Market chain analysis of Teff in Tole Woreda, Ethiopia

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 specifi c objective of assessing the structure-conductperformance paradigm of teff, identifying major factors infl uencing 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 fi rms 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 signifi cantly 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% signifi cance 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 signifi cantly infl uenced 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. Research Article Market chain analysis of Teff in Tole Woreda, Ethiopia Tariku Legese Dibaba* Department of Agricultural Economics, College of Agriculture, Oda Bultum University, Ethiopia Received: 05 November, 2020 Accepted: 21 January, 2021 Published: 22 January, 2021 *Corresponding author: Tariku Legese Dibaba, Department of Agricultural Economics, College of Agriculture, Oda Bultum University, Ethiopia, Tel: +251912282198; E-mail:


Background of the study
Ethiopia produces more cereal crops than other agricultural products with Cereals account for more than 60% of rural employment, 81% of total cultivated land, more than 42% of atypical household's food expenditure and more than 60% of total calorie intake [1]. Out of the total grain crop area in the country, 81.27% (10.

22million ha) was under cereals. Cereals
Teff is the fi rst In Ethiopia area coverage and production. The scientifi c name of teff is Eragrostisteff (Zucc.) (Vavilov, 1951). In oromia regional state, the land allocated for the production of teff in the year 2017 was 1,441,029.78ha. Moreover, the regional production of teff in the year 2017 was 24,737,963.79 quintal with the productivity of 17.17qu/ha which is greater than the productivity of the country 16.64qu/ha [2].
Teff is the highest-priced cereal grown in the country due to long marketing chain with little or no value addition. The National teff Strategy has been prepared following a value chain approach, which includes coordination of all steps in the chain, adding value at each stage, and a marketing approach to address local, national, and international consumer demand [3].
Ethiopian agriculture sector continues to face a number of problems and challenges until now. The major ones are absence of well-functioning markets and adverse climatic conditions need mention [4]. The nature of the product and lack of proper functioning marketing system often resulted in lower producers' price. According to Efa, et al. [5] poor market linkages, collusion of buyers on price setting, high transport cost and access to nearest market are the major marketing problem.
Some research conducted on marketing participation of smallholder farmers in different teff producing areas.
Mohammad (2011) and Azeb [6] conducted a study on market chain of teff, wheat and analyses of the teff market participation of farm households respectively. But they fail to study the farmer's market outlet choice of teff and no such

Sources of data
Primary and secondary sources of data were used. Primary data sources were smallholder farmers randomly selected from different rural kebeles, and traders at different levels ranging from farmer traders to regional level wholesales. The source of secondary data list of different and relevant published and unpublished reports as well as bulletins from CSA.

Sampling technique and sample size
Sampling techniques: In this study a multi stage sampling procedure was used to select the rural kebeles and sample households. Tole woreda was purposively selected based on its potential production of teff from the SW Shewa zone. In the fi rst stage, Tole woreda kebeles were stratifi ed into producer and non-producer of teff. Since three kebeles were town kebeles they are not produce teff and three kebeles were found in Dega agro climate almost all of them participated in producing barley and inset rather than teff. Totally Out of the 24 kebeles in Tole woreda and 5 kebeles did not produce teff whereas 19 kebeles were teff producer. In the second stage 19 teff producer kebele is purposively selected. From these teff producing kebeles 4 kebele were selected randomly. Since the population and area of production were homogeneous to producer the selected kebele was almost representative to the woreda. In the third stage, sample respondents households was randomly taken from each selected kebeles probability proportional to the size of their sample teff producer distribution. The study was also target to trader of the teff in the study area. The sites for the trader were towns market in which a better sample of teff traders existed. On the basis of fl ow of teff , 6 markets (kusaye, Habebe, Bantu, Asigor, Sebeta and Alemgena) were selected. The sample size determination was employed using the formula given by Yamane [7]. (1) Where: n= the sample size needed.
N= the total number of teff producer households in the woreda which were 13572. e = margin of error and for this study 9% was be used to obtain manageable sample size.
Generally, from 6 regional wholesalers, 27 farmer traders, 14 urban wholesalers 4 regional retailers, 18 urban retailers 4, 17, 7, 3, and 9 were selected randomly based on probability proportional to size in the selected market. In addition, 2 commission men were randomly taken which make the total 42 participants.

