Determinantes of Quality and Market Outlet Choices in Sesame Trade: Trade Arrangements and Small Farmer's Participation in Quality Improvement: the Case of Sesame in Ethiopia

Sesame is one of the main export crops in Ethiopia. Improvement in productivity, quality and marketing of sesame produce in potential areas like Humera and Metema can be a major signpost to boost foreign earnings and hence enhance small farmer's livelihood. This study assesses the quality challenges, chain structure and performance in the existing sesame marketing system. The study duly focuses on the determinants of sesame quality and market outlet choices of farmers in the chain. The study results of market structure analysis indicate that different actors are involved in the current sesame market in Ethiopia and the market can be characterized by competition. In this study we find that cooperatives and village markets are the preferred outlets for farmers and quality is rewarded at least in these markets. We argue further that quality improvement is dependent on farmer characteristics, input use attributes, market context and access to supporting services. The paper ends with policy implications and managerial intervention at each tier levels in the chain.