Determinants of Market Outlet Choice of the Smallholder Rice Producers in Northwest Ethiopia

Abstract

Some studies have been conducted on determinants of rice market participation in fogera plain. Different studies recommended to have studies on determinants of rice market outlet choice. Additionally, this investigation has recommended from the context that rice production volume is increasing from year to year and farmers are complaining about poor service quality on rice processing. Therefore, this study was conducted to identify determinants of market outlet choice of smallholder rice producers in Fogera district. To achieve this objective, both primary and secondary data were collected in 2020 cropping season. Descriptive statistics and multivariate probit model were used to analyze the data of 212 sample rice producers. From sampled rice producers, about 69.81% of them choices processor outlet choice and about 21.23% of sampled households choices retail market outlet choices. The result of the study indicated that sex, farming experience of rice, distance from the nearest road, market information and distance from the nearest market were significantly influence the rice market outlet choice at different level of significance. Wholesaler rice market outlet choice was negatively influenced by sex and rice farming experience at 5% and 10% significance level, and positively influenced by access to market information at 10% of significance level. Processor rice market outlet choice was positively influenced by rice farming experience and access to market information at 10 % and 1% significance level, and negatively influenced by distance to the nearest road at 5% significance level. Retailors market outlet choice was negatively influenced by sex and access to information at 5% significance level.  Based on the findings of the study, it has suggested that strengthening cooperatives to a level of giving milling service to rice producers is vital.

Keywords: market outlet, multivariate probit model, Rice

DOI: 10.7176/JESD/13-15-02

Publication date:August 31^st 2022