Vol. 8(1), pp. 1-10, January 2020
DOI: 10.14662/IJEBM2019.200
Copy© right 2020
Author(s) retain the copyright of this article
ISSN: 2384-6151
http://www.academicresearchjournals.org/IJEBM/Index.htm
International Journal of
Economic and Business
Management
Full Length Research
Soybean (Glycine max (L.) Merril) Value Chain Analysis
in case of Jimma Zone, Southwestern Ethiopia
Kumilachew Achamyelh
1
, Zekariyas Shumeta
2
, Abush Tesfaye
3
and Mesfin Hailemariam
1
Ethiopia Agricultural Research Institute, Jimma Agricultural Research Centre,
Jimma University College of Agriculture and Veterinary Medicine, Associate Professor,
3
International Institute of Tropical
Agriculture, PMB, Nigeria. Corresponding author: email: jrmesfin@gmail.com
Accepted 11 November 2019
This study was conducted at Tiro Afeta district of Jimma zone with the objectives of analyzing and
mapping the value chain and identifying the determinants of soybean supply to the market in the study
area. Tiro-Afeta district was selected purposively due to its potential in soybean production and
marketing. There are 17 rural kebeles administrations in the Tiro-Afeta district. From these rural kebele
eight kebeles were selected purposively based on current production level of soybean and finally, four
kebeles were selected randomly. Semi-structured questioner was developed and used to collect data
from input suppliers, collectors, local retailers, local wholesalers, national wholesalers, national
retailers, processors, exporters and enablers or supporters who were purposively selected. Both
primary and secondary source data were considered for the analysis, value chain map and econometric
methods were used to analyze the data. The result of the study showed that the main value chain actors
were input suppliers, soybean producers, wholesalers, retailers, collectors, processors, exporters and
consumers. The average amount of soybean supplied to the market by producers was 4.47 quintals
with a minimum amount of 2.48 quintals and maximum amount of 5.73 quintals. Compared to farmers,
traders took above 65.8% of the total profit margin. The result of Ordinary Least Squares model showed
that quantity of soybean produced, sex of the household head, and distance to the nearest market,
frequency of agricultural extension visits and cooperative membership positively and significantly
affected soybean market supply. Based on the findings, the study recommends introduction of soybean
improved varieties and sustainable supply of bio-fertilizer and increase of credit, rural roads and
agricultural extension services. Increase the access of cooperatives and intensify cooperative to collect
soybean from the farmers could affect the farmers’ profit margin positively by eliminating unwanted
chain actors from the chain. Thus, huge emphasis should be given to cooperative development on the
study area.
Key words: Benefit share, Market supply, Value Chain, Ordinary Least Squares, Farmers marketing
organization (FMOS)
Cite This Article As: Kumilachew A., Zekariyas S., Abush T., Mesfin H (2020). SOYBEAN (Glycine max (L.)
Merril) VALUE CHAIN ANALYSIS IN CASE OF JIMMA ZONE, SOUTHWESTERN ETHIOPIA. Inter. J. Econ.
Bus. Manage. 8(1): 1-10