Factors Affecting Market Outlet Choice for Wheat in Sinana District, Bale zone, Ethiopia

Abstract

Sinana is one of Bale zone districts which are particularly known for their extensive wheat production. Wheat is an important crop for its contribution as an income support and used for consumption to a large proportion of the rural households. However, enhancing wheat producer farmers to reach markets and actively engage in the markets is a key challenge influencing wheat production in Sinana district. Therefore this study was undertaken to identify factors influencing wheat market outlet choices in Sinana district of Bale zone. Data were collected from120 randomly selected wheat producers. Descriptive and multinomial logit model were used for analysis. The multinomial logit model result indicated that the likelihood to choose wholesalers market outlet was significantly influenced by frequency of extension contact, distance from market place, own price of the commodity and membership to cooperative compared to accessing assemblers wheat market outlet. The likelihood of accessing cooperative wheat market outlet was significantly influenced by price given to the commodity and distance from market place compared to accessing assembler market outlet. The likelihood of accessing processors market outlet was significantly influenced by price of commodity, ownership of transportation facilities and distance of processors from production place. Therefore policy implications that consider decision of farmers in participation of value added wheat producing to enhance value creation and improve market share and profitability of the smallholder farmers shall be an important.

Keywords: Market outlets, wheat market outlet choices, Wheat belt, Multinomial logit, Bale