Analysis of maize commercialization among smallholder farmers: empirical evidence from North Western Ethiopia

Abstract

Commercialization in smallholder farming is very important for low income countries since it has a potential to enhance incomes and play a key role in reducing rural poverty. Even though few studies are conducted about agricultural commercialization in Ethiopia, so far there is no study conducted on maize commercialization among smallholder farmers. Therefore, the aim of this study was to analyze the factors that determine market participation and degree of commercialization among smallholder maize producers in North Western Ethiopia. The study was carried out from October 2019 to December 2020. Data were collected from 385 smallholder maize producers using systematic random sampling. Interview schedule, focus group discussion and key informant interview were used to collect the required data. Tobit model was employed to analyse both market participation and intensity of commercialization. From the analysis commercialization was significantly influenced by education level, livestock holding, frequency of extension contact, training, off/non-farm income activity, quantity of maize and lagged price. Based on the findings, smallholder maize producers should be supported regularly by extension agents in order to increase their practical skills which results enhancement of their market participation and intensity of commercialization.