Factors Affecting Groundnut Market Outlet Choice in Moisture Stress Area of Babile District, Eastern Ethiopia: Multivariate Probit Approach

Abstract

The groundnut plant has the ability to survive in areas of low rainfall because it is a legume and it increases soil fertility by fixing nitrogen in the soil. The study area is known by erratic and uneven rainfall while groundnut is the main cash crop in the area. The study identified the groundnut market outlets, factor affecting groundnut market outlet choice and identifies farm level women role in groundnut production, in Eastern Hararghe, Oromia Region. Both primary and secondary data were collected for the study. Primary data were collected from 120 sample households using questionnaire during the period of January15-February202016. The study implemented multivariate probit regression model to identify factor affecting groundnut market outlet choice. The results show that there is a significant correlation between marker outlets suggesting that practice of market outlets is interrelated. Multivariate probit regression estimation also revealed that sex of household head, education level, market distance, size of groundnut land, groundnut production experience, store time, access to extension and labor force of household member found to affect significantly the groundnut market outlet choice of household in study area. This also shows that higher educational level of household head increases the awareness of farmer about the benefits of choosing profitable market outlet. Therefore, a way of access to adult education for household head should be designed.