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Business and Economics Journal

ISSN: 2151-6219

Open Access

Market chain analysis of sesame in Melekoza and Basketo Districts

Abstract

Endrias oyka

This study was aimed at marketing chain of sesames in Melekoza and Basketo special woreda of Southern Ethiopia. The data were collected from both primary and secondary sources. The primary data were collected from 184 farmers and 22 traders via statistical approaches. The study result identified producers, cooperatives, commission agents, assemblers /local and/or village collectors, wholesalers and exporters as the sesame market participants in the study areas and among these producers, wholesalers and exporters account more shares than others. The study also revealed that sesame market in study area was slightly oligopoly (medium concentration) where the top 4 traders were controlling 57.8% of the sesame market. The study result showed that sesame producers are faced with high diseases and pests, lack of improved varieties and declining sesame output price. Traders in study area were faced with Sesame trading in study area is characterized by different factors that hinder free entrees and include high capital requirement and volatile price. On marketing side, poor quality product, unlicensed intermediates, limited access to market, low price of product, lack of storage, and shortage of formal market places and very long distance of ECX are the major problems. The study also tried to identify challenges such as shortage of experts, low budget allocation and lack of training at supportive organization level. Therefore, this study tried to recommend the solutions based on study findings. 

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