Analysis market outlet choice of smallholder chickpea producers in Northwest part of Ethiopia

Abstract

AbstractChickpea is a popular food in Ethiopia and is an important source of income for many smallholder farmers. In order to promote chickpea cultivation and make it more economically viable, it is necessary to determine which markets are most suitable. Among the econometric models, the multivariate probit model is appropriate and was used to study the determinants affecting the choice of outlets for chickpea in the district. The model found that wholesalers and retailers (61% and 18% of total buyers, respectively) were the most likely to purchase chickpeas. Collectors (25% of buyers) and consumers (35% of buyers) are also important, but are less likely to succeed compared to the other market participants. Based on these results, the government and other stakeholders need to focus on developing infrastructure and improving access to credit to help farmers decide which market to target and choose the best one.

Keywords

• chickpea
• multivariate probit
• market outlet choice
• market participant