Factors Affecting Market Outlet Choice of Groundnut Producers in Digga District of Oromia State, Ethiopia

Abstract

Various problems constrain farmers in order not to choose appropriate market outlets for their produce. By taking these issues into consideration, this study is undertaken with the objective of identifying determinants of groundnut market channel choice producers in Digga district of Oromia region, Ethiopia. Both primary data which is collected from 123 randomly selected households from four kebeles and secondary data were used. Multi-stage sampling procedure was employed to draw sample of groundnut producers. Multivariate probit model was used to identify factors affecting market outlet choices of groundnut producers and the result revealed that variables like educational level, distance to the nearest market, access to extension service, size of land allocated for groundnut, quantity of groundnut produced, transport facilities, buyers’ trust and access to off/non-farm income affected the choice of appropriate market outlets of producers. Providing and strengthening services from extension services, timely and adequately providing production inputs to improve quantity produced, improving road infrastructures are recommended by the study to enhance farmers’ choice of suitable market outlets

Keywords: groundnut, market outlet choice, multivariate probit model