DETERMINANTS OF SPICE CROPS PRODUCTION DECISION AND COMMERCIALIZATION AMONG SMALLHOLDER FARMERS: EVIDENCE FROM GORO DISTRICT OF BALE ZONE, SOUTHEASTERN OROMIYA, ETHIOPIA

Abstract

Spices have played an important role in people’s life as coloring agents, flavoring agents, preservatives, food additives, and medicine since ancient times. The sub-sector is among the important cash crops which fit the agricultural commercialization strategy and have key role in transforming subsistence farmers. Though Ethiopia has enormous potential of spices, the country is not fully capitalized on it and the contribution of the sub-sector to national economy is low. This study was conducted to identify determinants of production decision and commercialization of spice crops among smallholder farmers in Goro district, Bale Zone of Oromiya. Both primary and secondary data were collected. The primary data were collected by interview schedule, focus group discussion and key informant interview. Multistage sampling technique was employed to select respondents. Descriptive, inferential and econometric data analyses techniques were used. The double hurdle model was used to estimate factors affecting spice crops production decision and commercialization level of smallholder farmers. The result showed that 80.7% of total respondents were spice producers. The average input and output commercialization level of sample respondents was 16.95% and 80.88% respectively. The result showed that among explanatory variables education level of household head, total family size, total land holding, cooperative membership and access to improved seed affected spice production decision significantly and positively whereas livestock holding and distance to market affected it significantly and negatively. Input side level of commercialization was affected positively and significantly by participation in off/non-farm activities, access to credit services, cooperative membership and access to extension services while negatively and significantly affected by family size. Similarly, total livestock holding, access to credit and total volume of spice produced affected output side commercialization level significantly and positively whereas farming experience and distance to market determined it significantly and negatively. Therefore, providing informal education for farmers, strengthening and capacitating cooperatives, providing labour-saving farm machineries at affordable price, developing infrastructural facilities and market linkages, provision of training and awareness creation, provision of improved seed and improving farmers’ access to credit and to extension services were recommended.