COMMERCIAL BEHAVIOUR OF SMALLHOLDER POTATO PRODUCERS: THE CASE OF KOMBOLCHAWOREDA, EASTERN PART OF ETHIOPIA
DOI:
https://doi.org/10.5937/ekoPolj1601159KKeywords:
Commercialization, commercialization index, potato, proftability, two limit TobitAbstract
Meeting the challenge of improving rural incomes in Ethiopia will require some form of transformation of the subsistence, low-input and low-productivity farming systems to agricultural commercialization. In the process, commercial production of high value food crops like potato would have been expected. Nonetheless, in the study area, Kombolcha Woreda, the extent to which farmers have commercialized potato production was not known. This study was then undertaken to analyse the extent to which potato was oriented towards the market (denoted by commercialization index) and identify the factors affecting commercialization of potato. A multi-stage sampling technique was used to select 130 sample households from six sample kebeles. In the study, both primary and secondary data sources were used. Results showed that potato production was lucrative and semi-commercialized i.e. about 59.50% of the potato produce were sold. Moreover, the two limit-Tobit regression model results indicated that non/off farm income, access to information, access to improved seed and access to irrigation affect proportion of the value of potato sold positively and signifcantly while number of plots affects it negatively. Hence, policies should emphasis on reducing land fragmentation, creating awareness on non/off farm employment, and offer improved seeds and irrigation facilities to farmers and access information.
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References
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2. Bekele, A., Belay, K., Legesse, B., Lemma, T. (2011): Effects of Crop Commercial Orientation on Productivity of Smallholder Farmers in Drought-Prone Areas of the Central Rift Valley of Ethiopia. Journal of Rural Development Vol. 33, No. 4, pp. 105-128.
3. Berhanu, G., Moti, J. (2010): Commercialization of Smallholders: Is Market Participation Enough? Contributed Paper presented at the Joint 3rdAfrican Association of Agricultural Economists (AAAE) and 48th Agricultural Economists Association of South Africa (AEASA) Conference, Cape Town, South Africa, September p. 19-23.
4. Bezabih, E., Hadera, G. (2007): Constraints and Opportunities of Horticulture Production and Marketing in Eastern Ethiopia. Drylands Coordination Group Report No. 46.
5. Bezabih, E. (2008): Participatory Value Chain Analysis at Kombolcha District of Eastern Hararghe, Ethiopia. Draft Report, July, 2008. Addis Ababa.
6. Bezabih, E. (2010): Market assessment and value chain analysis in Benishangul Gumuz Regional State, Ethiopia. SID-Consult-Support Integrated Development, Addis Ababa, Ethiopia.
7. Bizimana, C., Nieuwoudt, W.L., Ferrer, S.R.D. (2004). Farm Size, Land Fragmentation and Economic Effciency in Southern Rwanda. Agrekon, Vol. 43, No. 2, pp. 244–262.
8. Burton, S. (1988): Land Consolidation in Cyprus: A Vital Policy for Rural Reconstruction. Land Use Policy, Vol. 5, No. 1, pp. 131–147.
9. CSA (Central Statistical Agency) (2013): Population Projection of Ethiopia for All Regions at Wereda Level from 2014 – 2017, Addis Ababa, Ethiopia
10. CSA(Central Statistical Authority) (2014):Agriculture Sample Survey 2013/2014 (May, 2014). Report on Area and Production of Major Crops (Private Peasant Holdings, Meher Seasons). Addis Ababa Ethiopia, The FDRE statistical bulletin Volume 01-532.
11. EARO (Ethiopian Agricultural Research Organization) (2000): Potato Long Term Research Strategy. Addis Ababa, Ethiopia.
12. EEA(Ethiopian Economic Association) (2012): Annual Report on Ethiopian Economy. Addis Ababa, Ethiopia.
13. EHDA (Ethiopian Horticultural Development Agency) (2011): Exporting Fruit and Vegetables from Ethiopia: Assessment of Development Potentials and Investment Options in the Export-Oriented Fruit and Vegetable Sector. Addis Ababa, Ethiopia
14. Fekadu, M., Dandena, G. (2006): Review of the status of vegetable crops production and marketing in Ethiopia. Uganda Journal of Agricultural Sciences, Vol. 12, No. 2, pp. 26-30.
