WOLKITE UNIVERSITY

COLLEGE OF AGRICULTURE AND NATURAL RESOURCE

DEPARTMENT OF AGRIBUSINESS AND VALUE CHAIN
MANAGEMENT

VALUE CHAIN ANALYSIS OF ONION IN CHEHA DISTRICT

SENIOR RESEARCH REPORT IN PARTIAL FULFILLMENT OF

(BSc) IN AGRIBUSINESS AND VALUE CHAIN MANAGEMENT

BY

NAME ID, NO

1. JIBRIL KASIM……………………………...…..…….201/11

2. TARIKUA ASEFA………………..………………………328/11

3. WORKINESH YAYEH…………….……………….…363/11

4. LIKE MEKONEN……………………...…………….……228/11

ADVISOR: Mr. METADEL K. (MSc)

AUGUEST, 2021

WOLKITE, ETHIOPIA

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 ACKNOWLEDGMENT

We would like to send our warmest thanks to our advisor, Mr Metadel, for giving us
the topic our will work on for our senior thesis. We appreciate his unreserved support
for the success of the work. We would also like to thank our class mates for their help
in all activities of our learning.

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TABLE OF CONTENTS
ACKNOWLEDGMENT...........................................................................................................i
TABLE OF CONTENTS..........................................................................................................1
ABSTRACT.............................................................................................................................2
1. INTRODUCTION................................................................................................................1
1.1 Background and justification..........................................................................................1
1.2 Statement of the problem................................................................................................2
1.3. Research questions.........................................................................................................3
1.4. Objective........................................................................................................................3
1.4.1. General objectives...................................................................................................3
1.4.2 .The specific objectives............................................................................................3
1.5 Scope of the study...........................................................................................................4
1.6 Limitations of the study..................................................................................................4
1.7. Significance of the study................................................................................................4
2. LITERATURE REVIEW.....................................................................................................5
2.1. Theoretical literature......................................................................................................5
2.2. Empirical review..........................................................................................................10
3. METHODOLOGY.............................................................................................................15
3.1. Description of the study area........................................................................................15
3.2. Sampling technique......................................................................................................15
3.3. Sample size determination...........................................................................................16
3.4. Type, Source and method of data collection................................................................16
3.5. Method of Data Analysis.............................................................................................17
3.5.1. Descriptive analysis..............................................................................................17
3.5.2. Econometric analysis............................................................................................17
3.5.3. Definition and hypothesis of variables..................................................................17
4. RESULT AND DISCUSSION...........................................................................................20
4.1. Demographic, socio economic and institutional characteristics Sex of household.......20
4.2. Onion value chain actors and their roles......................................................................22
4.3 Determinant factors that affect smallholder farmers in onion value chain....................25
4.4 challenge and opportunities in onion value chain..........................................................26
5. CONCLUSION AND RECOMMENDATION.................................................................28
6. REFERENCES..................................................................................................................29
7. Appendix............................................................................................................................32

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ABSTRACT

Onion (Allium cepa) is among the most popular vegetables in the world. Onion is a
crop that is classified as a cool season crop. The study was conducted at cheha dis-
trict and aimed to identify quantity supply of onion. The general objective of this re-
search of this research was to analysis value chain analysis onion. the key specific
objectives of the study are: to map the value chain actors, to identify the determinant
factor that affect smallholder farmer in onion market supply and to identify the op-
portunity and challenge in onion value chain. The method of data were be collected
from individual interview schedule, semi structured questionnaires. Both qualitative
and quantitative data was collected was collected from primary and secondary
source. To analyze different data’s descriptive statistic such as mean, frequency and
percentage. Multiple linear regression models fitted to identify onion market supply in
the study. The primary value chain actors involved in value chain activities are input
supplier, producer, wholesaler, retailer. There are some opportunity to produce onion
include: availability of rain fall, soil fertility favorable whether condition, availability
of market demand throughout the year, growing number of buyers etc. and challenge
that faced in production and market such as poor product handling, seasonality, preva-
lence of onion disease & pests, seasonal price fluctuation of onion, absence of stan-
dard, lack of bargaining power, lack of strong coordination among trader and presence
of illegal broker.

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1. INTRODUCTION
1.1 Background and justification

Onion (Allium cepa) is among the most popular vegetables in the world. Onion is a
crop that is classified as a cool season crop. However, it can be grown mainly for its
bulb, which is used in every home, almost daily, across Ethiopia (Agro BIG, 2016).
Ethiopia, the third biggest producer of onion in the Africa, continent next to Egypt
and south Africa, contribute only 2.7% to the total world production between 2000-
2011 (FASTAT 2019). Averaged over the period of 2010 to 2018,the onion area
harvested, production, and yield at the national level are 28,942 hectares, 33,947 tones
and 11.7 tons/ha respectively,( Central Statistical Agency (CSA) 2019) FOOD and
agriculture organization statistical division (FAOSTAT), 2019, which is for below the
world average of 19.7 tons/ha(Megersa 2017). In the major rain(meher) season of
2018/19, onion production covered about 11.46% of root crops area in country.

Particularly Gurage zones have good potential in horticultural crops production for
which smallholder farming have diversified from staple food subsistence production
in to more market oriented and higher value commodities crops have grown faster
than that of cereal crops. The supply chain for onions in Ethiopia is a very fragmented
with little if any cooperation between the chain actors. This fragmented system has no
planning or control, each member in the different chain levels is only concerned about
their own business with out any exceeding organization optimize the process. The
fragmentation of the chain cases a non-collaborative system, which in turn result in
the higher amount of losses in the end of the chain (Daniels and Fors, 2015).

Onion value chain actors in Cheha District, South, Nation, Nationality Ethiopia
(Hailegiorgis 2017) were reported to include input suppliers, producers, collectors,
farmer-traders, middlemen/brokers, wholesalers, retailers, consumers whereas the
identified chain supporters include the Ministry of Agriculture and Natural Resources,
Small and Micro Financial Institutions, District Irrigation Development Authority and
Agricultural Research Center. The main constraints identified include; price
fluctuation, lack of credit availability, scarcity of fertilizers, less availability of inputs,

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high onion seed cost which is caused by the existence of oligopolistic market, high
involvement of brokers and less awareness of farmers about the market. Hailu and his
co-workers also identified onion value chain actors such as input suppliers, producers,
rural collectors, brokers, retailers, wholesalers, processors and consumers and six
market channels (Hailu, et al., 2017).

1.2 Statement of the problem

The production and productivity of vegetables in general and onion in Ethiopia is very
low compared to the potential the country has. Their production is facing various
problems which contribute to to this low level of production and productivity. Among
various constraint lack of appropriate agronomic package, shortage of seed of
improved varieties, disease, insect pests and poor extension services, high cost of
chemical fertilizer and sometimes unavailable to small scale farmers( Currah and
Proctor,1990. Melkamu Alemayehu et al. 2015).

