Determinants of Agricultural Production and Marketing in Ethiopia Faculty: College of Agriculture

SCHOOL OF GRADUATE STUDIES

HARAMAYA UNIVERSITY

_______________________________________________________________

___

Determinants of Agricultural Production and Marketing in

Ethiopia

_______________________________________________________________

____

A graduate seminar in Agricultural Economics (Ag Ec. 552)

Submitted to

Lemma Zemedu (Ph.D.)

By

Teshome Terefe

ID: SGS 194/02

Faculty: College of Agriculture

i

Department: Agricultural Economics and Agri-business

Management

Program: Agricultural economics

July, 2012

Haramaya

TABLE OF CONTENT

TABLE OF CONTENT ii

1.INTRODUCTION 1

1.1. Background of the Study vanish 1

1.2. Objective of the Paper 2

2. CONCEPT OF AGRICULTURAL PRODUCTION AND MARKETING 3

2.1. Functional approach 3

2.2. Institutional approach 4

2.3. Commodity approach 4

2.4. The Role of the Agricultural Sector 7

2.4. Empirical Studies Related to constraints in Agricultural production andMarketing 10

3. CONCLUSION AND RECOMMENDETIONS 14ii

3.1. Conclusion 14

3.2. Recommendation 15

4. REFERENCES 18

iii

iv

INTRODUCTION

1.1. Background of the Study vanish

Agriculture in Ethiopia is the foundation of the country's

economy, accounting for half of gross domestic product (GDP),

83.9% of exports, and 80% of total employment. Ethiopia's

agriculture is plagued by periodic drought, soil degradation

caused by overgrazing, deforestation, high population density,

high levels of taxation and poor infrastructure (making it

difficult and expensive to get goods to market). Yet

agriculture is the country's most promising resource. A

potential exists for self-sufficiency in grains and for export

development in livestock, grains, vegetables, and fruits. As

many as 4.6 million people need food assistance annually

(Yifru, 2009)

Agriculture accounts for 46.3% of the GDP, 83.9% of exports,

and 80% of the labour force. Many other economic activities

depend on agriculture, including marketing, processing, and

export of agricultural products. Production is overwhelmingly

of a subsistence nature, and a large part of commodity exports

are provided by the small agricultural cash-crop sector.

Principal crops include coffee, pulses (e.g., beans), oilseeds,

cereals, potatoes, sugarcane, and vegetables. Exports are

1

almost entirely agricultural commodities, and coffee is the

largest foreign exchange earner. Ethiopia's livestock

population is believed to be the largest in Africa, and in

2006/2007 livestock accounted for 10.6% of Ethiopia's export

income, with leather and leather products making up 7.5% and

live animals 3.1%. Ethiopian Agricultural marketing is the main

driving force for economic development and has a guiding and

stimulating impact on production and distribution of

agricultural produce. The increasing proportion of the

population living in urban centers and rising level of income

require more organized channels for processing and distributing

agricultural products. Agricultural marketing acts as an agent

of rural development. Moreover, agricultural marketing will

play a coordinating rule, steering supply and demand with

respect to place, time and form utilities. A properly

functioning market (such as pricing system) for agricultural

products is generally perceived as the best organizational

structure to achieve more efficient production, in terms of

type, quantity and quality, and consumption decisions (Bradhan,

1990).

Improved information and marketing facilities enable farmers to

plan their production more in line with market demand, to

schedule their harvests at the most profitable times, to decide

which markets to send their produce to and negotiate on a more

even footing with traders and also it enables traders to move2

produce profitably from a surplus to a deficit market and to

make decisions about the economics of storage, where

technically possible.

The possible increment in output resulting from the

introduction of improved technology could not be exploited in

the absence of convenient marketing conditions. As efficient,

integrated, and responsive market, mechanism is of critical

importance for optimal area of resources in agriculture and in

stimulating farmers to increase their output (Andargachew,

2005). A good marketing system is not limited to stimulation of

consumption, but it also increases production by seeking

additional output. A critical problem stands in the course of

formulating appropriate policies and procedures for the purpose

of increasing marketing efficiency of agricultural product.

This has to do with lack of pertinent marketing information and

other marketing facilities, like storage, transportation, etc.

