Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia

Mulualem Molla

doi:doi:10.11648/j.eco.20221101.14

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Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia

Mulualem Molla

Published in Economics (Volume 11, Issue 1)

Received: 14 January 2022 Accepted: 5 February 2022 Published: 16 February 2022

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Abstract

The history of red pepper in Ethiopia is perhaps the most ancient than the history of any other vegetable product and it has been cultivated in many parts of the country. It is obvious that, commercialization is long run process that farming shifts from subsistence (non commercial) to semi-commercial farming, and then to fully commercialized agriculture. The purpose of this study was to analyze the determinants of commercialization of small holder red pepper farmers Javiethenan district, Ethiopia in 2012 E.C. Particularly, the study investigates the level of commercialization of red pepper production, and factors that affect household participation in the red pepper output market. Two stage sampling technique was applied to select sample kebeles and 214 respondents from five Kebles of the woreda household were selected based on proportionate random sampling technique The descriptive analysis revealed the level of commercialization in the study area on average semi commercial one. Censured Tobit regression was applied to analyze the factors that affect market participation of households’ in red pepper output market. The result revealed that from the total 12 explanatory variables, four variables were statistically significant. Of which, land size (land allocated for red pepper production), market information, extension service and previous year market price of red pepper were positively related with household market participation or quantity of red pepper sold. Thus, emphasis and intervention should be given for households to increase market participation and improve levels of commercialization.

Published in	Economics (Volume 11, Issue 1)
DOI	10.11648/j.eco.20221101.14
Page(s)	31-38
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), 2022. Published by Science Publishing Group

Keywords

Commercialization, Households, red pepper, Market Participation, Tobit

References

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[2]	BoA (Bureau of Agriculture), Amhara National Regional State, 20015/2016. Annual Performance Report, Bahir Dar, Ethiopia.
[3]	BOARD (Bureau of Agriculture and Rural Development) (2019/20). Farming systems and Production pattern of Jabi Tehinan woreda.
[4]	Biruhalem Kassa, 2010. Rice value chain in Metema district, North Gondar, Ethiopia: challenges and opportunities for innovation. An MA Thesis Presented to the School of Graduate Studies of Addis Ababa University.
[5]	Berhanu Gebremedhin and Moti Jaleta. (2010). Commercialization of Smallholders: Does market orientation translates into market participation? Improving productivity and Market Success (IPMS) of Ethiopia farmers project Working Paper 22. Nairobi, Kenya, ILRI.
[6]	Birara Endalew. (2017). red pepper Production and marketing in Ethiopia; A Journal of Radix International Educational and Research Consortium, volume 6, Bahirdar university.
[7]	Chalachew Seyoum, Tesfaye Lemma and Ranjan S. Karippai. (2011). factors determining degree of commercialization of smallholder agriculture: the case of Potato growers in Kombolcha district, East Harrghe, Ethiopia.
[8]	Chamberlin, J. (2008). It’s a Small World After All: Defining Smallholder Agriculture in Ghana. IFPRI Discussion Paper No. 00823.
[9]	EEPA (Ethiopian Export Promotion Agency), 2003. Spice potential and market study, Addis Abeba.
[10]	Edward Mertey. (2013). Factors Influencing Commercialization of Smallholder Agriculture in the Effutu Municipality of Ghana. A Tobit regression.
[11]	Hafnagel, H. P. 1961. Agriculture in Ethiopia. Food and Agricultural Organization of United Nations, Rome, Italy. International edition, U.S.
[12]	Kothari, C. R. (2004). Research Methodology: Methods and Techniques, 2^nd Edition. Wishwa.
[13]	Leavy J. and Poulton C. (2007). Commercialization in agriculture: a typology. Paper presented at the Fifth International Conference on the Ethiopian Economy, EEA, Addis Ababa.
[14]	Mahelet Getachew, (2007). Factors affecting commercialization of smallholder farmers in Ethiopia: the case of North Omo Zone, SNNP region. Paper presented at the Fifth International Conference on the Ethiopian Economy, Addis Ababa, and June 7-9.
[15]	MoFED (Ministry of Finance and Economic Development), 2010. Growth and Transformation Plan (GTP): 2010/11 – 2014/15. Ministry of Finance and Economic Development. V-II, Nov, 2010, Addis Ababa.
[16]	Pender J. and Dawit Alemu, (2007). Determinants of Small hold Commercialization of Food Crops: Theory and Evidence from Ethiopia. Vol. 745. International Food Policy Research Institute.
[17]	Samuel G and Sharp K. (2007). Commercialization of smallholder agriculture in selected tef-growing areas of Ethiopia, Ethiopian Journal of Economics, Volume XVI, and No 1.
[18]	Strasberg PJ. Jayne TS., Yamano T., Nyoro J., Karanja D. and Strauss J. (1999). Effects of agricultural commercialization on food crop input use and productivity in Kenya. Michigan State University International Development Working Papers No. 71. Michigan, USA.
[19]	Tobin J. Source: Econometrica, Jan., 1958, Vol. 26, No. 1 (Jan., 1958), pp. 24-36.
[20]	Yamane, Taro. (1967). Statistics: Introduction to analysis. New York: Harper and row?

