FACTORS AFFECTING MARKET CHAIN PERFORMANCE OF AGRICULTURAL INPUTS:-THE CASE OF AGRICULTURAL COOPERATIVE UNIONS AROUND ADDIS ABABA

Abstract

Market chain of Agricultural input is an approach that allows cooperative unions to respond to market competition challenges on input supply. Agricultural cooperatives are ideal means for Agricultural input marketing for small holder farmers. Therefore; the major concern of this thesis was to analyze factors affecting market chain performance of agricultural input and to measure the most determinant factors among the Legal, Marketing, service delivery and financial factors. The study uses explanatory research design with mixed approach of both qualitative and quantitative data. Sampling techniques of the study were probability and non probability sampling. To select cooperative unions of the study area convenience sampling from none probability sampling techniques were used and random sampling were followed from probability sampling to select 200 respondents from the total of 400 population of cooperative unions. Structured interview schedule and closed ended questionnaires were used for collecting the essential qualitative data and quantitative from the sampled respondents. To generate qualitative data structured interview were conducted. The quantitative data were analyzed using descriptive statistical tools, Pearson Correlation and Multiple Linear Regressions from inferential statistics. The major output of the study indicates that legal factor have negative significant relationship with market chain while marketing, service delivery and financial factors have positive significant relationship with market chain Performance of the cooperative unions. In addition to this, the financial factor has the most determinant factor among the variables. Therefore, it is recommended that, the legal factors which is mainly bureaucracy and regulation should be flexible and compatible with relevant actors of the cooperative unions along the market chain to bring about change for efficient and effective delivery of agricultural inputs/services. Likewise, financial factors are the most determinant factor of market chain among independent variables.