Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia

Addisu Getahun; Gadisa Muleta

doi:doi:10.11648/j.ijebo.20221002.13

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Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia

Addisu Getahun, Gadisa Muleta

Published in International Journal of Economic Behavior and Organization (Volume 10, Issue 2)

Received: 28 February 2022 Accepted: 6 April 2022 Published: 14 April 2022

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Abstract

In Ethiopia wheat is cultivated by more than 4.5 million farmers and covers more than 1.8 million hectares of the cultivated area of land. The objectives of the study were to identify factors affecting smallholders’ wheat market participation and the level of commercialization in the walmara district, central Ethiopia. The study was conducted based on the data obtained from 200 randomly selected sample households. To analyze the collected data obtained from sample households’ descriptive statistics and a Double hurdle econometric model was employed. The descriptive statistics results show that out of the total sample respondents 99 (49.5%) were wheat market participants and 101 (50.5%) were non-participants. The chi²-test result and two-group mean-comparison test show the existence of a statistically significant difference between two groups in some explanatory variables. The mean commercialization level of wheat farmers in the study areas was 37.3%. The results from the probit regression model revealed that the education level of household heads, total livestock owned, total land owned, and access to credit positively and significantly influence the likelihood of wheat market participation whereas household size significantly and negatively affects the likelihood of wheat market participation in the study areas. The Truncated regression model result infers that household size and off/non-farm income negatively and significantly affect the intensity of wheat commercialization whereas the frequency of extension contacts positively and significantly affects the intensity of wheat commercialization. Thus, to enhance smallholder farmers’ market-orientated production and to raise the intensity of wheat commercialization efforts of both Governmental and Non-governmental organizations aiming at availing improved wheat production technology and providing essential training on agricultural production and marketing are essential.

Published in	International Journal of Economic Behavior and Organization (Volume 10, Issue 2)
DOI	10.11648/j.ijebo.20221002.13
Page(s)	57-63
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Commercialization, Wheat, Double Hurdle, Walmara

References

[1]	National Bank of Ethiopia (NBE). 2019. Ethiopia’s overall economic performance. https://nbebank.com/wp-content/uploads/pdf/annual bulletin/report-2018-2019.pdf
[2]	United Nations Development Program (UNDP). 2015. Ethiopia: Key economic and social indicators. UNDP Ethiopia’s Policy Advisory Unit, No. 2. https://www.et.undp.org/content/dam/Ethiopia/docs/Ethiopia-Key%20Economic%20Indicators-202015%20No-2.pdf, accessed 20 July 2019.
[3]	FAO (Food and Agriculture Organization). 2015. Food Balance Sheets. FAOSTAT. Food and Agriculture Organization, Rome.
[4]	Central Statistical Agency (CSA). 2021. Agricultural Sample Survey 2020/2021 (2013 E.C): Report on area and production of major crops, volume-I. Addis Ababa, Ethiopia.
[5]	Agricultural Transformation Agency (ATA). 2017. Annual Report 2015-2016. Addis Ababa, Ethiopia.
[6]	Tesso G. 2017. Climate change challenges, smallholder commercialization and progress out poverty in Ethiopia. Working Paper No. 253, African Development Bank, Abidjan, Cote d’Ivoire.
[7]	Brasesco, F., Asgedom, D., Sommacal, V., Casari G. 2019. Strategic analysis and intervention plan for wheat and wheat products in the Agro-Commodities Procurement Zone of the pilot Integrated Agro-Industrial Park in Central-Eastern Oromia, Ethiopia. Addis Ababa. FAO. 104 pp. Licence: CC BY-NC-SA 3.0 IGO.
[8]	von Braun, J. and Kennedy, E. 1994. Agricultural commercialization, economic development, and nutrition. The Johns Hopkins University Press, Baltimore and London. pp. 11-33.
[9]	Cragg, J. G. 1971. Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods. Econometrica, 39 (5): 829-844.
[10]	Tadele Mamo, Wudineh Getahun, Agajie Tesfaye, Ali Chebil, Tesfaye Solomon, Aden Aw-Hassan, Tolessa Debele and Solomon Assefa. 2017. Analysis of wheat commercialization in Ethiopia: The case of SARD-SC wheat project innovation platform sites. African Journal of Agricultural Research, 12 (10): 841-849.
[11]	Fekadu Tadesse, Mohammed Aman and Bosena Tegegne. 2021. Determinants of Commercialization of Smallholder Wheat Farmers: Generalized Double Hurdle Approach. International Journal of Academic Multidisciplinary Research (IJAMR), Vol. 5 Issue 7, July - 2021, Pages: 1-10.
[12]	Birara Endalew, Mezegebu Aynalem, Fenta Assefa, and Zemen Ayalew. 2020. Determinants of Wheat Commercialization among Smallholder Farmers in Debre Elias Woreda, Ethiopia. Advances in Agriculture, Vol. 2020, Article ID 2195823, 12 pages https://doi.org/10.1155/2020/2195823
[13]	Efa Gobena, Degye Goshu, Tinsae Demisie and Tadesse Kenea. 2016. Determinants of market participation and intensity of marketed surplus of tef producers in Bacho and Dawo districts of Oromia, Ethiopia. Journal of Agricultural Economics and Development, 5 (2): 20-32.
[14]	Dubale Abate, Fikadu Mitiku, Rijalu Negash. Determinants of Market Orientation of Smallholder Wheat Farmers in Northern Ethiopia. American Journal of Science, Engineering and Technology. Vol. 5, No. 3, 2020, pp. 123-130. doi: 10.11648/j.ajset.20200503.11.

