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:

DOWNLOAD EBOOK

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.

Food and Agriculture in Ethiopia
Food and Agriculture in Ethiopia

Author: Paul Dorosh

Publisher: University of Pennsylvania Press

Published: 2013-02-11

Total Pages: 377

ISBN-13: 0812208617

DOWNLOAD EBOOK

The perception of Ethiopia projected in the media is often one of chronic poverty and hunger, but this bleak assessment does not accurately reflect most of the country today. Ethiopia encompasses a wide variety of agroecologies and peoples. Its agriculture sector, economy, and food security status are equally complex. In fact, since 2001 the per capita income in certain rural areas has risen by more than 50 percent, and crop yields and availability have also increased. Higher investments in roads and mobile phone technology have led to improved infrastructure and thereby greater access to markets, commodities, services, and information. In Food and Agriculture in Ethiopia: Progress and Policy Challenges, Paul Dorosh and Shahidur Rashid, along with other experts, tell the story of Ethiopia's political, economic, and agricultural transformation. The book is designed to provide empirical evidence to shed light on the complexities of agricultural and food policy in today's Ethiopia, highlight major policies and interventions of the past decade, and provide insights into building resilience to natural disasters and food crises. It examines the key issues, constraints, and opportunities that are likely to shape a food-secure future in Ethiopia, focusing on land quality, crop production, adoption of high-quality seed and fertilizer, and household income. Students, researchers, policy analysts, and decisionmakers will find this book a useful overview of Ethiopia's political, economic, and agricultural transformation as well as a resource for major food policy issues in Ethiopia. Contributors: Dawit Alemu, Guush Berhane, Jordan Chamberlin, Sarah Coll-Black, Paul Dorosh, Berhanu Gebremedhin, Sinafikeh Asrat Gemessa, Daniel O. Gilligan, John Graham, Kibrom Tafere Hirfrfot, John Hoddinott, Adam Kennedy, Neha Kumar, Mehrab Malek, Linden McBride, Dawit Kelemework Mekonnen, Asfaw Negassa, Shahidur Rashid, Emily Schmidt, David Spielman, Alemayehu Seyoum Taffesse, Seneshaw Tamiru, James Thurlow, William Wiseman.

Commercialization of Smallholders
Commercialization of Smallholders

Author: Berhanu Gebremedhin

Publisher: ILRI (aka ILCA and ILRAD)

Published: 2010-01-01

Total Pages: 30

ISBN-13:

DOWNLOAD EBOOK

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). 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 market orientation translates strongly into market participation. The key implication of this study is that policy, technological, organizational and institutional interventions aimed at promoting commercial transformation of subsistence agriculture should follow two-pronged approach: improving market orientation of smallholders at production level, and facilitating market entry and participation of households in output and input markets. Focusing on either may not be as effective in achieving the transformation.

The relative commercial orientation of smallholder farmers in Nigeria: Household and crop value-chain analyses
The relative commercial orientation of smallholder farmers in Nigeria: Household and crop value-chain analyses

Author: Benson, Todd

Publisher: Intl Food Policy Res Inst

Published: 2020-11-25

Total Pages: 47

ISBN-13:

DOWNLOAD EBOOK

Increasing the productivity of commercially oriented smallholder farming households in Nigeria results in greater incomes for their households, which, in turn, can drive an expansion in local nonfarm employment opportunities and raise incomes across rural communities. Appropriately targeting agricultural development efforts towards commercially oriented farming households has important second-round development benefits for rural economies. We use nationally representative data from the Nigeria General Household Survey Panel to examine the characteristics of households and their context that determine their level of commercial orientation in 2015/16. We then use the same dataset for crop-specific analyses of the factors associated with a household choosing to produce a specific crop, to sell any of their harvest of that crop, and, if they sold any of the crop, whether they sold more than half of their harvest. Twelve crops are examined. We find that the commercial orientation of most smallholder farming households in Nigeria is not strong. One-third reported not making any crop sales, relying instead on household enterprises or wage employment to meet their cash needs. Another one-third reported selling less than one-third of the crops they harvested by value. For these households, any crop sales made seem to reflect the limited other options they have to obtain cash, rather than being part of a strategy of commercial production. A subsistence orientation still drives most crop production by smallholder farming households in Nigeria. The crop-specific analyses confirm that crop sales for many households are driven to an important degree by their lack of other income sources, rather than by actively seeking to produce significant commercial surpluses of a crop. That this is the case reflects a range of deficiencies in the production and marketing of many of the crops. Improved crop production technologies are not commonly used, may not be readily available, or, if available, may prove challenging to employ profitably. Nigerian crop markets remain risky with no assurances that farmers will find buyers offering remunerative prices when they bring their produce to the market to sell. Continued investments to increase crop productivity and to improve the performance and reliability of crop value chains are needed if commercial considerations are increasingly to drive the crop choices of smallholder farming households, to provide incentives for higher crop productivity, and, through the increased crop income of commercially oriented farming households, to motivate expansion in local non-farm sectors and to raise incomes for all households in rural Nigerian communities.

Cash crops and food security
Cash crops and food security

Author: Kuma, Tadesse

Publisher: Intl Food Policy Res Inst

Published: 2016-09-27

Total Pages: 22

ISBN-13:

DOWNLOAD EBOOK

One of the key questions in food policy debates in the last decades has been the role of cash cropping for achieving food security in low income countries. We revisit this question in the context of smallholder coffee production in Ethiopia. Using unique data collected by the authors on about 1,600 coffee farmers in the country, we find that coffee income improves food security, even after controlling for total income and other factors and after addressing the endogeneity of coffee income. Further analysis suggests that the pathway for achieving this improved food security is linked to being better able to smooth consumption across agricultural seasons. In contrast with food crops, coffee sales take place almost throughout the whole year, providing farmers with cash income also during the lean season.

Adapting to Climate Uncertainty in African Agriculture
Adapting to Climate Uncertainty in African Agriculture

Author: Stephen Whitfield

Publisher: Routledge

Published: 2015-08-20

Total Pages: 210

ISBN-13: 1317534735

DOWNLOAD EBOOK

Future climatic and agro-ecological changes in Africa are uncertain and associated with high degrees of spatial and temporal variability and this change is differently simulated within divergent climate-crop models and in controlled crop breeding stations. Furthermore, uncertainty emerges in local contexts, not just in response to climatic systems, but to social, economic, and political systems, and often with implications for the appropriateness and adoption of technologies or the success of alternative cropping systems. This book examines the challenges of adaptation in smallholder farming in Africa, analysing the social, economic, political and climatic uncertainties that impact on agriculture in the region and the range of solutions proposed. Drawing on case studies of genetically modified crops, conservation agriculture, and other 'climate smart' solutions in eastern and southern Africa, the book identifies how uncertainties are framed 'from above' as well experienced 'from below', by farmers themselves. It provides a compelling insight into why ideas about adaptation emerge, from whom, and with what implications. This book offers a unique perspective and will be highly relevant to students of climate change adaptation, food security and poverty alleviation, as well as policy-makers and field practitioners in international development and agronomy.

Agricultural Management Strategies in a Changing Economy
Agricultural Management Strategies in a Changing Economy

Author: Popescu, Gabriel

Publisher: IGI Global

Published: 2015-01-31

Total Pages: 461

ISBN-13: 1466675225

DOWNLOAD EBOOK

Research and development in agriculture is a very relevant topic in today’s society, especially given the evolution of land ownership structures and resources exploitation. These transformations have paved the way for new approaches in the allocation and management of agricultural systems. Agricultural Management Strategies in a Changing Economy brings together emergent research and best practices in the area of agricultural management, policy, and structures. Highlighting theoretical concepts and empirical research, this book will be an all-encompassing reference source for professionals, researchers, academicians, practitioners, and students in the field of agricultural economics and sustainable development, as well as in related disciplines.