DETERMINANTS OF FRUIT AND VEGETABLE COMMERCIALIZATION AMONG RURAL HOUSEHOLDS: - THE CASE OF BORA DISTRICT, EAST SHOWA ZONE, OROMIA REGION

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.