Application of multivariate probit on determinants of sesame farmers market outlet choices in Gimbi District, Ethiopia

Abstract

Sesame (Sesamum indicum L.) is an important crop produced in Ethiopia for oilseed production and it was ranked first in total production from oil crops in 2013. The study is based on a survey of 166 farmers covering six kebeles in Gimbi district, Ethiopia with the objectives of identifying factors affecting choice of market outlet of sesame producers in the study area. Data were collected from both primary and secondary sources in 2015/2016. Multivariate probit model was for analysis. The results indicated that the probability of wholesalers to choose an outlet was positively and significantly affected by household education, distance from the nearest market, quantity produced and market price of sesame but negatively affected by collector market outlets. On the other hand, the probability of choosing cooperative marketing outlet is positively affected by membership of cooperative and distance from the market whereas it is negatively affected by market price of sesame. Therefore, the study confirmed the continued viability of sesame marketing cooperatives as suppliers of sesame-tosesame buyers in the study area. The results obtained have important implications for farm management and future of farmers, as well as for the assessment of their development impacts.