Factor Affecting Marketing Chain Performance of Agricultural Inputs (In Case of Agricultural Cooperative Union around Dire Dawa)

Abstract

This study examines the agricultural input market chain, focusing on how cooperative unions can tackle supply issues arising from market competition. Agricultural cooperatives are vital for smallholder farmers in accessing inputs, and this research aims to pinpoint key factors marketing, financial, legal, and service delivery that impact the performance of this market chain. An explanatory research design was used, integrating both qualitative and quantitative methods. The sample consisted of 164 respondents from 460 cooperative unions, selected through a mix of convenience and random sampling techniques. Data was collected via structured interviews and closed- ended questionnaires. Analysis involved multiple linear regressions, Pearson correlation, and descriptive statistics. The findings indicate that marketing, financial, and service delivery factors positively influence market chain performance, whereas legal factors showed insignificant results. For optimal performance, organizations should focus on effective marketing and financial strategies, while adhering to appropriate regulations and service standards.