African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6574

Full Length Research Paper

Application of multivariate probit on determinants of sesame farmers market outlet choices in Gimbi District, Ethiopia

Fikiru Temesgen
  • Fikiru Temesgen
  • Department of Agribusiness and Value Chain Management, Ambo University, P. O. Box: 19, Ambo, Ethiopia.
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Bezabih Emana
  • Bezabih Emana
  • HEDBEZ Business and Consultancy PLC, P. O. Box 15805, Addis Ababa, Ethiopia.
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Fikadu Mitiku
  • Fikadu Mitiku
  • Jimma University College of Agricultural Economics and Extensions, P. O. Box 307, Jimma, Ethiopia.
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Efa Gobana
  • Efa Gobana
  • Department of Agribusiness and Value Chain Management, Ambo University, P. O. Box: 19, Ambo, Ethiopia.
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  •  Received: 20 July 2017
  •  Accepted: 10 August 2017
  •  Published: 21 September 2017

Abstract

Sesame (Sesamum indicum L.) is an important crop produced in Ethiopia for oilseed production and it was ranked first in total production from oil crops in 2013. The study is based on a survey of 166 farmers covering six kebeles in Gimbi district, Ethiopia with the objectives of identifying factors affecting choice of market outlet of sesame producers in the study area. Data were collected from both primary and secondary sources in 2015/2016. Multivariate probit model was for analysis. The results indicated that the probability of wholesalers to choose an outlet was positively and significantly affected by household education, distance from the nearest market, quantity produced and market price of sesame but negatively affected by collector market outlets. On the other hand, the probability of choosing cooperative marketing outlet is positively affected by membership of cooperative and distance from the market whereas it is negatively affected by market price of sesame. Therefore, the study confirmed the continued viability of sesame marketing cooperatives as suppliers of sesame-to-sesame buyers in the study area. The results obtained have important implications for farm management and future of farmers, as well as for the assessment of their development impacts.

 

Key words: Sesame, multivariate probit model, market outlet choices.