Open Access
American Research Journal of Business and Management
ISSN (Online): 2379-1047
DOI: 10.46568/arjbm
Review of Potato Value Chain Performance in Ethiopia: Financial Value Addition and Margin Sharing Perspective
Abstract
Potato is among the major root and tuber crops and share 41.14% of area coverage and 29.9% of total
production. Almost all improved potato varieties released in Ethiopia mature within 124 days, which made
potato shorter crop cycle among horticultural crops and is regarded as food security crop in Ethiopian. Around
80% of potatoes are sold as ware tubers and 85% of them is consumed fresh. Each potato consumers have
their own quality criteria to purchase potato. To fulfill these consumers preference all chain actors expected
to coordinate and collaborate along the chain. This review article was done to review value chain performance
of potato in Ethiopia from financial performance perspective. Specifically, it aim to review potato value chain
actors and their role, actors value additions and profit share along chain and to recommended leverage point
to upgrade potato value chain in Ethiopia. To came up with well-organized review result, empirical studies
conducted in potato value chain in Ethiopia for different purpose, published documents and value chain
research guide books were reviewed systematically. To determine performance analysis of potato value chain
in Ethiopia, financial perspective of percentage value added along the chain and value share by each chain actors
were used and comparisons were held. Review results indicate that compared to producer farmers, traders
adding low cost margins and sharing market margin and profit margin. Tariff setting and fixing responsibility
of brokers, establishment of well-organized market information system and functional upgrading of producers
recommended improve potato value chain performance in Ethiopia.
