Factors Affecting Market Outlet Choice of Kocho Producers in Cheha District, Gurage Zone, Southern Ethiopia

Abstract

Cheha district in Gurage Zone of Southern Ethiopia is known for Enset farming. However, use of traditional technologies and poor linkages along the market chain were mentioned the major problems constraining the potential benefits from the sector. Therefore, this study was aimed at analyzing Factors Affecting Market Outlet Choice of Kocho. The data were collected from both primary and secondary sources. The primary data for this study were collected from 140 randomly selected farmers. Two-stage sampling was employed to draw sample of enset farmers. Multivariate probit models were used to identify Factors Affecting Market Outlet Choice of Kocho producers  and the result revealed that that the likelihood of households to use collectors, wholesalers, retailers, consumers and processors market outlet for Kocho were 41%, 38.5%, 65.1%, 53.6% and 23.5%. The multivariate probit model results also indicated that ownership of transport facility, Kocho quantity produced, perception toward current price, Extension service, distance from the nearest market and value addition of Kocho were significantly influenced Enset producers choices of Kocho market outlets. Providing timely and adequate modern production inputs to improve quantity produced, strengthening extension services to provide adequate information, and developing and improving infrastructures are recommended by study to enhance farmers’ choice of suitable market outlets.

Keywords; Value chain, Enset, Multiple regression model, Multivariate probit model, Market outlet, Value addition, Cheha.

DOI: 10.7176/DCS/9-3-01

Publication date:March 31^st 2019