Determinants of Smallholder Farmers Teff Market Supply, in Jimma Arjo District, Western Oromia Regional State, Ethiopia: A Two Stage Least Square Approach

Abstract

This study attempted to analyze teff value chain in Jimma Arjo district of Eastern Wollega zone with the objectives of analyzing the determinants volume of teff supplied to the market. Two stages random sampling technique was employed. First 3 kebeles were selected from 12 teff producers randomly and second 122 teff producers were selected randomly at 9% precision level. Primary data were collected from 122 farmers using structured and semi-structured questionnaire for both quantitative and qualitative datas. Descriptive statistics and 2SLS model were used to analyze the collected data. The result of 2SLS indicated that size of landholding, quantity of teff produced, credit service, and distance from the nearest market influenced amount of teff supplied to market at 5%, 1%, 10% and 5% significantly respectively. Recommendation drawn from the study findings include the need to improve the land productivity by utilizing land, increasing productivity of teff per acre of land by providing essential inputs, providing credit service for producers and constructing social infrastructure to solve the problem of distance from the market, strengthening the linkage/interaction among teff traders, training producers how to produce for surplus and strengthening supportive institutions.

Keywords: Teff, Market supply, Two Stage Least Square, Jimma Arjo District

DOI: 10.7176/JESD/10-3-06