ABSTRACT Ethiopia is mainly an agrarian country with the huge majority of the people directly and indirectly depending on agriculture and hence, agriculture plays an essential role. For agricultural sector development, seed is a basic and vital element to increase production and productivity using other complementary inputs and modern systems. This study is intended to analyze determinants of direct hybrid maize seed demand and system performance in the study area and to explain the problems of farmers in relation to the quantity of seed purchased the system in Mecha Woreda, ANRS. Two stages sampling technique was used in sampling procedures and followed to select 150 respondents. Semi structured interview schedule and questionnaires were used for collecting the essential quantitative and qualitative data from the sampled respondents and seed suppliers respectively. To address the objective of the study, descriptive statistics and econometric models were employed. Multiple Linear Regression models were employed to analyze the determinant factors affecting the quantity of seed purchased. Among the different variables hypothesized to determine the quantity of seed purchased, seven variables had statically significant effect to the quantity of seed purchased. These are: household head age, educational level of the household head, extension contact, landholding size, distance from the distribution store, seed cost and quantity of fertilizer. From the survey result direct seed marketing system shortened the seed chain, avoid the seed bureaucratic distribution. The system avoids seed leftover, supply quality seed on time with affordable price and with accountability and traceability level (in seed quality problems). It is recommended that, the existing extension service should be strengthened in a way that working in agreement with relevant actors to bring about change for efficient and effective delivery of agricultural inputs/improved seed and fertilizer. As to the enabling policy environment, the government should also consider a maize pricing policy and access to market policies and should subsidize the seed producers in different ways. Key words: Direct seed marketing system, Hybrid maize seed, multiple linear regression two stage sampling