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Determinants of Smallholder Farmers Participation Decision in Potato Market in Kofele District, Oromia Region, Ethiopia

Received: 1 July 2016     Accepted: 11 July 2016     Published: 28 July 2016
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Abstract

Market participation plays a crucial role in generating better income and enhancing welfare of smallholder farmers and thus contributes to alleviate poverty. This study investigated the determinants of smallholder farmers’ participation decision in potato market in Kofele district with the objective of identifying and analyzing factors affecting farmers’ decision in supplying their potato products to market. A multi-stage sampling procedure was used to select sample households for data collection. A total of 120 potato producer households were randomly selected from the district and semi-structured questionnaires were used to collect data. The descriptive statistics and probit model were applied to analyze factors affecting smallholder farmers’ market participation decision in potato market. The findings demonstrate that level of education, livestock owned, quantity of potato harvested, potato market price, and access to market information positively affect farmers participation decision whereas participation in off/non-farm activities were negatively affect farmers decision to participate in potato output market. This study suggested that a policy that improves determinants of market participation is recommended to enhance farmers’ market participation in potato output market.

Published in International Journal of Agricultural Economics (Volume 1, Issue 2)
DOI 10.11648/j.ijae.20160102.14
Page(s) 40-44
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), 2016. Published by Science Publishing Group

Keywords

Smallholder Farmers, Market Participation Decision, Potato, Probit Model, Kofele District

References
[1] MoFED (Ministry of Finance and Economic Development), Growth and Transformation Plan. Annual Progress Report for Fiscal Year 2011/12. Addis Ababa, Ethiopia, September, 2013.
[2] M. Makhura, J. Kirsten, C. Delgado, Transaction Costs and Smallholder Participation in the Maize Market in the Northern Province of South Africa. Seventh Eastern and Southern Africa Regional Maize Conference, Pretoria, South Africa, 2001.
[3] B. Jari, C. G. Fraser, An Analysis of Institutional and Technical Factors Influencing Agricultural Marketing amongst Smallholder Farmers in the Kat River Valley, Eastern Cape, South Africa. Afric. J. Agri. Res., Vol. 4, pp. 1129-1137, 2009.
[4] K. Sharp, S Gebreselassie, Commercialisation of farming in Ethiopia: Which pathways? Ethio. J. Econ., Vol. 16, pp. 43-56, 2007.
[5] S. B. Gani, I. A. Adeoti, Analysis of Market Participation and Rural Poverty among Farmers in Northern Part of Taraba State, Nigeria. Department of Agricultural Economics, University of Ibadan, Ibadan. Oyo State, Nigeria, J. Econ., Vol. 2, pp. 23-36, 2011.
[6] G. Endale, W. Gebremedhin, L. Berga, Potato Seed Management. In Root and tuber crops: Ethiopian Institute of Agricultural Research, Addis Ababa, Ethiopia. The untapped resources, ed. W. Gebremedhin, G. Endale, and B. Lemaga, pp. 53–78, 2008.
[7] T. Agajie, L. Berga, J. A. Mwakasendo, Z. Nzohabonayoz, J. Mutware, K. Y. Wanda, P. M. Kinyae, O. Ortiz, C. Crissman, G. Thiele, Markets for Fresh and Frozen Potato Chips in the ASARECA Region and the Potential for Regional Trade: International Potato Center (CIP), Lima, Peru, pp. 44, 2010.
[8] FAO (Food and Agriculture Organization), Strengthening potato value chains. Technical and policy options for developing countries. The Food and Agriculture Organization of the United Nations and the Common Fund for Commodities, 2010.
[9] E. Bezabih, N. Mengistu, Potato Value Chain Analysis and Development in Ethiopia; Case of Tigray and SNNP Regions. Addis Ababa, Ethiopia, pp. 25-26, October, 2011.
[10] CSA (Central Statistical Agency), Population Projection of Ethiopia for all Regions at Wereda level from 2014 – 2017. Addis Ababa, Ethiopia, 2014.
[11] DOA (District Office of Agriculture), Reports of Kofale District Office of Agriculture, Kofele, Ethiopia, 2013, unpublished.
[12] T. Yamane, Statistics: An Introductory Analysis, 2nd Ed., Harper and Row, New York, 1967, pp. 919.
[13] T. Aman, B. Adam, Z. Lemma, Determinants of smallholder commercialization of horticultural crops in Gemechis District, West Hararghe Zone, Ethiopia. Afric J Agri Res., Vol. 9, pp. 310-319, January, 2014.
[14] A. Solomon, S. Bekele, S. Fantahun, G. Muricho, A. Tsedeke, F. Setotaw, Socio-economic Assessment of Legume Production, Farmer Technology Choice, Market Linkages, Institutions and Poverty in Rural Ethiopia. Nairobi, Kenya, 2010.
[15] R. G. Sigei, H. Bett, L. Kibet, Determinants of Market Participation among Small-scale Pineapple Farmers in Kericho County, Kenya. Egerton University, Kenya, May, 2014.
[16] C. Sebatta, J. Mugisha, E. Katungi, A. Kashaaru, H. Kyomugisha, Smallholder Farmers’ Decision and Level of Participation in the Potato Market in Uganda, Mod. Econ., 2014.
Cite This Article
  • APA Style

