MARKET CHAIN ANAYSIS OF RED PEPPER: THE CASE OF BURIE

DESTRICT, WEST GOJJAM ZONE, AMHARA REGIONAL STATE,

ETHIOPIA

SENIOR RESEARCH 2

BY:

GETANEH KASSAHUN

ID NO: AGR/1085/11

ADVISOR: DESALEGN W (MSC)

DEBRE MARKOS UNIVERSITY BURIE CUMPUS

DEPARTMENT OF AGRIBUSINESS AND

VALUE CHAIN MANAGEMENT

June , 2021
BUIRE ,ETHIOPIA

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MARKET CHAIN ANALYSIS OF RED PEPPER: THE CASE OF BURIE
DISTRICT, WEAST GOJJAM ZONE, ETHIOPIA

BY:

GETANEH KASSHUN

ID.NO. AGR /1085/11

ADVISOR: DESALEGN W (MSC)

A SEMINAR RESEARCH 2 SUBMITED TO DEPARTMENT OF

AGRIBUSINESS AND VALUE CHAIN MANAGEMENT

DEBREMARKOS UNIVERSITY BURIE CAMPUS

IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

DEGREE OF BACHELOR SCIENCE IN AGRIBUSINESS AND VALUE
CHAIN MANAGEMENT

APRIL,, 2021

BURIE, ETHIOPIA

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 ACKNOWLEDGMENT
First and above all, I would like to thank my God for directing me with his true spirit all the time
with success doing this work. Next I would like to extend my heartfelt thanks to my advisor
Mr.; Desalegn Wondim (MSc) for his technical and professional guidance in writing this paper.
and advice to finish this research work. And also I would thanks my families who support me
in different activities specially my mother and my father.

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LIST OF ABBREVATIONS AND ACRONYM

ADLI Agricultural Development Led Industrialization

ADF Augmented Decky Fuller

ANRS Amhara National Regional State
BLUE Best Linear Unbiased Estimator
BOA Bureau of Agriculture
BoFED Bureau of Finance and Economic Development
CSA Central Statistics Authority

DAP Di-ammonium phosphate

DPPC Disaster Prevention and Preparedness Commission
EIAR Ethiopian Institute of Agricultural Research
EEPA. Ethiopian Export Promotion Agency
ESF Ethiopian Spice Factory
FAO Food and Agricultural Organization

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Contents Page
ACKNOWLEDGMENT...............................................................................................................................................................................iii
LIST OF ABBREVIATIONS AND ACRONYM.....................................................................................................................iv
1. INTRODUCTION......................................................................................................................................................................................1
1.1 Background........................................................................................................1

1.2 Statements of the Problem................................................................................2

1. 3 . Research question..........................................................................................3

1.4. Objectives of the study.....................................................................................4

1.5 Significance of the Study...................................................................................4

1.6 Scope and Limitation........................................................................................4

2.1.2. Market Efficiency..........................................................................................7

2.1.3. Market conduct of red pepper......................................................................8

2.1.4. Market performance.....................................................................................8

2.1.5. Marketing Margin.........................................................................................9

2.1.6. Production trend of red pepper in Ethiopia................................................9

2.2. Empirical Review............................................................................................11

2.2.1. Empirical studies related to spices, and vegetable...........................................................................................11

2.2.2. Empirical Literature on Marketable Supply............................................12

2.2.3 Red pepper market participant and their roles.......................................14

2.2 .4. .Challenges and opportunities of red pepper production and marketing
.................................................................................................................................14

2.2.5. Production constraints................................................................................14

2.2.6. Production opportunity...............................................................................15

2.2.7. Marketing constraints..............................................................................15

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2.2.8. Marketing opportunity...............................................................................15
3. RESEARCH METHODOLOGY..................................................................................................................................................16
3.1 Description of the Study area.........................................................................16

3.3 Sampling procedure........................................................................................17

3.2. Sample size and sampling Techniques..........................................................17

3.3 Source and Methods of Data Collection........................................................18

3.3.1 Primary Sources of data.....................................................................................................................................................18

3.3.2 Secondary sources of data.................................................................................................................................................18

3.4. Data analysis..................................................................................................18

4.1 Socio- Demographic Characteristics of Respondents..................................19

4.2 Red Pepper Production...................................................................................21

4.2.1 Input utilization........................................................................................................................................................................21

4.3 Actors and Their Functions in Red Pepper Market Chain Pattern...........22

4.4., conduct, and performance of red pepper....................................................25

4.4.2 Red pepper market conduct................................................................................................................................................25

4.4.3 Red pepper performance.......................................................................................................................................................27

5. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS.............................................................................28

5.1. Summary and Conclusion..............................................................................28

5.2. Recommendations...........................................................................................29
APPENDIX........................................................................................................................................................................................................34

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LIST OF TABLE

Table 1: Socio- Demographic Characteristics of Respondents Farmer.................19

Table 2: Socio demographic characteristic of sample respondent’s trader.......20
Table 3: price setting strategy of producer to the market the product.................26
Table 4: Trader source of pepper supply.................................................................................27
Table 5: percentage marketing margins for different marketing channel.........28

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 ABSTRACT

In Burie , West Gojjam zone , Amhara region red pepper is a major cash crop
which is mainly produced by smallholder farmers. The basic objective of this study
was to analyze profitability of red pepper production, determinant of household’s
marketable surplus and the degree of market integration in major regional
intermediate market using primary data collected from households through semi
structured questionnaire. However, market chain of agricultural crop in general
and red pepper in particular is not well understood. The research was conducted
on the market chain analysis of red paper the case of burie zuria woreda
especially in alefa and Zalima kebele. some problems faced in red pepper
production were, transportation, and market channnel distribution high yield of
red pepper. So, the research were conducted to solve the problems along the
farmer’s side and the study focused on the general objective of this study was to
analyze market chain of red pepper with a specific of identifying main actors and
their roles, to carry out the conduct and performance red pepper and to identify
the challenges and opportunities of red pepper production and marketing in the
study area.. The producers’ survey result revealed that all farmers supply the
product to the market and 88. % of red pepper produced by the sampled farmers in
the production year was supplied to the market. Farmers in the Woreda do not
have any standard measure to identify the quality of pepper. They usually identify
quality of red pepper by its color, pest damage, size, shape, odor and foreign
matter. Hence the structure of the pepper market in the study area was somewhat
competitive.