Government has been working to increase the production and productivity of

horticulture sector in Ethiopia. The Growth and Transformation Plan for the
agriculture sector stated that improving production and productivity of vegetable
(onion) is one of the primary targets of the Ministry. For this reason, the Ministry and
other supporting stakeholders designed and implemented projects to support the main
actors in the value chain. The Planning and Programming Directorate is in charge of
organizing, planning, and preparation of programs and projects at sectorial and sub
sector levels through stakeholders and donor agencies engagement (Daniel, 2015).
Therefore, it is vital to look at the value chain aspects of onion to be able to
understand the full chain map, and to see the role of key actors and facilitators in the
chain map. The production and productivity of vegetables in general and onion in
Ethiopia is very low compared to the potential the country has. Their production is
facing various problems which contribute to to this low level of production and
productivity. Among various constraint lack of appropriate agronomic package,
shortage of seed of improved varieties, disease, insect pests and poor extension
services, high cost of chemical fertilizer and sometimes unavailable to small scale
farmers( Currah and Proctor,1990. Melkamu Alemayehu et al. 2015).

Therefore, after reviewing existing data, contextual factors surrounding onion value
chain were identified. There is no market extension system or institution that helps

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producers to take into account the key marketing factors like who will buy their
harvest, what is the quality preference, time of delivery and also the possible supply
increase as other farmers will also increase their production by looking at previous
year price. Often due to failure to account for these factors, many farmers are losing a
significant amount value on their daily activities. This requires investigating further
using existing literature to meet problems faced by producers in the selling of onion to
a better and formal market at any area of country. The main problem smallholder
farmer’s face is marketing of onion. Due to this problem farmers produce below
capacity because of fear of marketing.

Unstable price, poor infrastructure facilities low margin of farmers and information
gap are a problems in value chain analysis of onion. In this study we initiate the to
existence of many intermediary (or existence of long chain) the absence of
processor(manufacturer ) that change onion in to different form such as powder and
juice, the perish ability nature of onion. So the study will also assess determinant
factors that affect smallholder farmers engaged in onion market and to identify major
opportunities and challenges of onion value chain in the study area to fill information
gap.

1.3. Research questions

1. Who are the onion value chain actors and what is their function involved in onion
value chain?

2. What are the factors that affect smallholder farmers in onion market?
3. What is constraints and opportunities of onion market supply?

1.4. Objective
1.4.1. General objectives
To analyze onion value chains in Cheha district, Ethiopia

1.4.2 .The specific objectives

To map the value chain actors onion in Cheha district.

To identify the determinant factors that affect smallholder farmers in onion market
To identify the constraints and opportunities in onion value chain

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1.5 Scope of the study

This study will conducted in Cheha distinct and important information will be
collected from sample households and value chain actors involved in the sub-sector
organization in the study areas. The study approach is value chain analysis approach
that would be used to analyze actors and their role in onion value chain; identifying
opportunities and constraints, assessing factors which affecting onion market outlet
choice, and identifying from 2000 total population sample size 95 respondent of onion
value chain actor from 3 kebeles (Amora meda, Buchach and Gasoli) in Cheha
Districts.

1.6 Limitations of the study

Due to time and resource constraints the research was limited to include only three
kebeles which exist around the universities, and only a small number of actors were
carried out interviews in each sector of the chain and by using questionnaires.. Luck
of real information from the actors is also the constraints which we faced in
conducting our research.

1.7. Significance of the study

The study analyzes the entire onion value chain from input supplier to the consumer
within the Cheha district in three kebeles. Moreover, the study would provides
information on the mapping of onion supply to the market, the onion marketing
channel and identifies opportunities and constraints of onion production and
marketing along the value chains. The study will help in generating information about
value chain in the study area and serve as document for who initiate to investigate in
the topic

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 2. LITERATURE REVIEW

The literature study is made in order to grasp the holistic view of the topic, provide a
deeper understanding and to give information to relate back to later in the research.
This literature review covers onion production, cultivation, logistics, supply chain
management and value chain analysis.

While the area cultivated to vegetables has been increasing over the years due to
increasing consumer demand, studies done in different parts of Ethiopia indicated that
average yields are far below potential and there are a number of vegetable production
and marketing constraints

2.1. Theoretical literature

Onion production

Onions are cultivated in many regions of the world, but mainly on the north
Shemisphere. Onions are part of the Liliaceae family, of the genus Allium that
contains several hundreds of species (Shigyo and Kik, 2008). The Latin name of the
most common onions worldwide is Allium Cepa, which includes the red and yellow
onion. Allium Cepa is the second most popular vegetable in the world following
tomatoes (Desalenge and Aklilu, 2003).

Examples of two inorganic fertilizers are DAP (Ammonium phosphate) and Urea. The
amount of fertilizer needed is dependent on the soil type. (Desalenge and Aklilu,
2003)

Two common diseases of onions are purple spots and leaf mold. A fungus called
Alternariaporri causes the purple blotches and the leaf mold is caused by the plant
pathogen called Peronospora destructor. Thrips (Thripstabaci) is a common pest to
attack onions. Weeds can also be a problem since onions are poor competitors to
weeds. Onions are especially vulnerable for weeds the first 6 weeks (Desalenge and
Aklilu, 2003). Onions are vulnerable to too much moisture and the risk for onions to
be condemned by diseases increases in probability with humid weather conditions.
There are various disease protections available to keep the onions from getting
attacked by fungus or pests, for example Mancozeb, Karate, Selekron and Ridomil
(Daniel, 2006).

Supply chain management

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The consensus of all of them is that supply chain management organizes and controls
integrated logistics systems from the suppliers to a distinct end user, to optimize the
process.

Information flow

Alongside the materials in a supply chain, there is a flow of information (e.g. oral,
data or documents) to control and trail the path of the supply flow. If the information
is an order from a customer the information flow runs in the opposite direction of the
supply flow. Order processes, information flow and data flow is necessary to secure a
high quality of the logistic chain (Daniel, 2015). Logistic supply strategies rely on
effective information flow and thorough logistic data to work properly (Gudehus and
Kotzab, 2012, p.760). The information flow supplies and drives the supply flow. A
rapid and thorough exchange of information upstream and downstream the supply
chain increases in importance when there is a requirement for a fast delivery. The
customers’ request for a certain device or service must reach the appropriate parts of
the chain in good time for a chance to produce and deliver the object on time. One
subsystem might need spare parts from another subsystem, which is why various
subsystems also must have a functional information flow between them (Oskarsson et
al, 2009, p.23 and 41).

