ARSI UNIVERSITY

COLLEGE OF AGRICULTURAL AND ENVIRONMENT SCIENCE DEPARTMENT

OF AGRICULTURE ECONOMICS
PROPOSAL TITLE
ASSESSEMENT OF WHEAT MARKET CHAIN; IN DIGALU TIJO WOREDA IN
PARTICULARY IN ASHEBEKA WELKITE AND TEMELA GUSHA KEBELE
COMPILED BY ASHENAFI DEKEBA

NAME ID/NO

ASHENAFI DEKEBA……………………………………................................….11178/13

ADVISOR Mrs. BETHLEHEM .G (Mrs.)

Table of Content Page

AKNWOLEDGEMENT

ACRONYMS and ABBREVIATION.....................................................................................

CHAPTER ONE: ………………………………………………………………………
1. INTRODUCTION ……………………………………………………………....
1.1. Background of the study ………………………………………………………………
1.2 Statement of problem ………………………………………………………………
1.3 Objective of the study ………………………………………………………………
1.3.1 General objective ………………………………………………………………
1.3.2 Specific objectives ………………………………………………………………
1.4 Research questions ………………………………………………………………
1.5. Scope of the study ………………………………………………………………
1.6. Limitation of the study ………………………………………………………………
1.7 Significance of the study.................................................,..............................................
CHAPTER TWO: ……………………………………………………………………...
2. LITRATURE REVIEW ……………………………………………………………...
2.1. Factors affecting wheat marketing supply ……………………………………..
2.2 Empirical literature on wheat marketing chain ……………………………………..
CHAPTER THREE……………………………………………………………………..
3. RESEARCH METHODOLOGY …………………………………………….
3.1 Description of the study area …………………………………………………….
3.2. Research design………………………………………………………………………
3.3. Sample size and sampling technique …………………………………………….
3.4. Data types and sources …………………………………………………………….
3.5. Methods of data collection …………………………………………………….
4. Work plan.......................................................................................................................
5.BUDGET...........................................................................................................................
6. 6.REFERANCE 34…………………………………………………………………….

AKNWOLEDGEMENTS
I don’t have enough words to express my deepest thank for my God, who help me to do my senior
research proposal starting from the beginning up to the end. Secondly, next to my God, I want to express
my glorious feeling for my parents who supported me with moral and finance from the beginning of the
research proposal up to the now. Thirdly, I would like to express my great thank for ARSI University
College of Agriculture; especially Agriculture Economics and for gave me chance to do this study.
Finally, I would like to express indebtedness and heartfelt gratitude to my senior research proposal report
advisor MRS.BETHLEHEM. G for his conference in checking and giving comments by devoting his
time to do my senior research proposal in a good manner.

ACRONYMS and ABBREVIATION

ACSI…………………….……...Oromia Credit and saving institution

AW………………………… Ashebeka Welkite

CSA…………………………. Central Statistical Authority

FAO……………………….… Food and Agricultural Organization

GDP……………………... Growth domestic product

KM………………………. Kilometer

SSAC……………………..Sub Saharan African countries

USA……………………….united States of America

CHAPTER ONE:
 1. INTRODUCTION

1.1. Background of the study

Agriculture is a core driver of the Ethiopian economy. It accounts for about 45 percent of the Gross
Domestic Product(GDP),employs more than 85 percent of the total population that is directly or
indirectly engaged in agriculture, generates about 80 percent of the foreign exchange earnings of the
country, and provides raw materials for 70% of the industries in the country. About 15-17 percent of the
Government of Ethiopia’s (GOE] expenditures are committed to the sector (DAWIT AT, AI [2010). The
role of agriculture in securing food needs for the fast growing population is considerable. Despite having
all this importance, agriculture continues to face a number of problems and challenges. The major ones
are adverse climatic conditions, lack of appropriate land use system resulting in soil and other natural
resources degradation, limited use of improved agricultural technologies, the predominance of
subsistence agriculture and lack of land/or absence of business oriented agricultural production system,
limited or no access to market facilities resulting in low participation of the smallholder farmers in value
chain or value addition of their produces (Elizabeth,2010).

