MARKET CHAIN ANALYSIS OF POTATO (SOLANUM tuberosum L): THE CASE OF EAST AZERNAT WOREDA, CENTRAL ETHIOPIA

ABSTRACT Potato, the world's third most important food crop, is grown in 150 countries and is consumed by over one million people. This study was initiated to analyze the market chain potato in East Azernet Woreda of silte zone, Central Ethiopia region. Data were collected using household survey with a total of 347 sample producers selected through three-stage sampling technique. Both primary and secondary sources of data were used. The data was analyzed using descriptive statistics and econometric analysis. Heckman's sample selection model was used for analyzing market participation and supply in potato markets. The study revealed that households produced an average of 20 qt of potatoes, with 8qt of them being supplied to the market. The average number of oxen holdings was 1 and the average lagged market price was 46.85 birr per kilo gram. The distance from the nearest market was 10.26 km, potentially affecting transportation costs and market access. The market structure of potato was loose oligopolistic structure 40.03% concentration ratios. Farmers are willing to produce potato and if the marketing and production support services avail nearby, they assure that the business becomes more attractive and profitable than ever. The study examines potato market chains' performance, focusing on average selling prices of farmers, wholesalers, and retailers. The total gross marketing margin is 33.33%, with a producer share of 63.67%, and 36.33%. Results obtained from the Heckman’s two stage model indicated that distance to the nearest potato market, frequent extension services, number of oxen holding, level of education, quantity of potato produced, lagged market price of potato, the number of family member, land holding and age was significantly influenced the amount of potato marketed and market participation decision of producers. Policymakers, agricultural extension services, and farmers should enhance potato market participation and sale intensity by improving input access, rural infrastructure, literacy, and addressing aging farmers' needs.<br>