Determinants of potato market participation among smallholder farmers in Mida Kegn, Ethiopia

Figures & data

Figure 1. Map of the study area.

Source: Adopted and manipulated from Ethiopian map: GIS, 2023.

Table 1. Sampling frame and sample size

Name of sampled kebeles	Total potato producers household (HH)	Proportion sampled HH (%)	Number of sampled HH heads (number)
Baro Bidaru	744	25.9	39
Damu Wange	762	26.6	40
Tuye Goda Chukala	628	21.9	33
Lalise Gosu Halelu	736	25.6	38
Total	2,870		150

Source: DOANR and Own Computation, 2020.

Table 2. Summary of variables’ description and hypothesis

Variable code	Description	Type	Measurement	Expected sign to dependent variables		Supportive studies
PMPD	Dependent variable indicating potato market participation decision	Dummy dependent	1 = yes, 0 = no	PMPD	LPMP
LPMP	Dependent variable indicating level of potato market participation	Continuous dependent	Littre per hectare
SEXHH	Sex of the household head	Dummy	1 = male, otherwise = 0	-	-	Aliyi et al. (2021)
AGEHH	Age of household head	Continuous	Years	-/+	-/+	Endiris et al. (2021)
EXPROD	Years of farmers experience in potato production	Continuous	Number of years	+	+	Habtamu and Krishna (2021)
LANDAL	Land allocated for potato production	Continuous	Hectare	+	+	Endalew et al. (2020)
FASDRA	Family size and dependency ratio of household	Continuous	Number	-	-	Haile et al. (2022)
EDUSHH	Education status of household	Continuous	Year of formal schooling	+	+	Habtamu and Krishna (2021)
OFINCO	Annual earnings of household from off-farm income activities	Dummy	1 = yes, 0 = no	+	+	Emilola et al. (2016)
TLIVO	Number of livestock owned	Continuous	TLU	+	+	Dube and Guveya (2016)
PRCOOP	Participation in cooperative member	Dummy	1 = yes, 0 = no	+	+	Akinlade et al. (2016)
ACRED	Household access to credit service	Continuous	1 = yes, 0 = no	+	+	Haile et al. (2022)
FREXC	Frequency of extension contact	Continuous	Number of contact	+	+	Endalew et al. (2020)
ACCMI	Access to market information	Dummy	1 = yes, 0 = no	+	+	Aliyi et al. (2021)
DTAWRO	Distance to all-weather roads	Continuous	Walking hour	-	-	Melkamu et al. (2017)
DMARK	Distance from the nearest market	Continuous	Walking hour	-	-	Chala and Chalchisa (2017)

Source: Own Computation.

Table 3. Summary descriptive analysis of sample households for dummy independent variables

Variables’ description	All samples (N = 150)	Commercialization decision				Total sample percent	χ^2 value
	Total	Commercialized (n = 93)		Non commercialized (n = 57)
		Number	Percent	Number	Percent
SEXHH	150	93		57			1.3
Male	141	90	96.77	51	89.47	94
Female	9	3	3.23	6	10.53	6
EDUSHH	150						8.5***
Literate	129	86	92.5	43	75.44	86
Illiterate	21	7	7.5	14	24.56	14
ACRED	35	31	33.3	4	7	23.33	0.5
ACCMI	89	62	66.7	27	47.3	59.33	5.5***
OFINCO	32	22	23.65	10	17.54	21.33	1.7
FREXC	104	69	74.19	35	68.62	69.33	0.8
PRCOOP	62	48	51.6	14	24.6	41.33	1.5

Note: *** shows a statistical significance level.

Table 4. Summary for continuous independent variables

Variables’ description	Commercialization decision			t-value
	Commercialized (n = 93)	Non commercialized (n = 57)	Total
	Mean	Mean	Mean
FASDRA	5.6	7.2	6.4	−6.20***
AGEHH	37	38.84	37.92	−2.42**
EXPROD	9.95	9.5	9.73	1.2
DMARK	9.37	9.45	9.41	1.48
DTAWRO	4.02	3.8	4	0.33
TLIVO	8.26	7.24	7.75	1.87
LANDA	0.56	0.38	0.47	0.13

Note: *** and ** imply statistical significance at 1% and 5% levels.

Figure 2. Land allocations for different crops in hectares.

Figure 3. Average cash annual income in ETB of sample households from sales of different crops.

Table 5. Market participation index of potato production

Commodity	Commercialization status		Total
Potato	Commercialized	Non-commercialized
	Mean	Mean	Mean
	63.8	45.12	54.46

Source: Own survey result, 2020.

