VALUE CHAIN ANALYSIS OF RURAL POULTRY: - THE CASE OF LANFURO DISTRICT, SILTIE ZONE, CENTERAL ETHIOPIA REGION.

ABSTRACT This study was initiated to analyze the value chain of rural poultry and estimate the determinants of market participation decision and supply of poultry in lanfuro district, Siltie zone central Ethiopia region. Data were collected using household and market survey, focus group discussions, key informant interviews and observations. A total of 170 sample producers, 24 collectors, 24 hotels/egg shops, 30 traders and 36 sample consumers were interviewed, and the data was analyzed using descriptive statistics and econometric analysis. map of poultry value chain in egg 6 marketing channel were producers, collectors, retailers, traders, shops and consumers and also chicken 4 markets channel were producers, retailers, wholesalers and consumers were identified. There is no significant involvement of brokers in both egg and chicken marketing and also processed poultry meat in the market not well characterized. Results obtained from the Probit and Heckman two-stage model were estimated the determinants factor of chicken and egg marketing participation-decision and value of chicken sales that indicated distance from poultry farm to home of producers, frequency of extension contact, household head poultry farm experience, sex of household head, household head poultry farm experience, family size and access to off farm activities significantly influenced the supply and market participation decision of poultry producers. Poultry market was constrained by seasonal price change, seasonal demand, limited market access, limited market surplus, limited market information and Flock mortality. On other hand the opportunities of the market was lack of entry and exit barrier, less initial capital requirement, high profit margin, high demand, involvement of private multiplication sites, availability of local materials and government involvement in the subsector. Therefore, policies and interventions that aimed to address production and marketing problems, promote access to business support services and poultry cooperative expansions, improve the link between producer and markets, focus on determinants of poultry market participation and supply are recommended for better return and chain development.