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 District of , Northwestern Taye Melese 1 and Dr . Ponguru CS Reddy 2 1 Department of Agricultural Economics, University of , 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. Despite higher potential of the area for onion production, the smallholders are challenged by different endogenous and exogenous constraints ranging from production to marketing chain. Lake of reliable supply seed, unplanned production, Crop pest and quality issues are some of production constraints whereas market constraints are characterized by output and input price fluctuation, asymmetry of price information and limited buyers of the product affecting the bargaining power of smallholder producers. Based on the findings, the study suggests that the government and stakeholders should focus on encouraging the use of labour saving technologies and the government and other policy makers should increase marketing information and ability of onion farmers through avenues like mass media, extension service, and other means of capacity building.

Keywords : Gross margin analysis, onion, production, SWOT ……………………………………………………………………………………………………………………………………... 1. Introduction The demand for Alliums is worldwide and their use Ethiopia has a variety of vegetable crops grown in is not limited to any climate or associated to any nationality. different agro ecological zones produced through commercial They are consumed universally in small quantities and used as well as small farmers both as a source of income as well as in many homes almost daily, primary as a seasoning for food. Various types of vegetable crops are grown in Ethiopia flavoring varieties of dishes. Onion contains vitamin B and under rain-fed and/or irrigation systems (Alemayehu et al ., traces of vitamin C, carbohydrate and small percentage of 2010) 1. The major economically important vegetables proteins. In Ethiopia Alliums is for home use in flavoring of include hot and sweet peppers, onion ( Allium cepa ), tomato local dishes, like hot pepper; it is indispensable ingredient of (Solanum lycopersicum ), carrot, garlic ( A. sativum ) and the traditional sauce or “wot”. Besides it’s an important cash cabbage ( B. oleracea var. c apitata ). According to the crop to the farmers. Generally onion consumption is much Ethiopian Investment Agency (2012) 2, green beans and peas, higher than most other vegetables. Onion has significant okra, asparagus, cauliflower, broccoli, celery, eggplant and contribution to the national economy· cucumbers have also recently emerged as important export vegetables. Onion is considered as one of the most important In Fogera districts, where the study focused, onion vegetable crops produced on small scale in Ethiopia. It also crop is one widely horticultural crop grown in the area. The occupies an economically important place among vegetables entire onion production in the districts is mainly for market in the country. The area under onion is increasing from time sometimes which is utilized much for home consumption. to time mainly due to its high profitability per unit area and According to the Fogera district office of agriculture in 2015 ease of production, and the increases in small scale irrigation production season the district contributes 2,167,880 quintal areas. The crop is produced both under rain fed in the of onion with 9854 hectares. This indicates that the district “Meher” season and under irrigation in the off season. In contributes of the regional onion production. Despite the many areas of the country, the off season crop (under potential of the district for onion production, its productivity irrigation) constitutes much of the area under onion is low compared to the potential yield obtained in the production. Despite areas increase, the productivity of onion research centers and there is marketing problem evidenced by is much lower than other African countries. The low low farm-gate prices in the study area. These poor prices productivity could be attributed to the limited availability of among small-scale onion farmers have led to low household quality seeds and associated production technologies used, income. The nature of the product on one hand and lack of among the others (Akililu. et.al, 2015)3. organized market system on the other hand frequently resulted in low producers’ price (profit margin). Hence, this

Taye Melese and Dr. Ponguru CS Reddy Page No.43 IAARD-International Journal of Economics and Business Management, 2017, 3(2), 43-51 study attempts to estimate the smallholder onion producers’ 1216.3 mm, with Belg and Meher cropping seasons. Its farm gross margin and identify constraints and opportunity altitude ranges from 1774 up to 2410 meters above sea level associated with production and marketing of among small- allowing a favorable opportunity for wider crop production scale onion farmers in Fogera district. and better livestock rearing. The district is characterized by subsistence mixed farming system in which production of 2. Research Method both crops and livestock is common economic activity. The 2.1. Descriptions of Study Area current land use pattern includes 59.03 % cultivated land, This study was conducted in south Gondar, 22.73 % pastureland, 18.24 % water bodies and the rest for specifically in fogera district. It is one of the 126 districts in others .Most of the farmland was allocated for annual crops the region. It has an area of 117,405 hectares divided where cereals covered 52,759.99 hectares; pulses cover administratively in to 32 Kebeles (30 rural and 2 urban). The 9819.98 hectares; oil seeds 6137 hectares; root crops 1034.29 population size was 233,529. The total number of households hectares; and vegetables 882.08 hectares . Crop production who engaged in agriculture was 42,746 of which 26,277 are takes the lion’s share of consumption and income generation onion producers. The capital is Woreta located at the North of the household. Cereals crops widely produced in the area East on the main road to Gondar from (Fogera include teff, finger millet, rice and maize, pulse crops like district agriculture office, 2015) 4. chickpea and noug are the major crops grown. Moreover, vegetables and root crops produced in the area include The District is known for its plain nature where flat onions, potato, tomato, pepper, cabbage and sweet potato land accounted nearly 76 %. The mean annual rainfall is (Fogera district agriculture office, 2015) 4.

