Abstract:
Cotton is an important cash crop that contributes significantly to the agricultural and
industrial development of the Ethiopian economy, providing livelihood to hundreds and
thousands of people engaged in its farming, processing, and marketing. However, lack of well organized commercialization of cotton discourages the producers to participate and enhance
the level of production and productivity. The purpose of this study was to find out the factors
affecting smallholder cotton commercialization in Arbaminch Zuriya district, Gamo zone,
Ethiopia. A cross-sectional research design was employed. For the selection of 195 cotton
producer farmers, a multi-stage sampling procedure was used. Both primary and secondary
data were used in this study. Data were gathered using key informants interviews, focus group
discussion, and a structured and semi-structured interview schedule. To explain the
characteristics of the sampled respondents, were used descriptive statistics. The intensity of
household commercialization was used to assess the levels of cotton market participation; the
double hurdle model was used to identify the key factors influencing cotton commercialization.
Opportunities for production and constraints are also discussed using narration and
interpretations. The findings revealed that 60.77% of sampled farmers sold cotton during the
2020/2021 production year. The probit part of the double hurdle model regression analysis
revealed that literacy status, cotton land allocation, distance to the nearest market, quantity of
cotton produced, households perception of lagged cotton price, and frequency of extension
contact had a significant influence on households' participation decision in cotton
commercialization. The truncated regression part of the output of the double hurdle model
revealed that land allocated to cotton, frequency of extension contact, quantity of cotton
produced, and households perception lagged price of cotton had significant influence on the
intensity of cotton commercialization. There are different constraints in cotton
commercialization such as limited access to improved seed varieties, pest problems, price
instability, and low selling price of seed cotton. Conducive agro-ecology and the
establishment of integrated agro-industrial parks were opportunities in the study area.
Therefore, attention should be given by the Arbaminch Zuriya District office of agriculture
and rural development to major constraints that affect cotton farming activities to improve
and sustain the positive impact of cotton production.
