Smallholders commercialization of maize production in Guangua district, northwestern Ethiopia

In the urge for transforming the subsistence-oriented production system, the government of Ethiopia has developed and implemented different policies under the umbrella of the countries' policy Agricultural Development Led Industrialization (ADLI). This study is intended to support the government’s decision-making in transforming market-oriented agricultural development through provision of current and specific information on the level of farmers’ participation in maize output market and determinants of farmers’ participation in maize output market in Guangua district of Amhara National Regional State. Primary data was collected from 160 randomly selected smallholder farm households from four randomly selected kebeles in the district. The survey data was analyzed using descriptive statistics and double-hurdle model. From the descriptive statistics it was found that the level of commercialization of maize in the district was 44%. Results of the double-hurdle model analysis showed that in the first hurdle, educational status of the household head, price perception and land holding size played positive and significant role in households’ decision to participate in maize output sales; whereas, distance from extension office was found to affect participation in maize sales negatively and significantly. In the second hurdle; gender of the household head, household size and land holding size have positive and significant role in the volume of maize sold; while distance to the market was found to have negative significant role. Land holding was found to affect both households’ decisions to participate and intensity of participation in maize sales. Based on the findings it is recommended that the government have to strengthen the rural education system, its effort in expanding agricultural extension centers, enhance participation of female headed households, strengthen the family planning program and help the farmers improve land productivity, where possible, by promoting intensification and increasing provision of inputs so as to generate surplus maize output and boost sales.