Determinants of Market Outlet Choices of <i>Tef</i>

Addisu Getahun; Degye Goshu; Adam Bekele

doi:doi:10.11648/j.jwer.20200902.14

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Determinants of Market Outlet Choices of Tef

Addisu Getahun, Degye Goshu, Adam Bekele

Published in Journal of World Economic Research (Volume 9, Issue 2)

Received: 6 October 2020 Accepted: 22 October 2020 Published: 4 November 2020

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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.

Published in	Journal of World Economic Research (Volume 9, Issue 2)
DOI	10.11648/j.jwer.20200902.14
Page(s)	99-109
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Smallholders, Multivariate Probit, Tef, Market Outlet, Dendi

References

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[3]	CSA (Central Statistical Agency). 2016. Agricultural Sample Survey 2015/2016 (2008 E. C): Report on area and production of major crops, volume-I. Addis Ababa, Ethiopia.
[4]	Vavilov, N. I. 1951. The Origin, Variation, Immunity and Breeding of Cultivated Plants. Translated from the Russian by K. S. Chester. Ronal Press Co, 13 (1/6): New York, USA.
[5]	Minten, B., Seneshaw Tamru, Ermias Engida, and Tadesse Kuma. 2013. Ethiopia’s Value Chains on the Move: The Case of Tef. Working Paper 52. Ethiopia Strategy Support Program, April 2013. Ethiopia.
[6]	Bekabil Fufa, Befikadu Behute, Rupert, S. and Tareke Berhe. 2011. Strengthening the tef value chain in Ethiopia. Agricultural Transformation Agency. Addis Ababa, Ethiopia.
[7]	Barrett, C. B. 2008. Smallholder market participation: Concepts and evidence from Eastern and Southern Africa. Food Policy, 33 (2008): 299-317.
[8]	Wickramasinghe, U. and Weinberger, K. 2013. Smallholder Market Participation and Production Specialization: Evolution of thinking, issues and policies. Working Paper No. 107. Center for Alleviation of Poverty through Sustainable Agriculture (CAPSA). Jalan Merdeka 145, Bogor 16111, Indonesia.
[9]	Addisu Hailu. 2016. Value chain analysis of vegetables: The case of Ejere district, West Shoa Zone, Oromia region, Ethiopia. MSc Thesis, Haramaya University, Haramaya, Ethiopia.
[10]	Shewaye Abera. 2016. Econometric analysis of factors affecting haricot bean market outlet choices in Misrak Badawacho district, Ethiopia. International Journal of Research Studies in Agricultural Sciences, 2 (9): 6-12.
[11]	Takele Honja, Endrias Geta and Amsalu Mitiku. 2017. Determinants of Market Outlet Choice of the Smallholder Mango Producers: The Case of Boloso Bombe Woreda, Wolaita Zone, Southern Ethiopia: A Multivariate Probit Approach. Global Journal of Science Frontier Research, 17 (2): 23-29.
[12]	Oliyad Sori, Mengistu Ketema and Mohammed Aman. 2017. Factors Affecting Market Outlet Choice of Groundnut Producers in Digga District of Oromia State, Ethiopia. Journal of Economics and Sustainable Development, 8 (17): 61-68.
[13]	DDAO (Dendi District Agriculture Office). 2017. Annual report of Dendi district, Oromia region, Ethiopia.
[14]	Yamane, T. 1967. Statistics: An Introductory Analysis, 2^nd Edition. Harper & Row, Publisher, New York. pp. 919.
[15]	Belderbos, R., Carree, M., Diederen, B., Lokshin, B. and Veugelers, R. 2004. Heterogeneity in R&D cooperation strategies. International Journal of Industrial Organization, 22 (2004): 1237-1263.
[16]	Cappellari, L. and Jenkins, S. P. 2003. Multivariate probit regression using simulated maximum likelihood. Stata Journal, 3 (3): 278-294.
[17]	Kohls, R. L. and Uhl, J. N. 1985. Marketing of Agricultural Product. Fifth Edition. McMillian Publishing Company, New York, USA.
[18]	Chala Hailu and Chalchisa Fana. 2017. Determinants of Market Outlet Choice for Major Vegetables Crop: Evidence from Smallholder Farmers’ of Ambo and Toke-Kutaye Districts, West Shewa, Ethiopia. International Journal of Agricultural Marketing, 4 (2): 161-169.
[19]	Sultan Usman. 2016. Analysis of Wheat Value Chain: The case of Sinana district, Bale Zone, Oromia region, Ethiopia. Thesis Haramaya University, Haramaya, Ethiopia.

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APA Style

Addisu Getahun, Degye Goshu, Adam Bekele. (2020). Determinants of Market Outlet Choices of Tef. Journal of World Economic Research, 9(2), 99-109. https://doi.org/10.11648/j.jwer.20200902.14

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ACS Style

Addisu Getahun; Degye Goshu; Adam Bekele. Determinants of Market Outlet Choices of Tef. J. World Econ. Res. 2020, 9(2), 99-109. doi: 10.11648/j.jwer.20200902.14

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AMA Style

Addisu Getahun, Degye Goshu, Adam Bekele. Determinants of Market Outlet Choices of Tef. J World Econ Res. 2020;9(2):99-109. doi: 10.11648/j.jwer.20200902.14

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@article{10.11648/j.jwer.20200902.14,
  author = {Addisu Getahun and Degye Goshu and Adam Bekele},
  title = {Determinants of Market Outlet Choices of Tef},
  journal = {Journal of World Economic Research},
  volume = {9},
  number = {2},
  pages = {99-109},
  doi = {10.11648/j.jwer.20200902.14},
  url = {https://doi.org/10.11648/j.jwer.20200902.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20200902.14},
  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.},
 year = {2020}
}

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TY - JOUR
T1 - Determinants of Market Outlet Choices of Tef
AU - Addisu Getahun
AU - Degye Goshu
AU - Adam Bekele
Y1 - 2020/11/04
PY - 2020
N1 - https://doi.org/10.11648/j.jwer.20200902.14
DO - 10.11648/j.jwer.20200902.14
T2 - Journal of World Economic Research
JF - Journal of World Economic Research
JO - Journal of World Economic Research
SP - 99
EP - 109
PB - Science Publishing Group
SN - 2328-7748
UR - https://doi.org/10.11648/j.jwer.20200902.14
AB - 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.
VL - 9
IS - 2
ER -

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Author Information

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

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APA Style

Addisu Getahun, Degye Goshu, Adam Bekele. (2020). Determinants of Market Outlet Choices of Tef. Journal of World Economic Research, 9(2), 99-109. https://doi.org/10.11648/j.jwer.20200902.14

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ACS Style

Addisu Getahun; Degye Goshu; Adam Bekele. Determinants of Market Outlet Choices of Tef. J. World Econ. Res. 2020, 9(2), 99-109. doi: 10.11648/j.jwer.20200902.14

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AMA Style

Addisu Getahun, Degye Goshu, Adam Bekele. Determinants of Market Outlet Choices of Tef. J World Econ Res. 2020;9(2):99-109. doi: 10.11648/j.jwer.20200902.14

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@article{10.11648/j.jwer.20200902.14,
  author = {Addisu Getahun and Degye Goshu and Adam Bekele},
  title = {Determinants of Market Outlet Choices of Tef},
  journal = {Journal of World Economic Research},
  volume = {9},
  number = {2},
  pages = {99-109},
  doi = {10.11648/j.jwer.20200902.14},
  url = {https://doi.org/10.11648/j.jwer.20200902.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20200902.14},
  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.},
 year = {2020}
}

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