Determinants of Onion Output Market Participation Level Among Smallholder Farming Households: The Case of Fentale District, Oromia Regional State, Ethiopia

Abstract

This study focuses on analysing the factors affecting the decision and the level of onion output market participation among smallholder onion producers at Fentale district . Samples of 180 onion producer households were selected through multi-stage random sampling from three kebeles of Fentale district. The study employed both quantitative and qualitative methods of data collection. Quantitative data collected from sample households were analysed by descriptive and double hurdle model while qualitative analysed by narration. The result from the 1 st phase of the double hurdle, probit regression, revealed that sex of household head, onion farming experience, total farm holding, farm allocated for onion production, credit access, access to extension and market information were statistically significant and influence households onion market participation decision. The finding from the 2 nd phase of the hurdle model, truncated regression, show the age of household head, sex of household head, farm allocated to onion, irrigation access, number of oxen owned and distance to the nearest market were variables influencing smallholder onion market participation level and statistically significant. Finally it is recommended that the Government organizations and other responsible bodies should ensure the equal distribution of irrigation water for both upper and lower streams, strengthen inputs supply chains, and strengthen producers’ cooperation.