Wheat is increasingly becoming a key staple in Africa and sub-Saharan as a result of income growth and
rapid urbanization. But sub-Saharan countries and Africa as a whole produce only about 30% and40% of
their domestic requirements respectively, causing a heavy dependence on imports and making the region
highly vulnerable to global market and supply shocks (Negassa et al., 2012). and to wheat production
many country dependence of heavily on rainfall.

Ethiopia is the second largest wheat producer in sub-Saharan Africa, after South Africa. Area under
wheat cultivation had expanded from 1.40 million gain 2004/05 to 1.55million in 2010/11.Although most
of whole wheat in Ethiopians bread wheat, there is some durum wheat which is often grown mixed with
bread wheat (Demeke and DiMarcantonio,2013). taken together, their domestic wheat production
accounts only for small proportion of wheat consumption in the region (Jayne et al. 2010)

In Digalu Tijo Woreda is in East Arsi zone of Oromia region, in particular or unique is called Ashebeka
Welkite and temela gusha is cold climatic condition or higher in attitude. These conditions favorable for
wheat production. Due to this reason, wheat is widely produced in the area. The smallest scale farmer
who engaged on the wheat marketing is full fill their consumption and generates their income source.

In the study area wheat is produced or grown for many purposes, but the majority of wheat is used for
animal feed, and human consumIn the study area, wheat is the major important staple food crop. The
share of malt wheat is used for making local bread and injera. Furthermore, the straw of wheat is a good
source of animal feed especially during dry season.

The study will focus on assess the market chain of wheat in case of Ashebeka Welkite and Tamale gusha
East Oromo Arsi zone like; actors of chain, marketing channel and also, the marketing constraint and
opportunity. Before this there is no research in the area related to the wheat market chain. Due to this I
will want to study on these issue. This study attempt to assess the market chain of wheat in case of
Ashebeka Welkite and temela gusha Oromia zone. This study will use to provide back ground
information on market chain of wheat for other study area.

1.2. Statement of problem

In Ethiopia, market chain system constrained by many factors. In the marketing of wheat farmers do not
get appropriate price despite of their effort, because of imported wheat price lower than domestic one
(Chilot, 2013). Regardless of the fact that the wheat in Ethiopia has been operating freely as far as the
knowledge is concerned little study will do on integration of markets to explain the demand and supply
responses of wheat market.

In the study area, there are so many problems, which will negative impact on the wheat market value.
These problems are like, such as poor quality of agricultural products, lack of market facilities, poor
linkage of research and extension, absence of market information and intelligent services, excessive price
and supply fluctuation, limited packaging problems, lack of market information, imperfect market
pricing system, limited knowledge of wheat processing or converting the raw wheat in to finished
product and it makes the market participants difficult to process the product. The production of the wheat
will highly relate to the market orients system because inappropriate market system decreases yield and
growth of wheat. Farmers only produce the wheat, and sale to the market in excess of their consumption
need. This indicates there is no more value added by farmers. Lack of business concept in production
planning as well as marketing skill by wheat value chain actors in particular among farmer producers
was affected on the wheat market chains. The other crucial problem is that the small scale farmer’s sale
their product lowest price due to their product is affected by different pests and disease and also weed is
another problem that reduces the quality of wheat, leads to reduce the marketed value. And also unable to
use modern technology to produce a product is one of a crucial problem. These and the like problems
are frequently occurred in Ashebeka Welkite and temela gusha kebeles

This study will address the popular information on the subject and contribute to apposite understanding
of the problems and assist in expanding improved market chain development strategies to benefit of all
actors (input suppliers, producers, collectors, whole sales, retailers and consumers) along the wheat
market chain in the study area.

. Therefore, this study will initiate with the aim of identifying the problems, which are obstacle of wheat
marketing in the study area. In addition, it will examine the improvement of wheat marketing in the
future and minimizes or reduces the gap of wheat marketing problems.

