Abstract

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This study assessed the determinants of smallholder commercialization and the status of commercial farms in terms crop type, cropping system and technology use in Sheka, Kaffa and Bench Maji zones using descriptive statistics and linear regression model. The result showed that the average smallholder commercialization in the study area was 60%, which is by far above the national average, 35%. The average marketability index of coffee, ginger, turmeric, maize and sorghum are found to be 80%, 83%, 85%, 51% and 35%, respectively. The result also indicate that the extent of smallholder commercialization is positively influenced by household education and farming experience, total harvest and the marketed proportion of high value crops, whereas negatively determined by family size, land holding, distance to village market, source of fertilizer and improved seed. Regarding commercial farms, more than 94%, 92% and 50% of commercial farms in Sheka, Kaffa and Bench Maji zones respectively, engaged in growing of high value crops. Given that these crops are one of the major crops being grown by smallholder farmers, strengthening the linkage between smallholder farmers and commercial farms could enhance the commercial transformation of agriculture in the study area. Besides, that about 90% and 93% of commercial farms in Sheka and Kaffa zones respectively follow sole cropping system, whereas 60% of commercial farms practiced the same system in Bench Maji zone. Moreover, commercial farms in the study area operate farming activity below expected level in terms of modern input use. Except maize, rice, ginger, turmeric, coffee and tea farms, the majority of commercial farms did not use improved crop technologies.

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