Estimation of Smallholder Farmers’ Demand for Certified Seed: Evidence from Wheat and Tef Seed Systems in Ethiopia

Abstract

Previous studies in Ethiopia have focused on the adoption of improved tef and wheat varieties and complementary inputs. However, there is a gap in research on the factors that influence the demand for certified seeds. This study aims to assess the factors that influence farmers' decisions to purchase certified seeds and the quantity of seeds purchased by tef and wheat farmers. Data were collected from 186 randomly selected sample farmers using a multistage sampling approach. A double hurdle model was used to analyze the data, considering that the decisions to participate in certified seed purchase and the quantity of seeds purchased are influenced by different factors. The study found that household size, tef farming experience, proximity to the cooperative office, age, and land size were significant factors in the likelihood of purchasing certified tef seeds. Additionally, education level, distance to the extension office, certified wheat seed price, and extension contacts influenced the decision to purchase certified wheat seeds. Moreover, education level, land size, certified tef and wheat seed price, and livestock ownership significantly influenced the quantity of certified tef and wheat seeds purchased. In conclusion, the study suggests that enhancing farmers' skills, ensuring local seed availability through collective actions, and implementing a seed price subsidy program.