DETERMINANTS OF THE PARTICIPATION DECISION OF SMALLHOLDER FARMERS IN POTATO SALES IN KOFELE DISTRICT, OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

Market access plays an essential role in ensuring better income and enhancing welfare of smallholder farmers and thus contributes to alleviate poverty. This is even more so in the Ethiopian context where crop production plays an essential role in the economy. This study investigated the determinants of smallholder farmers participation decision, which sequentially made, in potato sales in Kofele district, Ethiopia with the objective of identifying and analyzing factors affecting potato growers decision in supplying their potato products to market. A multi-stage sampling procedure was used to select sample households for data collection. A total of 120 potato producer households were randomly selected from the district using probability proportional to size. Semi-structured questionnaires were used to collect data from potato producer households through interview. The descriptive statistics and double hurdle model were used to analyze factors affecting smallholder farmers market participation decision and the level of participation in potato sales. The findings demonstrate that education, livestock owned, quantity of potato harvested, potato market price, and access to market information positively affect farmers participation decision whereas participation in off/non-farm activity negatively affects farmers decision to participate in potato output market. On the other hand, livestock owned and access to market information affect farmers extent of potato sales positively whereas family size and participation in off/non-farm activity affects the extent of potato sales negatively. The study suggested that farmers participation decisions are affected by abovementioned factors and policies addressing each decision process and cross-cutting issues are required to improve farmers participation in potato output market.