This article investigated the structure conduct and performance of potato market in Machakel District using survey data for 2016/17.. Primary data was collected from randomly selected 150 potato producers and 30 traders. Concentration ratio and gross margin were used for this analysis. Machakel District potato market showed highly oligopolistic nature with concentration ratio of 87.16% which was dominated by four traders including dairy cooperative union and three processing plants. The maximum total gross marketing margin in the channels was about 54.55% and the highest producersâ€™ share of consumersâ€™ price was along producerâ€™s consumersâ€™ market channel in channel VI. Therefore, the study recommends that promoting potentially collective organizations (groups of traders) which plays important role in reducing the level of oligopolistic nature of market should be in place. This should be coupled by strategies that improve competitiveness and efficiency of potato market.
Keywords: Concentration ration, Market channel, Gross market margin and Market structure.