MARKET CHAIN ANALYSIS OF MORINGA STENOPETELA A CASE OF KONSO ZONE, SNNPRS, ETHIOPIA

Abstract

In the last few years, the international and domestic demand for Moringa has increased. Despite Moringa market value and its increased production volume, its market potential has not been fully studied and quantified, results in poor prices among small-scale farmers and producers still experience marketing challenges. This research attempted to analyze the Moringa market chain in the Konso zone. A multistage sampling procedure was employed to contact 257 farmer respondents and a rapid market appraisal was made to select 31 traders. Semi-structured questionnaires and focus group discussions were used to collect data from small-scale Moringa farmers through face to face interviews. The data were analyzed using the descriptive statistics and econometrics model. The results of the first Heckman two-stage model was showed that education level of household head, land size, off-farm income, a quantity of Moringa produced, access to credit service, access to market information and level of lagged price of Moringa leaf positively and significantly influenced the decision to participate in the Moringa marketing. The second stage (OLS) result indicated that family size, gender, access to market information, and quantity of Moringa yield affect the volume of Moringa supplied to the market positively and significantly. While family size negatively and significantly affects the volume of Moringa supplied to the market. Therefore one of the most important variables influencing the market participation and supply of Moringa is market information and quantity produced due to this, extension work should focus on encouraging farmers to participate in Moringa production and market-oriented training. The findings suggest that an effective market information service has to be established to provide accurate and timely market information to farmers and traders on the current supply of Moringa output, demand, and prices at woreda and regional levels. Infrastructural development is also a key to support the sub-sector. In this arena, the emphasis has better be given to improve storage and transportation system, pesticides, and insecticides provision, offering credit and other services to improve the effective production and marketing of Moringa. Improving the condition of roads linking woreda markets to producers could potentially reduce transportation costs of accessing such area markets. This could go on to encourage the use of woreda markets among farmers, who stand to gain better income and gradually fish themselves out of poverty traps.