Abstract:
This study was conducted in Babile district to examine the determinants of farmers‟ groundnut
commercialization and to assess opportunities and constraints in groundnut commercialization.
Cross sectional research design was used.Two stage random sampling procedures were used
for the selection of 160 representative sample households. Using proportional probability
sampling number of sample size was determined from each 4 representative kebele after
Yamane formula used to determine the total sample size. Key informants, focus groups and
semi- structured interview schedulewereused for gathering primary data.Descriptive statistics,
household commercialization intensity and double hurdle model were used for the analysis of
quantitative datawhile narration and interpretation were used forqualitative data analysis.
The probit model result reveals that age, education level, distance to the nearest market, land
size, access to market information and non/off-farm income were significantly
influencehouseholds participation decision in groundnut commercializationwhile the
truncation model result disclose thatage, education level, household size, landsize and
frequency of extension contact were significantly influence the sample households’ groundnut
commercialization intensity. Driving factors existing in the study area such as conducive
agro-ecology, access to market information, locational trade mark of Babile groundnut
identified as opportunities whereas disease, lack of improved varieties of seeds and price
instability are considered as the constraints which hindering farmers not to boost their
groundnut production for commercialization.The findings have an implication for all the
concerned body and they should have to develop strategies to address the aforementioned
factors in order to improve smallholder farmers’ groundnut commercialization
