Determinants of Teff Producers Market Orientation in Horo Buluk District of Horo Guduru Wollega Zone, Ethiopia

Abstract

In Ethiopia, teff is an important cereal crop, particularly in Horo Buluk district. It is source of food and cash income for majority of the smallholder farmers. The study was aimed to analyze factors affecting the market orientation of teff producers in Horo Buluk district. The study used both primary and secondary data. Total of 190 farmers were randomly selected in the district. Both descriptive statistics and econometric models were used. Tobit model was used to identify determinants of market orientation. Results of the descriptive statistics indicated that the average market orientation level of teff producers in the district was 20.59% from which 32.63% of sample households were subsistent, 20% of them were less oriented, 45.78% of them were moderate market oriented and only 1.57% were market oriented farmers. The result of Tobit regression model indicated that educational level, perception on lagged market price and number of oxen owned significantly and positively affected market orientation of teff producers while Family size was related to market orientation negatively. Farmers should have to use modern technologies, improved seeds, and access to credit. Furthermore there is a need to strengthen the rural education system, strengthen the family planning program to increase teff market orientation.

Key words: Smallholders, market orientation, Tobit, Teff, Horo Buluk

DOI: 10.7176/EJBM/12-13-06

Publication date:May 31^st 2020