Transportation

To symbolize transportation, straight arrow from one point to another is a commonly

used method and this is often the way manufacturing companies’ sees the
transportation flow as a straight and simple line (Daniel, 2015). The transportation is
though more complex from a transporters perspective, it includes combining goods
from different companies, optimizing the routes based on available infrastructures and
reloading of the trucks. To have a good transportation system a well-developed
infrastructure is essential as is the need for good quality transports (Oskarsson et al,
2009, p.119-122). The transportation system is scrutinized based on the usability,
performance and cost from a logistics point of view.

Transport systems are divided into either continuous or discontinuous. The continuous
transport systems include for example gas pipelines and liquids and discontinuous
transport systems include conveyor systems and vehicle systems. Conveyor systems
are applied on indoor transportation and vehicle transportation can be either indoor or
outdoor (Daiel, 2015). What kind of transport system that suits a specific logistic
system best depends on what kind of goods are to be transported and the distance of
the transportation. (Gudehus and Kotzab, 2012).

Logistic terms

A logistic system consists, many sources, sinks and halfway stations that are linked
together by transportation s, movement of physical matters, money and information.
The flows of supply and data that are going into a firm are called procurement

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logistics or inbound logistics and flows out of a company are called distribution
logistics or outbound logistics (Daniel, 2015). A logistic system can be divided into a
hierarchy of subsystems with special tasks coined to each step. One way of grading a
logistic network is presented by Gudehus and Kotzab, 2012): 1. Global logistics
2.National and regional logistic 3. Households, companies and service suppliers
4.Consumption, production and logistic sites 5.Handling, storing, commissioning, and
vehicle systems 6.Machines and robots, which consist of parts, components or
models.

While analyzing a logistic chain the strengths and weaknesses can be revealed and
used to see where potential growth exists and where to put in extra support to create a
more effective logistic chain. Systems that are undergoing rapid and dramatic changes
might benefit fundamentally of a logistic chain analysis (da Silva and de Souza Filho,
2007, p.10). There are different ways in which actions and input affect the whole
chain and thereby the quality of the end product. It is for example of importance to
evaluate the properties of a system such as inter dependency, propagation, feedback
and synergy (da Silva and de Souza Filho, 2007).

Inter dependency means that all chain actors are intertwined with each other and the
effectiveness of one actor will influence the effectiveness of the others. 

Propagation is the fact that since there is inter dependency between the chain actors
any impact somewhere in the chain will propagate upstream and downstream of the
chain.

Effects might be separated from the causes in a chain because of propagation. 

Feedback is when the chain actors adjust to changes due to propagation and a new
round of propagation will arise because of these changes. Synergy means that the
whole is greater than the sum of the parts, which is essential in logistics as the
ambition is to create good prices and quality of the end product and to acquire
satisfied end-customers.

Value chain analysis

The value chain concept

To understand a company’s competitive advantages it is necessary to look into all

activities executed within the company, for example design, production, sales and
service. If the events are analyzed, instead of the company as a whole, advantages can
be gained in both cost efficiency and differentiation. To do this analysis Michael
Porter introduced the value chain in 1985. His idea was to divide a business into its
strategic activities to make them better than the rivals, or to a lower cost. A firm’s
value chain is affected by their suppliers’ and customers’ value chains since they are
all parts of a value system. A supplier’s value chain affects downstream (toward the
consumer) in a value system. For example the quality of material that builds up the
final product delivered to the consumer, if the raw material is of bad quality, it will

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have impacts downstream in the system all the way to the consumer. The challenge
for the companies within a system is to see what the other parties’ demand is and what
they can supply, and from that make the best fit into the whole system. (Porter, 2012)

Agricultural company is profitable if the consumer find the value of the product to be
higher than the total production cost. The difference between the value and the
production cost is the company’s margin. The value adding activities need human
resources, material inputs and technology. The value adding activities are separated
into two categories; Primary activities and support activities. The primary activities
are connected to physical flow through the company, from inflow of material to
outflow of a product. The primary activities are supported with human resources,
purchased materials and other functions that are needed in a company, these are the
support activities. How the value activities are carried out and to what cost decides
how the company stands in a competitive market. (Porter, 2012)

Inbound logistics: All events connected to the inflow of materials before it is used in
the production, for example transportation, warehousing and control of goods.

Operations: The activities where the inflow of materials are turned into a new
product, which can be machining, assembling and testing.

Outbound logistics: When the operations stage is done, the final product is ready to
be delivered to the customer. This activity can include storage of the products before
they leave for the customers, taking care of orders and distribution of the products.

Sales and marketing: It is necessary to find and have contact with customers to sell
the products. Activities in this category are for example advertising, pricing and sales.

Service: After the product has reached the customer it can be necessary to give
service so that it keeps its functionality and value. Training and reparations are
examples of activities in this category.

Firm infrastructure: This is where activities that build up a firm are done.
Accounting, finance and planning are some of the important events within the firm
infrastructure.

Human recourse management: Human resources are needed in all value activities.
Recruiting, training and pay salary to the workers are examples within this support
activity

Technology development: Technology of some kind is involved in all value

activities. It might be more simple technology and know-how or advanced machinery
used in the production. This is an activity that aims to improve all kinds of
technologies to make the process or product better.

Procurement: This means purchasing of inputs needed in the company. The most
obvious is raw material to the operations stage in the company, but all activities need

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purchased inputs, accounting tools required within the firm infrastructure stage is one
example.

This is an important activity since the cost for purchased inputs is a large post of a
company’s total cost.

All these value adding activities and the events within them have to be analyzed to
define a firm’s value chain. Large functions should be divided into smaller activities
to better understand the costs and value added. For examples processing of raw
material to the final product might hold a whole chain of steps where possibilities to
improvements would not be seen if they were put together as one. When a value chain
is defined, all activities and functions done by the company should be found and put
into one of the primary or support activities category (Porter, 1985)

Mapping a value chain

A value chain can be complex and contain a big number of actors. Therefore it’s
important to know the aim of the study and the point of interest. Thereafter decision
can be made on where in the chain to start and what to include in the chain analysis
(Kaplinsky& Morris, 2000). The first step in a value chain study is to identify the
actors and the connections between them to get the chain mapped out. This can be
done with a qualitative study, followed by a quantitative study when the map of the
chain is completed. The quantitative study gives more information about activities and
relations in the chain and makes the study more certain (Hellin& Meijer, 2006).

When the value chain is mapped out it is time to investigate the chain in numbers;
costs and the outgoing values in each step, from which the net output value can be
calculated. Other interesting points to study in the chain are: - Flow of material in the
chain, Employments, services and consultants used in the chain. To get a good picture
of the value adding throughout the chain it is important to collect the data over time to
see changes and trends in the chain. Relations between actors in a chain can be
affected by the governance within each step. The conditions might be set up by the
most powerful actor in the value chain and the others have to adapt to the rules. The
largest firm usually has the largest influence on the other actors in the chain. By doing
a value chain analysis different indicators can be calculated to get a hint about which
actor is the most powerful. One indicator is how big share each actor has from the
total value added in the chain. Another indicator is how big share of the total profit in
the chain each actor gets. (Kaplinsky& Morris, 2000)

Environment and logistics

The logistic-approach primary tends to increase the efficiency of the supply chain to
achieve the lowest possible cost, which go hand in hand with environmental issues
most of the time. For example the optimization of transportation routes and the
minimization of fuel consumption do gain both cost and environmental objectives.

