Determinants of wheat value chain in case of North Shewa Zone of Amhara region, Ethiopia

Abstract

The main objective of the study is to identify the determinants of wheat value chain in case of North Shewa Zone of Amhara region, Ethiopia. The researchers used multistage purposive random sampling technique to select representative households in the study area. The ordinary least square output revealed that production of wheat, price of wheat and secondary and tertiary education of the household positively and significantly affect supply of wheat to the market. On the other hand, distance from the market and distance from the main road have negative and significant effect on supply of wheat. Moreover, the multinomial logit regression result showed that household family size and market information have positive and significant effect while distance from the market and ownership of livestock have negative and significant effect on smallholder farmers’ market participation. The binary logit model also indicates that land holding, access to market information, total livestock and primary education affected positively and significantly. Therefore, policies aiming at increasing farmer’s awareness of producing value added wheat produce to enhance value creations are recommended to strengthen chain development.