Analysis of cotton marketing chains: the case of Metema Woreda, North Gondar Zone, Amhara National Regional State

Tegegne, B. Haramaya University, Haramaya (Ethiopia). 2008. Analysis of cotton marketing chains: the case of Metema Woreda, North Gondar Zone, Amhara National Regional State. MSc thesis (Agricultural Economics). 110p. Haramaya (Ethiopia): Haramaya University.

In this study, factors affecting farm level marketable supply of cotton were analyzed using Robust OLS regression analysis. The results obtained from this analysis indicated that number of oxen owned by household, land allocated for cotton in hectare, the productivity of cotton per hectare, and access to credit for cotton significant factors affecting farm level cotton marketable supply. In order to evaluate the efficiency of cotton market chain that can have great influence on farm level marketable supply of cotton, structure-conduct performance approach was adopted. Market concentration ratio (CR4) at District level was found to be 49.76 percent and there were observed barriers to enter into cotton market. These structural characteristics indicate oligopolistic structure of cotton market at District level. The study suggested that cotton market at ginneries and textile factories level is highly oligopolized by two ginneries and three textile factories. Buying, selling, and pricing strategies, which are indicators of market conduct showed deviation of cotton market from competitive market norms. Performance of cotton market chain was analyzed using Marketing Margins supplemented with analysis of costs incurred and gross profits generated for different market chain actors. The analysis showed poor performance of the chain in that farmers were the most disadvantaged chain actors, and assemblers and ginneries were better-remunerated ones. The major constraints and opportunities in cotton marketing in the chain were also identified. Based on the study, policy interventions required to increase farm level marketable supply of cotton are suggested and forwarded.