Determinants of Wheat Market Outlet Choice of Cooperative Members: The Case of Hetosa District, Ethiopia

Abstract

It is assumed that, agricultural cooperatives are solving members marketing problem. However, members were not properly used cooperatives as market outlet in the study area. The specific objectives of the study were to assess wheat market outlet choices and analyze factors that determine wheat market outlet choices of members. The survey research method was used to accomplish this. The primary data were collected from 134 randomly selected respondents. The secondary data specific to the study area were collected from documents and records of agricultural cooperatives. The data was analyzed using the descriptive statistics and binary logistic regression. The analysis showed that only 23.10 % of sample respondents were selling their wheat produce through cooperatives where as 76.90 % were selling to other market outlet than cooperatives. The model showed that eight variables have a significant effect on the wheat market outlet choices of members. Those are education, dividend payment, quantity produced, access to training, access to extension service, market information, and trust on cooperatives, have a positive significant effect on wheat market outlet choices of members while mode of sell/payment system have a negative significant effect. Based on the study results, the following recommendation were given to choose cooperatives as a market outlet. Necessary training concerning the benefits of cooperatives in general and marketing in particular should be given to cooperatives by concerned body. There should be trust among members and cooperative leaders. Dividend must be paid based on the cooperative bylaws. Appropriate extension service must be given to cooperative members so as to increase the quantity of produces. In addition, providing marketing information timely is very crucial. Finally, mode of sell/payment system is advisable if it is on cash instead of paying on credit.