Value Chain Analysis of Poultry Industry in Ethiopia: A Case Study of Hadiya Zone, Central Ethiopia

Abstract

Introduction: The poultry industry is a critical sub-sector of agriculture and a key driver of economic growth in the Hadiya Zone of Central Ethiopia. Despite its potential, the sector faces significant challenges due to market competitiveness, limited access to inputs, and weak value chain coordination, which restrict the benefits for smallholder producers.

Objectives: This study aimed to assess the poultry value chain and analyze the factors influencing poultry farmers' decisions to participate in the market in Hadiya Zone, Central Ethiopia.

Methods: Primary data were collected from 297 poultry farmers, 25 traders, 8 processors, and 54 consumers, supported by relevant secondary sources. Descriptive statistics were used to map the value chain and identify constraints, while a binomial logistic regression model was employed to examine the determinants of farmers’ market participation decisions.

Results: The analysis revealed that the poultry value chain involves multiple actors—input suppliers, producers, traders, processors, and consumers. Value chain activities include input supply, production, marketing, processing, and final consumption. Producers were found to receive relatively low returns compared to traders and processors, who dominate the chain due to higher capital and bargaining power. Major constraints identified include feed shortages, low productivity, limited access to improved breeds, veterinary services, and weak extension support. Market participation was significantly influenced by education level, distance to market, household size, presence of children, flock size, breed type, alternative income sources, access to veterinary services, and availability of supplementary feed.

Conclusions: Strengthening poultry farmers’ market participation requires a multi-pronged policy approach. Interventions should focus on enhancing education, improving access to inputs and veterinary services, investing in infrastructure, and supporting diversified income sources to make the poultry value chain more inclusive and profitable for smallholders in the Hadiya Zone.