THE ROLE OF ROAD TRANSPORT SERVICES ON SMALL-HOLDER FARMERS’ AGRICULTURAL PRODUCTIVITY IN CASE OF ABESHIGEWOREDA GURAGE ZONE, CENTERAL ETHIOPIA

Abstract

Agriculture plays a vital role in Ethiopia's economy, with road transport services significantly influencing the transition from subsistence to commercial agricultural production. This study examines the impact of road transport services on the agricultural productivity of smallholder farmers in Abeshige Woreda, Gurage Zone, Ethiopia. Using a mixed-method research design, data were collected from 195 households through structured questionnaires and analyzed using descriptive and econometric methods. Findings reveal that transport infrastructure, road quality, and accessibility are critical factors in improving agricultural productivity. Only 23.59% of the roads in the study area are asphalted, and 45% of transport services are accessible to farmers, leading to challenges in transporting agricultural inputs and outputs. Respondents indicated that poor transport access increases transaction costs and limits market participation, with 72.31% reporting high transport costs as a significant constraint. The study used Ordinary Least Squares (OLS) regression to evaluate the influence of explanatory variables such as income level, landholding size, cost of inputs, and road accessibility. Key findings highlight that better road quality and accessibility positively impact agricultural productivity, allowing farmers to reduce transaction costs, access timely market information, and adopt market-oriented practices. Conversely, long distances to markets and high input costs negatively affect productivity. The study concludes that improving transport infrastructure and reducing transport costs can enhance smallholder farmers' productivity, ensuring better livelihoods. Recommendations include investing in road development, ensuring timely road maintenance, and enhancing market accessibility to foster sustainable agricultural growth.