ABSTRACT
The primary government agencies that have a significant effect on agricultural production are concerned with grain marketing, distribution of consumer goods, and the diffusion of innovations and services to peasant farmers. The government decided to intervene in the distribution of agricultural goods to stabilize the market by establishing the Agricultural Marketing Corporation (AMC), in 1976. Individual fanners are required to sell a certain quota of their produce to their service cooperatives at a fixed price set by the AMC. The AMC distributes the grain to urban dwellers through the Urban Kebelle Association which serves as a retailer to the AMC. The AMC sets the price at the farm-gate, wholesale, and retail level throughout Ethiopia. The farm-gate price, which the AMC pays to peasant farmers, is the lowest on the ladder. The Ethiopian Domestic Distribution Corporation was established in 1976 to provide consumer goods to the urban areas as well to the peasant sector.
