Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 553

Article in Press

Market chain analysis of teff in southwest shewa zone

Tariku Lagese

  •  Received: 28 January 2020
  •  Accepted: 10 February 2021
Teff accounts for the largest share of the cultivated area and the major cash crops grown mainly for market in the study area. But the nature of the product on one hand and lack of properly functioning marketing system on the other often resulted in lower producers’ price. So that, this research attempted to analyze the market chain of teff in Tole woreda Oromia Region of Ethiopia with specific objective of assessing the structure-conduct- performance paradigm of teff, identifying major factors affecting market outlet choice of teff producing farmers and to determine factors affecting amount of market supply of teff by farm households in Tole woreda. Data for the study were collected from both primary and secondary sources. The primary data were generated from farmers and traders survey. A total of 122 teff producing sample households from four teff producing kebeles of the woreda and 40 teff traders from six teff marketing town were surveyed. Both descriptive and econometrics analysis were employed to analyses the data. The structure-conduct-performance approach was used to evaluate teff market performance. The Market concentration ratio of largest four firms at the woreda level was 59.44% which indicated oligopolistic market structure. The econometric model results indicated that the amount of teff supply to market was significantly affected by age, educational status, total land holding, amount of credit used for teff production, number of oxen owned by household, lag market price of teff and Distance from home to all weather road at 1, 5,10% significance level. The multivariate probit model results indicated that age, sex, educational status, frequency of extension contact, off-farm activities, total land allocated for teff, access to information and family size s significantly influenced teff producer’s choice of market outlets for their produce. Thus, the government and concerned stockholders should expanding equal accessibility of infrastructures such as road and transportation facilities to reducing transaction costs needs government intervention to promote the effective marketing of teff product supply through all outlets.

Keywords: market chain analysis, teff supply, outlet choice, Tole, Multivariate probit, SCP, OLS