MARKET CHAIN ANALYSIS OF HARICOT BEAN IN KUCHA WOREDA OF GAMO ZONE, SOUTHERN ETHIOPIA

Abstract

This study aims to analyze market chain of haricot bean in the case of Kucha woreda of Gamo zone. The study used cross-sectional data collected from a sample of 378 households selected through three stage sampling techniques and 25 haricot bean traders that were participated in haricot bean marketing during the survey period. Focus group discussion (FGD) and key informant interview were used to generate qualitative data while secondary data were used, from relevant documents to substantiate the primary data collected through pre-tested semi-structured questionnaire. The descriptive statistics used to analyze demographic character of households and major haricot bean market channel of the study area while structure-conduct-performance (SCP), Heckman two-stage and multivariate probit models were applied to analyze performance of haricot bean market, determinants of haricot bean market supply and factors affecting outlet choice decision of haricot bean producers, respectively. The SCP model result shows that, haricot bean market was characterized by strongly oligopolistic market structure with the traders’ concentration ratio of 50.92%. The result of Heckman two – stage model shows that, total quantity of the product, number of extension visit, distance to nearest market, market information and level of education of household head were the main variables that affect market participation decision while market supply is affected by distance to all weathered road, family size of household, total quantity of the product, number of extension visit and distance to market. The result of multivariate probit also shows that, accesses to market information, distance to market, distance to all weathered road, number of extension visit, cultivated land size for haricot bean and awareness about quality standard has more effect on the probability of choosing efficient market in the district. Therefore, strategies aiming at promoting haricot bean volume This study aims to analyze market chain of haricot bean in the case of Kucha woreda of Gamo zone. The study used cross-sectional data collected from a sample of 378 households selected through three stage sampling techniques and 25 haricot bean traders that were participated in haricot bean marketing during the survey period. Focus group discussion (FGD) and key informant interview were used to generate qualitative data while secondary data were used, from relevant documents to substantiate the primary data collected through pre-tested semi-structured questionnaire. The descriptive statistics used to analyze demographic character of households and major haricot bean market channel of the study area while structure-conduct-performance (SCP), Heckman two-stage and multivariate probit models were applied to analyze performance of haricot bean market, determinants of haricot bean market supply and factors affecting outlet choice decision of haricot bean producers, respectively. The SCP model result shows that, haricot bean market was characterized by strongly oligopolistic market structure with the traders’ concentration ratio of 50.92%. The result of Heckman two – stage model shows that, total quantity of the product, number of extension visit, distance to nearest market, market information and level of education of household head were the main variables that affect market participation decision while market supply is affected by distance to all weathered road, family size of household, total quantity of the product, number of extension visit and distance to market. The result of multivariate probit also shows that, accesses to market information, distance to market, distance to all weathered road, number of extension visit, cultivated land size for haricot bean and awareness about quality standard has more effect on the probability of choosing efficient market in the district. Therefore, strategies aiming at promoting haricot bean volume infrastructure.