Determinants of Members’ Output Marketing through their Multipurpose Primary Cooperatives in Hababo Guduru Wereda, Ethiopia

Abstract

In developing counties Multipurpose primary cooperatives are an ideal means for self-reliance, higher productivity level and promotion of agricultural development. Hence, this study aims to identify the factors affecting members’ marketing decisions through their multipurpose primary cooperatives in Hababo Guduru woreda, Oromia Regional State, Ethiopia. Both primary and secondary data were used for this study. A two stage random sampling procedure was adopted to select four multipurpose cooperatives and a total of 193 sample respondents from the Woreda. Primary data pertaining to the years2017/18 and 2018/2019 was collected from the sampled respondents through semi structured questionnaire. The survey data was analyzed using descriptive statistics and double-hurdle model. About 52.3% and 47.7% of sample cooperative members were users and non-users of cooperatives as marketing agent. Results of the model analysis showed that in the first hurdle, educational status, access to credit, patronage refund, cooperatives price and position in cooperative management committees are played positive and significant role in members’ decision to participate in output marketing through cooperative. In the second hurdle; educational status, farm land size, yield obtained, patronage refund, and farming experience have positive and significant role in the volume of farm product sold through cooperative; while family size, and distance of cooperative from cooperative members residences were found to have negative and significant role. Educational status and patronage refund were found to affect both ‘decisions to participate and intensity of participation in farm product marketing through their primary multipurpose cooperative.