Hot pepper is an economically and culturally important crop in Ethiopia; however, its productivity and market performance remain constrained by agronomic, institutional, and marketing challenges. This study analyzed the production systems, market structure, profitability, and major constraints of hot pepper in the West and Kellem Wollega Zones of Oromia. A multistage sampling technique was used to select 140 smallholder producers, while 35 traders were selected through purposive and snowball sampling to represent key market actors. Primary data were collected using semi‐structured questionnaires, supported by focus group discussions, key informant interviews, and secondary sources. Descriptive statistics and value‐chain performance indicators, including marketing and profit margins, were employed to analyze the data. The results indicate that a large proportion of hot pepper production was marketed, contributing positively to household income. However, producers faced weak bargaining power, limited value‐addition practices, and trader‐dominated price setting. The value chain is characterized by assemblers, wholesalers, and retailers, with assemblers capturing relatively higher profit margins due to lower transaction costs. Major constraints affecting production and marketing include recurrent diseases, high fertilizer prices, seed shortages, theft, and price volatility. The study concludes that strengthening farmer cooperatives, improving disease management, and enhancing market linkages and value‐addition practices are critical for improving profitability and efficiency in the hot pepper value chain, and require targeted policy and institutional support.
Tasfa et al. (Thu,) studied this question.