Analysis of Maize Commercialization Among Smallholder Farmers: In the Case of Gog Districts, Anywaa Zone, Ethiopia

Abstract

Agricultural commercialization is a process of transformation from subsistence farming system to market oriented production system. Motivating smallholder farmers to produce further than their consumption and empowering them to be profit oriented should be given priority in order to foster the economic growth in developing countries where agriculture is the pillar of the economy and smallholder farmers are the largest section of the country like Ethiopia. Nevertheless, due to a number of reasons smallholder farmers’ level of commercialization is very low and insignificant. There are only few studies conducted about agricultural commercialization in Ethiopia but the studies are not focused to the study area. Consequently, the aimed to analyze the factors that determine market participation and degree of commercialization by smallholder maize producers in Gog district, Anywaa Zone, Ethiopia. Data were collected from 385 smallholder maize producers in three districts where maize is produced potentially through multistage sampling method. Furthermore, interview schedule, focus group discussion and key informant interview were used to gather the required primary data. In order to attain the study aims, Tobit model was employed to analyses both market participation and intensity of commercialization. From the analysis education level, livestock holding, frequency of extension contact, training, off/non-farm income activity, quantity of maize and lagged price were found to have significant effect on market participation while intensity of commercialization was significantly influenced by education level, livestock holding, training, frequency of extension contact, off/non-farm activity, quantity of maize produced and lagged price. To conclude based on the results, smallholder maize producers should be supported frequently by extension agents in order to upsurge their practical skills which results enhancement of their market participation and intensity of commercialization. Keywords: Gog, Commercialization, Maize, Smallholder producers, Tobit model DOI: 10.7176/JESD/12-21-03 Publication date: November 30 th 2021