scholarly journals Analysis of Maize Commercialization among Smallholder Farmers: Empirical Evidence from North Western Ethiopia

Author(s):  
Agerie Nega Wassihun ◽  
Fikeremaryam Birara Feleke ◽  
Tadie Mirie Abate ◽  
Gebrehiwot Abebe Bayeh

Abstract Agricultural commercialization is a process of transformation from subsistence farming system to market oriented production system. Promoting smallholder farmers to produce beyond their consumption and enabling them to be profit oriented should be given priority in order to foster the economic growth in developing countries where agriculture is the pillar of the economy and smallholder farmers are the largest section of the country like Ethiopia. However, due to a number of reasons smallholder farmers’ level of commercialization is very low and insignificant. There are only few studies conducted about agricultural commercialization in Ethiopia but the studies are not focused to specific crop. Therefore, the aim of this study was to analyse the factors that determine market participation and degree of commercialization by smallholder maize producers in North Western Ethiopia. Data were collected from 385 smallholder maize producers in three districts where maize is produced potentially through multistage sampling method. Interview schedule, focus group discussion and key informant interview were used to collect the required primary data. In order to achieve the study objectives, Tobit model was employed to analyse both market participation and intensity of commercialization. From the analysis education level, livestock holding, frequency of extension contact, training, off/non-farm income activity, quantity of maize and lagged price were found to have significant effect on market participation whereas intensity of commercialization was significantly influenced by education level, livestock holding, training, frequency of extension contact, off/non-farm activity, quantity of maize produced and lagged price. Finally based on the findings, smallholder maize producers should be supported regularly by extension agents in order to increase their practical skills which results enhancement of their market participation and intensity of commercialization.

2019 ◽  
Vol 8 (1) ◽  
Author(s):  
Abebe Birara Dessie ◽  
Tadie Mirie Abate ◽  
Taye Melese Mekie ◽  
Yigrem Mengist Liyew

Abstract Background Ethiopia is the homeland of various crops due to its diverse and suitable agro-ecological zones. As a result, smallholder farmers grow multiple crops on a small piece of land both for consumption and commercial purposes in different portions of Ethiopia, including the northwestern part of the country. However, crop diversification status and extent of farmers were not well understood. Therefore, this study examined determinants of crop diversification in a pepper-dominated smallholder farming system in northwest Ethiopia. Methods Primary data was collected through a semi-structured interview schedule administered on 385 crop producers selected using a systematic random sampling technique. Moreover, the survey was supplemented by using secondary data, focus group discussions, and key informant interviews. Methods such as the descriptive, inferential statistics, and econometrics model were used for analyzing the data. Results The average crop diversification index was 0.77, and most smallholder farmers (92.46%) used crop diversification as a strategy for risk reduction, nutritional improvement, consumption, and commercial needs. Moreover, the Tobit model result revealed that the status and intensity of crop diversification were significantly influenced by farmland, sex, age, land fragmentation, distance to development center, market distance, and non-/off-farm income participation. Conclusion Generally, most farm households used crop diversification as a norm and best strategy for minimizing risk, income source, nutritional and livelihood improvement. Therefore, crop producers, agricultural experts, the Ethiopian government, and partner organizations should give special attention to extension service, market, and infrastructure development to enhance the role of agricultural diversification for households.


2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Mengistie Mossie ◽  
Alemseged Gerezgiher ◽  
Zemen Ayalew ◽  
Asres Elias

Abstract Background While it has identified that linking smallholders in the agri-food value chain remains to be a promising strategy to get out of the poverty trap in many developing countries, less is known about the food security implications of smallholders’ participation in the fruits value chain. This paper examines the effects of apple and mango smallholder farmers’ participation along the value chain, focusing on their household food security in north-western Ethiopia. Methods Primary data for the study were obtained from a random sample of 384 households, 211 of which are fruit value chain participants, and the remainder are non-participants. The study used the propensity score matching (PSM) method to establish a causal relationship between the participation of the fruit value chain and changes in household food security. Results and conclusions Results indicate that participation in the apple and mango value chain has a robust and positive effect on the food security of smallholders as measured by household food consumption in kilocalorie. The unconfoundedness and overlapping assumptions were fulfilled by applying the nearest neighbor and kernel-based matching algorithms. The study confirms that the more apple and mango farmers join the value chain, the higher their household food intake becomes. Support for fruit farmers is, therefore, a promising policy approach that can help improve household food security in rural Ethiopia.


