Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia

Ayele Tesfahun Gashu; Adane Melak Beyene

doi:doi:10.11648/j.ijae.20220704.16

| Peer-Reviewed

Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia

Ayele Tesfahun Gashu, Adane Melak Beyene

Published in International Journal of Agricultural Economics (Volume 7, Issue 4)

Received: 11 July 2022 Accepted: 15 August 2022 Published: 29 August 2022

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The out-datedness of existing research outputs targeting the study area, the availability of recommendation to have a new study on the thematic area, and above all, the compliance of smallholder farmers in getting fair benefit from rice marketing, that emanates from poor service quality in rice processing, as it has a direct influence on rice output market, motivate the authors to have further study. Therefore, this study intends to identify drivers of market outlet choice by smallholder rice producers in Fogera district using primary and secondary data collected from 212 sampled households in 2020. Data were analyzed using descriptive statistics and a multivariate probit model. Accordingly, 69.81 % of sampled households preferred processors market outlet choice while 21.23 % chose retailors market outlet choice. The results from the econometric model showed that rice market outlet choice was significantly influenced by sex, rice farming experience, distance from the nearest road, market information, and distance from the nearest market at various levels of significance. Wholesaler market outlet choice was negatively influenced by sex and rice farming experience at 5% and 10% significance levels, and positively influenced by access to market information at 10% significance level. Processor market outlet choice was positively influenced by rice farming experience and access to market information at 10 % and 1 % significance levels, and negatively influenced by distance to the nearest road at 5% significance level. Retailor market outlet was negatively influenced by sex and access to information at 5% significance level. Collector market outlet was negatively influenced by cooperative membership and distance from the nearest market at 10% and 5% significance levels, and positively influenced by access to market information at 5% significance level. As the majority of rice producers have chosen processor market outlet, in a situation where there is compliance on rice processing quality, organizing rice producers-based processing cooperative, working on trust building between producers and processors, and promoting paddy marketing were forwarded as recommendations for rice sector to maximize producers’ probability to reap what they sow.

Published in	International Journal of Agricultural Economics (Volume 7, Issue 4)
DOI	10.11648/j.ijae.20220704.16
Page(s)	198-203
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Fogera, Market Outlet, Multivariate Probit, Rice

