The Influence of Marketing Cooperatives on the Bargaining Position of Producers in Farm-Gate Banana Prices: Evidences from Smallholders in Southern Ethiopia
Proc. IC on Banana & Plantain in Africa, 2010
8 Pages Posted: 22 Jul 2012
Date Written: 2010
This paper empirically investigates farm-gate banana (Musa spp.) price negotiation under asymmetric information using a bilateral bargaining model. It makes an attempt to show how memberships in cooperatives affect the bargaining power of smallholders in southern Ethiopia. A regression analysis reveals that cooperative membership positively and significantly affects the bargaining power of smallholder banana growers. The result also confirms that access to central-marketprice information and past-trade relationship enables farmers to stick to their initially asked price.
Keywords: asymmetric information, banana, Ethiopia, farm-gate price negotiations, marketing, sequential bargaining model
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