Figure 1: Map of the Study Area Source of Data: Source: (IPMS, 2005) 5

2.2. Source of data, Methods of Data Collection and agricultural office experts were consulted. There are two Sampling procedure urban and 30 rural Kebeles in the district, out of which 12 In this study both quantitative and qualitative were administrative Kebeles are producing onion. These Kebeles collected from primary and secondary sources. The cross- were selected purposively and stratifies based on agro sectional survey was conducted using structured ecology (lowland and upland agro ecology). From each of questionnaire, key informant interviews, and focus-group agro ecology two Kebeles Administrations (KAs) were discussions. Focus group discussions were held with two randomly selected based on lottery method, (Four KAs were groups based on predetermined checklists and a total of 10 selected). Then, the intended sample size from each sample key informants were interviewed from different organizations Kebeles were determined proportionally to household size of and institutions. The sample frame of the study was the list of onion grower farmer. Finally using the household list of small farmers in fogera district and Kebeles Administrations small onion producers, the predetermined size which is 150 (KAs). A stratified stage sampling technique was used to of the sample farmers from each Kebeles were randomly draw sample units. In the selection process fogera districts selected using systematic random sampling technique. 2.3. Method of Data Analysis analysis and SWOT analysis were used to address the To estimate the smallholder onion producers’ farm objectives. The cost and price information was used to gross margin and identify constraints and opportunity of construct marketing cost and margin. Many studies used onion production and marketing; Farm Gross Margin market margin than net returns for the analysis to compute

Taye Melese and Dr. Ponguru CS Reddy Page No.44 IAARD-International Journal of Economics and Business Management, 2017, 3(2), 43-51 profit. Rehima (2007) 6 used marketing margin analysis to produce 7 calculate profit of pepper marketing and Abay (2007) also Pi =price of input i applied marketing margin analysis for vegetables. The two qi= quantity of input i most common methods are Q= Total production per hectare a. Marketing margin : It is calculated as the V= Value of production difference between producers and retail prices. C= Total cost of production The producers share is the commonly employed However, the farm gross marginal analysis has limitation that ratio calculated mathematically as, the ratio of is it does not consider the economic costs and benefits. The producer’s price to consumer’s prices. farm gross margin analysis estimates the profit accruing to Mathematically, producers share can be expressed the project entity or to participant, where as economic as: analysis measures the effect of the project on national (1) economy. So that, all implicit cost was not be considered in P MM PS = X = 1 − the calculation of the financial profit analysis (farm gross P P margin analysis). r r Where: PS = Producers Share 3. Result and Discussion Px = producer price of onion 3.1. Gross Margin Analysis of Onion Production Pr = Retail Price of onion Before proceeding to the calculation of profit and MM = Total marketing margin margins, the underlying assumptions must be explicit. Hence Consumer Pr ice − Farmers Pr' ice TGMM = × 100 the following points were considered in the calculation of Consumer Pr ice profit and margin. (21) Where TGMM- Total Gross Marketing Margin 1. The price of onion per quintal is estimated by market The producer margin also estimated by introducing the idea price. of ‘farmer’s portion’, or ‘producer’s gross margin’ (GMMp) 2. Onion yield is measured in “quintal” per hectare i.e. the which is the portion of the price paid by the consumer that amount of onion yield that actually sold in the market. goes to the producer. It is calculated by using the following 3. Since each farmer has plots with different soil fertility, formula: flooding status, the opportunity cost of land of each farm − will vary so the opportunity cost land given by each = PC TGMM × GMM P 100 (32) farmer was considered as it is. PC 4. Transportation cost by donkeys’, by cart and car from Where GMMP- Gross Marketing Margin of Producers' farm to town was calculated based on the amount of PC- Final consumer price quintal to be transported per vehicles type. The net marketing margin (NMM) is the percentage of the 5. Labor cost is estimated based on the price or wage of final price earned by the intermediaries as their net income labour in each locality. after their marketing costs are deducted. TGMM − MC 6. The Price of a pair of oxen per day is estimated based on NMM = × 100 4) P the rental value in the each locality. C Where MC= Marketing cost 7. The price of fuel per litter estimated based on market value. b. Profitability analysis 8. A 13% interest rate per month is considered for the Nuru et al . (2006)8 also used the profitability interest rate calculation which is available for loans or analysis of processing crude honey. To estimate the credits from Amhara Credit and Saving Institute (ACSI). profitability of crude honey at farm gates and local markets of the study areas were considered. Processing equipment On the survey all cost structure and return were and expenses were estimated based on current market price. collected at Timad level (which is one fourth of a hectare) for The net profit of processing of crude honey was calculated by final analysis all costs and returns were converted to hectare considering all inputs and expenses required to purchase and basis to keep the standard and readable. The average onion process the crude honey and also the output. production was 136.48 quintal per hectare with a standard deviation of 44.3. Onion producers generate income from Dejene (2008) 9 studied the profitability of extension sales of onion yield (main product) only, there is no by package inputs for wheat and barley in Ethiopia. He product other cereal crops like rice so that in this study, onion employed simple calculation of value-cost-ratio (VCR). The yield only considered to calculate the gross income of unit of analysis is hectare of land. The model takes the usual farmers. The gross income of onion production was ETB gross profit formula. Hence, for this study the farm gross 65,528.14 per hectare and the standard deviation was profit and the cost margin analysis was adopted to analyze 44,289.3 (Table 1). the profitability of onion production in the study area (Astewel, 2010, Almenew , 2013) 10,11 Table 1 also revealed that expenditure per hectare (5) on various inputs used in the production of onion. The Table n showed that the total cost per hectare was ETB 36,249.4 on Gross = V − C = PQ − qP profit ∑ ii samples households. Labour cost, was the item taking i Where P= price of maximum share in total cost (43.66%) because onion crop is a labor intensive crop, therefore, seedling and planting