References

[1]	Abdullah, F. R., Riaz A., Sajjad A., Abbas, A. C., Waqar, A., Izhar U. D., Aasir, I. (2017). Determinants of commercialization and its impact on the welfare of smallholder rice farmers by using Heckman’s two-stage approach. Journal of the Saudi Society of Agricultural Sciences.
[2]	Zerssa, G., Feyssa, D., Kim, D.-G. Eichler-Löbermann, B. (2021). Challenges of Smallholder Farming in Ethiopia and Opportunities by Adopting Climate-Smart Agriculture. Agriculture 11 (192).
[3]	World Food Program. (2019). Changing lives for smallholder farmers. Via Cesare Giulio Viola 68/70, 00148 Rome, Italy.
[4]	Maarten, E., Florian, S. (2016). Global demand for food is rising. Can we meet it?
[5]	Food and Agriculture Organization. (2017). The future of food and agriculture – Trends and challenges. Rome.
[6]	Gebremedhin, B., Hoekstra, D. Tegegne, A. (2006). Commercialization of Ethiopian agriculture: Extension service from input supplier to knowledge broker and facilitator. IPMS (Improving Productivity and Market Success) of Ethiopian Farmers Project Working Paper 1. ILRI (International Livestock Research Institute), Nairobi, Kenya. 36 pp.
[7]	Masimba, T. (2019) Ethiopia: Fix Agriculture. Africa Renewal Online Magazine.
[8]	Central Statistical Agency. (2020). Agricultural Sample Survey 2019/20 (2012 E.C.), Volume 1, Report on Area, and Production of Major Crops (Private Peasant Holdings, Meher Season), Statistical Bulletin 587, Addis Ababa, Ethiopia.
[9]	Central Statistical Agency. (2010). Report on Area and Production of Crops (Private Peasant Holdings, Meher Season). Agricultural Sample Survey 2009/10 (2002 E.C.), Volume 4. Addis Ababa, Ethiopia.
[10]	Alemu, D., John, T. (2020) The Emerging Importance of Rice as A Strategic Crop in Ethiopia. Working paper, APRA.
[11]	Fogera District Agricultural and Rural Development. (2019). Report of agricultural office in Fogera district.
[12]	Lema, T. Z., Tessema, S. A., Abebe, F. A. (2017) Analysis of the technical efficiency of rice production in Fogera district of Ethiopia: A stochastic frontier approach. Ethiop. J. Econ. 2017, 26, 88–108.
[13]	Yamane, T. (1967). Statistics. An Introductory Analysis. Second edition. Harper and Row. New York, 919.
[14]	Tura, E. G, Hamo, T. K. (2018). Determinants of Tomato Smallholder Farmers Market Outlet Choices in West Shewa, Ethiopia. 4 (2), pp. 454-460.
[15]	Mohammed, H., Birhane, Z., Alemayehu, G. (2019). Determinants of market outlet choice decision of tomato producers in Fogera woreda, South Gonder zone, Ethiopia. Cogent food and agriculture, PP 1-20.
[16]	Mirie, T., Melese, T., Birara, A. (2019). Determinants of market outlet choices by smallholder tef farmers in Dera district, South Gondar Zone, Amhara National Regional State, Ethiopia: a multivariate probit approach. Journal of economic structure. pp 1-14.
[17]	Wosene, G., Ketema, M. Ademe, A. (2018). Factors affecting market outlet choices of pepper producers in Wonberma district, Northwest Ethiopia: multivariate probit approach, Cogent Food & Agriculture, 4: 1.
[18]	Lapar, M. L., Nguyen, N. T., Nguyen, N. Q., Jabbar, M., Tisdell, C., Staal, S. (2009) Market Outlet Choices in the Context of Changing Demand for Fresh Meat: Implications for Smallholder Inclusion in Pork Supply Chain in Vietnam.
[19]	Honja, T. Geta, E., Mitiku, A. (2017). Determinants of Market Outlet Choice of the Smallholder Mango Producers: The Case of Boloso Bombe Woreda, Wolaita Zone, Southern Ethiopia: A Multivariate Probit Approach. 17: 2, 2249-4626.

Cite This Article

Plain Text BibTeX RIS

APA Style

Ayele Tesfahun Gashu, Adane Melak Beyene. (2022). Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia. International Journal of Agricultural Economics, 7(4), 198-203. https://doi.org/10.11648/j.ijae.20220704.16

Copy | Download

ACS Style

Ayele Tesfahun Gashu; Adane Melak Beyene. Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia. Int. J. Agric. Econ. 2022, 7(4), 198-203. doi: 10.11648/j.ijae.20220704.16

Copy | Download

AMA Style

Ayele Tesfahun Gashu, Adane Melak Beyene. Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia. Int J Agric Econ. 2022;7(4):198-203. doi: 10.11648/j.ijae.20220704.16

