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Determinants Of The Choice Of Marketing Channels Amongst Small-Scale Maize Farmers: The Case Of Bura-Borama Kebele, Southern Ethiopia

Abstract: 

The objective of this study is to identify the transaction cost factors and household characteristics that influence the decision of marketing channel choice by smallholder maize farmers in rural kebele of Bura Borama, district of Shashemene. The main hypothesis of the study is that farmers' choice of marketing channel is influenced by transaction costs (e.g. information, transport, negotiation and monitoring costs) and household characteristics (e.g. age, education). Households facing higher transaction costs are excluded from using certain marketing channels, even if these market outlets exist. A multinomial logit model is used for empirical estimation using data from a survey of 103 maize farmers of Bura Borama. Empirical findings of this study reveal that the most important factors that explain farmers' decision of marketing channel choice are farmers' age, years of education, farm size, access to transportation, access to information, time spent to accomplish a one time sales and a possible delay in payment during transaction. The result suggests that policy intervention of government and/or other concerned institutions should focus on reducing some of these transaction costs through the provision of institutional support to smallholder maize farmers. These supports could be in the form of improving access to market information, establishing producers' organization and improving the rural road networks which link production areas to markets

Corporate Author: 
Getnet Alemu & Worku Gebeyehu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher: 
Ethiopian Economic Association (EEA)
ISBN/ISSN: 
978-99944-54-20-7
Primary Descriptors: 

Transaction costs, marketing channel choice

Secondary Descriptor: 

maize, Multinomial logit

Geographic Descriptors: 
Bura-Borama Kebele, Southern Ethiopia
Cataloge Date: 
02/27/2013
Broad Subject heading: 
smallholder farmers
Call Number: 
330.963 PRO 2011
Serial Key Title: 
Proceedings of the Eighth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Volume: 
III
Publication date: 
2013-06-27 23:11:00
Forum or Discussion date: 
2013-02-27 15:43:12
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Book
Current frequency: 
Annualy
Author: