Ethiopian Journal of Environmental Studies & Management 12(5): 509 – 519, 2019. ISSN:1998-0507 doi: https://ejesm.org/doi/v12i5.3 Submitted: April 30, 2019 Accepted: October 24, 2019 ANALYSIS OF SOYBEAN VALUE CHAIN IN BUNO BEDELE ZONE, SOUTH WESTERN ETHIOPIA *ESAYAS NEGASA HAMBISA 1 AND MUSTEFA BATI GEDA 2 1Department of Agribusiness and Value Chain Management, Mettu University, P. O. Box: 318, Mettu, Ethiopia. 2Department of Agricultural Economics, Mettu University, P. O. Box: 318, Mettu, Ethiopia *Corresponding author: [email protected] Abstract In Bunno Bedelle zone, soybean is a major cash crop which is mainly produced by smallholder farmers. The study was undertaken with the objective of mapping value chain actors, estimating share of actors' margin, identify major constraints and opportunities and identifying market channel of soybean by smallholder farmers. Multi stage random sampling techniques were employed to select a total of 218 farmers from nine Kebeles. Data were collected from both secondary and primary sources. Descriptive, SWOT analysis and value chain mapping methods of data analyses were used to analysis the data. Soybean value chain analysis of the study areas revealed that the main value chain actors were input suppliers, soybean producers, wholesalers, retailers, collectors, processors, exporters and consumers. The major constraints identified are low access to improved inputs, collateral problem to get credit, poor storage facilities, low price of produce, and low negotiation (bargaining) power of producers. Therefore, improving extension services, sharing of experience among soybean farmers, increase land allocation and market information dissemination are require to improve productivity and profitability of soybean farming in the region and Ethiopia at large. Key Words : Soybean, Value chain, Benefit share, Profit share Introduction nutrients. It can substitute for meat and to Soybean is one of the world’s most some extent for milk. It is a crop capable important pulse crops. Soybean, a short- of reducing protein malnutrition. Soybean day plant, is a very important oil and is an alternative protein source to the rural protein crop. It can grow on all types of families and can be utilized at home in soil, but deep fertile loam with good various forms and the surplus can be sold drainage is most suitable for growth. It is to other consumers and manufacturers for an annual crop, fairly easy to grow, that income Soybean is among the major produces more protein and oil per unit of industrial and food crops grown in every land than almost any other crop. It is a continent (FAOSTAT, 2011). versatile food plant that, used in its various In the major producing countries and forms, is capable of supplying most particularly in Brazil, Argentina, Paraguay This work is licensed to the publisher under the Creative Commons Attributions License 4.0 509 Analysis of Soybean Value Chain i n Buno Bedele Zone ................ Esayas & Mustefa and the USA soybean contributes opportunities faced in the soybean value significantly to the total value added by chain, and identify the benefit share of the agricultural sector. In these countries, smallholder producers which are not yet soybeans and its sub-products also occupy well studied. an important position in total export Objective of the Study earnings (Jagwe and Owuor, 2004). In The general objective of the study is Ethiopia, regions with high potential for aimed at analyzing soybean value chain in soybean are Benishangul-Gumuz and the study area. The specific objectives of SNNPR. High potential areas for the study are: upgrading of commercial soybean • To identify soybean marketing production are Bedele, Chewaka and channel in study area Jimma zone (Oil Seeds Business • To map the value chain and estimate Opportunities Ethiopia, 2009). the share of profit of actors along the Even if soybean is benefiting the chain society at both micro and macro level of • To identify major constraints and the economy, its marketing operation is opportunities of soybean value chain challenged by lack of information and/or in study area. absence of business oriented agricultural Study Area production system, limited or no access to Chewaka, Didessa and Gechi districts market facilities infrastructure which are located in Buno Bedele zone. hinder market arrangement and fair share Chewaka is located 600 kilometres west of profit margin among the stakeholders of Addis Ababa. It has 28 administrative (FAO, 2011). Bezabh (2010) also kebeles (villages). The total land area of identifies that, agriculture continues to the district is about 52,227 hectares, and face a number of problems and challenges. the population is estimated to be 78,783 The major ones are lack and/or absence of (CSA, 2008). Gechi is one of the district business oriented agricultural production in the Buno Bedele Zone, is bordered on system, limited or no access to market the south by Didessa, on the east by facilities resulting in low participation of the Jimma Zone, on