Determinants of Output Marketing through Cooperatives in Southwest Oromia, Ethiopia

Abstract

Smallholder farmers encounter several challenges pertaining to marketing of their surplusproducts. Researches in agricultural economics showed that there are different types offactors that significantly determine marketing through cooperatives. Hence, this study aimsat identifying the determinants of sales through cooperatives by smallholder farmers insouth-western Oromia. The samples of the study were 400 small holder farmers who belongto membership of agricultural cooperatives. It is multi stage quota sampling procedureswhich was adopted to select sample respondents. Both structured and unstructured interviewwere conducted along with farmers and officials of selected primary cooperatives in the studyareas. The multiple regression analysis reveals that livestock unit, crop price of cooperatives,availability of another marketing agent and access to credit from MFIs significantlydetermine sales through cooperatives. Hence, it is highly important to raise the number andthe technical capacity of the cooperative officials through training programs in order to cope–up the dynamicity of the day. Furthermore, it is advisable to cooperatives to enhance theproductions of livestocks through technologies and creating branch marketplaces aroundmembers’ area relatively closer than other marketing agents would let them increase theirsales through cooperatives.