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ABSTRACT
This study titled Marketing Value Chain of Cotton that was conducted at Magu district. The
main objective of the study was to analyze and evaluate the performance of cotton marketing
chain and to investigate factors that affect the marketable supply of cotton. The study was guided
by four specific objectives; to identify factors affecting the supply of cotton at farm level, to
identify cotton marketing chains, to assess cotton marketing cost and profit margins for key
marketing channels and identification of constraints and opportunities in cotton production and
marketing.
The research adopts the formula from Raosoft.com to obtain a sample size of 268 respondents
from the total population of seed cotton farmers of approximately 23,000 at Magu district. The
survey includes two ginneries and the available seed cotton buyers at Magu district. Primary and
secondary data were obtained from the survey; both descriptive and analytical techniques were
used to analyze them.
In this study, factors affecting farm level marketable supply of cotton were analyzed using
regression analysis. The results obtained from this analysis indicate that access to credit for
cotton cultivation, land allocated to cotton cultivation by farmers, productivity of cotton in
previous seasons, access to cotton extension services, experience in cotton production and
transportation of cotton to the market significantly affect the farm level marketable supply. The
marketing value chain of cotton was identified during the survey and its performance was
analyzed using marketing margins supplemented with analysis of cost incurred and gross profits
generated for different market chain actors. The analysis showed moderate performance of the
chain and the major constraints and opportunities in cotton production and marketing were
discussed. |
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