This study, was initiated to analyze market chain of red pepper in Boke Woreda. Data for the study were collected from both primary and secondary sources. The primary data were collected by household survey using a pre-tested structured questionnaire from 313 farmers, 20 traders and 25 consumers. Descriptive as well as econometric analyses were used to analyze the data. Six market channels were identified in red pepper marketing. The estimated market concentration ratio for red pepper traders (51.94) shows that red pepper transaction is operating under oligopoly market structure. This study suggest that the need to strengthen the linkage among market chain actors, enhancing the bargaining power of red pepper producers and reducing the level of oligopolistic nature, improving the production and volume sales of red pepper, and expanding the accessibility of rural infrastructure. Therefore, based on the findings of the study policy interventions need to be made to increase the capacity through training, farm experience, intensive use of the existing land, providing adult education opportunity program, enhance the production of red pepper, road infrastructure development, providing credit access, invest on on/none farm income and manage livestock.

Keywords: Boke; Market chain analysis; Market chain; Marketing margin; red pepper; Market structure; conduct; performance.