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Besides optimizing the transportation's, logistics try to maximize the profits and
contrive as much as possible out of the inbound materials, something that also gain a
sustainable usage of assets. The environmental objects that do not comprise with the
logistic objectives must be controlled by governmental sanctions or legislative
environmental initiatives (Gudehus and Kotzab, 2012).

Logistics applied to the value chain of onions

This would imply a close collaboration between the farmers, wholesalers, transporters
and retailers when applied to the onion chain. For the economical point of view a
strategy to create a good synergy must exist to make each actor realize that the whole
is greater than the sum of the parts, something that can prove to be difficult. Each of
the chain actors live on the income from that particular part of the chain and therefore
may not see the possible gain in the future by changing something in the present, that
might decrease the immediate income. Thus overhead department should tie the chain
actors together to an integrated unity which is important to produce an effective and
secure chain with planned harvests, pickups of onions and drop offs at the end
stations.

Uses of onion wastes

The residue onions can be used as food for animals, as compost and for biogas
production. Cattle feed and compost is the traditional way of disposing of biological
degradable residues. An onion company in California, USA, has invested $9.5-million
to turn onion wastes into energy. All onion peels, tails and tops from the production
are grinded to produce a juice that gives biogas through anaerobic digestion. The
onion production gives 100 tons of wastes per day, which give about 3 normal cubic
meters biogas with a methane content of 70 % every minute. The biogas is purified to
get a high content of methane that can be used to power two 300 kW fuel cells.

2.2. Empirical review

The study conducted by market indicated that household participating in the market
for onion products are considered to be more commercially inclined due to the nature
producers, trader and consumer. Problems stretched from input supply late to
marketing. Understanding problems and opportunities with priorities was very
important for both research and development initiatives. There are a number of
production and marketing constraint and opportunities were identified. Absence of
appropriate post harvest handling practices reduce the product qualities, problem of
pest and disease, limited production and marketing extension support, absence of law
enforcement on standards the prevalence of strong and wide market cheating by
wholesaler retailer, lack of coordination among producer. Farmers not coordinated to
increase their bargaining power. the district are also naturally endowed have some

10
production and market opportunities: availabilities of rainfall the production of onion
and availabilities of market demand throughout the year, growing number of buyer,
high experience in onion trade and growing price were some of opportunities of onion
by most producer (Agidew, 2018).

Teklebrhan et al. (2020) investigated on factors affectig onion market supply in

Medebay Zana district, Tigray regional stste, Northern Ethiopia using Multiple Linear
Regression model. The authors found various variables that have an effect on quantity
supply of onion; these are quantity of onion produced, access to market information,
distance to the nearest market, access to credit and family size.

Primary actors

The primary actors in onion value chain in Cheha district were seed and other input
suppliers, farmers, traders and consumers. Each of these actors adds value in the
process of changing product title.

Input suppliers

At this stage of the value chain, there are many actors who are involved directly or
indirectly in agricultural input supply in the study area. Currently OoARD, primary
cooperatives/union and private input suppliers are the main source of input supply.
Onion growing farmers also participated in this stage. All such actors are responsible
to supply agricultural inputs like improved seed varieties, fertilizers, herbicides,
pesticides and farm implements which are essential inputs at the production stage

Producers

Onion growers are the major actors who perform most of the value chain functions
right from farm inputs preparation on their farms or procurement of the inputs from
other sources to post harvest handling and marketing. The major value chain functions
that onion growers perform include ploughing, planting, fertilization, irrigating,
weeding, pest/disease controlling, harvesting and postharvest handling.

Collectors/Assemblers

These are traders in assembly markets who collect onions from farmers in village
markets and from farms for the purpose of reselling it to wholesalers and retailers.

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They use their financial resources and their local knowledge to bulk onion from the
surrounding area. They play important role and they do know areas of surplus well.
The trading activities of collectors include buying and assembling, repacking, sorting,
transporting and selling to wholesale markets retailers, as well as consumers.

Wholesalers

Wholesalers are mainly involved in buying onion from collectors and producers in
larger volume than any other actors and supplying them to retailers and consumers.
They also store product, usually for a maximum of three days. Survey result indicates
that wholesale markets are the main assembly centers for onion in the surrounding
areas.

Retailers

Retailer involvement in the chain includes buying of onion, transport to retail shops,
grading, displaying and selling to consumers. Retailers are key actors in onion value
chain in both. They are the last link between producers and consumers. They mostly
buy from wholesalers and sell to urban consumers.

Onion consumers

Consumers are those purchasing the products for consumption. About two types of
onion consumers were identified: households and, restaurants. Private consumers
purchase onion directly from producers, retailers and wholesalers though most of the
consumers purchase from retailers (Hailegiorgis, 2017).

A number of production and marketing problems as well as opportunity of production

and marketing were identified in the study conducted by (Agidew 2018),and the
following problems were identified in order of importance. For sake of clear
understanding problems are divided into marketing and production problems.

Production constraints

Poor product handling: Absence of appropriate post harvest handling practice

reduces the farmers’ product quality. The price of the perished product is low even it
maybe not sold. Deteriorate vegetables can cause disease to human being if it is eaten.

12
To protect these and other problems the farmers should keep the quality of their
products’.

Pest and disease: Problem of pest and disease like root rot. Limited production and
marketing extension support- Even though there seem sufficient number of
development agents deployed in each Kebele they lacked then Competence on per-
and post harvest handling practices. It was for this fact that farmers applied much seed
rate above the recommendation, watered the field at harvest, and did not store.

Unorganized input delivery: farmers used to get seeds from open market. There
were no Certification, quality test, and failure guarantees.

Marketing constraints

Imperfect pricing system: Frequent low price at peak supply periods that based not
the real supply and demand interaction but the information collusion and gang up
between buying participants. The intermediaries used to decide on the price of onion
products. Wholesalers were mostly the beneficiaries and they controlled and regulated
the chain.

Absence of law enforcement on standards: The prevalence of strong and wide

market cheating by wholesaler sand relaters like miss-weighing, collusion (low price
quotation,price information). There were no identified and applied quality standards
that resulted in absence of discriminatory pricing accounting for quality and grades.

Lack of coordination among producers: Farmers were not coordinated to increase

their bargaining power. There was no any marketing institution to safeguard farmer’s
interest and rights over their marketable produces. Even the existing few irrigation
cooperatives lacked skill and capacity on how to go about. Rather, competition among
farmers was the usual phenomenon.

