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Market Chain Analysis of Agro-forestry Products: The Case of Fruit at Tembaro District, Kembata Tembaro Zone South Ethiopia

Received: 29 June 2015     Accepted: 1 July 2015     Published: 10 August 2015
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Abstract

Ethiopia has a variety of fruit crops grown in different agro ecological Zones by small farmers, mainly as a source of income as well as food. The nature of the product on one hand and the lack of market system on the other hand have resulted in low producers’ price and hence low benefit by the producers. This study was carried out to analyse the market chain of agroforestry products such as mango, avocado and banana. Two kebeles were selected based on the presence of fruit production. Data was collected from 140 mango, banana and avocado producing households, 7 local collectors and 13 retailers through structured interview, focus group discussion, key informant interviews, market assessment as well as field observation. Structure, Conduct and Performance (SCP) approach was used to analyze avocado, banana and mango market also OLS (Multiple linear regression model) was used to analyzed factors that determine banana, mango and avocado market supply of the producers in the area. The market actors in the survey period were producers, rural assemblers, retailers, and consumers. Banana, mango and avocado market structure in the area shows the competitive nature. Among the different variables that were hypothesized as determining factors for volume of marketable supply the econometric result showed that price, access to extension service, distance, access to market information and quantity produced for mango and avocado were significant whereas active family size, distance, quantity produced, access to market information, and price for banana were significant. For each fruit types there are four marketing channels. Among the channels the producer-retailer-consumer channel was identified as the first important marketing channel in terms of volumes of each fruits transacted while the producer-local collector-consumer channel was identified as the least marketing channel in terms of volumes of each fruits transacted. Fruit trading in the study area is considered as a low profile activity mainly handled by female traders. There is a tradition that trading fruits in the study area is not by male. So, it is strongly recommended that stockholders will give awareness creation for the society in order to minimize such kind of tradition from the society and to encourage male fruit traders in the study area.

Published in International Journal of Business and Economics Research (Volume 4, Issue 4)
DOI 10.11648/j.ijber.20150404.13
Page(s) 201-216
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Agroforestry, Market Chain Analysis, Structure, Conduct and Performance

References
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  • APA Style

    Nega Mateows, Teshale Wolde Amanuel, Zebene Asfaw. (2015). Market Chain Analysis of Agro-forestry Products: The Case of Fruit at Tembaro District, Kembata Tembaro Zone South Ethiopia. International Journal of Business and Economics Research, 4(4), 201-216. https://doi.org/10.11648/j.ijber.20150404.13

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    ACS Style

    Nega Mateows; Teshale Wolde Amanuel; Zebene Asfaw. Market Chain Analysis of Agro-forestry Products: The Case of Fruit at Tembaro District, Kembata Tembaro Zone South Ethiopia. Int. J. Bus. Econ. Res. 2015, 4(4), 201-216. doi: 10.11648/j.ijber.20150404.13

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    AMA Style

    Nega Mateows, Teshale Wolde Amanuel, Zebene Asfaw. Market Chain Analysis of Agro-forestry Products: The Case of Fruit at Tembaro District, Kembata Tembaro Zone South Ethiopia. Int J Bus Econ Res. 2015;4(4):201-216. doi: 10.11648/j.ijber.20150404.13

