Determinants of Market Supply of Vegetables:A Case of Akaki-kality Sub-city, Ethiopia

Abstract

Ethiopia has a variety of vegetable crops grown in different agro-ecological zones by small farmers, mainly as a source of income as well as for food. The production of vegetables varies from cultivating a few plants in the backyards for home consumption, to large-scale production for the domestic and home markets. To this end, the aim of this study was to empirically examine factors affecting marketable supply of potato and leafy vegetables in the study area. The analysis was made with the help of descriptive and econometric tools, both SPSS version 16 and stata11 software were employed. A total of 75 producer respondents drawn from Akaki-Kality sub-city were interviewed using structured questionnaires. Estimation of determinants of marketable supply with the help of logarithmic production function model revealed that out of 10 hypothesised explanatory variables for leafy vegetables, eight variables were found to determine marketable supply of leafy vegetables at farm level. Similar to leafy vegetables, 10 explanatory variables were hypothesised that were expected to affect marketable supply of potato. Only five variables were significant. In both cases except quantity produced, distance from the nearest market centre and sex of the respondent, all were not with expected signs as prior hypothesised. Capacity building for all actors in the value chain and strong extension service on product handling and marketing to producers should get focus.