Article abstract

Journal of Economics and International Business Management

Research Article | Published March 2019 | Volume 7, Issue 1, pp. 9-21.

doi: https://doi.org/10.33495/jeibm_v7i1.19.104

 

Market chain analysis for potato: A case study in Masha District, Southwestern Ethiopia

 


 

 

Fayera Bakala1

Benyam Tadesse2*

 

Email Author

 

1. Department of Natural Resource, College of Agriculture and Natural Resources, Mizan-Tepi University, Ethiopia.
2. Department of Agricultural Economics, College of Agriculture and Natural Resources, Mizan-Tepi University, Ethiopia.


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Citation: Bakala F, Tadesse B (2019). Market chain analysis for potato: A case study in Masha District, Southwestern Ethiopia. J. Econ. Int. Bus. Manage. 7(1): 9-21.

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 Abstract 


This study was initiated to analyze market chain of potato in Masha district. Primary and secondary data were used in this study. Primary data were collected via structured questionnaire from 193 producers, 20 traders and 5 commission agents to capture the socioeconomic and potato marketing factors in 2016. Descriptive as well as econometric analyses were used to analyze the data. The study identified six marketing channels. Producers directly sold highest quantity of potato to traders next to commission agents, whereas, lowest quantities sold to retailers and processors. The estimated output was 4.868 tonnes per hectare. The estimated market concentration ratio for potato traders (72.12%) shows that potato transaction is operating under tight oligopoly market structure. Producers obtained highest share of final consumer price in marketing channel-I, -II and -V. While middle actors resulted for high marketing margin in channel-IV (48.66%), -III (47.98%), -VI (45.69%) and -V (37.29%). In marketing channel-III and -IV intermediaries (traders, wholesalers and retailers) shared about 50% of total benefits. The result revealed that market efficiency was decline with increase in number of intermediaries. Lack of farming inputs were the major constraint in potato production and marketing after damage due to insect and pest. Potato marketing channels in the study area were few and short and only very few actors sell potato after processing. Therefore, (1) attention should be given to potato market expansion and productivity improvement and (2) intervention should be made to enhance processed potato marketing, (3) potato damage due to diseases need urgent study and controlling measures.

Keywords  Marketing channels   market margin   Masha   potato   market supply   determinant   market efficiency  

 

 

Copyright © 2019 Author(s) retain the copyright of this article.

This article is published under the terms of the Creative Commons Attribution License 4.0

 

 

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