Market Performance and Supply Chain Analysis of Maize: The Case of Guduru Woreda, Horro-Guduru Wollega Zone, Ethiopia

Abstract

The maize market in Guduru Woreda encounters several obstacles that affect the overall market performance and supply chain efficiency. Smallholder farmers, who are the primary producers, often face challenges related to limited access to market information, inadequate infrastructure, and weak bargaining power. These issues are exacerbated by the lack of well-organized market institutions and supply chain inefficiencies, resulting in price volatility and reduced income for farmers. Therefore, the objective of the study was to examine the factors influencing maize market performance and to analyze the maize supply chain. For the analysis, both primary and secondary data were utilized. Primary data were collected from 15 traders, 25 consumers, and 201 sampled households. Both inferential and descriptive analyses were employed in the study. It was determined that farmers marketed their maize through seven distinct channels. Market performance was assessed using cost and marketing margin analysis. When producers sold their goods through channels IV, VI, and VII, their profit margins were 389.7 387.15, and 384.45 birr per quintal, respectively. The results indicate that wholesalers and collectors hold the majority of the profit margin in channel V, with 45.9% and 42.5%, respectively. The determinants of maize market supply were analyzed using the Ordinary Least Squares (OLS) model. The OLS model's findings suggest that the quantity of maize produced and its market price in 2023 were significantly influenced by factors such as cooperative membership, farmer experience, and the acreage allocated for maize cultivation