Author(s):  
Emmanuel Kiprop ◽  
Cedric Okinda ◽  
Samuel Wamuyu ◽  
Xianhui Geng

Smallholder farmer collective action not only provides a solution to farmer’s constraints such as lack of market accessibility and inability to take advantage of available market opportunities but also holds the potential to diversify their incomes and increase agricultural productivity translating to enhanced food security and poverty eradication. This research aimed at investigating the role of farmer marketing groups in smallholder market participation using a sample of 198 farmers, sampled from a population of 395 smallholder improved indigenous chicken farmers in Baringo, Kenya, using Probit and Tobit models. The study findings established that farmers' involvement in collective action is predominantly determined by; Education level, household size, distance to extension, cost of transport, and the price per chicken. The extent of participation in improved indigenous chicken markets was positively related to; education level of the household head and farm size while negatively and significantly influenced by off-farm income and the cost of farming. The results of this study provide evidence that farmer collective action has the potential of strengthening market participation among smallholder farmers.


2021 ◽  
Author(s):  
MERSHA TEWODROS GETNET ◽  
Mengistu Ketema ◽  
Bamlak Alemu Alamirew ◽  
Girma Demilew

Abstract Background: Regardless of the persistent image of rural areas in Ethiopia as a continent of subsistence farmers, over the past decades, there had been an outstanding tendency of rural economic diversification. Numerous motives prompt households and individuals to expand the range of assets, incomes, and activities. This paper is devoted to characterize rural households’ livelihood portfolios and examine the determinants of income diversification using primary data collected from two agro-ecological zones in north-western Ethiopia. To analyze, the data both descriptive and inferential statistics were used. Levels of household livelihood diversification were measured using Simpson Diversification Index (SDI). Censured regression models were employed to identify determinant factors affecting livelihood diversification. Result: The result confirmed that households in the study area collected a significant portion of their income from the diverse farm and off-farm sources. Diversification into off-farm sources contributed 35% to total household income. The result confirms that factors linked to household livelihood diversification measured in Simpsons Diversification Index (SDI) are significantly determined by household head educational status, access for tanning, age of household head, family size, livestock ownership, ox ownership, land owned, the proportion of infertile land, access for road and agro-ecologies. Conclusion: From these results, therefore due attention should be given to strengthening the role plaid by off-farm income in a rural area to facilitate the countries goal of a transformation. Therefore, policy measures need to be directed towards creating conducive conditions through the provision of education and tanning and improve households’ access to credit and improve access to a road.


2018 ◽  
Vol 10 (3) ◽  
pp. 204
Author(s):  
Justus I. Emukule ◽  
Mary J. Kipsat ◽  
Caroline C. Wambui

Market participation in sub-Saharan Africa has been assessed mainly based on already producing households by looking at whether they sold or not, and if they sold, what quantities. The objective of this study was to determine the socio economic factors that influenced households’ decisions on market participation in terms of dairy cow ownership and quantity of milk sold while taking into consideration the non-producers using Heckman two stage model. The model allowed for not only determination of the effects of household characteristics on volume of milk surplus sold by already producing households but also drew inferences on the effect of household characteristics on probabilities of dairy cow ownership whileadding new information to literature by generating the truncation effect. A multistage sampling technique was used to select 544 producer and non-producer households and primary data collected using a semi structured interview schedule through personal interviews. From the results, probit marginal effects for dairy cow ownership were associated positively and statistically significant with household size, the level of education and land size owned by the households. The Heckman selection estimates revealed that increased number of dairy cows per household positively influenced the volumes of milk sold, while household size influenced negatively the quantity of milk sold. In conclusion, milk sales conditional on dairy cow ownership suffered from negative selectivity bias whereby a household with sample average characteristics who selected into dairy cow ownership secured 40% lower quantity of milk sold than would a household drawn at random.


