AMBO UNIVERSITY

COLLEGE OF AGRICULTURE AND VETERINARY SCIENCE

DEPARTEMENT OF AGRI BUSINESS AND VALUE CHAIN
MANAGEMENT

ANALYSIS OF TOMATO VALUE CHAIN IN TOKE KUTAYE DISTRICT WEST SHOA ZONE
A SENIORRESEARCH SUBMITTED TO DEPARTEMENT OF AGRIBUSINESS AND VALUE
CHAIN MANAGEMENT

PREPARED BY:

NAME ID No
1, ADUGNA JIRATA R/0002/06
2. CHALKITU LETA R/0015/06
3. JALANE MULUGETA R/0031/06
.

ADVISOR: AMSALU K. (BSC)

June, 2016
Ambo, Ethiopia
ACKNOWLEDGMENT

First, we would like to extend our unshared thanks to the Almighty God for providing me the
opportunity and smoothening of all aspects regarding our study.
Next, we gratefully acknowledge our major adviser Amsalukeba(BSc) for his valuable comments
insights and guidance from which we benefited much. He scarifies his previous time and energy
to advise us and provide suggestion to materialize this senior research project. Next, we would
like to express our deepest gratitude to the respondents in the survey study for their assistance in
providing us the required information. Last but not certainly least; our special thanks go to our
parents who helped us in unlimited financial support and the moral support in preparing this
paper.

I
 Table of contents

Contents page

ACKNOWLEDGMENT....................................................................................................................................I
List of table.................................................................................................................................................IV
LIST OF FIGURE............................................................................................................................................V
Acronyms and Abbreviations.....................................................................................................................VI
ABSTRACT..................................................................................................................................................VII
1. INTRODUCTION.......................................................................................................................................1
1.1. Background of the study...................................................................................................................1
1.2. Statement of the problems...............................................................................................................3
1.3. Objectives of the study.....................................................................................................................4
1.3.1. General objective: -....................................................................................................................4

II
 1.3.2. Specific objectives.....................................................................................................................4
1.4. The scope of the study......................................................................................................................4
1.5. Significance of the study..................................................................................................................5
1.6. Limitation of the study......................................................................................................................5
2. REVIEW OF LITERATURE................................................................................................................6
2.1. The concepts Tomato and their definition.........................................................................................6
2.1.1. Taxonomy of tomato..................................................................................................................6
2.1.2. Production of tomato.................................................................................................................7
2.1.3. Empirical Studies.....................................................................................................................8
2.1.4. Characteristics of Vegetables Marketing...................................................................................9
3. METHODOLOGY................................................................................................................................11
3.1 Description of the study area...........................................................................................................11
3.2 Data Required..................................................................................................................................11
3.2. Sampling technique........................................................................................................................12
3.3. Source, types and Method of data collection..................................................................................12
3.4. Method of data Analysis.................................................................................................................12
4. RESULT AND DISCUSSION..............................................................................................................13
4.1. Households and farm characteristics...............................................................................................13
4.1.1. Household characteristics........................................................................................................13
4.2. Major Production and Marketing problems of Tomato...................................................................16
4.2.1. Major actors in tomato value chain and their roles..................................................................17
4.3 Consumption of tomato...................................................................................................................19
4.4. Types of business/forms of business...............................................................................................19
4.4.1. Sole proprietorship...................................................................................................................19
4.5. Types of transportation...................................................................................................................20
4.6. Marketing channels of tomato........................................................................................................20
5, Summary, Conclusions and Recommendation.......................................................................................22
5.1. Conclusion......................................................................................................................................22
5.2. Recommendations..........................................................................................................................23
6. Reference...............................................................................................................................................24
7, Appendix...............................................................................................................................................25

III
 List of table
Table’s page

Table 1 Respondent social demographic characteristic.............................................................13

Table 2: age of respondents that participate in the production oftomato..................................14

Table 3 pricing information of the respondent............................................................................14

Table 4: How the respondent are satisfied to run the business in the value chain......................15

Table 5; describes types tomato produced in the study area........................................................15

Table 6; Major production problem in the study area..................................................................16

Table 7 marketing problem from farmer......................................................................................17

IV
 LIST OF FIGURE
Figure 1: structure of Marketing channel……………………………22

V
Acronyms and Abbreviations
MARC: MelkassaAgricultural Research center

TKWOA; Toke kutayeWoreda Offices of Agriculture.

Hec: Hectare

CSA: Central Statistical Agency

Gov`t: Government

EARO: Ethiopian Agriculture and research organization

FAO: Food and Agriculture Organization

VI
ABSTRACT
Generally, tomato is a vegetable crop that widely grows in the world and regarded as one of the
top priority vegetable. In Ethiopia it is also among the most important vegetable crops its
production has shown marked increases since it become the most profitable crop. In Ethiopia
the total area under production reaches 51,698 hect and annual production is estimated to be
more than 230000 tons. The development of tomato production in Toke kutaye district was
severely hampered by the lack of good pre-and post-harvest handling and lack of modern
irrigation and lack of facilitated storage. General objectives of the study are to analysis tomato
value chain in Toke kutaye district. In Toke kutayedistrict there are 23 kebeles among those two
kebeles were selected through purposive sampling. Both qualitative and quantitative data type
was used. Primary and secondary data source were used. The collected data from different

VII
source was analyzed using descriptive statistics. The horticultural producer in Toke kutaye
district have weak or no organization that could strength their bargaining power from input
supply up toour marketing. Marketing channels involves a series of intermediaries through
which tomato pass from producer to consumer. All farmers’ respondents, whole sellers and
retailer incur post-harvest losses due to spoilage.

VIII
 1. INTRODUCTION
1.1. Background of the study
Tomato is one of the most widely grow vegetable in the world and regarded as one of the top
priority vegetable. Tomato contributes to healthy, because it is rich in minerals, essential
amino acids, sugars and dietary fibers and is considered to be fairly high in vitamins with
potential for better quality processing. The popularity of tomato is rising among consumers ,not
only because of its good taste , but also because it contains high level of the vitamin C, and
beta carotene which are anti-oxidants that promote good health. World tomato production in
2011 was about 14 6 million tons of fresh fruit from an estimation 5.5 million hectares and
with a yield potential of up to 48.1 tons/ha. In Ethiopia it is also among the most important
vegetable crops and its production has shown a marked increase since it became the most
profitable crop providing a higher income to small scale farmers compared to other
vegetable crops(Million and Belay, 2004).

