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Value Chain Analysis and Identification of Upgrading Options for Eucalyptus Poles and Fuelwood in Sidama

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Value Chain Analysis and Identification of Upgrading Options for Eucalyptus Poles and Fuelwood in Sidama VALUE CHAIN ANALYSIS AND IDENTIFICATION OF UPGRADING OPTIONS FOR EUCALYPTUS POLES AND FUELWOOD IN SIDAMA. THE CASE OF HAWASSA ZURIA DISTRICT, SOUTHERN ETHIOPIA In the fulfillment of the requirements for the academic degree of Master of Science (MSc.) In Tropical Forestry and Management By: Asabeneh Alemayehu Munuyee Supervisor: Dr. rer. nat. Eckhard Auch Institute of International Forestry and Forest Products, Faculty of Environmental Sciences Technische Universität Dresden, Germany Co-supervisor: Prof. Dr. Tsegaye Bekele Hawassa University, Wondo Genet College of Forestry and Natural Resources, Wondo Genet, Ethiopia Faculty of the Environmental Sciences, Department of Forest Sciences, Institute of International Forestry and Forest Products, Technische Universität Dresden. Date of submission: November 09, 2018 Permitted/not permitted for lending Dresden, ............................... ……………………………………… Head of the Examination Boar Declaration I hereby assert that this thesis entitled ‘The Value Chain Analysis and Identification of Upgrading Options for Eucalyptus Pole and Fuelwood in Sidama, the case of Hawassa Zuria District, Southern Ethiopia’ is my own work and that all sources of materials used for this thesis have been duly acknowledged. This thesis is submitted in partial fulfillment of the requirements for MSc. Degree in Tropical Forestry at Technische Universität Dresden (TUD). I solemnly declare that this thesis is not submitted to any other institution anywhere for the award of an academic degree, diploma, or certificate. In agreement with the supervisors, the connection with the enterprise, state organs or institutions, etc. was only created in the cases referred to in the thesis. Place and date ........................................... Signature................................ i SLUB using permission Herewith I entitle the Library Saechsische Landesbibliothek – Staats- und Universitaetsbibliothek Dresden, Zweigbibliothek Forstwesen, to make available in their premises my Master thesis for all kind of library usage including reference library. …………………. …………………………………….. Date Signature ii ACKNOWLEDGMENT First of all, I would like to thank the Almighty God and Saint Marry, for giving me the aptitude, endurance, determination, and guidance throughout the ups and downs of my life. My profound sense of gratitude goes to my supervisor Dr. rer. nat. Eckhard Auch, TU Dresden for his continuous support, encouragement and patient instructions which have always boosted my confidence. I humbly thank for his illuminating guidance, perceptual interest, valuable suggestions and ever helping mind at every step throughout my study. I am also much indebted to my co-advisors Prof. Dr. Tsegaye Bekele, Hawassa University Wondo Genet College of Forestry and Natural Resource for his constructive comments throughout the study period and proper guidance and practical suggestions during field research at Chefasine kebele, Sidama zone that enabled me to collect relevant data for my thesis. Similarly, I would like to thank Dr. Jude N. Kimengsi (Postdoc student - TU Dresden), Mr. Christopher Chesire and Mr. Hingi Ombeni, Tropical Forestry master students, for their genuine suggestions and critical comments. I extend my sincerest thanks to Deutsche Akademische Austauschdienst e.V (DAAD) for providing an opportunity to study Tropical Forestry and for their both financial and logistic support. It is my great pleasure to thank the WoodCluster project and all staffs of the project (Prof. Dr. rer. nat. Jürgen Pretzsch, Dr. Maxi Domke and others) from TU Dresden for the coordination and follow-up. I am grateful to all the professors, lecturers, and Tropical Forestry coordinators for their invaluable support throughout my study period here in Germany. My thank also goes to Chefasine kebele administrators, development agents and expertise, Tulla and Hawassa traders, tree growers, constructors, carpenters, Hawassa Environment, Forest and Climate change ministry and Hawassa Revenue and Customs Authority officials for their willingness and support during my filed stay. Special thank goes to Mr. Taffesse and Mr. Belayneh for their assistance and guidance during my data collection. Without their help and cooperation, the thesis would not be finalized. I also take this opportunity to extend my sincerest thanks to all of my friends who showed collaboration when I was collecting data and writing up the thesis. Last but not least, I wish to express my highest gratitude to my families for their love, support, and encouragement throughout my life. Special thanks go to my uncle Mr. Tadesse Belay and his wife Mrs. Bayushe for their great advice and encouragement for my success. iii LIST OF ACRONYMS CBA Commercial Bank of Ethiopia Cm Centimeter CSA Central Statistical Agency of Ethiopia DA’s Developmental Agents DAAD Deutsche Akademische Austauschdienst e.V DBH Diameter at Brest Height ETB Ethiopian Birr FAO Food and Agriculture Organization ha Hectare HAF’s Homestead Agroforestry systems HCRCA Hawassa City Revenue and Custom Authority HEFRC Hawassa Environment and Forest Research Center HMEFCC Hawassa Ministry of Environment, Forest and Climate Change ILO International Labour Organisation m Meter NGO’s Non-Governmental Organizations OECD Organization for Economic Co-operation and Development PIP Participatory Innovative Platform SIDA Swedish International Development Cooperation Agency SNNP South Nation Nationalities and peoples of Ethiopia SPSS Statistical Package for Social Sciences TGA’s Tree grower associations UNSO United Nations Statistical Office TUD Technische Universität Dresden US $ United States of America currency VA Value Added VCA Value Chain Analysis WFP World Food Program iv CONTENTS PAGE ACKNOWLEDGMENT ........................................................................................................................... iii LIST OF ACRONYMS ............................................................................................................................. iv LIST OF FIGURES AND TABLES......................................................................................................... ix ABSTRACT................................................................................................................................................ xi CHAPTER ONE ......................................................................................................................................... 1 1 INTRODUCTION .............................................................................................................................. 1 1.1 Background of the study ............................................................................................................... 1 1.2 Problem of the statement .............................................................................................................. 3 1.3 Research objective and questions of the study ............................................................................. 4 1.4 Limitation of the study .................................................................................................................. 5 1.5 Organization of the thesis ............................................................................................................. 6 CHAPTER TWO ........................................................................................................................................ 7 2 LITERATURE REVIEW AND THEORETICAL FRAMEWORK ............................................. 7 2.1 Historical development and current status of Eucalyptus plantation in Ethiopia ......................... 7 2.2 Products and services from Eucalyptus woodlot .......................................................................... 9 2.3 Socio economic benefits of Eucalyptus species in Ethiopia ....................................................... 11 2.4 Eucalyptus and government in Ethiopia ..................................................................................... 11 2.5 Theoretical Framework ............................................................................................................... 12 2.5.1 Understanding the concept of value chain .......................................................................... 12 2.5.2 Theory of access ................................................................................................................. 14 2.5.3 Value chain governance (Coordination) ............................................................................. 14 2.5.4 Upgrading the value chain .................................................................................................. 16 2.6 Conceptual framework ................................................................................................................ 16 CHAPTER THREE .................................................................................................................................. 19 3 RESEARCH METHODOLOGY .................................................................................................... 19 3.1 Description of the study area ...................................................................................................... 19 v 3.2 Agriculture and land holding size ............................................................................................... 20 3.3 Research design .......................................................................................................................... 21 3.4 Sources
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