Abstract:
This study attempted to identify teff market actors and their roles, analyze structure-conduct
and performance of teff market, identify problems and opportunities in teff production and
marketing, and analyze determinants of teff market supply. Both primary and secondary
sources of data were used for this study. To analyze the data, both descriptive statstics and
OLS methods were used. The study indicated that in the district, input suppliers, producers,
village collectors, urban assemblers, wholesalers, retailers, processors and consumers were
the major market participantes who do supplying, production, collecting, assemblling,
retailing, processing and consumption of teff, respectively. Concentration ratio (CR4) at
Motta market was found to be 56.72% and it indicates strongly oligopolistic structure of teff
market. Performance of teff market was analyzed using marketing margins based on costs
incurred and gross profit generated for market chain actors. The result indicated that, even if
all market participants were advantaged and generated positive profit from teff market, there
is incomparable costs incurred and profit generated among them. The study also identified
shortage of finance and prevalence of crop insects as the major problems of teff traders and
farmers. Increasing demand and long storage life of teff are among the major opportunities
for sample farmers and traders. Factors influencing amount of teff supplied to the market were
analyzed using regression analysis. The result indicated that family size in active labor force,
number of oxen owned, land allocated for teff, frequency of extension contact, access to
market information, lagged price, and quantity of fertilizer used positively and significantly
influenced amount of teff supplied to the market. Finally based on the study, strengthening
extension services, increasing farmers’ access to modern inputs, its use and application rate;
increasing bargaining power of farmers, developing and improving infrastructures, and
encouraging cooperatives in teff trading in the district are suggested.
