Structure, Conduct, and Performance (S-C-P) of Poultry markets in Arbegona and Bensa districts of Sidama Region, Southern Ethiopia

Poultry markets play a crucial role in the livelihoods of smallholders and rural income in southern Ethiopia, but structural, behavioral, and institutional barriers limit their growth. This research analyzes the structure, conduct, and performance (SCP) of poultry markets. It uses Heckman’s two-stage selection model and a Probit regression model to examine households not engaged in selling, focusing on uncovering the system's limitations and prospects. A total of 130 participants as producers and traders were surveyed, comprising 50 traders, 40 consumers, 20 collectors, and 10 operators of hotels and 10 egg shops, and smallholder farmers were examined to evaluate how structural elements (age of household, land ownership, family size), behavioral factors (credit accessibility, distance to town, market pricing, transaction expenses), and institutional support (feed availability, technical help) affect market results. A mix of household surveys, market evaluations, focus group discussions, interviews with key informants, and direct observation was utilized. Descriptive statistics and to examine market structure, behavior, and performance, as well as factors influencing producers' market engagement and supply decisions. The analysis showed that both the egg and live bird markets exhibit oligopoly features, with concentration ratios of 52% and 37%, respectively, reflecting significant and minor oligopolistic tendencies. Main issues in the poultry sub-sector are restricted access to rare breeds, disease outbreaks, predation, shortages of inputs, price fluctuations, and varying demand. Traders encounter problems associated with unstable marketplaces and the risks of diseases. The results indicate that market structure benefits younger households with smaller landholdings, suggesting differences in participation based on generation and resources. Market behavior is strongly influenced by credit availability, pricing incentives, and shorter distances to consumers, suggesting logical yet limited decision-making. Market performance improves with institutional backing, boosting the intensity of sellers' sales and the probability that non-sellers will join the market, as demonstrated by the Inverse Mills Ratio from the Probit model. This SCP-centered examination reveals that overcoming structural obstacles, expanding market access, and strengthening institutional measures are crucial to boosting smallholder participation and overall market performance. The research adds value to both theory by broadening the use of the SCP model to rural livestock markets in low-income settings and, practically, by offering recommendations for policymakers, development workers, and local authorities to enhance market access, fairness, and effectiveness in the poultry industry. Future studies should investigate comparative SCP assessments across regions and analyze how digital platforms and contract farming are transforming poultry market dynamics in Ethiopia.