In an attempt to assess the supply behaviour ofrnsubsistence peas ants , this study concentrated on somernteff (Eragrostis teff) growing peasant associationsrnwithin Shoa Adminstrative Region . The associationsrnwere selected on the basis of their open market teffrnprice levels and the necessl1ry information was obtainedrnthrough a survey based on simple random sampling .rnRegression and covariance analyses were used forrnanalyzing the data . The result of the productionrnanelysis showed that the peasants are efficient inrnutilizing the resources (traditional and non-traditional)rnat their comnand and henc a superior alternative tornincrease production lies on measures intended tornraise the consumption of non- tradional inputs. Thernanalysis of market behaviour also showed that marketrnsupply o f teff is an increasing function of output .rnby and large, the solution to the present food problemrnseems to be best served by policies which increaserninvestment and improve the incentive structure inrnfavour of the peasant sector .