Analysis of Factors Determining the Supply of Ethiopian Cardamom Spice (Aframomumcorrorima): A Case from Bench Maji Zone of SNNPR, Ethiopia

Abstract

The objective of the study is to analyse factors determining the supply of Ethiopian cardamom spice (Aframomum corrorima) in Bench Maji Zone. Both primary and secondary data were used for the study. The primary data was collected by using questionnaire from randomly selected 250 cardamom spices producers. In the first case, of 10 woredas of Bench Maji Zone, Shey-Bench and four of its PAs were purposively selected on the ground that they are the leadingproducerofEthiopiancardamomspices.Descriptivestatisticsandeconometric model were employed for analyzing the data. From regression analysis, Out of those explanatory variables included in the model, seven variables such as Market price, Lagged price , Distance to the market, non-farming income ,Size of cardamom output, Extension service and Cooperative membership had significant effect on quantity of cardamom supplied. ThesurveyresultalsoindictsthatLackofuseofappropriatemoderntechnologies, Unlicensedtradersbrokersinthetradingofspices,Poortrainingprogram,Lackof organized market information service, Lack of proper post-harvest handling practices and lack of improved yield varieties of cardamom as their bottleneck problems. Meanwhile, irregular supply and quality deterioration due to limited commercial investors in spices production, poor access to credit facilities, absence of effective linkage among stakeholders, adulteration of inferior varieties with better ones for marketing , keeping spices in store for long in expectation of higher prices, inadequate processing facilities, price volatility due to changes in demand and supply in local and overseas markets, lack of organized market information service to the different actors in the spices farm to market chain, absence of capacity building like training program, inadequate transport in remote markets specially during wet seasons and challenges from unlicensed traders in the cardamom markets are constraintsreportedbymostofthesamplecardamomtraders.Theenhancementof cardamom producers’ bargaining power through cooperatives is the best measure that should target at reducing the olgopolistic market structure in the regional markets. Such measure also facilitates the regular supply of cardamom spices at reasonable price to consumers. In addition, there is a need to improve extension system and technical supervision and follow up must be strong. Strengthening of market extension (linking farmers with markets, building marketing capacity of farmers, etc.) is necessary. It is also necessary to provide information and enhance the knowledge and skills of farmers. Moreover, there is an urgent need for government intervention with regard to market price setting strategy. Improvement of the marketing infrastructure is another area of intervention to improve the efficiency of spices marketing in the study area. Furthermore, attention should be given to the improvement of roads and communication networks in different production and trading center.