VALUE CHAIN ANALYSIS OF HONEY PRODUCED FROM EXCLOSURES: THE CASE OF TIGRAY, ETHIOPIA

Abstract

This study examined value chain pattern, market margin and factors that determine choice of market outlets for exclosures-based honey production in Tigray. Primary data were collected from 200 honey producers and 40 honey market actors using both structured and semi-structured interview schedule. Value chain patterns and estimation of market margins were analyzed using descriptive statistics. Multinomial probit model was used to analyze the factors that affect producers’ choice of market outlets. Input suppliers and producers were found to play basic roles in the value chain. Beside local honey collectors, town traders and processors were also key market actors in supplying honey from producers to consumers. Majority of produced honey (34.4%) goes to local collectors followed by town traders. Producers’ market share was 44%, followed by processors with 35.9% share. Comparatively, traders and collectors accounting for 11.5% and 8.6%, respectively, had limited market share. Honey fetches the highest price for the producers when middle men (such as collectors and traders) are bypassed. Market information enables farmers to make informed decision in selling the honeybee product to different outlets. Better informed farmers were found to be more likely to sell their honey to consumers as they know this was the channel that could bring them highest returns for their honey. Challenges include access and cost of inputs, lack of bee flora, marketing costs, pest and disease prevalence, and inadequate raw honey supply. In general, our results indicate that there is a need for significant improvement of market structure and function of different actors to enhance market efficiency and producers’ income with implications for a sustainable management of exclosures.