Abera Abebe, Harko Halala
Abstract: Cereal crops are major food crops all over the world and their productions as well as marketing system demand alert follow up from its input supply to final market by all agents at each stage. The research entitled with Factors Affect Maize Production and Marketing is conducted in Wolaita and Dawuro Zones. The objectives of this study are to assess the maize market structure, conduct and performance, to identify the determinants of maize production and to identify factors affecting farmers’ participation in maize marketing and volume marketed in the study areas. Primary and secondary data were used for this study. A total of 115 sample household heads, 25 maize traders were selected from both zones. The descriptive and econometric analysis output indicates that the maximum profit margin of wholesalers was 296.40 ETB/qt and farmers’ profit margin was 167.10 ETB/qt. Heckman model was employed to identify factors that affect market participation decision and intensity of participation in maize markets. The selection equation outcome showed that participation decision was positively and significantly affected by age, market price, sex, quantity produced and land size. The result equation results shown that intensity of participation was found to be positively and significantly affected by land size, market information access, number of oxen and household head’s literacy status. Therefore, the study recommends that timely market information and education accessing, using modern farming system, engaging productive work force in maize production and marketing are required in the study areas.
Keywords: Maize, Heckman, Market Margin, Market Channel