1.3 Objective of the stud

1.3.1 General objective

The overall objective of this study is to assess wheat market chain in Ashebeka welkite and temela gusha
East Arsi zone.

1.3.1. Specific objectives

 To identify wheat marketing actors and their functions in the study area.
 To identify the wheat market channels in the study area.
 To determine the major wheat production and marketing constraints and opportunities in the
study area.
1.4 Research questions
Who are the major wheat-marketing actors and their functions in the study area?

What are the major wheat marketing channels in the study area?

What are wheat production and marketing constraints and opportunities in the study area?

The result of this study is important for producers, processors, traders and service providers who engage
in wheat production and marketing by creating awareness about the marketing problems and to assess
their activities and redesign their mode of operations, ultimately influence the design, implementation of
policies and strategies.

It will be also help different actors to identify and analyze new ways of stimulating innovation, by
providing available information about wheat chain actors that are participate in wheat marketing and
major marketing channels in the study area. The other significance of this study is that will crucial to
formulate wheat marketing strategy and policy development for efficiency and effectiveness of wheat
marketing system. After the acceptance of the proposal document, it will serve as a guide for other
researchers who will do on the same topic.

1.5 Scope of the study

This study will conduct in Digalu Tijo Woreda East Arsi zone, Oromia region, Ethiopia. The study will
concern on the assessment of wheat marketing chain Digalu Tijo district, Ashebeka Welkite Kebeles
and Temela Gusha. Important information will collect from sample households. Therefore, the general
content of the study area will; to assess wheat market chain actors, marketing channel, existing
opportunities as this study focused on specific part of the country and focus only on one major wheat
producer supply in market in woreda in Oromia region, the result might not be generalized for all malt
wheat and normal wheat producing woreda of the country or other crops. The study area is where there
are a number of interested firms started working with smallholders and also possible to gain insights
from the firms which might not be the case in all both of the means malt wheat and wheat producing
areas.

1.6 Limitation of the Study

constraints of wheat market and different challenges related with wheat market chain .Constraints to
wheat production The major production constraints of wheat identified by farmers in the study areas
included diseases (mainly rusts), shortage of arable land, a lack of improved varieties and high cost of
inorganic fertilizers issues and ones are adverse climatic conditions, lack of appropriate land use system
resulting in soil and other natural resources degradation, limited use of improved agricultural
technologies, the predominance of subsistence agriculture and lack of land/or absence of business
oriented agricultural production system, limited or no access to market facilities resulting in low
participation of the smallholder farmers in value chain or value addition of their produces. The use of
irrigated water, pesticides and fertilizer in wheat contribute to water scarcity and water pollution

This study only conducted only on two kebeles in woreda due to budget constraints and time and used
only the production data for once cropping season i.e. 2014. The situation might be different in using
data from multiple seasons and from different woredas across the Arsi Zone. Therefore, these might be
among the limitations of this study that can be foreseen.

1.7 Significance of the Study

This study has identified and analyzed the determinants that affect the smallholder’s Of farmers on wheat
producing to supply in market in Digalu Tijo woreda, particularly in Ashebeka welkite and Temela
Gusha. It has clearly identified between different categories of factors that inhibit the active participation
of the smallholders in wheat business while there are firms demanding for the kind of the product these
smallholders are producing. The results of this study can be used and implemented by a number of
stakeholders in the wheat business including: farmers themselves in helping them produce based on the
market demand at the required standard, domestic and international firms can also use the research
output to develop their marketing strategies for the raw materials they need for their processing plants to
engage with smallholder producers and formed decision while dealing with investment and marketing.

