MARKET CHAIN ANALYSIS OF AVOCADO IN DILLA ZURIA WOREDA GEDEO ZONE, SOUTHERN ETHIOPIA

ABSTRACT In Ethiopia fruit production possess paramount abilities to support farmers livelihoods and plays great roles in national and households’ socio-economy. However, in the field of scientific research and development avocado have received little attention in comparison to other fruit species. Thus, this study aimed to identify avocado market chain actors, their functions and marketing margins along the chain, to identify major constraints and opportunities along avocado market chain, to identify factors that determine avocado market participation decision and product supply to the market. Three stage sampling procedure was used to arrive at final respondents where at first stage Dilla area were selected purposively by their potential of avocado production. To this end, the main data for this study was emanated from both primary and secondary sources. In-depth face to face interview, focus group discussion, and household schedule survey were used. Data was analysed using both descriptive statistics and econometric models. The results of market chain analysis show that the main actors of the chain are producers, local collectors, wholesalers, retailers, processors and final consumers. Among the identified avocado market channels, the one with highest producers share from consumer price is producer to consumer. Main constraints identified along the chain are perishability nature of product followed by lack of processing technology and low price received by producers whereas main opportunities of avocado production and market are suitability of the agro ecology for fruit production, availability of many market outlet for the products, emerging of small towns in the rural kebeles and existence of telephone communication facilities in rural kebeles. First stage Heckman selection result showed that family size, other fruit plants ownedand harvest frequency have negative and significant effect on probability of household participation in avocado market. Market information and annual income have positive and significant effect on probability of household participation in avocado market. Volume of avocado supplied was significantly determined by age of household, number of avocado plants owned, access to credit service, volume of avocado produced per year, cropping experience of respondent in years and annual income. The study recommends that government and other development partners should work on promoting avocado processing and storage technologies.