Value Chain Analysis of Pineapple in Gedeo and Sidama Areas, Southern Ethiopia

Tsadiku Alemu, Teklu Gebretsadik, Mulugeta Fola and Atnafua Bekele

Background and Objective: Ethiopia has favourable agro-climatic conditions for the growth of fruits. Fruit products in particular are bulky and perishable and need series integrations of the chain actors actively participating in all chain functioning groups in the system. Effective communication and commitment for the smooth functioning of the value chain of the product for pineapple at each stage are necessary but insufficient in our country as well as in the study area. Production, processing and marketing challenges are hampering the expected benefits in the study area from the pineapple sub-sector in agriculture. Hence, this study was conducted to analyze the value chain of pineapple in the Sidama and Gedeo areas of Southern Ethiopia. Materials and Methods: A simple random sampling technique was employed to collect data from pineapple producers. From Sidama 57 and Gedeo 63, a total of 120 respondents were selected for this study. Results: The value chain actors of pineapple were input suppliers, producers, collectors, retailers, wholesalers, processors and end users. Value-added products were pineapple fruits which are sorted, sliced fruit, fruit punch and juice. Two stages least square regression model was employed to analyze the determinants of pineapple market supply. The model result showed that the amount of pineapple produced, extension services of fruits, education level, sex, use of the improved variety and farm size were significant determinants of the market supply of pineapple fruits. The descriptive statistics reveal that the structure of its market is an oligopoly (58.41%). Producers end users channel is the best channel in which farmers are getting the highest marketing margin. In addition, according to the survey result, the majority (51.67%) of the respondents reported that the pineapple price decision was set by traders. Conclusion: The results indicate that significant variables affecting the market supply of pineapple fruits need to be prioritized to improve the marketing aspect of pineapple in the study area. The lower bargaining power of pineapple producers was also a challenge as the producers were being manipulated by the traders and middlemen. Therefore, relevant policy interventions are required to improve the overall value chain.

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