Abstract
This study was aimed to identifying the major market channels, and examining the market structure and performance of vegetable market in Habru district, North Wollo Zone, Ethiopia. Both primary and secondary data were used for the study. Multi stage random sample techniques used to select 147 vegetable producer households and purposive sampling of 53 vegetable traders were used to generate the primary data. The structure and performance analysis result indicated that four firm’s concentration ratios (CR4) of onion and tomato traders in both Mersa and Woldia market indicates strongly oligopolistic vegetable market. Lack of capital is reported as the main barrier to entry particularly for collectors and wholesalers. Five different vegetable marketing channels are identified. Producers gross marketing margin is largest when they directly sell to consumers followed by when supplied directly to wholesaler and lowest when they supply through collectors. The study recommends the need to Enhance competition through promoting entrepreneur entry, facilitate farmers’ cooperative for collective marketing, and buildup producers bargaining power through market-oriented extension service. Keywords : Concentration ratio, Market performance, Margin DOI: 10.7176/JMCR/66-01 Publication date: March 31 st 2020
Highlights
Ethiopia is one of the countries in Africa, which have huge potential for the development of different varieties of horticultural crops (EHDA, 2012)
The country has favorable conditions for growing a wide range of fruits, vegetables, flowers and spices given the existence of diverse agro-climatic zones, long growing seasons, and availability of water for irrigation, including 122 billion cubic meters of surface water and 2.6 billion cubic meters of ground water
In 2016/17 Meher season, about 468, 689.1 hectares of land is under vegetable and root crops with a total production of about 54.4 million Qt in Ethiopia
Summary
Ethiopia is one of the countries in Africa, which have huge potential for the development of different varieties of horticultural crops (EHDA, 2012). Amhara region has ideal opportunities for horticultural industry development including abundant surface and ground water potentials, cheap labor force and increasing demand for horticultural produces both in the domestic and international markets (ANRS BoA, 2015). In 2016/17 Meher season, about 468, 689.1 hectares of land is under vegetable and root crops with a total production of about 54.4 million Qt in Ethiopia. Fruit and vegetable production covered about 0.13% and 3.29% of the total area covered by cereal crops in Amhara region, respectively. The production of vegetable including root crops in North Wollo zone for 2016/17 meher season was 315,719.88Qt which produced by 234,435 smallholder farmers in 3,787.74 hectares (CSA, 2017)
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