Level of Vegetable Commercialization and Its Determinants Among Smallholder Farmers in Northwestern Ethiopia

ABSTRACT This study examined the levels of commercialization and determinants for potato, onion, and tomato among smallholder farmers in Northwestern Ethiopia. A total of 310 farm households were selected using a multi stage sampling procedure to collect primary data. The household commercialization index was used to measure the commercialization levels of potato, onion, and tomato. Beta regression and two‐limit Tobit models were employed to investigate the determinants of commercialization levels for these vegetables. The study found that onion and tomato production are highly commercialized, while potato production is more balanced between household consumption and market sales. Factors influencing commercialization levels varied among the vegetables. For onion, factors such as sex of household head, education level, access to market information, and access to credit had positive effect, while distance to extension office and distance to market negatively affected commercialization levels. Potato commercialization was influenced by education level, frequency of extension contacts, and access to credit, with distance to market and cooperatives negatively affecting commercialization. Tomato commercialization was positively affected by farming experience, land size and livestock ownership, market information, number of extension contacts, and access to credit, while household size and distance to market had negative effect. This finding suggests that male headship and better access to agricultural resources lead to an increase in commercialization levels. Moreover, strengthening cooperatives, access to credit and extension services to promote vegetable commercialization in the study area are required.