PRODUCTION EFFICIENCY, COMMERCIALIZATION AND ITS IMPACT ON FOOD SECURITY OF SMALLHOLDER PULSE PRODUCERS IN EAST GOJJAM ZONE, AMHARA REGION, ETHIOPIA

This study examines pulse producers production efficiency, commercialization and its impact on food security using a cross-sectional data obtained from 385 randomly and proportionately selected sampled households from East Gojjam zone, Amhara National Regional State of Ethiopia. Data were analyzed using descriptive statistics and econometric models including two limit Tobit, double hurdle, Binary Logit, Seemingly Unrelated Regression and Generalized Propensity Score. The mean technical, allocative and economic efficiency scores were found to be 72, 56 and 40 percent, respectively. This indicated that there exist substantial inefficiencies in pulse production in the study area. Technical, allocative and economic efficiencies are significantly affected by sex, education level, extension services, landholding size, access to improved seed, market information, livestock holding, off/non-farm participation and distance to development office. The mean commercialization index for the sample households was 0.345 which shows that on average a household sold 34.5% of his/her pulse produce. As a result, farm households’ output commercialization levels fall in semi-commercial farming system. About 36.9%, 47.3% and 15.8% of the sampled households were categorized under low, medium and high commercialization levels respectively. The results of the first-hurdle showed that sex, landholding size, access to improved seed, market information and quantity of pulse produced influenced households’ decision of market orientation behavior positively and significantly whereas distance to main road influenced it negatively. On the other hand, the results of second-hurdle indicated that the level of crop market orientation was positively and significantly influenced by education status, landholding size, extension contact, market information and quantity of pulse produced but it was influenced by distance to market negatively and significantly. Two limit Tobit model result showed that households’ pulse output commercialization was positively and significantly influenced by access to improved seed, cooperative membership, landholding size, market information access and quantity of pulse produced and it was negatively and significantly influenced by family size and livestock owned. The survey result also revealed that 65.5% of the sample households were food insecure and 35.5% were food secure. In addition, the mean energy available per AE for the sampled households was 1625.5 Kcal. Food security of the farm households was positively and significantly influenced by credit access, chemical/pesticide used and income from pulses whereas it was negatively and significantly influenced by family size and distance to market. The simultaneous estimation result showed that there existed a positive relationship among commercialization with efficiency and food security. Moreover, the Generalized Propensity Score model result indicated that commercialization xvi has a positive and significant impact on food security of the smallholder pulse producers. Based on the findings, the study suggests that the government and stakeholders should focus on strengthening the provision of formal and informal education, promoting and empowering females, strengthen and clout policies on improving rural family planning ,strengthening the existing extension package program, strengthen the existing farmer cooperatives to reinforce farmer-to-farmer knowledge sharing, enhancing farmer’s resource endowment, promotion of improved pulse varieties, improving crop-livestock production system and using recommended agronomic practices in pulse farming.