Factors Affecting Onion Market Outlet Choices in Ejere District, West Shoa Zone, Oromia Region of Ethiopia

Abstract

This study sought to analyze determinants of market outlet choices among smallholder onion farmers in Ejere district of West Shoa Zone of Oromia Region. Three stage sampling technique was used and data was collected from 85 small holder onion farmers. Multivariate probit model (MVP) was used to analyze factors influencing the choice of onion market outlets choice by the small holder onion farmer. Processing and analysis of the survey data was carried out using SPSS version 20 and STATA version 13. The multivariate probit model results indicated that quantity of onion sold, extension contact, farming experience, distance to nearest market, non/off-farm income, selling price of onion, trust in traders, ownership of motor pump and land size allocated for onion significantly influence onion producers choosing of market outlets for their produce. Policy makers should focus more on enhancing producers’ volume sales of onion which could be attained through providing the marketing infrastructure, technical and organizational assistance, and access to markets and support to improve the farmers’ bargaining power by establishment of farmers’ organizations. Offering reasonable price per quintal can also inspire onion farmers to sell onion through the best market outlets.

Keywords: Market outlet choice; Factors; Onion; Multivariate probit; Ejere.