Factors Affecting Market Outlet Choice of Potato Producers in Eastern Hararghe Zone, Ethiopia

Abstract

Selection of appropriate channel for delivering farm products is not an easy task. There are various constraints that limit households in choosing appropriate channels. In this regard, the current study was aimed at identifying factors affecting channel choice decisions of potato producers in Ethiopia. The analysis is based on primary data collected from 400 farm households selected from three randomly selected districts in eastern part of Oromiya region, Ethiopia. Multinomial logit model was employed for analyzing the data. The results indicated that farming experience, distance to the nearest market, access to market information, amount of potato sold, post-harvest value addition, and bargaining power of farmers affect channel choice decisions in one way or another. Putting in place and strengthening institutions that deliver timely and appropriate market information is among the major recommendations of this study.

Keywords: Channel choice decision, Ethiopia, Market outlets, Multinomial logit, Potato Value Chain