Abstract

Chickpea is the 4th largest foreign currency earning crop of Ethiopia following coffee, sesame and haricot bean and the major cash crop grown in the study area mainly for market. This study was aimed to examine analysis of chickpea market chain in Dembia district. For analysis both primary and secondary data were employed. The primary data were collected from 150 chickpea producers and 30 traders by individual interview schedule based on two stage random sampling. Heckman two-stage model was used to identify factors affecting market participation and volume of sale of chickpea. As the result indicates, the age of household head and non-farm income have affected market participation decision and volume of sale negatively and significantly while education level of the household head, access to market information, farming experience, land allocated to chickpea and lagged market price have been influenced market participation and volume of supply of chickpea positively and significantly. Based on the findings, the government and other policy makers have to increase marketing information and ability of chickpea farmers through opportunities like mass media, extension service, and other means of capacity building. Keywords : Heckman Two-step model, Market Participation, Volume of Sale of Chickpea, and Dembia, Ethiopia. DOI: 10.7176/JMCR/66-02 Publication date: March 31 st 2020

Highlights

  • Ethiopian economy and employment are largely depending on agriculture sector

  • The age of household head and non-farm income have affected market participation decision and volume of sale negatively and significantly while education level of the household head, access to market information, farming experience, land allocated to chickpea and lagged market price have been influenced market participation and volume of supply of chickpea positively and significantly

  • The age of household head and non-farm income have affected market participation decision and volume of sale negatively and significantly while education level of the household head, access to market information, farming experience, land allocated to chickpea and lagged market price have been influenced market participation and volume of supply positively and significantly

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Summary

Introduction

Ethiopian economy and employment are largely depending on agriculture sector. This sector stimulates the overall economic development of the country (Desalegn, 2019). Chickpea is cultivated above 40 countries of the globe around 11 million ha of land from which over 8 million tons of seed is yearly harvested (Menale et al, 2010), and chickpea is widely grown in Ethiopia, Sudan, Eritrea, Kenya, Tanzania and Malawi. It contributes around 63% of the total production in Africa. With a total area of 229,720.74 ha land and the productivity of 1.85 ton per hectare (CSA, 2014; TL-III, 2016)

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