Determinants of Market Outlet Choices by Smallholder Tomato Producers in Mecha District Amhara National Regional State, Ethiopia

Abstract

Tomato plays a significant role in increasing food security and income for the poor farmers of Ethiopia in general and Mecha district in particular. Tomato is a perishable vegetable product; market channel choice is a must to distribute the product in its freshness. To determine the sampling techniques used in the study, multi-stage sampling technique was applied. A simple random sampling technique was employed, to select 125 tomato producers in the study area. A multivariate probit model was employed to identify the factor affecting tomato market channel choices. The result of the multivariate probit model indicates that farming experience, total land size, distance to local markets, education level, land allocated for tomato, farm-gate price, non-farm activities, and market information have a significant impact on market outlet choices. The study findings highlight important development and policy implications include the need to improve farmers experience with tomato production and marketing, encourage adult education, expand the accessibility of market infrastructure and strengthen supportive institutions for credit access.