    Yassin Esmael Ahmed, Adam Bekele Girma, Mengistu Ketema Aredo. (2016). Determinants of Smallholder Farmers Participation Decision in Potato Market in Kofele District, Oromia Region, Ethiopia. International Journal of Agricultural Economics, 1(2), 40-44. https://doi.org/10.11648/j.ijae.20160102.14

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    ACS Style

    Yassin Esmael Ahmed; Adam Bekele Girma; Mengistu Ketema Aredo. Determinants of Smallholder Farmers Participation Decision in Potato Market in Kofele District, Oromia Region, Ethiopia. Int. J. Agric. Econ. 2016, 1(2), 40-44. doi: 10.11648/j.ijae.20160102.14

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    AMA Style

    Yassin Esmael Ahmed, Adam Bekele Girma, Mengistu Ketema Aredo. Determinants of Smallholder Farmers Participation Decision in Potato Market in Kofele District, Oromia Region, Ethiopia. Int J Agric Econ. 2016;1(2):40-44. doi: 10.11648/j.ijae.20160102.14

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  • @article{10.11648/j.ijae.20160102.14,
      author = {Yassin Esmael Ahmed and Adam Bekele Girma and Mengistu Ketema Aredo},
      title = {Determinants of Smallholder Farmers Participation Decision in Potato Market in Kofele District, Oromia Region, Ethiopia},
      journal = {International Journal of Agricultural Economics},
      volume = {1},
      number = {2},
      pages = {40-44},
      doi = {10.11648/j.ijae.20160102.14},
      url = {https://doi.org/10.11648/j.ijae.20160102.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20160102.14},
      abstract = {Market participation plays a crucial role in generating better income and enhancing welfare of smallholder farmers and thus contributes to alleviate poverty. This study investigated the determinants of smallholder farmers’ participation decision in potato market in Kofele district with the objective of identifying and analyzing factors affecting farmers’ decision in supplying their potato products to market. A multi-stage sampling procedure was used to select sample households for data collection. A total of 120 potato producer households were randomly selected from the district and semi-structured questionnaires were used to collect data. The descriptive statistics and probit model were applied to analyze factors affecting smallholder farmers’ market participation decision in potato market. The findings demonstrate that level of education, livestock owned, quantity of potato harvested, potato market price, and access to market information positively affect farmers participation decision whereas participation in off/non-farm activities were negatively affect farmers decision to participate in potato output market. This study suggested that a policy that improves determinants of market participation is recommended to enhance farmers’ market participation in potato output market.},
     year = {2016}
    }
    

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    T1  - Determinants of Smallholder Farmers Participation Decision in Potato Market in Kofele District, Oromia Region, Ethiopia
    AU  - Yassin Esmael Ahmed
    AU  - Adam Bekele Girma
    AU  - Mengistu Ketema Aredo
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    DO  - 10.11648/j.ijae.20160102.14
    T2  - International Journal of Agricultural Economics
    JF  - International Journal of Agricultural Economics
    JO  - International Journal of Agricultural Economics
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    EP  - 44
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    UR  - https://doi.org/10.11648/j.ijae.20160102.14
    AB  - Market participation plays a crucial role in generating better income and enhancing welfare of smallholder farmers and thus contributes to alleviate poverty. This study investigated the determinants of smallholder farmers’ participation decision in potato market in Kofele district with the objective of identifying and analyzing factors affecting farmers’ decision in supplying their potato products to market. A multi-stage sampling procedure was used to select sample households for data collection. A total of 120 potato producer households were randomly selected from the district and semi-structured questionnaires were used to collect data. The descriptive statistics and probit model were applied to analyze factors affecting smallholder farmers’ market participation decision in potato market. The findings demonstrate that level of education, livestock owned, quantity of potato harvested, potato market price, and access to market information positively affect farmers participation decision whereas participation in off/non-farm activities were negatively affect farmers decision to participate in potato output market. This study suggested that a policy that improves determinants of market participation is recommended to enhance farmers’ market participation in potato output market.
    VL  - 1
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Author Information
  • Department of Agricultural Economics, Adami Tulu Agricultural Research Centre, Adami Tulu, Ethiopia

  • Department of Agricultural Economics, Ethiopian Institute of Agricultural Research, Adama, Ethiopia

  • Department of Agricultural Economics, Haramaya University, Haramaya, Ethiopia

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