CHAPTER TWO:
 2. LITRATURE REVIEW

2.1. Definitions
Wheat is an important industrial and food grain, which ranks second among the most important
cereal crops in the world after rice, Teff, sorghum, and traded internationally. Wheat is a cereal grain,
(botanically, a type of fruit called a caryopsis) originally from the Levant region of the Near East but
now cultivated worldwide. In 2013, world production of wheat was 713 million tons, making it the third
most-produced cereal after maize (1,016 million tons) and rice 745 million tons. Wheat was the second
most-produced cereal in 2009; world production in that year was 682 million tons, after maize (817
million tons), and with rice as a close third (679 million tons). This grain is grown on more land area
than any other commercial food World trade in wheat is greater than for all other crops combined.
Globally, wheat is the leading source of vegetable protein in human food, having a higher protein content
than other major cereals, maize (corn) or rice ("FAO Stat". 2015).There are a coverage,production,and
productivity of wheat is increasing from time to times readily, and fluctuating as a result of
population growth, changing food preferences and a strong urbanization trend. The main market
participants of wheat are producers, processor, assembler, wholesaler, retailers, and consumers,
financial institutions, governments, NGO. The market concentration ratio of wheat in Ethiopia is
about 31.67%, which indicates the market structure is weakly competitive. Absence of license, lack
of enough working capital, higher completion and lack of trading experience are the main barriers of
entry in wheat market The price of wheat produce in the market is determined by the farmer, market
through negotiation, and traders. Traders used fair scale-weighing (81.2%), giving better price
relative too there (8.24%), giving credit (7.06%), and visiting their suppliers (3.53%) as a strategy to
attract their suppliers.

Market: market is defined as the sum total of all the buyers and sellers in the area or region under
consideration. The area may be the earth, or countries, regions, states, or cities. The value, cost and price
of items traded are as per forces of supply and demand in a market. Market is traditionally defined as
specific geographical area where buyers and sellers meet for exchange of goods and services. Market is
the way of buyers and sellers can conduct transaction resulting in mutual net gain that otherwise would
not possible (Hyman, 2006).

Market is thought as a meeting of buyers and sellers: a place where buyers and sellers meet and exchange
takes place: an area where price-determining force (supply and demand) operates an area where there is
demand for goods (Mohammad Haji) 2013 E.C
The term Marketing is a management process through which goods and services move from producers to
consumers. Marketing includes the co-ordination of 4 elements called 4p’s markets. These are: selection
of product, determination of price, channel to reach customers place and, development and implement
promotional strategy. Market is an actual nominal place where forces of demand and supply operate and
where buyers and sellers interact (directly or through intermediaries) to trade goods, services, contract or
instruments for money or barter (Andargachew, 2011). Market is the way of buyers and sellers can
conduct transaction resulting in mutual net gain that otherwise would not possible (Hyman, 2006).

2.2.1. Wheat marketing chain actors

In wheat marketing chain there are three major actors namely;

 Core actors
 Service providers and
 Enabling environments.

 Core actors

Core actors are persons who directly involved from the initial point, production to the final point,
consumption. These actors i

2.2.2. Factors affecting wheat marketing supply

An important aspect of supply chain is that they consist of some associated but distinct flows. One is the
physical flow of the commodity and another is flow of money realized from final sale back to the
producer and all the enterprises that have been involved in processing and marketing. The efficiency and
effectiveness of the practices and procedures that govern this latter flow are as important as technical
efficiency with which the commodity is produced, processed and marketed. Current market of wheat
supply in Ethiopia comes from production, import and stock-carried over. According to domestic
sources, total supply of wheat in 2013 in the country about 64.84 percent comes from production, 25.76
percent comes from import and 9.4 percent comes from the stock camel over. However, production trend
shows an increasing pattern with average annual growth rate of 24.59 percent during 2012/ to 2018
whereas stock and import trend depict a declining pattern with average annual declining rate of 5.4 and
16.8 percent, respectively (ECEA,2018). Because of high wheat production potential force in the Woreda
ward direction, the resultant wheat supply force shows an increasing trend with average annual growth
rate of 2.5 percent.
According to ask in the form interviewer farmer found in the environment, the total supply of wheat
production in 2013 E,.C 65.25 percent from the production [Mohammad 2013E.C].

2.2.3 Empirical literature on wheat marketing chain

There are two varieties of wheat in market chain: food wheat and malt wheat. In Ethiopia, roughly 85%
Wheat production is in the form of food wheat and 15 % in the form of malt wheat; Food wheat is grown
primarily for human consumption, with smallholder farmers consuming upwards of 85% of the food
wheat they produce.

