Determinants of Honey Marketing in Domestic Market Channel: The Case of Bahir Dar Zuria Woreda, Amhara Region, Ethiopia

Abstract

This study was aimed at analysing the determinants affecting the market
channel choices of honey producers in Bahir Dar Zuria Woreda of West
Gojjam Administration Zone. The study largely used primary data collected
from 125 randomly selected beekeepers in the Woreda through structured
questionnaire. Both descriptive statistics and econometric models were used
for analysis. The descriptive statistics result indicated that 69.6% of sample
households chose collector market channel, 9.6% chose cooperative market
channel and 20.8% chose consumer market channel to sell their honey.
Multivariate probit model was used to identify determinants of market channel
choices and the results showed that experience of beekeeping, cooperative
membership, transport facility and time of selling of honey product had
significant effect on honey producers’ choice of market outlets. The
probability of choosing local collector, cooperatives and consumer outlets is
60.7%, 19.6% and 34.9%, respectively. Local collectors were the most likely
chosen market outlets while cooperatives were the less likely chosen market
outlets. The combined probabilities of households to jointly choose the three
market outlets was 0.07%, which was lower than the likelihood of not
choosing all market outlets (which was 6%). This suggested the need to invest
on improving the present transportation facilities, market information delivery
system and establishing strong farmers’ cooperatives to assist beekeepers so
that they choose the more rewarding market channels.