Int. J. Biosci.21(1), 64-75, July 2022
e of the essential roles in improving farmers’ welfare is connecting small farmers to high-value markets. Therefore, it is urgent to focus on opening access to markets and selecting the proper marketing channels. This research provides knowledge of what factors to be addressed to help saba banana farmers in the study area, especially in determining marketing channels. Multinomial logistic regression has been used to determine the factors influencing the decision to select market outlets for Saba banana farmers in Sungai Bakau, Pematang Panjang, and Bangun Harja villages. 254 Saba banana farmers were used as respondents to obtain cross-sectional data, which were then analysed (descriptive statistics and econometric analysis) using the STATA 17 statistical package. The results reveal that, although saba banana farmers in the research locations most often deliver to collectors at the farm gate, differences in farmer characteristics and asset specificity increasingly encourage many farmers to choose other, more valuable marketing channels. The significant factors that influence the choice of market channels were: the level of education, farm size, quantity produced, own transportation, access to credit, and access to market information. The education level and quantity produced have a negative effect. Meanwhile, farm size, own transportation, access to credit, and access to market information positively affect the decision of saba banana farmers to choose the best market channel. This study highlights the need for future research to conduct a more in-depth investigation of the role of information and credit on the level of farmer’s market participation.
Abebe GK, Bijman J, Royer A. 2016. Are middlemen facilitators or barriers to improve smallholders’ welfare in rural economies? Empirical evidence from Ethiopia. Journal of Rural Studies 43, 203–213. https://doi.org/10.1016/j.jrurstud.2015.12.004
Adeoti A, Oluwatayo I, Soliu R. 2014. Determinants of Market Participation among Maize Producers in Oyo State, Nigeria. British Journal of Economics, Management & Trade 4(7), 1115–1127. https://doi.org/10.9734/bjemt/2014/7826
Barrett CB. 2001. Measuring Integration and Efficiency in International Agricultural Markets. Review of Agricultural Economics 23(1), 19–32. https://doi.org/10.1111/1058-7195.00043
Bello LO, Baiyegunhi LJS, Danso-Abbeam G, Ogundeji AA. 2021. Gender decomposition in smallholder agricultural performance in rural Nigeria. Scientific African, 13. https://doi.org/10.1016/j.sciaf.2021.e00875
Chigusiwa L, Bindu S, Muchabaiwa L, Mudavanhu V. 2013. The Role of Market Middlemen in the Marketing of Smallholder Horticultural Products in Zimbabwe. Greener Journal of Business and Management Studies 3(8), 369–377. https://doi.org/10.15580/gjbms.2013.8.110113944
Committe on Word Food Security. 2016. Policy Recommendations. Connecting Smallholders to Markets. http://www.fao.org/3/a-bq853e.pdf
De Castro MA, Arenillo SA. 2016. Acceptability of Musa Balbisiana (Saba Banana) Puree in Two Treatments in Making Ice Cream. Asia Pacific Journal of Multidisciplinary Research 4(4), 29–33.
Degaga J, Alamerie K. 2020. Determinants of coffee producer market outlet choice in gololcha district of oromia region, Ethiopia: A multivariate probit regression analysis. Studies in Agricultural Economics 122(2), 104–113. https://doi.org/10.7896/j.2043
Dessie AB, Abate TM, Mekie TM. 2018. Factors affecting market outlet choice of wheat producers in North Gondar Zone, Ethiopia. Agriculture and Food Security 7(1), 1–8. https://doi.org/10.1186/s40066-018-0241-x
Dioula BM, Deret H, Morel J, Kiaya V. 2013. Enhancing the role of smallholder farmers in achieving sustainable food and nutrition security. ICN2 Second International Conference on Nutrition “Better Nutrition, Better Lives” 13. https://doi.org/10.1016/j.emc.2013.01.001
Dlamini-Mazibuko BP, Ferrer S, Ortmann G. 2019. Factors affecting the choice of marketing outlet selection strategies by smallholder farmers in Swaziland. African Journal of Science, Technology, Innovation and Development 11(5), 569–577. https://doi.org/10.1080/20421338.2018.1554323
Donkor EA, Garnevska E, Siddique MI, Donkor E. 2021. Determinants of rice farmer participation in the direct marketing channel in Ghana. Sustainability (Switzerland) 13(9), 1–14. https://doi.org/https://doi.org/10.1007/BF00133443
Donkor E, Onakuse S, Bogue J, De Los Rios-Carmenado I. 2018. Determinants of farmer participation in direct marketing channels: A case study for cassava in the Oyo state of Nigeria. Spanish Journal of Agricultural Research, 16(2). https://doi.org/10.5424/sjar/2018162-12076
Dube AK, Ozkan B, HayriUygun Gujrati R. 2021. The determinants of market outlet choice of smallholder Vegetable and Fruit producers in Ethiopia. VIMARSH – A Bi-Annual Peer-Reviewed Refereed Journal 12(2).
Endris E, Haji J, Tegegne B. 2020. Factors Affecting Vegetable Producers Market Outlet Choice in Case of Habru District, North Wollo Zone, Ethiopia. European Business & Management 6(1), 1. https://doi.org/10.11648/j.ebm.20200601.11
Fafchamps M, Hill RV. 2005. Selling at the farmgate or travelling to market. American Journal of Agricultural Economics 87(3), 717–734. https://doi.org/https://www.jstor.org/stable/3697909
Fan Q, Salas Garcia VB. 2018. Information Access and Smallholder Farmers’ Market Participation in Peru. Journal of Agricultural Economics 69(2), 476–494. https://doi.org/10.1111/1477-9552.12243
FAO. 2021. Banana Market Review (Preliminary results 2020).
FAO, IFAD. 2019. The future of family farming in the context of the 2030 Agenda.
