Fruit and Vegetables are important for food security and income generation for a large proportion of rural households. There were key challenges influencing onion production to reach markets and hindering farmers from actively engaging in the market. So, the objective of this study was to analyze the structure, conduct, performance, and determinants of the market channel share of onion. Both primary and secondary data were collected to address the objectives. A three-stage sampling procedure was used to select the sample kebeles and households, whereby 275 farm households were selected using a stratified random sampling method, and 36 traders were selected purposely for this study. Data were analyzed by using descriptive statistics, a non-parametric index (Gini coefficient and Lorenz curve), pricing strategy, and marketing margin. The results showed that traders were operating in an oligopolistic market with Gini coefficients of 0.66 and 0.63 for wholesalers and retailers respectively. The findings also showed that farmers were able to contract with wholesalers, rural collectors, retailers, and consumers with an estimated percentage share of 42.05, 28, 20.75, and 9.2 percent respectively. producers have the highest gross marketing margin in channels 2 and 3. High cost of production, weak barging power, high marketing cost, and unavailability of storage structures were pivot as the most pressing constraints to marketing actors. The government should support poor actors in the market to encourage to be a perfectly competitive, equitable distribution of income and a lucrative market.
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