Analysis of wheat commercialization in Ethiopia: The case of SARD-SC wheat project innovation platform sites

Abstract

In Ethiopia, wheat is becoming an essential source of income for farmers even though it is still a fundamental food crop. While the major proportion is kept for consumption, farmers sell part of their wheat produce. The main objectives of this paper are to assess the level of commercialization and its determinants of wheat producers in the four major producing regions. Quantitative primary data was collected from December 2013 to January 2014. The structured questionnaire was used to help collect quantifiable data from wheat producer households. Econometric tools were employed for the analysis of wheat producers' commercialization and its determinants. The findings indicate that about 27% of the wheat produced is being used for sale with the highest and lowest in Oromia (41%) and Tigray (17%) innovation platform sites, respectively. The results also reveal that most of the commercialization index falls within 25 and 50%. This indicates that wheat is becoming an essential cash crop to supplement household incomes. The empirical results of Tobit model show that educational level of head household, livestock size expressed in Tropical Livestock Unit (TLU), amount of wheat produced, and credit access, affect wheat commercialization positively and significantly while distance to the market and family size affect commercialization of farmers negatively. Finally, based on the findings of the research, some technical, institutional and policy that empower farmers through organizing in groups, training, and contractual arrangement with millers are needed to improve wheat productivity and linkage of wheat farmers to market.

Determinants of sorghum crop commercialization the case of Southwest Ethiopia

“…However, the result was in contrast with the finding of Meleaku et al. (2020) ; Wassihun et al., (2020) ; Addisu (2018) ; Tadele et al. (2017) ; that found as the level of formal education increased the level of wheat commercialization.…”

“…Also, the result was supported by Lighton and Emmanuel (2016) found that educated members of the households tend to shun rural agricultural life and instead opt for higher faster paying professions. However, the result was in contrast with the finding of Meleaku et al (2020); Wassihun et al, (2020); Addisu (2018); Tadele et al (2017); that found as the level of formal education increased the level of wheat commercialization.…”

Wheat production and marketing in Ethiopia: Review study

“…The first is to stabilize domestic price and the second is to meet the overgrowing wheat demand of the consumer in the country. Wheat production is mostly farm to fork which means the farmers produce more of it for their consumption at home and less of it for the market (Gebreselassie et al, 2017;Mamo et al, 2016). But the main question is why those farmers produce wheat for only consumption?…”

From staple food to market-oriented crop: commercialization level of smallholder teff (Eragrostis teff) growers in Jamma District, Ethiopia

“…This is because they mainly focus on consumption-oriented agricultural practices which exclude them from the market system. Thus, the transition from subsistence agriculture to commercial-oriented one is important to improve the income, consumption, and nutritional setup of the farm households (Tadele et al 2017). Recently there is a growing interest in developing countries to transform their subsistence agriculture into market-oriented one, and it is an indispensable pathway for poverty reduction and food security enhancement of the farm households (Tadele et al 2017).…”

“…Thus, the transition from subsistence agriculture to commercial-oriented one is important to improve the income, consumption, and nutritional setup of the farm households (Tadele et al 2017). Recently there is a growing interest in developing countries to transform their subsistence agriculture into market-oriented one, and it is an indispensable pathway for poverty reduction and food security enhancement of the farm households (Tadele et al 2017). Ethiopia has adopted the commercialization of smallholder agriculture as a strategy for economic transformation which is indicated in the Growth and Transformation Plan II (NPC 2016).…”