Push and pull factors of red pepper (capsicum) market supply: Evidence from south western Ethiopia

Abstract

The growth and development of the spices sector depend upon market-oriented production system and good marketing infrastructure. However, for smallholder farmers, it is difficult to supply theirs produces to markets because of different problems and barriers. Therefore, this study was aimed at analyzing the push and pulls factors of red pepper market supply in Southwest Ethiopia. The primary data were collected from 267 randomly selected sample households’. The Tobit model was used to determine the volume of red pepper supplied to the market. The results shows that the education level of household head, land allocated for red pepper production, access to credit, and lagged price of red pepper significantly affect the volume of red pepper supplied to the market. The major production constraints that hamper red pepper yield were red pepper disease, lack of fertilizer supply, lack of improved variety, lack of pesticide, harvesting before maturity, and poor post-harvest handling. The marketing constraints were lack of marketplace, low and unstable price of the product, and low quality of product, improper scale, lack of government support, and lack of transport. Therefore, Policies that give more emphasis on the provision of modern inputs, improving infrastructure, strengthening institutions of collective action, and improving the marketing extension system are recommended. • Push and pull factors are direct and indirect cause of market supply. • An efficient marketing system is the building block of economic growth. • Proper and stable pricing system increase producer's net gain. • Red pepper is the second most important vegetable.