Abstract:
Spices have played an important role in people’s life as coloring agents, flavoring agents,
preservatives, food additives, and medicine since ancient times. The sub-sector is among the
important cash crops which fit the agricultural commercialization strategy and have key role
in transforming subsistence farmers. Though Ethiopia has enormous potential of spices, the
country is not fully capitalized on it and the contribution of the sub-sector to national
economy is low. This study was conducted to identify determinants of production decision and
commercialization of spice crops among smallholder farmers in Goro district, Bale Zone of
Oromiya. Both primary and secondary data were collected. The primary data were collected
by interview schedule, focus group discussion and key informant interview. Multistage
sampling technique was employed to select respondents. Descriptive, inferential and
econometric data analyses techniques were used. The double hurdle model was used to
estimate factors affecting spice crops production decision and commercialization level of
smallholder farmers. The result showed that 80.7% of total respondents were spice
producers. The average input and output commercialization level of sample respondents was
16.95% and 80.88% respectively. The result showed that among explanatory variables
education level of household head, total family size, total land holding, cooperative
membership and access to improved seed affected spice production decision significantly and
positively whereas livestock holding and distance to market affected it significantly and
negatively. Input side level of commercialization was affected positively and significantly by
participation in off/non-farm activities, access to credit services, cooperative membership and
access to extension services while negatively and significantly affected by family size.
Similarly, total livestock holding, access to credit and total volume of spice produced affected
output side commercialization level significantly and positively whereas farming experience
and distance to market determined it significantly and negatively. Therefore, providing
informal education for farmers, strengthening and capacitating cooperatives, providing
labour-saving farm machineries at affordable price, developing infrastructural facilities and
market linkages, provision of training and awareness creation, provision of improved seed
and improving farmers’ access to credit and to extension services were recommended.
