Factors affecting groundnut market supply in Western Oromia, Ethiopia

Groundnut production is important for consumption, income generation and improves food security of smallholder farmers in Western Oromia. Unlike its importance its production has less concern and it's marketing is challenged by the amount produced. The study aimed to analyze determinants of groundnut market supply in western Oromia region, Ethiopia. In order to do this, both primary and secondary data were used to collect qualitative and quantitative data. A multi-stage sampling technique was used to select samples of groundnut producers from the study area. Primary data were collected from randomly select 400 sampled groundnut producers through a semi-structured questionnaire. The multiple linear regression models was used to analyze determinants of groundnut market supply. The results of the model indicated that age, sex, educational level, access to credit services, number of livestock owned, land allocated for groundnut production and distance from the nearest market statistically and significantly affected market supply of the groundnut. Therefore, the study forward that government, non-governmental organization and financial institutions should give attention to grant credit, train farmers to properly utilize their land, develop and strengthening infrastructural service like road to improve groundnut production and sales thereby to increase benefits of farmers from the groundnut production in Western Oromia.