Value Chain Analysis of Wheat (Triticum aestivum): The Case of Dembecha District, West Gojjam Zone, Ethiopia

Abstract

This study aimed to analyze the value chain of wheat in Dembecha district of West Gojjam zone. A total of 130 farm households, 30 traders, 2  bakers, 1 processor, 4 cooperatives and 10 consumers were used to collect the data. Functional and institutional approach of value chain analysis  showed input providers, producers, cooperatives, collectors, wholesalers, retailers, and processors were found to be important wheat value chain  actors. Four firms concentration ratio (CR4) was found to be 39.78% and there were information asymmetry and observed barriers to enter into  wheat market. Buying, selling and pricing strategies showed deviation of wheat market from competitive market norms. Analysis of marketing  margins revealed that processors received the highest (39.72%) marketing margin and retailers received the least marketing margins (4.85%) from  consumers’ price. Even if wheat in the study area deviate from competitive market norms as a result of oligopolistic market structure and conduct,  profitability analysis of wheat market showed all market actors operated at profitable level. Supporting farmers and increase productivity through  practical research, develop pie-growing mechanisms among actors, founding agro-processing firm, providing infrastructural facilities, designing  advance way of disseminating market information, determining appropriate pricing strategies should be done to strength value chain development.