Author(s):  
Christopher Nwafor

The study examined key socio-economic characteristics of smallholder farmers identified for their contribution to market participation. These variables include gender, age, marital status, level of education, household size, additional income, membership of cooperative, herd size and use of ICTs. Using a structured questionnaire, primary data was collected from a total of 129 respondents which was analysed with the Statistical Package for the Social Sciences, and presented using cross-tabulations, percentages and count data. The result indicates that age, additional income, cooperative membership and use of ICTs were important variables which contributed to market participation among respondents. The study also made applicable recommendations as the findings may have relevance for future research, policy and practice for commercializing smallholder farmers.


Author(s):  
Mohammed Adam Abbas Hamad ◽  
Muneer Eltahir ◽  
Adam Elradi Mohamed Ali ◽  
Adam Muhana Hamdan ◽  
Amgad Ahmed Hamad Elsafi

The access to agricultural information in Sudan continues to be challenging to farmers due to use of inadequate sources and traditional extension approaches. The rapid growth of smart-mobile phones usage in developing countries resulted in several advantages compared to other alternatives in term of costs, geographic coverage and ease of use. This research was conducted in North Kordofan Sate to explore the role of smart-mobile phone in accessing agricultural information. Primary data were obtained by structured questionnaires and focus group discussion through participatory rural appraisal and observation while secondary data were collected from scientific journals, books and authenticated web sources. A number of 230 respondents (10% from total farmers) were interviewed and five focus group discussions were done. Statistical Packages for Social Science (SPSS) version 22 was used to analyze the data with aid of descriptive statistics and Chi-squire Test. The result indicated that most of the respondents fall in age group between 21-40 years, and they depend on farm activity. There was 90% of farmers processed mobile phone since more than three years ago, 90.8%continuedto use smart mobile phone to access agricultural information and showed positive contribution towards income generation. The results also revealed that there was positive perception towards using mobile phones which showed more efficient in use than radio and TVs. The results showed great advantages of using smart mobile phone where 75.2 % of respondents preferred to get agricultural information, logistics and other needs through successful communication in the mid of agricultural season. Results of Chi-squire test showed significant differences between the parameters tested. The study recommended that farmers should be connected with mobile phones to admit ease communication with agricultural extension offices and quick access to their needs and logistics.


2021 ◽  
Author(s):  
Chernet Worku Erkie ◽  
Marlign Adugna ◽  
Essa Chanie

Abstract In Ethiopia, chickpea is an important plus crop, particularly in Estie district. It is a source of food and provides cash income for majority of smallholder farmers. To commercialize chickpea producers, selecting an appropriate market channel is mandatory. However, selecting an appropriate market channel is not an easy task because there are different factors that affect market outlet choices in the district. Hence, this study aimed to identify factors that affecting chickpea market outlet choices. Both primary & secondary sources of data were used. A two-stage random sampling procedure was used and a total of 122 smallholder farmers were randomly and proportionally selected to collect primary data. Multivariate probit model was employed to identify factors affecting chickpea market outlet choices. The result shows that five major chickpea marketing channels were identified and among them wholesalers and retailers purchased about (61.84%) and (18.2%) respectively. The estimation result of multivariate probit model showed that the likelihood of sampled households to select collectors, consumers, retailers and wholesalers were 25.3%, 35.4%, 30.5% and 36%, respectively. The joint probability of success and failure to select all market outlets was 0.01537% and 13.4% respectively. It also indicated that sex of household, education status, family size, off-farm income, access to credit; lagged price and distance to market significantly affected the market channel choice decision of producers. Based on the findings, Government and concerned stakeholders need to focus more on enhancing accessibility of infrastructures facilities, strengthening credit access and improving yield through extension service to accelerate selecting appropriate market channel.


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