Analyzing Determinants and Characterizing Actors in the Wheat Value Chain of Central Ethiopia

Abstract

Introduction: Wheat is a globally significant cereal crop, ranking second to rice and playing a vital role in food security and agricultural trade. In Ethiopia, wheat production is central to rural livelihoods and the economy. However, inefficiencies and gaps within the wheat value chain limit its potential. This study found the structure of the wheat value chain and the key factors influencing its development in Central Ethiopia.

Objectives: The study aims to identify and map the major actors involved in the wheat value chain, and analyze the determinants affecting the development of the wheat value chain in the study area.

Methods: A multistage sampling procedure was employed. Hadiya and Silte Zones were selected using simple random sampling, followed by two districts and two towns, and subsequently four kebeles. Data were collected from a wide range of wheat value chain actors through structured interviews, supplemented with secondary sources. Descriptive statistics and econometric modeling were conducted using STATA 16 software to analyze the data.

Results: The analysis revealed that various socioeconomic and institutional factors significantly influence the development of the wheat value chain. These factors include off-farm income, access to market information and extension services, distance to markets, marital status, landholding size, education level, utilization of improved seeds, access to credit, and the availability of plowing and harvesting technologies.

Conclusions: To strengthen the wheat value chain, comprehensive interventions are needed. Policymakers, producers, NGOs, and development partners should collaborate to address systemic constraints and improve access to services, technologies, and markets for all value chain participants.