Abstract
Market outlet choice for small holder onion producers is mandatory, since onion crop is a perishable horticultural crop. This study was aimed at assessing determinant of market outlet choice by smallholder onion farmers in Fogera District of Ethiopia. A stratified random sampling technique was employed, to select 150 onion producers in the study area. Multivariate probit model was employed to identify the factor affecting onion market outlet choices. The result of multivariate probit model showed that literacy status, owning transport facility, livestock holding, onion yield and access to extension service significantly influenced the choice of onion market outlet. The common underlying factors of market channel choice were also identified. Based on the results, the study recommended that the government and stakeholders should focus on strengthening the existing of formal and informal education, onion production system, improving extension system, strengthening the existing rural-telecom and rural-urban infrastructure development and improving crop-livestock production. Key words: Onion, determinant, channel choice, multivariate probit model.
Highlights
Onion is one of the most important horticultural crops produced on smallholder farmers in Ethiopia
The average distance travelled to onion producers sold to the assembler market outlet was on average 2.03 km away from the nearest market while those sold for wholesalers and retailers market outlet are located on average 3.06 and 2.3 km away from home respectively
The main objective of the study is to analyze the determinant of market outlet choice by smallholder onion farmers in Fogera district
Summary
Onion is one of the most important horticultural crops produced on smallholder farmers in Ethiopia. Onions can be produced throughout the year in Ethiopia due to the mild climate and the rainy season that provide water for irrigation. The area coverage of onion increase from time to time because of it high profitable per area and availability of small scale irrigation. Onion is produced both under rain fed and irrigation. In Ethiopia, onion production under irrigation constitutes much of the area than rain fed. According to central statistics agency (2008) 453,608.8 (ha) was covered by vegetable of which onion covered a total of 15,628.44 ha.
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