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Key words: red pepper, market conduct, performance &, challenges& opportunities

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1. INTRODUCTION

1.1 Background

Pepper is the world’s second important vegetable ranking after tomatoes and it is the most
produced type of spice flavoring and color to food while providing essential vitamins and
minerals. The nutritional value of hot pepper merits special attention. It is a rich source of
vitamin A and E. Both hot and sweet peppers contain more vitamin C to prevent flu colds than
any other vegetable crop . The color and flavor extracts from pepper are used in both the food
and feed industries, e.g., ginger beer, hot sauces and poultry feed. In some countries, the shoot
tips are cooked as herb or as vegetable . In addition to having major role in Ethiopians daily dish
it also plays an important role in the national economy. It is a crop of high value in both domestic
and export markets. Since it is a commercial and industrial crop, it generates employment to
urban and rural workers. The main processed product, oleoresin, is exported to different
countries and the spiced ground is supplied to local market. Oleoresin that is used for food
coloring is extracted from red pepper for export purpose. The deep red colored cultivars have a
very high processing demand in the country . Recognition of critical role of markets in economic
development led to sweeping market reforms across a number of developing countries. In spite
of these reforms, symptoms of poorly functioning markets in much of Sub Saharan Africa are
evident in the segmentation of markets, low investment in the market infrastructure, the
persistence of high margins and the limited progression towards more complex arrangements . In
developing country farmers are not getting the right share of consumer price because of
excessive margin mainly because of inefficient and costly transport. Besides transport problems,
majorities of agricultural products in Ethiopia are small holder produces, and are not producing
and selling their produce and agricultural inputs in an organized manner so that some of their
benefit may transfer to the middlemen. Despite the ecological advantage, horticultural
production in the country is very much limited. indicated that vegetable crops are produced in
the country through commercial and small farmers. However, the benefit producers receive is by
far lower. Besides, the per capita consumption of horticultural products is red pepper is an
important cash crop in the Amhara region. On average 68% of pepper production is for market in
ANRS (CSA, 2009).

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It is a crop of high value in both domestic and export markets. Since it is a commercial and
industrial crop, it generates employment to urban and rural workers. The main processed
product, oleoresin, is exported to different countries and the spiced ground is supplied to local
market. Oleoresin that is used for food coloring is extracted from red pepper for export purpose.
In 2008/2009 production year the total cultivated land and production in the region was 41,069
hectares and 530,466 quintals respectively (CSA, 2009). The total amount of crop produced in
2008/2009 production year was 1,769,219 quintals in the study Woreda of which vegetables and
red pepper accounts for 364,953 and 21,600 quintals respectively RDOA (2009). babbly the
lowest in Africa.
1.2 Statements of the Problem

Recognition of critical role of markets in economic development led to sweeping market reforms
across a number of developing countries. In spite of these reforms, symptoms of poorly
functioning markets in much of Sub-Saharan Africa are evident in the segmentation of markets,
low investment in the market infrastructure, the persistence of high margins and the limited
progression towards more complex arrangements (Eleni, 2001). In developing country farmers
are not getting the right share of consumer price because of excessive margin mainly because of
inefficient and costly transport Colman (1995). Besides transport problems, majorities of
agricultural products in Amhara region are small holders, and are not producing and selling their
produce and agricultural inputs in an organized manner so that some of their benefit may transfer
to the middlemen. Despite the ecological advantage, horticultural production in the country is
very much limited. According to Dawit and Hailemariam (2004), vegetable crops are produced
in the country through commercial and small farmers. However, the per capita consumption of
horticultural products is probably the lowest in Africa. According to Wolday (1994), in Ethiopia
the performance of agricultural marketing system is constrained by many factors such as: poor
quality of agricultural produce, lack of market facilities, weak extension services which ignored
marketing development, poor linkage of research , absence of marketing information and
intelligent services, excessive price and supply fluctuations, limited access to credit, inefficient
handling including, storage, packaging and transportation problems. One of the reasons for this
according to Wolday and Eleni (2003) is lack of proper transport facilities and other
infrastructure services.

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The Ethiopian agricultural output markets are characterized by inadequate transport network,
limited number of traders, inadequate capital facilities, high handling costs, inadequate market
information system, weak bargaining power of farmers and underdeveloped industrial sectors
(Jema, 2008). Farmers in Ethiopia are more focused on the production part without having
adequate market information about their products.

. In the region storage facilities, transportation, linkages with traders, quality controlling
mechanisms, market information and price settings are weak and need to be further investigated
(BOA,2004). Hence, to benefit producers and other marketing agents involved in the production
and marketing of red pepper there is a need to have a well-developed infrastructure to keep the
product until it reaches the final consumer. According to IPMS (2007) farmers in the lowland
area of the Woreda devote on the average about 0.5 to 1 hectare of land for pepper production
annually. But, producers face so many interlinked problems such as poor market information and
infrastructural problems (storage, transport and processing). Therefore to solve production and
marketing problems and increase the contribution of red pepper to generate additional income for
producers and traders it will important to undertake this study.

1. 3 . Research question
1. Who are the major red pepper actors and their role?

2. What are the major marketing channel in the study area?

3. What are the main challenges and opportunities of red pepper production
and marketing?

1.4. Objectives of the study

The general objective of this study will be to analysis red pepper market chain in
Burie district with the following specific objectives:

 To identify the main red pepper actors and their roles in the study area.
 To identify the major marketing channel in the study area

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  To identify the main challenges and opportunities of production and
marketing of red pepper in the study area.

1.5 Significance of the Study

The study was geographical specified only in Burie Woreda and provide information on market
chain analysis of red pepper. The study was focused on the objectives and include some
conceptual reviews related with market .Due to shortage of finance and time constraints the
study didn’t incorporate all marketing in the Western part of the region and other woreda and
kebeles in west part of Gojjam.Analyzing the challenges in pepper marketing would indicate the
gaps to improve pepper production and marketing.. The study also suggested integration among
production and marketing by referring to root causes for supply and marketing problems starting
from production till the consumption of the product. The other benefit that could be anticipated is
that its significance as a source material for further studie.

1.6 Scope and Limitation

The study has focus on the overall market chain analysis of red pepper in Bure Woreda and
major regional intermediate markets. The study concentrates on the lowland areas of Burie with
some inclusion of the mid altitude kebeles where pepper is produce. The major market
participants (producers, intermediaries and consumers) supporting institutions were assessed
thoroughly in relation to the different marketing mix in the production and marketing of red
pepper (marketing channels, market direction, price formulation and, buying and selling
strategies, storage, transport, information and finance).

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 2. REVIEW OF LITERATURE
2.1 Concepts and Definitions

Market: : Originally the term market stood for the place where buyers and sellers are gathered
to exchange their goods, such as village square.The term market sand for the place where buyers
and sellers are gathered to exchange their goods. Market is an area in which one or more sellers
of a given products/services and their close substitutes exchange with and compete for the
patronage of a group of buyers. The term market mean the place where buying and selling takes
place, an area in which a good is sold, a group of people carrying on buying or selling, or the
commodity traded (Larson,1957). According to Kilingo and Kariuki (2001) market is defined as
an institution within which the forces of demand and supply operate; sellers, and consumers are
in constant communication, and there is change of title to goods and/or services. Potential
consumers make up a market, which is people with the desire and with the ability to buy a
specific product (Eric and Kerin, 2000).

Kotler (1998) also defined market as a place that consists of all potential customers sharing a
particular need or want who might be willing and able to engage in exchange to satisfy that
need/want.

