ASSESSMENT OF VALUE CHAIN PRATICE OF SESAME EXPORT MARKET IN NORTHERN PARTS OF ETHIOPIA

Abstract

In today’s Global Agri-Business, competition is ever increasing between countries and companies and value chain plays a significant role to maximize efficiency and effective’s through reducing cost, maximizing the competitiveness of country/companies. This thesis paper makes an investigation on assessment of value chain practice of sesame export market in northern parts of Ethiopia. The main objective of this paper to assess value chain practice of sesame export market in northern parts of Ethiopia. The study discusses different concepts on the existing value chain practice, identify the role of value chain actors, evaluate service providers performance, identifies the strengths and weakness of the existing value chain practice, make cost, revenue, and margin assessment of value chain actors. Stratified proportional sampling technique was employed to contact 180 respondents and data was collected from 157 questionnaire and 20 interviewed questions from respondents. A questionnaire survey was used to collected data through Questionnaire and in-depth interview. The data was analyzed using the descriptive statistics in the form of tables, diagram, percentage, and frequency; for in-depth interview, the data was analyzed using thematic analysis. Mixed research approach was used to gather both primary and secondary data. The collected data was analyzed using SPSS version 20 and Excel. Finally the research comes up with the following findings: many producers obligated to sell their crops early stage of a season; wind ,disease, post-harvest lose;, corrupt practice at Ecx affect the competitiveness; producers and aggregators had got better margin; logistics & forwarding cost is expensive, Ecx price higher than FOB price; exporters abuse pre-shipment finance and market defaulters reduce the credibility of the nation; identifies costs ,revenue, markup and margin for actor, identify major challenges & opportunities which sesame market & production. This study identifies value chain practice of sesame export market in northern part of ethiopia affected by the above stated factors and reduce the bargain power of Ethiopian sesame export market. Therefore, it is recommended that the governing body, policy makers should improve current market structure, monitor, and regulate market players to act accordingly local international business rule and procedure.