Value Chain Analysis of Potato: The Case of Sheka Zone, Southwest Ethiopia

The study was undertaken with the objective of identifying potato value chain actors, assessing profitability of actors, marketing margin and extent of value addition in the study area. Information was gathered from 193 potato producers, 7local traders, 7 wholesalers, and 8 retailers. The survey result indicated that 27.94% of total farmland was allocated for potato production. The average yield of Potato in Sheka was 108qt/ ha. The major potato value chain actors were input suppliers, producers, commission agents, local traders, wholesalers, retailers and consumers. Potato producers in Masha district added 10.537%, Local traders were responsible for 25.603 % of value addition while wholesalers and Retailers add about 29.89 and 33.39 % of the value respectively. Creating sustainable value chain development by accessing new market centers and organizing cooperatives was vital for value chain producers in the study area. Key words: Marketing Margin; Profitability; Value Chain; Value Chain map; Value Addition