the north by Bedele, the smallholder farmers in value chain or and on the east by the Didessa River which value addition of their produces. separates it from the Jimma Zone. The Cultivation and production of soybean is 2007 national census reported a total currently constrained by a lack of population for this district of 70,478, of awareness about the crop by farmers and whom 35,307 were men and 35,171 were private sector and by a lack of knowledge women; 5,442 or 7.72% of its population on its potential uses and processing were urban dwellers. Didessa is one of methods. Moreover, there is a lack of the districts in the Oromia linkages between the small produce of Region of Ethiopia. It is named after farmers and soybean demand from the Didessa River, a tributary of the Abay factories (Gurmu, 2010). The Ethiopian River. Part of the Buno Bedele Zone, soybean value chain is essentially full of Didessa is bordered on the south by the challenges yet replete with opportunities. Didessa River which separates it from It is constrained by a number of factors. the Jimma Zone, and on the north Hence, this study was focused on analysis by Gechi. The major town in Didessa the constraints, challenges and 510 Ethiopian Journal of Environmental Studies and Management Vol. 12 no.5 2019 is Dembi. Soybean is an important cash As a result, 218 soybean producer crop of this district. farmers were selected for the purpose of Types and Sources of Data the study. Both primary and secondary sources Methods of Data Collection were used. Primary data sources were Enumerators who have college soybean producer/farmers from six diploma were recruited and trained to purposely selected Kebeles and soybean implement data collection using traders (wholesalers, retailers, and local structured questionnaire. Data was collectors). Secondary data was collected collected under continuous supervision of from different sources, such as: District the researchers. Descriptive, value chain Agricultural Office, District Trade and and SWOT analyses were used for Market Development Office, District analyzing the data collected from farmers Cooperative Promotion Office, ECX, and traders in the study area. reports, bulletins and websites. Sampling Procedure and Sample Size Result and Discussion Multistage sampling technique was Soybean Marketing Channels employed to select soybean producer Soybean passes through various households for the study. In the first stage, channels until it reaches the final three highest soybean producing districts consumers. Around six channels are were purposively selected. Nine highest identified in the soybean value chain. The soybeans producing Kebeles were shortest channel occurs when producers selected randomly from three districts in directly sell the product to consumers. the second stage. In the third stage, simple This occurs when farmers bring small random sampling technique was used to quantity of the product to market and select the households. Probability when the farm is close to urban centres. proportional to size (PPS) was used to This result is similar to Kotler and determine the number of farmers. The Armstrong (2003), identify that the sample size determination was resolved marketing channels refer to the routes by means of Yamane (1967) sampling taken by from producers to consumers. formula with 95 percent confidence level. The channel in Addis Ababa is not N continuation of the channel in the study n = ………………………(1) 1 + N(e) area, because in the study area the raw n = sample size for the research use product is traded but in Addis Ababa the N = total number of households in four processed one is preferable by consumers. soybean producing Kebeles The Marketing channels of soybean in e = margin of errors at 5% Bunno Bedelle were identified below: Channel 1: Producer Consumer Channel 2: Producer Retailer Consumer Channel 3: Producer Wholesaler Retailer Consumer Channel 4: Producer Local Collector Wholesaler Retailer Consumer Channel 5: Producer Local Collector Wholesaler Exporter Channel 6: Producer Local Collector Wholesaler Processor Retailer Consumer 511 Analysis of Soybean Value Chain in Buno Bedele Zone................ Esayas & Mustefa Value Chain Analysis Mapping of Soybean Value Chain in Actors and their Functions in Soybean Buno Bedele Zone Value Chain The value chain map depicts the flow Table 1: Source of soybean input for of soybean in the market, activities carried sample respondents out at each stage of the value chain, the Source of Numbers of Percent structure of actors and the support input Households involved in the value adding process. This Local market 90 41.3 result similar to Schmitz (2005) identified Cooperatives 82 37.6 that, value chain mapping enables to NGO 46 21.1 visualize the flow of the product from Total 218 100.0 conception to end consumer through various actors. Consequently, the current Regarding fertilizers, some farmers value chain map of soybean in Bunno used only organic fertilizer (manure and Bedelle zone is depicted in figure1below.