Maize Market Chain Analysis and the Determinants of Market Participation in the Gamo and Gofa Zones of Southern Ethiopia

Abstract

The majority of farmers are producing maize in the Gamo and Gofa zones and they are not benefiting from it due to the marketing problem. Thus, this study was intended to analyze the maize market chain and determinants of market participation in the selected maize-producing districts of the Gamo and Gofa zones. To achieve this objective, multistage sampling techniques were followed to randomly select 151 sample respondents. The data were analyzed by using descriptive statistics, marketing margins, and the double hurdle model. The survey results revealed that approximately 35.88% of the maize from the total maize produced by the sampled farmers was marketed in the study area. The result indicates that among the five identified maize marketing channels, the largest volume of maize passed through channel V (producers, urban collectors, and consumers). In the marketing of maize, traders set the price due to poor market linkage and the low bargaining power of producers. The model regression result indicates that among the hypothesized factors, family size, allocated land size for maize, and market information have a significant effect on the quantity of maize market supply. Based on this finding, strengthening extension services through training and accessing inputs are recommended. Furthermore, market linkage through the cooperative establishment and the availability of market information by respective bodies is suggested.