Marketing system analysis of vegetables and fruits in Amhara Regional State: survey evidence from Raya Kobo and Harbu Woredas

Abstract

This study attempted to analyze the different aspects of marketing system of vegetable and fruit in Raya Kobo and Harbu woredas, Amhara regional state using different indicators. Probit estimation for determinant of participation probability in vegetable and fruit production and OLS estimation technique were also applied for examining determinants of market supply and demand for vegetable and fruit products. Accordingly, the results showed that lack of genuine and timely market information, poor institutions and arrangements, poor marketing infrastructures (poor storage, cool chain facilities, packaging, weak pre and post harvest handling practices, non scientific grading and standard, etc), long market channel, high and unfair profit margin distribution among the value chain actors with little share to the farmers were observed in both vegetable and fruit market. These are an indicative of poor marketing efficiency and thereby suboptimal operation of the marketing system. The econometric regression result of this study exhibited almost similar results as previous studies however the determinants were not same for all sample crops (onion, tomato, mango and avocado) rather differs from crop to crop. In general, family size, total size of land, extension service, farmer’s experience, average lagged price, distance from main road and age were found to be significant factors (with expected sign) of production participation in vegetables and fruits . Similarly, average current price, distances from main road, age, total size of land, farmers’ experience, sex, number of oxen, and access to market information were found to be significant determinants of market supply of vegetables and fruits. Finally, family size, purchase frequency, amount of single purchase lot, average  current price, income level, average expenditure on food and purchasing, and amount per trip were found to be significant line with expected sign as determinants of demand for vegetables and fruits in the study area. Hence, the results found in this study are clearly an indicative for taking appropriate measures in production side, market infrastructure, arrangements and institutions to improve the inefficient functioning of the marketing system.

Keywords: Marketing system, structure, conduct, performance, channel, margin, production participation, market supply, market demand.