Abstract
Transforming the subsistence-oriented production system into a market-oriented production system as a way to increase the smallholder farmer’s income and reduce rural poverty has been in the policy spotlight of many developing countries, including Ethiopia. However, there are no adequate studies in Ethiopia, particularly, in study area of West Hararghe zone that focusing on the determinants of smallholder commercialization in horticultural crops. This study has identified household level determinants of the output side commercialization decision and level of commercialization in horticultural crops in Gemechis district, West Hararghe zone, Oromia National Regional State of Ethiopia. The study used cross-sectional data obtained from a sample of 160 smallholder horticultural farmers selected randomly from four peasant associations in the district. A double hurdle model was applied to analyze the determinants of the commercialization decision and level of commercialization. In first hurdle, the result of Probit Regression Model revealed that, gender, distance to the nearest market, and cultivated land played a significant role in smallholder commercialization decision. In the second hurdle, the result of Truncated Regression Model revealed that, household education, household size, access to irrigation, cultivated land, livestock, and distance to the nearest market were the key determinants of the level of commercialization. Synthesis of double hurdle model result showed that farm size and distance to the nearest market were cross-cutting determinants of smallholder horticultural crops commercialization. The study recommends the need for designing appropriate intervention mechanisms focusing on the abovementioned factors so as to improve the performance of horticultural crops commercialization. Key words: Smallholder, commercialization, market participation, double hurdle.
Highlights
Ethiopia is one of the Sub-Saharan Africa countries which liberalized their economies and developed poverty reduction strategies that underpin market-led strategies for broad based agricultural development and economic growth
Transforming the subsistence-oriented production system into a market-oriented production system as a way to increase the smallholder farmer’s income and reduce rural poverty has been in the policy spotlight of many developing countries, including Ethiopia
This study has identified household level determinants of the output side commercialization decision and level of commercialization in horticultural crops in Gemechis district, West Hararghe zone, Oromia National Regional State of Ethiopia
Summary
Ethiopia is one of the Sub-Saharan Africa countries which liberalized their economies and developed poverty reduction strategies that underpin market-led strategies for broad based agricultural development and economic growth. In Ethiopia the agricultural sector contributes about 43% of the Gross Domestic Product (GDP), 80% of employment, and 90% of export (Demese et al, 2010). The governments of developing countries have sought to promote diversification of production and exports away from the traditional commodities in order to accelerate economic growth, expand employment opportunities, and reduce rural poverty (Solomon et al, 2010). In Ethiopia, the current policy environment and in its Growth and Transformation Plan (GTP) launched for the period 2010 and 2011 up to 2014 to 2015, the Ethiopian Government attempts to promote production and marketing of high value agricultural products with a view to increase competitiveness in domestic, regional, and international markets
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