In Ethiopia, the total area under production reaches 51, 698 hectares and annual production is
estimated to be more than 230,000 tons. The national average of tomato fruit yield in Ethiopia
is very low (7 tons/ha) and compared even to the neighboring African countries like Kenya
(164 q/ha and less than 50% of the current world average yield of 27 tons/ha.Farmers get
lower yield mainly due to diseases, pests and sub-optimal fertilization. However, there are
anumber offactors which limits tomato yield. These include the lack of improved well
performing varieties poor fruit setting due to heavy rains and excessively high temperatures,
pests and disease. The most important factors responsible for the low productivity of tomato are
disease and insect pest. Among those disease , early and late blight of fungal diseases are the
most destructive and wide spread diseases of solanaceous vegetables in tropical sub-tropical
and temperate region of the world and also in Ethiopia (Bellemare and Barret, 2006).

1
Status of Horticulture Production in Ethiopia
Ethiopia has a variety of vegetable crops grown in different agro ecological zones by small
farmers, mainly as a source of income as well as for food. The production of vegetables varies
from cultivating a few plants in the backyards, for home consumption, to large-scale production
for the domestic and home markets. According to CSA (2003) the area under these crops
(vegetables and root crops) was estimated to be 356,338.82 hectares.

The productivity of crops is very low compared to the potential yield obtained in the research
centers and on farmers’ field technology verification studies. For instance, the productivity of
onion and tomatoes was about 90 and 70 quintals per hectare compared to the potential yield of
400 and 350 quintal per hectare in research centers (EARO, 2002 as cited in Dawit
etal.,2004).Tomatoes- (Lycopersiconesculuntum Mill) is most important and remunerative
vegetable crop in the world. Tomato is a rich source of minerals, vitamins and organic acids;
tomato fruit provides 3-4% total sugar, 4-7% total solids, 15-30mg/100g ascorbic acid, 7.5-10
mg/100ml treatable acidity and 20-50mg/100g fruit weight of lycopene.Theimportance of
cultivated tomato to date is increasing in Ethiopia. It is widely accepted and commonly used in a
variety of dishes as raw, cooked or processed products more than any other vegetables (Lemma,
2002, as cited on Abay, 2007).

The bulk of fresh market tomatoes are produced by small-scale farmers. Farmers are interested in
tomato production more than any other vegetables for its multiple harvests, which result in high
profit per unit area. Tomatoes vary in visible fruit characteristics important for fresh market and
processing values. These include shape, size, color, flesh thickness, number of locules, blossom
end shape and fruit quality. The fruits may be globe shaped (Mar globe), oval or flattened
(Marmande), and pear shaped (Roma VF), which differ in acceptability in the local market,
quality, and storability (Barret and Mutambatsere, 2002).

2
1.2. Statement of the problems
The development of tomato production in Toke kutaye district was severely hampered by the
lack of good pre and post-harvest handling, lack of facilitated storage and lack of modern
irrigations. The other problem is a problem of disease, insect and pest that infect the tomato and
lack of improved well performing varieties.Also tomato value chain can be constrained by many
factors. Key constraints include high transaction costs, market imperfection, lack of technology,
lack of access to credit, perishability of the products and the prevalence of staple foods that are
only slightly traded (World Bank, 2008). These constraints may result in either exclusion of
smallholders from market or unequal distribution of benefits.
Growing and marketing of tomato produce in Ethiopia is complicated by high postharvest losses,
which are about 30% (EIAR, 2000; Worknehet al., 2011). This high loss is due to packaging,
storage facilities and poor means of transportation such as human labor, donkeys and mules,
public transport and rented trucks (Kebede, 1991; Samira et al., 2011). According to the same
study, along the vegetable channel, 25 percent of the product is spoiled. Toke kutayeworedais
one of the tomato producing areas in west Shoa. The study area is mainly constrained by
seasonality. The nature of the product in terms of perishesability on one hand and lack of
organized marketing system on the other resulted in low producers’ price. Involvement of market
intermediaries, lack of proper coordination among the value chain actors, and low marketing
margins are shared among the actors as share to producers and quality and post-harvest losses are
the major problems. Even though tomato is economically and socially important, tomato value
chain and its characteristics have not yet been studied and documented in the study area.
Therefore, this study investigated tomato value chain actors and their linkages, factors affecting
marketed surplus, and determinants of channel choice decisions. This study may help to narrow
the information gap on the subject and it may contributes towards improvement of strategies for
reorienting value chain system

3
1.3. Objectives of the study

1.3.1. General objective: -

The general objective of this study is to analysis tomato value chain in Toke kutayedistrict.

1.3.2. Specific objectives

1) To identify tomato value chain actor in Toke kutaye District.

2) To assess tomato value additionprocesses and activities in Toke kutaye District.

Research Questions
The study attempted to answer the following questions:

1. Who are the actors in tomato value chain and what are their roles in the value chain?

2. What are the major factors affecting tomato production in the study area?

3. What are the major factors of tomato marketing?

1.4. The scope of the study

The scope of the study is geographically limited to Toke kutayedistrict particularly the analysis
of tomato value chain.

4
1.5. Significance of the study
This study generated valuable information on tomato value chain that would assist concerned
authorities to make relevant decisions to intervene in the development of tomato value chain and
designing of appropriate policies and strategies. Governmental and
nongovernmentalorganizations that are working through their programs on the development of
the value chain sub-sector would benefit from the result of this study. The findings of the study
would also be useful to producers, traders, consumers, and marketing agents to make their
respective decisions. It can also serve as a reference for researchers and students who are
interested in studying value chain and other related subjects.Generally this study can be
important in many cases for the following purpose;-.

 The studies also identify the factors that affect the production and marketing of
tomato.
 This study also used other researcher as secondary source of data.
 They also identify the marketing problem of tomato in Toke kutaye district.

