Does Access to Market Information Determine the Choice of Marketing Channel among Smallholder Yam Farmers in the Brong Ahafo Region of Ghana? A Multinomial Logit Regression Analysis

Abstract

Asymmetric or missing information is likely to cause market failure and greater access of farmers to knowledge about markets and prices, is a key element in the efforts of breaking the cycle of poverty. This study describes the yam marketing distribution channel in Brong-Ahafo region. It also quantifies the magnitude and direction of the effect of market information access on the choice of yam marketing channel using the Multinomial Logit regression analysis. The study is cross sectional in designs. A total of 250 smallholder yam farmers participated in the survey. Data collected was analyzed using StataSE 11. Results indicate that there are six main channels of yam distribution comprising of producers, assemblers, wholesalers and retailers. The study observes, inter alia, that age of household head, access to cell phone, farm size and output price determine the choice of rural market relative to urban market whilst gender of household head, number of years of formal education and distance to tarred road significantly influences the choice of cooperative market relative to urban market. Access to cell phone and the interactive term (cell phone access*location of household head) are the most influential determinants of rural market and market cooperative choice both statistically and numerically respectively. These results have implications for agricultural policy in Ghana.

Key words: Multinomial Logit, Brong-Ahafo, Market channel, Cell Phone, Market information