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Analysis of Factors That Dictate Farmers to Sell Their Produces Early:implication for Seasonal Price Fluctuation

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  • Bedaso Taye

Abstract

In Ethiopia, agricultural markets are characterized by seasonal price fluctuations as price seasonality is a fact of life in any agrarian production system. Prices of Agricultural crops typically fall immediately after harvest and rise gradually thereafter until the next harvest. This study was conducted to analyze the factors that dictate farmers to sell their produces immediately after harvest and thereby create price fluctuations. The study used household survey data to estimate Tobit model for the propensity and intensity to sell crops immediately after harvest. The econometric result indicates that education of head of household, number of markets, input cost, labor cost, and credit are found to affect quantity and intensity of early sale positively while family size and technology use affect intensity and propensity to sell early negatively.

Suggested Citation

  • Bedaso Taye, 2015. "Analysis of Factors That Dictate Farmers to Sell Their Produces Early:implication for Seasonal Price Fluctuation," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 23(2), December.
    • Handle: RePEc:ags:eeaeje:259415
    DOI: 10.22004/ag.econ.259415
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    References listed on IDEAS

    as
    1. Getaw Tadesse & Gerald Shively, 2009. "Food Aid, Food Prices, and Producer Disincentives in Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 942-955.
    2. Rashid, Shahidur & Negassa, Asfaw, 2012. "Policies and performance of Ethiopian cereal markets," IFPRI book chapters, in: Dorosh, Paul A. & Rashid, Shahidur (ed.), Food and agriculture in Ethiopia: Progress and policy challenges, chapter 5, International Food Policy Research Institute (IFPRI).
    3. Negassa, Asfaw & Jayne, Thomas S., 1997. "The Response of Ethiopian Grain Markets to Liberalization," Food Security Collaborative Working Papers 55595, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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