Marketing: Marketing is the process of bringing sellers and buyers together for the purpose of
exchanging goods and services (Kilingo and Kariuki, 2001). According to Kotler (2003)
marketing is defined as a social and a managerial process where by individuals and groups obtain
what they need and want through creating and exchanging products and value with other
Marketing has basic productive value, in that it adds time, form, place and possession utilities to
products and commodities. Through the technical functions of storage, processing and
transportation, and through exchange, marketing increases consumer satisfaction from any given
quantity of output (Mendoza, 1995). The American Marketing Association representing
marketing professionals in the US and Canada states that marketing is the process of planning
and executing the conception, pricing, promotion, and distribution of ideas, goods, and services
to create exchanges that satisfy individual and organizational objectives (Eric and Kerin, 2000).

Marketing system: Is defined as the sequential set of kinds or types of business firms through
which a product passes during the marketing process (Branson and Norvell, 1983). Also they

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define marketing system as the totality of product channels, market participants and business
activities involved in the physical and economic transfer of goods and services from producers to
consumers. It is usually seen as a “system” because it comprises several, usually stable,
interrelated structures that, along with production, distribution, and consumption, underpin the
economic process (Mendoza, 1995).

Agricultural marketing: Consumers spend a large amount of income on basic foods hence
with the growth of urbanization the agricultural marketing system is expected to play a great role
in linking the rural and the urban population. Agricultural marketing covers all the activities
associated with the agricultural production and food, feed, and fiber assembly, processing, and
distribution to final consumers, including analysis of consumers’ needs, motivations, and
purchasing and consumption behavior (Branson and Norvell, 1983).

Marketing channels: Formally, a marketing channel is a business structure of interdependent

organizations that reach from the point of product origin to the consumer with the purpose of
moving products to their final consumption destination (Kotler and Armstrong, 2003)

The channel system creates time, place, possession and form utilities. However the benefits of
the channel system cannot be enjoyed without an element of cost.

Supply and marketable surplus: According to Wolday (1994), market supply refers to the
amount actually taken to the markets irrespective of the need for home consumption and other
requirements whereas the market surplus is the residual with the producer after meeting the
requirement for seed, payment in kind and consumption by peasant at source.

Agricultural products differ from manufactured goods in terms of supply and demand. Supply is
peculiar because of the seasonal biological nature while demand is relatively stable throughout
the year. Empirical studies of supply relationships for farm products indicate that changes in
product prices typically (but not always) explain a relatively small proportion of the total
variation in output that has occurred over a period of years. The weather and pest influence short
run changes in output, while the long run changes in supply are attributable to factors like
improvement in technology, which results in higher yields Market chain and supply chain:
Agricultural commodities are produced by large numbers of farmers and consumed by large
numbers of households. With the exception of food stuffs consumed on-farm or sold locally, they

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are bought and sold a number of times between the farm gate and the final consumer. While
moving between these two points, the commodity is transported, stored, cleaned, graded and
processed. Market chain is the path one good follow from their source of original production to
ultimate destination for final use. According to Kotler (2003) supply chain is a longer channel
stretching from raw materials to final products that are carried to final buyers. He shortly put as
value-delivery network.. It is the overall group of economic agents (producer, trader, consumer,
institutions or development organizations) that contribute directly in the determination of the
final product (FAO, 2005). Supply chain is a sequence of

Supply chain: is a sequence of firms that perform activities required to create and deliver a good
or service to consumers or industrial users. It differs from a marketing channel in terms of
membership.

Market chain analysis: According to FAO (2005) market chain refers to a process of following
a product from production to consumer by looking all the point of the chain .

Marketable surplus: Is the quantity of the product left out after meeting the farmers,
consumption and utilization requirement for kid payments other obligations such as gift,
donation, charity etc.

Marketed surplus: Show the quantity actually sold after accounting for losses and retention
by the farmers.

2.1.2. Market Efficiency

It refers to the efficient allocation of resources to achieve the greatest possible consumer
satisfaction (Raymon, 2013). “A market in which prices always ‘fully reflect’ available
information is called ‘efficient’,” (Fama, 2010). Efficient market is one when the market price is
an unbiased estimate of the true value of the investment. It does not require that the market price
be equal to true value at every point in time.. Definitions of market efficiency are also linked up
with assumptions about what information is available to investors and reflected in the price,
(Aswath, 2012).However, two aspects of market efficiency is mostly mentioned in agricultural
marketing these are: operational efficiency and pricing efficiency (Jesse, 2005). Existence of
market efficiency is as a result of nonpublic information and abnormal profits.

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Operational efficiency: It is defined as the provision of goods and services at least cost and at a
level of output, or combination of inputs, which ensures that, the value of marginal product
equals marginal factor costs.

Pricing efficiency: It is concerned with accuracy, precision, and speeds with which prices reflect
consumers’ demands and are passed back through the market channels to producers. Pricing
efficiency is, thus, affected by rigidity of marketing costs and the nature and degree of
competition in the industry (Cramer and Jensen, 2006).

2.1.3. Market conduct of red pepper

Market conduct refers to the pattern of behavior that enterprise followed in adopting to the
market in which they sell or buy(Raid,1987) . The term red pepper market conduct refers to is
behaviors of the markets in pricing for the products and all the strategies and polices related to
marketing function of red pepper. Red pepper marketing conduct in Burie Woreda refers to
all aspects of determining the price preference of consumers ,traders ,and also includes their
behavioral pattern of production .It include the following function.

 Market sharing and price setting police.

 Polices aimed at coercing rival.
 Polices toward setting the quality of product .(Crawford,1987) Agricultural and food
marketing .

2.1.4. Market performance

Market performance of red pepper refers to that the ability and performance or efficiency of the
firms getting economic return from their investment cost. According to Scott (1995) market
performance the result of action of trader and the operating environment determined by the
infrastructure availability a for trading .

2.1.5. Marketing Margin

It is defined as the difference between the price the consumer pays and the price that is obtained
by producers, or as the price of a collection of marketing services, which is the outcome of the
demand for and supply of such services. Marketing margin may be defined in two ways: (1) as
the differences between consumer retail price and what farmers receive; (2) as the price of
marketing services provided (Aye Lech, 2011). It can be calculated as

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TGMM = End buyer price –first seller price *100%

End buyer price

Where, TGMM=Total gross marketing margin

2.1.6. Production trend of red pepper in Ethiopia

Pepper is an annual crop which grows at altitude ranging from 1400 up to 2100 meter above sea
level (m.a.s.l.). Depending on the area, harvesting starts 5 to 6 months from transplanting.
Planting is carried out in the beginning of the main rain season. The red pepper is harvested
when it is fully red and starts to dry. After harvesting, pepper is dried. Shade drying is
recommended for high quality oleoresin. Red pepper and chill are the leading vegetable and
spices grown in the country. The central Eastern and Southern Shoa, Western, North western
Wollega, Gojjam and the Southern part of the country are the potential pepper producing area.

