Abstract
In Ethiopia, specifically in Dendi district tef is cash crop for majority of the smallholder farmers. and the supply of tef in the study area still can’t satisfy the existing market demand and the farmers are not benefited from the market price. This study was aimed at analyzing the factors affecting market outlet choices of tef producers in Dendi district. The study largely uses primary data that were collected through structured and semi-structured questionnaire. Both descriptive statistics and econometric models were used. Multivariate probit model was used to identify the determinants market outlet choices. From descriptive statistics result six tef marketing channels are identified in the district. The multivariate probit model result indicated that educational level of household head, household size, livestock owned, equines owned, land area under tef, distance to the nearest market and current market prices of tef significantly influenced tef producers’ choice of alternative market outlets. The probability of choosing wholesalers, consumers, collectors and cooperatives outlets are 64.4%, 41.6%, 39.1% and 51.1%, respectively. Wholesalers is the most likely chosen market outlet while collectors are the less likely chosen market outlet. The joint probabilities of the households to jointly choose the four market outlets was 4.1% which is lower than the likely of not choosing all market outlets which is 5.2%. Therefore, strategies aiming at promoting tef producers’ marketing and outlet choices should focus on strengthening the technical skills, resource base, infrastructural and institutional capacity of smallholder farmers.
Highlights
IntroductionSince the majority of population in developing countries like Ethiopia is agrarian and the agriculture sector is the main source of their livelihoods, participation of these households in agricultural markets is anticipated to positively affect their wellbeing
The study was aimed at identifying determinants of market outlet choices of tef producers in Dendi district of Oromia region, Central Ethiopia
The study was conducted with the specific objectives of identifying tef marketing channels and factors affecting market outlet choices of tef producers in the study area
Summary
Since the majority of population in developing countries like Ethiopia is agrarian and the agriculture sector is the main source of their livelihoods, participation of these households in agricultural markets is anticipated to positively affect their wellbeing. In Ethiopia the agricultural sector contributes 36.7% of overall GDP and 70% of foreign exchange earnings. The sector provides employment for 72.7% of the population and is a means of livelihoods for about 83% of the rural population [1, 2]. Cereals cover about 80% of the total grain crop area (9.97 million hectares) and contribute about 87% (23.1 million tons) of the grain production. Tef (Eragrostis tef) stands first in terms of land area, followed by maize and wheat [3]
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