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  • @article{10.11648/j.ijber.20150404.13,
      author = {Nega Mateows and Teshale Wolde Amanuel and Zebene Asfaw},
      title = {Market Chain Analysis of Agro-forestry Products: The Case of Fruit at Tembaro District, Kembata Tembaro Zone South Ethiopia},
      journal = {International Journal of Business and Economics Research},
      volume = {4},
      number = {4},
      pages = {201-216},
      doi = {10.11648/j.ijber.20150404.13},
      url = {https://doi.org/10.11648/j.ijber.20150404.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20150404.13},
      abstract = {Ethiopia has a variety of fruit crops grown in different agro ecological Zones by small farmers, mainly as a source of income as well as food. The nature of the product on one hand and the lack of market system on the other hand have resulted in low producers’ price and hence low benefit by the producers. This study was carried out to analyse the market chain of agroforestry products such as mango, avocado and banana. Two kebeles were selected based on the presence of fruit production. Data was collected from 140 mango, banana and avocado producing households, 7 local collectors and 13 retailers through structured interview, focus group discussion, key informant interviews, market assessment as well as field observation. Structure, Conduct and Performance (SCP) approach was used to analyze avocado, banana and mango market also OLS (Multiple linear regression model) was used to analyzed factors that determine banana, mango and avocado market supply of the producers in the area. The market actors in the survey period were producers, rural assemblers, retailers, and consumers. Banana, mango and avocado market structure in the area shows the competitive nature. Among the different variables that were hypothesized as determining factors for volume of marketable supply the econometric result showed that price, access to extension service, distance, access to market information and quantity produced for mango and avocado were significant whereas active family size, distance, quantity produced, access to market information, and price for banana were significant. For each fruit types there are four marketing channels. Among the channels the producer-retailer-consumer channel was identified as the first important marketing channel in terms of volumes of each fruits transacted while the producer-local collector-consumer channel was identified as the least marketing channel in terms of volumes of each fruits transacted. Fruit trading in the study area is considered as a low profile activity mainly handled by female traders. There is a tradition that trading fruits in the study area is not by male. So, it is strongly recommended that stockholders will give awareness creation for the society in order to minimize such kind of tradition from the society and to encourage male fruit traders in the study area.},
     year = {2015}
    }
    

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  • TY  - JOUR
    T1  - Market Chain Analysis of Agro-forestry Products: The Case of Fruit at Tembaro District, Kembata Tembaro Zone South Ethiopia
    AU  - Nega Mateows
    AU  - Teshale Wolde Amanuel
    AU  - Zebene Asfaw
    Y1  - 2015/08/10
    PY  - 2015
    N1  - https://doi.org/10.11648/j.ijber.20150404.13
    DO  - 10.11648/j.ijber.20150404.13
    T2  - International Journal of Business and Economics Research
    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
    SP  - 201
    EP  - 216
    PB  - Science Publishing Group
    SN  - 2328-756X
    UR  - https://doi.org/10.11648/j.ijber.20150404.13
    AB  - Ethiopia has a variety of fruit crops grown in different agro ecological Zones by small farmers, mainly as a source of income as well as food. The nature of the product on one hand and the lack of market system on the other hand have resulted in low producers’ price and hence low benefit by the producers. This study was carried out to analyse the market chain of agroforestry products such as mango, avocado and banana. Two kebeles were selected based on the presence of fruit production. Data was collected from 140 mango, banana and avocado producing households, 7 local collectors and 13 retailers through structured interview, focus group discussion, key informant interviews, market assessment as well as field observation. Structure, Conduct and Performance (SCP) approach was used to analyze avocado, banana and mango market also OLS (Multiple linear regression model) was used to analyzed factors that determine banana, mango and avocado market supply of the producers in the area. The market actors in the survey period were producers, rural assemblers, retailers, and consumers. Banana, mango and avocado market structure in the area shows the competitive nature. Among the different variables that were hypothesized as determining factors for volume of marketable supply the econometric result showed that price, access to extension service, distance, access to market information and quantity produced for mango and avocado were significant whereas active family size, distance, quantity produced, access to market information, and price for banana were significant. For each fruit types there are four marketing channels. Among the channels the producer-retailer-consumer channel was identified as the first important marketing channel in terms of volumes of each fruits transacted while the producer-local collector-consumer channel was identified as the least marketing channel in terms of volumes of each fruits transacted. Fruit trading in the study area is considered as a low profile activity mainly handled by female traders. There is a tradition that trading fruits in the study area is not by male. So, it is strongly recommended that stockholders will give awareness creation for the society in order to minimize such kind of tradition from the society and to encourage male fruit traders in the study area.
    VL  - 4
    IS  - 4
    ER  - 

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Author Information
  • College of Agriculture and Natural Resources, Dilla University, Dilla, Ethiopia

  • Wondo Genet collage of Forestry and Natural Resources, Hawassa University, Shashemene, Ethiopia

  • Wondo Genet collage of Forestry and Natural Resources, Hawassa University, Shashemene, Ethiopia

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