Decision on Market Participation of Rice Producers in Fogera District, Northwestern Amhara Region, Ethiopia

Abstract

The recent studies indicated, determinants of rice market participation need further investigation in Fogera district. Therefore, this study was conducted  to identify determinants of rice market participation decision and the quantity of rice marketed by rice producers. To achieve these objectives, both primary and secondary data were collected in 2018/2019 farming season. Both descriptive statistics and double hurdle econometric model were used to analyse the data of 212 sample rice producers. From the sample rice producers, 78.3% were market participants and the remaining 21.7% were non participants. The results of the study indicated, market distance was significantly and negatively influencing the probability of rice market participation, while credit use, production and market information were significantly and positively influencing the probability of rice market participaton. Where as, education level, credit use, production, labor and rice land size were significantly and positively influencing the quantity of rice marketed supply. The finding of this study emphasis the importance of socio economic, institutional and market factors related to yield enhancing rice technologies, use of credit and having access to market information. Therefore, development interventions could focuss on improving such socio economic, institutional and market determinants to make farmers’ rice market participation wider.

Keywords: Double hurdle, Ethiopia, Fogera, Rice

DOI: 10.7176/FSQM/120-02

Publication date:October 31^st 2022