Methods of data collection
Primary data was collected using semi-structured questionnaires from teff traders and teff producers and interview from key informative. The key informant was done by interviewing in-personal the people like leaders of each of the kebele, DAs and woreda trade, industry and urban development.
previous studies have been conducted in Tole woreda. This study therefore, has attempted to contribute in fi lling the information gap by identifying factors affecting teff market supply and market choice outlet of farmers in Tole woreda.

Research methodology
Description of the study area: Tole Woreda is located in South west from capital city Addis Ababa and East from the administrative town, Woliso. Bantu is the Worde administrative town since 1936 and it is located at 85 km to the south west of Addis Ababa and 80 km to the East from the zonal administrative town Woliso. The woreda has 24 kebeles (22 rural and 2 urban kebeles). Tole woreda is located between 8 0 28''N-8 0 47''N and 38 0 17'' ½ E-38 0 29''E and its total area is 41,019 hectares which is only 6% of the zonal area. It is bordered on the southwest by Kokir, on the west by Bacho, on the northwest by Elu, on the northeast by the Awash River which separates it from Sebeta hawas, and on the east and south by Kersana Kondaltiti. The Population projection values of 2017 population census report, the total population of Tole woreda is 80,199, of whom 40,551 were men and 39,648 were women, 4,202 of its population were urban dwellers. The elevation of the area ranges between 2100-3080 masl (OWUDB, 2017). Tole woreda has only Dega (temperate climate) and Woina Dega (sub-tropical climate) agro climatic zone, which accounts 20% and 80% respectively. It experiences average temperature between 18 0 c and 20 0 c and annual rainfall varies between 1600 and 2000mm.
Climate: Tole woreda has good climatic conditions and this is an opportunity for cereal crops. The elevation of the area ranges between 2100-3080 masl (OWUDB, 2017). Tole woreda has only Dega (temperate climate) and Woina Dega (subtropical climate) agro climatic zone, which accounts 20% and 80% respectively. It experiences average temperature between 18 and 20 0 C annual rainfall varies between 1600 and 2000mm the main rainfall starts in June and ends in September. In the woreda Vertisols (Black basalthic soils), Nitosols (Red basaltic soils) and Cambisol (Shallow and sandy soils with coarse texture) type of soils are mainly identifi ed (OWUDB, 2017).
Land use: Tole Woreda has various land use types that could be classifi ed into arable land, irrigated land, grazing land, common land, land covered by water, land used for social service and forest land. The woreda has a total area of 41,019 ha of which 28,843.74ha arable land, 348ha forest land, 212.68ha covered by water, 572.44ha common land, 437.93ha land used for social service and 1776.4ha grazing land [6].
The farming system is characterized by mixed croplivestock farming. Farmers produce different crop enterprises in the rain-fed farming in order to secure their family food supply and also cover various household expenses. The major crops grown in the woreda include Teff , wheat, barley, rough pea and maize. Teff and wheat are the major sources of daily food of the population [6] Figure 1.

Data types, sources and methods of data collection
Qualitative and quantitative data were estimated to get the overall picture of teff producers and traders in the study area.

Methods of data analysis
For these study two types of data analysis, namely descriptive statistics for qualitative data and econometric analysis for quantitative data were used for data analysis.

Descriptive statistics
Descriptive statistics such as mean, standard deviation and percentage have been used in the process of examining and describing household characteristics, marketing functions and trader characteristics.

Structure conduct performance (S-C-P) model
This approach was developed in the United States as a tool to analyze the market organization of the industrial sector and then it was applied to assess the agricultural marketing system [8]. The model examines the fundamental relationships between market structure, conduct and performance.
The producers' share is the commonly employed ratio calculated mathematically as, the ratio of producers' price (exvessel) to consumers' price (retail). Mathematically, producers' share can be expressed as: Where: PS = Producers' share Px = Producers price of teff Pr = Retail price of teff which is consumer price MM = marketing margin Total Gross Marketing Margin (TGMM) is always related to the fi nal price paid by the end buyer and is expressed as percentage [9].
  end buyer price-first seller price X100 end buyer consumer pr The TGMM is useful to calculate producer's gross marketing margin (GMMp) which is the portion of the price paid by the consumer that goes to the producer. The producer's margin is calculated as: end buyer price-total growth marketing margin X100 end buyer price GMMp  Thus, for this study, multiple linear regression models was used to identify determinants of teff marketed supply. In matrix form was specifi ed as: Where Y = Total teff supplied to the market  In  this  study,  based  on  the  result  of  the  survey,  both  male  headed  household  and  female headed household participated in production of teff ( Table   1). The survey result showed the total sampled population of teff producers was 81.1% of male-headed household and 18.9

