Factors Affecting Chickpea Market Chain: The Case of Dembia District, North Gondar Zone, Ethiopia

Abstract

Chickpea is the 4th largest foreign currency earning crop of Ethiopia following coffee, sesame and haricot bean and the major cash crop grown in the study area mainly for market. This study was aimed to examine analysis of chickpea market chain in Dembia district. For analysis both primary and secondary data were employed. The primary data were collected from 150 chickpea producers and 30 traders by individual interview schedule based on two stage random sampling. Heckman two-stage model was used to identify factors affecting market participation and volume of sale of chickpea. As the result indicates, the age of household head and non-farm income have affected market participation decision and volume of sale negatively and significantly while education level of the household head, access to market information, farming experience, land allocated to chickpea and lagged market price have been  influenced market participation and volume of supply of chickpea  positively and significantly. Based on the findings, the government and other policy makers have to increase marketing information and ability of chickpea farmers through opportunities like mass media, extension service, and other means of capacity building.

Keywords:  Heckman Two-step model, Market Participation, Volume of Sale of Chickpea, and Dembia, Ethiopia.

DOI: 10.7176/JMCR/66-02

Publication date:March 31^st 2020