Impact of Potato Commercialization on Producers’ Consumption Expenditure

Abstract

Food access is a significant issue for rural households, especially in Sub-Saharan Africa. Developing nations prioritize commercializing smallholder agriculture to reduce hunger and improve rural economies. Potato is vigorous for food security especially in the highland regions. The objectives of the study were to analyze the impact of potato commercialization on household consumption expenditure. This study used a sample of 390 households from the northwest part of Ethiopia in the South Gondar zone using multistage sampling to draw a representative sample. Data were collected through questionnaires. The average treatment effect on treated (commercialized) and untreated (non-commercialize) was 8786.77ETB and 1501.39ETB, respectively, and significant at one percent. This conclude that Potato commercialization impacts household consumption expenditure positively The study suggests the creation of suitable intervention mechanisms focusing on the aforementioned factors to enhance the performance of potato commercialization then improve welfare of the households.