Rehima, M.1 and Dawit, A.2
This research attempted to examine red pepper marketing in Alaba and Siltie with the specific objective of identifying factors affecting volume of pepper supply. Heckman two stage model was used to investigate factors affecting pepper market participation decision and quantity supply of pepper. One of the most important variables influencing the decision to participate in pepper market was pepper production. Consequently, extension work should focus on encouraging farmers to participate in pepper production especially, there was a need to increase disease resistant variety and disseminate these technologies to potential areas. Cereal crop yield was adversely affected probability of market participation. Keeping their specialization and social role in pepper production potential areas is necessary. Moreover, pepper production and extension contacts were the determinant factors of the quantity of pepper supplied. Therefore, policies that would improve pepper production capacity by identifying new technologies and create stable demand for surplus production would enhance farmers’ decisions on marketable surplus. Non farming income and number of livestock affected the quantity of pepper supplied negatively. Thus, policy should be designed on integrated farming system to minimize income risk and to improve the livelihood of the farmers.
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