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Vegetable Market Performance in Smallholders Production System: The Case of Lake Tana Basin, Ethiopia

Author

Listed:
  • Marelign Adugna*

    (School of Agricultural Economics and Agribusiness Management, Haramaya University, Ethiopia)

  • Mengistu Ketema

    (School of Agricultural Economics and Agribusiness Management, Haramaya University, Ethiopia)

  • Degye Goshu

    (Department of Economics, Kotebe Metropolitan University, Addis Ababa, Ethiopia)

  • Sisay Debebe Kaba

    (Department of Rural Development and Agricultural Extension, Arba Minch University, Ethiopia)

Abstract

Lake Tana basin is one of the most potential vegetable production areas in Ethiopia. However, production in this region has been carried out at smallholders’ level with poor marketing infrastructure. Hence, this study was aimed to examine the structure and performance of vegetable marketing in the Lake Tana basin. Multistage random sampling mixed with non probability sampling techniques were employed to collect data from 385 smallholder vegetable producing farmers and 107 vegetable traders from three districts and two major town markets. Data were analyzed using market structure and performance indicators. The result of the analysis showed that market structure in the study area could be characterized by weak oligopolistic market with little chance of market participants to influence market price. Storage loss and transport cost were found the two largest cost components of vegetable marketing in the study area. Net marketing margin and producers’ share of the consumers’ price could be improved by shortening the distance between the producer and urban consumer or reducing the intermediaries involved. Establishing farmers’ group marketing with communication access together with least cost storage and transport technologies should be encouraged to improve vegetable marketing performance.

Suggested Citation

  • Marelign Adugna* & Mengistu Ketema & Degye Goshu & Sisay Debebe Kaba, 2019. "Vegetable Market Performance in Smallholders Production System: The Case of Lake Tana Basin, Ethiopia," Business, Management and Economics Research, Academic Research Publishing Group, vol. 5(3), pages 40-48, 03-2019.
    • Handle: RePEc:arp:bmerar:2019:p:40-48
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    References listed on IDEAS

    as
    1. Johann du Pisanie, 2013. "Concentration Measures as an element in testing the structure-conduct-performance paradigm," Working Papers 345, Economic Research Southern Africa.
    2. Michael O. Nyong, 1990. "Market Structure, Risk and Profitability in Banking: the Quiet Life Hypothesis and Relative Economic Efficiency," Development Policy Review, Overseas Development Institute, vol. 8(2), pages 179-201, June.
    3. Pritchard, Norris T., 1969. "A Framework for Analysis of Agricultural Marketing Systems in Developing Countries," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 21(3), pages 1-8, July.
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