Factors Influencing Market Participation of Farmers Along The Haricot Bean Market Chain In Meskan District Ethiopia

Abstract

In the recent past, the international and domestic demand for haricot bean has increased. This has led to an increase in the production and supply of the bean in Meskan district of Ethiopia. Despite the increase in volume of production, farmers still experience marketing challenges resulting into low retum. The main purpose of this study was to contribute to increased incomes of smallholder haricot bean producers in Meskan district, Ethiopia. The specific objectives were to describe major actors along the han'cot bean market chain, to estimate the marketing margins of key actors along the market chain and to determine the factors that influence farmers’ participation decision and extent of panicipation in haricot bean marketing. A multi-stage sampling procedure was employed in order to select the sample of haricot bean producers. Firstly, the district was selected purposively. Secondly, the kebele administrations that produce haricot bean were selected randomly. Thirdly, haricot bean producers were stratified into two groups, those who practiced mono cropping and those who intercropped the haricot bean. Finally, a total number of 133 haricot bean producers were randomly selected from both strata proportionate to the size of population. Since there are only 10 urban collectors; all of them were interviewed. In addition, structured interviews were conducted with l2 retailers and 1 licensed trader. ln order to calculate marketing margins for actors along the chain, marketing margin analysis was employed. The results revealed that the major actors along the value chain for both white and red haricot bean include producers, urban collectors, retailers and consumers. But in case of white haricot bean in addition to the above actors there are also primary cooperatives, cooperative union and licensed trader. The results from the Heckman two stage model revealed that the value of haricot bean produced, access to market information, farm size, education level, access to credit, membership to an organization and distance to the nearest market significantly affected market participation decision of haricot bean producers. Among the significant variables which affect market participation decision, membership to an organization & distance to market showed negative effect while all the rest showed a positive effect. The extent of market participation among haricot bean producers was significantly affected by farm size, value of haricot bean produced, access to improved variety and access to credit. It is therefore important to give emphasis on haricot bean production & marketing by providing different extension SuppOl1 to farmers and licensed traders such as improving their access to market information and credit. It is also important to strengthen the established cooperatives and establish more cooperatives in the district so as to hamess farmers’ incomes.