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ABSTRACTS
Marketing outlets choice is one of the most important farm household decisions to sell their produce and has a great impact on household income. The perishable nature of tomato necessitates effective marketing channels choice decision. So, the objectives of this study were analyzing the determinants of market outlet choice decision of farmers and marketed surplus of tomato. Two stage random sampling procedure was used to select the sampled kebeles and households, where by 235 farm households were surveyed for the study. Both primary and secondary data were collected to address the objectives. The collected data were analyzed using descriptive statistics and an econometric model by using SPSS and STATA software. The descriptive results indicate that main buyers of tomato from producers were wholesalers, collectors, retailers and consumers with an estimated percentage share of 30.89, 22.9 ,24.74 and 21.49 %, respectively. The Multiple linear regression model results showed that five variables such as land size allocated for tomato, accesses to credit, income from non / off farm, livestock holding and using improved seed significantly affected the volume of tomato supplied to the market. Multivariate probit model results showed that the probability to choose wholesalers, collectors, retailers, and consumers market outlets were significantly affected by age of the household head, educational status of the household head, distance to the nearest market, access to credit, owning transport facility, land allocated for tomato and household size. Policy implications drawn from the study findings include that the government and concerned stakeholders should focus on promoting the dissemination of improved tomato variety, strengthening rural-urban infrastructure, intensification of land for tomato, expanding accessibility of credit and 1strengthening the existence of formal and informal education.
1Key words: Market outlet choice decision, Multivariate probit Model, Multiple Linear Regression Model, Marketed surplus, Producers, Tomato |
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