Determinants of Mangoes and Red Peppers Market Supply in Ahferom and Kola-Tembien Districts of Tigray Region, Northern Ethiopia

Abstract

The major aim of this paper was to examine the factors that determine market supply of mangoes and red peppers by smallholder growers in Ahferom and Kola-Tembien Districts of Tigray National Regional State, Northern Ethiopia. Data were collected from a sample of 192 mango growers and 191 red pepper growers. Both descriptive statistics and econometric analysis applied for analyzing the collected data. The multiple linear regression model was applied to identify the factors determining mango and red pepper market supply. The result of the descriptive analysis showed that level of mangoes and red peppers production has been raised owing to high intervention and follow up of the regional government on the sector through increasing level of accountability and building competitive sprite among agricultural extension workers. 53.6% of the sample mango growers and 27.6% of the sample red pepper growers sold their produces to retailers. The result of the estimated parameter also indicated that level of mango production, sex of the household head, household family size, access to credit and total land size were the factors that determine marketable supply of mangoes by smallholder growers. Similarly, distance to nearest market, access to market information, total land size, cooperative membership and selling price were found to be determinants of the market supply of red peppers. Finally, the study recommended intervention in appropriate distribution of inputs, improvement in rural infrastructure, promoting and expanding mango and red pepper production for export and ensuring fair trade. The current market oriented agricultural system has to be supported by mechanisms of gathering and distributing market information, appropriate crop pricing and market linkages, which enhance market supply and improve the economic and social bargaining power of growers. Keywords: determinant, market supply, production, smallholder growers.