Table 6. Estimate of double-hurdle model for potato market participation decision and level of participation

	Commercialized = 1, otherwise = 0
Variables	Coef.	Robust Std. Err.	Z	P>z	mfx
Age of household head	−0.026	0.079	−0.33	0.738	−0.008
Sex of household head	0.094	0.672	0.14	0.888	0.032
Family size and dependency ratio	−0.841***	0.164	−5.13	0	−0.282
Educational status	0.59	0.548	1.08	0.282	0.216
Non/off farm income	0.1952	0.349	0.56	0.577	0.063
Livestock holdings	0.0142	0.044	0.32	0.751	0.004
Experience in potato pro.	0.402**	0.16	2.51	0.012	0.135
Access to credit	−0.463	0.3161	−1.46	0.144	−0.164
Extension services	0.357	0.34	1.05	0.294	0.124
Access to market information	0.275	0.438	0.63	0.53	0.093
Farm distance from all-weather road	−0.631***	0.224	−2.81	0.005	−0.212
Distance from district market	0.075	0.109	0.69	0.493	0.025
Participation in social organization	0.315	0.318	0.99	0.323	0.104
Land allocated for potato	5.130***	1.577	3.25	0.001	1.724
_cons	1.256	2.738	0.46	0.646
	Number of Ob = 150
	Wald chi2 (14) = 65.12
	Prob>chi2 = 0.000
	Pseudo R2 = 0.5278
	Log pseudolikelihood = −47.034

Notes: Computed from survey result, 2020; ***, **, and * represent 1%, 5%, and 10% level of significances, respectively.

Aliyi, I., Faris, A., Ayele, A., Oljirra, A., & Bayessa, M. (2021). Determinants of market participation among smallholder vegetable producers in Southwest Ethiopia. Ethiopian Journal of Applied Science and Technology, 12(2), 24–37.

 Google Scholar

Endiris, A., Brehanie, Z., & Ayalew, Z. (2021). The impact of off-farm activities on rural households’ food security status in Western Ethiopia: The case of Dibatie district. Cogent Food & Agriculture, 7(1), 1879425. https://doi.org/10.1080/23311932.2021.1879425

 Web of Science ®Google Scholar

Habtamu, R., & Krishna, N. (2021). Determinants of decision to use herbicides by smallholder farmers: The case of Dale Sadi district Kelem Wolega Zone, Oromia, Ethiopia. Journal of Economics & Sustainable Development, 12(13), 5–11. https://doi.org/10.7176/JESD/12-13-02

 Google Scholar

Endalew, B., Aynalem, M., Assefa, F., & Ayalew, Z. (2020). Determinants of wheat commercialization among smallholder farmers in Debre Elias Woreda, Ethiopia. Advances in Agriculture, 2020, 1–12. https://doi.org/10.1155/2020/2195823

 Google Scholar

Haile, K., Gebre, E., & Workye, A. (2022). Determinants of market participation among smallholder farmers in Southwest Ethiopia: Double-hurdle model approach. Agriculture & Food Security, 11(1), 1–13. https://doi.org/10.1186/s40066-022-00358-5

 Google Scholar

Emilola, C., Adenegan Kemisola, O., & OO, A. (2016). Assessment of crop commercialisation among smallholder farming households in Southwest Nigeria. 2(6). 2395-6011.

 Google Scholar

Dube, L., & Guveya, E. (2016). Determinants of agriculture commercialization among smallholder farmers in Manicaland and Masvingo Provinces of Zimbabwe. Agricultural Science Research Journal, 6(8), 182–190.

 Google Scholar

Akinlade, R. J., Balogun, O. L., & Obisesan, A. A. (2016). Commercialization of urban vegetable farming. International Journal of Vegetable Science, 22(1), 24–14. https://doi.org/10.1080/19315260.2014.921266

 Google Scholar

Melkamu, T., Kumar, N., Gebrekidan, B., Kebede, E., & Tkue, T. (2017). Performance of Bovans Brown chickens under intensive and backyard management system in Mekelle, Ethiopia. Ethiopian Journal of Veterinary Science and Animal Production, 1, 73–80.

 Google Scholar

Chala, H., & Chalchisa, F. (2017). Determinants of input commercialization as buyers of agro-chemicals and improved seed: Evidence from farm households’ of Ambo and toke kutaye districts, West Shewa Zone, Ethiopia. American Research Journal of Agriculture, 1–14.

 Google Scholar