Analysis of Chickpea Value Chain and Determinants of Market Options Choice in Selected Districts of Southern Ethiopia

Chickpea value chain study was conducted in selected districts of the south region where CIFSRF project was operating. In total 227 respondents comprising 162 chickpea producers; 11 local assemblers; 8 rural wholesalers; 8 urban wholesalers and 38 retailers were interviewed. The study finding shows that the chickpea value chain actors are broadly classified into three viz., inputs suppliers, direct market actors and enablers. Chickpea producers sold their chickpea products to different market intermediaries and final consumers. About nine chickpea marketing channels were identified. The total amount of chickpea that was transacted through these marketing channels in 2012/13 was 9,181qts. Out of which the project site farmers supply 77% while 27% were imported from other chickpea producing areas. The study result shows that the total gross marketing margin was 45.8% with producer participation margin of 54.2%. Approximately 10.2% out of a total gross marketing margin of 45.8% constitutes the total marketing charges, giving a net marketing margin of 35.5%. Although this suggests an appreciable level of profits reaped by traders, volumes traded are relatively low as compared to other cereals. The market intermediaries incurred different marketing costs such as packing, processing, transportation and loading unloading. Determinants of chickpea producer participation in alternative market options were analyzed. A multinomial logit analysis results show that family size, landholding, access to market information and Income from crops was positively influences wholesale market participation as compared to farm gate. Similarly landholding, access to market information and extension services positively influence consumer market participation than farm gate while access to information and income from crops positively influences retails market participation than farm gate. On the other hand membership to cooperatives was negatively influences wholesale, retail and consumer market participation than farm gate market option. Households distance from nearest market negatively influences wholesale market participation than farm gate market option while off farm activities negatively influences retail market participation than farm gate. The study suggested that availing credit for agricultural marketing, promoting collective marketing, strengthening of extension service, provision of market information and road development improves farmers marketing margin and chickpea value chain performance.