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Factors Affecting Level of Potato Commercialization in Kofale District, West Arsi Zone, Oromia Regional State, Ethiopia

Received: 13 April 2020     Accepted: 28 April 2020     Published: 5 August 2020
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Abstract

The Government of Ethiopia focuses on Agricultural Commercialization to meet the challenge of improving rural incomes by introducing Agricultural commercialization cluster. However, there are no adequate studies on level of commercialization and factors affecting Farmers’ potato commercialization in Kofale District. This study was aimed to identify level and factors affecting farmers’ level of potato commercialization. A two stage random sampling procedure was used to select 150 sample households potato producer. Descriptive statistics and econometric model were used to analyze the data. About 18% of sample farm households were low level of commercialization, about 15% medium and about 67% of them categorized under high level of commercialization. Truncated model was used in the econometric analysis. Education status, land allocated for Potato production and Access to market information influenced level of potato commercialization positively and significantly. The study indicated that the government, stakeholders and concerned bodies need to focus on facilitating farmers to participate education by providing adult education and extension based education, strengthening the existing livestock providing improved health services and better livestock feed (forage), improve productivity of land by providing technology and disseminate market information to producers so as to improve intensity of potato commercialization.

Published in Journal of Investment and Management (Volume 9, Issue 2)
DOI 10.11648/j.jim.20200902.13
Page(s) 56-62
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

Commercialization, Truncated Model, Household Commercialization Index and Kofale

References
[1] NPC (National Plan Commission). 2016. Growth and Transformation Plan II (GTP II), National Plan Commission Volume I: Main text Addis Ababa.
[2] Abiy Hailu. 2016. Ethiopia: IAIPs -Epicenter for agricultural commercialization. The Ethiopian herald (Addis Ababa), Ethiopia.
[3] Afework Hagos and Endrias Geta. 2016. Review on smallholder agriculture commercialization in Ethiopia: What are the driving factors to focus on? Journal of Development and Agricultural Economics, 8 (4): 65-76.
[4] DOANR (District Office of Agriculture and Natural Resource). 2018. Reports of Kofale district Office of Agriculture and Natural Resource, 2018. Kofale, Ethiopia.
[5] CSA (Central Statistical Agency). 2017. The Federal Democratic Republic of Ethiopia central Statistical Agency agricultural sample survey report on area and production of major crops 584 Statistical Bulletin 2016/2017 (2009 E. C.) Volume I
[6] Yamane., T. 1967. Statistics: An introductory analysis, 2nd Ed., New York: Harper and Row.
[7] Strasberg, P. J., Jayne, T. S., Yamano, T., Nyoro, J., Karanja, D., Strauss, J. 1999. Effects of agricultural commercialization on food crop input use and productivity in Kenya. Office of Sustainable Development; Policy Synthesis for USAID-Africa Bureau, pp. 41.
[8] VonBruan., J and Kennedy., E. 1994. Agricultural commercialization, economic development and Nutrition (Baltimore: John Hopkins University Press)
[9] Wooldridge., J. W. 2002. Econometric analysis of cross section and panel data. Cambridge, the MIT Press, Cambridge, Massachusetts, London, England.
[10] Cragg, J. 1971. Some statistical models for limited dependent variables with application to the demand for durable goods. Econometrica, 39 (5): 829-844.
[11] EEA (2006). Evaluation of the Ethiopian agricultural extension with particular emphasis on the Participatory Demonstration and Training Extension System. Research Report, Ethiopian Economic Association, Addis Ababa, Ethiopia.
[12] Gebre-ab N (2006). Commercialization of small holder agriculture in Ethiopia. Note and Papers Series 3.
[13] Aman Tufa, Adam Bekele and Lemma Zemedu. 2014. Determinants of smallholder commercialization of horticultural crops in Gemechis district, West Hararghe zone, Ethiopia. African Journal of Agricultural Research, 9 (3): 310-319.
[14] Stork, H., Bezabih Emana, Berhanu Adnew, Borowiecki, A. A. and Shimelis Woldehawariat. 1991. Farming systems and farm management practices of smallholders in the Hararghe Highlands. Farming system and resource economics in the Tropics. 11: Wissenschafts Varlag Vauk Kiel KG, Germany.
[15] Angula M (2010). Determinants of sustainable coffee marketing channel choice and supply response among organic and certified smallholder farmers: Evidence from Uganda. A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science of Agricultural, food and resource economics. Michigan State University.
[16] Kumilachew Alamerie Melesse. 2016. Commercial behaviour of smallholder potato producers: the case of Kombolcha woreda, eastern part of Ethiopia. UDC 633.49: 631.1.017.3: 330.13 (63).
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  • APA Style