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APA Style

Addisu Getahun, Gadisa Muleta. (2022). Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia. International Journal of Economic Behavior and Organization, 10(2), 57-63. https://doi.org/10.11648/j.ijebo.20221002.13

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ACS Style

Addisu Getahun; Gadisa Muleta. Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia. Int. J. Econ. Behav. Organ. 2022, 10(2), 57-63. doi: 10.11648/j.ijebo.20221002.13

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AMA Style

Addisu Getahun, Gadisa Muleta. Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia. Int J Econ Behav Organ. 2022;10(2):57-63. doi: 10.11648/j.ijebo.20221002.13

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@article{10.11648/j.ijebo.20221002.13,
  author = {Addisu Getahun and Gadisa Muleta},
  title = {Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {10},
  number = {2},
  pages = {57-63},
  doi = {10.11648/j.ijebo.20221002.13},
  url = {https://doi.org/10.11648/j.ijebo.20221002.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20221002.13},
  abstract = {In Ethiopia wheat is cultivated by more than 4.5 million farmers and covers more than 1.8 million hectares of the cultivated area of land. The objectives of the study were to identify factors affecting smallholders’ wheat market participation and the level of commercialization in the walmara district, central Ethiopia. The study was conducted based on the data obtained from 200 randomly selected sample households. To analyze the collected data obtained from sample households’ descriptive statistics and a Double hurdle econometric model was employed. The descriptive statistics results show that out of the total sample respondents 99 (49.5%) were wheat market participants and 101 (50.5%) were non-participants. The chi2-test result and two-group mean-comparison test show the existence of a statistically significant difference between two groups in some explanatory variables. The mean commercialization level of wheat farmers in the study areas was 37.3%. The results from the probit regression model revealed that the education level of household heads, total livestock owned, total land owned, and access to credit positively and significantly influence the likelihood of wheat market participation whereas household size significantly and negatively affects the likelihood of wheat market participation in the study areas. The Truncated regression model result infers that household size and off/non-farm income negatively and significantly affect the intensity of wheat commercialization whereas the frequency of extension contacts positively and significantly affects the intensity of wheat commercialization. Thus, to enhance smallholder farmers’ market-orientated production and to raise the intensity of wheat commercialization efforts of both Governmental and Non-governmental organizations aiming at availing improved wheat production technology and providing essential training on agricultural production and marketing are essential.},
 year = {2022}
}

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TY  - JOUR
T1  - Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia
AU  - Addisu Getahun
AU  - Gadisa Muleta
Y1  - 2022/04/14
PY  - 2022
N1  - https://doi.org/10.11648/j.ijebo.20221002.13
DO  - 10.11648/j.ijebo.20221002.13
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 57
EP  - 63
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20221002.13
AB  - In Ethiopia wheat is cultivated by more than 4.5 million farmers and covers more than 1.8 million hectares of the cultivated area of land. The objectives of the study were to identify factors affecting smallholders’ wheat market participation and the level of commercialization in the walmara district, central Ethiopia. The study was conducted based on the data obtained from 200 randomly selected sample households. To analyze the collected data obtained from sample households’ descriptive statistics and a Double hurdle econometric model was employed. The descriptive statistics results show that out of the total sample respondents 99 (49.5%) were wheat market participants and 101 (50.5%) were non-participants. The chi2-test result and two-group mean-comparison test show the existence of a statistically significant difference between two groups in some explanatory variables. The mean commercialization level of wheat farmers in the study areas was 37.3%. The results from the probit regression model revealed that the education level of household heads, total livestock owned, total land owned, and access to credit positively and significantly influence the likelihood of wheat market participation whereas household size significantly and negatively affects the likelihood of wheat market participation in the study areas. The Truncated regression model result infers that household size and off/non-farm income negatively and significantly affect the intensity of wheat commercialization whereas the frequency of extension contacts positively and significantly affects the intensity of wheat commercialization. Thus, to enhance smallholder farmers’ market-orientated production and to raise the intensity of wheat commercialization efforts of both Governmental and Non-governmental organizations aiming at availing improved wheat production technology and providing essential training on agricultural production and marketing are essential.
VL  - 10
IS  - 2
ER  -