The total production of pepper in the country for the year 2008/09 Ethiopian main cropping
season was estimated to be 1,834,026 quintals. In addition in Amhara region the total production
was 530.466 quintal for the same year. Therefore the contribution of the Amhara region for the
country production was 29%. The production of pepper in the region is dominantly by
smallholder farmers using rain by traditional farming practice. Very small amount of pepper is
being produced using irrigation and modern inputs such as fertilizer and improved seeds. Pepper
is sold in all markets in the region in its whole form and in some towns it is sold grounded
manually by petty traders in small groceries (Mulugeta, 2004). Virtually every country in the
world produces pepper and it is highly demanded for domestic consumption in rural and urban
areas. Accordingly, pepper alone accounts for 20 percent in the world spices trade (EEPA, 2007).

Pepper is the world second important vegetable ranking after tomatoes and it is the most
produced type of spice flavoring and color to food while providing essential vitamins and
minerals. Peppers are common all over the world as dried, pickled or otherwise processed
products. Pepper in Ethiopia is used for flavoring food and for production of oleoresin that used
to color foods in the factories.. In Ethiopia there are a number of spices that are mainly used in
every kitchen for flavoring food. More than 14 types of spices are grown in Ethiopia namely
pepper, paprika, turmeric, fenugreek, garlic, korarima, coriander, capsicum, ginger, cardamom,

xviii
blackcumin, whitecumn, and basil (Endosa, 1998). Among these spices ginger, fenugreek, red
pepper, black cumin, and white cumin are found in the region. There are various kinds of pepper
such as red pepper, black pepper, green pepper, white pepper, and chilly pepper. In Amhara
region red pepper is mainly produced in15 Woredas of seven administrative zones BoA (2004).
The major producing Woredas in Amhara region are Fogera, Dera and Libokemkem , Jabitehnan
and Burie, Alefa and Denbya , and Kobo.

2.2. Empirical Review

2.2.1. Empirical studies related to spices, and vegetable
The increasing populations of many tropical countries have led to a new awareness of the
importance of vegetable crops as source of food, accompanied by the realization that many
vegetables can supply essential nutritional materials which may not be readily available from
other sources (Tindall, 1983). In his study entitled vegetables in the tropics on selected
vegetables including various pepper species traditional and labor intensive practices are still of
primary importance elsewhere in the tropics, where new and desirable technological
developments can only be adopted if other resources become available. A case study in the
highlands of Central Kenya revealed that the higher awareness of issues related to marketing of
horticultural produce in Kenya is probably due to the existence of farmers groups. Farmers are
aware of the existence of markets in major towns such as Nairobi and Mombassa. They are also
aware of the major marketing companies who buy their produce for export (Muturi, 2001). The
study identified inadequate irrigation, low rainfall, high input price and pests and disease as the
major production problems. The marketing problems were low produce price, lack of market and
transport constraints. The Ethiopian Institute of Agricultural Research (EIAR) has released five
pepper varieties namely Marakofana, Bakolocale, Melkazala, Melkadema and Eshete. Among
these species Marakofana and Bakolocale are widely used by farmers. Marakofana is about 19
cm height, it has a thick cover and irritating nature. This variety is highly demanded by spice
factories like Ethiopian Spice Factory. Bakolocale variety has also red color and thin cover it is
highly irritating and it has a total height of about 13 cm. In the ANRS a team of experts had been
organized to study the Agricultural Commodity Marketing System of selected crops in 2004.
Among the crops selected for the study, red pepper marketing system study was one of them.
The study was conducted in 9 potential peppers producing Woredas among these; Burie was one

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of the target Woredas. The study results revealed that farmers produce pepper using local seeds
with fertilizer, few farmers use compost with local seed. The research extension linkage is weak
and despite the efforts made both at the Federal and Regional levels to promote the production
and marketing of red pepper. As a result agro ecology based research centers are opened.
Generally, the research extension system is supposed to be reoriented till it is able to play a role
towards creating market oriented agricultural production. Accordingly ten commodity zones
were identified for about 18 commodities which have high commercial value in the international
and domestic market including red pepper.

The Ethiopian Export Promotion Agency (EEPA, 2007) also carried out a spice potential
market study in Amhara, Oromia and SNNPRS, and identified that the land coverage for pepper
in the three regions. According to the study results pepper production accounts for p34% of the
total spices production in the three regions.

2.2.2. Empirical Literature on Marketable Supply

A number of studies pointed out factors that centrally affect marketable supply of agricultural
commodities. For example, Wolday (1994) identified major factors that affect teff, maize and
wheat at Alaba Siraro District. He studied the relationship of farm level marketable supply of the
cereals using cross-sectional data. To capture the influence of the independent variables on the
marketable supply of food grain, he adopted multiple regression analysis with both dummy and
continuous variables as independent variables. He found out that the size of output, access to
market and family size had affected marketable supply of food grain. In related studies, Rehima
(2007) identified that the major factors that affect marketable supply of pepper at Alaba and
Siltie of SNNPRS using cross-sectional data with both dummy and continuous independent
variables. To identify the variables, Rehima (2007) study revealed that market distance, quantity
of pepper produced, frequency of contacts with extension agents and access to market
information influenced marketable supply of red pepper.

Kindie (2007) identified major factors that affect marketable supply of sesame in Metema
woreda using cross-sectional data. His study revealed that the amount of productivity of sesame,

xx
number of oxen owned, number of languages spoken by the head of the household, modern
inputs used, sesame area, and time of selling of sesame influenced marketable supply positively.
Similarly, Wolelaw (2005) identified the major factors that affect the supply of rice at Fogera
Woreda using multiple linear regressions as a model to study the relationship between the
determining factors of supply and the marketable supply of rice. His study revealed that the
current price, lagged price, total amount of rice production in the farm, consumption in the
household and weather had affected marketable supply of rice. Hence, difference in the
marketing system of these commodities, type of commodities, and location of the study area can
result in differences in factors affecting marketable supply of the commodities.

Marketing channel: It is a business structure of independent organization that reach the point of
product origin to the consumer with the purpose of moving product to their final consumption
destination (Kotler and Arm strong, 2003).It has seven alternative channels as shown the figure
bellow.

Figure 1. Red pepper market channels for different market participants

Source: Survey result, 2009

2.2.3 Red pepper market participant and their roles

The main actors involved in red pepper marketing are producers, wholesaler, retailers, brokers,
rural assemblers, and consumers.

Producers: Are the first link in the marketing chain and have a linkage with input suppler like
cooperativeoffice of agriculture and traders.

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Wholesalers; An intermediary who sells to other intermediaries, usually to retailers; usually
applies to consumer markets ( Andargachew, 1990;Backman and Davidson, 1962).they are buy
the product in large amount from producer. Are mainly involved in buying of red pepper from
local collectors producers in large volume than any other actors and supplying them to retailer
consumers.

Retailer An intermediary who sells to consumers (Aswath, 2012).: Thus are the final links in the
marketing chain who delivers red peppers to user.

Middleman is any intermediary between manufacturer and end-user markets ( Andargachew,

1990; Backman and Davidson, 1962;).

