Determinants of Honey Marketing in Domestic Market Channel: The case of Bahir Dar Zuria Woreda, Amhara Region, Ethiopia

Abstract

This study was aimed at analysing the determinants affecting the market channel choices of honey producers in Bahir Dar Zuria  Woreda of West Gojjam Administration Zone. The study largely used primary data collected from 125 randomly selected beekeepers in the Woreda through structured questionnaire. Both descriptive statistics and econometric models were used for analysis. The descriptive statistics result indicated that 69.6% of sample households chose collector market channel, 9.6% chose cooperative market
channel and 20.8% chose consumer market channel to sell their honey. Multivariate probit model was used to identify determinants of market channel choices and the results showed that experience of beekeeping, cooperative membership, transport facility and time of selling of honey product had significant effect on honey producers’ choice of market outlets. The probability of choosing local collector, cooperatives and consumer outlets is 60.7%, 19.6% and 34.9%, respectively. Local collectors were the most likely chosen market outlets while cooperatives were the less likely chosen market outlets. The combined probabilities of households to jointly choose the three
market outlets was 0.07%, which was lower than the likelihood of not choosing all market outlets (which was 6%). This suggested the need to invest on improving the present transportation facilities, market information delivery system and establishing strong farmers’ cooperatives to assist beekeepers so that they choose the more rewarding market channels.

Keywords: market channel choice, honey, multivariate probit model, Bahir Dar Zuria district