CHICKPEA MARKET CHAIN ANALYSIS IN GONDAR ZURIA WOREDA OF NORTH GONDAR ZONE, AMHARA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

The agricultural sector greatly influences economic performance in Ethiopia. About 11.7 million smallholder households account for approximately 95 percent of agricultural GDP and 85 percent of employment. This study was initiated to analyze chickpea market chains in Gondar Zuria Woreda, North Gondar Zone, Amhara National Regional State, Ethiopia. The objectives of the study were to identify key chickpea market chain actors and their roles;to analyze structure, conduct and performance of chickpea market; to identify factors affecting market supply of chickpea at farm household level and to identify the key constraints and opportunities of chickpea production and marketing in Gondar Zuria woreda. The study used cross-sectional data collected in 2015/16 production season from a sample of 123 farm households selected through two-stage random sampling techniques and all 35 chickpea traders available during the survey period. Primarily, the research used household data collected using pre-tested semi-structured questionnaire. Moreover, focus group discussions and secondary data were also used to supplement the primary data. Since all sampled chickpea producers supplied chickpea during the survey, multiple linear regression model was used to analyze factors affecting chickpea market supply. In market channel analysis of the commodity, five channels are identified. The main market participants of chickpea marketing in the Woreda in the production year were producers, farmers’cooperatives, cooperatives union, assemblers, retailers, wholesalers, Ethiopian Commodity Exchange and consumers. Market concentration ratio result showed that in Maksegnit and Tseda towns chickpea markets are characterized as strongly oligopolistic markets with the buyers’ concentration ratio of 57.1% and 73.6%, respectively. The results of econometric analysis showed that productivity of chickpea in 2015/16, land allocated for chickpea production, lagged price, education level of household head and year of experience in chickpea production of the household positively and significantly affected chickpea market supply at farm household level. Based on the study results, policy interventions like encouragement of the concerned body to increase the productivity of chickpea, strengthening access to education, strengthening trainings, encouraging entry into chickpea market so as to make the market competitive are required.