1.6. Limitation of the study

During this research was conducted, the researchers faces some challenges, mainly Lack of
available written data and books in library concerning theissue study.Although, the study is
essential to undertaken at wider scale in all areas of the country, it is difficult to get the relevant
data due to unwillingness the respondent’s time, budget, unavailability of reliable data, and due
to the limited availability of resources it limits only in toke kutaye district. The study was limited
spatially as well as temporally to make the study more representative in terms of wider range of
area, and time horizon. The study does not represent the whole value chain of tomato in the
country and only focus on five tomato producing kebelesof one woreda

5
2. REVIEW OF LITERATURE

2.1. The concepts Tomato and their definition

Tomato is globally cultivated for its flesh fruits known as protective food because of its special
nutritive value and its wide spread production. It is the world`s largest vegetable crop after potato
and it tops the list of canned vegetable. Tomatoes are eaten directly as raw vegetable or
consumed in a variety of processed product like ketch-up, sauce, chutney, juice, and also contain
minerals like iron, phosphorus (jema, 2008).

Furthermore tomato is the richest source of nutrients, dietary fibers anti-oxidant like, lycopene
and beta- carotene, the compound that protect cells from cancer. Tomato has a short generation
time about three to four months. It is well fitted in different cropping system of cereals grains,
pulses and oil seeds. Hence, it is the most widely grown salacious vegetable crops grown
worldwide under outdoor and indoor conditions source (Holloway etal, 1999).

2.1.1. Taxonomy of tomato

Tomato belongs to the family solanceae (also known as night shade family, genus solanum, sub
family solaniodean and tribe solaneae. The genus includes a small collation of cultivated and
wild species like S. Lycopesiconmilli wild species like s Peruvian, S, hirsutm,Sglandulosam, S.
pimpinellifolium. The tomato is native to central and South America. The tomato is popular and
versatile food. In tomato only fruits can be eaten since the leaves contain toxic alkaloids. The
cultivated tomato, solanumlycopersiocanis the second most consumed vegetableworldwide and
well-studied crop species in terms of genetics, genomics and breeding.The tomato is perennial
plant but usually grown as all annual plant (Lemma, 2002, as cited on Abay,2007).

It is reported that the tomato plant can reach up to 3m. The stems are somewhat weak and often
require stating or support such as tomato cage. Branching at the base is monopodium,becomes
symodialhigher up. The tomato leaves are 10 to 30cm long and unevenly impertipinnate
compound with variously indinted or lobed margins. Both the stems and the leaves are slightly
rough and fully. The tomato fruits are fleshy berries green when unripe and become deep red
and skin when ripe. The tomato cultivars differentiatea great green and brown variety of fruits.
The shape can varies from small cherry tomatoes , pear shaped tomatoes to large irregular
shaped beefy tomatoes(FAO ,as cited Abay, 2007).

6
2.1.2. Production of tomato
Previously tomatoes were grown only during favorable season, but now days, tomato are grown
round the year. Because of its economic importance,area under cultivation is increasing every
year. The estimated area and production of tomato for India are about 350,000 hectares and 53,
00,000 tons respectively (Million and Belay, 2004)

Worldwide tomato production in 2005 totaled 29.9 million metric tons and production for 2005 /
2006 season in Europe totaled 10.6 million metric tons .Tomato is the second largest vegetable
crop in India. The average productivity of tomato in our country is merely 158q/ha and 465q/ha
in Spain).(Hollawayetal 2000).Red skin tomatoes are the most preferred in local markets.The
sugar and acid ratio has important contribution to the flavor of tomatoes (Metama and Bossena,
2008)

The content of glucose, fructose, citric acid and there interrelationships also influence the taste
and aroma of the fruits (Metema and Kindei, 2007). Currently, demand for fresh market
tomatoes is changing to the processing cultivars because of their thick flesh and easy of
transportation, storability and fitness for multi-purpose use.Tomato can be grown in many types
of soils. However, well drained friable sandy loam soil with PH of 6.7is preferablefor early and
high fruitsyield Tomato is produced mainly under irrigation. Production in the rainy season is
also possible but need intensive management.(Shanmugarvehu,1989).

The demand for fresh market tomato has been for the round /globular and large fruit cultivars.
recently , pear shaped actives, which have thick flesh , long shelf life , and potential for long
distance transportation are better accepted. In the mid and hate 1990s , tomato cultivars were
intensively tested in the upper and middle Awash valley cultivars VFN-138 flora dad ,
Homestead and Heinz 1350 selection Mexico produced good foliage coverage which
protected the fruit from direct sun burn (MARC, 1996, 1998, 1999) .

7
2.1.3. Empirical Studies
Marketing function studies marketing in terms of the various activities that are performed in
getting farm product from the producer to the consumer. These activities are called functions (,
cramers andjenseified, and 1982).According to Sacco based on objectives: logistical, marketing
and economic objectives. Logistical functions are related to the concentration, transport and
preservation of products. Marketing functions are dedicated to classification, packaging,
development of demand and market information. Economic functions include financing, risk
bearing and facilitation of exchange.

Marketing of agricultural products consists primarily of moving products from production sites
to points of final consumption. In this regard, the market performs exchange functions as well as
physical and facilitating functions. The exchange function involves buying, selling and pricing.
Transportation, product transformation and storage are physical functions, while financing, risk
bearing and marketing information facilitating marketing Branson and Norvell, 1983).

Goetz and Weber (1986) stated dimensions before a commodity be available to the urban
consumer to include the temporal, spatial and form dimensions. The temporal dimension is
regarding the storage and providing reliable supply, the spatial dimension regards the transport of
the produce from point of production to urban centers, and the form dimension discloses the
processing, labeling, packaging, sorting and cleaning activities before the product arrive at the
final consumer. A clear understanding of marketing function with an investigation of strengths
and weakness help where to improve the marketing system. The level of functions could differ
from product to product and hence in the horticulture marketing study this part always draws
attention.

