Abstract
BackgroundSelecting the appropriate channels to deliver farm products is not an easy task because there are various factors that affect producers to select such relevant channels. Hence, the study was aimed to investigate the factors that influence market channel choices among wheat producers in Northwestern Ethiopia.MethodsUsing multistage sampling technique, 163 smallholder wheat producers were selected to collect primary data through semi-structures questionnaires. Combinations of data analysis methods such as descriptive statistics and econometrics model (multivariate probit model) were used.Result and conclusionThe study identified four major wheat market channel choices such as retailers, assemblers, consumers and wholesalers as alternatives to wheat producers to sell majority of their products. Thus, retailers who accounted for 40.49% of total sold, assemblers (39.2%), consumers (37.5%) and wholesalers (23.93%). The results of a multivariate probit model indicated that age of household, education status, credit access; livestock number, off-farm income and total land-holding size of farmers significantly affected the market channel choice decisions in one or another way. Therefore, strengthening institutions to deliver timely and appropriate credit service and training to a farmer is among the major recommendations from this study.
Highlights
Selecting the appropriate channels to deliver farm products is not an easy task because there are various factors that affect producers to select such relevant channels
The study was conducted in northwestern Ethiopia with the objective of identifying factors that affect market outlet choice decision of wheat producers
In order to undertake this research, combinations of quantitative and qualitative date were collected from 163 wheat producers and analyzed using the descriptive and multivariate probit models
Summary
Selecting the appropriate channels to deliver farm products is not an easy task because there are various factors that affect producers to select such relevant channels. The study was aimed to investigate the factors that influence market channel choices among wheat producers in Northwestern Ethiopia. In Ethiopia, wheat is the main cereal crop produced for consumption and marketing purpose and ranking fourth next to maize, sorghum and teff by constitute 13.25% (1.63 million ha) from total cereal production [9]. According to [12], Ethiopia is the second largest wheat producer country in Africa, next to Egypt on 2015/2016 production season (Fig. 1). Wheat is the most vital crop in Ethiopia, ranking fourth in total cereals production (16%) next to maize, sorghum and teff [9].
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