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Discoveries in Agriculture and Food Sciences - Vol. 10, No. 6
Publication Date: December 25, 2022
DOI:10.14738/dafs.106.13903.
Deksiso, H., & Gebru, G. (2023). Determinants of Teff (Eragrostis Tef) Market Outlet Choice in Woliso and Becho Districts of South
West Shoa Zone Oromia Regional State, Ethiopia. Discoveries in Agriculture and Food Sciences, 10(6). 40-47.
Services for Science and Education – United Kingdom
Determinants of Teff (Eragrostis Tef) Market Outlet Choice in
Woliso and Becho Districts of South West Shoa Zone Oromia
Regional State, Ethiopia.
Hasen Deksiso
Arsi University, College of Agriculture and Environmental Science,
Department of Agribusiness and Value Chain Management
Getahun Gebru
Ambo University Woliso Campus, School of Business and Economics,
Department of Agricultural Economics
Abstract
This study was aimed to identifying determinants of (teff Eragrostis tef) the market
outlet choice in Woliso and Becho districts of South West shoa zone. Both primary
and secondary data were used in this study. Primary data was collected from 138
sampled farmers and 38 traders at different levels by using semi-structured
interview. Descriptive analysis and econometric model multivariate probit model
were employed to analyze the cross-sectional data. The output results suggest that
households had three major market outlet choices (wholesalers, Retailers and
other agents like (coop, union) and separate estimation of choice of the three
outlets were biased since the choice decisions were interdependent and
simultaneous. The joint probability of choosing all the three outlets was 0.63
percent and the probability of failure to the three outlets was only 6.1 percent. The
results indicate that smallholder farmers choose at least two outlets at a time. The
choice of producers on the three outlets was determined by similar underlying
factors. District, Age, total family size, Education level, Farm size, Farming
experience, off farm, Livestock (Tlu), Access to market information, Extension
service, Access to credit and quantity produced. The outlet choice of Wholesalers
was influenced by Education level, off- farm and quantity produced positively.
Education level, Farming experience and off- farm were significant determinants of
the retailors’ outlet choices negatively and age was positively influence. Other agent
market outlet was also negatively and significantly affected by district, livestock
ownership and off farm and family size is positively affect it. Therefore, efforts are
needed to promote producers to choose wholesalers and retailers outlet since they
enable them to get premium price margin. Strongly what should be given more
emphasizing from government side is to strength union and cooperative
organization available in area.
Keywords: Teff (Eragrostis tef), Multivariate probit model; Woliso, Becho;
INTRODUCTION
Teff (Eragrostis tef) is a tropical cereal. It is considered a low-risk crop from the perspectives
that it can be cultivated in a broad range of ecological surroundings and under tough
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Deksiso, H., & Gebru, G. (2023). Determinants of Teff (Eragrostis Tef) Market Outlet Choice in Woliso and Becho Districts of South West Shoa Zone
Oromia Regional State, Ethiopia. Discoveries in Agriculture and Food Sciences, 10(6). 40-47.
URL: http://dx.doi.org/10.14738/dafs.106.13903
environmental conditions where most other cereals fail. Teff is a major food crop in Ethiopia
and Eritrea, Africa, where it is mainly processed into different foods and beverages, such as
breads, sweet unleavened bread, porridges, pancakes, biscuits, cookies, cakes, stir fry
dishes, casseroles, soups, stews and puddings (Elke K. Arendt, 2013).
The majority of Ethiopia’s population earns its livelihood primarily from agriculture. The
agricultural sector, which is stunned by subsistence smallholder farmers, is the primary source
of livelihood for the majority of the population and the basis of the national economy.
Agriculture contributes about 35.8 percent to the national GDP and still about 70 percent of
Ethiopian population is employed in the agriculture sector (World factbook, 2018).
Teff (Eragrostis tef) is a major staple food crop in Ethiopia. Teff is grown at middle elevations
between 1,800 and 2,200 meters above sea level and in regions that have adequate rainfall.
Compared to other cereals, Teff is considered a lower risk crop as it can withstand adverse
weather conditions (Fufa et al. 2011).
RESEARCH METHODS
Description of the Study Area
The study was conducted in Woliso and Becho Districts of South West Shoa Zone of Oromia
National Regional State.
Southwest Shewa is one of the zones of the Oromia Region in Ethiopia. Based on the 2007
Census conducted by the Central Statistical Agency of Ethiopia (CSA), this Zone has a total
population of 1,101,129, of whom 556,194 are men and 544,935 women. 149,878 or 13.61% of
population are urban inhabitants (CSA, 2007).
Woliso district is far about 114 km southwest of Addis Ababa. It is located at 8o 32′ 23.0′′ N
latitude and 37o 58′ 16.3′′ E longitude and altitude ranging from 1600-2880 meter above sea
level. It receives annual rainfall ranging from 900-1900 mm. The mean minimum and maximum
air temperature of the area is 10°C and 35°C, respectively. Agro ecologically, it is classified into
weinadega (70%) and dega (30%) zones. Chromic and Vertisol are the dominant soil types
found in the district. It is bordered by the south by Goro, on the west by Wonchi, on the east by
Beco and on the north by Dawo districts of southwest Shewa zone (SWSZANO, 2020).
