This study was carried out to assess the structure, conduct and performance of Sheno butter
market in Kimbibit District. The study took a random sample of 128 butter producer
households and 31 butter traders using multi-stage sampling procedure and employing a
probability proportional to sample size sampling technique. Both primary and secondary data
were used for the study. Descriptive and test statistics were computed to describe
demographic, socioeconomic and institutional characteristics and livelihoods of sample
households and traders. Following the market structure criteria of concentration ratio (CR),
Sheno butter market showed competitive nature in the Aso, Sheno and Addis Ababa
market with CR of 18.44%, 22% and 32.41%, respectively. The maximum total gross
marketing margin in the chain was 42.71% and Producer’s share of the consumer’s price was
found to be highest along producers – consumers’ market channel (channel I).