Analysis of Factors That Dictate Farmers to Sell Their Produces Early:implication for Seasonal Price Fluctuation

Bedaso Taye

Ethiopian Journal of Economics, 2015, vol. 23, issue 2

Abstract: In Ethiopia, agricultural markets are characterized by seasonal price fluctuations as price seasonality is a fact of life in any agrarian production system. Prices of Agricultural crops typically fall immediately after harvest and rise gradually thereafter until the next harvest. This study was conducted to analyze the factors that dictate farmers to sell their produces immediately after harvest and thereby create price fluctuations. The study used household survey data to estimate Tobit model for the propensity and intensity to sell crops immediately after harvest. The econometric result indicates that education of head of household, number of markets, input cost, labor cost, and credit are found to affect quantity and intensity of early sale positively while family size and technology use affect intensity and propensity to sell early negatively.

Keywords: Agricultural Finance; Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eeaeje:259415

DOI: 10.22004/ag.econ.259415

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