Transition to market-oriented Teff production: determinants and implications for smallholders in Northwestern Ethiopia

The transition from traditional Teff production, combining subsistence and cash cropping, to a market-oriented system is vital for improving household income and food security in Ethiopia. However, Teff commercialization remains limited, with subsistence farming still prevalent. This study examines commercialization levels and key influencing factors in northwestern Ethiopia, offering policy-relevant insights. A sample of 352 households was selected through a three-stage sampling method. A Teff commercialization index and a two-limit Tobit model were used for analysis. Results show that 14.2% of households are subsistence farmers, 37.5% are semi-commercial, and 48.3% are fully commercialized, with an average commercialization level of 50.06 percent (mean of TCI). While comparable to other Ethiopian staple crops, these levels remain lower than those of cash crops, indicating unique commercialization barriers. The Tobit model delineates critical determinants of commercialization, revealing that factors such as family size, livestock ownership, and market distance exert a negative influence. In contrast, commercialization is significantly enhanced by the household head’s gender, access to extension services, adoption of improved seed varieties, cultivated land size, and credit accessibility. These findings emphasize the need for targeted interventions to enhance market participation. Policies should focus on empowering female-headed households, improving market access, and strengthening synergies between Teff and livestock farming. Enhancing access to quality inputs, promoting farmer cooperatives, and expanding credit facilities can bridge the gap between subsistence and market-oriented Teff farming. Such measures will foster economic growth and food security in Ethiopia.