Fogera District is endowed with diverse natural resources. It has huge potential water sources which are suitable for irrigation during the dry season for the production of horticultural crops mainly vegetables. However, there is a great market problem in the area associated with the nature of horticultural crops such as perishability and seasonality in production. Moreover, the area is characterized by the existence of strong brokerage activity with their economic role not known.
The main objective of this study was to analyse the economic roles played by the brokerage institutions in smallholder market linkages to market outlets in horticultural marketing and determinants of decisions on whether to use brokerage institutions or not under imperfect market condition in Fogera District, in northwestern Amhara Region particularly focusing on onion and tomato.
The result of the study showed that the brokerage institutions are characterized as urban, peri-urban and farmer brokers. There was significant brokerage activity only for onion marketing and in the case of tomato marketing the brokers act as rural assemblers. Most of the horticultural trading in the area is undertaken by credit and thrust based and in this arena brokerage institutions are playing most important role by linking smallholder farmers to market outlets.