Abstract
Determinants of Wheat Market Supply in Sinana District
Highlights
Agriculture plays a leading role in the Ethiopia’s overall economic development
It accounts for about 45 percent of the Gross Domestic Product (GDP), employs more than 85 percent of the total population that is directly or indirectly engaged in agriculture, generates about 80 percent of the foreign exchange earnings of the country, and provides raw materials for 70% of the industries in the country
In Ethiopia, cereal production and marketing are the means of livelihood for millions of small holder households and it constitutes the single largest sub-sector in economy
Summary
The government considers agriculture as the pillar of the economy that provides the population with employment, foreign exchange earnings, source of raw materials for industry and source of food for the population and believes it determine the pace and direction of industrial development through financing the industrial sector and generating effective demand for industrial outputs. The lack of market participation that many agricultural households face is considered to be a major constraint to combating poverty (Best et al, 2005). This shows that an efficient, integrated and responsive market that is marked with good performance is of crucial importance for optimal allocation of resources and stimulating households to increase output (FAO, 2003). Unless farm households adjust to rapidly changing markets which are characterized by quality and food safety, vertical integration, standards and product traceability, reliability of supply, there will be a risk of competitiveness and inefficiency for the entire value chain (Vermeulen et al, 2008)
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