Abstract:
This thesis is focused on seed value chain mapping and analysis of finger millet in Debub Achefer Wereda of Ethiopia. The objectives of the study were to develop value chain map of the finger millet seed, identify determinants of household participation decision and level of participation in finger millet seed marketing and examine the performance of finger millet seed value chain. The study used both primary and secondary data. A total of 194 respondents that is 26 from traders and 168 from household farmers were interviewed using different structured survey questionnaires. Focus group discussion and key informant interviews were used. Unlike to marketing systems of finger millet grain, seed market is informal and has no licensed middlemen actors. Seed value chain map was developed and based on the map over 80% of marketed finger millet seed product is directly flow from producers to farmers and the producers have more power for making initial price. Both in finger millet grain and seed, farmers took the highest profit margins which are 375.5 ETB/qt and 669.05 ETB/qt respectively. Double hurdle model was employed to identify factors that determine market participation decision and intensity of participation in finger millet seed market. The model result showed that market distance have negative and literate household head and extension contacts have positive significant effect for participation decision and total finger millet output has positive significant effect for intensity of participation. The SWOT analysis result showed lack of trend for allocating land alone for seed production, trend of using grains for seed, absence of seed business association, absence of full extension package, expensiveness of the crop’s threshing activity in terms of time, cattle power and labor consumption and expansion of eucalyptus trees were the observed weaknesses and threats of the value chain. Establishing local seed businesses, developing full finger millet extension package, formalizing the seed market system, providing technical support for small land holders and introducing a finger millet variety having high grain and straw yield, high market demand and inexpensive threshing activity in terms of labor, time and cattle power are recommended for finger millet grain and seed value chain development.
Key words: finger millet, seed, grain, value chain analysis, SWOT analysis, double hurdle.