Factors Affecting Groundnut Market Outlet Choice in Moisture Stress Area of Babile District, Eastern Ethiopia: Multivariate Probit Approach

Subject Areas : Agricultural Extension

Jafer Ahmed ¹ , Abdulaziz Umare ² , Nasir Mahamed ³ , Oromia Galane ⁴ , Kebret Desse ⁵

1 - Agricultural Economics, Oromia Agricultural Research Institute, Fadis Agricultural Research Center, Addis Ababa, Ethiopia
2 - Agricultural Extesion, Oromia Agricultural Research Institute, Fadis Agricultural Research Center, Addis Ababa, Ethiopia
3 - Agricultural Extesion, Oromia Agricultural Research Institute, Fadis Agricultural Research Center, Addis Ababa, Ethiopia
4 - Agricultural Extesion, Oromia Agricultural Research Institute, Fadis Agricultural Research Center, Addis Ababa, Ethiopia
5 - Agricultural Economics, Oromia Agricultural Research Institute, Fadis Agricultural Research Center, Addis Ababa, Ethiopia

Received: 2017-05-10 Accepted : 2017-06-06 Published : 2017-12-01

Keywords: Groundnut, Multivariate probit, Market outlet,

Abstract :

The groundnut plant has the ability to survive in areas of low rainfall because it is a legume and it increases soil fertility by fixing nitrogen in the soil. The study area is known by erratic and uneven rainfall while groundnut is the main cash crop in the area. The study identified the groundnut market outlets, factor affecting groundnut market outlet choice and identifies farm level women role in groundnut production, in Eastern Hararghe, Oromia Region. Both primary and secondary data were collected for the study. Primary data were collected from 120 sample households using questionnaire during the period of January15-February202016. The study implemented multivariate probit regression model to identify factor affecting groundnut market outlet choice. The results show that there is a significant correlation between marker outlets suggesting that practice of market outlets is interrelated. Multivariate probit regression estimation also revealed that sex of household head, education level, market distance, size of groundnut land, groundnut production experience, store time, access to extension and labor force of household member found to affect significantly the groundnut market outlet choice of household in study area. This also shows that higher educational level of household head increases the awareness of farmer about the benefits of choosing profitable market outlet. Therefore, a way of access to adult education for household head should be designed.

References:

1. Belderbos, R., Carree, M., Diederen, B., Lokshin, B. and Veugelers, R. (2004). Heterogeneity in R&D cooperation strategies’. International Journal of Industrial Organization. 22: 1237-1263. http://dx.doi.org/10.1016/j.ijindorg.2004.08.001


2. Berhanu, G, and Moti, J. (2010). Commercialization of smallholders: does market orientation translate into market participation? Improving Productivity and Market Success (IPMS) of Ethiopia farmer project working paper 22. Nairobi Kenya, ILRI.


3. Besrat, A and Gebre, B. (1981). A preliminary study on the aflatoxin content of selected Ethiopian foods. Ethiopian Medical Journal, 19 (2): 47-52.


4. Caliskan, S., Arslan, M., and Arioglu, H. (2008). Effects of sowing date and growth duration on growth and yield of groundnut in a Mediterranean-type environment in Turkey. Field Crop Research, 105: 131-140.


5. Chala, A., Mohammed, A., Ayalew, A., and Skinnes, H. (2012). Natural occurrence of aflatoxins in groundnut (Arachis hypogaea L.) from eastern Ethiopia. Food Control. In press.


6. Chilot Yirga,  Kinfe Aseyehegn and Sundar Rajan (2009).Effect of small-scale irrigation on the income of rural farm households: the case of laelay Maichew district, Central Tigray, Ethiopia:The Journal of Agricultural Sciences, 7(1):52-55.


7. CSA.(2014). Reports on area and production of crops (private peasant holdings, Meher season) from 2004 to 2014. Addis Ababa, Ethiopia.


