Effect of Cooperative Membership on Market Outlet Choice in Case of Anfilo District, Western Ethiopia

Abstract

This study was conducted to analyze the effect of cooperative membership on market outlet choice the case of Anfillo district, western Ethiopia. The data were collected from both primary and secondary sources. Three stage sampling technique was employed to select coffee producer households for the study. The primary data were collected from 183 (86 members and 97 nonmembers of cooperatives) coffee farmers.  Descriptive statistics and econometric methods were employed to analyze the data. Accordingly, from the total members of cooperatives (86), only 10(11.6%) were female headed; this indicates that female household’s heads could not actively participate in institutional and organizational activities and majority of the social work has been dominated by male. Based on the result of multivariate probit model, the probability of choosing cooperative market outlet is influenced by membership into coffee cooperative, marketing service provided from cooperative and availability of equine owned. While probability of choosing collector market outlet is negatively influenced by membership in to coffee cooperative, marketing service provided from cooperative and time of coffee sale; probability of choosing retailers outlet is negatively influenced by membership into coffee cooperative and frequency of extension contacts.