Fishery sector is vital for improving the livelihoods and generating income to fishermen. Fish are valuable sources of nutrients necessary for physical and cognitive development and play vital roles in maintaining a healthy diet. However, fisher’s income and food availability were challenged by postharvest physical loss. This study, therefore, aimed to identify the factors affecting postharvest physical loss in the study area. The data from 166 sample fishermen were collected and analyzed and, 7 key informants were also used to collect information that could support the data of participants. Descriptive statistics and 2SLS model were used to analyze the data. Descriptive statistics shown that, the average quantity loss was 5.99 kg per day. Additionally, other key metrics such as production unit cost and market unit price were averaged as ETB of 1.95 and ETB of 48.28 per kg, respectively. The 2SLS model output revealed that, volume of fish catched, access to market information, fisher’s education, access to extension services, owning value adding technology, membership in fisher’s cooperative, distance to the nearest market, and non/off-farm income was statistically and significantly affected postharvest physical loss. Considering the significant impact of those factors, therefore, fishermen and, governmental and non-governmental organizations should give attention and supports to reduce postharvest physical loss to improve income to fishers and food availability to consumers.

Keywords: Fishery Industry, Fishermen Livelihoods, Market Access, Education Impact, Cooperative Membership, Market Information Access, 2SLS model, Lake Hawassa