DETERMINANTS OF SMALLHOLDER FARMERS’ COMMERCIALIZATION OF POTATO AND HEAD CABBAGE IN KOFALE DISTRICT, WEST ARSI ZONE, OROMIA REGIONAL STATE, ETHIOPIA

Abstract

Even though agricultural commercialization is considered as the main engine to contribute to economic growth of the country and to transform the traditional agriculture of farmers the extent of commercialization is still not as expected in Ethiopia as evidenced from different literature particularly there are no adequate studies on the determinants of potato and head cabbage commercialization in the study area. This study was aimed to identify status and determinants of farmers’ commercialization decision and level of potato and head cabbage commercialization. A two stage random sampling procedure was used to select 150 sample households potato and head cabbage producer. Descriptive statistics and econometric model were used to analyze the data. About 66.67% and 80% of sample farm households were potato and head cabbage commercialized respectively. Double hurdle model was used in the econometric analysis. In first hurdle result of probit model showed that, land allocated for potato and head cabbage production, frequency of extension contact and access to market information influenced potato and head cabbage producers commercialization decision positively and significantly. Livestock holding affected potato commercialization decision positively while distance to all weather roads affected potato commercialization decision significantly and negatively. Participation in social organizations influenced sample households commercialization decision head cabbage significantly and positively while livestock holding influenced it negatively. In the second hurdle, family size and distance to market influenced intensity of potato commercialization negatively and significantly while participation in social organization and land allocated for potato production affected it positively. Frequency of extension contact and access to market information affected intensity of head cabbage commercialization positively and significantly while dependency ratio influenced it significantly and negatively. The study indicated that the government, stakeholders and concerned bodies need to focus on facilitating farmers to participate in social organization, strengthen family planning through health extension worker, improving livestock production, strengthen extension service and disseminate market information to producers so as to improve potato and head cabbage commercialization and intensity of commercialization