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Determinants of honey producer market outlet choice in Chena District, southern Ethiopia: a multivariate probit regression analysis

Author

Listed:
  • Kassa Tarekegn

    (Bonga Agricultural Research Center, Southern Agricultural Research Institute)

  • Jema Haji

    (Haramaya University)

  • Bosena Tegegne

    (Haramaya University)

Abstract

Marketing outlets choice is one of the most important farm household decisions to sell their produce and has a great impact on household income. Though the study area has great potential of honey production, the farmers in the study area faced the marketing problem in choice of appropriate honey market outlets. This study was therefore carried out to analyze determinants of honey producers’ market outlet choice decisions in Chena district. A total of 154 honey-producing households were surveyed, and the data obtained were analyzed by using multivariate probit model. The results show that most sampled households in the study area sell their honey to cooperative outlet as compare to other outlets. The results of the econometric model show the dependency of household level marketing decisions as a strategy to maximize their incomes in the long term. The model results also reveal that the quantity of honey sold, frequency extension contact, beekeeping experience, distance to nearest market, market information about each outlet, cooperative membership, and trust in buyers determine market outlet choice decision of honey producers in the study area. Expanding equal accessibility of infrastructures, establishing honey collection centers in potential production areas, increasing the frequency of extension contact, and organizing additional beekeepers into honey cooperatives is suggested.

Suggested Citation

  • Kassa Tarekegn & Jema Haji & Bosena Tegegne, 2017. "Determinants of honey producer market outlet choice in Chena District, southern Ethiopia: a multivariate probit regression analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-14, December.
    • Handle: RePEc:spr:agfoec:v:5:y:2017:i:1:d:10.1186_s40100-017-0090-0
    DOI: 10.1186/s40100-017-0090-0
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    References listed on IDEAS

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    1. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
    2. Muthini, Davis Nguthi, 2015. "An assessment of mango famer's choice of marketing channels in Makueni, Kenya," Research Theses 204866, Collaborative Masters Program in Agricultural and Applied Economics.
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    Cited by:

    1. Karing’u kelvin Njuguna & Hezron Nyarindo Isaboke & Samuel Njiri Ndirangu, 2022. "Determinants of smallholders’ choice of avocado marketing outlets and profitability in Murang’a County, Kenya," SN Business & Economics, Springer, vol. 2(8), pages 1-25, August.
    2. N’Banan Ouattara & Xueping Xiong & Chenguang Guo & Lacina Traoré & Zié Ballo, 2022. "Econometric Analysis of the Determinants of Rice Farming Systems Choice in Côte d’Ivoire," SAGE Open, , vol. 12(2), pages 21582440221, May.
    3. Oscar Ingasia Ayuya & Katrine Soma & Benson Obwanga, 2021. "Socio-Economic Drivers of Fish Species Consumption Preferences in Kenya’s Urban Informal Food System," Sustainability, MDPI, vol. 13(9), pages 1-15, May.
    4. Rajabu Joseph Kangile & Charles Peter Mgeni & Zena Theopist Mpenda & Stefan Sieber, 2020. "The Determinants of Farmers’ Choice of Markets for Staple Food Commodities in Dodoma and Morogoro, Tanzania," Agriculture, MDPI, vol. 10(5), pages 1-12, April.
    5. Yemane Asmelash Gebremariam & Joost Dessein & Beneberu Assefa Wondimagegnhu & Mark Breusers & Lutgart Lenaerts & Enyew Adgo & Zemen Ayalew & Amare Sewenet Minale & Jan Nyssen, 2021. "Determinants of Farmers’ Level of Interaction with Agricultural Extension Agencies in Northwest Ethiopia," Sustainability, MDPI, vol. 13(6), pages 1-24, March.
    6. Mugenzi, Patrice & Owour, George & Bett, Hillary K., 2021. "Factors Influencing Smallholder Potato Farmers’ Choice Decisions of Market Outlets in Musanze and Nyabihu Districts, Rwanda: A Multivariate Probit Model," 2021 Conference, August 17-31, 2021, Virtual 315163, International Association of Agricultural Economists.
    7. Walter Amuko & Stephen W. Kalule & Walter Odongo, 2023. "The relationship between market information and entrepreneurial orientation: the case of smallholder honey producers in Northern Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-17, December.
    8. Yolchi, Jamshid, 2021. "The Impact of Market Outlets Choice on Beekeepers’ Income in Rural Poor: A Case Study of Badakhshan Province," OSF Preprints vxn92, Center for Open Science.

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