Ethiopia has huge amounts of non-timber forest products like bamboos and honey resources, but thecontribution of these resources to the national economy is very low due to underutilization. Thus, this study aims at identifying and understanding the reasons for inefficiencies in the highland bamboo and honey value chains and to identify potential leverage points for improving the performance of the chain: the case of Dawuro. Both mixed quantitative and qualitative research approaches; and cross-sectional survey were employed: A multistage sampling technique was employed to select a sample from the target sample units. Data were collected sample of 185 honey value chain actors and 132 highland bamboo value chain actors through initial desk research, key informant interviews, Focus Group Discussions, and interviews questionnaires and checklists. Both value chain and econometric analysis methods were used as analytical tools. Value chain analysis results shown that both bamboo and honey chain actors were neither vertically nor horizontally linked. Spot market transactions regime was the common marketing system in both bamboo and honey value chains. Most the existing marketing channels in study areas are to enlarged and inaccessible to move culm and honey products to market that diminishes mainly the producer’s share the trade of culm accounts 17.5% (birr 4416 or $132.48(1EBT = USD 0.03)) share of total bamboo farmer’s annual income. However, education status and training, farming experiences, farmer’s expectation on bamboo business, lack of formal market access and information dissemination, weak bamboo value chain actors linkages, lack of bamboo extension services and incentives, knowledge and skills limitations on bamboo silvicultural managements, lack of treatments of culms to increase its service life and standards were the key contributing factors of highland bamboo value chain development at farm stage. Honey trade was accounts 28% (birr 28840 or $865.20) of household’s gross annual income. On the other hand, the education status, selling price of honey, distance to the nearest market, access to honey extension service, honey farming experiences, the total number of modern hives owned by producer affects the quantity of honey supply to the market at p < 0.00 significance levels. The short and well-liked marketing channels should be established to enhance the reasonable benefit distribution of chain actors. To increase chain performance of both bamboo and honey value chains, product and process upgrading strategies, common objectives, extension and training should be designed and delivered continuously by honey and bamboo chain support providers.
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