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.