1.2. Objective of the Paper

The objective of this paper is to raise public awareness and

policy makers on some of the best ways in which Agricultural

production and marketing. Specifically the seminar aims:

To list out those factors that affect agricultural

commodity production and marketing

3

To stimulate dialogue on the best way in which Agriculture

could contribute to achievements of the outcomes of

agricultural marketing.

To give recommendations that can be used to improve

agricultural commodity production and marketing.

4

2. CONCEPT OF AGRICULTURAL PRODUCTION AND MARKETING

Agricultural Marketing:- reference to the agricultural system,

which stresses the importance of this marketing system as a

link between producer and consumer. The traditional farmer in

developing countries sells his produce at the time and for the

price, which are the least advantageous for him. He sells in

order to pay his debts, but the cycle is repeated, and he

becomes involved in new debts. In developing countries, the

farmers sell a "forced" surplus. The farmers are forced to sell

a sizeable part of his produce, sometimes much more than he

would have sold if he had had the choice. In fact, the

surplus marketed in the developing countries is determined as

follows: If we work out the total produce of the peasant,

deduct from this the family’s own consumption, plus payments he

makes by handing over produce, as well as the payment of

various debts, usually to money-lenders, and finally obtained

the amount left to the farmers for marketing, (Adugna, 2006).

Marketing of agricultural product involves various approaches.

The most common are the functional, the institutional, and the

commodity approaches.

2.1. Functional approach

5

Functional approach studies marketing in terms of the various

activities that are performed in getting farm product from the

producer to the consumer. Using the functional approach, it is

feasible to “cost” these functions and to compare them against

others intermediaries doing the same job or against standard of

performance (Rehima, 2006). Moreover, this approach helps to

compare cost and benefits of different functions. The widely

accepted functions are: a) exchange (buying and selling), b)

physical (processing, storage, and transportation), and c)

facilitating (standardization, financing, risk bearing, and

market information). Most of these functions are performed in

the marketing of nearly all commodities.

6

Marketing of agricultural products consists primarily of moving

products from production sites to points of final consumption.

In this regard, the market performs exchange functions as well

as physical and facilitating functions. The exchange function

involves buying, selling and pricing. Transportation, product

transformation and storage are physical functions, while

financing, risk-bearing and marketing information facilitate

marketing

2.2. Institutional approach

Institutional approach examines the activities of business

organizations or people in marketing. The institutional

approach focuses on the study of the various institutions,

which perform the marketing activities. These organizations or

people are middlemen who perform the operations necessary to

transfer goods from the producer to consumer, because of the

benefit of specialization and scale that exist in marketing as

well as production (Adugna, 2006).

2.3. Commodity approach

In a commodity approach, a specific commodity or groups of

commodities are taken and the functions and institutions

involved in the marketing process are analyzed. This approach

focuses on what is being done to the product after its transfer

7

from its original production place to the consumer (Astewel,

2010). It helps to pinpoint the specific marketing problems of

each commodity as well as improvement measures. The approach

follows the commodity along the path between producer and

consumer and is concerned with describing what is done and how

the commodity could be handled more efficiently. This approach

has been used in this study as a guideline to identify

different aspects of the problem.

Astewel, 2010 in his study listed the main functions of

agricultural marketing. These include purchasing, sales,

transportation, storage, sorting and grading, financing, added

risk, and marketing information. Purchase and sale involve

change of ownership. A thing sold is also bought, and anything

bought is sold. Transportation involves the transfer from a

place of surplus to a place of shortage this is the

geographical dimension, while storage involves the transfer

from a period of surplus to a period of shortage the time

dimension.

The performance of business activities directed towards, and

incidental to, the flow of goods and services from producer to

consumer or user." During the 80's the center of gravity of

marketing definitions shifted from its former midway position

between the producer and the consumer, to the side of the

consumer.

8

The consumer and society are the main issues nowadays, and the

manner of satisfying their needs. Successful marketing is that

which accounts for the consumer and its environment, as this is

outlined by the following definition. Consumer satisfaction

with social responsibility has been regarded as the center

around which all marketing activities should revolve. Again,

it was identified that as opposed to the past concept of

marketing, which stressed the sale of products, the approach

nowadays lays emphasis on the satisfaction of consumer needs.

The Mechanism of Marketing Process

\

Most of the operations of the potential production and

marketing require capital, and are carried out at a high risk.

The agricultural produce is usually transported in bulk.

