Reviews of Smallholder Farmers Market Participations Decisions and It Intensity in Ethiopia

Anuto David Ojulu

doi:10.11648/j.ajmse.20200504.12

Abstract

Ethiopian economy is highly dependent on agricultural sector which account for about 38.8% of national GDP, 87% of export earnings and remains the main source of employment; generating 72.7% of total employment. The market participation is a key precondition for transformation of the agriculture sector from subsistence to commercial production. Thus, empirical evidence of smallholder farmers’ participation in the market has been extensively considered for variety of agricultural products. This article reviews was based on narrative qualitative of the existed empirical literature on the market participation decision and it intensity in Ethiopia. In addition, journals, thesis, published journal, articles, government report and dissertation papers were used to satisfy the objective the article. Thus, much of the studies used econometric model to examine the factors determining and the market intensity in Ethiopia on different commodity. Therefore, several factors were revealed to have an influence on farmers’ market participation decision and it intensity. Thus, factors range from social-economic, institutional, market and external factors. Therefore, the policy makers and planners of government and NGOs must be considering when set their policy and strategy of market participation and it intensity improvement in Ethiopia.

Highlights

Participation in well-functioning agricultural markets can enable farmers to increase yields, producing a marketable surplus, if sold in competitive output markets, can enable them to obtain higher prices and increase their incomes
Factors that affect market participation decision and extent of market participation are in respect to broad categorization of these factors into household characteristics, private assets, public assets/social capital and transaction cost variables [9]
Anuto David Ojulu: Reviews of Smallholder Farmers Market Participations Decisions and It Intensity in Ethiopia farmers’ market participation intensity. Such factors range from social-economic factors, institutional factors, market factors and external factors

Summary

Introduction

Participation in well-functioning agricultural markets can enable farmers to increase yields, producing a marketable surplus, if sold in competitive output markets, can enable them to obtain higher prices and increase their incomes. Resulting income is used to buy consumer items that households need but cannot produce This in turn improves their capacity to cope with risks and market instability. It is widely understood concept that, extent of income earning and the welfare status of smallholder farmers is determined by the extent they participate in a given market as seller. Study of these issues help to identify farm level factors and put forward measures for enhancing smallholders’ market participation it will contribute to food security and poverty reduction. This reviews aims to reveal status of smallholder farmers’ market participation and identify determinant factors of smallholder farmers’ market participation decision and level of market participation in market

Role of Market Participation

Factor Affecting the Market Participation Decision at Smallholder Farmer

Factors Determining Intensity of Market Participations

Conclusion

Findings

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