“Marketing Challenges of Tuff, Maize, and Wheat in Cooperative Societies: Evidence From Ambo District, Oromia Regional State”

Abstract

This study examined the marketing challenges and benefits associated with cooperative membership among farmers engaged in teff, maize, and wheat production in Ambo District, Oromia Regional State, Ethiopia. Data were collected from 240 respondents selected from the Sakale Faris and Wolkite Cooperative Societies using a structured questionnaire, achieving a high response rate of over 96%. The majority of participants were male (65%), aged 26–35, with at least a secondary education and over three years of cooperative experience. Key marketing challenges identified included unstable market prices (approximately 46%), exploitation by middlemen (about 44%), high competition from private traders (39%), inadequate storage (36%), poor transportation infrastructure (32%), and limited access to credit (30%). Nearly one third of respondents rated market linkages as fair, while 18%–23% described them as poor or very poor. Despite these constraints, cooperatives supported members by supplying seed and fertilizer (65%), providing technical training (49%), and improving market access (60%). Reported benefits included increased income (81%), job creation (60%), and improved food security (49%). However, persistent issues such as shortages of quality inputs (43%) and climate-related risks (32%) continued to hinder productivity. To explore the predictors of marketing problems, a binary logistic regression model was applied. The results revealed that higher service quality (p = 0.004) and availability of collateral (p = 0.009) were significantly associated with reduced likelihood of facing marketing challenges. Similarly, effective use of credit (p = 0.045) was also linked to a lower probability of marketing difficulties. These findings suggest that improvements in service delivery, credit access, and collateral mechanisms can significantly enhance marketing performance. The study concludes that while cooperatives contribute meaningfully to farmers’ livelihoods, addressing structural issues such as infrastructure, financing mechanisms, and market connectivity is critical to enhancing their sustainability and long-term impact.