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Journal of Agricultural & Food Industrial Organization

Ed. by Azzam, Azzeddine

CiteScore 2018: 0.57

SCImago Journal Rank (SJR) 2018: 0.324
Source Normalized Impact per Paper (SNIP) 2018: 0.398

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Optimal Farmer Choice of Marketing Channels in the Ethiopian Banana Market

Getachew Abebe Woldie
Published Online: 2010-10-29 | DOI: https://doi.org/10.2202/1542-0485.1298

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

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Published Online: 2010-10-29

Citation Information: Journal of Agricultural & Food Industrial Organization, Volume 8, Issue 1, ISSN (Online) 1542-0485, DOI: https://doi.org/10.2202/1542-0485.1298.

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©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

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