Structure Performance and Constraints of Spice Value Chains in Homegarden Agroforestry Systems Evidence from Basketo Zone Southern Ethiopia

Abstract Farm households in Basketo Zone of southern Ethiopia are challenged by limited benefits from spice crop value chains due to weak market connections, low institutional support, and insufficient participation in value chain activities. Consequently, to identify the underlying problems on the ground, this study was designed to investigate the value chain of spice products under spice-based homegarden agroforestry practices (HAFP) in Basketo Zone. A combined approach of quantitative and qualitative techniques was employed. Structured household survey data were collected from 375 sample households selected from sample kebeles using stratified random sampling techniques to ensure representativeness. The data were analyzed using different models, namely the Heckman two-step model, multiple linear regression, and binary logistic regression.The results of the study indicate that participation in spice crop value chains plays a significant role in promoting rural household livelihoods in the study area. Among the variables analyzed, income share (R² = 0.399) and food security (R² = 0.375) were positively associated with landholding size, educational attainment, participation in training, diversity of spice crops, and engagement in spice-based HAFP, while age of the household head and off-farm income showed negative relationships. In addition, household food security was positively associated with participation in professional training, access to agricultural inputs, crop diversity, and the practice of HAFP, but negatively related to age. On the other hand, both food security contribution (R² = 0.179) and crop income (R² = 0.192) showed moderate explanatory power. Educational attainment, participation in training, access to improved agricultural inputs, and engagement in spice-based HAFP significantly enhanced food security contribution in the study area, while crop income was positively influenced by landholding size, access to extension services, access to agricultural inputs, educational attainment, and participation in spice-based HAFP. Furthermore, income diversification (Pseudo R² = 0.3514) and shock resistance (Pseudo R² = 0.2615) were significantly associated with educational attainment, participation in training, market access, diversity of spice crops, and access to institutional services. The Heckman model results also indicated that spice crop production and income are strongly determined by value chain linkages. Accordingly, educational attainment, landholding size, participation in training, access to institutional services, and diversity of spice crops significantly enhanced both production and income. By combining spice value chain analysis with homegarden agroforestry systems and empirically linking participation to key livelihood outcomes, this study provides additional insights supported by micro-level evidence from Basketo Zone, an area that has received limited attention in previous research. The findings suggest that improving access to institutional services and promoting diversity within spice-based HAFP are essential for enhancing value chain performance, food security, and household resilience in the study area.