Market chain analysis of highland bamboo poles in three districts of the Sidama National Region, Ethiopia

Abstract

Ethiopia is one of the countries well-endowed with bamboo (Arundinaria alpine, and Oxytenanthera abyssinica). As compared to its potential, however, the contribution of bamboo to producers’ livelihoods and the national economy is very low. This is partly attributed to limited information on the market chain of standing bamboo its products. This study was, therefore, initiated to analyze the market chain of highland bamboo poles and its determinants in the main production areas of three selected districts of Sidama National Region, Ethiopia. In total, 120 sample households were selected based on a random sampling technique due to the homogeneity of the bamboo producers' population. The two-stage least-square regression model was used to analyze the determinants of the bamboo market supply. The results of the study revealed that primary value chain actors were input suppliers, producers, collectors, wholesalers, retailers, cooperatives, and end-users. Secondary actors were Trade and Industry and Cooperative Bureaus. Bamboo in the study area country used for construction material and household furniture, firewood, and source of income and livelihood. Harvesting of non-mature culm and lack of knowledge of modern silvicultural practices were identified as the main production constraints. At the same time, lack of support and training, and lack of bamboo-based factories, firms, or industries were related to processing constraints. Marketing constraints included a lack of market for bamboo poles and licensing. Measures of market concentration ratio showed that the top four biggest traders controlled 62.43 % of the bamboo market, indicating that the structure of the market was strongly oligopolistic in the study area. According to the survey result, 70.5% of the respondents reported that the bamboo pole's price decision was set by traders. The marketing margin of producers was highest in channel V (42.86%). The number of bamboo culms harvested, sex of the household head, education level of the household head, membership in the farmers-based association, and lagged price were significant determinants of the market supply of bamboo. It was revealed that the market chain of bamboo should consider socioeconomic factors favoring and disfavoring the highland bamboo market as well as the knowledge gaps to the management of bamboo in the study region.