Determinants Of Market Participation Of Teff Producers In The Case Of Toke Kutaye District, West Shewa Zone, Oromia Region, Ethiopia

Abstract

Agricultural marketing is a very important factor in economic development and lack of a well-functioning agricultural market and marketing system severely hinders the increase of social welfare, income distribution, and food security of developing countries. The overall objective of this study was to examined smallholder teff producer market participation in Toke Kutaye district Oromia region, Ethiopia. Multi-stage sampling procedure was followed to select Districts, kebeles and households. From selected 193 sample respondents were selected using simple random sampling from the district. Descriptive statistics and econometric model were selected to analyses. Binary probit model was used to identify factors influencing market participation decision of teff market. The Descriptive statistics result indicated that variables such as the sex of the household, family size, land allocated for teff production, access to credit, farm experience, distance to the nearest market, and frequency of extension contacts influenced teff market participation decision. The probit model confirmed that participation decision was positively affected by sex of household, family size, land allocated for teff production, access to credit, farm experience, distance to nearest market and frequency of extension contact influenced teff market participation decision negatively. Therefore, the study highlighted the need for government and stakeholders to focus on strengthening market-oriented teff production, improving agricultural input and service delivery, increasing extension contacts, land intensification, promoting family planning, and facilitating transportation services to enhance smallholders' participation in the teff market