Analysis of vegetable production status and marketing system in Ethiopia: The case of Sebeta Hawas Woreda, Oromia region

Abstract

AbstractThis study analyzed vegetable production status and marketing systems in Ethiopia, Sebeta Hawas Woreda, and the Oromia region. The study collected primary data through household surveys, focus group discussions, observations, and key informant interviews. The data were analyzed using descriptive statistics, the gross profit formula, and the structure-conduct-performance model. The study results revealed that cabbage, onion, and tomato were the top three vegetable crops dominantly grown, contributing 67.7% of the total vegetables produced in the study area. The profitability analysis results indicated that tomato, onion, and cabbage production was profitable. The results of the market structure analysis indicated that the market structure for onions, tomatoes, and cabbage was a strong oligopolistic market. The market conduct analysis result revealed that the prices of vegetables were determined by the traders. The results of market performance analysis revealed that the dominant marketing channel for onions, tomatoes, and cabbage was the “producer → broker → wholesaler → retailer → consumer” channel. Smallholder farmers obtained the highest profit shares of 61%, 39%, and 51% from cabbage, onion, and tomato, respectively, when vegetables were directly supplied to wholesalers. The study results revealed that vegetable production was profitable, though the marketing system was found to be inefficient. Therefore, the study suggested intervention by the government through the design of effective policies to improve the performance of vegetable production and marketing systems. Furthermore, NGOs can provide tailored training, and universities, research institutes, agrochemicals, and seed companies can supply cost-effective agricultural inputs so that vegetable production and marketing systems are enhanced.

Keywords

• production
• marketing system
• structure
• conduct
• performance
• marketing channel