Analyze Structure, Conduct, and Performance (SCP) of Maize Markets in Case of Alefa District Northwestern Ethiopia

Abstract

This study examined the major market channels, and evaluate the market margins for key maize marketing channels in Alefa District, Central Gondar Zone of Amhara Regional State. Both primary and secondary data sources for the study were collected. Primary data were collected through personal interviews from a total of 198 producers and 34 traders. Descriptive statistics was employed to describe the socio-economic characteristics of farm households, and to analyze market related data collected from maize traders. The results show that wholesalers and rural assemblers are the most important buyers of maize from producers, accounting for 44 and 36.35% respectively. Market concentration ratio of 74.07% indicates that the maize market in the study area is characterized as oligopolistic. The result of the study also showed that, maize average production and yield were 18.03 quintals per household and 34.37 quintals per hectare, respectively. The major constraints for maize production and marketing of households in the study area include high price of fertilizers, timely availability of improved seeds, large number of unlicensed traders in the markets, climate change (occurrence of drought, pest/diseases), availability of credit access and non-transparent taxation system. The opportunities comprises presence of potential farmers’ cooperatives to supply fertilizer and improved maize seeds, other farm inputs, and reliable and timely market information sourced from government department; maize productive potential of the area; improved trends of quality of maize; and creating demand for other crops. Finally the study recommends the need to strengthen and promote cooperatives to further exploit their economies of scale through diversifying their intermediary services both in the input and output markets of maize, market information and extension systems.

Keywords: Concentration ratio, Cooperatives, Maize, Oligopolistic.

DOI: 10.7176/JMCR/70-01

Publication date:August 31^st 2020