Agent or Broker is any intermediary with legal authority to act on behalf of the manufacturer (
; Andargachew, 1990 ; Backman and Davidson, 1962)

Consumer: are those actors who purchase the products for consumption purpose.

2.2 .4. .Challenges and opportunities of red pepper production and

marketing
2.2.5. Production constraints
 Presence of wild animal: In the study area there are wild animal which affect the quality
and quantity of redpper.
 Inadequate capital :
 Lack of capital to invest assets, equipment and input s that would improve quality like
modern storage.
 Price fluctuation of red pepper :
 The price of red pepper is not constant throughout the year.
 Lack of good infrastructure for final product to move the market and the home.

2.2.6. Production opportunity

 Suitable agronomist climate for production of red pepper production and good soil .
 Good demand of the people: there is more customers for the product and it is not
perishable .

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  Source of cash income : it used as source of immediate income and the producers
can easily improve their live hood.
 Payments received at the delivery: there is an immediate exchange of birr and pepper
between buyers and seller in the study area .

2.2.7. Marketing constraints

 In adequate capital for trader to exchange the product.
 Quality difference of the product and price fluctuation
 . Facilities like adequate space,
 Covered/protected space in the selling places, weighing facilities, drinking water,
sanitation, communication facilities
 Lacking almost in all the rural auction centers.
 Markets are lacking of any permanent structures
 Production and supply of agricultural output is generally insufficient

2.2.8. Marketing opportunity

 More customers (demand of the people
 Payments received in cash.
 High supply of product to the market b producers .

3. RESEARCH METHODOLOGY
3.1 Description of the Study area
This study was conducted in Amhara regional state in west Gojjam zone Burie woreda. Burie is
one of the 18 Woredas in West Gojjam administrative Zone. It far from 411 km North of Addis
Ababa and 148 km from Amhara Regional State , Bahir Dar. It is nearby and connected by all-

xxiii
weather road to East Wollega Zone of the Oromia Regional State and Metekel Zone of the
BenishangulGumuz Regional State.

According to CSA of Ethiopia 2007 the total population of the woreda were 116076 among this
57506 were male and 56570 were female. The mean annual rain fall of the woreda is 1000-1500
mm and the altitude of the Woreda is 713 to 2604 (m.a.sl)) which allows for a variety of crops to
be cultiva

The topography of the Woreda is 76% plain, 10% mountain, 7% undulating and 7% valley. The
climatic condition is 1% highland, 77.23% mid altitude and 21.77% lowland. The total area of
the Woreda is 72,739 ha and 46.6% of the Woreda is cultivated. The average household
cultivated land holding is about 1.6 ha. Among the 138 Woredas found in the region, Bure is one
of the consistently surplus producing Woredas including production of red pepper.The
diversified agro-ecology of the area creates an opportunity for the production of different crops
such as cereals, pulses, oil crops, vegetables, spices and perennial crops. From the total area of
the Woreda, 33,865 hectare of land was used for annual crop production in 2008/2009
production year; from the total arable land 1,800 hectare cultivated land was allocated for pepper
production (BoA, 2009). From the total land allocated for red pepper production 21,600 quintal
red pepper has been produced in the production year.Burie is one of the consistently surplus
producing Woredas including production of red pepper.

3.3 Sampling procedure

Simple random sampling method were used to select the respondents because the populations
found in that kebeles were homogeneous the producer have the same characteristic and has
equal chance to select the respondent for collecting primary data on red pepper market chain
analysis in the given area. In the first Burie zuria wereda had been selected based on their

xxiv
produced potential. This is by considering or understanding of the availability red pepper market
chain in this woreda .

After selecting Burie zuria, then only Alefa & zalima Kebele were selected among the other
Kebeles. The total sample respondents used for this study had used 88 respondents randomly
selected from the two Kebeles

3.2. Sample size and sampling Techniques

For this study, in order to select a representative sample respondent a two-stage sampling
technique was implemented. In the first stage, with the consultation of wereda agricultural
experts and development agents, most of the kebeles having potential for red pepper production,
is purposively selected based on the high production of the kebeles. In the second stage, using
the list of red pepper producing households in the sampled kebeles, 88 sample respondents are
selected randomly. According to the (Yamane formula) the sample size had been determined at
90% confidence interval from 770 population size house hold using the following formulas.

n=770/1+770(0.1)2
n=88
The total sample size was 88.

Where: n = statistically acceptable sample size

N = Total size of target population
e = level of precision (error level) at 90% confidence level (0.1).

Where n is the sample size, N is the population size, and e is the level of precision.
For this study, data was also collected from respondent’s others like; farmers, wholesalers and
exporters, retailers and consumers.

3.3 Source and Methods of Data Collection

In order to collect reliable data about the market chain analysis of red pepper both primary and
secondary source of data was used.

3.3.1 Primary Sources of data

The primary data was collected the data through interview, observation, questionnaire. The
researcher prepares question in the form of un structured (open ended question) and distributed

xxv
to the respondents to obtain data about the market chain analysis of red pepper in Burie zuria
kebele. And also the researcher was used direct observation and face to face interview with the
respondent to obtain data.

3.3.2 Secondary sources of data

Secondary sources of data also were used to gathered data from different published and
unpublished documents, books, electronic sources, magazines, written documents and reports of
agricultural offices about the red pepper market chain analysis. The gathered data from different
sources was organized in order to make discussion easy.
3.4. Data analysis
data analysis method was descriptive statistics that includes percentage, ratios, mean, variances,
and standard deviation in the process of examining and describing marketing function, farm
household characteristic, resource ownership, role of intermediaries, market and trader’s
characteristic of pepper production.

4. RESULT AND DISCUSSION

The result and discussion part of this research deals with the findings from descriptive statistics
in red pepper production and marketing mainly socio-demographic characteristics of farmers and
traders, Conduct and Performance of red pepper marketing for each marketing channels to the
market in Burie Woreda.

4.1 Socio-Demographic Characteristics of Respondents

It begins by discussing findings on demographic characteristics such as sex, education level and
age distribution and religion of chain actors.

4.1.1 Socio-Demographic Characteristics of Respondents Farmer

Table 1: Socio-Demographic Characteristics of Respondents Farmer

Description Number of HH(N=88) Percentage

Sex Male 64 72.73%

Female 24 27.27%

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 Education Illiterate 47 53.4
level Grade 1-4 33 37.5%

Grade 5-10 8 9.1%

>grade 10 0 0%

Religious Orthodox 80 90.9%

Muslim 8 9.1%

Marital status Single 11 12.5%

married 61 69.32%

Divorced 9 10.23%

Table 1 shows that, 72.73% and 27.27% of the Sample respondents were male headed and
female headed households respectively. This indicated that, there were very limited number of
female households’ participation in the red pepper market chain during the survey period. This
might be due to the fact that even though parts of the marketing activities were performed by
women these are reported as the work of men (head of the household). Of the total respondents
interviewed, 69.32% are married while 12.5%, 10.23% and 2.95% are single, Divorced and
widows, respectively. This indicates that married households are in a better position to possess,
to produce and to carry red pepper market in the study area; the most positive justification could
be due to the fact that married households could have labor availability in division of labor.
Based on the results of this study, people regardless of their marital undertake red pepper
marketing activities in the district. With regard to religion, all of the household respondents
90.9%, and 9.1% are Orthodox, and Muslim respectively. This indicates that Orthodox and
Muslim religion is the most dominate religion in the study district.

