Determinants of Market Supply Along the Apple Market Chain: In Case of Sinan District, East Gojjam Zone, Ethiopia

Commercializing smallholder farmers in the fruit production is an indispensable path to boost the household income and economic growth in Ethiopia. Apple is the main source of income in Sinan district. However, the district faces various production and marketing problems of apple. Therefore, the study was designed to analysis market chain of apple specifically to identify the determinants of apple supply to the market and to assess of market structure, conduct and performance of apple in Sinan district, East Gojjam zone, Ethiopia. The study used data from primary and secondary sources. A random sampling procedure was used to draw a sample of 121 apple producers. Multiple linear regression model and marketing margin were used to analysis the collected data. The market concentration ratio (37.8%) of the four largest firms was shown that the market structure were weak oligopolistic nature in the study area. The market margin shows that retailers were taken the highest market margin from the available actors. The output of OLS model shows that man equivalent, land size, market distance, access to market information, experience and frequency of extension contact were the key variables influencing the amount of apple provided to the market. The authors suggest that the government and concerned bodies should develop market information delivery system, aware farmers to use land efficiently and wisely, build better roads in apple growing areas and allow access for transport vehicles to cut down transportation expense and product damage during the route to market.