THE ROLE OF RURAL-URBAN MARKETING LINKAGES ON THE LIVELIHOOD OF RURAL HOUSEHOLDS: THE CASE OF SHAKISO TOWN AND ITS SURROUNDING RURAL KEBELES, GUJI ZONE, OROMIA REGIONAL STATE ETHIOPIA

Abstract

This research is undertaken to explore rural-urban marketing linkages and its role on the livelihood of rural households in Shakiso town and its surrounding rural kebeles. Both descriptive & inferential statistical tools including standard deviations, coefficient of variations, were employed to analyze quantitative data. The finding reveals that forward production linkages were very weak except for the backward production linkage which was reflected mainly in the use of inputs. However, a strong consumption linkage was observed as farmers tend to purchase goods and services from the town. The insufficient crop production had made the existing marketing linkage to be expressed only in the form of exchange of livestock, vegetables, and honey and forest products. Inadequate proper market facilities, infrastructures and absence of mutual interdependence between local urban and rural governments are the main challenges. A household’s farm size, nonfarm activity, and distance from the town were found to be the most important determinants of the orientation as well as the magnitude of the marketing linkage. Finally, the researcher recommended that urban oriented farming practices such as irrigation practices and honey production need to be strengthened. There is a need to further strengthen the existing financial linkages and nonfarm skills to enhance livelihood diversification. Furthermore there is a need to forge forward production linkage as it provides opportunity as agro-processing industries exist in the town. Access to transport would strengthen the RUL.