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Table 1: Profit and Cost of production of onion per hectare

Item Average Std. dev value(birr/ha) Amount produced in 2015 in quintal 136.48 44.3 Amount sold in 2015 in quintal 106.739 56.62 Average selling price per quintal for 2015 613.91 Benefit(sales) 65,528.14 44,289.3 Birr/h/quintal % of share cost A. Labor cost ( both hired and family labor) Cost for oxen plowing/hectare 1,027.9 2.8 Cost for seedling and planting 3,946.6 10.9 Cost for Cultivating/hectare 2,451.5 6.8 Cost for Weeding /hectare 2,520.3 6.95 Cost for Harvesting/ hectare 2,451 7 Cost for loading and unloading 182.0 0.502 Cost for Trashing/ hectare, cleaning, cutting 2,774 8 Cost for Transportation/ hectare 472.8 1.3 Total labor cost 15,826.1 43.66 B. Animal power cost Animal power cost for plowing 452.6 1.2242 Animal power cost for transport like cart, donkey 229.2 0.63229 Total animal power cost 681.8 1.88 C. Material input cost Cost for seed 4,856.9 13.4 Cost for fertilizer 2,990.0 8.2 Cost for insecticide 2,830.3 7.8 Cost for chemicals 515.0 1.4 Cost for irrigation, motor pump rent 738.7 2.037762 Cost fuel 175.6 0.484533 Total material input cost 12,106.5 33.34 D. Opportunity Cost for land 884.48 2.44 E. Other costs Cost for interest rate 40.0 0.110347 Cost for phone 231.9 0.639742 Cost for food 2,505.8 6.912607 Cost for broker 1,111.9 3.067313 Cost for loss 2,881.1 7.948097 Total other costs 6,770.7 18.68 Total average cost per quintal 342.08 Total average costs per 36,249.4 100 hectare(A+B+C+D+E) Net profit(loss)/ha 29,278.74 45447.77 Net profit(loss)q 271.83 Gross margin (%) 0.45 Source: computed from survey data, 2015

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Appendix Table 1 Onion production in fogera Woreda at each Kebele in 2015

