Abstract:
This paper aims at, to analyze the market chain of red onion in Dugda distict. Eastern shoa
zone of Oromiya region. Specifically the study attempts to identify the market structure and
investigating market conduct of red onion in dugda district. The study also studies the
performance of the market and identifies major marketing problems in trading of Red
onion in Dugda district. The market structure, conduct and performance model was adopted
for this study. A total of 360 (148 to producers and 10 for brokers,7J for wholesalers
and 122 to retailers),questionnaire was distributed using time location sampling resulted
in 332(134 from producer, 10 from brokers, 67from wholesalers and 121from retailers.)
viable responses. The net profit obtained by the different market chain actors is indicated
asfollows. From simple calculation, on the average, a producer profited 213.04, per quintal
production (assuming an average price of 250 ETB per quintal.). On top of these
wholesalers and retailers profitability from the aforementioned crop were 351ETBper quntal
and, 305.61ETB per quintal. However, this potential benefit is under challenges of
imperfect marketing. The market conduct is characterized by unethical practices of
cheating and information collusion that led to uncompetitive market behaviour even though
the calculated concentration ratio did not indicate oligoposony market behaviour (13.08%).
Therefore some corrective measures are required by the government as well as institutions
like cooperatives.
