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This paper discusses the role of market information system (MIS) in improving the welfare of small-scale farmers and traders and the status of system in Ethiopia based on the surveys made in 2002 for farmers, traders and MI generators and disseminators. The establishment of public Market Information Systems as a means of increasing the efficiency of marketing systems and promoting improved price formation has been advocated in many developing countries especially in those countries, which have been undergoing structural adjustment. Improved information enables farmers to plan their production more in line with market demand, schedule their harvests at the most profitable times, decide which markets to send their produce to and negotiate on a more even footing with traders. Improved information enable traders to move produce profitably from a surplus to a deficit market and to make decisions about the economics of storage, where technically possible. The MIS in Ethiopia can generally be described as very weak. The MI generated is dominantly historical; it is not broadly available to and therefore not used by the farmers and traders. The major way of acquiring MI for both farmers and traders is through direct observation on market days. About 35% of the farmers were willing to pay for MI and farming experience, level of production self sufficiency and size of leased in land affected positively and availability of labor negatively affected farmers' willingness to pay for MI. Some traders do have network through telephone with other traders and brokers in different market and production areas. The provision of public MIS needs to be considered in the development of the agricultural sector of the country as one of the measures to improve the marketing and production efficiency of the sector so as to improve the welfare of the rural communities.

Socioeconomics Program

Text in English

INT2512