ANALYSIS OF BREAD WHEAT MARKETING CHAINS: A CASE STUDY OF GOZAMIN WOREDA IN EAST GOJJAM ZONE, AMHARA REGIONAL STATE,ETHIOPIA.

Abstract

This case study was conducted in Gozamin Woreda, Amhara regional state of Ethiopia during the 2013/2014 cropping season. The aims of the research was to identify wheat marketing chains and examine the performance of actors in the chains; to analyze the determinants of wheat supply to the market in the study areas and to identify the constraints encountered in bread wheat production and marketing. One hundred twenty (120) smallholder farm households and 20 traders were taken for this study. A semi-structured questionnaire based interview was applied to collect the data. Statistical computer software programs were used to analyze the data. Descriptive statistics and OLS regression models were used as analytical tools. This particular study revealed that 40% of the total wheat production in the sample area was supplied to the market. The measures of market concentration indicated that, wheat market structure in the study area is fairly competitive; however the existence of barriers to market entry, and the constraints facing farmers and traders had a negative impact on the performance of the wheat marketing system. The major barriers to entry into grain trade in the study area were lack of working capital and absence of stores. The major determinant factors affecting marketed supply of wheat was estimated by ordinary least square regression model. Among the variables included in the analysis, 6 variables that found significantly affecting marketed supply of wheat were number of oxen owned, amount of yield, and land size of wheat, family size, access to extension service and presence of active family labor. The main grain marketing constraints for traders are insufficient infrastructure, absence of store, theft, poor access to credit and absence of trust between traders. The possible recommendations forwarded are increasing production and productivity of wheat through facilitating for farmers to own oxen and other improved ploughing tools, supporting formal access to credit for traders and producers, improving the quality of extension system and Promoting family planning.