Factors affecting market outlet choices of pepper producers in Wonberma district, Northwest Ethiopia: multivariate probit approach

Abstract

Pepper is an important cash crop for its contribution to income-generating, employment opportunity and improvement of food security to the majority of the rural households. However, enhancing pepper producers to reach the market is a key issue needed in Wonberma district. This study sought to analyze determinants of market outlet choices among smallholder pepper producers in Wonberma district of West Gojjam Zone of Amhara Region, Ethiopia. Both primary and secondary source of data were used to collect qualitative and quantitative data. Two-stage sampling method was used and data were collected from 130 pepper producers. Multivariate probit (MVP) model was used to analyze factors affecting market outlet choices of smallholder pepper producers. The MVP model results indicated that quantity of pepper produced, pepper farming experience, extension contact, year of schooling, bargaining power of the producer; post-harvest value addition, market distance, and livestock ownership had a statistically significant influence on choices of the market outlet. Therefore, this study underscores increasing productivity of pepper; enhancing post harvest value addition practices, improve farmers bargaining power through cooperative; strengthen institutional services and infrastructure development like road and transportation facility for policy implication.