Abstract:
Potato crop is important for its contribution to food security and as income support to a large proportion of the rural households. However, enhancing potato farmers to reach markets and actively engage in potato value chain is a key chain needed in the study area. The study aims to analyze the potato value chain, identify actors and their roles, analyze market structure and performance, and identify opportunities and constraints using cross-sectional data. It uses primary and secondary data, with a two-stage random sampling method to select potato producers and traders. Data analysis includes descriptive statistics and econometric models that were Heckman two-step model for analysis. The study presents the demographic and socio-economic characteristics of potato producers, traders, and consumers. In this study the main actors include input suppliers, producers, collectors, wholesalers, retailers, processors, and consumers. The value chain map illustrates the flow of potatoes from input suppliers to final consumers. The potato market in Kersa District is characterized by a weak oligopoly with imperfect competition. Market performance is evaluated through marketing costs and margins. Factors influencing market participation include distance to the nearest market, livestock ownership, access to market information, use of inorganic fertilizer, soil fertility, crop rotation, and plot distance. Additionally, Factors affecting the volume of potato sales include farming experience, frequency of extension contacts, land allocated for potato production, use of inorganic fertilizer, cooperative membership, crop rotation, soil fertility, and plot distance. Moreover, the study identifies production and marketing constraints, such as land shortages, high input costs, and market access issues. It also highlights opportunities like government support, infrastructure improvements, and market demand. Finally, this study recommends strengthening extension services and supporting cooperative formation to improve potato production and marketing in the study area.
