What drives the demand for drought-resilient sorghum varieties? Evidence from moisture-stressed areas in Ethiopia

Abstract

Sorghum is one of the critical food security crops, particularly in moisture-stressed areas of Ethiopia. However, in the absence of a well-organized formal seed system, public research institutions have continued to promote and disseminate improved sorghum varieties to encourage adoption. On the other hand, the lack of evidence on smallholder farmers’ demand for improved varieties has discouraged the seed industry from investing in marginalized crops, like sorghum, in contrast to more commercialized crops such as wheat and maize. This study assessed producers’ willingness to pay (WTP) for improved sorghum varieties suitable for moisture-stressed sorghum growing agro-ecologies. Data were collected from 659 households selected using probability proportional to size (PPS) sampling techniques. Descriptive statistics, heterogeneity analysis and generalized ordered probit econometric model were employed for data analysis. Farmers’ WTP was, on average, 59% higher than the market price set by the government. In the Amhara and Oromia regions, WTP was 67% and 47% above the official price, respectively. WTP varied significantly by age, farm size, income source, and gender. The inelastic nature of WTP and the observed gender gap—where only 40% of female-headed households exhibited WTP at the market price compared to 60% of male-headed households—highlight the need for gender-responsive, non-price interventions such as targeted subsidies, smaller input packages, and inclusive extension services to promote equitable access and uptake of improved sorghum varieties.