RICE MARKET PERFORMANCE AND SUPPLY BY SMALLHOLDER FARMERS IN GURAFERDA DISTRICT, SOUTHWESTERN ETHIOPIA

Rice is among the most important cereals grown in different parts of Ethiopia as food crop. The country is characterized with immense potentials for growing the crop. This study was aimed at analyzing rice market performance and supply by smallholder farmers in Guraferda District, Southwestern Ethiopia. Primary and secondary data were used for the study. The data were collected from 120 rice producer farmers selected through three stage sampling technique and 35 traders selected purposively. Both descriptive statistics and econometric model were used for the analysis of the data. The market structure of rice was analyzed based on concentration ratio and degree of market transparency. The concentration ratio results indicated that Biftu market is unconcentrated, whereas Kuja market is weakly oligopolistic rice market type. The methods employed for analysis of performance were channel comparison and marketing margin. Nine market channels were identified. The producer’s share (GMMp) was found to be the highest in channel IX which accounted for 93.5% from the total consumer’s price and lowest in channel III which is 42.8% because of the involvement of the intermediaries in this channel. Retailers and wholesalers have got the highest gross marketing margin in channel II and III which accounted for 52.6% and 43.7% respectively. Multiple linear regression model results indicated that land under rice, family size, lagged price of rice and number of oxen significantly affects quantity of rice supplied to the market. Quantity supply of rice could be enhanced through adequate supply of improved varieties, controlling of disease and pests, important to make youth participate in to rice production and marketing activities, developing market information system and encouraged farmers to have their own oxen.