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Mekelle University Mekelle University College of Business and Economics Department of Cooperative Studies DETERMIINANTS OF VEGETABLE INCOME IN THE SUPPLY CHAIN OF PERSHABLE AGRICULTURAL PRODUCTS (In the case of irrigation cooperatives – Southern Tigray) By Shimeles Negussie A Thesis Submitted in the partial fulfillment of the requirements for Master of Arts Degree In Cooperative Marketing Advisor: Hailay Gebretensay, PhD September, 2010 Mekelle Ethiopia i DETERMINANTS OF VEGETABLE INCOME IN THE SUPPLY CHAIN OF PERISHABLE AGRICULTURAL PRODUCTS (In the case of irrigation cooperatives – Southern Tigray) By Shimeles Negussie, (Id. No. FDA/PS0025/2000/00) A Thesis Submitted in partial fulfillment of the requirements for Master of Arts Degree In Cooperative Marketing Mekelle University Advisor: Hailay Gebretensay, PhD September, 2010 Mekelle Ethiopia ii DEDICATION This piece of work is in memory of my late mother Negat Bedanie, who had played major role in nursing and educating me, and who was eager to see my successes. “Mami”, rest in peace. iii DECLARATION This is to certify that this thesis entitled “Determinants of vegetable income in the supply chain of perishable agricultural products” in southern zone of Tigray, submitted in partial fulfillment of the requirements for the award of the degree of M.Sc., in Cooperative Marketing to the School of Graduate Studies, Mekelle University, through the Department of Cooperatives, done by Mr. Shimeles Negussie, Id.No. FDA/PS0025/99 is an authentic work carried out by him under my guidance. The matter embodied in this project work has not been submitted earlier for award of any Degree or Diploma to the best of my knowledge and belief. Name of Supervisor: Dr., Hailay Gebretensay _______________________ Date : ________________________ iv STATEMENT OF THE AUTHOR I declare that this thesis is my bona fide work and that all sources of material used for this thesis have been duly acknowledged. This thesis has been submitted in partial fulfillment of the requirements of M.Sc. degree at Mekelle University and is deposited at the University Library to be made available to users under rules of the Library. I solemnly declare that this thesis is not submitted to any other institution anywhere for the award of any academic degree, diploma, or certificate. Name: Shimeles Negussie __________________________ Place: Mekelle University v BIOGRAPHY The author, Shimeles Negussie was born in Addis Ababa city administration on May 15, 1973. He attended his elementary and junior secondary school education at Miazia 23 junior secondary school and later attended his High-school education at Higher- 12- comprehensive high school. After completion of his high school education, he joined Addis Ababa commercial college/Addis Ababa University and completed two years diploma program in purchasing and supplies management. After graduation he was employed in different governmental and non - governmental organizations for more than 10 years. While serving in different organization he got an opportunity to join at Mekelle University for his degree program in economics from 1998 - 2005. After completion of the under graduate degree, he served in private company for four years and returned back to Mekelle University to attend his post graduate study in 2009. vi ACKNOWLEGMENT My greatest debt is owed to Dr Hailay Gebretensay, my supervisor. I sincerely thank him for his advice and guidance in all areas of this thesis, from reviewing the original proposal, editing the survey questionnaires, and reading and commenting on the draft submitted thesis. My heartfelt thanks are also owed to Ato Negusse Kidanu and Zemu Haftu whom helped me in facilitating to collect the household survey data and providing all the available secondary data which was crucial for this thesis. My special thanks also due to Ato Giday Mesfin and Mezgebe Tewolde who manage the whole household survey data. I am exceptionally indebted to my mother Negat, for her love, patience, endurance and encouragement till her life for my success. I also extend my deepest gratitude for my wife Meserete and my daughters Netsuh, Yabsira and Belen for providing me their deepest love throughout my study. My study would not have been possible without their love and support. Shimeles Negussie September 2010. vii TABLE OF CONTENT PAGES DECLARATION ............................................................................................................... iv STATEMENT OF THE AUTHOR .................................................................................... v BIOGRAPHY .................................................................................................................... vi ACKNOWLEGMENT ..................................................................................................... vii LIST OF TABLES ............................................................................................................ xii LIST of FIGURES ........................................................................................................... xiii ACRONYMES ................................................................................................................ xiv ABSTRACT ...................................................................................................................... xv CHAPTER - ONE ............................................................................................................... 1 1. Introduction ..................................................................................................................... 1 1.1. BACKGROUND ........................................................................................................... 1 1.2. STATEMENT OF THE PROBLEM ................................................................................... 3 1.3. OBJECTIVES OF THE STUDY ....................................................................................... 5 1.4. SIGNIFICANCE OF THE STUDY .................................................................................... 6 1.5. SCOPE OF THE STUDY ................................................................................................ 6 1.6. LIMITATION OF THE STUDY ....................................................................................... 6 1.7. ORGANIZATION OF THE PAPER ................................................................................... 7 CHAPTER - TWO .............................................................................................................. 8 2. Literature Review ........................................................................................................... 8 2.1. BASIC CONCEPTS ....................................................................................................... 8 2.1.1. Supply chain of agricultural products ............................................................... 8 2.1.2. Marketing of agricultural products ................................................................... 9 2.2. APPROACHES TO MEASURE THE SUPPLY CHAIN ....................................................... 11 2.3. SUPPLY CHAIN FACTORS AFFECTING INCOME .......................................................... 14 2.3.1. Nature of the market and income .................................................................... 15 2.3.2. Production and income ................................................................................... 16 2.3.3. Post harvest handling and income................................................................... 17 2.3.4. Nature of the product and income ................................................................... 19 2.3.5. Membership and income ................................................................................. 21 2.3.6. Conceptual framework of the paper ................................................................ 23 CHAPTER - THREE ........................................................................................................ 24 3. Methodology ................................................................................................................. 24 3.1. DESCRIPTION OF THE STUDY AREA .......................................................................... 25 3.1.1. Southern Zone of Tigray ................................................................................. 25 viii 3.1.2. Alaje Woreda .................................................................................................. 26 3.1.3. Ofla Woreda .................................................................................................... 27 3.2. SOURCE AND DATA REQUIREMENTS ....................................................................... 28 3.2.1. Primary data .................................................................................................... 29 3.2.2. Secondary data ................................................................................................ 29 3.3. SAMPLE SIZE AND METHOD OF SAMPLING ............................................................... 29 3.4. METHOD OF DATA COLLECTION .............................................................................. 30 3.5. METHODS OF DATA ANALYSIS ................................................................................. 31 3.5.1. Descriptive statistics ....................................................................................... 32 3.5.2. Empirical analysis ..........................................................................................
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