In Ethiopia, the market potential for wheat is directly dependent on the market for Duqet; as such, its
potential can best be assessed by looking at the evolving dynamics of Ethiopia’s growing Duqet sector.
Wheat is the third most important cereal crop after teff, wheat, corn, and sorghum. It is the staple food
grain especially for Ethiopian highlanders who produce the crop with indigenous technologies. It is
cultivated by smallholders in every region of Ethiopia, since it is able to grow at all smooth, but it
performs best at the higher elevations in the northern and central regions of the country (USDA, 2012).
Wheat production has been growing in Ethiopia as both the number of wheat farmers and Wheat yields
increase, linked to growth in demand for food and malt wheat. (Mulatu et. al., 2011).

Hirpa and Mohammed (2013) further identified pest, shortage of fertilizer, market information, and
insufficient knowledge in product sorting, grading, packing and traditional transportation affect the
quality of produce taken to the market. Market participation become more profitable if producers/farmers
are able to minimize transaction costs like negotiation cost and enforcement cost and services at lower
opportunity cost (Porter, 2005).

Shortage of resources such as poor infrastructure, distant from the market, lack of assets, in adequate
market information, lack of bargaining power and poor product handling were the main constraints of
farmers marketing activities (MOHAMMAD HAJI 2013). In Ethiopia. Due to these reasons, the quality
of produce is very low and the market price of the Biotic factors like diseases, rusts, insect pests and
weed infections contributed to lower rate of wheat yield product is reduced (Legese, G. and Hordofa, D.,
2011) Yirga et al (2010) suggested that a biotic stresses like poor distribution of rain fall in low land
areas and low soil fertility due to soil erosion and poor soil drainage were causes of significant yield
losses in wheat production.Jalta (2010) showed that in adequate market channels and poor information
regarding price were among factor affecting commercialization of agriculture. Furthermore Iman and
Gbremedihin (2007) in their study on marketing chain analysis argued that the marketing of cash crop is
affected by inadequate local market, poor pricing system, lack of local market to observe supply lower
produce, excess of intermediaries and poor market institution.
 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1 Description of the study area

The study will be conduct at Ashebeka welkite kebeles and Temela Gusha in Digalu Tijo Oromia Arsi
regional State. The research is conducted in Oromia Region, Digalu Tijo woreda of Arsi Zone. The
woreda is one of the major producers of wheat in the region. There are about 23 (twenty three) rural
kebeles in the woreda. The woreda is located at the altitude of 2000-3600 meter above sea level and
characterized by more of highland environment with average temperature of 11- 22 oC and annual
rainfall of 900-1400mm on average. About 78% of the woreda is high land and the remaining 22% is
mid-altitude. The soil types of the woreda are red soil (44%), clay soil (35%) and brown soil which
covers about 21% of the area. The total population of the woreda is close to 110,000 with about 50%
female. There are about 56,859 males and 2,853 female headed households in the woreda. Among the
farming households more than 85 of farmers found in environment have access to extension services
through woreda agriculture office and development agents in each kebeles (Woreda Agriculture Office,
2014).but among of the twenty three of kebeles ,I will take two kebeles in the Digalu Tijo woreda
kebeles The two kebeles are Ashebeka Welkite and Temela Gusha The major economic activity of the
majority of the people living in the ashebeka welkite and Temela Gusha is crop production and rearing
of livestock. The major crops grown with higher economic return are: Wheat, Food Barley, Malt Barley,
Faba bean, Field Pea, Linseed, Maize, Rape Seed, Teff, etc. Livestock is also the major source of income
for the smallholder farmers in Ashebeka welkite and Temela Gusha with Cattle, Sheep, and Horse
higher in number. The marketing of the agricultural crops is conducted through different channels with
the bulk of the produce going through local traders followed by the farmer’s cooperatives and unions
Woreda Agriculture Office, 2014).In the ashebeka welkite and Gusha Temela there is extension services
supporting farmers through the supply of improved inputs such as fertilizers and different kinds of
improved seeds and also serve as a market out let for them. In addition to cooperatives and local
traders, there a number of buyers involved in the bulk purchase of wheat ranging from companies to
development partners supporting smallholders in market linkage and facilitation. Companies like Asella
wheat Factory and Meta Diageo. This district area is located at 107km far from Addis Ababa, the capital
city of Ethiopia.

