Crop commercialization in Ethiopia: Trends, drivers, and impact on well-being

Crop commercialization in Ethiopia: Trends, drivers, and impact on well-being

Author: Minot, Nicholas

Publisher: Intl Food Policy Res Inst

Published: 2022-12-06

Total Pages: 6

ISBN-13:

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Agricultural transformation refers to a series of changes in agriculture that both reflect and drive rising income and economic development more broadly. While the macroeconomic patterns of agricultural transformation are relatively well documented, less is known about how it is manifested at the household level. Ethiopia makes an excellent case study as it has had one of the fastest growing economies in the world. An important aspect of this process is agricultural commercialization, that is, the rising share of agricultural output is sold on the market rather than being consumed at home. Agricultural commercialization tends to rise with development with improved infrastructure and communications, the availability of inputs and know-how regarding commercial crop production, and farmers being willing to accept the risks associated with producing crops for the market. Agricultural commercialization is widely believed to allow farmers to earn higher income as they specialize in crops for which they have a comparative advantage. The analysis makes use of a data from three rural household surveys carried out in Ethiopia by IFPRI in 2012, 2016, and 2019. Each survey used a sample that was representative of the four main agricultural regions of the country (Tigre, Oromia, Amhara, and SNNP) with sample sizes of 3000 to 5000, including 1,900 households that were interviewed in all three rounds. In addition, we incorporate several weather variables based on CHIRPS rainfall data to estimate the effect of the level and variability of rainfall on agricultural commercialization.


Role of agricultural commercialization in the agricultural transformation of Ethiopia: Trends, drivers, and impact on well-being

Role of agricultural commercialization in the agricultural transformation of Ethiopia: Trends, drivers, and impact on well-being

Author: Minot, Nicholas

Publisher: Intl Food Policy Res Inst

Published: 2023-01-23

Total Pages: 68

ISBN-13:

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Agricultural transformation refers to a series of changes in agriculture that both reflect and drive rising income and economic development more broadly. While the macroeconomic patterns of agricultural transformation are relatively well documented, less is known about how it is manifested at the household level. Ethiopia makes an excellent case study as it has had one of the fastest growing economies in the world. This paper focuses on one aspect of this process: agricultural commercialization, that is, the process through which an increasing share of agricultural output is sold on the market rather than being consumed at home. The analysis uses three nationally representative rural household surveys carried out in 2012, 2016, and 2019, including a panel of 1,900 households. The results show that the share of marketed agricultural output has increased significantly over the seven-year period. Somewhat surprisingly, this increase is not due to a shift in crop mix toward more commercial crops but rather an increase in the degree of commercialization of each crop. Using a correlated random effects model, we find marketed share to be significantly related to age of the head of household, farm size, wealth, distance to road, rainfall, rainfall variability, and region. Although endogeneity is a challenge, descriptive statistics and regression analysis further suggest that agricultural commercialization contributes to higher income, largely because commercial crops generate higher returns per hectare than staple grains. The results indicate that there is no clear line between “subsistence” and “commercial” farms. A large majority of farms have some crop sales, while virtually none of them sell all their output. Similarly, the contrast between subsistence crops and cash crops can be misleading. For example, the value of staple cereal sales in Ethiopia is almost three times greater than that of coffee, the main cash crop. We draw lessons from the results for the design of programs to raise rural incomes by facilitating market-oriented agricultural production.


Crop commercialization in Rwanda: Current market participation and drivers

Crop commercialization in Rwanda: Current market participation and drivers

Author: Warner, James

Publisher: Intl Food Policy Res Inst

Published: 2024-05-13

Total Pages: 32

ISBN-13:

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In this paper, we explore the current levels and participation of crop commercialization by Rwandan smallholder farmers. Our basic unit of analysis is total crop sales divided by the total value of crop production, either at the household or specific crop level. Overall, our findings suggest that approximately 80 percent of farmers participate in crop market sales and sell an average of 33 percent of their total production. However, there is a wide variety of percentage sales by crop and, in general, higher-valued crops are sold by more commercialized farm households. We also find that value of crop production per hectare rises with greater commercialization, suggesting that developing greater market commercialization, particularly with more valuable crops, may increase household incomes and aid in the economic transformation.


Globalization of Food and Agriculture and the Poor

Globalization of Food and Agriculture and the Poor

Author: Joachim Von Braun

Publisher: Oxford University Press, USA

Published: 2008

Total Pages: 392

ISBN-13:

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The world agri-food system is getting increasingly 'globalized'. As the majority moves into cities, and those who remain in rural areas adopt urbanized lifestyles the consumption of food is changing toward varied yet similar consumption around the world. This book reflects on how these changes are affecting the poor by looking at specific factors that are driving change. The chapters consider different angles to the following questions: How do these changes affect the roles and powers of various actors along the food chain? How relevant are these trends to the economic developments within the global agri-food system, and in particular to the poor segments of society? How is the globalization of foods affecting human health? How can international and national policy address possible adverse direct and indirect effects of globalization of the world's agri-food system while strengthening positive ones? The book attempts to combine both lines of inquiry, focusing more specifically on the globalization of agri-food systems, the actual and potential impacts of these trends on the poor, and the implications for food and nutrition security in developing countries.