Name of onion Area of land cultivated for Total production in Number of farm Agro ecology producing onion in ha. qts 2015 households Kebele participated Bubuks 1492 276,020 1539 Upland Kokit 178 32,930 Lowland Shina 1647 304,695 Lowland Diba 193 35,705 Upland Wagetera 821.75 152023.75 Lowland Kuhar Abo 166 30,710 Upland Shaga 143 26,455 487 Lowland Rib Gebireal 340 62,900 Upland Woreta Zuria 828.25 153,226.25 800 Lowland Kidist Hanna 432.25 79966.25 Lowland Kuhar Micheal 853.5 157897.5 780 Upland Tiha Zekena 234 43,290 Lowland

Source: Fogera district agriculture office, 2015

Appendix Table 2:ANOVA analysis of gross income, cost and profit among onion producer Kebeles 2015

Source Sum of Df Mean square F Sig square Gross Between 1.6637e+11 3 5.456e+10 64.31 0.000 income groups Within groups 1.2590e+11 146 862343811 Total 2.9227e+11 149 1.9615e+09 Total cost Between 1.6024e+10 3 5.3414e+09 8.81 0.0000 groups Within groups 8.8 557e+10 146 606557344 Total 1.0458e+11 149 701890401 Profit Between 1.6409e+11 3 5.4697e+10 55.59 0.0000 groups Within groups 1.4367e+11 146 984024300 Total 3.0776e+11 149 2.0655e+09 Source: computed from survey data, 2015

Appendix Figure 1: average producer price of onion at fogera market from 2009-2015

S o urce: Fogera district Trade and Transport office, 2015

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Appendix Figure 2: Production trend of onion in fogera district in the last five years

Source: Fogera district agriculture office, 2015 ranked first, cutting and cleaning is the second rank, weeding Gross Market Margin (%) = (Benefit-Cost)/Benefit*100 = is the third. Weed also a major problem. Besides, harvesting, (65,528.14 - 36,249.4)/ 65,528.14*100 =45% cultivating and plowing costs rank fourth and fifth in the labor cost component for onion production respectively. The appendix Table 2 indicated that there is The second largest cost component of onion significance difference between four Kebeles in terms of production was material input cost (33.34%) like fertilizer, gross income, total cost and profit at 1% significance level. seed, insecticide and fuel. The share of material input cost for The least significance difference or mean difference (LSD) seed was highest and it’s about ETB 4,856.9 per hectare. It shows that Kuhar Micheal administrative Kebeles has a ranked 13.4% of the total cost of production. Moreover the significant difference from other three Kebeles’ (Bubuks, value other cost like cost for food, phone, broker, loss taking Woreta Zuria and shaga ) in terms of gross income only. (18.68%) from total cost of production and opportunity cost Similarly the least significance difference or mean difference of land (2.44%), finally the animal power cost (1.88%) (LSD) showed that Woreta zuria administrative kebele has a consists of the minimum share of production cost. significant difference from other three kebeles’ (Bubuks, kuhar mikial and shaga ) in terms of cost, and profit. The gross margin analysis of onion production per hectare bases shows that production of onion was profitable. 3.2. SWOT analysis of Production and marketing The average net income for production of onion per hectare problems and opportunities obtained was ETB 29,278.7 with a standard deviation of 45447.77 and also the onion gross margin analysis for 2015 Even though empirical results pointed out that showed that the average gross gained for the onion producers variables which were included in the models above affected was on average estimated to be ETB 271.87 per quintal. household market supply and market outlet choices, households perceived a number of other constraints and Moreover the study revealed that smallholder onion opportunists that affected onion production and marketing in producers are benefited by generating higher return with their area. As a result, they have given their perspectives on gross margin of 45%. Using the following computation. most important constraints and opportunities affecting onion Gross Margin Analysis (GMA) = (Benefit-Cost)/Benefit = production and marketing and their responses are (65,528.14 - 36,249.4)/ 65,528.14 =0.45 summarized in Table 2 below.

