DETERMINANTS OF FARMERS’ PARTICIPATION AND INTENSITY OF PARTICIPATION IN GROUNDNUT COMMERCIALIZATION: EVIDENCE FROM BABILE DISTRICT, OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

This study was conducted in Babile district to examine the determinants of farmers’ groundnut commercialization and to assess opportunities and constraints in groundnut commercialization. Cross sectional research design was used. Two stage random sampling procedures were used for the selection of 160 representative sample households. Using proportional probability sampling number of sample size was determined from each 4 representative kebele after Yamane formula used to determine the total sample size. Key informants, focus groups and semi- structured interview schedule were used for gathering primary data. Descriptive statistics, household commercialization intensity and double hurdle model were used for the analysis of quantitative data while narration and interpretation were used for qualitative data analysis. The probit model result reveals that age, education level, distance to the nearest market, land size, access to market information and non/off-farm income were significantly influence households participation decision in groundnut commercialization while the truncation model result disclose that age, education level, household size, land size and frequency of extension contact were significantly influence the sample households’ groundnut commercialization intensity. Driving factors existing in the study area such as conducive agro-ecology, access to market information, locational trade mark of Babile groundnut identified as opportunities whereas disease, lack of improved varieties of seeds and price instability are considered as the constraints which hindering farmers not to boost their groundnut production for commercialization. The findings have an implication for all the concerned body and they should have to develop strategies to address the aforementioned factors in order to improve smallholder farmers’ groundnut commercialization