Supply Chain Analysis of Avocado and Mango Fruits in Gedeo Zone

Abstract

Agriculture plays a great role in reducing the cost of living in urban areas by supplying surplus products from the rural areas to the urban areas and also it reduces the cost of living in the urban areas as a result of abundant supply of food. This reduces the upward pressure on wages, which implies a reduction in the cost of production. The country is endowed with diverse natural resources and had a capacity to grow different fruit types. But the farmers are not getting enough benefit from the resources. This study was carried out to determine the supply chain of mango and fruits. From the Gedeo zone two woredas were selected purposively and two kebeles from each worerdas were selected based on the presence of fruit production. Data was collected from 114 mango and banana producing households, 13 local collectors and 17 retailers through structured interview, focus group discussion, key informant interviews, market assessment as well as field observation. Multiple linear regression model was used to analyze factors that affects mango and avocado fruits supply of the producers in the area. Producers, rural collectors, retailers, and consumers were identified as the actors who were participating in mango and avocado fruit supply. Four variables were identified as the significant variables which affects the supply of both mango and avocado fruits. These variables were the price, quantity produced, access to market information and distance from the market. Distance from the market was significantly and negatively related with the supply of both fruits where as the remaining three variables where found to be significantly and positively related with the supply of mango and avocado fruits. Four supply channels were identified as the important channels in the mango and avocado fruit supply chain. Producer-retailer-consumer channel was identified as the first important supply channel in which the greater proportion of fruits were transacted in the area. While the producer-local collector-consumer channel was identified as the least supply channel in terms of volumes of each fruits transacted. Since the quantity produced of each fruits is positively and negatively related with the supply of each fruits in the area, the governmental as well as nongovernmental organizations should supply the improved varieties for each type of fruits for the farmers and give training for the farmers on how to increase the production and also productivity for each type of fruits. In addition to this the infrastructural problems should be taken in to consideration so as the farmers can supply their fruits to the market easily and get better price for their products.

Keywords: Supply Chain Analysis, Structure, Conduct and Performance