www.iaard.net IAARD Journals eISSN:2455-4464 International Journal of Economics And Business Management IAARD-International Journal of Economics and Business Management, 2017, 3(2),43-51 Analysis of the Gross Margin for Smallholder Onion Production in Fogera District of Amhara Region, Northwestern Ethiopia Taye Melese 1 and Dr . Ponguru CS Reddy 2 1 Department of Agricultural Economics, University of Gondar, Ethiopia. E-mail:
[email protected] 2 .Department of Agricultural Economics, University of Gondar, Ethiopia. E-mail
[email protected] …………………………………………………………………………………………………………………………………… Abstract: Onion crop is one of the most important horticultural crops among smallholder farmers because they derive benefits such as income, source of food, health care and rural employment. In Fogera district; onions have been perceived to have high market value, resulting in trade-offs with staple food. This study was aimed at estimate the smallholder onion producers’ farm gross margin and to identify constraints and opportunities of onion production and marketing in Fogera District of Amhara Regional in Northwestern Ethiopia. A stratified random sampling technique was employed to select 150 onion producers from four sample kebeles in the study area. Both descriptive and SWOT analysis were used to analyze the data. The gross margin analysis of onion production shows that, the gross income obtained from onion production was ETB 65,528 per hectare and the total cost per hectare was ETB 36,249 on samples households. Labor cost was the items occupying maximum share in total cost (43.66%) followed by input cost (33.34%), other cost include food expense, phone, post harvest loss etc (18.68%).Opportunity cost of land (2.44%) and animal power cost (1.88%) consists of the minimum cost share.