Lack of improvement for other actors in the channel:

Limited attention was given too there parts of the channel,like lack of attention for
retailers in improving the stalls that-had very right effect on the shelf life of the
products. Another marketing problems identified in this study was lack of credit lack
of demand, quality problem, information gap, lack of storage material and supply
shortage of input are some problem that face traders .

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Production opportunities

Availability of rain fall, facilitate the production of onion in generating income in

short period, its better productivity in small land, its use as cash income source or
livelihood consumption, increasing price and its continuous demand in the market
were some of the opportunities of onion by most of the producers.

Marketing opportunities

On the other hand, availability of market demand throughout the year, growing
number of buyers, high experience in onion trade and growing price were some of the
opportunities of onion by most of the producer

Teklebrhan et al. (2020) investigated on factors affectig onion market supply in

Medebay Zana district, Tigray regional stste, Northern Ethiopia using Multiple Linear
Regression model. The authors found various variables that have an affect on quantity
supply of onion; these are quantity of onion produced, access to market information,
distance to the nearest market,access to credit and family size.

14
3. METHODOLOGY
3.1. Description of the study area

The study was conducted in Cheha districts of Garage zone of SNNPRS of Ethiopia.
Cheha is one of Garage zone, which is located at 185km south west of Addis Ababa
and 27km southwest of Wolkite town. In the Cheha districts there are about
30kebeles. It has an area of about 4407km2 and it has one urban center, i.e., Endibir
town which is a capital of Cheha. The study area bordered by Enorinam on the south,
Oromo region in the west, Abeshige in the northern, Ezra in the east and Gummer and
Gaeta in the south east. The district is classified in to degas, weina degas and kola
agro climatic zones. In the districts sandy, clays and silts are the dominant types of
soil in the study area. The latitude and longitudes of Cheha is
807N3705E/80.117N370.933E. The rainy season extends from March to September
with highest rain fall usually recorded in August. The mean annual rain fall varies
between 900 and 2134 mm. there are many crops grow in cheha district such as
maize, pea, bean Teff, inset, onion and potato.There are the activities of crop
cultivation and women in involvements in agricultural production activities related to
gender issues in Cheha Woreda with some forest and plantation in the districts again.
Populations of the Woreda are about 94,792, which 47664 and 47128, male and
female, respectively (CSA, 2007).

3.2. Sampling technique

A two stage sampling procedure was used to select sample respondent. In the first
stage three kebeles (Amora meda, Buchch and Gasory) was selected out thirty kebeles
purposively due to high number of producer and traders. In the second stage sample
household was selected by employing simple random sampling.

15
 3.3. Sample size determination

The district has 30 kebeles out of this 3 kebeles was purposively selected by
employing two stage samplig.The sample would be determined by following a
simplified formula provided by Yamane 1967. The total sample size 95 was used to
collect relevant data for this study. Accordingly, the required sample size at 90%
confidence level and level of precision equal to 10 % was use to obtain a sample size
required to represent the true population.

n=
Where: n = sample size, N = population size (sampling frame) and e=margin of
error. e= 10%=0.1 ) = 95

Table 1: Distribution of Sampled households

Sample Kebeles Total number of farming HHS Sampled HHS

Amora meda 800 40
Buchach 700 35
Gasory 500 25
Total 95

3.4. Type, Source and method of data collection

Both qualitative and quantitative data was collected from primary and secondary
sources. Primary data was obtained from sample respondents using questionnaire and
interview survey method to get firsthand information about onion market chain.
Secondary data was collected from published and unpublished materials related to the
subject. It is the main source of information because it indicates the past and the
present onion market chain information.

16
3.5. Method of Data Analysis

Quantitative raw data was collected using questionnaires and organized after the field
data collection completed, and data arranged.

Questionnaires was coded by each respondents require to specify their opinion.

3.5.1. Descriptive analysis

To analysis different characteristics of the sample households’ descriptive statistics

such as frequency, mean, percentage was used .the descriptive statistics was
computed.

3.5.2. Econometric analysis

To identify the determinants factors of onion market supply a multiple regression

model was used in this study. Econometric analysis helps to estimate the causal
relationship between the dependent variable and the explanatory variables. It is crucial
to understand the effects of different factors on onion value chain market supply. This
model was selected for its simplicity and practical Applicability. OLS was use to
estimate the parameters as it is appropriate when the dependent variable is continuous.
Accordingly, the model specified as in the following form.

Yi=β’o + β’ixi + ui
Where yi= Quantity of onion supply to the market
βο = Intercept
βi= Coefficient of explanatory variable
xi= Vector of explanatory variables such as: age, sex, price, education and market
information.
ui = Disturbance term

3.5.3. Definition and hypothesis of variables

Dependent variable

Market supply: It is a continuous variable measured in quintals (Kg).

17
Independent variables

Age of households: a continuous variable measured in year. The expected sign would
be positive as age is one of the parameters of human capital. As an individual life long
he/she will have better knowledge to decide to allocate more land area, produce more
and supply more quantity to the market(Teklebrhan, 2020). It assumed to have a
positive effect on quantity supply of onion because the experienced the farmer,the
better he/she produce and supply to market.

Sex: it is dummy variable have a value/code for (1) male and (0) female. Male headed
households have better access to market information and adaptation to technology
than female headed household. According to Tadesse (2008) due to many sociology-
cultural values and norms male have freedom of mobility and participation in
different meetings and consequently have greater access to information.

Education of household head: this is a categorical variable and refers to the number
of formal schooling of a respondent during the survey. According to Teklebrhan
(2020), educational status of the farmers determines the speed with which farmers are
likely to adopt with new agricultural technologies. It is expected to have a positive
relationship with quantity supply of onion.

Lagged price: It is continuous variable and measured in ETB. This variable is

expected to influence value of onion sales and access to onion market.

Access to market information (mkt_info): is a dummy variable that takes the value
of (1) if get market information (0) if not. This variable has a positive effect on
quantity supplied to the market.

Distance to nearest urban market: is a continuous variable measured in walking

hours from the household residence. The closer the market, the lesser would be the
transportation charges, reduced walking time, reduced other marketing costs and
better access to market facilities (teklebrhan et al. 2020). It is assumed to have a
positive relationship with the nearest market.

Access to credit: it is a dummy variable (1) if the farmer gets access to credit, (0) if
not. It enables the farmers to adopt the technology, purchasing of fertilizer and

18
improved seed as well as hiring of labourers. It will positively affect the quantity
supplied to market.

Land allocated for onion production: is a continuous variable measured in hectare.

It is expected to have a positive relationship with quantity supply of onion. The
farmers who allocates majority of land for onion production will produce in large and
supply more.

