Factors Determining Potato Market Outlet Choices of Members’ of Primary Agricultural Cooperative Societies: The Case of Jeldu Woreda, West Shoa Zone, Oromia Regional State, Ethiopia

Abstract

Potato (Solanum tuberosum L.) popularly known as ‘The king of vegetables’, which is the fourth most important food crop next to maize, wheat and rice worldwide. The choice of market outlet for smallholder potato producers is very important, since potato is perishable product and more demanded by the society. The present study examines the major “Factors determining potato market outlet choices of members’: of primary agricultural cooperative societies: The study employed survey methods as a research approach. A random sample of 159 members of cooperatives societies has been selected for interview. Both descriptive and econometric methods have been employed for data analysis. Results from descriptive statistics shows that 69.8% of the total members have chosen non-cooperative firms as their potential market outlet for their potato produces, while 30.2% of them have chosen cooperatives as their outlets since the majority of the members have witnessed that non-cooperative firms have provided relatively fair price to their potato produce. The logistic regression model with p-value of 0.001 has witnessed that there is statistically significant difference between cooperatives and non-cooperative firms in market outlet choice. Moreover, results from logistic regression model reveals that extension service offered by the cooperatives, transportation facility, distance from markets , distance from cooperatives, access to credit and belief on cooperatives have p-value of less than 5% and hence are found to be the most determining factors of members market outlet choice in the study area. The study shows that cooperatives failed to be chosen as premier and potential market outlet by members in the study area. Therefore, the researcher suggested that institutional capacity of cooperatives should be strengthened in order to face unfair competition, influence other firms to behave competitively in the market place, to win trust of members and thereby bring about real participation in potato market and ensure sustainable growth.