Determinants of Market Participation of Enset (Ensete Ventricosum) Farmers: The Case of Doyogena District, SNNPR, Ethiopia

Abstract

Enset (Ensete ventricosum) is a traditional staple food crop in many parts of the densely populated south and south-western highlands of Ethiopia. It is a multipurpose crop whose every part is useful, however, kocho and bulla are the two main products processed from the crop. Enset can be dependable source of income in areas where it is grown. Doyogena district, southern Ethiopia, is one of the major producers of enset products. Despite its share in the market, there is limited empirical evidence on its products (kocho and bulla) market participation to design appropriate policies for improving smallholder market participation in the products. Therefore, this study analyzes determinants of kocho and bulla market participation of enset farm households in Doyogena district. Out of 13 kebeles producing enset, three of them were selected randomly for this study. A total of 154 households were selected randomly. Data were obtained through face to face interview and focus group discussion by using pre-tested questionnaire and checklists respectively. Heckman selection model (two-step) was used to estimate determinants of kocho and bulla market participation decision and intensity of participation. Eleven variables were hypothesized to determine market participation decision and intensity of participation of kocho and bulla producers. The model result indicated that, out of 154 producers interviewed, 68.2% and 71.4% of the respondents were kocho and bulla market participants respectively. The model output revealed that age of the household head, nearest market distance and area under enset cultivation as statistically significant determinants of market participation decision and intensity of participation of kocho producers. The model also shows age of household head, family size, nearest market distance and area under enset cultivation as statistically significant determinants of market participation decision and intensity of participation of bulla producers. Therefore, policies that aim in enhancing market participation of enset farmers should take into consideration the difference in response to the various factors that affect kocho and bulla market participation by enset farm households.

Keywords: Bulla, Doyogena, enset, kocho, participation, Heckman (two-step) model, SNNPR, Ethiopia