Sustainable Smallholder Forestry: Value Chain Analysis and Development of Forest Wood Products in Wondo Genet, Ethiopia

Forest ecosystems are vital for biodiversity, carbon sequestration, and rural livelihoods, especially in Ethiopia, where smallholder farmers manage over 60% of forest resources. This study evaluated land use and land cover (LULC), mapped the forest product value chain, identified income determinants for smallholders, and assessed system constraints and opportunities. LULC classification using 2024 Landsat 9 data and a Random Forest model in Google Earth Engine achieved 84% accuracy (Kappa: 0.80), showing agriculture (64.09%) as the dominant land use, with forests concentrated in mountainous areas. A survey of 151 smallholders was conducted using snowball sampling, complemented by key informant interviews, focus group discussions, and participatory value chain mapping. The forest product value chain involves tree growers, processors, distributors, and retailers, with smallholders playing a central role. The sector contributes significantly to rural employment, particularly for women and youth. Major constraints include limited access to finance, technology, training, weak governance, and environmental degradation. Opportunities lie in value chain diversification, sustainable practices, and private sector engagement. Regression analysis found that income from tree sales was positively influenced by age, labor availability, land size, experience, and forest management practices, while distance to roads and poor market access had negative effects. To enhance smallholder income and sustainability, the study recommends improving infrastructure, market access, and forest management training, strengthening cooperatives, promoting eco‐certification, and fostering public–private partnerships. Targeted support for women and youth is essential to unlock the sector’s full potential.