IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v8y2019i1d10.1186_s40008-019-0167-x.html
   My bibliography  Save this article

Determinants of market outlet choices by smallholder teff farmers in Dera district, South Gondar Zone, Amhara National Regional State, Ethiopia: a multivariate probit approach

Author

Listed:
  • Tadie Mirie Abate

    (University of Gondar)

  • Taye Melese Mekie

    (University of Gondar)

  • Abebe Birara Dessie

    (University of Gondar)

Abstract

In Ethiopia, teff is an important cereal crop, particularly in Dera district. It is a source of food and provides cash income for majority of smallholder farmers. To commercialize teff producers, selecting an appropriate market channel is mandatory. However, selecting an appropriate market channel is not an easy task because there are different factors that influence market outlet choices. Therefore, this study aimed to identify factors that influence teff market outlet choices. A two-stage random sampling procedure was used and a total of 154 smallholder farmers were randomly and proportionally selected to collect primary data. Multivariate probit model was employed to identify factors affecting teff market outlet choices. The result of the study shows that the probability of teff producers to choose wholesaler, retailer, consumer and cooperative market outlets was 31.82%, 35.71%, 37.01% and 16.88%, respectively. This shows that consumer was the most likely chosen market outlet while cooperative was the less likely chosen market outlet. The joint probability of farmers to choose the four market outlets is (0.1%) lower than the likely of no choosing four market outlets (19.5%). The result of multivariate probit model revealed that age of household head, land size, quantity of teff produced, lagged price of teff, family size (AE), membership of cooperatives and distance to the nearest market were found to be statistically and significantly affecting the market outlet choice behavior of teff producers. This implies that improving the production capacity of farmers and invests on rural cooperatives would help smallholder farmers to choose the rewarding market outlet. Therefore, the study suggested that improving the existing production system, farmers relying on intensive cultivation; giving better price for farmers and being membership of cooperative are important strategies to select the appropriate market channel.

Suggested Citation

  • Tadie Mirie Abate & Taye Melese Mekie & Abebe Birara Dessie, 2019. "Determinants of market outlet choices by smallholder teff farmers in Dera district, South Gondar Zone, Amhara National Regional State, Ethiopia: a multivariate probit approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-14, December.
    • Handle: RePEc:spr:jecstr:v:8:y:2019:i:1:d:10.1186_s40008-019-0167-x
    DOI: 10.1186/s40008-019-0167-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40008-019-0167-x
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40008-019-0167-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Muricho, Geoffrey & Kassie, Menale & Obare, Gideon, 2015. "Determinants of Market Participation Regimes among Smallholder Maize Producers in Kenya," 2015 Conference, August 9-14, 2015, Milan, Italy 212515, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Surendran Arumugam & Ramu Govindasamy & James E. Simon & Emil Wyk & Burhan Ozkan, 2022. "Market outlet choices for African Indigenous Vegetables (AIVs): a socio-economic analysis of farmers in Zambia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-13, December.
    2. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Momanyi, Denis & Lagat, Prof. Job K. & Ayuya, Dr. Oscar I., 2016. "Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya," MPRA Paper 69202, University Library of Munich, Germany, revised 27 Jan 2016.
    2. Djomo Choumbou Raoul Fani & Ukpe Udeme Henrietta & Emmanuel Njock Oben & Donald Denen Dzever & Onyeje Hephzibah Obekpa & Auguste Tamba Nde & Mohamadou Sani & Mbong Grace Annih & Dontsop Nguezet Paul M, 2021. "Assessing the Performance and Participation among Young Male and Female Entrepreneurs in Agribusiness: A Case Study of the Rice and Maize Subsectors in Cameroon," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    3. Gemechu Ordofa (a), Lemma Zemedu (b), Mohamed Triki (c), 2021. "Determinants of Smallholder Farmer Decision to Participate In Milk And Butter Market in Ada’a Berga District, West Shewa Zone, Ethiopia," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 46(2), pages 209-227, June.
    4. Christopher Ugochukwu Nwafor & Abiodun A. Ogundeji & Carlu van der Westhuizen, 2020. "Adoption of ICT-Based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa," Agriculture, MDPI, vol. 10(2), pages 1-13, February.
    5. Ogunleye, W., 2018. "Output Market Participation by Smallholders Rice Farmers in Obafemi Owode Local Government Area, Ogun State, Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277055, International Association of Agricultural Economists.
    6. Dlamini, Lucinda Nosizo, 2019. "Determinants of commercial orientation and the level of market participation by women maize farmers in Eswatini," Research Theses 334763, Collaborative Masters Program in Agricultural and Applied Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecstr:v:8:y:2019:i:1:d:10.1186_s40008-019-0167-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.