A Wheat Market Outlet Choices in Sinana District, Bale Zone, Ethiopia: Multivariate Probit Approach

Abstract

The study analysed wheat market outlet choices in Sinana district Bale Zone Oromia Regional State, Ethiopia. From four kebeles of the district, 393 respondents were randomly selected. A multivariate probit model was used to analyse the determinants of market outlet choices of wheat producing farmers in the study area. The finding indicated that the probability of choosing a wholesaler market outlet was significantly affected by the sex of the household head, education level, frequency of extension contact, access to market information, distance from the nearest market and amount of wheat produced. The choice of the cooperative market outlet was significantly affected by the sex of household head, education level, frequency of extension contact, membership to cooperatives and amount of wheat produced. The probability of choosing local collectors market outlet was significantly affected by access to market information and distance from the nearest market whereas the consumer market outlet was affected by distance from the nearest market. Policy implications based on the finding include that government and concerned bodies should focus on providing market information that can be disseminated through the extension workers and strengthening infrastructure to reduce the transportation cost. In addition, strengthening the existence of formal and informal education can increase the bargaining power of the farmers and help them to choose the appropriate market outlet.