Cereal Commodity Trade Quantity Measurement Cost and Reliability: Evidence from Local Agricultural Marketplace of Ethiopia

The issue of measurement reliability is certainly undervalued in the local agricultural marketplace organization. Besides, there was nothing identified concerning the extent of cereal commodity trade measurement cost. Hence, this paper aimed to estimate the magnitude of cereals trade quantity measurement cost caused by instrument error and unreliability; mainly by targeting the local marketplace in Ethiopia. The survey was conducted in six different districts’ marketplaces (n = 602) of Oromia region by employing administered structured questionnaires and site mass measurement calibration. The gathered data were analyzed using independent samples t-test, one sample t-test, and analysis of variance. According to the findings, the actual value measurement means of the quantity of most local units of the farmers were greater than small traders. The independent t-test result indicated that the average values of the quantity of the majority of units of measurement between farmers and small traders were varied significantly. Estimated measuring instruments’ error and unreliability associated average measurement cost of one-day market transaction over total cereals marketed amount were higher comparatively for a sack, bowl, and glass units. This study demonstrates that homogeneity in measurement, policy, and institutions that aid cereals trade would have an indispensable role to reduce measurement costs and ensure equitable exchange.