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Article
Optimal Farmer Choice of Marketing Channels in the Ethiopian Banana Market
Journal of Agricultural & Food Industrial Organization (2010)
  • Getachew Abebe Woldie
Abstract
In this paper, we propose an optimal marketing decision model in the context of poor agrarian economies. We consider a risk averse banana producer who faces an optimal allocation decision on how much to sell to a cooperative vis-à-vis private traders. To validate the model, a numerical exercise was undertaken using farm-gate transaction data. The overall result suggests that under different risk scenarios, an optimal earning is obtained if a farmer allocates 70 to 85 percent of his produce to a cooperative and the rest in the private market. Any allocation more than 85 percent or less than 70 percent is likely to result in a sub-optimal solution given the current market structure and price setting.
Keywords
  • cooperatives,
  • institutions,
  • smallholder producers,
  • risk,
  • banana,
  • Ethiopia
Publication Date
October 29, 2010
Citation Information
Getachew Abebe Woldie. "Optimal Farmer Choice of Marketing Channels in the Ethiopian Banana Market" Journal of Agricultural & Food Industrial Organization Vol. 8 Iss. 1 (2010)
Available at: http://works.bepress.com/getachew_woldie/1/