Factors Affecting Market Participation Decision and Level of Commercialization Among <i>Teff</i> Producers in East Shewa Zone, Oromia Region, Ethiopia

The government of Ethiopia implemented agricultural commercialization clusters with the primary goal of commercialization of smallholders’ agriculture and agro-industrial development, offering a strategic entry point for private sector engagement. This study was aimed to identify of status <i>Teff</i> commercialization, factors influencing farmers’ market participation decision and level of <i>Teff</i> commercialization in East Shewa Zone. A two-stage random sampling procedure was used to select 122 sample households <i>Teff</i> producer. Descriptive statistics and econometric model were used to analyze the data. The result revealed that about 69.67% sample households were market participant in <i>Teff</i> production. The average intensity <i>Teff</i> commercialization were 37.3%. The result of probit model indicated that experience of <i>Teff</i> production, lagged price of <i>Teff</i>, land allocated for <i>Teff</i> production and participation in social organization positively influenced household head <i>Teff</i> market participation decision. In the second hurdle truncated, the level of <i>Teff</i> commercialization significantly and positively influenced by education level, experience in <i>Teff</i> production and lagged price of <i>Teff</i> while distance to market center influenced it negatively. The study indicated that the government, stakeholders and concerned bodies need to focus on facilitating farmers to participate in social organization, improving farmers capacity development through practical training and improving farmers experience through arrangement experience sharing among farmers so as to improve <i>Teff</i> market participation decision and intensity of commercialization.