A Multinomial Logit Analysis of Market Outlet Choice for Major Vegetables Crop: Evidence from Smallholder Farmers’ of Ambo and Toke-Kutaye Districts, West Shewa, Ethiopia

Abstract

This study was initiated to investigate factors affecting market outlet choices by smallholder farmers’ in Ambo and Toke-Kutaye districts. A total of 150 sample households were randomly selected for an interview using a semi-structured questionnaire. The Descriptive statistics and multinomial logit regression model were used for data analysis. Hence, 49.33% of sampled respondents choice direct sell to market while the remaining 31.33% and 19.33% of respondents choice wholesaler and retailer channel respectively. On the other hand, the multinomial logit regression analysis result showed that family size and access to market negatively affecting choice of retailer channel. Similarly, dummy model farmer, education level, and access to credit decrease the probability choice of retailer channel while it increases probability choice of wholesaler channel. Livestock in TLU and access to market decreases the probability choice of wholesaler channel. Finally, the study suggested that being model farmer, allocating more land for vegetables production, efficient use of family labor, access to market, and access to credit services would help to enhance smallholders capacity to produce vegetables that aligned to improve vegetables value chain in the study areas.

Keywords: Market Outlet Choice, Vegetables, Multinomila logit, Smallholder Farmers’, Study Areas