DETERMINANTS OF AVOCADO MARKET CHANNEL CHOICE AMONG SMALLHOLDER FARMERS IN CASE OF DALE DISTRICT, SIDAMA REGIONAL STATE,ETHIOPIA

Field: Arts and Humanities (Social Sciences)

Marketing outlet choice is one of the most important farm household decisions to sell their produce in different marketing outlets and has a great impact on household income.Market outlet choices are a household-specific decision, and several drivers have to be considered as a basis for such decision.However, Avocado market outlet choice studies have not yet been under taken in study area. This research attempted to investigate the determinants of avocado market channel choice in dale district sidama region of Ethiopia. Focusing on Avocado fruit-Multi-stage sampling techniques was used to select 175 sample farmers. Data for the study were collected from both primary and secondary sources. The primary data were generated by household survey using a pre-tested structured questioner and key informant interview using check lists. The data were collected from 175 farmers 15 traders and analyzed using STATA soft ware and SPSS.Avocado value chain actors identified in the study include input suppliers, producers, local collectors, whole seller, retailers, processors, avocado cooperatives and consumers. The principal avocado marketing constraints facing farmers in this district are shortage of transportation, low market information, price fluctuation, lack of marketing center and promotion’s. Econometric result shows that six variables consisting of market information, distance to nearest market center, access to extension services, quantity of produce, education level of households and credit usage significantly influence avocado producers choosing of market outlets for their produce.The result has indicated that variables such as marketing information and distance to market center are the significant determinants of the choice of wholesale market outlet. Farmer’s choice of collector market outlet is determined by the access to extension. The choice of cooperative market outlet is determined by the variables such as quantity of avocado produced and distance to market center. Processor market outlet choice is determined by the variables such as education level, quantity of avocado produced and access to extension.Out of six different market channels of avocado identified in the study area.The maximum producer’s share.(GMMp) is highest when they directly sell to avocado cooperative and whole seller in channel III and channel II which was 31.6% and 30.22%, respectively and lowest in channel IV and I when they sell directly to retailer and rural collector which was 21.6%. It is observed that as the number of intermediaries" increases, the producer’s share in consumer’s price decreases.Based on the results obtained from the model variables affecting the choice of whole sale and cooperative market outlet should be promoted and that increased trainings/extension services on avocado marketing will enhance farmers’ skills on avocado marketing.Strengthening the linkage/interaction among value chain actors, there is a need to change the outlook of actors, by developing ground rules that will bind the relationship between producers and traders.