Abstract
Commercialization in smallholder farming is very important for low income countries since it has a potential to enhance incomes and play a key role in reducing rural poverty. Even though few studies are conducted about agricultural commercialization in Ethiopia, so far there is no study conducted on maize commercialization among smallholder farmers. Therefore, the aim of this study was to analyze the factors that determine market participation and degree of commercialization among smallholder maize producers in North Western Ethiopia. The study was carried out from October 2019 to December 2020. Data were collected from 385 smallholder maize producers using systematic random sampling. Interview schedule, focus group discussion and key informant interview were used to collect the required data. Tobit model was employed to analyse both market participation and intensity of commercialization. From the analysis commercialization was significantly influenced by education level, livestock holding, frequency of extension contact, training, off/non-farm income activity, quantity of maize and lagged price. 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.
Highlights
Agriculture is the mainstay of Ethiopian economy as it is a means of livelihood for about 84% of the population and it constitutes about 33.3% of the country’s GDP(NBE, 2018)
Enhancing the productivity of smallholder farmers has been the primary goal of the government in order to foster the economic growth in Ethiopia
There are only few studies conducted about agricultural commercialization in Ethiopia but the studies are not focused to specific crop (Abafita et al, 2016; Abadi,2014; Getahun, 2020; Hailu et al, 2015) it is essential to identify factors affecting market participation and degree of commercialization of smallholder maize farmers in the study area where maize is grown potentially
Summary
Agriculture is the mainstay of Ethiopian economy as it is a means of livelihood for about 84% of the population and it constitutes about 33.3% of the country’s GDP(NBE, 2018). The majority of farmers in Ethiopia are smallholders and they are a source of 95% of the country’s agricultural production (CSA, 2018). Low employment of agricultural technologies and subsistence-based smallholder farming are still the characteristics of the sector (Doss et al, 2003; Shita et al, (2018). In one or another way strategies and policies designed to bring economic growth in the country such as Agriculture Development Led Industrialization and Growth and Transformation Plan has been mainly focusing on agricultural development through shifting the current smallholder subsistence based farming to commercialized agriculture (Gebreselassie, 2006; MoFED,2006)
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