    Asfaw Negesse Senbeta. (2020). Factors Affecting Level of Potato Commercialization in Kofale District, West Arsi Zone, Oromia Regional State, Ethiopia. Journal of Investment and Management, 9(2), 56-62. https://doi.org/10.11648/j.jim.20200902.13

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    ACS Style

    Asfaw Negesse Senbeta. Factors Affecting Level of Potato Commercialization in Kofale District, West Arsi Zone, Oromia Regional State, Ethiopia. J. Invest. Manag. 2020, 9(2), 56-62. doi: 10.11648/j.jim.20200902.13

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    AMA Style

    Asfaw Negesse Senbeta. Factors Affecting Level of Potato Commercialization in Kofale District, West Arsi Zone, Oromia Regional State, Ethiopia. J Invest Manag. 2020;9(2):56-62. doi: 10.11648/j.jim.20200902.13

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  • @article{10.11648/j.jim.20200902.13,
      author = {Asfaw Negesse Senbeta},
      title = {Factors Affecting Level of Potato Commercialization in Kofale District, West Arsi Zone, Oromia Regional State, Ethiopia},
      journal = {Journal of Investment and Management},
      volume = {9},
      number = {2},
      pages = {56-62},
      doi = {10.11648/j.jim.20200902.13},
      url = {https://doi.org/10.11648/j.jim.20200902.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20200902.13},
      abstract = {The Government of Ethiopia focuses on Agricultural Commercialization to meet the challenge of improving rural incomes by introducing Agricultural commercialization cluster. However, there are no adequate studies on level of commercialization and factors affecting Farmers’ potato commercialization in Kofale District. This study was aimed to identify level and factors affecting farmers’ level of potato commercialization. A two stage random sampling procedure was used to select 150 sample households potato producer. Descriptive statistics and econometric model were used to analyze the data. About 18% of sample farm households were low level of commercialization, about 15% medium and about 67% of them categorized under high level of commercialization. Truncated model was used in the econometric analysis. Education status, land allocated for Potato production and Access to market information influenced level of potato commercialization positively and significantly. The study indicated that the government, stakeholders and concerned bodies need to focus on facilitating farmers to participate education by providing adult education and extension based education, strengthening the existing livestock providing improved health services and better livestock feed (forage), improve productivity of land by providing technology and disseminate market information to producers so as to improve intensity of potato commercialization.},
     year = {2020}
    }
    

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    T1  - Factors Affecting Level of Potato Commercialization in Kofale District, West Arsi Zone, Oromia Regional State, Ethiopia
    AU  - Asfaw Negesse Senbeta
    Y1  - 2020/08/05
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    DO  - 10.11648/j.jim.20200902.13
    T2  - Journal of Investment and Management
    JF  - Journal of Investment and Management
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    PB  - Science Publishing Group
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    UR  - https://doi.org/10.11648/j.jim.20200902.13
    AB  - The Government of Ethiopia focuses on Agricultural Commercialization to meet the challenge of improving rural incomes by introducing Agricultural commercialization cluster. However, there are no adequate studies on level of commercialization and factors affecting Farmers’ potato commercialization in Kofale District. This study was aimed to identify level and factors affecting farmers’ level of potato commercialization. A two stage random sampling procedure was used to select 150 sample households potato producer. Descriptive statistics and econometric model were used to analyze the data. About 18% of sample farm households were low level of commercialization, about 15% medium and about 67% of them categorized under high level of commercialization. Truncated model was used in the econometric analysis. Education status, land allocated for Potato production and Access to market information influenced level of potato commercialization positively and significantly. The study indicated that the government, stakeholders and concerned bodies need to focus on facilitating farmers to participate education by providing adult education and extension based education, strengthening the existing livestock providing improved health services and better livestock feed (forage), improve productivity of land by providing technology and disseminate market information to producers so as to improve intensity of potato commercialization.
    VL  - 9
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Author Information
  • Department of Agricultural Economics Oromia Agricultural Research Institute Adami Tulu Research Center, Batu, Ethiopia

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