Market chain analysis of Teff in Tole Woreda, Ethiopia

Tariku Legese Dibaba*

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 and lack of proper functioning marketing system often resulted in lower producers’ price. The current 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 influencing 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 42 teff traders from six teff marketing town were surveyed. Both descriptive and econometrics analyses were conducted. 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 expand equal accessibility of infrastructures such as road and transportation facilities to reducing transaction to promote the effective marketing of teff product supply through all outlets. 

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Published on: Jan 22, 2021 Pages: 20-30

Full Text PDF Full Text HTML DOI: 10.17352/2455-815X.000083
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