Abstract
This research aimed at assessing the market chain of banana, avocado and mango fruits in Bench Maji zone. Both primary and secondary data were collected from 2 purposively selected fruits producing districts namely North Bench and South Bench districts. Primary data were collected through semi-structured questionnaire and focus group discussion. A total of 150 households were selected by using systematic random sampling technique. In addition, 40 traders were selected by using simple random sampling technique. Market structure – conduct – performance analysis model was used to assess the performance of the fruits market. The result revealed that the participants in the fruits market were identified as primary actors and secondary actors. Primary actors in the fruits market chain were producers, brokers/ agents, farmer traders, collectors, and wholesalers. Whereas, local tax authority, local police, transporters, and district Trade and Industry office were identified as secondary actors. Fruits market in the area was characterized by non-competitive nature with concentration ratio ranging from 42 to 91.10% indicating the existence of oligopoly market structure. Entrance and exit in the fruits market was blocked by licensing and access to channel. A channel that links producers to local wholesalers through brokers was more efficient in terms of large volumes of sales. However, performance of the fruits market was affected by seasonality, the existence of few big traders, limited access to information, absence of organized market center and brokers’ interference. Therefore, attention has to be given to alleviate the problems so as to improve the performance of the fruits market.
Highlights
1.1 Background and JustificationTrade in fruit and vegetable products in Ethiopia has been attractive in the face of highly volatile or declining long-term trends in prices for many traditional export products (NBE, 2013)
Local tax authority, local police, transporters, and district Trade and Industry office were identified as secondary actors
The result of this study revealed that different market actors were involved in the fruits market chain
Summary
Trade in fruit and vegetable products in Ethiopia has been attractive in the face of highly volatile or declining long-term trends in prices for many traditional export products (NBE, 2013). Given the declining export earnings from traditional exports of coffee, horticulture products like fruits and vegetables are one of the main possible sources of foreign exchange for the country (World Bank, 2004). There is good opportunity for small scale growers to increase the exports of fresh fruits and vegetables to the neighboring countries such as Djibouti, Sudan and Somalia (NBE, 2013). Fruit and vegetables are a priority sector for the government of Ethiopia, which aims to increase production by 47% between 2015 and 2020 (GTPII, 2015). The growing demand for fruits can only be satisfied if there is an efficient market that can create better incentive for the producers. Without having efficient and well-functioning market, the possible increment in output, incomes, and ijms.ccsenet.org
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