Structure, Conduct And Performance Of Teff Market: The Case Of Adola Rede Woreda, Guji Zone, Oromia National Regional State, Ethiopia

Author(s): Mengistu Bululta and Tinsae Demise

Teff is indigenous to Ethiopia and it is an important crop, for farm income as well as food security to its people which is grown primarily as a cash crop. The study attempted to analyse the structure-conduct-performance of Teff marketing.in Adola Rede Woreda with the specific objective of identifying the major constraints and opportunities in Teff production and supply to market. Both primary and secondary data were used. The primary data were generated by unstructured questionnaire, key informant interviews and personal observation. Accordingly, 121 Teff producers and 13 Teff traders were randomly selected to collect both primary and secondary data. Descriptive analysis was used for analysing the data collected from farmers and traders in the study area. The result of the study revealed that, Quantity of Teff passed through different marketing agents from farmers to consumers. The Farmers-Collectors-Retailers-Wholesalers-Processors-Consumers channel carried the largest volume, which is 59.58% of the total volume followed by Farmers-Wholesalers-Processors-Consumers channel which carried about 22.06% of the total Teff marketed. Structure of Teff market indicates four-firm Concentration Ratio (CR4), that is, the share of the largest four traders in the total volume of Teff purchased. The four largest traders handled 33.03% of the total volume of purchased Teff. This suggested that the Teff market in Adola Rede Woreda was characterized by a weak oligopolistic market. The major barriers to enter into the market were shortage of capital, and information asymmetry. Poor knowledge of good agricultural practices, erratic rainfall patterns, poor road and transport, extension support problems, labor-intensive nature of Teff production, high marketing costs, marketing price and lack of up to date market information for producers, and lack of market research and information are production and marketing constraints that farmers encounter in the study area. Hence policy makers should target to solve these problems through developing policies and programs.
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