Determinants of Wheat Commercialization among Smallholder Farmers in Debre Elias Woreda, Ethiopia

Abstract

Even though wheat commercialization has got great emphasis, smallholder farmers face challenges to participate in the wheat market. As a result, understanding the intensity of smallholder farmers’ wheat commercialization and factors affecting wheat commercialization has vital importance to tackle the problem. Consequently, this study was undertaken in northwestern Ethiopia to measure smallholder farmers’ wheat commercialization and analyze factors that hamper wheat commercialization in the study area. For this purpose, a systematic sampling technique has been employed to select a total of 154 smallholder wheat producer household heads. A semistructured questionnaire has been used as a principal primary data collection method. Similarly, the output commercialization index and the beta regression model have been employed for data analysis. The result of the study showed that 23.4%, 51.9%, and 24.7% of smallholder farmers were subsistence, semicommercialized, and commercialized, respectively. The result indicated that the majority of smallholder farmers are semicommercial wheat producers. Moreover, the beta regression result indicated that educational status, number of oxen, land size allocated to wheat production, farming experience in wheat production, extension service, and market distance are major factors for smallholder farmer’s wheat commercialization. Therefore, an attempt to increase smallholder farmers’ wheat commercialization should give special priority for significant explanatory variables.