Journal of
Development and Agricultural Economics

  • Abbreviation: J. Dev. Agric. Econ.
  • Language: English
  • ISSN: 2006-9774
  • DOI: 10.5897/JDAE
  • Start Year: 2009
  • Published Articles: 549

Article in Press

Determinants of Wheat Market Outlet Choice of Smallholder Farmers: The Case of Dembecha District, Amhara National Regional State, Ethiopia.

Yonnas Addis, Bosena Tegegn and Mengistu Ketema

  •  Received: 29 November 2018
  •  Accepted: 04 January 2019
Wheat is one of the major cereal crops produced in Ethiopia and used as food and source of cash for farm households. This aimed analyzing determinants of market outlet choice of wheat producing farmers in Dembecha district of West Gojjam zone, Ethiopia. The study used cross-sectional data collected from a sample of 130 farm households selected randomly from the district’s four kebeles through two-stage sampling techniques. Both descriptive and econometrics analytical methods were employed for data analysis. For the marketing of wheat, about 48.5%, 62.3%, 71.5% and 51.2% of the respondents mainly chosen wholesalers, collectors, cooperatives, and end consumers outlets, respectively. The result of a multivariate probit model showed that the choice of wholesale’s outlet significantly and positively affected by educational levels of household heads and quantity of wheat supplied to market and negatively affected by family size and cooperative membership. The choice of collectors’ outlet is significantly and negatively affected by educational level of household head and positively affected by quantity of wheat sold while choice of cooperative outlet is positively affected by frequency of extension contact and membership in cooperatives. Similarly, the choice of consumer outlet is significantly and positively affected by educational level of household heads, wheat farming experiences and frequency of extension contact. It is, therefore, important to strengthen extension service for farmers, efficiently using resources, promoting cooperatives membership and farmers experience through training and model farmers field visit that would assist smallholder farmers to produce more and to choose a more rewarding market outlet.

Keywords: Market outlet choices, Smallholder, Wheat, Multivariate probit