Determinants of smallholder wheat commercialization in Lemo District of Hadiya Zone, Ethiopia

Figures & data

Figure 1. Wheat market size, total production, andimport-export estimated volume in Ethiopia.

Source: Compiled from (USDA, 2022)

Figure 2. Map of the study Area.

Table 1. Sampling procedure

Total number of households in Lemo District	Wheat-producing households in Lemo District	Sampled kebele	The total number of households in each kebele	Wheat-producing households in each kebele	The proportion of sampled households	Sampled households in each kebele
33,101	26,172	Bukuna	660	541	29.7%	46
		Dubancho	346	293	16.1%	25
		Hayise	446	385	21.3%	33
		Lambuda	725	601	32.9%	51
		Total	2,177	1,820	100%	155

Source: Authors’ computation from Lemo District report, 2022.

Table 2. The summary of explanatory variables used in the model

Variables	Type of variable	Specification of variables	Expected sign	Empirical studies
Age of household head	Continuous	Age in years	+/-	Abafita et al. (2016), Tafesse et al. (2020), Abate et al. (2021)
Sex of household head	Dummy	1 if male and 0 otherwise	+	Rubhara and Mudhara (2019), Tafesse et al. (2020)
Educational level	Continuous	Formal schooling years	+	Olwande et al. (2015), Tadele et al. (2017), Tafesse et al. (2020), Abate et al. (2021)
Household size	Continuous	Number of household members in the adult equivalent	+/-	Abafita et al. (2016), Tadele et al. (2017), Abate et al. (2021), Tafesse et al. (2023)
Size of landholding	Continuous	Size of total landholding (in ha)	+	Olwande et al. (2015), Abafita et al. (2016), Tafesse et al. (2020), Tafesse et al. (2023)
Wheat quantity produced	Continuous	Quantity of wheat produced (in Qt) in the survey year	+	Kabiti et al. (2016), Andualem (2017), Tadele et al. (2017), Mihretie (2020)
Annual income	Continuous	A household’s total annual income in ETB	+/-	Rubhara and Mudhara (2019)
Livestock ownership	Continuous	Number of livestock ownership in TLU	-	Tadele et al. (2017), Rubhara and Mudhara (2019)
Credit utilization	Dummy	1 if a household took credit and 0 otherwise	+	Abafita et al. (2016), Andualem (2017), Tadele et al. (2017), Tafesse et al. (2023)
Technology adoption	Dummy	1 if a household adopted improved seed, fertilizer, pesticide, irrigation, etc., and 0 otherwise	+	Olwande et al. (2015), Kabiti et al. (2016)
Extension contacts	Dummy	1 if a household contacted extension workers and 0 otherwise	+	Rubhara and Mudhara (2019), Endalew et al. (2020), Mihretie (2020)
Market information	Dummy	1 if a household has access to market information and 0 otherwise	+	Rubhara and Mudhara (2019), Regasa Megerssa et al. (2020), Tafesse et al. (2023)
Distance from market	Continuous	Distance from residence to the nearest wheat market in km	-	Tadele et al. (2017), Endalew et al. (2020), Mihretie (2020)
Membership in cooperatives	Dummy	1 if a household is involved in farmers’ cooperatives and 0 otherwise	+	Mihretie (2020), Andaregie et al. (2021), Tasila Konja and Mabe (2023), Tafesse et al. (2023)

Source: Authors’ summary from literature reviews.

Table 3. The proportion test of dummy variables

Variables	Market participants Freq. (%)	Market non-participants Freq. (%)	Total respondents Freq. (%)	Chi-square value
Sex (1 is being male-headed HH)	117 (84.78)	6 (35.29)	123(79.35)	22.63***
Technology adoption(1 adopter)	67 (48.55)	5(29.41)	72 (46.45)	2.23
Credit utilization(1 credit user)	73 (52.9)	2(11.76)	75 (48.39)	10.25***
Extension services (1 had Ext. contact)	97 (70.29)	4(23.53)	101 (65.16)	14.58
Market information (1 had access to market information)	109 (78.99)	5 (29.41)	114 (73.55)	19.12***
Membership in cooperatives(1 member)	29 (21.09)	3 (17.65)	28 (18.06)	0.10

Source: Survey results, 2022; the parentheses () indicate the results in percentage, and *** implies statistical significance at 1%.

Table 4. An analysis of the t-test for continuous variables

Description of variables	Participants	Non-participants	Overall	t-value
	Mean (Std.)	Mean (Std.)	Mean (Std.)
Age (Years)	45.58 (7.50)	51.88 (9.01)	46.27 (7.90)	3.19***
Educational level (Years)	4.72 (3.47)	0.47 (0.87)	4.25 (3.54)	5.02***
Household size (AE)	5.62 (1.63)	6.35 (1.99)	5.70 (1.68)	−1.70
Size of landholding (ha)	0.94 (0.46)	0.43 (0.18)	0.88 (0.47)	4.50***
Quantity of wheat produced (Qt)	16.30 (7.32)	8.88 (2.47)	15.49 (7.33)	4.14***
Annual income (ETB)	75670 (25534)	51529 (9862)	73023 (25444)	−3.85***
Livestock (TLU)	3.61 (1.36)	2.86 (1.05)	3.52 (1.30)	−2.45
Market distance (km)	5.41 (1.03)	5.68 (1.33)	5.44 (1.06)	0.97

Source: Own survey results, 2022; the parentheses () indicate standard deviation;

*** shows statistical significance at 1 %.

Table 5. The result of the respondents’ wheat production statistics in the study area

Description of variables	Minimum(in Qt)	Maximum(in Qt)	Mean (in Qt)	Standard Deviation	Average productivity(in Qt/ha)
Wheat produced	5	46	15.49	7.33	27.25

Figure 3. Frequency distribution of respondent smallholders in each category.

Table 6. Determinants of smallholder wheat commercialization (Tobit regression model results)

Variables	Marginal effects (dy/dx)	Standard error	Z	P >|Z|
Age of the household head	−0.0028	0.0020	−1.42	0.156
Sex of the household head	0.1003***	0.0378	2.65	0.008
Educational level	0.0028	0.0069	0.40	0.686
Household size	−0.0217**	0.0089	−2.44	0.015
Size of landholding	0.0318	0.0698	0.45	0.649
Wheat quantity produced	0.0026	0.0039	0.67	0.505
Technology adoption	0.0848***	0.0314	2.70	0.007
ln (annual income)	−0.1178	0.0795	−1.48	0.138
Livestock ownership	0.0076	0.0122	0.62	0.536
Credit utilization	0.0659**	0.033	2.00	0.046
Extension contacts	0.0144	0.0401	0.36	0.720
Market information	0.0859**	0.0409	2.10	0.036
Distance from market	−0023	0.0127	−0.18	0.855
Membership in Coop	0.0816**	0.0332	2.46	0.014
Constant	1.6967**	0.8399
Sigma	0.1615	0.0101
Number of observations	155
Log-likelihood	33.402
LR chi^2(14)	93.88
Prob>chi^2	0.000
Pseudo R^2	3.4670

Source: Survey results, 2022;

*** and ** imply significance at 1% and 5 %, respectively.

USDA. (2022) . USDA/Foreign Agriculture Service. Addis Ababa.

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Data availability statement

The data that support the findings of this study are available from the corresponding author upon reasonable request.