Barley crop is one of the most important cereal crops among cultivated by smallholder farmers in North Gondar Zone because they derive benefits such as income, source of food and rural employment. In addition barley is becoming an important market oriented crops in Ethiopia. In spite of the policy decision of the Government of Ethiopia to commercialize subsistence agriculture, there is a lack of information on the commercialization process and marketing behavior of smallholder’s barley Ffarmers In Case of North Gondar Zone. This study aimed at analyzes factors determining that influence smallholder barley producer’s market orientation and market participation. It also examines weather whether market orientation translated in to market participation. or not? A random sampling technique was employed to select 199 barley producers from sampled kebeles in the study area. Both descriptive and econometric methods were used to analyze the data. The result of descriptive showed that the average level of market orientation index for barely was 0.26, indicating moderate level of households market orientation in the study area, while the average crop output market participation is was 57%, also indicating semi commercialized farmers. Multiple regression models were applied to identify factors influencing market orientation and market input participation. The result of multiple regression model indicated membership of cooperative, tropical livestock unit, land cultivated for barely, land fragmentation, access to market information and extension service affect market orientation positively and negatively, while sex of household, oxen owned and market information affect market participation at input side. Tobit model was estimated to identify the factors influencing market output participation. The result of tobit model showed that market access, institutional and market orientation were significantly influenced the market participation. Moreover, the result also showed that market orientation translates strongly into market participation. The key implication of this study is that interventions aimed at enabling access to market information, extension services and training should enhance market orientation, participation and commercialization of smallholder barely producers.

Keywords: Barley, commercialization, market orientation, tobit model and market participation