Supply and Performance of Wheat Markets in Digelu-Tijo District of Oromia Region, Ethiopia

Abstract

Analyzing the supply and performance of wheat markets for smallholder farmers need to improve their marketed surplus and initiate them for commercialization. The objective of this paper is to analyze the marketed surplus of wheat by smallholders farmers and to identify its underlying determinants. Two- stage sampling technique was used and a total of 123 smallholder farmers from five kebeles were randomly and proportionately sampled to collect both secondary and primary sources. The model results showed that six explanatory variables significantly affected the volume of wheat marketed by smallholder wheat producers. Family size, access to credit, off- farm income and livestock holding were negatively and significantly affecting supply. Oxen ownership and perception of farmers towards wheat market price were positively and significantly influence market supply. Based on the study policy interventions like family planning, awareness to farmers to supply wheat to the market when price is fair for them, awareness to farmers on rearing livestock besides farming agricultural crops, encouraging farmers to involve them self in both off-farming and farming activities to improve their livelihood.