Copy | Download

@article{10.11648/j.ijae.20220704.16,
  author = {Ayele Tesfahun Gashu and Adane Melak Beyene},
  title = {Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia},
  journal = {International Journal of Agricultural Economics},
  volume = {7},
  number = {4},
  pages = {198-203},
  doi = {10.11648/j.ijae.20220704.16},
  url = {https://doi.org/10.11648/j.ijae.20220704.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20220704.16},
  abstract = {The out-datedness of existing research outputs targeting the study area, the availability of recommendation to have a new study on the thematic area, and above all, the compliance of smallholder farmers in getting fair benefit from rice marketing, that emanates from poor service quality in rice processing, as it has a direct influence on rice output market, motivate the authors to have further study. Therefore, this study intends to identify drivers of market outlet choice by smallholder rice producers in Fogera district using primary and secondary data collected from 212 sampled households in 2020. Data were analyzed using descriptive statistics and a multivariate probit model. Accordingly, 69.81 % of sampled households preferred processors market outlet choice while 21.23 % chose retailors market outlet choice. The results from the econometric model showed that rice market outlet choice was significantly influenced by sex, rice farming experience, distance from the nearest road, market information, and distance from the nearest market at various levels of significance. Wholesaler market outlet choice was negatively influenced by sex and rice farming experience at 5% and 10% significance levels, and positively influenced by access to market information at 10% significance level. Processor market outlet choice was positively influenced by rice farming experience and access to market information at 10 % and 1 % significance levels, and negatively influenced by distance to the nearest road at 5% significance level. Retailor market outlet was negatively influenced by sex and access to information at 5% significance level. Collector market outlet was negatively influenced by cooperative membership and distance from the nearest market at 10% and 5% significance levels, and positively influenced by access to market information at 5% significance level. As the majority of rice producers have chosen processor market outlet, in a situation where there is compliance on rice processing quality, organizing rice producers-based processing cooperative, working on trust building between producers and processors, and promoting paddy marketing were forwarded as recommendations for rice sector to maximize producers’ probability to reap what they sow.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia
AU  - Ayele Tesfahun Gashu
AU  - Adane Melak Beyene
Y1  - 2022/08/29
PY  - 2022
N1  - https://doi.org/10.11648/j.ijae.20220704.16
DO  - 10.11648/j.ijae.20220704.16
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 198
EP  - 203
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20220704.16
AB  - The out-datedness of existing research outputs targeting the study area, the availability of recommendation to have a new study on the thematic area, and above all, the compliance of smallholder farmers in getting fair benefit from rice marketing, that emanates from poor service quality in rice processing, as it has a direct influence on rice output market, motivate the authors to have further study. Therefore, this study intends to identify drivers of market outlet choice by smallholder rice producers in Fogera district using primary and secondary data collected from 212 sampled households in 2020. Data were analyzed using descriptive statistics and a multivariate probit model. Accordingly, 69.81 % of sampled households preferred processors market outlet choice while 21.23 % chose retailors market outlet choice. The results from the econometric model showed that rice market outlet choice was significantly influenced by sex, rice farming experience, distance from the nearest road, market information, and distance from the nearest market at various levels of significance. Wholesaler market outlet choice was negatively influenced by sex and rice farming experience at 5% and 10% significance levels, and positively influenced by access to market information at 10% significance level. Processor market outlet choice was positively influenced by rice farming experience and access to market information at 10 % and 1 % significance levels, and negatively influenced by distance to the nearest road at 5% significance level. Retailor market outlet was negatively influenced by sex and access to information at 5% significance level. Collector market outlet was negatively influenced by cooperative membership and distance from the nearest market at 10% and 5% significance levels, and positively influenced by access to market information at 5% significance level. As the majority of rice producers have chosen processor market outlet, in a situation where there is compliance on rice processing quality, organizing rice producers-based processing cooperative, working on trust building between producers and processors, and promoting paddy marketing were forwarded as recommendations for rice sector to maximize producers’ probability to reap what they sow.
VL  - 7
IS  - 4
ER  -

Copy | Download

Author Information

Ayele Tesfahun Gashu

Ethiopian Institute of Agricultural Research, Fogera National Rice Research and Training Centre, Bahir Dar, Ethiopia
Adane Melak Beyene

Ethiopian Institute of Agricultural Research, Fogera National Rice Research and Training Centre, Bahir Dar, Ethiopia

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Ayele Tesfahun Gashu, Adane Melak Beyene. (2022). Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia. International Journal of Agricultural Economics, 7(4), 198-203. https://doi.org/10.11648/j.ijae.20220704.16

Copy | Download

ACS Style

Ayele Tesfahun Gashu; Adane Melak Beyene. Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia. Int. J. Agric. Econ. 2022, 7(4), 198-203. doi: 10.11648/j.ijae.20220704.16

Copy | Download

AMA Style

Ayele Tesfahun Gashu, Adane Melak Beyene. Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia. Int J Agric Econ. 2022;7(4):198-203. doi: 10.11648/j.ijae.20220704.16

