Analyzing Potato Market Participation, Market Surplus, and Market Outlet Choice on Small Farm Household Level in Lemo District, Southern Ethiopia

Abstract

This study was aimed to analyze potato market participation, market surplus, and market outlet choice in Lemo District of southern Ethiopia. To achieve the objective, primary and secondary data sources were employed and 202 potato producers were selected following simple random sampling techniques. The collected data were analyzed by using Heckman second-stage and multivariate probit models to identify factors that determine potato market participation decision and potato farmer market outlet choice, respectively. The Heckman's first-stage (probit) result indicates that education level, sex, membership in the cooperative, distance to the nearest market, remittent from family members, own transportation facilities, seed types, frequency of extension contact, lagged market price, and amount of credit that farm household used for potato production significantly (P