Международный журнал экономики и менеджмента

Dynamics of Formal Seed Utilization and Use Intensity: Evidence from Wheat Growers in East Gojjam Province, Northwestern Ethiopia

Abstract

Hunegnaw Amare Tesfaw

Commercial agriculture is driven by modern agricultural inputs use despite rate of adoption and use intensity is variable. This study investigates the major factors attributed to variation in households’ participation and intensity of formal seed use by taking 4 districts as a case in East Gojjam, Northwestern Ethiopia. A total of 250 farmers were selected using 3 stages random sampling and data were processed with Heckman Two-Stage Model using STATA. The result showed that households participation in formal seed use was significantly affected by wheat land and the number of oxen (positively, P<0.01), farming experience (positively, P<0.1) and age and off-farm income (negatively, P<0.01 and P<0.05 respectively). Similarly, intensity of formal seed utilized was significantly influenced by size of wheat land, number of oxen and frequency of extension services (positively, P<0.01) and sex and family size (positively, P<0.05). The existing seed supply chains are inefficient, seed systems are institutionalized and there are weak initiatives for community based seed systems. Strong extension services, empowering females with financial incentives and encouraging farmer based seed multiplication system can improve farmers’ tendency of improved seed use. Reduction of monopolistic distribution of seeds can lead to sufficient supply and optimum prices.