Storage and transportation are very costly. The produce is

seasonal, whereas the demand for it continues all year round.

The traditional farmer is a small marketing unit. Hence,

produce collection is complicated and expensive. Agricultural

marketing involves losses, damage, and quality impairment

during storage and transportation. It is difficult for the

9

The

Producer

The mechanism of marketing in all its aspect

The

Consumer

traditional farmers to undertake the marketing operations, and

therefore intermediaries carry out most of these operations.

10

The obstacles in traditional marketing are the following: The

marketing circle is long and old. The marketing circle: stages

through which the products pass. Starting with the producer,

and on until they reach the consumer. Within the framework of

a traditional market, the stages that the products go through

are extremely long and weighed down by a overabundance of

middlemen.

The infrastructure of transportation is outdated, the roads are

bad or do not exist at all, producers are a long way from the

market, and consequently transportation costs are very high.

The fact that there is no planning in the production and the

irregularity in supplying the market, causes either a surplus

or a seasonal scarcity of products on the market imported

products compete with the local production. Lack of sorting,

processing and of warehouses and lack of organization of

producers and consumers.

The final market is the one in which the produce passes

directly to the consumer, or goes on to be processed, or to be

prepared for transportation to markets abroad. An example is a

market located close to a port. One must distinguish between

the traditional market and the market, which functions

regularly every day and also includes warehouses and wholesale

services, of private or state ownership.

11

The local traditional market is usually maintained in areas

where transportation is almost impossible for the rural

population with its limited means. Moreover, the goods and

services are intended for local consumption. The goods offered

change from season to season in this site. Such local market

forms a network, in which one market is linked to another

through the passage of goods, services and people. The local

market is a meeting place of occasional sellers, who set up at

random in sales shacks, and come together at fixed time

intervals at that fixed site. This is where goods and services

are distributed between the villagers, who act as both buyers

and sellers

One further factor worthy of mention is the price of marketing,

which includes all the subsidiary expenses of the marketing

process. These expenses usually give rise to the difference

between the consumer price and what the producer gets paid.

The reasons for this are many. Farms are widely dispersed and

production units are too small. There is no uniformity in the

quality of the produce. Transportation is difficult, and

marketing information is faulty. There is insufficient capital

for the processing and storage, and financing costs are high.

Other factors, which raise the cost of agricultural production

and marketing, are levies, the failure to sort the produce,

which detracts from the return to the grower, inefficient sales12

procedures, neglecting to weigh the produce. There are too many

intermediaries, and no regulation of the distribution among

markets.

The mechanism of market prices: This is composed of the

following: The price of a product is determined by the supply

and demand in the market. The supply represents the quantity

of products offered the same day on a certain regional market.

The demand represents the willingness to buy the same products

by the consumers, the same day on the market. The price of the

product on the market is not the price that the producer

receives.

2.4. The Role of the Agricultural Sector

The agriculture sector plays an important role in the Ethiopian

economy and posses the potential to advance the country’s

objectives of growth and development. The performance of the

overall Ethiopian economy has been driven by the performance of

the agriculture sector, due to its large share in the economy.

Agriculture in Ethiopian employs the majority of the poor, and

has strong consumption linkages with other sectors. Smallholder

farming dominates agricultural production, and a large

proportion is for subsistence. Since poverty is predominantly a

rural phenomenon, and agriculture is a major economic activity

for rural population, it follows that success in poverty13

Reduction depends critically on performance of the agriculture

sector.

The firm’s main problem is how to manage its resources in such

manner as to maintain an optimum relationship between

expenditure and income. In other words, the firm must

implement an efficient conversion of resources so as to provide

a supply answering an existing demand. The firm should decide

what to offer, and how to pick the suitable market in which to

offer its supply. The combination of all the variables of

which the firm decides to make use constitutes what we call

"the marketing mix."

The firm must decide what is going to be the final price of the

product, the amount of discounts granted to middlemen, what are

going to be the sales areas, and the type and number of

intermediary agencies. Other considerations facing the firm

include the types of packaging, the trade name, possibilities

of obtaining credit, repair service for products sold, product

warranty, subjects that should figure in publicity, promotion

frequency, messages communicated, and gadgets for sales

representatives, points of sale, and gifts to customers.

