Commercialization of teff growers and determinants in west Ethiopia: Double hurdle model analysis
- smallholder farmers,
- teff commercialization,
- double hurdle model,
How to Cite
Copyright (c) 2023 Zelalem Fikadu, Amsalu Mitiku, Guta Regasa Megerssa
This work is licensed under a Creative Commons Attribution 4.0 International License.
Promoting commercialization of agricultural production is a cornerstone of the rural development strategies of Ethiopia and commercialization of smallholder farming is not yet adequate enough to enable farmers be profitable. This study was designed to analyze the smallholder farmers’ teff commercialization in Guduru District, Western Ethiopia. Two-stages sampling procedure was followed to select 154 teff producer farmers from four randomly selected kebeles. An interview schedule was used to collect household survey data during the 2016/2017 farming season. The Household Commercialization Index was used to assess the levels of market participation. Double Hurdle Model was used to identify the key factors that influence farmers’ teff commercialization. The results revealed that about 78% of sampled farmers sold teff during a production year of 2016/2017. The model result indicated that education of household head, family size, land holding size, land allocated to teff, farm output, participation in off/non-farm activities, lagged teff market price, access to market information and cooperative membership were found to significantly influence the probability of participation in teff output market. Intensity of participation in the teff output market was significantly determined by sex of household head, age of household head, family size, family labor and distance to the nearest market. Based on the findings, the study recommends that government should give emphasize on rural education system, family planning program, productivity improving measures, access to communication facilities and institutional services, enhance the female headed households and improving rural roads.
- Abraham, R. 2015. Achieving food security in Ethiopia by promoting productivity of future world food teff: a review. Adv Plants Agric Res, 2(2), 00045. DOI: https://doi.org/10.15406/apar.2015.02.00045
- Abu, B. M. 2013. Market Participation of Smallholder Farmers in the Upper West Region of Ghana, M.Sc Thesis, Department of Agricultural economics and Agribusiness, University of Ghana.
- Adam, B. & Dawit, A. 2015. Farm-level determinants of output commercialization: In haricot bean based farming systems. Ethiopian Journal of Agricultural Sciences, 25(1), 61-69.
- Agricultural Office of Guduru district. 2017. District data recording of animal and crop production.
- Alelign, A. M. 2017. Crop Productivity, Efficiency and Commercialization of Smallholder Farmers in The Highlands of Eastern Ethiopia. PhD Dissertation. Haramaya University, Haramaya, Ethiopia.
- Alliance for a Green Revolution in Africa (AGRA). 2014. Africa agriculture status report: climate change and smallholder agriculture in Sub-Saharan Africa, Nairobi, Kenya.
- Barrett, C.B. 2008. Smallholder market participation: Concepts and evidence from eastern and southern Africa. Food Policy, 33(4): 299–317. DOI: https://doi.org/10.1016/j.foodpol.2007.10.005
- Berhanu, G. & Hoekstra, D. 2007. Cereal Marketing and Household Market Participation in Ethiopia: The Case of Teff, Wheat and Rice. African Association of Agricultural Economists (AAAE). Second International Conference, August 20-22, 2007, Accra, Ghana. pp 243-252.
- Bernard, T., Gabremadhin, E. Z. & Taffesse, A. S. 2007. Smallholders’ commercialization through cooperatives: A diagnostic for Ethiopia (No. 589-2016-39794).
- Burke, W.J. 2009. Fitting and Interpreting Cragg’s Tobit alternative using Stata. The Stata Journal, 9(4), 584 – 592. DOI: https://doi.org/10.1177/1536867X0900900405
- Cragg, J. 1971. Some Statistical Models for limited Dependent Variables with application to the demand for Durable Goods. Econometrica, 39(5): 829-844. DOI: https://doi.org/10.2307/1909582
- CSA (Central Statistical Agency). 2014. Agricultural Sample Survey 2013/2014. Report on area and production of major crops (private peasant holdings, meher season). Addis Ababa.
- CSA (Central Statistical Agency). 2016. Agricultural Sample Survey: Area and Production of Crops, Main Season. Addis Ababa, Ethiopia.
- Delgado, C. L. & Siamwalla, A. 1997. Rural economy and farm income diversification in developing countries. In 1997 Conference, August 10-16, 1997, Sacramento, California (No. 197035). International Association of Agricultural Economists.
- Demeke, L. & Haji, J. 2014. Econometric Analysis of Factors Affecting Market Participation Of Smallholder Farming In Central Ethiopia.
- Demeke, M. & Di Marcantonio, F. 2013. Analysis of incentives and disincentives for teff in Ethiopia. Technical notes series, MAFAP, FAO, Rome.
- Dube, L. & Guveya, E. 2016. Determinants of agriculture commercialization among smallholder farmers in Manicaland and Masvingo Provinces of Zimbabwe. Agricultural Science Research Journal, 6(8), 182-190.
- Efa, G., Degye, G., Tinsae, D. & Tadesse, K. 2016. Determinants of market participation and intensity of marketed surplus of teff producers in Bacho and Dawo districts of Oromia State, Ethiopia. Journal of Agricultural Economics and Development, 5(2), 020-032.
- Eleni, G. & Goggin, I. 2006. Does Ethiopia need a commodity exchange? An integrated approach to market development. Paper presented at the Ethiopian Strategy Support Program 2006 Policy Conference, Addis Ababa.
- FAO. 2014. Socio-economic context and role of agriculture; country fact sheet on food and agriculture policy trends, Ethiopia.
