Seba, Samuel TigistuWilson, MarkBicknell, KathrynRadics, RobertChowdhury, MesbahuddinKoushan, MonaMollenkopf, Diane2024-12-112024-12-112024-10-239780473725631https://hdl.handle.net/10182/17911Ensuring availability and affordability are the most critical and pertinent requirements for Fresh Value chains (FVCs) to ensure food and nutritional security. On the other hand, securing adequate income is critical to ensuring economic development. However, studies indicate that FVCs in developing countries perform poorly, with persistent shortfalls in the availability of affordable fresh produce and very low incomes for producers and other actors. Literature suggests that the poor performance of FVCs in Ethiopia could result from a lack of investment by actors across all stages of the chains. A thorough literature review has identified four theories that can explain the apparent lack of investments in FVCs in developing countries. New Institutional Economics (NIE) theory asserts that the nature of transactions and characteristics of actors and exogenous changes in the general economy create uncertainty that brings about high transaction costs and inefficient institutions, leading to the likelihood of opportunism, lack of investment, and Pareto-suboptimal efficiency. Agency theory asserts that agents' opportunistic behaviours arise from information asymmetry and goal incongruence when two actors are required to collaborate in an economic system through transactions. These result in high levels of unmitigated state, effect and response uncertainty and the likelihood of opportunism, disincentivising investments in these mostly arm's length relationships. Post- Keynesian investment theory asserts that the availability and cost of different forms of finance (profit and credit) affect the level of investments. Systems Theory asserts that shortages of different types of capital are potential constraints to producing and marketing fresh produce in developing countries, implying the role of investments. This article presents empirical findings on the current performance of the Avocado Value Chain (AVC) in Ethiopia. It attempts to identify the underlying factors for the ongoing lack of investments by utilising a framework developed from the above mentioned theories. The research utilised the critical realist approach, Systems Dynamics Modelling (SDM) methodology, and a four-tiered research process to achieve the overall research objectives. The data was collected using the four tiers: an extensive literature review, direct observation of all value chain activities, in-depth interviews with more than 65 actors and stakeholders, and participatory Group Model Building (GMB) workshops. Data gathered were used to describe the attributes of each actor, their interactions, the structure of relationships, the transactions, the business environment they operate in and the resulting severe lack of investment in the AVC manifested through each actor's modus=operandi and the poor performance that follows.pp.71-72, 2 pagesCalamities of Fresh Value Chains in developing economies: The case of the avocado value chain in EthiopiaConference Contribution - published