Abstract:
Spices are an important source of income, employment, and food for the majority of rural households in Southwest Ethiopia. In order to increase its contribution, enhancing spice producers’ linkage to the market has been a top priority. Thus, this study was aimed to examine the determinants of market outlet choices among smallholder spices producers in Kaffa, Bench-Sheko, Shaka, and the West Omo zone of Southwest Ethiopia. Both primary and secondary sources of data were used. Multistage sampling method was used to collect qualitative and quantitative data from 275 spice producers. Multivariate Probit (MVP) model was used to examine determinants influencing market outlet choices of smallholder spices producers. The MVP model result shown that the quantity of spices produced, transport facility, distance to nearest market, spices farming experience, level (year) of education, frequency of extension contact, cooperative membership, and bargaining power had statistically significant influence on market outlet choices. Therefore, the study suggests increasing productivity of spices, improving farmers' bargaining power through cooperative membership, dissemination of improved disease-resistant varieties, strengthening institutional service and infrastructural facilities like market access, road, and transport facilities to boost smallholder spices productivity and market linkage activities.
Keywords: Spices, Market Outlet, Southwest, Multivariate Probit Model.