The Determinants of smallholders wheat commercialization: The case of Gololcha district of Bale zone, Ethiopia

Abstract

Even though, agriculture plays a crucial role in Ethiopian economy, it suffers from low productivity and
high man to land ratio. Food security and improved welfare of society was a main target of Ethiopian
government. The Ethiopian government used commercialization of agriculture as a means of achieving
food security and welfare of rural poor of countries. This study was aimed at analyzing determinants of
smallholder wheat commercialization in Gololcha district of Bale zone. The objectives of the study aimed
to identify the level of commercialization and analyze major determinants of the volume of wheat marketed/
commercialized/ in the study area. The data were collected both from primary and secondary sources. The
primary data sources for this study were collected from 146 producers and 40 traders. The descriptive
was based on the level of commercialization of sample respondents and it showed that in 2016, 13.7%
were subsistence, 56.2% were semi-commercial and 30.1% were commercial farmers during the survey
period. The result of the multiple linear regressions indicates that among 14 variables, five variables had
shown significant relationship with volume of wheat sold/commercialized/ in the study area. Accordingly,
cash expenditure for farming, access to credit and total wheat produced were found to influence the
volume of wheat sold/commercialized/ positively and significantly and education status and oxen owned
had shown negative and significant relationship with volume of wheat sold/commercialized/. Therefore,
emphasis has to be given on identifying new technology, advice on the use of modern agricultural inputs,
a need for strengthening the existing credit institution and increasing their number, and there is a need for
improvement of market and marketing system.