questionnaire is prepared by student Demas Lakew ,Serkalem Bogale and Rido Jebal who
is a third year Agribusiness and Value Chain Management department student at bonga
University for the purpose of senior research project in partial fulfillment of the Bachelor
Degree of agribusiness and value chain management. Therfore please fill the blank spaces
accordingly.
Questionnaires for respondents
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A. yourself B. friends C. family D. government
C. cooperative D. individual
4. For whom you supply your product? A. Wholesaler B. consumer C. retailers D. Collectors
5. What are the major opportunities of mango production? A. availability of fertile land
2. How do you search information on the determinants of supply and demand, price of product as
compared with other markets? A. other traders B. personal visit or observation
C. telephone D. radio
4. What motivated you to buy mango product? A. number of demand B. more profitable
C. Nutritional value
5. Who set the price of your product? A. buyers B. myself C. demand D. by supply
6. Who are the main customers of your product? A. Retailers B. processors C. consumers
1. Why you come this market? A. buying mango B. Selling mango C. others
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2. From whom do you mostly buy mango product? A. wholesalers B. Farmers
3. Who set the price of the mango products? A. buyers b. set by demand C. Set by supply
D. myself
D. brokers
5. Where do you sell your product? A. in store B. at consumer home C. other place
1. How often do you eat mango? A. during holiday B. once a week C. twice of a
week D. more often
2. From where do you get mango product? A. from retailers B. from wholesalers C.
From producers D. From brokers.
3. By what characters of mango you interest when buying? A. ripeness of mango B. size
of mango C. quantity of mango D. quality of mango
5. At what time the price of mango rise? A. during winter season B. During autumn
season C. during spring season D. during summer season.
End of the interview!! Thank you very much for responding to the questions.
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