Quantity Measurement Cost and Reliability of Cereal Commodity Trade: Evidence from Ethiopia

Abstract

Measurement reliability is an undervalued aspect of local agricultural marketplace organizations. There are also gaps in identifying the extent of cereal commodity trade measurement costs. Therefore, the aim of this paper is to estimate the magnitude of cereals trade quantity measurement cost caused by instrument error and unreliability in the context of the local marketplace in Ethiopia. In this regard, a survey was conducted in six different districts’ marketplaces (n = 602) of Oromia regional state. In addition to administered structured questionnaires, site mass measurement calibration was employed. The survey data were analysed using an independent samples t-test, one sample t-test and analysis of variance. According to the findings, the actual value measurement means of the quantity of most local units of the farmers were greater than small traders. The independent t-test result indicated that the average values of the quantity of the majority of units of measurement between farmers and small traders were varied significantly. Estimated average measurement cost of the farmers and small trader which occurred due to measuring instruments’ error and unreliability were higher for a sack, bowl and glass units compared with other units of measurement. This study demonstrates that homogeneity in measurement, market regulatory policy and institutions that aid cereals trade have an indispensable role to reduce measurement costs thereby ensure equitable exchange.