8
2.1.4. Characteristics of Vegetables Marketing
Being produced both by commercial and smallholder farmers vegetable marketing is influenced
by a number of factors that can be attributed to production, product, and market characteristics.
Kohl and Uhl (1985) identified these attributes as-

Perish ability-as vegetables are highly perishable, they start to lose their quality right after
harvest and continued throughout the process until it is consumed. For this purpose elaborated
and extensive marketing channels, facilities and equipments are vital.

This behavior of vegetables exposed the commodity not to be held for long periods and fresh
produce from one area is often sent to distant markets without a firm buyer or price. Prices may
be negotiated while the commodities are en route, and they are frequently diverted from their
original destination of a better price can be found. Sellers might have little market power in
determining a price. As a result, a great deal of trust and informal agreements are involved in
marketing fresh vegetables. There could not always be time to write everything down and
negotiate the fine details of a trade. The urgent, informal marketing processes often leads to
disputes between buyers and sellers of fresh fruits and vegetables. Producers are normally price
takers and are frequently exposed for cheating by any intermediary (MotiJaleta, 2007).

Price /Quantity Risks- Due to perishable nature and biological nature of production process
there is a difficulty of scheduling the supply of vegetables to market demand. The crops are
subjected to high price and quantity risks with changing consumer demands and production
conditions. Unusual production or harvesting weather or a major crop disease can influence
badly the marketing system. While food-marketing system demands stable price and supply, a
number of marketing arrangements like contract farming provide stability (Moraket
Thomas,2001).

Seasonality- Vegetables have seasonal production directly influencing their marketing.

Normally they have limited period of harvest and more or less a year round demand. In fact, in
some cases the cultural and religious set up of the society also renders demand to be seasonal.
This seasonality also worsened by lack of facilities to store(Minot, N W, 1986).

9
Product bulkiness- Since water is the major components of the product, it makes them bulky
and low value per unit that is expensive to transport in fresh form every time. This, therefore,
exposed farmers to lose large amount of product in the farm unsold (Morris, M.L, 1995).

These listed characteristics of the product require a special complex system of supportive inputs.
It demands a regular marketing preparation process like washing, cooling, proper management
from the time of harvest until the produce is put on display. It is frequently believed a vegetable
not only remain attractive to the consumer it must also have a shelf life of few days after having
purchased by the consumer (Nonnecke, 1989).

Improving vegetables marketing in developing countries is vital for a number of reasons: rapid
increase in demand from growing domestic urban populations, opportunities to earn foreign
exchange by exporting high value-off-season produce; the income raising opportunities it offer to
small farmers and the contribution to employment made by its labor intensive production,
handling and sales requirement are some to mention (FAO, 1986, cited on Abay, 2007).

Horticulture production is profitable. Farmers involved in horticulture production usually earn

much higher farm income as compared to cereal producers. Cultivation of fruits and vegetables
allows for productive employment where the labor/land ratio is high, since horticultural
production is usually labor intensive. Increasing horticulture production contributes
commercialization of the rural economy and creates many off-farm jobs. However, expanding
the scale of horticulture production is often hindered by lack of market access, market
information, and many biological factors (Weinberger and Lumpkin, 2005). Ideally, measures
commonly recommended for the improvement of vegetables marketing are better packaging,
handling, and transport; sorting by quality; extending the market season and leveling out gluts
and shortages by market delivery planning and storage; developing new markets; installation of
refrigerated transport and processing equipment: and establishing marketing
enterprises( Kotler ,p, 2003). Bezabih and Hadera (2007) stated that production is seasonal and
price is inversely related to supply. During the peak supply period, the prices decline. The
situation is worsened by the perish ability of the products and poor storage facilities. Along the
market channel, 25 percent of the product is spoiled. From these reviewed literatures severe
production seasonality, seasonal price fluctuations, poor pre-and post-harvest handling,

10
prevalence of pest and diseases, lack of storage are some of the critical problems encountered
vegetable production in Ethiopia.

3. METHODOLOGY
3.1 Description of the study area

Toke kutayewereda is one of the 18 weredas in west shoa zone known for predominantly
growingcrop. It is located 124 km from Addis Ababa as well as 10km west of the Ambo zone
capital. The number of agricultural Households in the wereda will be 45,567 (35,533 Male
headed and 10,034 Female headed), while Total population of the wareda was 134767 including
urban and village in 2007/08. Agro ecologically, Toke kuteyewerada is classified as 96% wet,
weinadega or wet midland and 4% kola (low land). Altitude in west shoa zone ranges from 2366
to 5872 meters above sea level. The most part of the wereda lay between 1387 and 1643, and
1849 and 2067 meters above sea level. However few of the areas in wereda have altitudes
ranging from 2229 to 2870 m.a.s.l the temperature of this area is 10-29c o which is mean annual
temperature and rain fall 800-1100mm. Therefore, it is warm temperature climate which locally
called wenadegas(Source, From Agricultural Office).

3.2 Data Required

To undertake this study both primary and secondary data was collected. The primary data was
collected from producer, trader (merchant), processor, whole seller and retailerthat was not
structured or documented while secondary data was collected from agricultural office of the
woreda which was published and document books that was structured and organized document.

11
3.2. Sampling technique
In Toke kutaye district there are 31 kebeles among these two ImalaDawweAjo total population
5212(male 2713 and female 2499) and Naga file total population 5665 (male 2897, female
2768,). From Naga file totally 25,(male 15,female 10) since the number of population of Naga
file kebeles was more than ImalaDawweAjo population and they have active participation in
tomato productionand from ImalaDawweAjo totally 20 (male 12,female 8) because of they have
low participation in tomato production andtotally 45 person was taken for sample since it is
impossible to include all kebelesbecause of insufficient time and budget. From thesekebele the
number of farmer producer of tomato in ImalaDawweAjo(6male and 4female) totally 10 persons
because this kebele was low in production of tomatoas compared to Naga file kebeleand 15
(10male and 5 female) taken from Naga File since in this kebele the production of tomato is
high as compared to other kebelesImalaDawweAjo.Generally, 25persons (16 male and 9
females)are tomato producing farmers, 20 traders (6 wholesalers, 4 roadside traders and 3
retailers), and 7consumers andtotally 45(27 male, 18 Female) persons are respondents that are
selected through purposive sampling.

