Vegetable Market Performance in Smallholders Production System: The Case of Lake Tana Basin, Ethiopia

Marelign Adugna,Mengistu Ketema,Sisay Debebe Kaba,Degye Goshu

doi:10.32861/bmer.53.40.48

Abstract

Lake Tana basin is one of the most potential vegetable production areas in Ethiopia. However, production in this region has been carried out at smallholders’ level with poor marketing infrastructure. Hence, this study was aimed to examine the structure and performance of vegetable marketing in the Lake Tana basin. Multistage random sampling mixed with non probability sampling techniques were employed to collect data from 385 smallholder vegetable producing farmers and 107 vegetable traders from three districts and two major town markets. Data were analyzed using market structure and performance indicators. The result of the analysis showed that market structure in the study area could be characterized by weak oligopolistic market with little chance of market participants to influence market price. Storage loss and transport cost were found the two largest cost components of vegetable marketing in the study area. Net marketing margin and producers’ share of the consumers’ price could be improved by shortening the distance between the producer and urban consumer or reducing the intermediaries involved. Establishing farmers’ group marketing with communication access together with least cost storage and transport technologies should be encouraged to improve vegetable marketing performance.

Highlights

Bank profitability (BP) is the ultimate performance result showing the net effects of bank policies and activities in a financial year
According to van Greuning and Bratanovic (2003), bank BP is usually measured by certain financial performance indicators (FPIs) or ratios
It is strongly believed that a robust performance management (PM) framework brings proactive focus on value addition and profitability that translates to better actual performance of a bank

Summary

Introduction

Bank profitability (BP) is the ultimate performance result showing the net effects of bank policies and activities in a financial year. According to van Greuning and Bratanovic (2003), bank BP is usually measured by certain financial performance indicators (FPIs) or ratios Such FPIs often include return on asset (ROA), return on investment (ROI) and return on equity (ROE). No matter how profit is measured or defined, profit over the long-term is the clearest indication of a business organization’s ability to satisfy the principal claims and desires of employees, shareholders and other stakeholders To this extent, Pearce II and Robinson (2003), hypothesize that the strategic management process is oriented toward long-term organizational profitability because the growth of any business organization is tied inextricably to its survival and profitability. He emphasizes that when the entire organization embraces PM, it becomes a strategic part of the business. Arora and Jain (2013) Linking employee objectives with organizational objectives provides more accurate representation of the key perspectives and influences and strategic actions that have important implications for management behavior and organizational profitability (Ali, 2018)

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