Factors Affecting Market Supply of Wheat by Smallholder Farmers in Ethiopia

Abstract

This study was initiated to achieve specific objective as to evaluate intensity of market supply of wheat produce in Mao-Komo district of Benishangul-Gumuz, Ethiopia. This study used cross-sectional data collected from sample of 174 farm households selected through two-stage stratified random sampling techniques. Descriptive statistics and econometric models were used to analyze the data. Tobit model was applied to analyze intensity of market supply of wheat produce. The Tobit regression results revealed that educational level of household heads, land holding size, distance to main road, and lagged price of high yielding wheat produce were positively and significantly determining the intensity of market supply of wheat produce. However, sex of household head and distance from market center had negative and significant influence on intensity of market supply of high yielding wheat produce. The findings suggest that the government and stakeholders should need to focus on improving farm land productivity, strengthening the provision of education and improving infrastructures in the study area.

Keywords: High yielding wheat produce, Market supply, Smallholder, Tobit