3.3. Source, types and Method of data collection

Both quantitative and qualitative data were used in this study .The primary data sources was
collected from farmers, trader, consumers and agricultural specialist who were working in
each woreda. The secondary data was collected from books, newspapers annual reports journals
and magazines.

Primary data was collected by using interviews, questionnaires and personal observation. The
secondary data was collected from published and unpublished documents, such as, the annual
reports of the district and others.

3.4. Method of data Analysis

The collected data from different sources were organized in order to make discussion easier. The
data was analyzed using description statistic such as table, frequency distribution and percent.

12
 4. RESULT AND DISCUSSION
This part presents the result and discussion of descriptive analysis of the study area. Descriptive
analysis employed to describe the socio demographic characteristics of sampled farm
households, structure conduct, extension support service and profitability of tomato producers
and traders are discussed us follow;-

4.1. Households and farm characteristics

4.1.1. Household characteristics

Table1. Respondent social demographic characteristic

List Number of Percent

respondent
Sex
Male 27 80%
Female 18 20%
TOTALLY 45 100%
EDUCATION LEVEL
Illiterate 5 11%
Able to read and writer 14 36%
Grade 1-4 8 20%
Grade 5-8 7 12%
Grade 9-12 11 21%
TOTALLY 45 100%
Marital status
Married 15 30%
Divorced 7 18%
Widowed 8 22%
single 15 30%

TOTALLY 45 100%

Source survey result,2007

13
Table one depicts that about 11% of the sample respondent were illiterate, 36% able to read and
write, 20% grade 1-4,12% grade 5-8 and 21% grade 9-12.As we observed this table the major
respondents are possible to read and write means 36% of the respondent these persons are
possible to understand about value chain of tomato through reading different materials that
available to increase the quality of tomato on the chain. Generally the majority of persons are
understanding tomato value chain from production to consumer.

About 30% of the sample respondents were married, 18%divorced,22% widowed and30%
single.As the result observed from marital status majority of respondents are married and single
that means 30%,30% respectively so these good for tomato value chain analysis since there no as
such disagreement or conflict between the persons that participate in the chain.

Table 2: Age of respondents that participate in the production of tomato

Age category Number of Percent

respondent

15-25 20 45%
26-45 19 40%

46-65 6 15%
Above 65 0 0%
Totally 45 100%
Source survey result 2007

As shown on the above table of the total respondents included in the study (40%)fall within age
range of 26-45 followed by (45%) which fall between ageranges of 15-25. Similarly 15% of the
respondents age range fall between 46-65 whiles zero percent above 65 ages. Generally the result
can conclude from the above table is that the age of respondent between 15--25 is highly
participate in the production of tomato .Above 65age of the respondentcannot response. From
this status result was conclude majority of the respondents are young as the result observed ages
that means between 15-25 agesso between these ages there is labor which achieve to goal
production or value chain activity. For these reason 45% of respondents have active participation
on production of tomato or initial stage of tomato chain.

14
Table 3 pricing information of the respondent on tomato value chain;

Sources of information Number of Percent

respondent
From news letter 15 16%
From radio 20 72%
From internet 0 0%
From TV 10 12%
totally 45 100%
Source: survey result 2007 .The majority of the respondent gets price information from radio
(72%) and 20% from TV and 8% from newsletter. Information is very important in the chain in
order to keep cost in the chain. So getting information in one direction has problem on value
chain tomato mean that these persons or respondents are affected by absence sufficient
information on value chain tomato because of they have no high opportunity of getting
information.

Table 4: How the respondent are satisfied to run the business in the tomato value chain ;

category Number of Percent

respondent

Very satisfied 12 28%

Satisfied 22 60%
Not satisfied 11 12%
Totally 45 100%
Source survey result 2007

As shown on the above table 60% the respondents were satisfied to run the tomato production
because of the tomato production was produced twice year. About 12% of the respondents were
not satisfied because the respondent said that due to highly, perishable and seasonality the main
factor to determine tomato production. While other 28%of respondent very satisfied. So if
thesatisfaction of tomato production is increased at initial stage it increased the satisfaction of all
chains and vise verse. Generally majority of the respondents are satisfied in tomato value chain.

4.3. Major Production and Marketing problems of Tomato

Table 6: Major Production Problem in the Study Area.
15
In the study area, we identify different production problem that cause low profitability of the
product.

Production problem Number of Percent

respondent
Lack of improved variety 15 30%
Shortage of water 10 20%
Disease and insect pest 17 40%
Lack of financial 3 10%
totally 45 100%

Source survey result 2007

As shown in the above table, 40% of theproduction of tomato is affected by disease and insect
pest. Next to this, 30% of due to lack of improved variety, 20%, and 10% are due to shortage of
water and lack of financial respectively. According this status majority of tomato production
affected by disease and pests so this problem is affect all chains of tomato that means if it affect
at initial stage product it has cost on others chain. For this reason tomato value chain in Toke
kutaye district are majority affected by disease and pests

Table 7: marketing problem on tomato value chain;

We are identifying different marketing problem in the study area.

Problem Number of Percent

respondent
Price fluctuation 12 20%
Perishability of the product 20 50%
Seasonality 6 10%
16
 Lack of proper packaging 7 20%
Total 45 100%
Source survey result 2007

As respondent responses on the above table, 50% of tomato marketing problem is due to
perishability of the product. By its nature horticultural crop is highly perishable as compared
with cereal crops. The other marketing problems,is 20% due to price fluctuation that means vary
from time to time and 20% and 10% due to improper package and seasonality respectively. As
the result observed 50% of tomatoes affected by perish- ability or deterioration, so these problem
has effect on all tomato value chain and it also incur into cost respondents at all chain.

4.2.1. Major actors in tomato value chain and their roles.

Input suppliers: Regarding the delivery of inputs like improved seed, herbicide and pesticide,
TKWOA and cooperative are the main actors responsible for the supply of such inputs in the
study area. Development agents are playing facilitation role in collecting farmers input
requirement and submitting it to the WOA. They also play the same role during input
distribution. Most of the time in the study woredainput suppliers are primary cooperatives who
disseminate suitable seed varieties to expand and promote the development of new tomato
varieties.

