Vegetable market chain analysis in Amhara National Regional State: the case of Fogera Woreda, South Gondar Zone
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Akalu, A.W. Haramaya University, Haramaya (Ethiopia). 2007. Vegetable market chain analysis in Amhara National Regional State: the case of Fogera Woreda, South Gondar Zone. MSc thesis (Agricultural Economics). 101p. Haramaya (Ethiopia): Haramaya University.
Permanent link to this item: http://hdl.handle.net/10568/623
Vegetable as a group of crops from the horticulture category has a very wide importance both as a source of food and health care. On the contrary, the level of consumption is very low for reasons of unavailability and market imperfection. Even with limited pocket areas of production, the product suffered low price and lack of market. As a result, glut and spoilage are common. Measures to solve the problem were limited partly for reasons of little research and lack of attention. Hence, this study was initiated to partially fill the gap. The overall objective of the study was to analyze vegetable market chain with a focus on onion and tomato. The specific objectives were to assess structure-conduct-performance of vegetable marketing, analyze market supply determinants, identify problems and opportunities in vegetable production and marketing For the purpose of completeness demand analysis was also conducted. Formal and informal data collection tools of both primary and secondary data were used. Econometric models like Heckman two stages (for market supply analysis) and double-log linear model (for consumption analysis) were the tools used for the analysis. The cost-revenue calculation results indicated that on the average a farmer profited 8,191ETB from shallot, 13,141ETB from onion, and 5,111ETB from tomato per hectare production (Assuming an average price of 1.75 ETB, 1.65 ETB and 0.75ETB per kg prices in that order). However, this potential benefit is under challenges of imperfect marketing. The market conduct is characterized by unethical practices of cheating and information collusion that led to uncompetitive market behavior even though the calculated concentration ratio did not indicate oligoposony market behavior (26.15%). With an estimated volume of annual production of 324,412Ql of onion and 40,402Ql of tomato the estimated marketed proportion according to the respondents was (95 percent of onion and 86 percent of tomato). This showed that Fogera is entering to commercialization albeit the challenge in marketing. For success of the started race, measures to improve marketing like correcting the malpractices, implementation of defined standard and grades, provision of market information, networking with the central potential buyers like urban cooperatives or groups at Addis Ababa seem important. Capacity building for all actors in the chain and strong extension service on product handling and marketing to farmers should get focus. Volume supplied to market were also analyzed and the same variables in the case of land allocation for onion also came up significant for onion supply but un the case of tomato it were experience and number of oxen owned by the respondent that came up with significant coefficients. The average monthly level of consumption was assessed when the Fogera produce was at the market and was used to see some properties of consumers. Based on the 91 sampled consumers from Gondar, Bahir Dar and Woreta towns it had been revealed that the xvi average monthly income per household was 1,372.21 ETB. Average family size was 5.7 where the monthly average consumption of tomato per household per month was obtained to be 5.11 kg of tomato and onion 7.34 kg onion. A household spent on the average about 44 percent (603.10ETB) of their monthly income on food from which 7.62 percent (45.96 ETB) was spent on vegetables. For assessing accessibility, the average distance a certain consumer measured per single feet trip was taken and the average was estimated from the respondents to be 0.485 hours. More than 97 percent of respondents reflected a strong interest on quality. According to the survey data, on the average respondents expressed their willingness to add 0.046 ETB per kg for tomato and 0.05 ETB for a kg of onion. Econometric analyses of demand revealed that from the proposed determinants it was income, purchase frequency, distance, own price and single purchase lot that were identified to be significant for both vegetables.