Structure, Conduct and Performance(S-C-P) of Sesame Market in Melokoza District of Southern Ethiopia

Abstract

Sesame is an important cash crop and plays vital role in the livelihood of many people in Ethiopia. In Melokoza district, sesame is a source of income for the people. However a number of challenges hampered the development of sesame sector along the market. Therefore this study was initiated to identify sesame market chain actors and their roles, analyze structure-conduct - performance of sesame market and identify constraints of sesame production and marketing in the study area. Both primary and secondary data were used for the study. Primary data were collected from farm households and traders through semi structured questionnaire. Secondary data were collected from different documents. Four sesame market channels were identified in the study area. Structure-conduct - performance analysis was used to analyze the data. Sesame markets are characterized by weak oligopolistic markets with the buyers’ concentration ratio of 40.28%. The major barriers to enter into the market were shortage of capital, licensing procedure, high price fluctuation, untimely and non- availability of price information and limited trading experience. The share of producers, wholesalers and exporters from the export free on board price was 52.07%, 25.28% and 22.65% respectively. Gross profit was Birr 1199.11, Birr 346.54 and Birr 106.25/qt. for producers, wholesalers and exporters respectively. Even though sesame trading is profitable, the magnitude is low as compared to time and efforts spent in the operation. 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, give attention to infrastructural, yield increasing technologies, post-harvest management and integrated pest and diseases control system in the study area to boost production and marketing of sesame.

Keywords: sesame; Melokoza; constraints; structure-conduct – performance

DOI: 10.7176/JBAH/9-2-02