A good program should take into account all the components for

each and every product. Every variable of the marketing mix is

interchangeable with another. For instance, if we can grant a14

reduction in the price of a product, perhaps we can do with

less promotion outlay.

The firm knows that all the marketing mix components are

expensive, and the main question is how much of each variable

it is worthwhile to apply, and how much money to spend on each

of them. The firm faces the traditional problem of choice, in

view of financing limitations, out of an almost infinite number

of possible combinations of the variables.

On certain of these variables the firm has no control, though

it does exercise an influence on them, such as the market and

the demand it represents, who the competitors are within this

market, what the various sales channels in this market are, the

firm’s employees, and the technology, which affects the use of

the firm’s products. There are also such variables, which are

entirely beyond the sphere of influence of the firm, such as

cyclical price fluctuations, and the change of seasons, the

general level of employment, the legal framework, the social-

environmental framework, and the structure of social

establishments. The people responsible for marketing within

the firm may find themselves in conflict with other factors

within the system, such as restrictions of advertising

budget, forbidden marketing channels, and imposed minimum and

maximum prices.

15

Most small farmers do not possess suitable marketing means, and

this is the main handicap to increased production. Many of the

farmers feel -that they run -too high a risk of not being able

to sell their produce at a fair price. The traditional

farmer’s need above all is to have faith in the marketing

system. It is possible to conclude, and we shall return to

this point further on, that one of the main ways of improving

the farmer’s productivity, does not consist merely in improving

the inputs and the production methods. It is important to

secure a reliable market, a suitable price, and a system by way

of which the farmer can market his produce, and at the same

time receive the highest possible share of the price paid by

the consumer for that produce.

When the farmer sets about marketing his produce, he faces many

constraints. Overcoming them will help us in restoring his

self-confidence, and will help him to develop. The first group

of constraints is those due to physical conditions. The

primary condition is the general infrastructure, which includes

insufficient means of transportation, bad roads, and

undeveloped markets. A further factor is the absence of

agreed standards. There are no agreed standard rates and

measures, and in most places the scales used are biased to the

detriment of the farmer. The next factor is the means of

storage. Insufficient storage space, and faulty facilities

give rise to losses. The lack of storage facilities prevents16

the farmer from keeping over his produce until the season when

its price rises, resulting in loss of income. Handling does not

exist, or is in very bad repair. Transport methods are

outdated, and packing and containers unsuitable. The points of

unloading, loading and supply are unsuitable. The supply

inputs are unsatisfactory to the farmer. These are not

provided in the quantities requested, neither when they are

needed, nor again are they of the kinds and qualities required.

The constraints of agricultural marketing, which hamper the

traditional farmer, also include components, which are more

specifically related to marketing.

Commercial efficiency is hardly accorded any attention,

particularly by government and semi-government institutions,

and sometimes also in cooperative societies set up by the

government. The farmer has a very slim bargaining edge, and

the private traders exploit this fact. The traditional farmer

has no financial means. Further constraints he faces are

related to the marketing price and the pricing policy. In many

cases, the price paid to the farmer leaves him no profit at

all.

The input prices are too high in relation to the marketing

prices. The price fluctuations are excessive, and this in

addition to high and unjustified marketing levies as well as

import taxes and exports taxes. 17

2.4. Empirical Studies Related to constraints in Agricultural

production and Marketing

The weak performance of agricultural markets (both input and

output markets) in Ethiopia has been recognized in various

studies as a major impediment to growth in the agricultural

sector and the overall economy (Eleni et al., 2004, cited

in Dawit, 2005). Wolday (1994) also explained that in

Ethiopia the performance of agricultural marketing system is

constrained by many factors such as: poor quality of

agricultural produce, lack of market facilities, weak

extension services which ignored marketing development

and absence of marketing information.

Many studies conducted in identifying factors affecting market

participation and volume of sale in different crops. Abay

(2005) and Rehima (2006) studied the market participation

of vegetables and pepper marketing at Fogera and Siltie

Zone, respectively. Their studies result indicates that

distance from main road, frequency of extension contact and

numbers of oxen were found significant for onion while

experience of the farmers and distance from road were

significant for tomato. The identified variables found in

pepper marketing study were pepper production, crop

yield of the households and extension contacts.