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Mulualem Molla. (2022). Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia. Economics, 11(1), 31-38. https://doi.org/10.11648/j.eco.20221101.14

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Mulualem Molla. Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia. Economics. 2022, 11(1), 31-38. doi: 10.11648/j.eco.20221101.14

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AMA Style

Mulualem Molla. Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia. Economics. 2022;11(1):31-38. doi: 10.11648/j.eco.20221101.14

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@article{10.11648/j.eco.20221101.14,
  author = {Mulualem Molla},
  title = {Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia},
  journal = {Economics},
  volume = {11},
  number = {1},
  pages = {31-38},
  doi = {10.11648/j.eco.20221101.14},
  url = {https://doi.org/10.11648/j.eco.20221101.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20221101.14},
  abstract = {The history of red pepper in Ethiopia is perhaps the most ancient than the history of any other vegetable product and it has been cultivated in many parts of the country. It is obvious that, commercialization is long run process that farming shifts from subsistence (non commercial) to semi-commercial farming, and then to fully commercialized agriculture. The purpose of this study was to analyze the determinants of commercialization of small holder red pepper farmers Javiethenan district, Ethiopia in 2012 E.C. Particularly, the study investigates the level of commercialization of red pepper production, and factors that affect household participation in the red pepper output market. Two stage sampling technique was applied to select sample kebeles and 214 respondents from five Kebles of the woreda household were selected based on proportionate random sampling technique The descriptive analysis revealed the level of commercialization in the study area on average semi commercial one. Censured Tobit regression was applied to analyze the factors that affect market participation of households’ in red pepper output market. The result revealed that from the total 12 explanatory variables, four variables were statistically significant. Of which, land size (land allocated for red pepper production), market information, extension service and previous year market price of red pepper were positively related with household market participation or quantity of red pepper sold. Thus, emphasis and intervention should be given for households to increase market participation and improve levels of commercialization.},
 year = {2022}
}

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TY  - JOUR
T1  - Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia
AU  - Mulualem Molla
Y1  - 2022/02/16
PY  - 2022
N1  - https://doi.org/10.11648/j.eco.20221101.14
DO  - 10.11648/j.eco.20221101.14
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 31
EP  - 38
PB  - Science Publishing Group
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AB  - The history of red pepper in Ethiopia is perhaps the most ancient than the history of any other vegetable product and it has been cultivated in many parts of the country. It is obvious that, commercialization is long run process that farming shifts from subsistence (non commercial) to semi-commercial farming, and then to fully commercialized agriculture. The purpose of this study was to analyze the determinants of commercialization of small holder red pepper farmers Javiethenan district, Ethiopia in 2012 E.C. Particularly, the study investigates the level of commercialization of red pepper production, and factors that affect household participation in the red pepper output market. Two stage sampling technique was applied to select sample kebeles and 214 respondents from five Kebles of the woreda household were selected based on proportionate random sampling technique The descriptive analysis revealed the level of commercialization in the study area on average semi commercial one. Censured Tobit regression was applied to analyze the factors that affect market participation of households’ in red pepper output market. The result revealed that from the total 12 explanatory variables, four variables were statistically significant. Of which, land size (land allocated for red pepper production), market information, extension service and previous year market price of red pepper were positively related with household market participation or quantity of red pepper sold. Thus, emphasis and intervention should be given for households to increase market participation and improve levels of commercialization.
VL  - 11
IS  - 1
ER  -