Fischer E, Qaim M. 2012. Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya. World Development, 40(6), 1255–1268. https://doi.org/10.1016/j.worlddev.2011.11.018
Gale F. 1997. Direct farm marketing as a rural development tool. Rural Development Perspectives, 12(2), 19–25.
Govindasamy R, Hossain F, Adelaja A. 1999. Income of Farmers Who Use Direct Marketing. Agricultural and Resource Economics Review 28(1), 76–83. https://doi.org/10.1017/s106828050000099x
Hess S, Daly A, Batley R. 2018. Revisiting consistency with random utility maximisation: theory and implications for practical work. In Theory and Decision 84(2), 181–204. https://doi.org/10.1007/s11238-017-9651-7
Kassaw MH, Birhane Z, Alemayehu G. 2019. Determinants of market outlet choice decision of tomato producers in Fogera woreda, South Gonder zone, Ethiopia. In Cogent Food and Agriculture 5(1). https://doi.org/10.1080/23311932.2019.1709394
Lee B, Liu JY, Chang HH. 2020. The choice of marketing channel and farm profitability: Empirical evidence from small farmers. Agribusiness 36(3), 402–421. https://doi.org/10.1002/agr.21640
Lim TK. 2012. Musa acuminata × balbisiana (ABB Group) ‘Saba.’ In Edible Medicinal and Non Medicinal Plants. 3, 544–547. Springer, Dordrecht. https://doi.org/https://doi.org/10.1007/978-94-007-2534-8_70
Lowder SK, Sánchez MV, Bertini R. 2019. Farms, family farms, farmland distribution and farm labour: What do we know today? (Issue November).
Lustre AO, Soriano MS, Morga NS, Balagot AH, Tunac MM. 1976. Physico-chemical changes in “Saba” bananas during normal and acetylene-induced ripening. Food Chemistry 1(2), 125–137. https://doi.org/10.1016/0308-8146(76)90004-2
Magesa MM, Michael K, Ko J. 2014. Access to Agricultural Market Information by Rural Farmers in Tanzania. International Journal of Information and Communication Technology Research 4(7), 7–9. http://www.esjournals.org
Manski CF. 1977. The Structure Of Random Utility Models. Theory and Decision 8, 229–254.
Mgale YJ, Yunxian Y. 2020. Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania : Evidence from Mbeya region, Tanzania. Australian Journal of Agricultural and Resource Economics 59, 1–21. https://doi.org/10.1111/1467-8489.12380
Mmbando FE, Wale EZ, Baiyegunhi LJS. 2017. The welfare impacts of market channel choice by smallholder farmers in Tanzania. Development in Practice 27(7), 981–993. https://doi.org/10.1080/09614524.2017.1353066
Mwembe AM, Owuor G, Langat J, Mshenga P. 2021. Factors affecting market outlet choice of agroforestry based mango producers in Kwale and Kilifi counties, Kenya: The application of the Multivariate Probit model. Cogent Food and Agriculture 7(1). https://doi.org/10.1080/23311932.2021.1936367
Nugroho AD. 2021. Agricultural market information in developing countries: A literature review. Agricultural Economics (Zemědělská Ekonomika), 67(11), 468–477. https://doi.org/10.17221/129/2021-agricecon
Nxumalo KKS, Oduniyi OS, Antwi MA, Tekana SS. 2019. Determinants of market channel choice utilised by maize and sunflower farmers in the North West province, South Africa. Cogent Social Sciences 5(1). https://doi.org/10.1080/23311886.2019.1678451
Panda RK, Sreekumar. 2012. Marketing Channel Choice and Marketing Efficiency Assessment in Agribusiness. Journal of International Food and Agribusiness Marketing 24(3), 213–230. https://doi.org/10.1080/08974438.2012.691812
Pham TT, Theuvsen L, Otter V. 2019. Determinants of Smallholder Farmers’ Marketing Channel Choice: Evidence from the Vietnamese Rice Sector. Asian Economic Journal 33(3), 281–300. https://doi.org/10.1111/asej.12187।
Reginio FC, Ketnawa S, Ogawa Y. 2020. In vitro examination of starch digestibility of Saba banana [Musa ‘saba’(Musa acuminata × Musa balbisiana)]: impact of maturity and physical properties of digesta. Scientific Reports 10(1). https://doi.org/https://doi.org/10.1038/s41598-020-58611-5
Sekyi S, Abu BM, Nkegbe PK. 2020. Effects of farm credit access on agricultural commercialization in Ghana : Empirical evidence from the northern Savannah ecological zone. African Development Review 32, 150–162. https://doi.org/10.1111/1467-8268.12424
Slamet AS, Nakayasu A, Ichikawa M. 2017. Small-scale vegetable farmers’ participation in modern retail market channels in indonesia: The determinants of and effects on their income. Agriculture (Switzerland) 7(2). https://doi.org/10.3390/agriculture7020011
Tarekegn K, Asado A, Gafaro T, Shitaye Y. 2020. Value chain analysis of banana in Bench Maji and Sheka Zones of Southern Ethiopia. Cogent Food and Agriculture 6(1). https://doi.org/10.1080/23311932.2020.1785103
Usman MA, Callo-Concha D. 2021. Does market access improve dietary diversity and food security? Evidence from Southwestern Ethiopian smallholder coffee producers. Agricultural and Food Economics, 9(1). https://doi.org/10.1186/s40100-021-00190-8
Wosene G, Ketema M, Ademe A. 2018. Factors affecting market outlet choices of pepper producers in Wonberma district, Northwest Ethiopia: multivariate probit approach. Cogent Food and Agriculture 4(1), 1–13. https://doi.org/10.1080/23311932.2018.1558497