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The steady growth in the production and marketing were undertaken and the following problems and were of onion was not without problem. Problems stretched early identified in order of importance. For sake of clear from input supply late to marketing. Understanding problems understanding results of the SWOT analysis are listed under. and opportunities with priorities was very important for both The results of the SWOT analysis carried out with the onion research and development initiatives. For this purpose, producers. Strengths and opportunities are the internal and internal weakness and strengths of actors and external external factors that are advantageous to the business while opportunities and threats are analyzed under categories of weaknesses and threats are the internal and external factors economic, social, technological, demographic and that put the business at a disadvantage. institutional themes. A number of frequent rapid field survey supported with group discussion and key informant survey Table 1: SWOT analysis matrix Strength on production and marketing Weakness on production and marketing Production Production ° Onion production by cluster ° absence or poor Post harvest Technology ° Increment of onion producer ° Lack of coordination(unplanned) during production ° Improving road access ° Usage of agricultural input beyond the recommended ° Onion Seedling through row capacity ° Increasing habit of row planting system ° Poor agronomic practice ° Self preparation of seedlings ° Lack of improved and high yield varieties ° Advancement of input utilization ° Limited access to and supply of agricultural input like ° Producer was reported profitable reliable seed ° Increasing telecom service ° Insufficient product handling ° Potential for growth production ° Sale problem and lack of persistent trader ° Accumulated traditional skill ° Lack of chemicals and high price ° Picking of onion before maturity date ° Producing low quality onion product Marketing Marketing ° Entrance of buyer on farm(mun.ltiple customer) ° Exploitation of producer by illegal trader ° Increment of wholesaler from Mekele and ° Problems between contractual agreement b/n producer Gondar and cooperative ° Increment of onion production even if there is ° Absence of law enforcement on standards no market integration, price difference ° Lack of credit service, Limited production and ° Suitable road infrastructure for marketing marketing extension support ° High supply ° Imperfect price system(price setting problem) ° Payments received at delivery ° Inadequate availability of market research and ° Employment marketing information ° Malpractice in selling method (Scaling or Weighing): Opportunity on production and marketing Threat on production and marketing Production Production ° Fertile arable land and abundant ° Pest and disease( Mich and Korach) ° Naturally endowed underground water potential ° Surface water shortage and wastage(maturity) ° Access of labor, infrastructures ° Lack Storage processing facility ° Existence of product diversification ° Drought, frost, ° knowledge sharing by IPMS, Wetland, AGRO - ° shortage of irrigable land BIG ° Problem of theft ° Farmers follow a cluster based production ° Poor Technology generation & dissemination system ° Excessive local lending rate (16 % per month ° Deployment of development agent and FTC at ° Non availability of certified seed each Kebeles ° Lack of reliable statistics on production ° Suitable agro ecological ° Ample experience of farmers in onion production Marketing Marketing ° Onion farmers receive their money on farm ° Lack of coordination ° Ability to control broker ° Adversarial, with hiding of information ° Onion production supported by research ° Post harvest technology ( storage loss) ° Mostly onion production is market oriented ° Lack of institution support and warehouse ° Availability of expert supervision ° Delays in price payments ° Building of warehouse at Kebeles level ° Weak extension support service ° Proximity to main road, Lake Tana ° Perishability ° Growing number of buyers ° Low price of product and lack of market integration Source: Computed from survey data, 2015