- Gani, B. S. and Adeoti, A. I. 2015. Analysis of market participation and rural poverty among farmers in northern part of Taraba State, Nigeria. Journal of Economics, 2(1), 23-36. DOI: https://doi.org/10.1080/09765239.2011.11884934
- Geoffrey, S. M. 2015. Determinants of Agricultural Commercialization and Its Impacts on Welfare among Smallholder Farmers in Kenya, Ph.D Dissertation, University of Nairobi.
- Govereh, J., T.S, Jayne. & Nyoro, J. 1999. Smallholder commercialization, interlinked markets and food crop productivity: cross country evidence in eastern and southern Africa, the Department of Agricultural Economics and the Department of Economics, Michigan State University.
- Gutu, T. B. 2017. Climate Change Challenges, Smallholders’ Commercialization, and Progress out of Poverty in Ethiopia, Working Paper Series N° 253,African Development Bank, Abidjan, Côte d’Ivoire.
- Hailu, G., Weersink, A. and Minten, B. 2016. Determinants of the Productivity of Teff in Ethiopia. The European Journal of Development Research, 29(4), 866-892. DOI: https://doi.org/10.1057/s41287-016-0065-0
- Jema, H. 2008. Economic Efficiency and Marketing performance of Vegetable Production in the Eastern and Central Parts of Ethiopia. Doctoral Thesis, Swedish University of Agricultural Sciences, Uppsala
- Mahelet, G. F. 2007. Factors affecting commercialization of smallholder farmers in Ethiopia: The Case of North Omo Zone, SNNP region. Paper Presented at the Fifth International Conference on the Ethiopian Economy, June, 7-9, Addis Ababa, Ethiopia.
- Mebrahatom, Medhane. 2014. Determinants of Commercialization of Teff and Its Factor Productivity Outcome: The Case of Tahtay Qoraro Woreda, Northwest Zone of Tigray Regional State, Ethiopia. M.Sc. Thesis. Haramaya University, Haramaya.
- Minten, B., Seneshaw, T., Ermias, E. & Tadesse, K. 2013. Ethiopia’s Value Chains on the Move: The Case of Teff. ESSP II Working Paper 52. International Food Policy Research Institute (IFPRI). Addis Ababa, Ethiopia.
- Minten, B., Tamru, S., Engida, E. & Kuma, T. 2015. Transforming staple food value chains in Africa: The case of teff in Ethiopia. The Journal of Development Studies, 52(5), 627-645. DOI: https://doi.org/10.1080/00220388.2015.1087509
- MoARD (Ministry of Agriculture and Natural Resources). 2010. Ethiopia’s agricultural and Sector Policy and Investment Framework (PIF): 2010-2020, Addis Ababa.
- Musah, A.B., Bonsu, O.A.Y. & Seini, W. 2014. Market participation of smallholder maize farmers in the upper west region of Ghana.African journal of agricultural research, 9(31); 2427-2435. DOI: https://doi.org/10.5897/AJAR2014.8545
- Pender, J. and Dawit, A. 2007. Determinants of smallholder commercialization of food
- crops: Theory and evidence from Ethiopia, IFPRI (International Food Policy Research
- Institute), Discussion Paper No. 75, Washington DC, USA.
- Samuel, G. & Kay, S. 2008. Commercialization of Smallholder Agriculture in Selected Teff-Growing Areas of Ethiopia. Future Agriculture, discussion paper.
- Showaye, Abera. 2016. Determinants of Haricot Bean Market Participation, Misirak
- Badawacho District, Hadiya Zone, SNNNP, Ethiopia.
- Strasberg, P.J., Jayne, T.S., Yamano, T., Nyoro, J.K., Karanja, D.D. & Strauss, J. 1999. Effects of agricultural commercialization on food crop input use and productivity in Kenya. Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Tafere, K., Taffesse, A.S . & Tamru S. 2010. Food Demand Elasticities in Ethiopia: Estimates Using Household Income Consumption Expenditure Survey Data, Addis Ababa, Ethiopia.
- Tekalign, D. 2014. Determinants and Welfare Outcomes of Commercialization of Smallholders’ Farming: The Case of Anchar Woreda, West Hararghe, Ethiopia. M. Sc. Thesis. Haramaya University.
- Tigist, M. 2015. Agricultural Technology Adoption and Market Participation under Learning Externality: Impact Evaluation on Small-scale Agriculture from Rural Ethiopia. Working Paper No. 2015/06.The Maastricht School of Management.
- United Nations Development Programme (UNDP). 2015. Agricultural Growth and Transformation Strengthening; National Capacity through Sustainable Increases in Agricultural Production and Productivity.
- Von Braun, J. & Kennedy, E., 1994. Agricultural Commercialization, Economic Development and Nutrition. The Johns Hopkins University Press, Baltimore and London.
- Worku, I., Dereje, M., Berhane, G., Minten, B. & Taffesse, A. 2014. Teff and its Role in the Agricultural and Food Economy. Ethiopian Research Institute.
- World Bank. 2016. Federal Democratic Republic of Ethiopia. Priorities For Ending Extreme Poverty And Promoting Shared Prosperity Systematic Country Diagnostic.
- Yallew, M. 2016. Smallholders’ commercialization of maize production in Guangua district, northwestern Ethiopia.World Scientific News, 58, 65-83.
- Yemane, M. 1967. Elementary Sampling Theory, Prentice-Hall Inc. Englewood Cliffs, New Jersey, USA.