19
4. RESULT AND DISCUSSION

This part of the study includes all the findings and general information obtained
through the study. The demographic characteristics of respondents are summarized in
terms of sex, age, education level, access to credit and market information.

4.1. Demographic, socio economic and institutional characteristics Sex of

household

Table 2: Sex of household

frequency Percent
female 20 20.1
Male 75 78.9
total 95 100

The study shows that 20.1% of respondents are female and 78.9% of respondents are
male. This implies that onion production and marketing is dominated by male re-
spondents in the study area.
Educational level of the household

Table 3. Educational level of household

Educational level frequency percent
Illiterate 22 23.2
Literate 73 76.8
total 95 100

Education is a precondition in bringing behavioral and attitudinal change in human

beings to interact with nature to survive. Around 73% of sample respondents were lit-
erate and 22% of them are illiterate. Most of the literate have accomplished their pri-
mary school (1-8) and the remaining respondents learn up to grade 6 and are able to
write and read. Education is believed to increase a household’s understanding of mar-
ket dynamics thus educated farmers find it easy to manage production and marketing
activities which need certain skill of management. and also increase adoption of tech-
nology

20
Marital status of the respondent
Table 4 marital status of the respondent
status Frequency percentage
single 5 5.2
married 70 73.6
widow 11 11.5
divorced 9 9.47
The above table show that out of 95 respondents 5.2 of them are single and 73.2, 11.6
and 9.47 are married, window and divorced respectively.

Instructional factors
Access to market information
Table 5. Access to market information
frequency Percent
No accessed to market 5 5.3
info
Accessed to market info 90 94.7
total 95 100

In this study 94.7% of respondents are accessed to market information and 5.3% of
respondents are no accessed information. Most of the respondent gets the information
from their neighbor farmers and their own market observation. The information may
be about market price, consumer demand and amount of supply.

Access to credit
Table 6. Access to credit
frequency percent
Accessed to credit 95 100

All respondents get credit access from omo micro-finance. This indicates that there is
an opportunity for increased production of onion which also increase the quantity sup-
plied to the market. The more the farmers are accessed to credit they are able to cover

21
their fertilizer costs and other factors of production this increase both the production
and the supply of the commodity.

Descriptive Statistics of continuous variables

N Mini- Maxi- Mean Std. Devia-
mum mum tion
age of the household 95 32.00 75.00 51.0737 10.41607
head
lagged price 95 1500.0 2500.00 1773.68 213.48702
0 42
distance to the near- 95 15 90 58.02 10.315
est market
land allocated 95 .25 1.00 .5658 .23124
quantity of sold 95 3.00 20.00 10.5895 5.14367
Valid N (list wise) 95

The average age of household of respondent was 51 with the minimum and maximum
of 32 and 75 respectively. The average of lagged price was 1773 with minimum and
maximum 1500 and 2500 respectively. The mean of distance to nearest market was 58
minute with the minimum 15 and maximum 90 minute. The average amount land al-
located for onion production was 0.5 hectare with minimum 0.25 and maximum 1
hectare. The average amount of quantity of sold was 10 quintal with minimum and
maximum 3and 20 quintal maximum 3and 20 quintals respectively.

4.2. Onion value chain actors and their roles

Primary actors
The primary actors in onion value chain actors how are directly involve in value chain
activities such as seed and other input suppliers, farmers, collectors, wholesaler, re-
tailer and consumers. Each of those actors adds value in the process of changing prod-
uct title. Some function or roles are performed by more than one actor, and some ac-
tors perform more than one role.

Input supplier

22
At this stage of the value chain, actors involved include: agricultural office and pri-
vate seed sellers are participated. Those two actors are responsible to supply agricul-
tural inputs like improved seed varieties, fertilizers, herbicides, pesticides and farm
implements which are essential input at the production stage. Whose major role is dis-
seminate suitable seed varieties to expand and promote the development of new onion
varieties.

Producer (farmers)

Onion growers are the major actors who perform most of the value chain functions
right from farm inputs preparation on their farms or procurement of the inputs from
other source to post harvest handling and marketing. The major value chain functions
that onion growers perform include planning, ploughing, seeding, irrigation, weeding,
harvesting and post-harvest handling. Onion production in this district was based on
irrigation system which is pipe guaranteed and very common to the area.

Collectors/Assemblers

These are traders in assessable market who collect onion from the farmer’s field and
from the village market for the purpose of resealing it to the wholesalers and retailers.
Mostly they help as a bridge between producer and wholesaler. They plays important
role and they do know areas of surplus product. The trading activities of collectors in-
clude buying, warehousing, assembling, packing, sorting, transporting and selling to
wholesale markets retailers.

Wholesalers

Wholesalers are mainly involved in buying onion from collectors and producer in
larger volume than any other actors by sending buy themselves and supplying it to re-
tailers and consumers. Wholesale markets are the main assembly centers for onion in
the study areas. They have better storage, transport and communication access than
other traders.the role of wholesaler is create utility by transport the product from sur-
plus area to deficit place.

Retailers

They are the last link between producer and consumer. They mostly buy from whole-
salers in average and sell to consumers. Sometimes they could also directly by from

23
the producer. Consumers usually buy the product from retailers as they offer accord-
ing to requirement and purchasing power. The retailer located in local market or vil-
lage market.

Consumers

Consumers are those purchasing the products for consumption. About two types of
onion consumers were identified: households and restaurants. Private consumers pur-
chase directly producer , retailers and wholesalers through most of the consumers pur-
chase from retailers. Producers are also made important segment of the rural con-
sumers since they consume part of their products. In general consumers have their
own quality criteria to purchase.

Value chain maps

Input supply Improve seed Fertilizer

Production
Producer

Marketing Collector Wholesaler and

retailer

Consumption
Consumer

Value chain analysis: is the processes of looking at the activities that go to into chang-
ing the inputs for a product or service into the output that is valued by the customer.

24
Companies conduct value chain analysis by looking at every production step required
to create a product and identifying was to increase the efficiency of the chain.

Supportive actors of value chain

All chain specific actors providing regular support service or representing the com-
mon interest of the value chain actors. The supporting function players for the onion
value chain are those who are not directly related to the onion value chain but provide
different supports to the value chain actors. The support function includes different
services (credit), research and development, infrastructure, and information. Support
service providers are essential for the value chain development and include sector spe-
cific input and equipment providers, financial service, extension service onion chain
value chain and market information etc.

