Constraints and Opportunities of Wood Production Value Chain: Evidence from Southwest Ethiopia

Authors: Abduselam Faris, Rijalu Negash, Zera Kedir

Abstract:

This study was initiated to identify constraints and opportunities of the wood production value chain in Southwest Ethiopia. About 385 wood trees growing farmers were randomly interviewed. Similarly, about 30 small-scale wood processors, 30 retailers, 15 local collectors and 5 wholesalers were purposively included in the study. The results of the study indicated that 98.96 % of the smallholder farmers that engaged in the production of wood trees which is used for wood were male-headed, with an average age of 46.88 years. The main activity that the household engaged was agriculture (crop and livestock) which accounts for about 61.56% of the sample respondents. Through value chain mapping of actors, the major value chain participant and supporting actors were identified. On average, the tree-growing farmers generated gross income of 9385.926 Ethiopian birr during the survey year. Among the critical constraints identified along the wood production value chain was limited supply of credit, poor market information dissemination, high interference of brokers, and shortage of machines, inadequate working area and electricity. The availability of forest resources is the leading opportunity in the wood production value chain. Reinforcing the linkage among wood production value chain actors, providing skill training for small-scale processors, and developing suitable policy for wood tree wise use is key recommendations forward.

Keywords: value chain analysis, wood production, southwest Ethiopia, constraints and opportunities