18

In connection to the above studies Gebremedhin and Hoekstra (2007) identified determinantsof household’s market participation of three crops (teff, wheat

and rice) from three districts of Ethiopia (Ada, Alaba and

Fogera). For analysis, they used community level and

household level data. They identified the determinants of

household choice to produce those market-oriented crops. In

addition to this, the result shows, availability of cultivated

land, traction powers, and household labor supply, are important

factor that induces households to be market oriented.

Dawit (2005) also explained that the flow of

agricultural produce from the producer to the consumer

involves a long chain of intermediaries, who, without creating

value-added, merely keep on stretching the chain. He

further pointed out; the involvement of these superfluous

intermediaries has constrained the development of the

sector and deprived the farmers of equitable returns.

Mohammed (2007) also clearly states that the knowledge gaps in

the crop sector in Ethiopia were inefficiency of the

market system (which includes inefficient marketing

chain, improper transmissions of price to producers and the

type of product produced by farmers i.e. whether it satisfy

the consumers taste and preference).

The nature of the product on the one hand and the lack of19

organized market system on the other have resulted in low

producers’ price. Adugna, 2009 on his study observed that as

there are production and marketing problems challenging fruit

and vegetable development Ethiopia. These are input supply,

pest and disease, low productivity, production seasonality

from the production side and lack of transport, storage,

post handling facilities, organized market system from the

marketing side (WoARD, 2007).

A number of factors related to technological, institutional,

organizational and political situations influence

competitiveness of market chain. So information on factors

that affect competitiveness of fruit and vegetable market is

essential for the design of any strategy or policy that has

an objective of intervention. Identification, characterization

and evaluation of market chain help’s to remove barriers

affecting performance and to strengthen strong sides.

Agricultural marketing acts as an agent of rural

development. Moreover, agricultural marketing will play a

coordinating rule, steering supply and demand with respect to

place, time and form utilities.

20

A properly functioning market (such as pricing system) for

agricultural products is generally perceived as the best

organizational structure to achieve more efficient

production, in terms of type, quantity and quality, and

consumption decisions (Rehima, 2006).

Improved information and marketing facilities enable farmers to

plan their production more in line with market demand, to

schedule their harvests at the most profitable times, to decide

which markets to send their produce to and negotiate on a more

even footing with traders and also it enables traders to move

produce profitably from a surplus to a deficit market and to

make decisions about the economics of storage, where

technically possible.

The possible increment in output resulting from the

introduction of improved technology could not be exploited in

the absence of convenient marketing conditions. As efficient,

integrated, and responsive market, mechanism is of critical

importance for optimal area of resources in agriculture and in

stimulating farmers to increase their output (Andargachew,

1990). A good marketing system is not limited to stimulation of

consumption, but it also increases production by seeking

additional output. However, a critical problem stands in the

course of formulating appropriate policies and procedures for

21

the purpose of increasing marketing efficiency. This has to do

with lack of pertinent marketing information and other

marketing facilities, like storage, transportation, etc.

In Ethiopia, the productions of agricultural commodities are

constrained by variable seasonal conditions. As a result, the

variation in its supply on rural and urban market is

considerable. Rehima (2006), tried to investigating the pepper

marketing chains and factors affecting red pepper supply to the

market in Alaba and Siltie, and reducing the information gap on

the subject and by contributing to work better understanding on

improved strategies for reorienting marketing system for the

benefit of small farmer development and traders.

22

Ethiopia’s share in the world agricultural exports of indicates

reduction in value terms (Teressa, 2000). Among the major

factors affecting agricultural exports, the type of commodities

exported, the trend in the world market and price

competitiveness are the most important ones (Tadesse, 1995). In

order to increase the country’s export performance and

competitiveness, it is important to investigate factors

affecting the export performance on commodity basis.

The government agrarian policy affects the farmer in a major

way. Many governments have a general policy of food imports,

or received food products through foreign aid, which reach that

country at prices far below the prices required by the farmer

in return for his produce. Unrealistic exchange rate policy

results in unprofitable exports, and gives rise to cheap

imports, which compete with the local producer. Many

governments do not carry out a real agrarian reform policy,

which could help the farmers. The small farmer finds himself

in a vicious circle. Companies and marketing organizations

have no economic interest in providing marketing services to a

far ranging and non-uniform farmer population, scattered in

remote and hard to reach places. Without such services, the

small farmers will not take on the risk of stepping up

production beyond their proper consumption.