8. Davis, K., Swanson, B., and Amudavi, D. (2009). Review and Recommendations for Strengthening the Agricultural Extension System in Ethiopia. Washington DC: IFPRI.


9. Dorfman, J. H. (1996). Modeling multiple adoption decisions in a joint framework. American Journal of Agricultural Economics, 78: 547-557. http://dx.doi.org/10.2307/1243273


10. FAOSTAT. (2010). Groundnut world production. Rom: FAO: http://www.faostat.fao.org.


11. Getnet, A and Nugussie, A. (1991). Production and research on oil seeds in Ethiopia. Proceedings of the first national oil seeds workshop in Ethiopia, 3-5 December. Institute of Agricultural Research. Addis Ababa, Ethiopia. p.312.


12. Geleta, T., Purshotum, K.S., Wijnand S., and Tana T. (2007). Integrated management of groundnut root rot using seed quality. International Journal of Pest Management, 4: 53 - 57.


13. Gbèhounou, G. and Adengo, E. (2003). From a crop rotation experiment at Akron. Effect of citric acid on aflatoxin degradation and on functional and textural. Food Research International, 42 (8): 1323-1334.


14. Greene, W. H. (2008). Econometric Analysis (7th edition). New Jersey: Prentice Hall.


15. Kassie, M., Zikhali, P., Manjur, K. and Edward, E. (2009). Adoption of sustainable agriculture practices: Evidence from a semiarid region of Ethiopia. Natural Resources Forum 39, 189-198.http://dx.doi.org/10.1111/j.1477-8947.2009. 01224.x


16. MOARD (Ministry of Agriculture and Rural Development). (2010). Household Asset Building Programme. Programme Implementation Manual.  Addis Ababa, Ethiopia


17. Mwanakatwe, P., Barrow, L. (2010). Ethiopia’s Economic Growth Performance: Current Situation and Challenges. The African Development Bank Group Economic Brief: 1(5): 1-5.


18. Pande, N., Saxena, J., and Pandey, H. (2003). Natural occurrence of mycotoxins in some cereals. Mycoses. 33:126-128.


19. Savage, G. P. and Keenan, J. I. (1994). The Composition and nutritive value of groundnut kernels. The Ground-nut Crop: A scientific basis for improvement. Edited by Smartt. Published in 1994 by Chapman & Hall, London. ISBN 0412408201..


20. Teklewold, H., Kassie, M., Shiferaw, B. and Köhlin, G. (2013). Cropping system diversification, conservation tillage and modern seed adoption in Ethiopia: Impacts on household income, agrochemical use and demand for labor. Ecological Economics 93, 85-93. http://dx.doi.org/10.1016/j. ecolecon. 2013.05.002


21. Samrtt, J. (ed.). A Scientific Basis for Improvement. Chapman and Hall, St Edmundsbury Press, Great Britain. pp 173–205.


22. Smart, M. G, Shotwell, O. L, Caldwell, R. W. (1990). Pathogenesis in Aspergillusear rot of maize: aflatoxin B1 levels in grains around wound inoculation sites. Phytopatology. 80: 1283-1286.


23. Staal, S. J., Baltenweck, I., Njoroge, L., Patil, B. R., Ibrahim, M. N. M, and Kariuki, E. (2006). Smallholder dairy farmer access to alternative milk market channels in Gujarat. IAAE Conference, Brisbane, Australia.


24. Tru, N. A. (2009). Factors Affecting Lychee Productivity and the Choices of Fresh Lychee Marketing Channels of Producers in Thanh ha district, Hai duong province, Vietnam. Journal of Science development, 7:123-129.


25. Upadhyaya, H. D., Reddy, L. J., Gowda, C. L. L, and Singh, S. (2006). Identification of diverse groundnut germplasm: Sources of early maturity in a core collection. Field Crop Research. 97: 261-271.


26. Lerman, Z. (2004). Policies and institutions for commercialization of subsistence farms in transition countries. J. Asian Econ. 15:461-479.


27. World Bank. (2010). World Development Indicators 2010. Washington, D.C.