This study tried to analyze the market chains of onion in North Gondar zone with the specific objectives of investigating marketing costs and margins, market participants and their roles. Attempts were also made to identify factors affecting the supply of onion in North Gondar Zone. Structure Conduct Performance approach was used to examine marketing costs and margins, market participants, their roles, and linkages. In addition, the Multiple Linear Regression Model was employed to see factors that determine the supply of onion. Results of the study have shown that the productivity as well as post-harvest management was by far poor. However, farmers sold a large amount of onion out of which the wholesalers, retailers, customers and Kebeles collectors respectively bought 50.18%, 27.88%, 13.94%and 8% in 2015. Sample markets were inefficient it characterized by oligopolistic market structure. The findings of this research have also suggested that developing farmersâ€™ ability to produce and negotiate via cooperatives is best way of improving the market structure. The structure of markets has also shown that capital is a key barrier to entry. However, license was not barrier to entry. Moreover, the study has evaluated the main factors affecting the supply of onion based on the Multiple Linear Regression Model. Thus, the econometric model has identified price per quintal of onion to be the most important variable affecting (positively) the supply of onion. As a result, the findings of this work have suggested Government, NGOs and other stockholders can play a vital role in addressing the problem of price variation. Further, income from the sale of onion significantly and positively affected the volume of onion sold. Thus, much more should be done so as to improve the producersâ€™ share in the market.
Keywords: Chain Analysis, Market, Onion, Vegetable