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Abstract
Teff, wheat and rice are becoming important market oriented crops in Ethiopia. This
study aims at measuring the level of market orientation of households in these crops,
identifying the important market places and market outlets used by producers, and
analyzing the determinants of market orientation in these crops. Results are based on
analysis of data collected from community (peasant association) and household
surveys in three districts in three regional states of the country in 2005. Analysis of
descriptive information and econometric analysis are used. About 65 - 77% of
households produce these market oriented commodities in the study areas, on about
27 – 44% of the total cultivated land. About 47 – 60% of the produce of these market
oriented commodities is sold. The important market places for producers of these
commodities are the district town markets and markets located at the peasant
associations within the district. Wholesalers and retailers are the most important
buyers from producers. Average distance to market places for these commodities is
about two walking hours. Econometric analyses show that market orientation of
households is affected by a host of factors related to household demographics,
household endowments of human and physical capital, access to institutional
services, and village level factors. Size of cultivable land and traction power, and
household labor supply are important factors that induce households to be market
oriented. While household size tends to favor food security objectives, number of
dependents is associated with market orientation. Population control measures could
contribute to market orientation through their effect of reducing household subsistence
requirements. Our results also imply that interventions to improvements markets
operations in order to benefit producers need to consider the operation of district level
markets. Improving the operations of factor markets of land, traction and farm labor
could contribute to enhancing market orientation of farm households. Special attention
is needed to female headed households in the process of commercial transformation
of subsistence agriculture. The development and institutionalization of marketing
extension warrants due consideration.