4.3 Determinant factors that affect smallholder farmers in onion value chain
Econometrics analysis

Qslod Coef. Std. Err. t P>|t| [95% Interval]

Conf.
Age -.0156863 .0155921 -2.93 0.004*** -0766774 -.0146953
Sex .5082412 .4322415 1.18 0.243 -.3508856 1.367368
Edu -.1692463 .3730912 -0.45 0.651 -.9108054 .5723128
Lprice .0002753 .0007309 0.38 0.707 -.0011774 .0017281
mktinfo -.6503239 .7628812 -0.85 0.396 -2.166633 .8659851
dstmkt -.0041643 .0152987 -0.27 0.786 -.0345723 .0262436
Land 21.08273 .6525739 32.31 0.000*** 19.78567 22.37979
Cons 1.09265 1.799613 0.61 0.545 -2.484276 4.669577

No.of obs. =95 R-squared =0.9267

F(7, 87)= 157.11 Adj.R-squared=0.9208
Prob> F =0.0000 Root MSE =1.4476
*** indicate significant level at 1%.
Age of the household (AHH); the age of the household head significantly and nega-
tively influenced onion market supply ,by 1% significant level. An increase in the
age of household by 1 year decreased the onion market supply by 0.045 quintal keep-
ing other factory constant.

25
Total land allocated for onion: as expected the total land holding of farmer was sig-
nificantly and positively influence onion market supply at 1% significant level .this
indicated that the larger hectare of the land size that household and more allocated for
onion production and more would the volume of onion marketed. The regression co-
efficient showed that an increase in land holding of household by 1 hectare onion
market supply by 21 quintal keeping on other factory hold constant.
Coefficient of determination; the overall goodness of fit represented by model R-
squared is 92.67% and adjusted R- squared value is 92.08%. this result is indicates
that about 92% of the variation in farm level market supply of onion was attributed
the hypothesized variables.

4.4 challenge and opportunities in onion value chain

Production opportunity

Availability of rain fall, facilitate the production of onion in generating income in

short period, it productivity in small land, it use cash income source or live hood con-
sumption, increase in price the it continuous and in market were some of the opportu-
nity of onion by most of the producers. The existence of good policy framework in
agricultural development manifested by employing development agent at each kebe-
les, infrastructure development could facilitate onion production marketing. The in-
creasing use of mobile telephone wireless telephone are also other infrastructural ad-
vantage to improve system.
Market opportunities
Availability of market demand throughout the year, growing number of buyers, high
experience onion trade and growing price were some of the opportunities of onion by
most of the producer. The study result show that of the

Production challenge

Poor product handling: Absences of appropriate post-harvest handling practice re-

duce farmers’ product quality. The price of the perished product is low even it may be
not sold
Unorganized input deliver: farmers used to get seeds from open market. There were
no certification, quality test and failure guarantees. As a result farmer faced problem
26
of seed viability pest and disease: problem of pest and disease like root rot are other of
production.
Seasonality: the effect of seasonality is very significant on market price of onion. The
price of onion less during the production season of summer. There are causes for ex-
cess supply of onion supply of onion during this production season: lake of reliable
market information and traditional farming, absence of irrigation.
Prevalence of onion disease and pest: prevalence of disease was one of the produc-
tion problems encountered by farmer in the study area. The most commonly occurred
diseases were insect of onion.

Marketing challenge

Seasonal fluctuation in prices of onion Low prices at peak supply periods that don’t
based on the real supply and demand interaction but the information collusion and
estimation between participants. Wholesalers were mostly the beneficiaries and they
controlled and regulated the chain.

Absence standards- the prevalence of strong and wide market cheating by whole-
salers and retailers like miss-weighing, collusion (low price quotation, price informa-
tion). There were no identified and applied quality standards that resulted in absence
of discriminatory pricing accounting for quality and grades.

Lack of barging power - producers was not coordinated to increase their bargaining
power. There was no any marketing institution to safeguard producer interest and
rights over their marketable produces. Even the existing few irrigation cooperatives
lacked skill and capacity on how to go about. Rather, competition among producers
was the usual phenomenon. And also there is lack market place, lack of infrastruc-
ture

Lack of improvement of channel for actors - limited attention was given to other
parts of the channel, like lack of attention for retailers in improving the stalls that head
every right effect on the shelf life of the products. And other marketing problems
identified in this study was lack of credit, lack of demand, quality problem, informa-
tion gap, lack of storage material and supply shortage of input are same problems that
face traders

27
Inefficiency in the physical distribution of onion: the poor distribution system arise
from poor farm to market roads, absence of storage facilities and not enough facilities
such as trucks for bringing their onion out of the village.
Lack of strong coordination among trader: the trader have not enough relationship
to increase their capacity to search for potential markets and the activities of the mid-
dlemen.
Other challenges of onion production: lack of infrastructure, transportation cost,
lack of availability of warehouse, presence of illegal broker

5. CONCLUSION AND RECOMMENDATION

Conclusion

The value chain analysis of the study area revealed that value chain map, actors such
as input supply whose responsible for supply fertilizer and improved seed producer
his major function planning ,ploughing, irrigation, harvesting: collector whose play
important role include collecting, warehousing, packing and transporting wholesaler,
retailer and consumer and their roles. Multiple linear regression models were run to
identify determent of onion market supply. The age of house hold head and land size
is negatively and positively affect quantity of sold of onion respectively. Availabil-
ity of rain fall, facilitate the production of onion in generating income in short period,
it productivity in small land, it use cash income source or livelihood consumption, in-
crease in price their continuous and in market were some of the opportunity of onion
by most of the producers. Behind those opportunity there is the challenge this includes
Poor product handling, Seasonality, Prevalence of onion disease and pest, are chal-
lenge that faces the producer productivity. Availability of market demand throughout
the year, growing number of buyers, high experience onion production and growing
price were some of the opportunities of onion by most of the producer are the market
opportunity that help producer to participate in onion market. There is the challenge
that reduce the participation of value chain actors in onion market .this includes
Seasonal fluctuation in prices of onion, Absence standards, lack of barging power,
Lack of improvement of channel for actors, inefficiency physical distribution of

28
onion, lack of strong coordination among trader, lack of infrastructure, absence of
warehouse, and presence of illegal broker.

Recommendation
According to the result of the study the following recommendation is provided.
 To improve productivity of onion government should set price floor when
fluctuation is occurred.
 Improve product standard
 The government DAs provides awareness about modern farming system.
 The cooperation of value chain actor should be improved.
 Improve farmers bargaining power by create farmers’ cooperative.
 The government should provide or address adequate infrastructure.
 Government should provide public warehouse.
 The responsible body should control illegal broker.

