ABSTRACT This study titled Marketing Value Chain of Cotton that was conducted at Magu district. The main objective of the study was to analyze and evaluate the performance of cotton marketing chain and to investigate factors that affect the marketable supply of cotton. The study was guided by four specific objectives; to identify factors affecting the supply of cotton at farm level, to identify cotton marketing chains, to assess cotton marketing cost and profit margins for key marketing channels and identification of constraints and opportunities in cotton production and marketing. The research adopts the formula from Raosoft.com to obtain a sample size of 268 respondents from the total population of seed cotton farmers of approximately 23,000 at Magu district. The survey includes two ginneries and the available seed cotton buyers at Magu district. Primary and secondary data were obtained from the survey; both descriptive and analytical techniques were used to analyze them. In this study, factors affecting farm level marketable supply of cotton were analyzed using regression analysis. The results obtained from this analysis indicate that access to credit for cotton cultivation, land allocated to cotton cultivation by farmers, productivity of cotton in previous seasons, access to cotton extension services, experience in cotton production and transportation of cotton to the market significantly affect the farm level marketable supply. The marketing value chain of cotton was identified during the survey and its performance was analyzed using marketing margins supplemented with analysis of cost incurred and gross profits generated for different market chain actors. The analysis showed moderate performance of the chain and the major constraints and opportunities in cotton production and marketing were discussed.