Challenges and Prospects of Rural-Urban Marketing Linkages in Debre Markos Town and Its Hinterland, Amhara Administrative Regional State, Ethiopia
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Date
2009-06
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Addis Ababa University
Abstract
The study was conducted in Debre Markos town and its hinterland. The main objective of the study
was to assess the challenges and prospects of RUMLs in the study area. It has made use of
primary and secondary data sources and 237 households were selected through systematic
random sampling. The data was analyzed by making use of a blend of descriptive and inferential
statistical tools. The study discloses wide differences between hinterland farmers and their urban
counterparts to recognize and identify pertinent challenges that hamper RUMLs. To hinterland
farmers, shortage of land, subsistence agriculture, lack of market facilities, price fluctuations and
shortage of farm inputs are the jirst jive main challenges in ascending order that affect R UML.
The x2 analysis reveals that both groups of farmers are equally victims of these challenges. Urban
households on the other hand identified, Price fluctuation, lack of market facilities, inflation, lack
of agro-processing industries and subsistence nature of agriculture as the .first jive main
challenges in order of severity that affect RUML in the study area. The study has identified weak
and partial backward RUML while forward production marketing linkage is almost non-existent.
The only linkage found relatively strong is consumption linkages. The analysis using One-way
ANOVA shows that urban households do not differ significantly based on age and duration from
each other on the mean cost incurred and mean amount of farm outputs purchased. The
correlation analysis on the other hand reveals that the amount of farm outputs purchased and cost
incurred by urban households decreases, as people get older and older. Among ten variables,
shortage of land is the jirst problem that affects agricultural production in the hinterland.
Production is subsistence often used for consumption that never satisjies urban peoples ' demand.
The multiple regression results show that age of the household and distance are equally important
factors to explain the variance on the amount of cereals sold. While the amount oj'farm inputs
used and farm size are less significant to explain any unique variance on the amount oj' cereals
marketed by farmers. PASDEP, agricultural sector policy, industrial sector policy, road sector
policy and decentralization are identified as national prospects to enhance RUMLs. While
expansion of MSEs, investment activities, consumers ' associations, cooperatives and farm output
marketing services are some of the local prospects that would harness RUMLs. No significantly
coordinated efforts have been made by local governments to harness R UMLs in the study area.
Finaliy, it is recommended that to ameliorate the pertinent RUML challenges and promote mutual
development; a pooled effort is needed from all concerned stakeholders.
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Keywords
Rural-Urban Marketing Linkages