Determinants of Market Participation and Intensity of Participation of Teff Producers in West Arsi Zone of Oromia, Ethiopia

Abstract

In Ethiopia, agricultural transformation is taken as a pathway to transition from a traditional subsistence orientation to market focused and commercialized farming system. In this regard, efforts to enhance smallholders’ participation in cereal market in general and teff in particular have made through boosting production . Nevertheless there is dearth of information on the teff of market participation and its intensity of participation in central Oromia particularly in Shashamane district. Therefore, this study was analyzed market participation and extent of teff market participation of farmers. The total 202 respondents were selected by using two stage sampling techniques and also interviewed. Double hurdle model was used to identify the determinants of market participation decisions and extent of market participation. The study showed that, educational level, livestock owned, land allocation for teff production, extension contact had positive significant effect on teff market participation decision, while sex of household head, family size, distance to nearest market had significant and negative effect. Intensity of market participation was affected positively and significantly by land allocated for teff, while family size and non-farm income significantly and negatively affect level of teff mark supply Therefore, focus on strengthening the technical, resource base, infrastructural and institutional capacity building of smallholder farmers are strategies that promote teff producers market participation and Intensity of participation.

Keywords: Double hurdle model, Smallholder farmers, Teff market participation

DOI: 10.7176/FSQM/101-04

Publication date:September 30^th 2020