Demographics and socioeconomics characteristics of households
% of female-headed indicating that male headed households dominate teff production as expected.
The educational background of the sample household heads was believed to be an important role adoption of new yield enhancing technology and crop pattern. Further, it was assumed that household head with good education level and had better understanding about the prevailing market scenario.
The survey on this major demographic factor, measured in years, provided a clue on working ages of households.
The average household head's age was 42.93, which ranges between 22 and 82 years, where largest proportions of the household head was within the productive age (amid of 15  and 64 years). A family size was ranging between (1-11) was observed in the sampled farming households; the available data indicated that average family size in each household was 5.82.
Availability and adequacy of road was important prerequisite to link producers with markets in reduced transaction costs.
The assessments on this continuum, measured in kilometer where most households could access the entry within 3.54 km on average was approximately one hour of normal walk.

Teff marketing channels
The

Market performance
Marketing performance of teff markets were analyzed by considering associated costs, returns and market margins by taking into consideration the associated market costs for key marketing channels. Based on production costs, marketing costs and purchasing prices of the major market participants along the channels, margins at farmer, farmer traders, wholesalers, regional and urban retailer's levels were estimated and analyzed. The methods employed for analysis of performance in this study were channel comparison, profi t share and marketing margin.

Production Cost, Marketing costs and benefi t shares of actors in teff marketing channel
Though teff producers received different prices as sold to regional whole sellers, regional retailer, urban wholesalers and consumer, the average price was taken on analysis of benefi t share of the actors (Table 3). Accordingly for the producers, ploughing, draft power, sowing and weeding cost had got the biggest percentage share of cost of production (21.68%) and followed by land rent cost and harvesting, threshing and container cost which were (21.62%) and (19.93%) respectively Tables 4,5.
In a way of passing product from one actor to another, the actors improved the product quality by sorting, cleaning and creating time utility as well as incur some costs. Compared to producers (96.24%), traders (farmer trader (0.67%),regional wholesalers (1.44%), regional retailer (0.31%), urban wholesalers(1.02%), and urban retailers (0.35%) operating expense is only 3.76% of the total cost but their share of profi t margin were 18.31%, 23.50%, 11.19%, 24.29%, and 6.78%, respectively and that of producer was 15.93%. The profi t share of farmer trader was (18.71%), regional wholesalers (22.72%) regional retailer (11.67%), urban wholesalers (24.55%), and urban retailers (6.70%). selling traders took 84.85 % share of margin. While producers, performing all the work of producing quality teff and bearing the associated risks, took only 15.15% share of margin.

Marketing margins of teff in different channels
By taking the average sales prices of different participants in the teff market chain (producers, farmer traders, regional wholesalers, regional retailer, urban   wholesalers and urban retailers) the marketing margins of teff was calculated as follows Table 6.
The survey results showed that, the total gross marketing margin (TGMM) was highest in Channel VIII and IX and was 20.91 and 20.98% respectively (Table 7). From all actors, producers have got highest GMM in channel I when sell direct to consumer but this channel conveys limited amount of teff marketed. Again the second largest producers GMM when producer sell to retailer in channel II. However, rural retailers in channel III and V had got the lowest GMM which was accounted for 1.42 percent each.

Factors Affecting Marketed Supply of Teff to market:
Multiple linear regression models were employed to identify the factors. Based on the regression results, the coeffi cient of determination R 2 was 0.6504 indicating that a combination of independent variables in the regression model explained 65.04% of the variation in the dependent variable with the remaining 34.96% for uncontrollable factors in the regression model Table 8.
Total land allocated for teff: As expected the total land holding of farmers was signifi cantly and positively infl uences teff market supply at 1% signifi cant level. This indicated that the larger hectare of the land size that households had more land allocated for teff production and more would be the volume of teff marketed. The regression coeffi cient showed that an increase in land holding of household by one hectare increases the teff market supply by 7.85 quintal keeping all other factors held constant. This result was in agreement with the fi nding of Jaji, et al. [9] implies that on average, increase in the farmers' farm size by one hectare resulted in increase the quantity of pineapples supplied to market holding other things remains constant.

