GARLIC PRODUCTION AND MARGIN ANALYSIS FOR FARMERS: THE CASE OF KORE AND GEDEB HASASA DISTRICTS, ETHIOPIA
Authors:
Desta Geda, Hemal Pandya
Abstract:
This research attempts to examine Garlic production and
margin in Gedeb Hasasa and Kore districts of Ethiopia with the specific
objectives of identifying garlic producers, and the role of garlic producers in
producing and marketing garlic. It also aims to quantify costs and margins for
garlic producers and identify constraints of garlic production and marketing.
The structure, conduct, and performance approach was used to examine Garlic
marketing system. Primary and secondary data were gathered through pre-tested
questionnaires and checklist. In Hasasa, and kore markets, sample markets were
inefficient and dominated by oligopolistic market structure. The findings also
show that, in order to diminish the oligopolistic market structure, producers'
bargaining power must be improved through cooperatives and government
intervention. There is a pressing need for government action based on this
pricing method. Assessment indicates different types of marketing and
production cost related to garlic in Gedeb Hasasa and kore districts by farmers
were 1,199.7 and 1,609.3, respectively. Profit margins birr per quantal for
farmers in Gedeb Hasasa and Kore were 91 percent and 89.5 percent,
respectively. chi-square tests and t-test were also attested between two
districts for all variables. An effective market information service should be
established to provide farmers and traders with accurate and timely information
on current garlic output, demand, and prices at the national, regional, and
district levels. Garlic market structure (strong oligopoly market) influenced
competitive market structure as well. Moreover, the
study focused on the different market levels, the roles of marketing actors in
the marketing channel, price formulation and bargaining characteristics of
producers, buying and selling strategies, producers' behavior in relation to
storage, transportation, information, and finance, and the competition process.
Keywords:
Channels,
Concentration ratio, Conduct, Performance, Garlic and Cost
Vol & Issue:
VOL.14, ISSUE No.Special Issue 1,
january
2022