Abstract:
Background: Selecting the appropriate channels to deliver farm products is not an easy task because there are
various factors that affect producers to select such relevant channels. Hence, the study was aimed to investigate the
factors that influence market channel choices among wheat producers in Northwestern Ethiopia.
Methods: Using multistage sampling technique, 163 smallholder wheat producers were selected to collect primary
data through semi-structures questionnaires. Combinations of data analysis methods such as descriptive statistics and
econometrics model (multivariate probit model) were used.
Result and conclusion: The study identified four major wheat market channel choices such as retailers, assemblers,
consumers and wholesalers as alternatives to wheat producers to sell majority of their products. Thus, retailers who
accounted for 40.49% of total sold, assemblers (39.2%), consumers (37.5%) and wholesalers (23.93%). The results of a
multivariate probit model indicated that age of household, education status, credit access; livestock number, off-farm
income and total land-holding size of farmers significantly affected the market channel choice decisions in one or
another way. Therefore, strengthening institutions to deliver timely and appropriate credit service and training to a
farmer is among the major recommendations from this study.
