Market Chain Analysis Of Bee Honey: The Case Of Awabel Woreda In East Gojjam Zone, Amhara National Regional State, Ethiopia

The study was conducted at Awabel Woreda to analyze the market chain performance of bee honey. The area is known for its production of honey. However, market chain of honey is not well understood. The study has focused on market participants, the structure, conduct and performance of honey markets. The research design used for this study was cross sectional survey type. The data were generated by structured questionnaire, focus group discussions, and key informant interviews. This was supported by secondary data collected from NGO’S, bureau of agriculture and rural development, woreda trade and industry office, CSA, websites, articles, research works and review of related literatures. Producers, Collectors, Retailers, Processors and consumers were the main actors in honey market chain. Quantity of honey passed through different marketing actors from farmers to consumers. The Producers- Consumers channel carried the largest volume, which is 38.1% of the total volume followed by Producers-Collectors-Processors-Consumers channel which carried about 21.9% of the total volume of honey transacted. Structure of honey market indicates four-firm Concentration Ratio (CR4), that is, the share of the largest four traders in the total volume of honey purchased. The four largest traders handled 38.4% of the total volume of purchased honey. This suggested that the honey market in Awabel Woreda shows a weak oligopoly market structure. In relation to the conduct of honey market, pricing mechanism of the traders indicated that 57.4% of traders and 8% of producers set their selling price. Cheating was very common in honey marketing by manipulating weighing scale. Regarding payment strategy, about 100% of sample producers sold their product on cash bases. Traders took a total of 9% out of the total profit margin. The Total Gross Marketing Margin is highest in Producers- Collectors- Processors- Consumers (30.32%) followed by Producers-Retailers –Processors- Consumers (16%). Therefore, the development of honey producers’ bargaining power through cooperatives is the best measure that should target at reducing the oligopolistic market structure and increases honey production in the Woreda.