MARKET CHAIN OF HARICOT BEAN: THE CASE OF SAYINT DISTRICT, SOUTH WOLLO ZONE, AMHARA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

In this study market chain of haricot bean in the case of Sayint district was analyzed. The area is known for its potential production of haricot bean; however, market chain of haricot bean was not well understood. The objectives of this study were to identify major haricot bean market chain actors and their roles, to analyze structure, conduct and performance of haricot bean market; to identify factors affecting market supply of haricot bean of smallholder farmers and to identify the major constraints and opportunities in haricot bean production and marketing in Sayint district. The study used cross-sectional data collected in 2015/16 production year from a sample of 121 farm households selected through three stage sampling techniques and all 28 haricot bean traders who were available during the survey period. Household data collected using pre-tested semi-structured schedule was used for the study. Moreover, focus group discussions were used to generate qualitative data and secondary data were also used to supplement the primary data. Since all sampled haricot bean producers supplied haricot bean to market, multiple linear regression model was used to analyze factors affecting haricot bean market supply. The main market participants of haricot bean marketing in the district during the production year were producers, rural assemblers, urban assemblers, wholesalers, and consumers. Market concentration ratio result showed that Adjibar market was characterized by strongly oligopolistic market structure with the traders’ concentration ratio of 50.86%. The results of econometric analysis showed that education level, land allocated for haricot bean production, lagged market price, yield of haricot bean and access to credit significantly affected haricot bean market supply of smallholder farmers positively; whereas, distance to the nearest market affected negatively. Based on the finding of the study, policy interventions need to be made to increase the capacity building (access to education), intensive use of the existing land, provide credit services for farmers, encourage farmers’ group marketing and linking them with exporters, enhance yield of haricot bean, and road infrastructure development.