Marketing System Analysis of Vegetables and Fruits in Amhara Regional State: Survey Evidence from Raya Kobo and Harbu Woredas

This study attempted to analyze the different aspects of a marketing system for vegetables and fruit in Raya Kobo and Harbu woredas, Amhara regional state using different indicators. Probit estimation for determinant of participation probability in vegetable and fruit production and OLS estimation technique were also applied for examining determinants of market supply and demand for vegetable and fruit products. Accordingly, the results showed that lack of genuine and timely market information, poor institutions and arrangements, poor marketing infrastructures, long market channels, high and unfair profit margin distribution among the value chain actors, with little share to the farmers, were observed in both vegetable and fruit markets. These are indicative of poor marketing efficiency and thereby sub optimal operation of the marketing system. The econometric regression results of this study exhibited almost similar results as previous studies however the determinants were not the same for all sample crops but rather differs from crop to crop. In general, family size, total size of land, extension service, farmer’s experience, average lagged price, distance from main road and age were found to be significant factors of production participation in vegetables and fruits . Similarly, average current price, distances from main road, age, total size of land, farmers’ experience, sex, number of oxen, and access to market information were found to be significant determinants of market supply of vegetables and fruits.