Ethiopia is a developing country situated on Africa’s horn. Ethiopia ranks 173rd on United Nations human development index where the least developed country ranks 186. About 85% of all Ethiopians are employed in agriculture. Onion is one of the basic ingredients in the Ethiopian cuisine and thus an important crop. Previous studies on fruits and vegetables in Ethiopia points at post-harvest losses between 15% and 70%. To estimate the losses for onions in Ethiopia a supply and value chain analysis has been made. A literature review on supply chain management, value chain analysis, onion cultivation, and agricultural and logistical conditions in Ethiopia has been made in order to acquire a holistic view of the topic. Interviews with aid from interpreters have been made to gather the necessary information from the chain actors. The chain actors have been identified and the losses at each level of the chain quantified and analyzed. The value chain for onions in Ethiopia has been researched to identify the different actors and their activities carried out when the onions move from producer to consumer. All expenses related to the activities in each step has been studied to find the value added and to calculate the profit for each actor. The complete chain consists of six actors; farmer, broker, transporter, wholesaler, retailer and consumer. The onions can reach the end-consumer without passing through all steps; broker, transporter and retailer are not always involved.

The conclusions from the supply chain analysis were: - The total amount of losses in the chain is about 13% and most of these losses occur at the end of the chain at consumer level. - The supply chain of onions is fragmented and thus not an integrated logistic system. - The fragmentation of the chain causes a non-collaborative system, which in turn results in higher losses at the end of the chain.

The conclusions of the value chain analysis were: - The use of fertilizers and pesticides has a major impact in the value chain but differs widely between the farmers. A more controlled and effective use can have positive effect on both the economy and the environment for the farmer. - The actor making the biggest profit is the wholesaler. The farmers have a higher profit per kg of onions, but the fact that they only get three harvests per year makes the annual profit low. The wholesalers have (by far) the highest sale rate and the second highest profit per kg. - The wholesalers are not following the tax-regulations. None of the wholesalers include 15% VAT as a standard procedure, which they should. VAT is only added when the customers want a receipt. Only three of the nine wholesalers pay tax on their profit. - Wastes from onion production at farmer level can be used to produce electricity corresponding to 5.7% of the total electricity consumption in Meki and Ziway.