According table 1 indicated, among the sample respondents 53.4% had not received any
Education (illiterate), while 37.5%, 9.1%, and 0% were grade1-4, grade5-8 and > grade 10 and
above respectively. This indicates that, the majority of the respondents are literate which implies
they have awareness in red pepper marketing activities as well as they can be able to follow
honey market information.

4.1.2 Socio demographic characteristic of sample respondent’s trader.

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Table 2: Socio demographic characteristic of sample respondent’s trader.

Description Number of Percentage

HH(N=20)

Sex Male 12 60%

Female 8 40%

Education level Illiterate 2 10%

Literate

Grade 1-4 8 40%

Grade 5-10 7 35%

>grade 10 3 15%

Religious Orthodox 13 65%

Muslim 5 25%

Protestant 2 10%

Marital status Married 16 80%

Single 3 15%

Divorced 1 5%

Widowed - 0%

Age 15-30 11 55%

31-45 7 35%

>45 2 10%

The survey result indicates that the sampled. Religious of traders were 65% Orthodox Christians
while the remaining were Muslims. Table 2 summarizes the demographic characteristics of
traders. Marital status of the traders was 80% married and 20% single so when the family
married it supports each other and were child born. According to the Burie woreda trade and
industry data the educational level of sample trader learnt grade 1-4 about 40%, and the other
remain sample traders are illiterate, 5-10, greater than ten are 10%, 35%, 15% respectively.

xxviii
 4.2 Red Pepper Production
4.2.1 Input utilization
Farmers in Bure Woreda use modern agricultural inputs such as fertilizer (DAP and urea) and
Improved seed. From the total respondents 86.67% and 73.33% use DAP and urea fertilizer
respectively. In addition to this 46.67% of farmers use natural fertilizer or compost to
supplement the use of fertilizer. However, farmers on the average use 45 kg of DAP and 34 kg of
urea per hectare which is below the recommended rate (100 kg DAP and 100 kg urea) per
hectare. The use of chemicals such as pesticides and herbicides 33.33% percent of the
respondents use Production year. The farmer used improved seed is 40% of the total respondent
and most of the respond farmer do not use improved varieties.
The basic reasons why farmers do not use improved varieties where due to timely unavailability
(50%), lack of information (26.66%) and expensiveness of the input (30%). The basic reason not
to use chemicals was attributed to lack of information and expensiveness of the input (76.66%)
and unavailability of the input (36.67%) in the surrounding area. The major suppliers of inputs
were office of agriculture and Bure town traders for the supply of fertilizer, improved seed and
chemicals.

4.3 Actors and Their Functions in Red Pepper Market Chain Pattern
The analysis of the market chain of red pepper in the study area indicated the involvement of
diverse actors who are participated either directly or indirectly in the production to consumption
system of the red pepper. These include producers, local collectors, wholesalers, retailers,
processors and final consumers of the product. According to [10], the direct actors are those
involved in commercial activities in the chain (input suppliers, producers, traders, consumers).
Whereas the indirect actors are those that provide financial or non-financial support services for
the actors in the chain such as credit agencies, business service providers, NGOs, cooperatives,
researchers and extension agents.

A. Primary Actors (Direct Actors)

The primary actors in red pepper chain in red pepper Woreda identified as red pepper producer
(farmers), local collectors, wholesalers, retailers, processors and final consumers of the product.

xxix
Producers (Farmers): Red pepper farmers are the primary actors as well as the first stage actors
in the chain who perform most of the market chain functions right from farm inputs preparation
on their farms or procurement of the inputs from other sources to postharvest handling and
marketing. The major market chain functions that red pepper farmers perform include ploughing,
planting, fertilization, irrigating, weeding, pest/disease controlling, harvesting and post-harvest
handling. With respect to marketing, the red pepper producers had several options to sell their
product, selling directly or selling through broker to collector (rural collector) and regional
wholesalers. They transport red pepper to the nearest markets (village market) themselves, either
carrying by themselves or using donkeys either using pack animals, or animal driven carts, or
else medium-size Isuzu trucks. Alternatively, they sell to village collector known as “farmer
traders” who assemble red pepper from large number of farmers. Farmers also sell their products
directly to regional wholesalers in regional markets. Some of the farmers in the sample also sell
their red pepper to the consumers in the regional market. Village markets are markets which are
closest to farmers’ resident, having less marketing facilities such as road, electricity, potable
water etc. Farmers sell smaller quantity of red pepper on such markets.
Local Collectors: Local Collectors/rural assemblers are farmers or part-time traders in the chain
who buy small quantity of red pepper from farmers in village markets during slack period for the
purpose of reselling it to consumers or regional wholesalers in either in rural or regional market.
They use their financial resources and their local knowledge to buy red pepper from the
surrounding area and they play important role by identifying the areas of surplus so that it can
sold in deficit areas. They often receive cash from wholesalers after or before sell.
Generally, they perform physical (assembling and storing) and facilitating function (sorting) of
red pepper for their loyal customers.
Wholesalers: Wholesalers are traders who buy large quantities of goods and resells to retailers
than selling directly to the ultimate customers. They are the major actors in the marketing
channels. These actors are located in the middle upper part of the market chain and they have
somewhat strong financial as well as management-know how in all aspects of the business
activity in comparison with other actors. The wholesalers are either licensed or not, and buy red
pepper from producers and local collectors. Commodities bought from different sources put
together in one place (store) and sorted to make the products to be in similar grades so that
uniformity of the products at each grade to be attained.

xxx
Processors: This means that the whole sellers generally participate in marketing of red pepper
and perform physical (place utility) and facilitating functions (financing).
Place utility refers primarily to making goods or services physically available or accessible to
potential customers. 
Retailers. Retailers as direct market actors of red pepper are located at the end of marketing
chain, directly servicing the last actors (ultimate consumers) in the production to consumption
system.
They perform numerous marketing 67 Mekdes Dessie et al.: Market Chain Analysis of Red
Pepper: The Case of burie District, Gojiam, Amhara, Ethiopia functions such as buying,
processing, storing, selling and other functions related to marketing. Based on their geographic
location, retailers are classified as rural and urban retailers. Rural retailers are market actors in
the final link of the market chain and reside on the woreda town.
They buy the red pepper from farmers’ customer directly or through broker in the market and on
their purchasing and selling places (like verandahs) on the days other than the market days.
Urban Retailers are retailers that sells commodity to end users (consumers and processors). They
reside in the terminal market and buy the product either from wholesalers or urban assemblers or
rural retailers.
These include millers, and ‘Balitina’ shops that buy red pepper and add values for selling.
Particularly, millers are owners of red pepper mills and process the pepper. Usually they buy low
quality pepper at low price directly from rural and urban wholesalers and process the pepper by
miller and resell their processed product to consumers or retailers. They are also known for using
low quality spices while processing the pepper. In addition to this, they provide grinding services
to ‘Balitina’ shops, wholesalers, and consumers. ‘Balitina’ shops play major role in pepper
trading and processing. There are 2 well known ‘Balitina’ shops that in burie. They buy whole
red pepper from rural and urban wholesalers.
Consumers: Consumers are the direct actors in the chain. They are the final stage actors or
players in the red pepper value chain/in the production to consumption system of red pepper that
purchases the products from producer, collector, retailers or processors for consumption. This
means that they are market actors who purchase either raw red pepper or processed red pepper
for their own consumption directly from the producers and or they have many alternatives as
they are the final destination of the products. About three types of red pepper consumers were

