Commercialization of Smallholders: Is Market Participation Enough?

The literature on commercial transformation of smallholders makes little distinction between market orientation (production decision based on market signals) and market participation (sale of output). However, policy implications to enhance commercial transformation of subsistence agriculture drawn from the analysis of the determinants of household market participation alone could be inadequate, if in fact, the determinants of market orientation and market participation are not the same or not consistent with each other. This paper analyzes the determinants of market orientation and market participation in Ethiopia separately and examines if market orientation translates into market participation. Empirical results show that the determinants of market orientation and market participation in crop output markets are not the same, but market orientation translates strongly into market participation. Results imply that while interventions to enhance market orientation could also help in promoting market participation, interventions to promote market participation may not be adequate to promote market orientation.commercialization, smallholders, market orientation, market participation, Marketing, C21, C24, Q12, Q13,

Crop-Livestock Interactions in Smallholders’ Market Participation: Evidence from Crop-Livestock Mixed Systems in Ethiopia

Most studies on smallholder market participation decisions analyze crop or livestock market participation separately. However, in mixed crop-livestock farming systems, smallholders’ participation decisions in crop and livestock markets may not be separate as a household’s position in one market may be influenced by its position in the other. Where there is limited income from off-farm and/or non-farm activities, household cash requirements for crop production or household consumption are usually met by selling livestock. Similarly, livestock purchase is usually financed by income from crop sales. However, to what extent the position in one market influences the other is still not well explored in the literature. The aim of this paper is to investigate the interactions of crop and livestock output market participation of smallholders, by analyzing the determinants of household market participation positions in both commodities simultaneously. Household level data collected in 2009 from 1075 sample households in ten districts of the four major regions of Ethiopia is used for the analyses. Using simultaneous equation models, we test whether the position of being a net seller in crop market is affected by the position of being a net buyer in the livestock market, and vice versa. Results show that the decision to be a net buyer in crop market is associated positively with the decision to be a net seller in livestock market. Similarly, the decision to be a net seller in crop market is associated positively with the decision to be a net buyer in livestock market. This implies that crop purchase is financed by livestock sale and excess income from crop sale is saved in the form of livestock asset. Thus, policies/strategies enhancing smallholders’ participation in crop and livestock markets in mixed crop-livestock system should pay attention to the production and marketing of both commodities simultaneously.market participation, market position, crop-livestock system, smallholder, Ethiopia, Farm Management,

Factors that affect the adoption of improved maize varieties by smallholder farmers in Central Oromia, Ethiopia.

This study aims at identifying factors which affect the adoption of improved maize varieties in three woredas in Central Oromia, Ethiopia. The study utilized cross-sectional farm household level data collected by CIMMYT from 300 randomly selected sample households in 2012/13. Both descriptive and econometric methods have been used to analyze the data. The descriptive statistics were utilized to compare adopters and non-adopters. The logit model was employed to assess the adoption determinants.The descriptive analyses results show the existence of significant mean and proportion difference between adopters and non-adopters in terms of farmer characteristics. Adoption of the improved maize varieties among households was found to be positively influenced by adult-literacy, family size, livestock wealth, access to output market and credit access for the new varieties. On the other hand, farmer associations, distance to main markets and fertilizer credit negatively influenced adoption. Thus, the finding of this study revealed that educating farmers, strengthening extension services, improving farmer associations and improving market opportunities are some of the measures that need to be taken to enhance adoption of improved maize varieties by farmers. Keywords: improved maize varieties, small-holder farmers, adoption, determinants, Ethiopi

Smallholder commercialization: processes, determinants and impact

This paper reviews the literature on smallholder commercialization. It explores the conceptual developments in smallholder commercialization, methodological advancements in measuring the degree of agricultural commercialization at household level, and the impacts of commercialization on different socio-conomic groups. The paper also investigates policy recommendations made by different authors aimed at facilitating the smooth process of transforming smallholder agriculture from subsistence system to a fully commercialized farming. Based on the review, the paper throws light on conceptual and methodological gaps in relation to smallholder commercialization, and finally, draws general conclusions and directions for future research

Impact of Input and Output Market Development Interventions on Input Use and Net Income of Households in Ethiopia

This study evaluated the impact of input and output market development interventions of the IPMS project at Alaba and Dale PLW, SNNPR on input use, productivity and total net income of the participant households. The study has used cross-sectional sampled household survey of 200 households which was taken from both Alaba and Dale districts. A propensity score matching method was applied to assess the impact of the project on the treated households. The intervention has resulted in positive and significant effect on level of input use on the treated households. This increased use of inputs enabled participants to earn on average a total net income of about birr 1,483 at Alaba and birr 2,228 at Dale form the commodities of intervention over their counter parts. Based on the results obtained scale out of such market development interventions has a paramount importance for economic development of the country. Key words: Input and output market development intervention, propensity score matching, Pilot learning wored

Impact of Input and Output Market Development Interventions in Ethiopia

This study estimated the impact of input and output market development interventions of the IPMS project at Alaba and Dale PLW, SNNPR on institutional and organizational changes of agricultural markets, marketed surplus and market orientation of the participant households. The study has used cross-sectional sampled household survey. A propensity score matching method was applied. The intervention has resulted in positive and significant effect on marketed surplus and to be market oriented in contrast to the non-participant households on top of improving institutional and organizational setup of agricultural markets in the study areas. Based on the results obtained scaling out or the extension of such market development interventions, both input and output market, has a paramount importance for the achievement of growth  and transformation plan  of the country in the short run and welfare improvement in the long run. Key words: Input and output market development intervention, propensity score matching, Pilot learning wored

Gender, rainfall endowment, and farmers’ heterogeneity in wheat trait preference in Ethiopia

Paper presented at the 7th African Conference of Agricultural Economics, 18-21 September 2021, Durban, South Africa. More information on the conference can be found here: https://www.acae2023.org

Drivers of Agricultural Mechanization and Mechanized Conservation Agriculture: Synthesis from Experience of Successful Countries

Summary Based on literature, this paper reviews drivers of agricultural mechanization and mechanized conservation agriculture (CA) focusing on the experience of selected countries where mechanization and CA have been adopted at a large scale. The synthesis followed gradient approach where drivers of mechanized CA were evaluated considering different types of farm power use (mechanical, draft animal and manual), tillage types (conservation and conventional) and farm size (large and small holding). In the analysis, emphasis was given to major drivers of mechanized CA; namely, policies, markets, and institutional arrangements. Review results show that the expansion of mechanized CA is less proportionate across the World. Wider expansion has been observed in Latin America, North America, Australia, and South Asia regions whereas countries in sub-Saharan Africa (SSA) are the least in terms of the adoption of mechanized CA. The success of mechanized CA in the above indicated regions are mainly related to the availability of conducive markets, institutional and policy environments and the integration of diverse actors that helped in putting the necessary inputs, information and knowledge together. These all assisted in creating incentives to local CA-related machinery manufactures, machinery importers, distributors, local service providers, and farmers. Generally, literature supports that the expansion of mechanized CA is strongly related to the development, distribution and use of CA related farm machineries through the integrated efforts of different actors including private companies, international and national research institutes, government and non-government organizations, farmers, and extension service providers