View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by IDS OpenDocs Mekelle University The School of Graduate Studies Faculty of Dry Land Agriculture and Natural Resources OPPORTUNITIES AND CHALLENGES OF VEGETABLE MARKETING IN KILTE-AWLAELO WOREDA By Alem Kiros A Thesis Submitted in Partial Fulfilment of the Requirements for The Master of Science Degree In Cooperative Marketing Advisor Dr. G.B. Pillai (Professor) March, 2008 Mekelle TABLE OF CONTENT DECLARATION..................................................................................................... v ABSTRACT………………………………………………………………………….vi ACKNOWLEDGEMENT...................................................................................... ix ACRONYMS……………..………………………………………………………….x LIST OF TABLES ................................................................................................. xi LIST OF FIGURES.............................................................................................. xiii CHAPTER I ............................................................................................................ 1 INTRODUCTION................................................................................................... 1 1.1 Background ........................................................................................................1 1.2 Problem statement .............................................................................................2 1.3 Purpose of the Study............................................................................................4 1.4 Objective of the study ........................................................................................5 1.4.1 General objective ........................................................................................5 1.4.2 Specific objectives .......................................................................................5 1.5 Hypothesis ...........................................................................................................5 CHAPTER II........................................................................................................... 6 Literature Review.................................................................................................... 6 2.1. Concepts ..........................................................................................................6 2.1.1 Importance of marketing ...........................................................................6 2.1.2 Marketing strategy ......................................................................................6 2.1.3The Marketing Process ..................................................................................8 2.2. Definitions ..................................................................................................9 2.2.1 Market Definition ........................................................................................9 2.2.2 Marketing ..................................................................................................10 i 2.2.3 Agricultural marketing ............................................................................10 2.2.4 Agribusiness ...............................................................................................11 2.2.5 Marketing management ...........................................................................11 2.2.6 Market performance .................................................................................11 2.2.7 Efficiency of marketing ............................................................................11 2.2.8 Technical efficiency ...................................................................................12 2.2.9 Exchange efficiency ...................................................................................12 2.2.10 Economic efficiency ................................................................................12 2.2.11 Marketing channels ................................................................................12 2.2.12 Farmers’ choice of marketing channels ................................................12 2.2.13 Farmers’ choice of marketing channels acting individually ...............13 2.2.14 Marketing margin ...................................................................................13 2.3 Empirical studies ..............................................................................................13 2.3.1 Local Experience .......................................................................................13 2.3.2 International Experience ..........................................................................20 CHAPTER III ....................................................................................................... 28 Materials and Methods ......................................................................................... 28 3.1 Site Selection and Description of the Study Area. ........................................28 3.2 Agriculture ........................................................................................................29 3.2.1. Crop production /rain fed agriculture ...................................................29 3.2.2. Irrigated agriculture ................................................................................29 3.3. Data collection Procedure and Sampling Techniques .................................30 3.3.1. Sampling ...................................................................................................30 3.3.2. Data Collection .........................................................................................31 3.3.3 Data analysis ..............................................................................................32 ii CHAPTER IV........................................................................................................ 38 RESULTS AND DISCUSSION ............................................................................ 38 4. 1 Some Characteristics of the Respondents...................................................38 4.1.1 Age and Sex ........................................................................................38 4.1.2 Education ...................................................................................................39 4.1.3: Marital status ...........................................................................................41 4.1.4: Means of income ......................................................................................42 4.1.5 Experiences in Vegetable Cultivation .....................................................43 4.1.6 Irrigation ....................................................................................................43 4.1.7 Labour ........................................................................................................46 4.1.8 Fertilizer and Pesticides ...........................................................................46 4.2 Vegetable production and marketing in the Kilte Awlaelo woreda ............48 4.2.1Nature of Vegetable production and marketing in Kilte Awlaelo woreda .................................................................................................................48 4.2.2 Opportunities for expansion of vegetable production ...........................54 4.2.3. Opportunity for expansion of vegetable marketing ..............................55 4.3 Constraints of vegetable production and marketing in Kilte awlaelo woreda .....................................................................................................................56 4.3.1 Production constraints ..............................................................................56 4.3.1 Vegetable Production constraints ............................................................58 4.3.2 Vegetable marketing constraints .............................................................59 4.4 Examination of the pattern of household decisions in crop and market outlet choices. ..........................................................................................................60 4.4.1 Introduction ...............................................................................................60 4.4.2 Crop choice and land allocation across vegetable crops .......................63 iii crop per household............................................................................................... 63 4.4.3 Market outlet choice .................................................................................64 4.5 production and marketing performance of the Weroda ..............................68 4.5.1 Production performance ..........................................................................68 4.5.2 Marketing efficiency .................................................................................75 4.5.3 Price Analysis ............................................................................................79 4.5.4 Market facilities/infrastructure ...............................................................82 4.5.5 Production participation ..........................................................................86 4.5.6 Marketing decision ....................................................................................86 4.6 The role of multipurpose cooperatives in vegetable marketing ...................87 4.6.1 Introduction ...............................................................................................87