Factor affecting outlet choice of onion producers Northwest Ethiopia in multivariate probit approach
Mossie, Habtamu | Berhanie, Zewdu | Alemayehu, Getachew | Yildiz, Fatih
Onion is an important vegetable product for food security and income generation to a large proportion of the rural household of Ethiopia. Enhancing onion farmers to reach markets and actively engage in the markets as a key challenges influencing onion production in Ethiopia. The perishability nature of onion necessitates an effective marketing channel choice decision. So the objective of this study was the analysis of factors affecting market outlet choice decision of farmers. Multi-stage sampling procedure was used to select the sample kebeles and households, whereby 275 farm household using a stratified random sampling method for this study. Both primary and secondary data were collected to address the objectives. The collected data were analyzed using descriptive statistics and an econometric model by using SPPS and STATA software. Multivariate probit model was used to analyze factors affecting market outlet choices of smallholder onion producers. Multivariate probit model result showed that the probability of choose wholesales, retailer, rural collectors, and consumers market outlet was significantly affected by post-harvest value addition, amount of onion production, land size allocated for onion production, ownership of motor pump, educational status of the household head and the total livestock owned. Based on the finding the government and the concerned stakeholders should focus on promoting the dissemination of improved onion varieties and input of production, intensification of land for onion, expanding of post-harvest value addition activities, strengthening of the existence of formal and informal education and promote and encourage onion farmers on investment onion production.
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