Analyses of markets and outlet choice of smallholder chickpea producers in the Central Gondar Zone, Ethiopia

Abstract

This study analyzed factors influencing chickpea producers’ market outlet choices using data from 369 smallholder farmers and traders. The descriptive statistics, results showed that producers sold 25.2% to rural collectors, 21.7% to retailers, 21.2% to wholesalers, and 19.3% directly to consumers. The market was moderately concentrated, with top four traders controlling 36.05%. The analysis showed that multiple factors influence chickpea marketing choices. Selling to rural collectors increased with quantity supplied (p < 0.05) and extension services (p < 0.01) but declined with higher education (p < 0.05). Consumer channels were favored by market information (p < 0.05), experience (p < 0.1), and extension contact (p < 0.01), yet discouraged by older age and higher lagged prices (p < 0.01). Wholesaler choice was driven by education, credit access, and quantity produced (p < 0.01). Cooperative participation depended on quantity supplied, credit, non-farm activity (p < 0.01), lagged price, and land size (p < 0.05). The MNL model confirmed these findings, highlighting that education, production, and extension services (p < 0.01) increased sales to wholesalers or consumers, while experience (p < 0.01) reduced them. Participation in rural collectors increased with experience (p < 0.01) and distance (p < 0.05), while land size (p < 0.01) and household size (p < 0.1) were also important factors for cooperatives. Enhancing smallholders’ access to credit, market information, and extension services, together with increasing production and strengthening institutional support and market infrastructure, can improve and integrate farmers into profitable chickpea value chains, and boost their incomes.