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Author Information

Addisu Getahun

Ethiopian Institute of Agricultural Research (EIAR), Holeta Agricultural Research Center, Holeta, Ethiopia
Gadisa Muleta

Ethiopian Institute of Agricultural Research (EIAR), National Agricultural Biotechnology Research Center (NABRC), Holeta, Ethiopia

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APA Style

Addisu Getahun, Gadisa Muleta. (2022). Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia. International Journal of Economic Behavior and Organization, 10(2), 57-63. https://doi.org/10.11648/j.ijebo.20221002.13

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ACS Style

Addisu Getahun; Gadisa Muleta. Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia. Int. J. Econ. Behav. Organ. 2022, 10(2), 57-63. doi: 10.11648/j.ijebo.20221002.13

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AMA Style

Addisu Getahun, Gadisa Muleta. Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia. Int J Econ Behav Organ. 2022;10(2):57-63. doi: 10.11648/j.ijebo.20221002.13

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@article{10.11648/j.ijebo.20221002.13,
  author = {Addisu Getahun and Gadisa Muleta},
  title = {Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {10},
  number = {2},
  pages = {57-63},
  doi = {10.11648/j.ijebo.20221002.13},
  url = {https://doi.org/10.11648/j.ijebo.20221002.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20221002.13},
  abstract = {In Ethiopia wheat is cultivated by more than 4.5 million farmers and covers more than 1.8 million hectares of the cultivated area of land. The objectives of the study were to identify factors affecting smallholders’ wheat market participation and the level of commercialization in the walmara district, central Ethiopia. The study was conducted based on the data obtained from 200 randomly selected sample households. To analyze the collected data obtained from sample households’ descriptive statistics and a Double hurdle econometric model was employed. The descriptive statistics results show that out of the total sample respondents 99 (49.5%) were wheat market participants and 101 (50.5%) were non-participants. The chi2-test result and two-group mean-comparison test show the existence of a statistically significant difference between two groups in some explanatory variables. The mean commercialization level of wheat farmers in the study areas was 37.3%. The results from the probit regression model revealed that the education level of household heads, total livestock owned, total land owned, and access to credit positively and significantly influence the likelihood of wheat market participation whereas household size significantly and negatively affects the likelihood of wheat market participation in the study areas. The Truncated regression model result infers that household size and off/non-farm income negatively and significantly affect the intensity of wheat commercialization whereas the frequency of extension contacts positively and significantly affects the intensity of wheat commercialization. Thus, to enhance smallholder farmers’ market-orientated production and to raise the intensity of wheat commercialization efforts of both Governmental and Non-governmental organizations aiming at availing improved wheat production technology and providing essential training on agricultural production and marketing are essential.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Wheat Commercialization and Its Determinant Factors in Walmara, Central Ethiopia
AU  - Addisu Getahun
AU  - Gadisa Muleta
Y1  - 2022/04/14
PY  - 2022
N1  - https://doi.org/10.11648/j.ijebo.20221002.13
DO  - 10.11648/j.ijebo.20221002.13
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 57
EP  - 63
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20221002.13
AB  - In Ethiopia wheat is cultivated by more than 4.5 million farmers and covers more than 1.8 million hectares of the cultivated area of land. The objectives of the study were to identify factors affecting smallholders’ wheat market participation and the level of commercialization in the walmara district, central Ethiopia. The study was conducted based on the data obtained from 200 randomly selected sample households. To analyze the collected data obtained from sample households’ descriptive statistics and a Double hurdle econometric model was employed. The descriptive statistics results show that out of the total sample respondents 99 (49.5%) were wheat market participants and 101 (50.5%) were non-participants. The chi2-test result and two-group mean-comparison test show the existence of a statistically significant difference between two groups in some explanatory variables. The mean commercialization level of wheat farmers in the study areas was 37.3%. The results from the probit regression model revealed that the education level of household heads, total livestock owned, total land owned, and access to credit positively and significantly influence the likelihood of wheat market participation whereas household size significantly and negatively affects the likelihood of wheat market participation in the study areas. The Truncated regression model result infers that household size and off/non-farm income negatively and significantly affect the intensity of wheat commercialization whereas the frequency of extension contacts positively and significantly affects the intensity of wheat commercialization. Thus, to enhance smallholder farmers’ market-orientated production and to raise the intensity of wheat commercialization efforts of both Governmental and Non-governmental organizations aiming at availing improved wheat production technology and providing essential training on agricultural production and marketing are essential.
VL  - 10
IS  - 2
ER  -

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