Determinants of Supply in the Wheat Value Chain of Ethiopia

Abstract:The purpose of this paper is to investigate the factors affecting the quantity of commodity supply in the wheat value chain (WVC) in Ethiopia. This study used personal interviews to collect primary data from WVC actors by using surveys. The data collected came from input suppliers, wheat producers, wholesalers, wheat processors and support institutions. It also made use of empirico-inductive approach and focused synthesis to conceptualize commodity supply and coordination. Mixed sampling techniques (random, census and purposive) were applied to select sampling units. Qualitative analysis, descriptive statistics and multiple linear regression models were used to analyze the set of data. The paper finds that the marketed surplus of wheat significantly increases with landholding, fertilizer used, extension services and the costs of wheat production and negatively associates with information asymmetry and crop rotation. The strategic interactions influence the quantity of a commodity that actors supplied to the markets. It adds new knowledge to the existing theoretical and empirical literature. It may be recommendable to target the efforts in order to improve extension services, reduce information asymmetry and encourage the utilization of wheat technologies to enhance wheat supply.