This value chain analysis and assessment research study has been carried out to identify the main
casts and their key activities in the product flow of groundnut commodity. In Ethiopia about 40,000
ha of arable land is covered by groundnut per annum and about 70,000 tons of yields have been
harvested, but the national average yield was nearly 0.8 ton/ha, still its productivity was very low.
Metekel zone is one of the most groundnut growing areas in Ethiopia. In Metekel zone, the main
groundnut value chain players/actors were producers (farmers and investors), traders/grain
merchants, unions, truck owners, drivers and input suppliers. Service providers of groundnut value
chains were Research Centers, Bureau of Agriculture (BoA), Commercial Bank of Ethiopia (CBE),
Nongovernmental organizations (NGO’s), Unions, Rural saving and credit institutes and other
governmental offices. This field research work has been conducted by arranged one-day focus
group discussion (FGD) program venue at Pawe town. The FGD program has been comprised
fifteen stakeholders brought together from three districts in Metekel zone. Before, the focus group
discussion program we have interviewed respected respondents from four rural districts; Pawe,
Dangure, Mandura and Dibatie by prepared checklists to assess the capacity of local organizations
and the roles of groundnut value chain actors at producers and traders level. In our assessment
study, results revealed that in Metekel zone 2011, 2012 and 2013 main cropping season 243.805,
308.765 and 458.640tons of groundnut yield was harvested respectively, among those products
more than 76% was produced for market to get cash. The major challenges of groundnut value
chain in our study areas; were productivity declining, high amount of rainfall or weather fluctuation,
high weed, diseases and insect pest infestation, unavailability of production and post-harvest
technologies, price slump down or market inconsistency, lack of infrastructures and so on. During
our assessment study, the linkage of groundnut value chain actors was not well organized even the
products flow only in one dimension without supporting forces.