xxxi
identified: households, restaurants and institutions which give services such as higher education
institutions, hospitals, etc. Households’ level consumers are employees, and urban and rural
dwellers who purchase and consume red peppers and they purchase red pepper directly from
producers, retailers and wholesalers though most of the consumers purchase from retailers.
Farmers also make important segment of the rural consumers since they consume part of their
produces. Institutions purchase the product from wholesalers who have the capacity to supply
regularly based on contractual agreements. Therefore, they have many options to purchase red
pepper and product from the harvesters, local collectors (broker), wholesalers, retailers and
processors.
B. Supporting actors
The supporting actors are those who provide supportive services for the actors in the production
to consumption system of red pepper. The services provided by them include training and
extension, information, financial, licensing and research services. Training and Extension
Services: BOARD office in collaboration with other institutions has been providing different
trainings to the market chain actors of red pepper in the Woreda.
Licensing service: Woreda office of Custom and Revenue (WOCR) was the main body
responsible for giving license for red pepper traders (wholesalers) and collecting revenue through
taxation in the Wereda. Though there is no any fixed taxing system, on average wholesalers are
expecting to pay 350 birr per Isuzu track.

4.4., conduct, and performance of red pepper

In this section the findings from the analysis of red peppers, market conduct and market
performance is presented and discussed. The section is comprised of two subsections. In the first
sub section the nature of red pepper marketing conduct is presented. The second sub section is
deals with the performance of red peppers markets.

4.4.2 Red pepper market conduct

To study market conduct there are no agreed up on procedure. The conduct of the pepper market
is analyzed in terms of the availability of price information, price setting, purchasing and selling
strategies of producers and traders.

xxxii
4.4.2.1 Conduct of producers
Red pepper is the most important cash crop in Bure Woreda as well as in Amhara region. Red
pepper supply starts in November and reaches its peak in January and sharply decline after
February. The main market information farmers’ used were input and output prices. According
to the survey result, all producers supply the product to the market and almost all the sampled
farmers had market information before sale. The sources of information were from friends,
neighbors and through telephone.
The price setting strategy producers used to sale the product was 34.1% through negotiation and
market, 22.74% based on the market, 6.8% also set by negotiation and 19.32% through
producers. The detail price setting strategy is indicated in Table 7. There was no any contractual
based marketing system in the area to minimize marketing risks.
During the marketing of the product both traders and farmers cheat each other. Traders Minimize
the volume of the product during weighing, which was the major activity they Usually did taking
the advantage of the knowledge of farmers. On the other hand, farmers Cheat traders by watering
red pepper and adding other foreign matters so as to increase weight that had a great impact on
the quality of the product.
Table 3: price setting strategy of producer to the market the product

Who is set the price in a market Number sampled HH Percentage

responded
Producers 17 19.32%
Buyers 3 3.4%
Through negotiation 6 6.8%
Market (demand and supply) 20 22.74%
Negotiation and market 30 34.1%
Assembler $ buyers 12 13.64%
Total 88 100

4.2.2.2 Conduct of traders

Price information: Market information plays a great role for traders because it affects the
volume of the product to be purchased, price of purchasing and selling, and time of sales. The
market information was not transparent between the different categories of traders that created

xxxiii
high price variability and difference among traders. Wholesalers have got quick and readily
information relative to retailers. As indicated in Table 8. Trader’s sources of information were
60% from other traders in their residence and through telephone, telephone 15% and 25% from
other traders out of Bure.
Table 4: Traders markets information source about price

Source of information Number of sampled traders Percentage(%)

Other trader 3 15
Telephone 5 25
Other trader & telephone 12 60
Total 20 100

Buying and Selling Strategies: The sampled traders preferred the local market i.e. a market out
of the capital city of the Woreda to purchase the product directly from producers because of the
price advantage they got with due consideration of the transportation cost. During buying all
traders make a price difference for quality based on their experience. Traders attract buyers by
paying reasonable price and using correct measure. During buying 6.8% of the sampled traders
set price by negotiation and 13.34% of them by the central market price. Traders attract
producers by showing their loyalty in providing fair price and proper weighing as mentioned
earlier. As the survey result indicated 83% of sampled traders do not have permanent customer to
supply the product.
Table 5: Trader source of pepper supply

Source of product supply Number of sampled traders Proportion

from other trader 4 20%
from producers 11 55%
market of burie town 5 25%
Total 20 100

4.4.3 Red pepper performance

The red pepper market performance was evaluated based on the level of marketing margins and
also the level of market integration among the major regional markets in the western part of the

xxxiv
region. The analysis of marketing channels was intended to provide a systematic knowledge of
the flow of goods and services from its origin to final destination.
4.4.3.1 Marketing margin
As mentioned earlier marketing margin is the difference between the price paid by consumers
and that obtained by producers. Based on the reported prices by the different market participants,
summarized in Table 11, the gross and net margins for different marketing channels are
calculated as follows.
Table 6: percentage marketing margins for different marketing channel

Marketing margin Marketing channel

Channel I channel II channel III
Producer
 Production cost 99 99 99
 Marketing cost 30 30 30

 Total cost 129 129 129

 Selling price 6000 5500 4800

5871 5371 4671
 Gross profit
100% 91.67% 78.9%
 GMMP (%)
Retailer
 Purchasing price 5500 5500
 Marketing cost 85 30

 Total cost 5585 5530

 Selling price 6000 6000

415 470
 Gross profit
8.33% 8.33%
 GMMP (%)
wholesaler
 Purchasing price 4800
 Marketing cost 90

 Total cost 4890

 Selling price 5500

610
 Gross profit
12.72%

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  GMMP (%)
Source: survey result 2019

5. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1. Summary and Conclusion
This research has analyzed red pepper market chain in Bure Woreda, West Gojjam. For this
study, a total of 88 respondent’s producers and 20 traders were interviewed using un Structured
questionnaires. Secondary data on basic agricultural activities and population was also collected
from different stakeholders. The study has focused on the conduct, and performance of red
pepper market Participants and market integration in the Western part of the region. Farmers use
fertilizer below the recommended rate but they use improved and local seed above the
recommended rate per hectare although there is a shortage of improved seed. The Major
suppliers of inputs were office of agriculture and Burie town traders. Farmers in the Woreda do
not have any distinct/unique standard characteristics to identify the quality of pepper. They
usually identify quality of red pepper using a mix of attributes like Color, pest damage, size and
shape, odor and foreign matter.
. Producers selling price was determined through negotiation and the market (33.33%) with
traders based on the current market demand and supply 23.33% and buyers interest 3.33%
The survey result indicates that 73% of the respondent’s sources of information were from other
traders and through telephone.
The total gross marketing margin (TGMM) is highest in the channel that involves producers,
Wholesalers, retailers and consumers which is about 18.23 and lowest (12.87) in channel Where
producer, wholesalers and consumers were participating. Retailers and wholesalers Have got the
highest gross marketing margin where as rural assemblers have got the lowest Margin.
5.2. Recommendations
The major factors identified as a problem in red pepper market chain analysis were related to
both pepper production and marketing.
. To solve the marketing problems and increaseproduction and marketable supply of red pepper,
the following recommendations were Forwarded:

xxxvi
 Giving continuous training and education in red pepper production to make a significance
change to increase the production and to change production skill of the producer is very
important to change the attitude of farmer.
 Improve access to inputs to increase productivity of red pepper to provide modern inputs at
the right time and the required amount at reasonable price to increase production.

 Continuous training and education in red pepper production: increase in red pepper
production techniques has significant effect to increase production then by marketed
surplus. Continuous training and education would change the production skill of producers
is very important to change the altitude of farmer.

 . Hence it is important to strength the credit institution in terms of spatial, coverage,

amount of the credit and timely provision for both farmers and traders. Sowing the group
collateral procedures and collateral problems of farmers and traders to get a credit from
different finanicial institution is very important.

xxxvii
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APPENDIX
QUESTIONERY

Background information

DEBREMARKOS UNIVERSITY,BURIE CAMPUS COLLAGE OF AGRICULTURE.

Department of Agribusiness and value chain Management

Background information

xli
Questionnaires for producers

1.Name of household head _________________________

2. Sex of household head: 1. Male 2. Female

3. Age of household head: _______ years

4. Religion of household head: 1. Orthodox 2. Muslim 3. Protestant 4. Catholic 5.

Other (specify) ______________

5. Marital status of household head: 1. Married 2. Single 3. Divorced 4. Widowed

6. Educational level of household head: 1. Illiterate 2. Informally literate (read & write)
3. Formally literate

7. If your answer is formally literate, mention years of schooling _________

Distance of your residence to the nearest development centre: -------------- hrs walk.

Distance to all weather road: -------------- hrs walk

What are the major inputs used in Red pepper production?

A. Seed B. Pesticide C. Herbicide D. Others (specify)

Who are your input suppliers?

Smallholder farmers

B. Private limited company c. Others (specify)

8. Why do you produce red pepper?

For your own consumption

For marketing

For both marketing and consumption

9. Who are your red pepper buyers?

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 A. Wholesalers’ C. Retailers

B. Consumers D. others

9. Where do you sell your red pepper?

A. In village C. In woreda

B. In kebele D. Others (specify)

10. Do you use contract agreement to sell your red pepper?

Yes No

11. If your answer for question number 10 is yes, what kind of contract?

A. Oral B. Written C. Both

12. Who decide the price of red pepper?

A. Yourself B. Buyers C. Brokers D. Others (specify)

13. How do you attract your customers?

By selling at lower price

By improving the quality of the product

By selling the product with credit

14. What are the red pepper production constraints on your farm?

1. Insects 2. Disease 3.Drought 4. Weeds 5.Frost 6. Flood 7.Shortage of

fertilizer 8.Lack of pesticides and herbicides 9. Others

15. What are your opportunities of Red pepper marketing ?

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Questionnaires for traders (wholesalers or retailers)

1. Name of household head _________________________

2. Sex of household head: 1. Male 2. Female

3. Age of household head: _______ years

4. Religion of household head: 1. Orthodox 2. Muslim 3. Protestant 4. Catholic 5. Other

(specify) ______________

5. Marital status of household head: 1. Married 2. Single 3. Divorced 4. Widowed

6. Educational level of household head: 1. Illiterate 2. Informally literate (read & write)
3. Formally literate

7. If your answer is formally literate, mention years of schooling _________

1. Distance of your residence to the nearest development centre: -------------- hrs walk.

2. Distance to all weather road: -------------- hrs walk

1. From whom you buy red pepper?

A. Producers are farm get level B. Collectors C. Others (Specify)

2. To whom you sell your red pepper?

A. Other traders B. Brokers

C. Consumers D. Others (Specify)

3. What do you do if your Product is not sold on time?

A. Return back to home B. Sell with lower price

C. Sell on another market place D. Sell on the same market

4. Where do you sell your red pepper?

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A. In village C. In woreda

B. In kebele D. Others (specify)

5. Do you process your red pepper?

Yes NO

6. do you have store pepper?

1. Yes 2. No

7. if yes how long do you store it? In months----------------

8.What are the problems encountering you through marketing?

1 Price related problems
2 Infrastructure related problems
3 Lack of customers
4 Governmental tax
5 Product characteristics
6 Others (specify)
Distance to market

1. How long the market from your home? ----------in km

2. How much transport cost is pay for the market? ------------in birr

3. on average how long does it take you to sale your pepper?

A. >1hour B. 1-3 hour C. 4-6-hour D. 6-9 hour E.9-12 hour F. >one day

4. Do you face difficulty in finding buyers when you want to sell?

A. yes B. no

5. What do you do, when the pepper you offer to the market was not sold?

A. took back home B. took to another market on the same day

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 C. took to another market on another day D. sell at lower price E. sell on other
market day

6. When do you get the money after your sale?

A. as soon as sell B. after some hours C. other days after sale D. other 7. How do
you sale your produced pepper?

A. direct to purchaser B. through commission man to the purchaser C. through

broker

D. other

8. How much price is sale red pepper per qunital in previous year.....in birr?

9. How much red pepper is produced in last year?

10. Market price of red pepper per kilograms in current years?

11. How much red pepper you produce in current year?

12. How much livestock do you have?

A. Number of oxen

B. Numbers of cow

C. Number of sheep

D. Number of goat

E. Other

13. How much hectar of land you have..........?

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 A. as soon as sell B. after some hours C. other days after sale D. other 7. How do
you sale your produced pepper?

A. direct to purchaser B. through commission man to the purchaser C. through

broker

D. other

8. How much price is sale red pepper per qunital in previous year.....in birr?

9. How much red pepper is produced in last year?

10. Market price of red pepper per kilograms in current years?

11. How much red pepper you produce in current year?

12. How much livestock do you have?

A. Number of oxen

B. Numbers of cow

C. Number of sheep

D. Number of goat

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 E. Other

13. How much hectar of land you have..........?

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