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Determinants of Market Orientation of Smallholder Wheat Farmers in Northern Ethiopia

Received: 28 August 2020     Accepted: 15 September 2020     Published: 25 September 2020
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Abstract

In Ethiopia, wheat is a market-oriented commodity although farmers are still producing this crop for consumption than for market, not based on the market information. The main objective of the study was to identify the determinants of market orientation of smallholder wheat farmers. The data were collected from 190 randomly selected sample households using structured questionnaire. Descriptive statistics and Tobit model were used for analyzing smallholder wheat farmers’ market orientation and its determinants. Descriptive statistics revealed that the average market orientation index of the sample wheat farmers was 10.69%, very low. The results of Tobit model revealed that land size, market access, wheat market experience, extension contact and equine owned were positively and significantly affecting market orientation of wheat whereas family size, total input cost and off/none farm income were significantly and negatively influencing market orientation. Therefore, designing an integrated policy and strategy on improving market access, provision of extensions mainly on market area and productivity of land for wheat while reducing the input cost would be suggested to improve market orientation of smallholder wheat farmers.

Published in American Journal of Science, Engineering and Technology (Volume 5, Issue 3)
DOI 10.11648/j.ajset.20200503.11
Page(s) 110-117
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), 2020. Published by Science Publishing Group

Keywords

Market Orientation, Smallholder Farmers, Wheat, Tobit Model, Sayint Adjibar, Ethiopia

References
[1] Abu Tefera, 2013. Report Contains Assessments of Commodity and Trade Issues Made by USDA Staff and Not Necessarily Statements of Official U.S. Government Policy, Ethiopian Grain and Feed annual report.
[2] Agricultural transformation agency (ATA), 2014. Wheat Sector Development Strategy (Working Document 2013-2017).
[3] Boka GT., 2017. Climate change challenges, smallholders’ commercialization, and progress out of poverty in Ethiopia. In: Shimeles A, Anyanwu JC, Faye I, Ngaruko F, Simpasa A, Salami AO, Verdier-Chouchane A, editors. Working Paper Series No. 253, African Development Bank. Abidjan (Côte d’Ivoire): African Development Bank.
[4] CSA (Central Statistical Agency of Ethiopia), 2007. Census 2007.
[5] CSA (Central Statistical Agency of Ethiopia), 2014. Agricultural Sample Survey. Report on Area and Production of Major Crops. Volume I, VII and VIII. Statistical Bulletin 578. Addis Ababa, Ethiopia.
[6] DARDO 2009. Districts Agricultural and rural development office report.
[7] Demeke, M., and Di Marcantonio F., 2013. Analysis of incentives and disincentives for wheat in Ethiopia. Technical notes series, MAFAP, FAO, and Rome.
[8] Dessie, A. B., Abate, T. M. & Mekie, T. M, 2018. Factors affecting market outlet choice of wheat producers in North Gondar Zone, Ethiopia. Agric & Food Secur 7 (91) doi: 10.1186/s40066-018-0241-x.
[9] Gebremedhin, B. and Jaleta, M., 2010. Commercialization of Smallholders: Is Market Participation Enough? (No. 308-2016-5004).
[10] Joseph M. Awika, 2011. Major Cereal Grains Production and Use around the World.
[11] Mamo, T., Getahun, W., Tesfaye, A., Chebil, A., Solomon, T., Aw-Hassan, A., Debele, T. and Assefa, S., 2017. Analysis of wheat commercialization in Ethiopia: The case of SARD-SC wheat project innovation platform sites. African Journal of Agricultural Research, 12 (10): 841-849.
[12] Onubuogu, G. C. and Onyeneke, R. U., 2012. Market Orientation of Root and Tuber Crops Production in Imo State, Nigeria. Agricultural Science Research Journals, 2 (5): 206-216.
[13] Siziba, S., Nyikahadzoi, K., Diagne, A., Fatunbi, A. O. and Adekunle, A. A., 2011. Determinants of cereal market participation by sub-Saharan Africa smallholder farmer. Journals of Agriculture & Environmental Studies, 2 (1).
[14] Solomon A, Bekele S, Franklin S., 2010. Does technology adoption promote commercialization? Evidence from Chickpea Technologies in Ethiopia.
[15] Tefera, T., 2014. Determinants of smallholder pulse producers market orientation in Southern Ethiopia. Asian Journal of Business Management, 6 (2): 97-103.
[16] Weldeyohanis, S., Mitiku, F. and Negash, R., 2017. Value Chain Analysis of Malt Barley (Hordeumvulgarel): A Way Out for Agricultural Commercialization: the Case of Lemu Bilbilo District, Oromia Region, Ethiopia. Journal of Economics and Sustainable Development, 8 (13): 2222-2855.
[17] Yamane, Taro, 1967. Statistics, An Introductory Analysis, 2nd Ed., New York: Harper and Row.
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  • APA Style

