ANALYSIS OF TEFF (Eragrostis tef) MARKET CHAIN: THE CASE OF HULET EJ ENESE DISTRICT, EAST GOJAM ZONE, AMHARA REGION, ETHIOPIA

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.