6. REFERENCES

Agidew Abebe, 2018; Review on value chain analysis in Etiopia

Carlos A. da Silva and Hol do M. de Souza Filho (2007). Guidelines for rapid
appraisals of agrifood chain performance in developing countries. Rome,
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Choon T (2000). “A framework of supply chain management literature”, European
Journal of Purchasing & Supply Management 7 (2001) 39-48, Las Vegas,
Elsevier Science Ltd. PII: S0969-7012(00)00020-4

Croom S, Romano P and Giannakis M (2000). “Supply chain management: an

analytical framework for critical literature review”, European Journal of
Purchasing & Supply Management 6 (2000) 67-83, Vicenza, Elsevier Science
Ltd. PII: S0969-7012(99)00030-1

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Daniel 2015, onion value chain analysis.pdf, Zenebe, 2013.Unpublished script on
postharvest losses for tomatoes in Ethiopia. (Read November 2013 at Ambo
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Daniels H & Fors S . 2015. Supply & Value Chain Analysis of Onions in Ethiopia:
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cooperation between Swedish University of Agricultural Sciences and Addis
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Desalenge L. and Aklilu S. (2003). “Article title”, Research Experiences in Onion

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Douglas J. Thomas and Paul M. Griffin (1996). “Coordinated supply chain

management”, European Journal of Operational Research 94 (1996) 1-15,
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Emana B, Afari-Sefa V and Dinssa F, Ayana A, Balemi T and Temesgen M (2015).

Characterization and Assessment of Vegetable Production and Marketing
Systems in the Humid Tropics of Ethiopia. Quarterly Journal of International
Agriculture 54 (2): 163-187.

Ethiopian Radio and Television Agency. 2013. Ethiopia Confident of Completing

EthioDjibouti Rail Project in GTP Period. AllAfrica. 1 October 2013.
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FAOSTAT. (2013). Crops download. Available:

http://faostat3.fao.org/faostatgateway/go/to/download/Q/QC/E. (accessed 11th
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Hailegiorgis D (2017). Value Chain Analysis of Onion in Dugda District, Oromia

Region, Ethiopia . Archives of Current Research International 7(4): 1-16.

Hailu A, Zemedu L and Getnet K (2017). Value chain analysis of onion: the case of
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512-524.

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Hellin J and Meijer M. 2006.Guidelines of value chain analysis.

Herouy, Bekure (2004). The VAT Regime under Ethiopian Law with special
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Horiuchi J-I, Tada K, Kobayashi M, Kanno T and Ebie K. (2003), “Biological

approach for effective utilization of worthless onions – vinegar production and
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Horiuchi J-I, Yamauchi N, Osugi M, Kanno T, Kobayashi M and Kuriyama H (2000).

“Onion alcohol production by repeated batch process using a flocculating
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8524(00)00044-4.

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Melkamu,A, 2015. Amhara Region Horticultural Development Strategy.

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Raphael Kaplinsky and Mike Morris, No date.a handbook for value chain research.

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in Fogra district, South Gondar, Ethiopia.

31
7. Appendix

Questionnaire to the Respondent

Categorization of Stakeholder

1. Producers 2 .trader 3. Consumer

Questionnaires for producer

1) Name _____________
2) Kebele ___________________________
3) Age of household ___________________
4) Sex of household head: 1.male 2.female
5) Education status; 1. Cannot read and write 2. Read & Write 3. Elemen-
tary 4. Secondary
6) Marital status: 1.single 2.married 3. Divorced
4.Widowed
7) Total number of family size (number) __________
Age category Number of males Number of females

Members < 15 Years old 20 32

15 – 65 years old 90 87

Members> 65 years old 10 14

Total members 120 133

8) What type of vegetables product do you produce? 1. onion 2. potato 3. tomato

9) To what purpose do you produce onion?
1. For market 2. For consumption

10) Do you have some experience about onion production(year)? , If your answer is
yes how long? 1. Below 3years 2. Between 3-7 years

32
 3. between 7-10 years 4. Above 10 years
11) What are the inputs for onion production?
1.improved seed 2. fertilizer 3.agro chemicals
12. Total land owned ?______________
13. How many hectare of land allocated for onion production? ______-hectare
14)How many quintal onion do you produce (kg) per hectare?________-kg
15. from the total produce how much amount is sold?_____________-kg

16) For whom do you sell your onion product? 1. Local assembler 2. Retailer 3
wholesaler 4. Consumer 5. Specify if others
17) How many revenue did you get from onion per year? ______________

18) What are the impacts of this problem on your over all activities?

1. Decrease profit 2. Decrease motivation 3. lack of credit

19. did you access market information prior to selling? 1.yes 0.no

20. If your answer is no from whom did you get market information

21. Did you get credit in production season? ____ 1) Yes 0) No

22. Have you ever used credit for onion production? ____ 1) Yes 0) No

23. If not why?

________________________________________________________________________

24. Who are the main sources of credit?

1. Relative 3. Bank 5 micro finance institution

2. Traders 4. NGO 6 Peasant association 7. Other (specify) _______________

25. Did you face problem in onion production and marketing? If yes what was the cause &
your suggestions to solve each problem?

Questions for wholesale

1) Kebele _____________________________________________________

33
2) What are the main products you are dealing with? 1.onion 2. potato 3. tomato
3) What is your objective in relation with this business you engaged in?
1. Profit maximization 2. To sustain living
3. To provide service to consumers without any profit
4) When do you get large volume of supply? 1. During peak period (harvesting
time)
2. When price declines 3.when price increases 4.

5) Who are your major suppliers? 1.producers 2. assembler's

6) Who are your customers? 1. retailers 2. consumer
7) Have get adequate credit service? 1. Yes 2. No
8) What are the socio-economic benefits have you get from onion?
1, income generation 2, immediate cash problems for survive 3, for earning
foreign currency
9) How much benefit have you got in average?_______________
10) Which problems you are facing? 1. Poor Quality of onion supply 2. Weak link-
age between the chain 3. Price fluctuation

3 Questions for retailers

1) Kebele _____________________________________________________
2) What are the main products you are dealing with? 1.onion
3) What is your objective in relation with this business you engaged in?
1. Profit maximization 2. To sustain living
3. To provide service to consumers without any profit
4) When do you get large volume of supply? 1. During peak period (harvesting time)
2. When price declines 3.when price increases

5) Who are your major suppliers? 1.producers 2. assembler's 3 wholesaler

6) Who are your customers? 2. Exporters 3. Consumers
7) Have get adequate credit service? 1. Yes 2. No
8) What are the socio-economic benefits have you get from onion?
1, income generation 2, immediate cash problems for survive 3, for earning foreign
currency
9) How much benefit have you got in average?_______________

34
10) Which problems you are facing? 1. Poor Quality of onion supply 2. Weak linkage
between the chain

3. Price fluctuation

Questionnaires for consumers

1) Kebele _____________________________________________________

2) Do you produce and consume or purchase? 1. Purchase 2. Produce

3) If you purchase, where do you get those products you need to consume? From
1. Producers 2.Retailers 3.Whole sellers 4. From all listed above
4) What are those benefits you get from consuming? 1. Satisfaction 2.economic
benefit

5) What are those activities you carry out as one actor of onion value chain?
a. Buying certain amount of onion directly from producer
2. Adding some value on the product purchased
2) How many kg of onion you consume per year?
3) What are the problem you faced for consumption of onion
1. High price of onion 2. Poor quality of onion

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