Factors Affecting Production and Market Supply of Haricot Bean in Southern Ethiopia

Abstract

Haricot bean has been an important export commodity for the Ethiopian economy for the last 40 years. It is the smallholder farmers in the low and mid-attitude zones of the country who use haricot bean, not only as source of income but also as source of food. The present study examines factors affecting production and market supply of haricot bean in Boricha district. Cross sectional data obtained from 165 sample respondents were used to estimate the cob-Douglas production function and supply model. The result of the log linear regression shows it is possible to increase production of haricot bean by increasing the supply of seed, fertilizer, nonfarm activities and labour. These variables cetirus-paribus significantly influence production positively. From the estimates of supply function, selling price and production amount positively and significantly affect marketable supply, but consumption significantly influences market supply negatively. Hence by increasing production and selling price, market supply can be improved. The policy implications of the present findings are to have increased and diversified nonfarm activities, with increased input delivery which would have great contribution in increasing haricot bean production and market supply in the area. Hence measures should be directed towards assuring appropriate remunerative prices and increases in investment on  input supply to better commercialize the crop.

Keywords: Smallholders, haricot bean, production structure, market surplus