Producers: Farmers produce tomato and sell to wholesalers and local village markets like
Mutulumarket and roadside market. Out of 140 respondents 47.9% of the sample households
answered that they sold to wholesalers, allow 25% to roadside market, and 27.1% Mutulumarket.
They transport tomato to the nearest market Mutuluusing animal carts and smaller percentage of
products uses head/backload, and vehicles. The study show that 60% of the sample households
use animal carts, 32% of them use trucks and the rest 8% use head/backload.
Wholesalers: Wholesalers are market participants who buy large quantities of tomato and resell
to other traders. They purchase tomato at farm gate, from mutulu market from roadside traders
and producers in a larger volume than any other marketing actor does. They relatively spend
their full time in wholesale buying throughout the year in and out of the woreda. Each
wholesaler uses Isuzu trucks as a transportation vehicle; if the amount of tomato supplied to the
market is large. Otherwise, they purchase other vegetable crops like onion together with tomato

17
to fill the truck. The role of brokers was inclined towards buyers. Wholesalers usually get
information from friends in Addis Ababa, Adama, and Hawasa and set the daily price. There
seemed slight competition among wholesalers but the collusion outweighs.

Roadside traders: Roadside traders are farmers who collect tomato from farmers at farm gate
for reselling to retailers and consumers. Producer’s sale about 25% of tomato 40 Produce to
roadside traders, and roadside traders re-sell it to wholesalers, retailers and consumers in Guder
roadside market. They play important role and they do know areas of surplus well. They have
capital limitation. There are few roadside traders who compete with wholesalers. When it is
impossible for them to meet quantities of their demand, they employ brokers to collect tomato by
paying a commission.

Brokers: These participants of the system were those who exist between producers and bulk
buyers. They did not handle any product but facilitate the buying and selling activities between
farmers, wholesalers, roadside traders and retailers. These people are not permanent brokers
where their main activity is farming in the farming months of the year. All were male and their
age ranged from 18-45 years. These people had a power to suppress the free selling and buying
behavior of the farmers. The main activities that brokers usually do was weighing, registering
amount tomato supplied by each farmer and safeguarding wholesalers. They also served in
suppressing grievances of selling farmers at the time of weighing, and other mischief. Their
broker age cost was a flat rate of 250 ETB per 50 quintals. Brokering of tomato was very limited
due to the measurement limit (box) and the volume produced.

Retailers: Tomato retailers in Guder purchase tomato directly from producers or roadside traders
and sell to consumers. This is one of the final links in the chain that delivers tomato to
consumers. They are very numerous as compared to others and their function is selling tomato to
consumers in small volumes after receiving large volumes from roadside traders, wholesalers
and producers.

Consumers: From the consumer point of view, the shorter the market chain, the more likely is
the retail price going to be low and affordable. They are individual households and large
consumer like restaurant, hotels, and cafe. They buy the commodity for their own consumption.

18
Consumers’ consumption patterns/demand structure, purchasing power and traditions/norms are
assumed to largely affect the potential market for agricultural commodities.

Supportive actors: Value chain supporters or enablers provide support services and represent
the common interests of the value chain operators. They remain outsiders to the regular business
process and restrict themselves to temporarily facilitating a chain upgrading strategy. Typical
facilitation tasks include creating awareness, facilitating joint strategy building and action, and
the coordination of support activities (like training, credit, input supply, etc) and facilitating

market. The main supporters of the tomato value chain in the study area are woreda’sOffice of
Agricultural (WOA) and cooperative office and trade and marketing development office is
inefficient to support tomato value chain, it aims to support through providing market
information, strengthening available cooperatives, and organizing new producer’s cooperatives.

4.3 Consumption of tomato.

As a respondent respond the majority of the consumer consumes fresh tomatoes and few of them
can use processed tomatoes in the study area. 66.67% of the consumer use fresh tomatoes and
33.33% of the consumers use processed tomatoes.As different consumer responds the processed
tomatoes are long shelf-life as compared withfresh tomatoes

Processed tomato is a tomato that converts from fresh tomato into processed one that means in
the form of juice and chimaqi. Ascompared price of fresh tomatoes with processed tomatoes, the
price of fresh tomato is lower than the processed one.
This is because of the fresh tomato is highly perishable, but processed tomato is not easily
perishable as compared with fresh tomatoes.

4.4. Types of business/forms of business

4.4.1. Sole proprietorship

All 100% of the respondent engaged sole proprietorship. Sole proprietorship is type of business
entity that is owned and run by one individual and in which there is no legal distinction between
the owner and the business. The owner receives all profit and has unlimited responsibility for all
losses and debts

19
These formsof businesses have their own advantages and disadvantages.

Advantage of sole proprietorship; It is easy to organize and requires small amount capital to
start the business, the owner receives all profit of the business ,quick decision making, you
areyour own boss,it is easier if you are good leader and due to owner’s unlimited liability

Disadvantage of sole proprietorship; when owner dies, the continuation of the business is
difficult, because a new owner must typically accept all liabilities of the business, bear risk and
loss alone, has limited resource.

4.5. Types of transportation

The type of transportation that, we identify in the study area are; by animals, truck and carrying
by themselves.

As the respondent, responses 50% of the farmer can transported their product by donkey from
farm up to the reaches the market.

Next to this, 30% of our respondent can transport their product by car or truck and 20% can
transport their product by back from farm up to market places. When it transport tomato from
one place to another their many problem can be occurred. Like reducing in quantity because of
many challenge related to condition like sun.

4.6. Marketing channels of tomato

Marketing channels involves a series of intermediaries through which tomato pass from
producers to consumers.

Figure one present out lets or routes through which tomatoes move from the productionsite
untilthey reach thefinal buyer.

Figure 1 structure marketing channel.

Four parameters are necessary to measure the efficiency of a channel. These arequantity landed,
producers share, total marketing margin and rate ofreturn, out of which volume handily

20
 Farmer

Retailer

Trader

Consumer

Two types of channels areidentified inour discussion these are:-

1.Farmer consumer
2. Farmer trader consumer

Form these two types of channels the shortest channel is essential for the farmer. Because as the
channel increases the middleman buy from farmer at low price,due to this farmer isin the
disadvantageous position .For both consumer and farmer the shortest channel essential. The
middleman buys from farmer at low price and sells to the consumer at high price.

