Abstract

This paper aims to identify factors affecting teff commercialization in Abay Chomen District using primary data collected during February and January 2017 from teff sampled household producers. Semi structured interview schedule and Focus Group Discussion were used for data collection. Descriptive statistics and heckman two stage models were used to analyze the data collected. The paper showed that among sixteen explanatory variables entered into the model, six variables affect the level of teff commercialization. Based on the probit regression model result, land allocated for teff production and ownership of oxen have significant and positive association with the probability of market participation decision whereas, age, family size, and access to village town have significant and negative association with the probability of market participation decision of households. The result of Heckman second stage model revealed number of donkey owned, number of oxen owned, land allocated for teff production, frequency of agricultural extension contact, Landholding size and inverse mill’s ratio were significantly and positively related to level of teff commercialization whereas, livestock ownership excluding oxen and donkey and distance from the district market were significant and negatively related to the level of teff commercialization. Therefore, government policies that give emphasis to specialization of teff, provision of market infrastructure, ownership of oxen and donkey as well as family planning are recommended to increase teff market participation decision and intensity of its sale in Abay Chomen District.

Key words: Abay Chomen, commercialization, Heckman two stage model, market participation, teff.