23

24

3. CONCLUSION AND RECOMMENDETIONS

3.1. Conclusion

Based on the information extracted from literature reviewed of

empirical studies, the major factors affecting agricultural

production and marketing in Ethiopia were identified as

follows.

In Ethiopia the performance of agricultural production and

marketing system is constrained by many factors such as:

poor quality of agricultural produce, lack of improved

seed application, lack of market facilities, weak

extension services which ignored marketing

development and absence of marketing information.

The nature of the product on the one hand and the lack of

organized market system on the other have resulted in

low producers’ price

Improving marketing facilities for agricultural crops

in general enable farmers to plan their production more

in line with market demand, to schedule their harvests at

the most profitable times, to decide which markets to

send their produce to and negotiate on a more even footing

25

with traders. Besides, a proper marketing system is also

enables, to increase production and market efficiency.

Ethiopia agriculture production was constrained by

problem the of formulating appropriate policies and

procedures for the purpose of increasing marketing

efficiency

26

3.2. Recommendation

i) Government intervention There is an urgent need for

government intervention with regard to market price setting

strategy and facilitation of infrastructures. Agricultural

commodity is different from other markets. This needs measures

from the relevant government organs.

ii. Promoting education and trainings in production and

marketing; Changing the attitudes of producers is a crucial

factor in improving the production and marketing performance

of households. If farmers have awareness about the benefit

of the specialty market, they do not need only immediate

economic advantages from the sale of their product.

In case of production, household heads with very limited

education encounter in successfully managing, fertilizer and

pesticide applications, and also what to produce inline with

taste and preference of consumers demand, especially in

the presence of ineffective extension services.

Therefore, stakeholders’, Agricultural, and Rural Development

Offices have to create awareness about the specialty of

market. Continuous education and training on production and

marketing will have a positive impact on their attitudes.

iii. Facilitating extension services; The provision of

27

extension service improves market participation of

agricultural commodities. Farmers have to linking production

with marketing. Also it is good to enlightening farmers to

produce based on market signals, consumer preferences and to

direct or advice on the proper methods of handling, storing,

transporting, and above all improving quality of agricultural

commodity. Hence, it is recommended to assign efficient

extension system, updating the extension agent’s knowledge and

skills with improved production and marketing system.

iv. Establishment of cooperative; The enhancement of

agricultural commodity producers’ bargaining power through

cooperatives is the best measure that should target at reducing

the marketing problem. Such measure also facilitates the

regular supply of a given commodity at reasonable price to

consumers.

Agricultural commodity production and extension contacts are

the positive determinant factors of the quantity of

agricultural commodity supplied. Therefore, policies that would

improve Agricultural commodity production capacity by

identifying new technologies and the causes of diseases

problems. Creating stable demand for surplus production would

enhance farmers’ decisions on Agricultural commodity

production. Agricultural extension services are the major

28

institutions operating in the rural areas. To obtain this

advantage there is a need to improve extension system, and

technical supervision and follow up must be strong.

Strengthening of market extension (linking farmers with

markets, building marketing capacity of farmers, etc.) is

necessary. Moreover, it is necessary to provide information and

enhance the knowledge and skills of farmers and other

institutional changes ought to be made.

The stakeholders should further evaluate critically farmers

cost incurred and benefit obtained from the non-farming income

and agricultural commodity, production and then, let report

them the result. Then, the farmers can decide where to invest

by comparing and contrasting the results of the evaluation.

Competitive market and market information services have to be

established or strengthened to provide farmers and traders

accurate and timely information on current supply, demand and

prices at national and regional levels.

v. Improving the seed system: effective and sustainable seed

system should be implemented particularly the informal seed

system needs to be strengthened since it plays the major role

in seed multiplication and dissemination.

vi. Intervention to increase production and productivity of

29

agricultural commodity

The quantity of agricultural commodity produced at the farm

level affected marketable supply of commodity positively and

significantly. However, farmers are working under limited plots

of land by natural as well as socio-economic factors without

using improved technologies and agricultural inputs. Farmers in

Ethiopia used little inputs (like improved seeds,

pesticides and insecticides and modern technologies). Hence,

increasing production and productivity of commodity per unit

area of land is better alternative to increase marketable supply

of produce. Introduction of improved varieties, application

of chemical fertilizers, using of modern technologies,

controlling disease and pest practices should be promoted to

increase production.

vii. Licensing the traders; Traders should have license

to operate at any level of trade, some of the

traders have continued to operate with no license.

