Abstract

Amare H. Tesfaw and Dawit Alemu

A study was conducted at Jabitehinan District, Northwestern Ethiopia to identify red pepper marketing channels, analyze marketing margins and investigate the role of different marketing actors. Relevant data were gathered using formal and informal methods of data collection and analyzed with descriptive statistics using SPSS. A total of 39,544qts of pepper was produced in the district and of this; 7,513qts was transacted during 2008/09. Based on the direction of flow of pepper, 10 marketing channels were identified. Markets were found to be inefficient, with wide margins and oligopoly in structure. The highest gross marketing margin was taken by ‘baltinas’, (70.83%) and the minimum being for farmer traders (5.5% of the consumers’ price). Similarly, the highest and lowest net marketing margins were 67.37% and 0.5% of the consumers’ price which are taken by ‘baltinas’ and farmer traders respectively and hence, in terms of the price spread, markets were found to be inefficient. In order to settle price fluctuations and to strengthen the bargaining power of producers, there should be a well stated commodity standard. Government’s intervention in the enterprise can help producers and other middlemen involve in pepper trading thereby improving the market competitiveness, structure and efficiency.