Determinants of Onion Output Market Participation Level Among Smallholder Farming Households: The Case of Fentale District, Oromia Regional State, Ethiopia

Tesfaye Tura

doi:10.7176/jmcr/82-01

Abstract

This study focuses on analysing the factors affecting the decision and the level of onion output market participation among smallholder onion producers at Fentale district . Samples of 180 onion producer households were selected through multi-stage random sampling from three kebeles of Fentale district. The study employed both quantitative and qualitative methods of data collection. Quantitative data collected from sample households were analysed by descriptive and double hurdle model while qualitative analysed by narration. The result from the 1 st phase of the double hurdle, probit regression, revealed that sex of household head, onion farming experience, total farm holding, farm allocated for onion production, credit access, access to extension and market information were statistically significant and influence households onion market participation decision. The finding from the 2 nd phase of the hurdle model, truncated regression, show the age of household head, sex of household head, farm allocated to onion, irrigation access, number of oxen owned and distance to the nearest market were variables influencing smallholder onion market participation level and statistically significant. Finally it is recommended that the Government organizations and other responsible bodies should ensure the equal distribution of irrigation water for both upper and lower streams, strengthen inputs supply chains, and strengthen producers’ cooperation. Keywords: Double hurdle, Fentale, Market Participation , Onion, Smallholders DOI: 10.7176/JMCR/82-01 Publication date: September 30 th 2021

Highlights

Agriculture is the main economic pillars of the Ethiopian economy and the overall economic growth of the country is highly dependent on the success of the agriculture sector
The results show the minimum of 0 hectare i.e. No farm land allocated for onion production during survey year and 3 hectare of maximum allocation
Determinants of onion market participation decision among smallholders farming households The probit regression model result show that the function of the participation decision in onion output was highly significant at less than 1% significance level (Prob > chi2 = 0.0000)

Summary

Introduction

Agriculture is the main economic pillars of the Ethiopian economy and the overall economic growth of the country is highly dependent on the success of the agriculture sector. The sector represents 42.7% of the GDP of the country and generates about 90% of the foreign exchange earnings of the country. It supplies over 70% of raw materials for domestic industries and about 80% of the population gains their livelihood directly or indirectly from agricultural production (Alemu & Berhanu, 2018; Nigussie et al, 2015). Being one of the emerging fast growing economies in the world requires maximizing the potential of the agricultural sector and necessarily increasing the level of smallholders' agricultural productivity which is existed at the base level due to several socio-economic bottlenecks (Bedaso et al, 2012; Etafa, 2016). Poor access to inputs, poor irrigation system, poor technology, lack of adequate market price, and inadequate linkage between market actors and smallholders’ farmers contribute to the low level of agricultural productivity in developing countries in general and Ethiopia in particular (Tilaye, 2010)

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Conclusion