Abstract:
Identifying factors affecting smallholder farmers maize production and market participation is the
most important activities to achieve development. It is still hindered by subsistence oriented
production system though there have been efforts to transform in to market oriented production
system. However, in most cases smallholder farmers encounter lots of strenuous challenges such
as lack of extension service and market information. Consequently, this study attempted to
contribute to the consideration of factors affecting smallholder maize production and market
participation in case of dedo district. A two stages random sampling technique was applied to
select 192 sample maize producers, from 3500 total population of four kebeles to collect primary
data through semi structured questionnaires. Both descriptive statistics and inferential analysis
model were used for data analysis. Ordinary least square and two stages Henchman were applied
to identify the factors affecting maize production and market participation respectively. The result
of linear regression models shows that ages, education level, total lands owned, farming system,
farm experience, family size, extension contact and crop rotation positively and significantly
affect quantity of maize production whereas plot distance, soil and off-farm activities negatively
and significantly affect maize production. Result of probit model analysis showed that ages,
education, farming experience, frequency of extension contact, cultivated land for maize, means
of transportation and access to market information positively and significantly affect farmers
decision of maize output market participation :whereas participation on off-farm activities was
found to affect the participation decision negatively and significantly. According to henchman
second stage of truncated result, education level of the household head, land cultivated for maize
and farm experience have significant and positive effect in the volume of maize marketed supply:
whereas gender, credit accessibility, distance to the nearest market and off-farm activities were
found to have negative and significant effects on volume of maize marketed supply. Therefore, this
study recommends that, for the purpose of maize production, market participation and extent of
participation among maize farmers, proper marketing infrastructure like maize market center
should be put in place. The government and other policy makers should increase production and
marketing information as well as ability of maize farmers through avenues like mass media,
extension service, and other means of strengthens capability.
