Potato (Solanum tuberosum L.) is the fourth most important food crop next to rice, wheat, and maize, and has a great contribution to food and nutrition security in the world . In Sub-Sahara Africa, potato is a steadily growing demand a trend that is expected to continue . It is a crop that can be used to improve food security and cash income in Ethiopia due to its high yield per unit area, presence of suitable agroecological zones within the country, the availability of labor for its production on large areas of land, economic development from small areas and the accessibility of a potential market with considerable added value for its produce . During 2015/16 cropping season land coverage of potato was 70131.32 ha, 22793.57 ha and 3088.48 ha in Ethiopia, Amhara region and Awi zone respectively . According to FAO , In Ethiopia area under potato cultivation was about 51,698 ha in 2005/6 cropping season that produced 509,716 tons of tuber yields while, in 2014/2015, area under potato crop has increased to 67,362 ha and its total production was 921,832 tones. However, the national productivity is 13.7 t ha−1 in the production years of 2014/2015  which is still far less than that of other countries. Many factors that contribute to the low yield of potato are; drought [6, 7]), frost, hail, pests , poor production practices and limited access to high quality seed [9, 10].
Genotypic variation and relatively short vegetative period allows farmers to find an appropriate season for its cultivation under a wide range of weather patterns and less predictable climates. Ethiopian potato research, system has released 31 new potato varieties to address some of these production problems  but in Awi zone there is a limitation of high yielding, pest resistant and high nutritional quality improved varieties. Ethiopia’s tremendous variation in altitude, temperature, rainfall, soil type, and ecological settings gives rise to the need for a wide range of varieties, which are not likely to be provided by existing breeding programs .
According to EARO , Love and [14 & 15] the declining of potato productivity is poor agronomic practices for instance; use of low fertilizers inputs, inappropriate planting depth, poor earthing up, and poor management of cropping system.
The other causes for the reduction of production and productivity of potato are biotic constraints, such as pests (diseases, insect pests and weeds) are the major constraint for potato production. According to  bacterial wilt, potato late blight, aphids and tuber moth are the major pests of potato, in addition to disease and insect pests weed has also cause of heavy yield loss in the major crops with an average of 25-32% .
Production is the key activity in agricultural value chain. The value chain network functioning around smallholder farmers comprises linkage among input suppliers, farmers, co-operatives, extension service providers, credit service providers, and traders. Farmers face a series of challenges that limit their overall production and income . Furthermore, despite the potential from potato farming and significant gap on productivity and marketing of potato in Ethiopia, an increase production does not necessarily have to lead to an increase in marketable surplus. An interesting issue in this regard is what factors determine the farmers to participate in the potato market. In general, there is inadequate research works done on value chain analysis of potato in Ethiopia in general and the study area in particular. Hence, this study is motivated to identify value chain actors, their roles and their value addition, to identify factors affecting the level of production and analyze determinants of small-scale farmer’s participation decisions and level of participation in potato market.