Determinants of haricot bean market participation in Misrak Badawacho District, Hadiya zone, Southern Nations Nationalities and Peoples Regional State, Ethiopia

Abstract

This study aimed at analyzing commodity level determinants of output side market participation of haricot bean based on cross sectional primary data collected from 123 randomly selected haricot bean producers sample households in six kebeles in Misrak Badawacho District, Hadiya Zone, Southern Nations Nationalities and Peoples Regional State, Ethiopia. The descriptive result indicates about 68 % of haricot bean farmers participated in haricot bean market and on average 5.78 quintal of haricot bean was supplied to the market. The results of the Heckman two stage model indicate that number of oxen owned, access to communication facilities, use of credit, membership in cooperative, household size and distance to all weather road have significant influence on the probability of market participation decision. Whereas, number of equine owned, distance to the nearest market, cultivated land size, perception on lagged market price, use of credit, rent in and shared in farmland, livestock ownership, and inverse mills ratio were found to significantly affect the level of market participation. This implies the need to improve access to communication facilitiesto strengthen market information delivery systems; strengthening institutional arrangement like cooperatives through which farmers can take the advantage of bargaining power in input and output market; to institute productivity improving measures to increase the productivity of haricot bean; and strengthening the rural microfinance system to address the credit needs of farmers so as to enhance the benefit of smallholder farmers from market participation.