Marketed surplus of head cabbage in Northwest Ethiopia: Evidence from an instrumental variable regression analysis

Head cabbage plays a vital role in supporting household livelihoods in Ethiopia. This study aimed to examine the main factors affecting the marketed surplus of head cabbage, along with the production and marketing challenges faced by producers, and available opportunities. A multistage sampling procedure was used, starting with the purposive selection of four major cabbage producing districts, followed by the random selection of 364 producers from eight kebeles. Data analysis was carried out in STATA 17 using linear and instrumental variable regression methods. Due to suspect of endogeneity problem, human labor, seed, horse labor, distance to development center, and credit access were taken as instrumental variables and determinants of marketed surplus were assessed through 2SLS estimation. The 2SLS results revealed that total production, cooperative membership, farming experience, family size, access to market information, and participation in off/non-farm activities significantly influenced the marketed surplus of head cabbage. Favorable agroecological conditions, irrigation access, high market demand, and the presence of multipurpose cooperatives were identified as key opportunities supporting production and marketing of cabbage. Conversely, weak market linkages, pest and disease problems, seasonal production patterns, and limited risk management options were major constraints. Therefore, strengthening cooperatives, advisory services, and market linkages is crucial to promote sustainable head cabbage production and the marketed surplus.