Marketing Analysis of Onion in the Case of Fentalle Woreda, East Shewa Zone, Oromia National Regional State, Ethiopia

This study is attempted to analyze marketing of Onion in Fentalle Woreda with the following specific objectives, identifying factors affecting farmers’ onion market participation and intensity of participation. Tobit model were used to examine factors affecting supply of onion. The econometric model result indicated that all the significant variables had a positive effect on households’ decision to sell onion except for total number of family size of the head of the household which negatively influenced the marketable supply of the onion. Among the explanatory variables which included in the model, only five variables significantly influenced onion marketable supply. They were family size, non-farm income, total land size, total quantity of onion produced and credit services access significantly influenced the quantity of onion supplied to the market. Producers were not benefited from onion production because of the low producers’ share of the markets and high marketing cost. Therefore, the attentions of government are needed in improving the inefficiency in marketing through strengthening institutions. The study suggests that, effective market information service has to be established for accurate and timely market information to producers. Moreover, attentions should be given to improve the storage and transportation systems, access to credit and other services such as training to improve the efficiency of marketing of onion.

Author(s): Debela Adugna

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