    Dubale Abate, Fikadu Mitiku, Rijalu Negash. (2020). Determinants of Market Orientation of Smallholder Wheat Farmers in Northern Ethiopia. American Journal of Science, Engineering and Technology, 5(3), 110-117. https://doi.org/10.11648/j.ajset.20200503.11

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    ACS Style

    Dubale Abate; Fikadu Mitiku; Rijalu Negash. Determinants of Market Orientation of Smallholder Wheat Farmers in Northern Ethiopia. Am. J. Sci. Eng. Technol. 2020, 5(3), 110-117. doi: 10.11648/j.ajset.20200503.11

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    AMA Style

    Dubale Abate, Fikadu Mitiku, Rijalu Negash. Determinants of Market Orientation of Smallholder Wheat Farmers in Northern Ethiopia. Am J Sci Eng Technol. 2020;5(3):110-117. doi: 10.11648/j.ajset.20200503.11

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  • @article{10.11648/j.ajset.20200503.11,
      author = {Dubale Abate and Fikadu Mitiku and Rijalu Negash},
      title = {Determinants of Market Orientation of Smallholder Wheat Farmers in Northern Ethiopia},
      journal = {American Journal of Science, Engineering and Technology},
      volume = {5},
      number = {3},
      pages = {110-117},
      doi = {10.11648/j.ajset.20200503.11},
      url = {https://doi.org/10.11648/j.ajset.20200503.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajset.20200503.11},
      abstract = {In Ethiopia, wheat is a market-oriented commodity although farmers are still producing this crop for consumption than for market, not based on the market information. The main objective of the study was to identify the determinants of market orientation of smallholder wheat farmers. The data were collected from 190 randomly selected sample households using structured questionnaire. Descriptive statistics and Tobit model were used for analyzing smallholder wheat farmers’ market orientation and its determinants. Descriptive statistics revealed that the average market orientation index of the sample wheat farmers was 10.69%, very low. The results of Tobit model revealed that land size, market access, wheat market experience, extension contact and equine owned were positively and significantly affecting market orientation of wheat whereas family size, total input cost and off/none farm income were significantly and negatively influencing market orientation. Therefore, designing an integrated policy and strategy on improving market access, provision of extensions mainly on market area and productivity of land for wheat while reducing the input cost would be suggested to improve market orientation of smallholder wheat farmers.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Determinants of Market Orientation of Smallholder Wheat Farmers in Northern Ethiopia
    AU  - Dubale Abate
    AU  - Fikadu Mitiku
    AU  - Rijalu Negash
    Y1  - 2020/09/25
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ajset.20200503.11
    DO  - 10.11648/j.ajset.20200503.11
    T2  - American Journal of Science, Engineering and Technology
    JF  - American Journal of Science, Engineering and Technology
    JO  - American Journal of Science, Engineering and Technology
    SP  - 110
    EP  - 117
    PB  - Science Publishing Group
    SN  - 2578-8353
    UR  - https://doi.org/10.11648/j.ajset.20200503.11
    AB  - In Ethiopia, wheat is a market-oriented commodity although farmers are still producing this crop for consumption than for market, not based on the market information. The main objective of the study was to identify the determinants of market orientation of smallholder wheat farmers. The data were collected from 190 randomly selected sample households using structured questionnaire. Descriptive statistics and Tobit model were used for analyzing smallholder wheat farmers’ market orientation and its determinants. Descriptive statistics revealed that the average market orientation index of the sample wheat farmers was 10.69%, very low. The results of Tobit model revealed that land size, market access, wheat market experience, extension contact and equine owned were positively and significantly affecting market orientation of wheat whereas family size, total input cost and off/none farm income were significantly and negatively influencing market orientation. Therefore, designing an integrated policy and strategy on improving market access, provision of extensions mainly on market area and productivity of land for wheat while reducing the input cost would be suggested to improve market orientation of smallholder wheat farmers.
    VL  - 5
    IS  - 3
    ER  - 

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Author Information
  • Department of Agribusiness and Value Chain Management, Wolkite University, Wolkite, Ethiopia

  • Department of Agricultural Economics and Agribusiness Management, Jimma University, Jimma, Ethiopia

  • Department of Agricultural Economics and Agribusiness Management, Jimma University, Jimma, Ethiopia

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