Abstract:
Apple is the main source of income in Sinan district by contributing income generation and
employment opportunity. However, the district faces various production and marketing problems
of apple. Therefore, this study aimed to analysis market chain of apple with the specific objective
of identifying market chain actors; assess market structure, conduct and performance; identifying
factors affecting quantity supply and market outlet choice; challenges and opportunities of apple
production and marketing. For the study both primary and secondary source of data were used.
Semi structured interview, focus group discussion and key informant interview methods of data
collection was employed to collect data from primary sources. By using simple random sampling
techniques four apple producer kebeles and 121 sample producer household heads were selected
for the study. Census survey, Purposive sampling and snow ball sampling technique was used to
select wholesaler, retailer and collector for the study, respectively. The market concentration
ratio (37.8%) of the four largest firm shown that the market structure is weak oligopolistic
nature. Lack of continuous supply and capital are the major entry barriers in apple trading. The
market conduct indicated that traders were price maker while producers were price takers which
deviate the competitive market structure. The market margin show that retailers were taken the
highest market margin from the available actors. In the study area, lack of equipment, irrigation
facility, lack of linkage with other actors, promotion and market information are the major
constraints of apple market chain actors and availability of water resource, suitable agro ecology
and supportive institutions are opportunity. The multiple linear regression model indicated that
family size, land size, distance to market, access of market information, experience and frequency
of extension contact were the significant variable that affect quantity supplied of apple to the
market. And the multivariate probit result shown that distance to market, quantity produced,
off/non-farm income, frequency of extension contact, experience and average selling price were
the factors affected the market outlet choice of farmers in the district. Finally based on the
finding of the study the government and the concerned body should solve production and market constraints of apple, entry barrier, market information, encourage efficient utilization of land, and strengthen market-oriented extension service and improve transport and road facilities
