Title : Market Chain Analysis of onion: The Case of Raya Azebo District, Southern Tigray, and Ethiopia.
In Ethiopia onion production is increasing from time to time mainly due to its high profitability per unit area. Onion has significant contribution in generating cash income for farmers in Raya Azebo district. Therefore, enhancing onion producer’s access to market and improving market linkage is an essential issue. Hence, this study was aimed to analyzing structure-conduct-performance of onion market and identifying factors affecting market supply of onion of onion producers. Data were collected from both primary and secondary sources. Primary data were collected from 150 farm households and 20 traders.. Four onion marketing channels were identified in the study area. The highest total gross margin is 27.6 in channel IV. The highest gross marketing margin of producers of onion market is 88% in channel II. Result from analysis of market concentration indicated that onion market characterized by strong oligopolistic market structure with the buyers’ concentration ratio of 88.7 in Maichew town and 82.7 in Mekelle town. Lack of capital, licensing problem and seasonal supply were identified as the major entry barrier to onion marketing. Market conduct shows that the price of onion is set by traders while producers are price taker. Multiple linear regression model result indicated that family size in adult equivalent, irrigated land size, access to information, frequency of extension contact and ownership of transport were significantly determined quantity of onion supplied to the market. It is recommended that, strengthen and diversifying extension service in information, marketing, post-harvest handling, irrigation application and water harvest technology is highly important.