Based on the interviewer with manager or leader conducted by this kebeles has a total population of
2200 from this of whom 1300 are men and 900 women. From the total population or 84.45% are
rural inhabitants and or 15.55 are urban inhabitants. The majority of the inhabitants practiced in
many religion and all people found in this areas are respect with each others, help the needy people,
supporting and motive for job itself.

Methods of Data Collection and Data Source

Data Sources and Types

The data for this study will collected from primary and secondary sources. Formal and informal sample
survey methods were used to collect primary and secondary data.

Primary data will collect from producers, wholesalers, assemblers, retailers, processors, cooperatives and
agricultural in put suppliers. The main data types collected include production, buying and selling,
pricing, input delivery and distribution, market supply of wheat, market outlets, constraints and
opportunities characteristics of the actors involved in wheat crop production and marketing in the study
area.

Secondary information will gathered from published and un published materials, district agriculture and
rural development offices, farmers’ organizations, input suppliers, marketing agencies and from different
development organizations of the study area.

Methods of Data Collection

Primary data will collect using structured interviews and Rapid Market Appraisal (PRA. Informal survey
was conducted using Rapid Market Appraisal (RMA) technique using checklists. Formal survey will
under taken with randomly selected farmers, wholesalers, retailers, processors, input suppliers and
cooperative representatives using a pre-tested structured questionnaire for each group.

Secondary data relevant for this study were gathered from published and unpublished materials using
questionnaire.
 Sampling Procedure and Sample Size
3.3. Sample size and sampling technique
For the household survey, a stratified two-stage sampling design will employed within each were. First,
all kebeles(sub-districts) in the selected woreda will listed, and 2(five)of the major producing kebeles are
randomly selected based on their access to road to proximity to woredas town to save time and expenses
of data collection. Then the households were randomly selected

based on the list of individual farmers obtained from woreda agriculture office for the kebeles selected.
While selecting the households, sex of the farmers are considered to include female headed households
in the research to see the level of involvement in wheat production and

Marketing. Both purposive and proportional sampling will apply to draw sample from target population
of wheat producer. The sample size of this kebeles Among them one kebeles and Temela Gusha market
participation of farmer and marketable production of wheat their consumption and their proximity for
researcher to collect data on this kebeles will select purposely . Among them, 2200 people in
environment and 1500 producer in ashebeka welkite and 700 Gusha Temela kebeles are engage in
wheat production Totally, 2200 producer are participating on wheat production.

 producer sampling
To determine sample size from target population will resolved using Yamane (1967), formula with the
desired confidence level of 95%. That means 95 percent of people in the environment confidential
participation in the wheat market chain as we have concept of econometrics model

n=N/1+N (e*) 2, Where n=sample size, N=house hold number and e= 5% standard error

e = 5% = 0.05

e2= (0.05)2 = 0.0025

n=1800/1+1800(0.0025) = 39

Due to budget and time constraint the researcher reduced to 30 sample producer.

From this kebeles proportionally

30 x 1200
From the Ashebeka Welkite kebeles(n1) = = 18
2000

From the Gusha Temela kebeles [n2] 30muit 800 divide by 2000=12

So, the sample of the two kebeles are n1plus n2=18plus12=30

From this kebeles proportionally sample producer respectively total of 30 sample will selected from
wheat producer.

Trader sampling

In this kebeles there are 40 traders ( rural assembler, wholesaler, processor, retailer) engaged in wheat
marketing from this 20 sample will be selected randomly as follows.

Traders ASHEBEKA WELKITE

Total Sample

Rural assembler 15 8

Wholesaler 5 6

processor 8 4

Retailer 12 2

Total 40 20

Table: 3.1 Own design from sampling procedure and size, (2016] E.C

Therefore, the study from producer and trader total of 50 sample will be used.

