Analysis of wheat market chain in North Gondar Zone, Ethiopia

Abstract

In Ethiopia, cereal production and marketing are the means of improving the livelihood of millions of households. Wheat is the major crop grown in the study area for consumption as well as commercial purpose. However, marketing aspects of wheat commodities, which have high demand and production potential, were unresolved. Therefore, this research is an analysis of wheat market chain in North Gondar zone; it aims to identify marketing channels, wheat profitability and factors affecting the intensity of marketed surplus of wheat. In order to attain these objectives both primary and secondary data source were employed. The primary data were collected from 163 wheat producers and 32 traders through interview schedule and key informant interview by using pre-tested semi-structured questionnaire and checklist, respectively using multi stage sampling techniques. The result of descriptive statistics shows that majority of farmers (66.78%) supplied wheat below the average marketed surplus. Likewise, the net profits calculated for producers, rural assemblers, district retailers and wholesalers were Birr 366.64/year, 3,409.6/year, 18,131.63/year and 109,620.25/year, respectively. Multiple linear regression model was used to identify the factors affecting the intensity of marketed surplus of wheat. The results of multiple linear regression models showed land size, quantity of wheat produced non-farm income, market information and distance to the nearest market significantly influenced the extent of wheat supply in the market. Based on the findings, the study suggested conveying reliable and timely market information required by all stakeholders; farmers should rely on intensive cultivation rather than extensive cultivation; adopt new technologies and management systems to boost the production and productivity of wheat.