| Abstract: | Enhancing the smallholders’ production system into a commercialized production target as
a way to raise the smallholder farmer’s income and decrease rural poverty has been in the
strategy focus of many developing countries, including Ethiopia. But, there are no adequate
studies in Ethiopia, particularly, in the potential areas of fruit and vegetable production like
Bora District. The study used a fixed reference period of March, 2013 to February, 2014. The
data obtained from a sample of 150 smallholdesr fruit and vegetable farmers were selected
randomly from four purposively selected rural kebeles in the District. A Probit double hurdle
model was applied to analyze the determinants of the commercialization decision and level of
commercialization. In the first case, the result of Probit Regression Model revealed that, sex,
distance to the nearest market, andsize of cultivated land played a significant role in
smallholders’ commercialization decision. In the second case, the result of Truncated
Regression This study has identified household level determinants of the output side
commercialization decision and level of commercialization in fruit and vegetable crops in
Bora District, East Showa zone, Oromia Region. The study revealed that, household
education, household size, access to irrigation, cultivated land, livestock, and distance to the
nearest market were the key determinants of the level of commercialization. The result
analysis of above mentioned model showed that farm size and distance to the nearest market
were cross-cutting determinants of smallholder fruit and vegetable crops commercialization.
It is recommended that extension officials should strengthen the business orientation of farm
households coupled with government support in terms of market infrastructure. |
