Abstract:
Groundnut is an important crop from the perspective of food and nutrition security of poor
smallholder farmers in developing countries, where it is grown widely. It also generates
considerable cash income for several small scale producers and foreign exchange earnings
through export for Ethiopia. If market performance is inefficient, the sustainability of the
production becomes questionable and, as a result, a steady supply of a commodity for the
market may become difficult. Few studies have been done on groundnut profitability but
adequate information on performance of groundnut market is not well identified. Hence this
study analyse groundnut market performance in Limmuseka District, Oromia National
Regional State, Ethiopia. The overall objective of the study was to evaluate groundnut market
performance. Primary data were collected from 147groundnut producers and 40 trader sand
consumers using semi structured questionnaire with three stage sampling technique in
2018/19. The data were analyzed using descriptive statistics; gross-margin analysis,
measures of market concentration and regression analysis. Concentration ratios (4-firm)
were employed in measuring the market concentration structure of groundnut market and
multiple linear regression models was employed to identify factors that affect groundnut
quantity supplied. Results revealed that the market structure for groundnut is strongly
oligopolistic with Concentration ratios (4-firm) of 73.02%. Groundnut marketing is profitable
in the study area though in the face of few constraints. Result of multiple linear regression
model revealed that family size, land size, market information, average lagged price and
extension contact were the main determinants of market supply of groundnut at household
level. The presence of suitable soil and agro ecology Experience of producers’ in groundnut
production & marketing, Willingness of producers’ to use new groundnut production &
marketing technology, Availability of market demand throughout the year, Availability of
supportive government policies and government offices organized at all levels to implement
the policies are the main opportunity for groundnut producers in the study area. Howe ever
some constraints like using local seeds, Disease and pest, groundnut weeds, unfair weighing
scale, deduction, and quoting of lower prices than actual Poor market access roads that
makes movement of produce to markets expensive etc the main problems for groundnut
producers in the study area. Using high Yielding variety of groundnut, Access to Market
Information Promoting and strengthening of cooperatives, strengthening extension contact,
Proper utilization of land resource the main recommendation for concerned bodies.
