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Journal of Global Economics

ISSN: 2375-4389

Open Access

Factors Affecting Potato Market Outlet Choices of Smallholder Potato Producers in Elfeta District, West Shoa Zone, Oromia Regional State, Ethiopia

Abstract

Tadesse Gelmessa Edossa, Lemma Zemedu and Solomon Amsalu Gesese

Regardless of the real production and the economic importance of potato, enhancing potato producers to actively participate in increasing the level of marketing of potato is not well addressed in the study area. Thus, the aim of this study was to identify market outlet choices of small holder potato producers in the Elfeta District of West Shoa zone, Oromia regional state Ethiopia. The primary data were collected from sample of 150 potato producers using random sampling method through structured questionnaires. The data were analyzed using descriptive statistics and econometric models. The result of Multivariate Probit indicated that the likelihood of sampled household heads select collectors, wholesalers, retailers and consumers as market outlets were 39%,55%,49% and 46% respectively. The joint probability to select all outlets were 1.1% and the joint probability of failure to select all outlets were 2.3%. The result of Multivariate Probit indicated that education level of the household heads, family size, current market price of potato, distance from the market and post-harvest value addition activities were significantly influenced collectors outlets. Education level of the household head, family size, current market price of potato and farm size were significantly affected wholesalers outlets. Distance from the market were significantly influenced the retailers outlets. Based on this finding, the study recommended that the government should enhance developing market infrastructure in the form of establishing producer collection point in order to support poor farmers for faster delivering of their product.

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