Market orientation practices of Ethiopian seed producer cooperatives

Abstract

AbstractThe practices of market orientation are context-specific. This paper focuses on the concept and practices of market orientation in Ethiopian seed producer cooperatives (SPCs). Based on 44 semi-structured interviews with experts and practitioners (SPC leaders and member farmers), we identify key market orientation elements in the SPCs’ context. Market orientation criteria in the Ethiopian SPC context could meaningfully be grouped into five underlying dimensions: quality of produce, business organization, external orientation, value addition activities, and supplier access. The understanding of market orientation by practitioners, particularly by member farmers, is limited to quality seed production. There is considerable recognition among respondents of the importance of customer orientation in the SPC context. Information on produced seeds, market prices, and profits is considered important. Information on competitors, although recognized by experts as important, is not really gathered by SPCs. Experts believe that the SPC committees should be responsible for information dissemination, but in practice, there is also an important role for the SPC chairman personally. Market-oriented practices in SPCs contribute to increasing employment and productivity and ensuring food security. Policymakers should devise strategies to support SPCs in becoming more market-oriented and successful in their business ventures. Specific market orientation practices by SPCs are discussed in detail.