Determinants of Groundnut Market Supply: The Case of Fogera Woreda, South Gondar Zone of Amhara Regional State

This research tried to analyze the determinants of groundnut market supply in Fogera Woreda, South Gondar Zone of Amhara Regional State. Groundnut (Arachis hypogea L.) is an important cash crop and contributing as both food security as well as sources of income generation for many smallholder producers which improves their living standards. However, improving groundnut producers to arrive at market is a key concern desired in the study area. Hence, this study aimed to identify factors determined household’s groundnut supply to the markets using survey data collected from randomly selected 175 groundnut producing producers. Descriptive statistics was used for socio-economic characteristics of groundnut producers and econometric analysis was used for determinants of groundnut supply to the markets. Ordinary least square estimation result indicated that education level, numbers of oxen owned, number of family size, land size, quantity produced, farming experience, extension service and credit service were significant predictors of groundnut marketed supply. This study was recommended that improving the extension and credit service system is an imperative to accelerate groundnut market development particularly in the study area and generally in the country at large.