Determinants of Wheat Market Outlet Choice of Smallholder Farmers: The Case of Dembecha District, Amhara National Regional State, Ethiopia

Yonnas Addis

doi:10.7176/jpid/50-02

Abstract

Wheat is one of the major cereal crops produced in Ethiopia and used as food and source of cash for farm households. This study aimed identifying factors affecting market outlet choice of wheat farmers in Dembecha district of Ethiopia. A total of 130 farm households were used to collect primary data. About 48.5%, 62.3%, 71.5% and 51.2% of respondents had chosen wholesalers, collectors, cooperatives, and consumers outlets, respectively. The multivariate probit model used revealed the choice of wholesale’s outlet positively affected by educational level and quantity supplied; and negatively by family size and cooperative membership. The choice of collectors’ outlet is negatively affected by educational level and positively by quantity supplied; while choice of cooperative outlet is positively affected by extension contact and membership in cooperatives. Similarly, the choice of consumer outlet is positively affected by educational level, farming experience and extension service. It is, therefore, important to strengthen extension service, efficiently using resources, promoting cooperatives membership and farmers experience to assist farmers producing more and choose a more rewarding market outlet. Keywords: Market outlet choices, Multivariate probit, Smallholder, Wheat DOI : 10.7176/JPID/50-02 Publication date :June 30 th 2019

Highlights

Wheat (Triticum aestivum.) is the first important and strategic cereal crop for the majority of world’s populations
Wheat is one of the major cereal crops produced in Ethiopia and used as food and source of cash for farm households
The choice of collectors’ outlet is negatively affected by educational level and positively by quantity supplied; while choice of cooperative outlet is positively affected by extension contact and membership in cooperatives

Summary

Introduction

Wheat (Triticum aestivum.) is the first important and strategic cereal crop for the majority of world’s populations It plays an important role in the development of the agricultural sector and improvement in the income levels and livelihood situations of the farmers in developing countries. In Ethiopia, wheat is produced on 1,696,082 hectares with an average national yield of 26.75 quintals per hectares in the main cropping season and shown 1.89 percent increment in total from 2015/16 production season. It is mostly grown in the highland and mid highland areas of the country like South East, Central and North West parts. Among nine regions of the country Oromia, Amhara and Southern Nations, Nationalities, and Peoples Region (SNNPR) produces 59%, 27% and 9% of the country’s total wheat production, respectively (USAID, 2016)

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