Factors influencing the participation and level of avocado export market: A double-hurdle regression approach from northwest Ethiopia

Abstract

Market participation is essential for enhancing the livelihoods of smallholder farmers in developing nations including Ethiopia. While avocado exporting recently emerged in the North Mecha District, participation rates remain low, and the factors influencing this engagement remain under-researched. This study examines the factors influencing of avocado producers' participation in the export market and the extent of that participation. Using a mixed-methods approach, data were collected from 305 households through purposive and systematic random sampling. Descriptive statistics and the Double-hurdle model were applied for data analysis. Descriptive results reveal that export market participants were significantly younger (44 years) and better educated (3.4 years of schooling) than non-participants, while also producing nearly four times the quantity of avocados (2,061 kg vs. 562 kg). The double-hurdle model reveals that the initial decision to participate is significantly influenced by the household head's sex, distance to cooperatives, farm size, livestock holdings, cooperative membership, extension contact frequency, market information, and total production volume. Furthermore, the intensity (level) of participation is determined by marital status, credit access, cooperative membership, market information, and production volume. The study recommends policy interventions focused on strengthening cooperative infrastructure, improving credit and extension services, and expanding land allocation for avocado production to strengthen export engagement.