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Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia

Contract farming (CF) has been one of the strategies employed to improve the commercialization of malt barley and substitute imported malt barley in Ethiopia, in addition to addressing production and marketing challenges. Additionally, the anticipated results include meeting domestic malt barley demand, enhancing the welfare of smallholder farmers, and conserving the nation's foreign exchange. However, there is a relatively low rate of participation in CF, that has yet to be thoroughly studied. Accordingly, the purpose of this study was to identify the variables influencing the level of participation in CF among malt barley farmers in Northwestern Ethiopia. A semi-structured interview schedule was used to collect data from 398 (189 CF participants and 209 non-participants) malt barley farmers randomly selected from 9 kebeles in 2 districts selected by multistage sampling procedures. The inferential statistics highlighted marked differences and associations between malt barley CF participants and non-participants. According to the results of a probit model, CF participation of malt barley farmers was positively correlated with the frequency of extension contact, field day and training participation, cooperative membership, access to credit, and household size. To strengthen and enhance the CF participation of malt barley farmers, the government and non-governmental organizations, and other concerned bodies should improve cooperative and financial performance and the agricultural extension system.

Malt Barley, Contract Farming, Participation, Probit, Ethiopia

APA Style

Abebe Dagnew, Degye Goshu, Lemma Zemedu, Million Sileshi. (2023). Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia. American Journal of Theoretical and Applied Business, 9(2), 44-56.

ACS Style

Abebe Dagnew; Degye Goshu; Lemma Zemedu; Million Sileshi. Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia. Am. J. Theor. Appl. Bus. 2023, 9(2), 44-56. doi: 10.11648/j.ajtab.20230902.14

AMA Style

Abebe Dagnew, Degye Goshu, Lemma Zemedu, Million Sileshi. Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia. Am J Theor Appl Bus. 2023;9(2):44-56. doi: 10.11648/j.ajtab.20230902.14

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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