Determinants of Livestock Commercialization in Rural Area of Oromia Region: In Case of Pastoral Area of Borena Zone

Abstract

This study analyzed the major determinants of livestock commercialization in farm household of Oromia Region taking evidence from of pastoral area of Borena zone. In order to achieve these objectives demographic and socio-economic data were collected from 150 randomly selected households. Three -stage sampling procedures were used to select sample farmers as a result a total of 150 household heads were selected randomly from the respective list of farmers using probability sampling techniques. Tobit regression model has been employed so as to identify the major determinants of livestock commercialization. The dependent variables, livestock sales rate of households were regressed against ten explanatory variables, among ten explanatory variables nine (sex of the household, household  family size, access to market information, , size of grazed land, distance from the market, alternative source of income, Total livestock unit, price of livestock and state of road ) of them were found to be statically significant at 1% and 5% level of significance and the remaining one variable (access to education level of the  household) is significant at 10%.Therefore, policy need to focus on supporting households in delivering services in the area of the livestock commercialization in the study area. Especially, focus should be given to the significant variables which determinate the livestock commercialization in farm households of the study area.

Keywords: livestock commercialization, Oromia, Borena, Determinant variable, Tobit.