Abstract:
This study was initiated with the general objective of analyzing wheat-marketing performance in
robe District of Oromia Region, Ethiopia. Both qualitative and quantitative data for this study
were collected from primary and secondary source of data. The primary data was collected from
156 sampled households, and 24 traders. A two-stage random sampling procedure was employed
to select 156 households from 4 kebeles. Much of the marketed surplus of wheat was channeled
through producer, assembler, cooperatives, wholesalers, retailers and consumers. Concentration
ratio of the largest four traders trading in four markets was 56.05%, which indicate that strong
oligopolistic form of market structure. Marketing performance of wheat was analyzed by
estimating the marketing margin considering associated marketing costs. Producers obtained
average profit of Birr 730.95 per quintal in 2019/20 cropping year from wheat production. The
average total costs incurred by assemblers, wholesalers, and retailers of wheat were 57, 137.6,
and 106.15 Birr per quintal, respectively. Structure, conduct and performance analysis,
descriptive statistics and econometric models (i.e Heckman twostage) were used for data
analysis. Heckman twostage model was employed to identify factor affecting wheat market
participation decision and the level market participation. The model results showed that six
explanatory variables significantly affected market participation decision such as age of
household, frequency of extension contact, distance from the nearest market, lagged wheat
market price, number of oxen owned and family size were significantly affect wheat market
participation decision and four explanatory variables significantly affected the volume of wheat
marketed by smallholder wheat producers. Total land size owned, land allocated for wheat
product, farm income, wheat harvested product were positively and significantly affecting wheat
market supply. Absence of improved seed, absence of information on how to use credit, shortage
of land, lack of transport facility, quality problem, poor actors linkage, lack of market
information, and high cost of seed and fertilizers were the major challenges of wheat marketing
performance. Therefore, policy aiming at systematic approach to wheat market performance,
increase in farmers training centers, and strengthening of family planning education through
rural health extension, land intensification, improved infrastructure, supplying production inputs
timely, improving yield and increasing wheat production, knowledge, and creating and
strengthening linkages between actors were forwarded by the study to improve wheat marketing
performance in the study area. Both the public and private sectors have a role to play in
achieving this.
