International Journal of Academic Multidisciplinary Research (IJAMR)
  Year: 2021 | Volume: 5 | Issue: 7 | Page No.: 1-10
Determinants of Commercialization of Smallholder Wheat Farmers: Generalized Double Hurdle Approach
Fekadu Tadesse, Mohammed Aman Bosena Tegegne

Abstract:
Wheat production and productivity in Ethiopia had grown recently but it cannot meet the growing domestic demand, as a result, government imports a large amount of wheat. With the data from 152 smallholder wheat farmers in Minjare Shenkora of Ethiopia, this study identified strategies to promote successful smallholder commercialization. Generalized double hurdle econometric model is used to analyze the data. Result of the study indicates that land size of wheat and mobile ownership have a direct relationship with decision to participate in the market but age and household size have an indirect relationship with decision to participate in the market. The results also show that the coefficients for household size and non-farm income have a direct relationship with level of commercialization, while number of oxen and distance from the farm to the market had an indirect relationship with level of commercialization. Commercialization can be promoted through improving ownership of assets such as land, oxen and increase access to market information.