Abstract

Teff production contributes significantly to the economy in terms of cash income and food security, especially for the smallholder teff producers in rural areas of Ethiopia. This study examined Smallholder Teff producer Farmers Market Participation in Merhabete district with the objectives of identifying factors influencing teff market participation and intensity of participation. Cross sectional data was used for the study. A two stage sampling procedure was used to draw 150 sample producers from four teff producer kebeles and semi-structured questionnaires were used to collect data. Secondary data sources were also used for the study. Double hurdle model was used to identify factors influencing market participation decision and intensity of participation in teff market. The result of the first hurdle confirmed that participation decision was positively affected by frequency of extension contact, land allocated for teff, productivity of teff and teff production experience; whereas family size, and non-farm income influenced teff market participation decision negatively. The second hurdle indicated that intensity of teff market participation positively and significantly affected by land allocated for teff, productivity of teff, teff production experience and numbers of equine owned. The study indicated government and other stakeholders need to strengthen market oriented teff production, agricultural input or service delivery, increasing frequency of extension contacts, land intensification, family planning, and involvement in facilitating transportation services.

Highlights

  • In Ethiopia, in 2016/17 production year, the total grain production reached 290.38 million quintals (Qt), of which cereals production accounted 87.42% [1]

  • The most restrictive Tobit model and double hurdle model were compared, and double hurdle model found appropriate for the data set using model specification test (Tobittest (LR) =2*(llprobit+lltruncreg-lltobit))

  • The second section is about econometric analysis in factors affecting teff market participation and intensity of market participation using double hurdle model

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Summary

Introduction

In Ethiopia, in 2016/17 production year, the total grain production reached 290.38 million quintals (Qt), of which cereals production accounted 87.42% [1]. Cereals including teff, barley, maize, wheat and sorghum are the most important crops for Ethiopian agriculture [2]. The land productivity of these cereals is 24.84% [1]. Cereal accounts for 60, 80, 40 and 60% of rural employment, total cultivated land, a typical household food expenditure and total caloric intake, respectively; its contribution to national income is large [3]. Cereals are the most important diets for Ethiopian families. Teff, wheat, maize and sorghum are the most staple food items. The calorie intake of teff decline as one moves from lower to higher quintiles’ of the wage distribution [4]

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