Avocado Producers’ Market Participation in ‘Damot Gale’ and ‘Boloso Bombe’ Districts of Wolaita Zone, Southern Ethiopia

Abstract

The focus was analyzing the determinants of market participation, supply volume and demand level for avocado, with especial emphasis to ‘Damot-Gale’ and ‘Boloso-Bombe’ districts of Wolaita zone in southern Ethiopia. Primary and secondary data were used and a total of 160 households from 14 potential kebeles from the selected districts were surveyed. In addition to descriptive statistics, Heckman two-stage econometric model and double log model were employed to identify factors affecting the market participation and the supply volume and consumed; using SPSS and STATA software. The study reveals that the major actors of avocado marketing are producers, rural assemblers, wholesalers and retailers; 7 important market chains have been identified and much of the marketed surplus channeled through farmer ? retailer ? consumer. The survey result also showed that the total purchase of avocado was in the hands of few individuals indicating the existence of oligopoly market structure of different degrees. Results from Heckman two-stage model shows that among 12 explanatory variables hypothesized to affect avocado market participation 3 of them: family size, quantity of avocado produced and price of avocado in the market found to affect significantly producers’ decision to sell. 5 variables: education level, active labor, farming experience, quantity of avocado produced and market information found to significantly influence the quantity/volume supplied to the market. From 8 variables hypothesized to affecting consumption level, income, price and availability found significant. The research recommends improving production and productivity, organizing producers into cooperatives and improving market information services as intervention.

Keywords: avocado, market chain, market participation.