This study aims at Factors Affecting Decision to Participate in Beef Cattle Fattening and Quantity Supplied of Beef Cattle to Market: Case of Degga woreda, Bunno Bedele zone in Southwest Ethiopia. With the Specific objectives to identify the factors affecting decision to participate in beef cattle fattening and quantity supplied of beef cattle to market. Both primary and secondary data were used. Primary data was collected from randomly selected 118 producerâ€™s household heads, 7 butcheries, 13 hotel and restaurant owners, 2 smaller traders and 6 larger traders. Secondary data was collected form related studies and district administration and Livestock Resource and Fishery Development offices. Data was analysized using inferential statistics, Heckman two-stage selectivity model, SPSS 22 and STATA 13software were used for data analyzing. The Heckmanâ€™s two step sample selection model result shows that participation decision in beef cattle fattening being significantly and negatively affected by family size, distance from farmland to provide feed and total size of farmland owned and positively affected by level of education the sample household head attained, grazing land, access to credit service, non farm income and total cattle owned. Moreover, the beef cattle supply has affected negatively by householdâ€™s income (from Crop production), distance to veterinary clinic centre and walking hour to nearest market. While frequency of extension service, householdâ€™s income (from beef cattle selling), adding value on beef cattle and total size of farmland owned have affected positively. Therefore, policy aiming at increasing access to credit service, veterinary service, level of household education, developing and improving infrastructure, intensive land use, product upgrading by farmers, investment in abattoirs and beef cooling, strong beef cattle value chain relationship between and among the various actors in the value chain are crucial, and cooperative development are recommended to accelerate the chainâ€™s development.
Keywords: Value Chain Analysis, Beef cattle, Actors, Heckman two Stage Model.