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The strengths of onion production in production and service sector has to take in to consideration this issue, and marketing side include self preparation of seedling, training is needed for farmers to stagger the planting time increasing habit of row planting and onion production by cluster. Onion production in district was reported to be The findings of the SWOT analyses from the focus profitable. Farmers participated in group discussion group discussion result of the study can used to establish the articulated that they were benefiting from onion production structure of a new onion farm production so that farmers or and improving their way of life. The single most important stakeholder should improve the present situation of the farm improvement mentioned was the ability to purchase using strengths and removing weakness to use opportunities, agricultural input, send children to school, followed by similarly using strengths and removing weakness to avoid improvements in housing condition. Infrastructure (access to threats. road, telecom service) in the district well developed thus lowering operating and transportation costs for onion. Onion Finally, even though the smallholder onion producer marketing also creates employment through increasing high farmers in the district seems profitable and attractive as supply; farmers also receive their money at delivery time. indicated from the survey result, there is a room to boost more the profit without requiring additional resource and Several weaknesses affecting the onion production great attention should be given to the mode of production and and marketing district were also identified. These included marketing side to seek stable income from it for all market unplanned production, absence of supply of reliable seed and players. That is to say, there should be a mechanism to solve absence of appropriate post-harvest handling practice such as the constraints and to exploit the opportunities since these onion farm field watering one or two days prior constraints are the factors that reduce the market participation uprooting/harvesting in order to increase weight during and profitability. Accordingly, the following selling was the usual practice that resulted in poor quality, recommendations are forwarded to design appropriate easily damageable onion and eventually low price. There was intervention strategy and to strengthen the existing workable also a problem related to poor agronomic practices such as strategy. There should be credit access in required amount tillage, application of chemical fertilizer, watering and and time. Moreover, the credit access should be available not Weeding in the production of onion in the study area. The only trading activity but also for onion production. The cost Fogera district onion crop was characterized by imperfect share of labour for cultivating, weeding, harvesting, and seed market information. Moreover, weight cheating was a took the lion’s share of the total costs of onion production. common practice and market power was taken by the traders To this effect, there should be a technology (labour saving technology) that can minimize the cost of these inputs. Onion 4. Conclusion and Recommendations producer in the study area have limited access for market Fogera district is one of the potential onion information. To increase the market efficiency of the onion, producing districts found in western part of the Amhara there should be local and national market or price regional national state. The main objective of the study is to information access to producers through different media like estimate the profitability of onion production of farmers and for sesame and other cash crops. assesses constraints and opportunities of onion production and marketing in the study area. Onion production in Fogera 5. References district has increased significantly for the past years. It has 1. .Alemayehu , N., D. Hoekstra, K. Berhe and M. Jaleta, significant contribution in annual household’s income, source 2010. Irrigated vegetable promotion and expansion: The of food, health and rural employment. Farmers grow onion case of Ada’a District, Oromia Region, Ethiopia. crop for the purpose of selling to get cash. In general onion 2. Ethiopian Investment Agency, 2008. Investment production has contributed to significant amount of income opportunity profile for tomato pro-cessing in Ethiopia. to sample households and brought change in their life. The Ethiopian Privatization Agency, Addis Ababa, Ethiopia gross margin analysis of onion production shows that, the 3. Aklilu Nigussie, Yitagesu Kuma, AbiyAdisu, Tigist gross income obtained from onion production was ETB Alemu and Kidane Desalegn. J Horticulture, 145, 2, 65,528 per hectare and the total cost per hectare was ETB 2015. 36,249 on samples households. Labor cost was the items 4. Fogera district agricultural office. 2015. Socio-economic occupying maximum share in total cost (43.66%) followed profile description of fogera district of North Gondar, by input cost (33.34%), other cost include food expense, wereta, Ethiopia. phone, post harvest loss etc (18.68%).Opportunity cost of 5. IPMS (Improving Productivity and Marketing Success), land (2.44%) and animal power cost (1.88%) consists of the Fogera Woreda Pilot Learning Site Diagnosis and minimum cost share. Farmers participated in group Program Design. Improving Productivity and marketing discussion articulated that they were benefiting from onion Success- International Livestock Research Institute. production and improving their way of life. The single most Addis Ababa. 77, 2005. important improvement mentioned was the ability to 6. Rehima Musema, 2007. Analysis of red pepper purchase agricultural input, send children to school, followed marketing: the case of Alaba and Silitie in SNNPRS of by improvements in housing condition. However, onion Ethiopia. An MSc Thesis Presented to School of production is seriously affected by absence of reliable seed, Graduate Studies of Haramaya University. 153p. unplanned production, poor marketing system and price 7. Abay Akalu, 2007. Vegetable Market Chain Analysis: fluctuation every year. Hence the local government extension The Case of Fogera District in ANRS of Ethiopia. An and research system has to give a due attention to local seed Msc. Thesis Presented to the School of Graduate Studies growers in providing technical back up and in certifying the of Haramaya University. pp99. seed they produce to keep the quality of seed and extension

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8. Nuru Adgaba, Eddosa Negara, Sebsibe Zuber, 2006. 10. Astewel Takele, 2010. Analysis of rice profitability and Profitability of processing crude honey. PP.133. marketing chain: The case of Fogera District, South Reversing Rural Poverty in Ethiopia; Dilemmas and Gondar Zone, Amhara National Regional State, critical issues. Proceedings of the 9th Annual conference Ethiopia. M.Sc thesis presented to School of Graduate of the agricultural Economics society of Ethiopia, Addis Studies, Haramaya University. 76. Abeba, Ethiopia, July 2006. 11. Alemnewu Abay, 2010. Market Chain Analysis of Red 9. Dejene Legese, 2008. Profitability of extension package Pepper: The Case of Bure Woreda, West Gojjam Zone, inputs for Wheat and Barley in Ethiopia. The case of Amhara National Regional State, Ethiopia. M.Sc Thesis Limuna Bilbilo Wereda (Arsi Zone). Rural Development Submitted To The School Of Graduate Studies, and environment in Ethiopia; prospect and challenges. Haramaya University. 91. Proceeding of the 10th Annual Conference of Agricultural Economics Society of Ethiopia , Addis Abeba, Ethiopia, may 2008.

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