VALUE CHAIN ANALYSIS OF TOMATO IN ADAMI TULU JIDDO KOMBOLCHA DISTRICT OF EAST SHOA ZONE, OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

The Adami Tullu Jiddo Kombolcha (ATJK) district is renowned for its tomato production. Despite its potential, the sector faces challenges including low production, low output prices, high input costs, and underdeveloped value chains. Hence, a need to analyze the tomato value chain within ATJK district. The objectives were to identify actors involved in the tomato value chain, their roles, functions, and linkages; to analyze the marketing costs and margins among these actors; and to determine the factors influencing the quantity of tomatoes supplied to the market. Data were collected from 164 producers, 36 traders, and 36 consumers using pre-tested questionnaires. Simple random sampling was employed for producers, while purposive sampling was used for traders. The data were analyzed using descriptive statistics and econometric techniques. The main value chain actors identified included input suppliers, market actors (producers, wholesalers, rural collectors, retailers), and support organizations. The study identified six distinct tomato marketing channels in the area. Retailers achieved the highest gross profit in channels with 2,732.72 birr per quintal. The total gross marketing margin was highest (77.32%) in channels III, and V and lowest (49.18%) in channel IV. Producers' share of the gross marketing margin was highest (44.66%) in channel IV and lowest (22.67%) in channel III. Among traders, retailers received the highest margin (52.31%) in channel II, while wholesalers received the lowest margin (15.64%) in channel V. Two-Stage Least Squares (2SLS) regression analysis revealed that six variables—tomato production quantity, improved seed utilization, cooperative membership, non-farm income, and motor pump ownership—positively and significantly influenced the quantity of tomatoes supplied to the market. Conversely, livestock ownership had a significant negative impact on the quantity supplied. The study recommends that the government and other stakeholders focus on improving the distribution and quality of inputs such as fertilizers, improved seeds, and chemicals. Support for cooperative development, enhancement of irrigation facilities, addressing of resource competition and diversify of income source are also essential. Improved coordination among value chain actors is crucial for the growth of the agricultural secto