Determinants of Sesame Market Supply in Melokoza District, Southern Ethiopia

Abstract

Sesame is an important cash crop and plays vital role in the livelihood of many people in Ethiopia. However a number of challenges hampered the development of sesame sector along the market. Therefore this study was initiated to analyze the determinants of sesame market supply by farm household in the study area. Both primary and secondary data were used for the study. Primary data were collected from 123 farm households selected randomly through semi structured questionnaire. Secondary data were collected by reviewing documents from different sources. Econometric model were used to analyze the data. The result of the multiple linear regression model indicated that seven variables namely Land allocated under sesame, sesame yield, family size, extension contact, credit access and market information influenced market supply of sesame positively while distance to the nearest market center was found to have a significant negative effect on sesame market supply. The finding suggests that, Strengthening Institutions that convey reliable and timely market information; strengthening extension system through training in all aspect and design financial institutions to address the challenges of financial access to smallholder farmers and traders. Moreover, government and concerned stakeholders need to give attention to infrastructural and yield increasing technologies in the study area to boost production and thereby increase market supply of sesame.

Keywords: Sesame; Melokoza; Households ;Market supply; Multiple Linear Regression