ANALYSIS OF SESAME VALUE CHAIN: THE CASE OF GIDA AYANA DISTRICT OF EAST WOLLEGA ZONE, OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Sesame is world most important exportable cash crop. This study attempted to analyze sesame value chain in Gida Ayana district, East wollega zone of Oromia National Regional State, Ethipoia. The data were collected from both primary and secondary sources. The primary data for this study were collected from 122 farmers and 30 traders using semi-structured questionnaires. Descriptive statistics, value chain analysis, and econometric model were used to analyze the data. The major actors of sesame value chain identified were input suppliers, producers, collectors, wholesalers, exporters, and supportive actors. Two sesame-marketing channels were identified in the study area. Channel I was when sesame passes from Producers-collectors-wholesalers-exporters, and channel II was when sesame passes from producers to wholesalers and then to exporters. Sesame marketing performance result revealed that 52.59% and 49.57% of total gross marketing margin were added to sesame price in channel I and channel II, respectively. Out of the total gross marketing margin, 4.32% was captured by sesame collectors in channel I, while 22.91% and 25.36 goes to wholesalers and exporters in both channels, respectively. The result showed that sesame producers’ gross profit was highest when they sold to wholesalers in channel II which is about 815.96 birr/qt and followed by channel I when they sold to village collectors which accounts 687.46 birr/qt. The results of econometric analysis showed that market supply of sesame is significantly affected by education of the household head, farming experience, yield, frequency of extension contact, land allocated to sesame production, access to market information, and distance from the market. Lack of improved seed variety, disease and pests, and poor extension services are production constraints identified in the study area. Poor market infrastructure, limited credit services, shortage of capital, shortage of supply, and high marketing costs are marketing constraints hindering sesame value chain development in the study area. Therefore, policy aiming at improving farmers’ access to improved and disease resistance seed variety, improved transportation facility, strengthening linkage with research institutes and with other supportive institutions, upgrading farmers marketing skill through extension, and marketing infrastructure, intensifying inputs on the land allocated to sesame production and providing adequate extension service are required.