Analyzing market chain of red onion marketing A case study of structure, conduct and performance of red onion market in Dudga distict, Eastern shoa zone of Oromiya region

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.