Structure- Conduct -Performance of Potato Market: The Case of Jeldu District of Oromia National Regional State, Ethiopia

Abstract

Improvements in the potato production system can be a pathway out of poverty in Sub Saharan Africa, including Ethiopia. In Ethiopia, potato production can fill a gap in food supply during the hungry months of October to December before the grain crops are being harvested. Hence, Potato has been considered as a strategic crop by the Ethiopian government aiming at enhancing food security and economic benefits to the country. However, Ethiopia suffers from weak market linkages on both the input and output sides. The purpose of this study is, therefore, to analyze the structure-conduct-performance of potato market in Jeldu district. Both primary and secondary data were used. Primary data were collected from 122 producers and 32 traders. The structure-conduct-performance approach was applied to analyze the data. Market concentration ratio and barriers to entry were used to analyze the structure of the market. The conduct of the market was evaluated by traders’ price setting strategies, purchasing and selling strategies. Potato market performance was also evaluated by calculating marketing margin and profit share for producers and traders under various marketing channels.

Keywords: Structure; Conduct; Performance; potato; Jeldu