Methods of Data

Analysis Descriptive statistics, inferential statistics and econometric analysis were used to analyze the
data collected from wheat producers and traders involved in wheat marketing.
Descriptive statistics
Descriptive statistics such as mean, maximum, minimum, standard deviation, frequencies, percentages
and graphs in the process of examining and describing demographic outputs and marketing functions was
applied.
 Value chain analysis
The value chain describes the full range of activities which are required to bring a product
or service from conception, through the different phases of production (involving a
combination of physical transformation and the input of various producer services),
delivery to final consumers, and final disposal after use. The analysis of wheat value
chains will high light the need for enterprise development, enhancement of product
quality, and quantitative measurement of value addition along the chain, promotion of
coordinated linkages among producers and improvement of the competitive position of
individual enterprises in the marketplace. The following four steps of value chain analysis
were applied in this study:
Mapping the value chain: This helps to understand characteristics of the chain actors and
the relationships among them, including all actors in the chain, the flow of wheat through
the chain, employment features, and the destination and volumes of domestic sales. This
information will be obtained by conducting surveys and inter views as well as by
collecting secondary data from various sources.
Identifying the distribution of actors’ and benefits in the chain : This involves
analyzing the margins and profits within the chain and therefore will determine who
benefits from participating in the chain and who will need support to improve
performance and gains and who will need support to improve performance and gains.
Defining upgrading needed within the chain: By assessing profitability within the chain and identifying
chain constraints, upgrading solutions will be defined. These will include interventions to improve
product design and quality, reorganize the production system or invest in new technology to upgrade the
process and enhance chain efficiencies, introduce new functions in the chain to increase the overall skill
content of activities; and adapt the knowledge gained in particular chain functions in order to redeploy
it.and who will need support to improve performance and gains and who will need support to improve
performance

Emphasizing the governance role: By focusing on governance, actors that may require
support to improve capabilities in the value chain, increase value addition in the sector and
correct distributional distortions will be identified. Thus, governance constitute and a key
factor in defining how the upgrading objectives could be achieved. Following the above
procedure, the main aspects of wheat value chain analysis will be conducted byap
3.2. Research design
A research design is the program that guides the researchers in the process of collecting, analyzing and
interpreting the data. The researcher was used the descriptive form of research design to provide
solutions to the research problems. Descriptive research involves gathering data that describe events and
then organizes, tabulates, shows, and describes the data collection.

The researcher was used a cross sectional survey design that means collect data at one time or in few
days; because the research will use short period of time to collect the data. So by using descriptive data
analysis and standardized question to collect data on assessment of wheat market chain.

4. BUGET ALLOCATION PLAN

4.1 Work Plan

The planning of time table schedule is the important activities to carry out starting from the
corresponding month to the end. It is planned and prepared as follows. TABLE 4.I Work Plan

No Activity November December January February March April May June

1 Questionnaire
preparations
 2 Data
Collection

3 Data coding
and editing

4 Data analysis

5 Submission
of draft
papers

6 Final writes
up

4.2. Budget Allocation Plan Budget allocation is the process of allocation of the cost of the materials
that needed to perform plan and carried on list of research activitTable 4.2. Budget Allocation

Item unit Unit Amount Total

price required
No Price (cost)

1 Pen number 25 2 50

Paper packet 28 30 100

2 Mobile card number 25 2 50

3 Copying page 50 5 99

4 printing page 4 33 132

5 Food 70 5 350

6 transport km 50 4 100

total 991
 7. Questionnaires

These questionnaires are prepared by agribusiness and value chain management third year student. The
aim of this questionnaire is to gather adequate or necessary information on the assessment of wheat
marketing in Angolellateraworeda.

Please, respondents give appropriate answer for each question. I would like to forward my great thanks
for all respondents.

Background information

Name and place of the respondents

Name…………………

Region……………..

Zone…………………..

Woreda…………………….

