MARKET PARTICIPATION AMONG AVOCADO AND PINEAPPLE PRODUCERS, THE CASE OF KAFFA ZONE, SOUTHWESTERN ETHIOPIA

Abstract

South western Ethiopia has a promising environment for avocado, pineapple, and other various crops. But, production and marketing problems are hinders. The purpose of this research is identifying the market chain actors and their roles, analyzing pineapple and avocado market performance, and investigating the factors affecting avocado and pineapple market participation and intensity of participation separately. Using multi-stage sampling technique, Gimbo and Chena districts were selected purposively based on their production potential as per kaffa zone agricultural office recommendation .With Cochran, data were collected from 384 households from six representative small populations using systematic sampling; 36 traders were also selected for identifications of actors and their roles and analysis of market performance. Both primary and secondary data was used in this research. Descriptive statistics and double hurdle econometric model were used to analyze the data collected both from households and traders. The result revealed that producers, rural collectors, wholesalers, and retailers are the major actors in pineapple market; while producers, rural collectors, processors, wholesalers, and retailers are the major actors in avocado market. The structure, conduct and performance model result showed that there is a weak relationship between in both pineapple and avocado market chain actors. Pineapple and avocado market structure indicates strong and weak oligopoly in the two districts respectively. The total gross marketing margin result showed that rural collectors from the traders’ side received the highest profit share in both products market chain actors.The result of the double hurdle regression analysis model indicated that Market participation decision of avocado producers were positively and significantly affected by sex of the household head, avocado market experience, and education level. While, family size affected negatively and significantly. Level of avocado market participation producers were positively and significantly affected by market experience, access to credit service, and frequency of extension contact. While, negatively and significantly by family size and off-farm income. Pineapple market participation decision and level of market participation jointly and significantly affected by family size, market experience, proximity to the nearest market, and credit access. But, Pineapple market participation decision was positively and significantly affected by sex of the household head pineapple market experience, access to credit service, frequency of extension contact, fertilizer access. While, negatively and significantly by family size and off-farm income, proximity to the nearest market. Level of pineapple market participation was positively and significantly affected by sex of the household head, education level, market experience, access to credit service, frequency of extension contact, and training. While, negatively and significantly by family size and proximity to the nearest market. Generally, both districts and zone responsible administrative organs need to strengthen the existing facilities and reduce the barriers for marketing of avocado and pineapple in study area so that market chain actors’ linkage will be strong and producers gain reasonable shares.