Determinants of outlet choices by smallholder onion farmers in Fogera district Amhara Region, Northwestern Ethiopia

Abstract

Market outlet choice for small holder onion producers is mandatory, since onion crop is a perishable horticultural crop. This study was aimed at assessing determinant of market outlet choice by smallholder onion farmers in Fogera District of Ethiopia. A stratified random sampling technique was employed, to select 150 onion producers in the study area. Multivariate probit model was employed to identify the factor affecting onion market outlet choices. The result of multivariate probit model showed that literacy status, owning transport facility, livestock holding, onion yield and access to extension service significantly influenced the choice of onion market outlet. The common underlying factors of market channel choice were also identified. Based on the results, the study recommended that the government and stakeholders should focus on strengthening the existing  of formal and informal education, onion production system, improving extension system, strengthening the existing rural-telecom and rural-urban infrastructure development and improving crop-livestock production.    Key words: Onion, determinant, channel choice, multivariate probit model.