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This study was aimed to analysing value chain of wheat, the case of Koga Irrigation project in Amhara region Ethiopia. The main objectives of the study were to show the basic structure of wheat value chain, identify the actors of and their roles with in the value chains, and identify major opportunities and constraints in the wheat value chain. In this study, both primary and secondary data were used. The primary data for this study were collected from 121 producers, 27 retailers, 6 processors, 7 local collectors and 6 wholesalers selected by using appropriate sampling procedures. Producers, local collectors, wholesalers, retailers, cooperatives, unions, processors and urban retailers were found to be important actors in the wheat value chain. Value chain supporters were Amhara bureau of agriculture, Woreda agricultural office, Koga irrigation project office, office of trade and industry, Amhara credit and saving institution (ACSI), district cooperative promotion office, Aromia seed enterprise and NGOs (ISSD). Among cost of producers labour cost takes the highest cost (47.12) followed bay fertilizer and seed costs which were 17.22% and 16.67% respectively. Out of the total gross marketing margin of wheat, 31.03%, processors received the highest of all marketing actors which is 22.4% and local retailers received the lowest margin which is 1.7%. The remaining 2.07%, 7.32%, and 2.6% of marketing margin were received by retailers, wholesalers and cooperatives respectively along different channels. Price fluctuation, lack of working capital, wheat product quality problem, lack of market information was constraints. On the other hand increasing demand of the product, improvements in the infrastructures, and increasing number of wheat processors were major opportunities reported by respondents. Therefore, policies aiming at increasing producers’ provision of improved seed varieties, improving and increasing credit provider institutions, strengthening cooperatives, improving irrigation channel designing (irrigation water distribution), improving market information system, and exercising contractual farming are recommended to accelerate the chain’s development. |
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