21
5, Summary, Conclusions and Recommendation

5.1. Conclusion
Tomato is one of the most widely grow vegetable in the world and regarded as one of the top
priority vegetable. Tomato contributes to healthy, because it is rich in minerals, essential
amino acids , sugars and dietary fibers and is considered to be fairly high.

In Ethiopia, the total area under production reaches 51, 698 hectares and annual production is
estimated to be more than 230,000 tons in vitamins with potential for better quality processing.

The development of tomato production in Toke kutayeworedawas severely hampered by the lack
of good pre and post-harvesthandling, lack of facilitated storage and lack of modern irrigations.
The other problem is a problem of disease, insect and pest that infect the tomato when tomato
and lack of improved well performing varieties. The general objective of this study is to analysis
tomato value chain in Toke kutayeworeda and The Specific objectives of this study areto identify
the constraints that affect tomato production in Toke kutayeworeda and to identify the marketing
problem of tomato in Toke kutayeworeda.Based on the data collected and analyzed the following
conclusion has drawn

Generally the production and productivity of tomato value chain in study area is poorly
developed .The linkage and relationship among chain actor is weak because of some factors:
Those factors include: lack of improved seed variety, shortage of water and disease and insect
pest. There is also the major marketing problems in the study area are; perish ability of the
product, pricefluctuation and seasonality of the product is the main problem. The existing chain
actors of tomato value chain in the study area have been identified.

22
5.2. Recommendations
There is many problem and challenge that discussed in the result and discussion part. Then
recommendations are as follows:

 There is a problem of poor packaging, handling,and transport and sorting of the

product.For this problem proper packaging, handling, cool transport essential for
reduction of the losses tomato yield.
 There is also a problem of disease and insect pest that infect the product. For this problem
the farmer can use resistance varieties and use of pesticide.
 To tackle the financial problem thefarmers can be associated as union and can get loan
from micro financial institution or other sources.
 Problem of lack of improved seed variety, the agricultural office at different level should
supply best seed thatcan best resist disease.
 The government should provide or give free land for farmers.
 For price fluctuation, the gov`t should setting the minimum and maximum price of the
product. For perishability of the product, the farmer can use cool storage and can convert
fresh tomato into processed tomatoes.

23
6. Reference
Amer, J. of Agri. Economics. 88(2), An MSc Thesis Presented to School of Graduate Studies of
Haramaya University., AVRDC Working Paper No 15. The World Vegetable Center.

Barrett, C.B., and E. Mutambatsere, 2002. Agricultural markets in developing countries.

Bellemare M.F. and Barrett C. F., 2006. An ordered Tobit model of market participation:

Bezabih, E., and Hadera, G., 2007. Constraints and opportunities of horticulture production

Bosena, T, 2008. Analysis of Cotton marketing chains in the case of MetemaWereda,

Branson, R., and D.G. Norvell, 1983.Introduction to Agricultural Marketing.

CSA, 2001/02, (Central statistical Authority).Area and Production of Major Crops, (css 2003).

Dry Lands Coordination Group Report No 46.Grensen

EIAR, 2000; Worknehet al., 2011).EARO, 2002 as cited in Dawitet al1986, shanmogervehus
1989

FAO (Food and Agriculture Organization), 1986.Marketing improvement in the developing.

FAO (Food and Agriculture Organization), 1997. Agriculture and food marketing food Systems;

Goetz, S., and M.T. Weber, 2004, Goetz, S., and M.T.Weber, 1986.Fundamentals of price
analysis in developing countries’.Hollawayetal (2000)

(Kebede, 1991; Samira et al., 2011)

Lemma, 2002, as cited onAbay, 2007), McGraw-Hill Cornell University.Million and Belay,
2004,

Morris M.L 1995,motijelata 2007),Kotter P.200,kowand uh 1985), kohl and uhl (1985)

24
Thomas, 2001. Overcoming transaction costs Barriers to market participation of and marketing
in eastern Ethiopia.

Weinberger, K., and T.A. Lumpkin, 2005. Horticulture for poverty alleviation, World Bank, 2008

7, Appendix
Questionnaire to be filled by farmers

Dear respondents:

The purpose of this questionnaire is to collect information tomato value chain for a research
project work, so, be sure that there is nothing behind the study all your response will be kept
secret (confidential) hence you are kindly requested to fill the questionnaire given below. Your
response is possible.

Thank you in advance for your cooperation

1. Personal information (ALL RESPONDENTS)

Name of respondent___________________________

2. Address of respondent: Kebele______________, Woreda_____________________

3. Sex respondent, A. Male B .Female

4. Age of the respondent: ________

5. Marital status, A. Single B. Married C. Divorced

6. Religion, A. Orthodox B. Muslim C. Protestant D. others_________________

7. Educational status A. Illiterate B. Literate

8. If literate, level of education in grade: _________

9. What types of tomato you produced?

A. Determinate B. Indeterminate.

25
10. How many boxes you produced in one year?

A. less than 50 B. 50-100 C. More than 100

11. What types of problem you face when you produce?

A. inadequate rain fall B. lack of demand C. lack of capital D. lack of improve seed

12. What transportation you use to transport tomatoes?

A. Cart B. Donkey C. By back

13. Do you think which profitable is high?

A. processed tomato C. fresh tomato

14, what are the major constraints which affect your tomato production?