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Discoveries in Agriculture and Food Sciences (DAFS) Vol 10, Issue 6, December- 2022
Services for Science and Education – United Kingdom
Figure 1. Map of study area
Source of Data and Data Collection Tools
The data used for this study was collected from primary and secondary sources. Formal sample
survey methods were used to collect primary and secondary data. The formal survey was
undertaken through formal interviews with selected farmers and traders and unions using a
semi structured questionnaire for each group. Totally 138 sample farmers were selected
randomly based on proportional to the population size using Cochran formula. Accordingly, the
required sample size at 95% confidence level with degree of variability of 5% and level of
precision equal to 9% are recommended to obtain a sample size required which represent a
true population and 38 traders were selected purposively based on researchers’ judgment.
Sampling Procedure and Sample Size
In this study, multi-stage sampling technique was used. In the first stage both districts were
selected purposively based on their potentiality of Teff production among the districts available
in the zone. As report of Agricultural and Natural resource, office of Southwest Shewa zone in
2020 G.c indicates 100 and 75 percent of potentiality production of teff available in Becho and
woliso respectively. In second stage all Kebelesof the two Woredas (Woliso and Bacho) were
stratified into high and Low Teff producing kebeles then by using simple random sampling
techniques, eight high potential Teff producer Kebeles from both woredas were selected.
Finally, Teff producing sample households were selected from high Teff producing stratum
using systematic random sampling technique.
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Deksiso, H., & Gebru, G. (2023). Determinants of Teff (Eragrostis Tef) Market Outlet Choice in Woliso and Becho Districts of South West Shoa Zone
Oromia Regional State, Ethiopia. Discoveries in Agriculture and Food Sciences, 10(6). 40-47.
URL: http://dx.doi.org/10.14738/dafs.106.13903
Table 1.Distribution of sample households across districts and sample kebeles.
District Kebeles Number of
households
Proportion Sample
households
Becho
Awash Bune 1615 0.22 28
Jato 965 0.12 17
SimbiroCiracha 958 0.12 17
Boji 600 0.08 11
Weliso
Gurura Baka 1250 0.16 22
Doyo Kora 780 0.10 14
Senkale Ale Mariyam 650 0.08 12
Ale Koya 968 0.12 17
Total 7786 1 138
Source: Agriculture Bureau of Becho and Weliso (Own computation).
The required sample size was determined by Cochran’s (1977) proportionate to size sampling
methodology. The aim of the calculation is to determine an adequate sample size which can
estimate results for the whole population with a good precision.
n =
z
2pq
e
2
Where; n = Sample size; Z= confidence level (α = 0.05); p = proportion of the population
containing the major interest (assumed to be 90%=0.9), q = 1-p (0.1) and e = allowable error
or margin of error which is 0.05 and Hence, Z = 1.96;
n =
(1.96)
2
(0.9 ∗ 0.1)
(0.05)
2 = 138
Data Analysis Technique
Determinants of Market Outlet Choices
To identify determinants of Teff market outlet choices, Multivariate probit model was used. The
multivariate probit model is a generalization of the probit model used to estimate several
correlated binary outcomes jointly. The decisions of choosing wholesalers, Retailers and other
agents (cooperative and union) are correlated (all decisions are binary), then the multivariate
probit model would be appropriate for jointly predicting these three choices on an individual- specific basis.
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Discoveries in Agriculture and Food Sciences (DAFS) Vol 10, Issue 6, December- 2022
Services for Science and Education – United Kingdom
Table 2. Summary of Variables used in the MVP model
Variables Type Measurement
District Dummy 1 if woliso and 2 if Becho
Age Continuous number of age of households
Total family size Continuous number of family in adult equivalent
Education level Continuous number of education level
Farm size Continuous Total land owned by a farmer.
farming experience Continuous number of years’ experience in farming
Off farm Dummy 1 if a farmer has off farm activity and 0 otherwise
Livestock(TLU) TLU number of livestock owned(TLU)
Access to Mkt information Dummy 1 if a farmer has access to information and 0 otherwise
Extension service Continuous number of visit of the extension agent
Access to credit Dummy 1 if a farmer has access to credit and 0 otherwise
Quantity produced Continuous Number of quantity produced
RESULT AND DISCUSSION
Households Characteristics
The variables used to describe demographic characteristics of sample farmers were
educational level, sex, marital status, age and family size. The results presented in table 3 below
indicates that 89.86% of the respondents were male household heads. While the remaining
10.14% were female household heads. The results also reveal that 94.93% of them were
married and 5.07% widowed.
Table 3 Demographic and socioeconomic characteristics of respondents
Variables Frequency Percent
N=138 N=138
Sex Male 124 89.86
Female 14 10.14
education Level illiterate 21 15.22
Read and Write 25 18.12
1-6 ( attended schools) 36 26.09
7-8 (attended schools) 29 21.01
9-12 (attended schools) 27 19.57
Marital Status Married 131 94.93
Widowed 7 5.07
Age Mean 43.94
Family Size Mean 2.60
Source: Own computation, 2020
Determinants of Market Outlet Choices
In the multivariate probit model outputs, the samples were drawn 100 times as (table 4)
reported. The matrix rho21, rho31, rho32 represented the correlation coefficient matrix
between Retailers and wholesalers, other agents and wholesalers, other agents and Retailors,
respectively.