The choice of marketing channel is a strategic system which can be effectively adopted in responding to the dynamic economic anomalies. Poverty is a major challenge faced by cocoa marketers and it is more severe among small holder rural farmers. One way through which poverty can be alleviated is to examine the influence of marketing on poverty. However, only little is known about the impact of the market outlets on the poverty status of the farmers. This study examined outlet choices and rural household poverty among small holder cocoa farmers in Ondo state, Nigeria. Two hundred questionnaires were administered, retrieved and analyzed. FGT was adopted in computing the severity of poverty. Multinomial and ordered logistics regression were used in analyzing the influence of the various outlets on poverty status and the factors influencing poverty respectively. The results showed that the poverty incidence, depth and severity were 0.525, 0.5 and 0.025, respectively while the poverty line was N39,441 monthly equivalent to $101. The percentage of the core poor, moderately poor and non-poor was found to be 34.5%, 18% and 47.5%, respectively. The ordered logistics regression model revealed that years of schooling, hours spent working, family size, farm size and taxes were found to have statistically significant effect on poverty. It can be concluded that farmers who sell at the farm gate are the poorest while those who sells at the urban markets were the least poor.
Keywords: Cocoa, market outlets, poverty, small holder farmers, FGT, multinomial and ordered logistics regression model.