Determinants of potato seed market supply through producer cooperatives in Haraghe, Ethiopia

Abstract

Seed producer cooperatives were initiated by the Integrated Seed Sector Development Program in five regions of Ethiopia including Oromia region since 2009 as an alternative mechanism to narrow the gap between seed supply and demand in the country. Seed marketing is one of the key activities of the program to satisfy the demand of farmers by providing quality seeds in the right place, at the right time and with the right price for sale. Therefore, this study was designed to analyze market performance of potato seed through producer cooperatives in Haramay, Kersa and Chiro districts of Oromia Regional State, Ethiopia by identifying factors affecting potato seed market supply and its intensity. Three stage sampling procedure was used to select potato seed producer households. In the first stage, kebeles in the three districts were categorized into two: those with and without Seed Producer Cooperatives. In the second stage, kebele administrations with Seed Producer Cooperatives were purposively targeted from each district. In the third stage, households in the sample kebeles were stratified into two: member and non-member households. Finally, all farm households who are members of Seed Producer Cooperatives (157) in the sample kebeles were included in the sample. The Tobit model was used to analyze the data. The result of the analysis indicated that Haramaya district, literacy status, family size, extension contact, households’ perception to price offered by cooperatives and distance from cooperative market center are the significant factors affecting members’ potato seed market supply through cooperatives. Based on the findings, policy interventions like cooperatives capacity building, providing adult education, awareness creation on family planning, provision of extension service and accessible cooperative market center are suggested and forwarded.