Sex of respondent Male Female

Educational level

Illiteracy 1-8 grades diploma

Able to read and write 9-12 grades

Marital status

Married Divorced

Unmarried widowed

Age of respondents

Under 15 years 31-45 years above 61 years

16-30 years 46-60 years

1
 Questionnaires for producers

1. What are the major inputs used in wheat production?

A. Seed B. Fertilizer C. Pesticide D. Herbicide E. Others

2. Indicate your input suppliers?

A. Smallholder farmers B. cooperatives C.Private company D. Others_____________

3. Do you receive additional service from your input suppliers Yes No

4. If your answer for question number 3 is yes, what kind of service you get?

A. Farm equipment B. Credit C. Fertilizers D. Others (specify)

5. Why do you produce wheat?

A .For home Consumption B .For marketing C. For both marketing and consumption

6. Who are your wheat buyers?

A. Wholesalers’ B. Retailer C. local Collectors D. Consumers

7. Where do you sell your wheat?

A. In village B. In Woreda C. In kebele D. Others (specify)

8. Do you have access to transport Yes No

9. Do you use contract agreement to sell your wheat? Yes No

10. If your answer for question number 8 is yes, what kind of contract?

A. Oral B .Written C. Both D. other specify____________________

11. Who decide the price of wheat? A. Yourself B. Buyers C. Brokers

12. How do you attract your customers?

A. By selling at lower price B. By improving the quality of the product

C. By selling the product with credit D. Others (specify)

13. What are the major opportunities to produce your wheat?

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 A. Availability of market information B. Availability of service providers

C. Availability of labor D. Others (specify)

14. What are the major constraints to produce wheat?

A. Lack of skilled man power B. Lack of market information

C. Seasonality in its production D. Others (specify)

15. Do you have storage service? Yes No

Questionnaires for traders (local collector, wholesaler and retailer)

1. From whom you buy wheat? (For rural collectors)

A. Producers at farm get level B. traders C. Others (Specify)

2. To whom you sell your wheat? (For rural collectors)

A. Other traders’ B. wholesalers

C. Consumers D. retailers

3. From whom you buy wheat? (For wholesalers)

A. Producers at farm get level B. Collectors C. Others (Specify)

4. To whom you sell your wheat? (For wholesalers)

A. Other traders B. processors C. retailers

. D. Consumers E. Others (Specify)

5. From whom you buy wheat? (For Retailer)

A. Producers at farm get level B. Collectors C. Wholesalers

D. Others (Specify)

6. To whom you sell your wheat? (For Retailers)

A. Other traders B. processors

. C. Consumers D. Others (Specify)

7. What do you do if your Product is not sold on time?

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 A. Return back to home B. Sell with lower price

C. Sell on another market place D. Sell on the same market

8. Do you have storage service?

Yes No

9. Do you have access to transport?

Yes No

10. Do you have access to credit?

Yes No

11. If you answer for question number 6 is yes, what are your financial service providers?

Bank B. Amhara credit and saving institution

C. Friends D. Traditional leaders

. 12 are the major opportunities of wheat marketing in the study area?

Availability of market C. Availability of market information

Availability of labor D. Others (specify

13. What are the major constraints of wheat marketing in the study area?

A. Availability of market C. Availability of market information

B. Availability of labor D. Others (specify)

14. What are the major constraints of wheat marketing?

Loss of customers C. Lack of transportation service

Lack of financial service D. Others (specify)

15. Where do you sell your wheat?

In village C. In woreda

In kebele D. Others (specify)

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16. Do you process your wheat?

Yes No

17. If your answer for question number 11 is yes, in what form?

A. Injera B. pasta C. Tela D. mekorenie

Questionnaires for processors

From whom you buy the raw wheat?

A. Producers B. Retailers C. Others (specify)

2. In what form that you process the raw wheat?

A. Injera B. pasta C. Tela D. mekorenie

3. What are the major constraints of wheat processing?

A. Price fluctuation of raw wheat

B. Loss of customers

C. Development of substitute products

D. Others (specify)

4. Do you have access to credit?

Yes No

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