VALUE CHAIN ANALYSIS OF MORINGA STENOPETALA (Baker F.) cufod IN CASE OF ARBA MINCH ZURIA DISTRCT, SOUTH REGIONAL STATE, ETHIOPIA

Abstract

Moringa stenopetala (M.stenopetala) plays a fundamental role in ensuring smallholders’ food security and creating job opportunities for producers and uses as medicinal plants. The study was aimed at analyzing M. stenopetala value chain in the case of Arba Minch Zuria district. Smallholder M. stenopetala producer located in Arba Minch Zuria district was the target population for this study. Simple random sampling technique was used to select 120 producers from 4305 producers at 91% confidence interval. Descriptive statistics, a value chain approach and an econometric model were employed to analyze the data. M. stenopetala value chain was mapped in different dimensions to dope out the actors involved in the chain, the core processes that took place along the chain, and the institutional arrangement. Input suppliers, producers, local collectors, wholesalers, retailers, processors and consumers were direct actors of M. stenopetala value chain in the study area. Office of agriculture and natural resource, Agricultural research center and NGO were supporters of M. stenopetala value chain. As well as, 13(15.48%), 21(25 %), 20(23.81%), 19(22.62%), 10(11.91%) and 1(1.19%) of producers sold their M. stenopetala product for wholesaler, retailer, local collector, consumer, processor and other, respectively. Heckman twostep estimation result showed that households intensity of M. stenopetala market supply was influenced by household size, education years, quantity produced, farm income and access to credit use. As well as households decision of market participation was influenced by sex of household head, household size, education years attended, experience of household head, quantity produced, non-farm income, credit use and access to market information. Generally, M. stenopetala value chain needs serious intervention to solve challenges hindering the sector. The study recommended that structuring an efficient value chain will be a possible solution; something which can only be possible through the joint efforts of smallholders, associations, larger companies and public institutions. Also, intervention in the area of linking actors in the value chain to prospective markets will also benefit them. Therefore, it is better if district office of agriculture and natural resource, research institution and NGO, solves the problem of M. stenopetala value chain.