Women’s Empowerment and Nutrition

Women’s Empowerment and Nutrition

Author: Mara van den Bold

Publisher: Intl Food Policy Res Inst

Published: 2013-11-01

Total Pages: 80

ISBN-13:

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Many development programs that aim to alleviate poverty and improve investments in human capital consider women’s empowerment a key pathway by which to achieve impact and often target women as their main beneficiaries. Despite this, women’s empowerment dimensions are often not rigorously measured and are at times merely assumed. This paper starts by reflecting on the concept and measurement of women’s empowerment and then reviews some of the structural interventions that aim to influence underlying gender norms in society and eradicate gender discrimination. It then proceeds to review the evidence of the impact of three types of interventions—cash transfer programs, agricultural interventions, and microfinance programs—on women’s empowerment, nutrition, or both. Qualitative evidence on conditional cash transfer (CCT) programs generally points to positive impacts on women’s empowerment, although quantitative research findings are more heterogenous. CCT programs produce mixed results on long-term nutritional status, and very limited evidence exists of their impacts on micronutrient status. The little evidence available on unconditional cash transters (UCT) indicates mixed impacts on women’s empowerment and positive impacts on nutrition; however, recent reviews comparing CCT and UCT programs have found little difference in terms of their effects on stunting and they have found that conditionality is less important than other factors, such as access to healthcare and child age and sex. Evidence of cash transfer program impacts depending on the gender of the transfer recipient or on the conditionality is also mixed, although CCTs with non-health conditionalities seem to have negative impacts on nutritional status. The impacts of programs based on the gender of the transfer recipient show mixed results, but almost no experimental evidence exists of testing gender-differentiated impacts of a single program. Agricultural interventions—specifically home gardening and dairy projects—show mixed impacts on women’s empowerment measures such as time, workload, and control over income; but they demonstrate very little impact on nutrition. Implementation modalities are shown to determine differential impacts in terms of empowerment and nutrition outcomes. With regard to the impact of microfinance on women’s empowerment, evidence is also mixed, although more recent reviews do not find any impact on women’s empowerment. The impact of microfinance on nutritional status is mixed, with no evidence of impact on micronutrient status. Across all three types of programs (cash transfer programs, agricultural interventions, and microfinance programs), very little evidence exists on pathways of impact, and evidence is often biased toward a particular region. The paper ends with a discussion of the findings and remaining evidence gaps and an outline of recommendations for research.


Ethiopia's agrifood system: Past trends, present challenges, and future scenarios

Ethiopia's agrifood system: Past trends, present challenges, and future scenarios

Author: Dorosh, Paul A., ed.

Publisher: Intl Food Policy Res Inst

Published: 2020-09-14

Total Pages: 520

ISBN-13: 0896296911

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Ethiopia has experienced impressive agricultural growth and poverty reduction, stemming in part from substantial public investments in agriculture. Yet, the agriculture sector now faces increasing land and water constraints along with other challenges to growth. Ethiopia’s Agrifood System: Past Trends, Present Challenges, and Future Scenarios presents a forward-looking analysis of Ethiopia’s agrifood system in the context of a rapidly changing economy. Growth in the agriculture sector remains essential to continued poverty reduction in Ethiopia and will depend on sustained investment in the agrifood system, especially private sector investment. Many of the policies for a successful agricultural and rural development strategy for Ethiopia are relevant for other African countries, as well. Ethiopia’s Agrifood System should be a valuable resource for policymakers, development specialists, and others concerned with economic development in Africa south of the Sahara.


A Market Facilitator's Guide to Participatory Agroenterprise Development

A Market Facilitator's Guide to Participatory Agroenterprise Development

Author: Shaun Ferris

Publisher: Catholic Relief Services

Published: 2006-09

Total Pages: 144

ISBN-13: 1614920028

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This publication is a product of the experiences and lessons learned while implementing agroenterprise projects in eastern and southern Africa. A Market Facilitator's Guide is based on a resource-to-consumption framework, which is the central theme of the "enabling rural innovation" approach for rural development. This approach seeks to empower farmer groups with the necessary skills to make informed decisions for their economic development, based on an analysis of their surroundings, assets and skills. The methodology also aims for outcomes that are equitable, gender focused and participatory.


Farming Systems and Poverty

Farming Systems and Poverty

Author: John A. Dixon

Publisher: Food & Agriculture Org.

Published: 2001

Total Pages: 424

ISBN-13: 9789251046272

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A joint FAO and World Bank study which shows how the farming systems approach can be used to identify priorities for the reduction of hunger and poverty in the main farming systems of the six major developing regions of the world.