Determinants of Onion Marketed Among Smallholder Producers in Gemechis District, West Hararghe Zone, Oromia National Regional State of Ethiopia

Abstract

Onion plays a crucial role in enhancing food security and generates income for the smallholder farmers of Ethiopia. This paper was attempted to analyze the determinants of onion supplied to the market in Gemechis District, Oromia Region of Ethiopia. Data for the study were collected from both primary and secondary sources. The primary data were collected by household survey using a pre-tested structured questionnaire and key informant interview using checklists. The data were collected from 176 farmers. The collected data was analyzed using both descriptive statistics and econometric model. The descriptive statistics was used to analyze the socio-economic characteristics of smallholder farmers and econometric model was used to determine the factors affecting onion supplied to the market. The results of two-stage least square regression model showed that quantity of onion supplied to the market was significantly and positively influenced by the endogenous quantity of onion produced. In addition, distance from nearest market, non/off farming income, land allocated and lagged price significantly affect the onion marketed. The study findings suggest the need to improve rural road infrastructure, intensification of land to compensate through cash crop production and efficient utilization of the existing limited farm land and encourage investment on off/non-farm incomes as well as onion production.