Analysis of Maize Marketing; The Case of Farta Woreda, South Gondar Zone, Ethiopia

Abstract

Maize is widely grown as a major food and cash crop in Southern Gondar zone, faces with problems as seasonal supply, price fluctuations, and inadequate information on production, marketing and consumption. These problems are more acute in urban areas too. Effective crop marketing is essential for efficient agricultural and rural development, particularly with regard to continued increase in crop production and producer’s income. The research tried to analyze the marketing system of maize in farta woreda with specific objective of identifying determinant factors affecting house hold participation decisions of maize market and determining volume of maize market supply in the study area. Primary data was collected from 154 maize producers. Based on multi-stage random sampling procedures both probability sampling and non-probability sampling procedures were followed to select six Peasant Associations. Structured interview schedule and questionnaire was used for collecting the essential quantitative and qualitative data from the sampled farmer respondents. To generate qualitative data, field observations and informal interview with key informants were conducted. The quantitative data was analyzed using descriptive statistical tools and Tobit model was employed to estimate the factors jointly affecting maize market participation decisions’ and determinants of volume of maize supply of households. Farmers’ decision to participate on maize market in Farta woreda was significantly but negatively influenced by sex whereas age, time of sale, area of maize, oxen number, access to market information, credit access and membership in primary cooperatives positively influenced maize market participation & extent of participation. Generally, maize marketing system in the study area observed to be inefficient and underdeveloped. Thus, marketing system development interventions should be aimed at addressing both maize production technological gaps and marketing problems.