A. Shortage of land
B. Shortage of water
C. Lack of an improved variety
13. For what purpose do you produce tomato? A. For market B. For holiday C. for wedding
ceremony D. for home consumption E. others---------------------

15. Who took to the market? A. you yourself B. hired labor C. family labor D. others

16. Do you think that there were good conditions for tomato the market?

A. Yes B. No

17. If you say yes, what are they? A. attractive price B. easy access to the market. C. market
information D. others

18. Do you face a problem in the market? A. Yes B. No

18. If you say yes, what type of problems you face? A. Cheap price of beef cattle B.
Remoteness C.lack of market information D. others__________________

19. What general things you need for further improvement of beef cattle fattening or marketing?

26
Questionnaire to be filled by tomato Trader (merchant)

1. Personal information (ALL RESPONDENTS)

Name of respondent___________________________

1.1. Address of respondent: Kebele______________, Woreda_____________________

1.2. Age A. 15-25 B. 26-45 C. 46-65 D. Above 65

1.3. Sex. A .Male B .Female

1.4. Marital status, A. Single B. Married C. Divorced

1.5. Religion, A. Orthodox B. Muslim C. Protestant D. others_________________

1.6. Educational level______________

A. illiterate B. Grade 1-4 C. Grade 5-8 D .Grade 9-12

2. What is a form of business? A. Sole proprietor ship B .Partner ship

C. Union
3. Do you have positive feeling for your tomato value chain activity?

A. Yes B. No

4. If your answer for Q 3 is not what is the reason behind?

• ________________________________________________________________________
_________________________________

27
5, what are the major marketing problems of tomato?

A. Price fluctuation

B. Perish ability of the product

C. Seasonality of the product

6, from where do you get pricing information?

A. From news letter

B. From radio

C. From internet
D. Have information

7. Do you think that the above sources of information are sufficient?

A. Yes B.No

If you how please specify ________________________

8. How can the prices of tomato affects your business activity?

A. Because it is difficult to adjust supply and demand of the product since its price is subject
to fluctuation from time to time.

B. Because the trade of other activities is also influenced by tomato price if any

C. It never affects my business activity

9. The system of your value chain exchange is

A. Equal exchange B. Unequal exchange.

10. If your answer is unequal exchange for Q9, why?

28
Specify_____________________________________________________

11. How tomato market has been impacted up on the other trade?

______________________________________________________________________________
_______

12. When you buy tomato from farmers based on what quality?

A .shape C.Size C. Color D. all

13. What so your follow to determine purchasing cost of the product?

A. Customer influence B. Central market available price

C. Competitor action D. Other, specify _______________________

14. How you are satisfied to run this business?

A. Very satisfied
B. Satisfied
C. Not satisfied to all
15. Is the trade of tomato value chain affected by the other trade of products?

A. Yes B. No

If yes how, please specify _______________________________________

16. What value chain problems you face when to buy tomato?

_______________________________ _______________

17. It is eventually observed that the tomato price fluctuated from time to time do you think that
it affects your business?

A. Yes B. No

29
18. If your answer is yes to what extent?

A. little bit Very seriously B. Serious C. Do not know

19. What is your over all comment regarding your business?

______________________________________________________________________________

. Questions for Wholesalers

1. Name of household head______________________ Sex ______ Age ___________ years.

2. Marital status of household head ________

A. Single B.Married C. Divorced D.Widows

3. Religion of the household __________

A. Orthodox B.Protestant C. Catholic D.Muslim

4. Total number of family members’ ______.

A. Blow 15 years ______ C. 31-45 years __________

B. 15-30 years________ D.46-60 year’s ____________

5. Education level of household head _

A. Illiterate C. Primary first cycle school E. Formal education .

B. Read and write D. Secondary school F. Primary second cycle school

6. What is the purchasing price .of1 boxes tomato?

7. What is the selling price of 1 boxes of tomato?

8. What is your total cost of marketing?

30
9. What is your total profit of marketing?

10. From whom you purchase? A. Producers B.Rural collectors C.Both

11. What is the total amount of tomato you purchase in boxes?

12. To whom you sell? A. Retailers B. Consumers C. Both

13. What is your total revenue of 1boxes?

14. From where do you buy?

15. Where do you sell?

16. What are your constraints of marketing?

17. What are your opportunities of marketing?

Questions for Retailers

1. Name of household head______________________ Sex ______ Age ___________ years.

2. Marital status of household head ________

A. Single B.Married C. Divorced D.Widows

3. Religion of the household __________

A. Orthodox B.ProtestantC. Catholic D.Muslim

4. Total number of family members’ ______.

A. Blow 15 years ______ C. 31-45 years.

B. 15-30 years________ D.46-60 years ____________

5. Education level of household head _

A. Illiterate C. Primary first cycle school F. Formal education .

B. Read and write D. Secondary School .

6. What is the purchasing price of 1boxes tomato?

7. What is the selling price of 1 boxesof tomato?

8. What is your total cost of marketing?

9. What is your total profit of marketing?

31
10. From whom you purchase? A. Producer B .Rural collectors C. Wholesalers

11. What is the total amount of tomato you purchase?

12. To whom you sell?

13. What is your total revenue of 1 Boxes?

14. From where did you buy?

15. Where did you sell?

16. What are your constraints of marketing?

17. What are your opportunities of marketing?

Questionnaire to be filled by consumer

1. Name of respondent___________________________

2. Address of respondent: Kebele______________, Woreda_____________________

3. Sex respondent, A. Male B. Female

4. Age of the respondent: ________

5. Marital status, A. Single B. Married C. Divorced

6. Religion, A. Orthodox B. Muslim C. Protestant D. others_________________

7. Educational status A. Illiterate B. Literate

8. If literate, level of education in grade: _________

9. Do you know about tomato production? A Yes B. No

10. Do you visit the market? A. yes B. No

11. If yes, who visit? A. yourself B. relative C. family D. friend D .others

12. How often you visit? A. weekly B. Monthly C .yearly

32
13. How much you pay for agent? __________

15. What is the purchasing price of 1KG of tomato? inBirr.

16. From whom you purchase? A. Producers B.Rural collectors C. Wholesalers

D.Retailers

17. What is the total amount you purchase? In KG

18. From where did you buy?

19. What are your constraints of purchasing?

20. What are your opportunities of purchasing?

21. Which season of the year the price of tomato is highest?

22. Which season of the year the price is lowest?

33
APPROVAL SHEET
Submitted by;
Name of students ID/no signature date
1, ADUGNA JIRATA R/0002/06 ............................ ......................
2. CHALKITU LETA R/0015/06 ............................ .......................
3. JALANE MULUGETA R/0031/06 ............................ .......................
.

Approved by;
Name of major Advisor signature date
---------------------------- --------------- --------------

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