Copy | Download

@article{10.11648/j.ijae.20220704.16,
  author = {Ayele Tesfahun Gashu and Adane Melak Beyene},
  title = {Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia},
  journal = {International Journal of Agricultural Economics},
  volume = {7},
  number = {4},
  pages = {198-203},
  doi = {10.11648/j.ijae.20220704.16},
  url = {https://doi.org/10.11648/j.ijae.20220704.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20220704.16},
  abstract = {The out-datedness of existing research outputs targeting the study area, the availability of recommendation to have a new study on the thematic area, and above all, the compliance of smallholder farmers in getting fair benefit from rice marketing, that emanates from poor service quality in rice processing, as it has a direct influence on rice output market, motivate the authors to have further study. Therefore, this study intends to identify drivers of market outlet choice by smallholder rice producers in Fogera district using primary and secondary data collected from 212 sampled households in 2020. Data were analyzed using descriptive statistics and a multivariate probit model. Accordingly, 69.81 % of sampled households preferred processors market outlet choice while 21.23 % chose retailors market outlet choice. The results from the econometric model showed that rice market outlet choice was significantly influenced by sex, rice farming experience, distance from the nearest road, market information, and distance from the nearest market at various levels of significance. Wholesaler market outlet choice was negatively influenced by sex and rice farming experience at 5% and 10% significance levels, and positively influenced by access to market information at 10% significance level. Processor market outlet choice was positively influenced by rice farming experience and access to market information at 10 % and 1 % significance levels, and negatively influenced by distance to the nearest road at 5% significance level. Retailor market outlet was negatively influenced by sex and access to information at 5% significance level. Collector market outlet was negatively influenced by cooperative membership and distance from the nearest market at 10% and 5% significance levels, and positively influenced by access to market information at 5% significance level. As the majority of rice producers have chosen processor market outlet, in a situation where there is compliance on rice processing quality, organizing rice producers-based processing cooperative, working on trust building between producers and processors, and promoting paddy marketing were forwarded as recommendations for rice sector to maximize producers’ probability to reap what they sow.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Drivers of Market Outlet Choice: Evidence from Smallholder Rice Producers in Northwest Ethiopia
AU  - Ayele Tesfahun Gashu
AU  - Adane Melak Beyene
Y1  - 2022/08/29
PY  - 2022
N1  - https://doi.org/10.11648/j.ijae.20220704.16
DO  - 10.11648/j.ijae.20220704.16
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 198
EP  - 203
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20220704.16
AB  - The out-datedness of existing research outputs targeting the study area, the availability of recommendation to have a new study on the thematic area, and above all, the compliance of smallholder farmers in getting fair benefit from rice marketing, that emanates from poor service quality in rice processing, as it has a direct influence on rice output market, motivate the authors to have further study. Therefore, this study intends to identify drivers of market outlet choice by smallholder rice producers in Fogera district using primary and secondary data collected from 212 sampled households in 2020. Data were analyzed using descriptive statistics and a multivariate probit model. Accordingly, 69.81 % of sampled households preferred processors market outlet choice while 21.23 % chose retailors market outlet choice. The results from the econometric model showed that rice market outlet choice was significantly influenced by sex, rice farming experience, distance from the nearest road, market information, and distance from the nearest market at various levels of significance. Wholesaler market outlet choice was negatively influenced by sex and rice farming experience at 5% and 10% significance levels, and positively influenced by access to market information at 10% significance level. Processor market outlet choice was positively influenced by rice farming experience and access to market information at 10 % and 1 % significance levels, and negatively influenced by distance to the nearest road at 5% significance level. Retailor market outlet was negatively influenced by sex and access to information at 5% significance level. Collector market outlet was negatively influenced by cooperative membership and distance from the nearest market at 10% and 5% significance levels, and positively influenced by access to market information at 5% significance level. As the majority of rice producers have chosen processor market outlet, in a situation where there is compliance on rice processing quality, organizing rice producers-based processing cooperative, working on trust building between producers and processors, and promoting paddy marketing were forwarded as recommendations for rice sector to maximize producers’ probability to reap what they sow.
VL  - 7
IS  - 4
ER  -

Copy | Download