Assemblers and brokers (though few) are with no licensing.

Also no clear demarcation of trading (fore

instance, millers are acting as wholesaler). This has

put the legal traders at a disadvantage when competing in

the market. Therefore, public authorities in collaboration

with representatives of traders should devise means of

controlling those engaged in illegal trade.

30

31

4. REFERENCES

Adunya Gessesse, 2009. Analysis of Fruit and Vegetable MarketChains In Alamata, Southern Zone of Tigray: The Case of Onion,Tomato and Papaya, A Thesis Submitted to the Department ofAgricultural Economics, School of Graduate Studies HaramayaUniversity

Andargachew, Kebede, 1990. Sheep Marketing in CentralHighlands. An M.Sc Thesis Presented to the School of GraduateStudies of Alemaya University. Ethiopia. 117p.

Astewel Takele , 2010 :Analysis Of Rice Profitability AndMarketing Chain: The Case of Fogera Woreda, South Gondar Zone,Amhara National Regional State, Ethiopia, A Thesis Submitted tothe Department of Agricultural Economics, School of GraduateStudies Haramaya University

Bradhan, P., 1990. Symposium on the state and economicdevelopment. J. of Economic Perspectives. 3 : 3-7.

Dawit Alemu, 2005. The status and challenges of agricultural marketing in Ethiopia. PP.1Paper presented at a panel discussion organized by the Ethiopian Association of AgriculturalProfessionals (EAAP), April 22, 2005. Ethiopian Agricultural Research

Dawit, Alemu., Abera Demsie., Lemma D., and Chemdo Amente., 2004. Domestic vegetable seed production and marketing. Research Report No 5. EARO, Ethiopia. 17p

Dawit Alemu and Hailemariam Teklewold, -----: Marketing of fruits and vegetables: opportunities and constraints in the Rift Valley of Ethiopia. Melkasa & Debrezeit Agricultural Research Centers. 22p

32

Elenei Gebre-Medhin, 2001. Market institutions, transaction costs, and social capital.

Ethiopian grain market. Research Report No 124. InternationalFood Policy Research Institute. USA. 93p.

FAO (Food and Agriculture Organization), 2005. Addressing marketing and processing constraints that inhibit agri-food exports: A guide for policy analysts and planners. Agricultural Service Bulletin 160. Rome. Italy. 109p

Gebremeskel Dessalegn, T.S. Jayne and J.D. Shaffer, 1998. Market structure, conduct, and performance. PP.12.Constraints on performance of Ethiopian grain markets. Working paper8, Grain market research project Ministry of economic development and cooperation, January,1998. Addis Ababa.

Getachew Afework, 2000. Rice adaptation in Metema WoredaNorth Gondar one of theAmhara Regional State. Bureau of Agriculture, Bahir Dar. (Unpublished).

MEDaC. 1999. Survey of the Ethiopian Economy: Review of PastReform Development

(1992/9397/98), Addis Ababa, Ethiopia.

Ministry of Economic Development and Co-operation, 1999. Survey of Ethiopian Economy,Addis Ababa, Ethiopia

Mohammed Jabbar, 2007. Agricultural Market Development in Ethiopia: Problems andIssues. International Livestock Research Institute.

Rehima Mussema, 2006. Analysis of Red Pepper Marketing: TheCase of Alaba and Siltie In SNNPR of Ethiopia, A ThesisSubmitted to the Department of Agricultural Economics, School of

33

Graduate Studies Haramaya University

Wolelaw Sendeku, 2005. Factors determining supply ofrice: A study in Fogera district of Ethiopia. An M.ScThesis Presented to the School of Graduate Studies of HararnayUniversity.

Wolday Amha, 1994. Food grain marketing development in Ethiopiaafter the market reform 1990: a case study of Alaba Siraraodistrict. Ph.D Dissertation. 1-Aufl-Berlin: Koster.Germany.292p

Yifru Tafesse,2007. Market structure, conduct andperformances of some selected Large and Medium Scale FoodManufacturing Companies. An M.Sc Thesis Presented to theSchool of Graduate Studies of Addis Ababa University.

34

35