Volume 9, Issue 2, December 2020, Page: 109-119
Determinants of Market Outlet Choices of Tef
Addisu Getahun, Ethiopian Institute of Agricultural Research, Holetta Agricultural Research Center, Addis Ababa, Ethiopia
Degye Goshu, Department of Economics, Kotebe Metropolitan University, Addis Ababa, Ethiopia
Adam Bekele, Ethiopian Institute of Agricultural Research, Addis Ababa, Ethiopia
Received: Oct. 6, 2020;       Accepted: Oct. 22, 2020;       Published: Nov. 4, 2020
DOI: 10.11648/j.jwer.20200902.14      View  44      Downloads  4
Abstract
In Ethiopia, specifically in Dendi district tef is cash crop for majority of the smallholder farmers. and the supply of tef in the study area still can’t satisfy the existing market demand and the farmers are not benefited from the market price. This study was aimed at analyzing the factors affecting market outlet choices of tef producers in Dendi district. The study largely uses primary data that were collected through structured and semi-structured questionnaire. Both descriptive statistics and econometric models were used. Multivariate probit model was used to identify the determinants market outlet choices. From descriptive statistics result six tef marketing channels are identified in the district. The multivariate probit model result indicated that educational level of household head, household size, livestock owned, equines owned, land area under tef, distance to the nearest market and current market prices of tef significantly influenced tef producers’ choice of alternative market outlets. The probability of choosing wholesalers, consumers, collectors and cooperatives outlets are 64.4%, 41.6%, 39.1% and 51.1%, respectively. Wholesalers is the most likely chosen market outlet while collectors are the less likely chosen market outlet. The joint probabilities of the households to jointly choose the four market outlets was 4.1% which is lower than the likely of not choosing all market outlets which is 5.2%. Therefore, strategies aiming at promoting tef producers’ marketing and outlet choices should focus on strengthening the technical skills, resource base, infrastructural and institutional capacity of smallholder farmers.
Keywords
Smallholders, Multivariate Probit, Tef, Market Outlet, Dendi
To cite this article
Addisu Getahun, Degye Goshu, Adam Bekele, Determinants of Market Outlet Choices of Tef, Journal of World Economic Research. Vol. 9, No. 2, 2020, pp. 109-119. doi: 10.11648/j.jwer.20200902.14
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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