Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia

Abstract

The history of red pepper in Ethiopia is perhaps the most ancient than the history of any other vegetable product and it has been cultivated in many parts of the country. It is obvious that, commercialization is long run process that farming shifts from subsistence (non commercial) to semi-commercial farming, and then to fully commercialized agriculture. The purpose of this study was to analyze the determinants of commercialization of small holder red pepper farmers Javiethenan district, Ethiopia in 2012 E.C. Particularly, the study investigates the level of commercialization of red pepper production, and factors that affect household participation in the red pepper output market. Two stage sampling technique was applied to select sample kebeles and 214 respondents from five Kebles of the woreda household were selected based on proportionate random sampling technique The descriptive analysis revealed the level of commercialization in the study area on average semi commercial one. Censured Tobit regression was applied to analyze the factors that affect market participation of households’ in red pepper output market. The result revealed that from the total 12 explanatory variables, four variables were statistically significant. Of which, land size (land allocated for red pepper production), market information, extension service and previous year market price of red pepper were positively related with household market participation or quantity of red pepper sold. Thus, emphasis and intervention should be given for households to increase market participation and improve levels of commercialization.