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Author Information

Mulualem Molla

Department of Economics, Debre Markos University, Debre Marqos, Ethiopia

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APA Style

Mulualem Molla. (2022). Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia. Economics, 11(1), 31-38. https://doi.org/10.11648/j.eco.20221101.14

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ACS Style

Mulualem Molla. Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia. Economics. 2022, 11(1), 31-38. doi: 10.11648/j.eco.20221101.14

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AMA Style

Mulualem Molla. Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia. Economics. 2022;11(1):31-38. doi: 10.11648/j.eco.20221101.14

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@article{10.11648/j.eco.20221101.14,
  author = {Mulualem Molla},
  title = {Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia},
  journal = {Economics},
  volume = {11},
  number = {1},
  pages = {31-38},
  doi = {10.11648/j.eco.20221101.14},
  url = {https://doi.org/10.11648/j.eco.20221101.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20221101.14},
  abstract = {The history of red pepper in Ethiopia is perhaps the most ancient than the history of any other vegetable product and it has been cultivated in many parts of the country. It is obvious that, commercialization is long run process that farming shifts from subsistence (non commercial) to semi-commercial farming, and then to fully commercialized agriculture. The purpose of this study was to analyze the determinants of commercialization of small holder red pepper farmers Javiethenan district, Ethiopia in 2012 E.C. Particularly, the study investigates the level of commercialization of red pepper production, and factors that affect household participation in the red pepper output market. Two stage sampling technique was applied to select sample kebeles and 214 respondents from five Kebles of the woreda household were selected based on proportionate random sampling technique The descriptive analysis revealed the level of commercialization in the study area on average semi commercial one. Censured Tobit regression was applied to analyze the factors that affect market participation of households’ in red pepper output market. The result revealed that from the total 12 explanatory variables, four variables were statistically significant. Of which, land size (land allocated for red pepper production), market information, extension service and previous year market price of red pepper were positively related with household market participation or quantity of red pepper sold. Thus, emphasis and intervention should be given for households to increase market participation and improve levels of commercialization.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Determinants of Commercilization of Smallholder Red Pepper Farmers in Javiethenan District, Amahara Region, Ethiopia
AU  - Mulualem Molla
Y1  - 2022/02/16
PY  - 2022
N1  - https://doi.org/10.11648/j.eco.20221101.14
DO  - 10.11648/j.eco.20221101.14
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 31
EP  - 38
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20221101.14
AB  - The history of red pepper in Ethiopia is perhaps the most ancient than the history of any other vegetable product and it has been cultivated in many parts of the country. It is obvious that, commercialization is long run process that farming shifts from subsistence (non commercial) to semi-commercial farming, and then to fully commercialized agriculture. The purpose of this study was to analyze the determinants of commercialization of small holder red pepper farmers Javiethenan district, Ethiopia in 2012 E.C. Particularly, the study investigates the level of commercialization of red pepper production, and factors that affect household participation in the red pepper output market. Two stage sampling technique was applied to select sample kebeles and 214 respondents from five Kebles of the woreda household were selected based on proportionate random sampling technique The descriptive analysis revealed the level of commercialization in the study area on average semi commercial one. Censured Tobit regression was applied to analyze the factors that affect market participation of households’ in red pepper output market. The result revealed that from the total 12 explanatory variables, four variables were statistically significant. Of which, land size (land allocated for red pepper production), market information, extension service and previous year market price of red pepper were positively related with household market participation or quantity of red pepper sold. Thus, emphasis and intervention should be given for households to increase market participation and improve levels of commercialization.
VL  - 11
IS  - 1
ER  -

Copy | Download