COMMERCIALIZATION OF SMALLHOLDER TEFF PRODUCERS IN JAMMA DISTRICT, SOUTH WOLLO ZONE, ETHIOPIA

Abstract

Commercialization of smallholder agriculture is an indispensable pathway to increase income of rural peoples. Selling of the crop, especially staple food crop is the most common way of earning cash income in Ethiopia. Among the staple crops, teff has become the essential source of income for farmers and market oriented crop in the country. But there is scanty of literature on commercialization of smallholder teff producers in Ethiopia and no study has been conducted in the study area on this topic. Hence, this study was initiated with the objectives of assessing level of commercialization and investigating determinants of commercialization by smallholder teff producers in Jamma district. A multi-stage sampling technique was employed to select respondents. Both qualitative and quantitative data obtained from primary and secondary sources were used. The primary data were collected from 155 randomly selected respondents, focus group discussants and key informant interviewees whereas secondary data were collected from Jamma office of agriculture. Data was analyzed by Crop Output Market Participation Index (COMPI), inferential statistics, econometric model and qualitative data analysis such as narration and quotation. COMPI was used to analyze level of teff commercialization. Inferential statistics such as t-test and chi-square test were used to see the significant mean/percentage difference between teff market participants and non-participants in terms of the hypothesized continuous and dummy variables respectively. Based on the nature of data, double hurdle model was used to identify factors affecting farmer’s market participation decision in teff output market and the level of their participation. The average level of teff commercialization by sample households measured as ratio of volume of teff sold to volume of teff produced was 37%. The inferential statistics result showed that, there was a significant difference between teff market participants and non-participants in terms of hypothesized variables except household size which was statistically insignificant. Double hurdle result of probit model showed that sex of the household head, literacy status, land allocated to teff, application of chemical fertilizer, row sowing and use of improved teff seed significantly affected market participation decision while the truncation regression model result showed that household size, literacy status, frequency of extension contact, land allotted to teff, application of chemical fertilizer and use of improved teff seed affected level of farmers market participation in teff output. From focus group discussion high input price, lack of input availability and frost were identified as a major hinders of teff production. Hence, overcoming those factors can enhance farmers’ market participation and level of their participation in teff output. For instance, the positive significant effect of agricultural inputs such as chemical fertilizer and improved teff seed on teff commercialization implies the need of intervention to enhance the productivity of teff. Hence, expanding access of those inputs and timely provision of inputs at the affordable price can boost teff productivity and commercialization. It is also necessary to improve literacy status of household head through strengthening adult education program in order to enhance farmers’ market participation and the level of their participation in teff output market.