Determinants of Market Participation Performance among Poultry Product Producers: The Case of Lemo District of Hadiya Zone, Southern Ethiopia

Abstract

In the study area, poultry products have been perceived to have high market value. Despite poultry products market value, determinants of poultry products market participation has not been studied and quantified. Therefore, this paper aims to assess determinants of market participation performance among poultry producers. The data were generated by individual interview and group discussion using pre tested semi structured questionnaires and checklist. Heckman two stage econometric model was used to investigate factors affecting production and market participation of poultry products and volume of production and market supply. The volume of poultry products produced was found to be the most important and significant variable influencing the decision to participate in poultry product market positively. However, distance from the market and the level of education affected poultry product market participation negatively. Moreover, the volume of poultry products produced and market price information are the significant determinant factors of the quantity of poultry products supplied positively. However, distance from the development center and education level was found to be negatively related. The channel analysis indicated a very short route as compared to other agricultural commodities. The main market participants for poultry market were found to be farmer traders, urban retailers and super markets. Besides mini markets, all actors involved in poultry marketing were market participants for egg also. The commercial behavior of farmers can be enhanced by the policy makers acting on those factors which influence market performance and availing timely market price information.

Keywords: poultry producers, Heckman two-stage model, market participation, Ethiopia