Transforming Subsistence Farming: Determinants of Sorghum Output Commercialization: The Case of Arsi Zone, Oromia Regional State, Ethiopia

In developing countries, including Ethiopia, the change from subsistence-oriented production system to the market-oriented production system as a means of raising smallholder income, and alleviating poverty has been at the center of policy spotlight. This study analysis the level and factors determining smallholder sorghum commercialization in Gololcha and Shene Kolu Districts. A three-stage random sampling technique was employed to select a sample of 121 smallholder sorghum producers. Primary and quantitative data were collected using a structured survey questionnaire. Secondary data were collected from different secondary sources. Descriptive statistics, household commercialization index (HCI) and Heckman second stages ordinary least square regression estimation (OLS) was used for data analysis. Accordingly, the results of HCI indicated that 48.46% of farmers are fully subsistent,16.92% less commercialized, 21.54% are medium commercialized, 8.46% are highly commercialized and 4.6% are very highly commercialized. The result from OLS regression indicated that household family size, household access to credit and sorghum current market price influenced the level of sorghum commercialization positively and significantly, while household sorghum consumption and non-farm income were affected negatively and significantly. Therefore, government authority and concerned bodies should take into consideration demographic, socioeconomic, and institutional factors to improve the performance of sorghum commercialization in area.