Tomato Value Chain Analysis in Yayo And Hurumu Districts of Ilu Aba Bor Zone, Ethiopia

Abstract Background: Tomato is one of the most important and widely grown vegetable in Ethiopia. This study was aimed at analyzing tomato value chain in Yayu and Hurumu districts of Ilubabor zone. The specific objectives of the study were to identify actors and their roles in the value chain, to estimate marketing margins of each actor and identifying determinants of market participation decision and level of participation of farm households in tomato market.Methodology: The study used both primary and secondary data. Descriptive statistics, value chain analysis and Heckman two-stage selection model were used to analyze the data.Results: The major tomato value chain actors in the study area are input suppliers, producers, collectors, wholesalers, retailers and consumers. Producer received the maximum profit when they sell directly to consumers. The Heckman first stage model result showed that four variables such as family size, production experience, participation in non-farm activity and quantity produced significantly affect the tomato market participation decision. Heckman second stage model indicated that extension contact, quantity produced and perception of lagged price significantly influence the tomato level of market participation.Conclusion: in the study area Tomato is produced mainly as a source of food and income and it is one of the most important and widely grown vegetable. The market participation decision of the farmers is influenced significantly by family size, production experience, participation in non-farm activity and quantity produced. Similarly, extension contact, quantity produced and perception of lagged price were among determinants which affect significantly tomato producer’s level of market participation. Hence, these significant factors need to be intervening so as to enhance the possible gain that could be drawn from tomato value chain in the study area.