Determinants of market outlet choice by smallholder wheat producers in Arsi Zone of Oromia National Regional State, Ethiopia

AbstractWheat is one of the staple crops widely cultivated in Arsi Zone of Ethiopia. It is the source of food and provides income for the majority of smallholder farmers. To this end, to benefit smallholders from their produce identifying and selecting the appropriate market is crucial. However, choosing a suitable market channel is not an easy task because there are different factors that influence market outlet choices. Hence, this study scrutinized the determinants of market outlet choice of smallholder wheat producers in Arsi Zone, Oromia National Regional State, Ethiopia. It uses primary and secondary data collected through questionnaires and desk reviews from 336 randomly selected households. Data were analyzed using multinomial logistic regression, percentage, and cross-tabulations of frequency distribution. The result from the multinomial logistic regression specifies that among the ten explanatory variables included in the model seven of them were statistically significant at 1%, 5%, and 10%. Those factors significantly affecting wheat producers’ market outlet choices were sex, age, education, year of participation, nearby market, nearby road and quantity produced. Based on the results, the study recommended that the government and stakeholders should focus on strengthening education, expansion of road infrastructure, telecom, and access to credit which promote farmers profitable market outlet choices in one hand and increases the production and productivity of wheat in another way.