Education level of HHH:
Education showed positive effect on teff quantity sold with signifi cance level at 10%. On average, if teff producer education level increased by one, the amount of teff supplied to the market increases by 1.32 quintal if other thing remains constant. The result further indicated that, education has improved the producing household ability to acquire new idea in relation to market information and improved production, which in turn enhanced productivity and thereby increased market supply of teff. This was in line with Addisu [10].

Amount of credit used for teff:
The amount of Credit that farmers used for teff production signifi cantly and positively infl uenced the teff market supply of farmers. As the amount credit used for teff production increased by one birr, the quantity of teff supplied to market increased by 0.093 kilograms, keeping all other factors held constant. This could be explained by the fact that credit is an important institutional service to fi nance poor farmers for input purchase. Similar results were by Jaji, et al. [9] who found increased in household head's access to credit and increased the pineapple market supply.
Distance from home to all-weather road: The distances of farmer's home from the all-weather road was signifi cantly    and negatively affect the teff supply to market. The results also show that farness of households settlement from all-weather road translates to reduction in volume of teff sold. One km increase in distance to all-weather road decreases the volume of teff output sold by about 0.94 quintal, when other factors are remained constant. In line to this, Mebrahatom [11], found that distance from homestead to all weather roads decrease the quantity of teff sold.
Age of household head: inverse of expected age of the household head signifi cantly and negatively infl uenced teff market supply. An increase in the age of household head by one year decreased the teff market supply by 0.28quintal, keeping other things constant. Getahun, et al. [12], showed that household's tendency to participate in banana marketing decreases as farmer gets older and older.

Determinants of teff producers' market outlets choice
The Wald test ( 2 (53) =192.35, p = 0.000) was highly signifi cant at the 1% level, which indicated that the subset of The  21 (correlation between the choice for wholesaler and farmer traders outlet) and  32 (correlation between the choice for retailer and wholesalers outlet) were negatively interdependent and signifi cant at the 1% probability level indicating a competitive relationship of wholesaler outlet with farmer traders outlet and retailer outlet while  43 (correlation between choice of consumer and retailer outlet) were positive and statistically signifi cant at 10% level of signifi cance indicated complementarity relationships between retailer and consumer outlet. This showed that in teff marketing producers used farmer trader's outlets as substitute for wholesaler outlets, and wholesaler outlets as substitute for retailer outlets in Tole district. The simulation results also indicate that the probability that teff producers choose wholesaler, farmer trader, retailer, and consumer market outlet were 69.57%, 65.67%, 45.08% and 49.18% respectively Table 9. Sex of Households (SHH) sex of the house hold head was positively and signifi cantly associated with use of wholesaler's outlet at less than 1% signifi cance level and negatively associated with the consumer market outlet choice at 5% signifi cance level. It was also interesting to note that male head producers were more likely to deliver teff to wholesale outlet than female head households. Being a male household increase the probability of wholesale market outlet choice by 12.73% and being a female increase the probability of rural consumer market outlet choice by 8.16%. Findings from other studies for Fischer and Qaim [14] determined factors that affect group membership in Kenya and also showed that female farmers were more likely to join a marketing group than male farmers, thus would most likely sell to a marketing group or cooperative.   probability level. From the study, producers with availability of off/non-farm income had capacity to transport their product alternatives outlets. Similar study conducted by Addisu [10] confi rmed that farmers who have access to off/non-farm income had less possibility to choose rural collector outlet compared to those without access to off/nonfarm income.

Frequency of extension contact: Number of extension
contact had positive and signifi cant infl uence with wholesaler outlet choice decision at 5% signifi cance level. Those who were visited more by extension agent were more likely to deliver teff via wholesaler outlets than households less visited by extension agent. The result showed that as the extension contact of farmers increased by one the probability of choice the wholesale market increased by 13.6%. Sultan [18][19][20][21][22] frequency of extension contact positively and signifi cantly affected the accessibility of wholesales market outlet choices as compared with assembler market outlet choices of wheat producers [23,24].

Conclusion
Market chain analysis of the study area revealed that, the main actors in the chain were producers, farmer traders, urban wholesalers, urban retailer, regional wholesalers, regional

Recommendations
The government should establish cooperatives among teff producing areas to minimize the existing strong oligopoly conveying timely and adequate market information for teff producers was very essential. Improve extension system which focused on market extension and linkage of farmers with markets is necessary to ensure a reliable market outlet for producers of the study area.