Abstract

In Ethiopia, cereal production and marketing are the means of livelihood for millions of households. Teff is the major cash crop grown in the study area mainly for market. However, the teff marketing has not been given due attention, which has potential production volume and marketability. The objective of this paper is to identify the factors affecting market participation and intensity of teff marketed surplus. A two stage random sampling procedure was used and a total of 154 smallholder farmers were randomly and proportionally selected to collect both primary and secondary data. Heckman two-stage model was used. The first stage model result indicated that lagged price, family size and credit access were factors that influenced market participation and second stage model result indicated that amount of teff produced, family size, land size, livestock and age were factors that determined the extent of teff marketed. Providing adequate size of credit, improving production of teff which enhances its productivity and relying on intensive cultivation are strategies to increase farmers' participation in teff marketing.

Key words: Heckman two-stage model, teff, market participation and intensity of participation.