15. Greene, W. H. (2003): Econometric Analysis. 5th Edition, Prentice-Hall, Pearson Education, Inc., Upper Saddle River, New Jersey, New York University.
16. Govereh, J., Jayne, T.S., Nyoro, J. (1999): Smallholder commercialization, interlinked markets and food crop productivity: Cross-country evidence in eastern and southern Africa, available at: http://www.aec.msu.edu/fs2/ag_transformation/atw_govereh.PDF
17. Jayne,T.S., Haggblade, S., Minot, N., Rash, S. (2011): Agricultural Commercialization, Rural Transformation and Poverty Reduction: What Have We Learned about How to Achieve This? Synthesis Report Prepared for The Alliance for Commodity Trade in Eastern and Southern Africa, Kigali Rwanda.
18. KWP (KombolchaWoreda Profle). (2011): Socio-economic Profle of the Kombolcha Woreda, Ethiopia.
19. Karouzis, G. (1971): Time-Wasted and Distance Travelled by the Average Cypriot Farmer in Order to Visit His Scattered and Fragmented Agricultural Holding. Geographical Chronicles: Bulletin of the Cyprus Geographical Association, Vol. 1, No. 1, pp. 39–58.
20. Long, S. (1997): Regression Models for Categorical and Limited Dependent Variables. Thousand Oaks, CA: Sage publications.
21. Lerman, Z. (2004): Policies and Institutions for Commercialization of Subsistence Farms in Transition Countries. Journal of Asian Economics, Vol. 15, No. 3, pp. 461- 479.
22. Maddala, G.S. (1992): Introduction to Econometrics Second Edition. Macmillan Publishing Company, New York.
23. Mahlet, A., Bezabih, E., Mengistu, K., Jeffreyson, K.M., Jemal, Y. (2015): Gender role in market supply of potato in Eastern Hararghe Zone, Ethiopia. African Journal of Agricultural Marketing Vol. 3, No. 8, pp. 241-251.
24. MoARD (Ministry of Agriculture and Rural Development) (2010): Ethiopias Agricultural Sector Policy and Investment Framework (PIF):2010-2020 Draft Final Report 15 September 2010.
25. Mitku, A. (2014): Impact of smallholder farmers agricultural commercialization on rural households poverty. International Journal of Applied Economics and Finance Vol. 8, No. 2, pp. 51-61.
26. Pender, J., Dawit, A. (2007): Determinants of Smallholder Commercialization of Food Crops: Theory and Evidence from Ethiopia. IFPRI Discussion Paper 00745
27. Pingali, P. (1997). From subsistence to commercial production System: The transformation of Asian agriculture. American Journal of Agricultural Economics Vol. 79, No. 2, pp. 628–634.
28. Pingali, L.P., Rosegrant, M.W. (1995): Agricultural commercialization and diversifcation: Process and polices. Food Policy Vol. 20, No. 3, pp. 171–185.
29. Rao, E. J. O., Qaim, M. (2011): Supermarkets, Farm Household Income, and Poverty: Insights from Kenya. World Development, Vol. 39, No. 5, pp. 784–796.
30. Rosett, R., Nelson, F. (1975): Estimation of the Two-limit probit Regression Model. Econometrica, Vol. 43, pp. 141-146 (DOI: 10.2307/1913419).
31. Strasberg, P.J., Jayne, T.S., Yamano, T., Nyoro, J., Karanja, D., Strauss, J. (1999): Effects of Agricultural Commercialization on Food Crop Input Use and Productivity in Kenya. Offce of Sustainable Development; Policy Synthesis for USAID-Africa Bureau, pp. 41.
32. Tan, S., Heerink, N., Kruseman, G., Qu, F. (2008): Do fragmented landholdings have higher production costs? Evidence from rice farmers in Northeastern Jiangxi province, P.R. China, China Economic Review, Vol. 19, No. 3, pp. 347–358 (doi:10.1016/j.chieco.2007.07.001).
33. Timmer, C.O. (1997): Farmers and Markets: the Political Economy of New Paradigms, American Journal of Agricultural Economics, Vol. 79, No. 2, pp. 621-627 (available at: http://www.jstor.org/stable/1244161).
34. Thomas, J. (2006): Property Rights, Land Fragmentation and the Emerging Structure of Agriculture in Central and Eastern European Countries, Journal of Agricultural and Development Economics Vol. 3, No. 2, pp. 225–275.
35. von Braun, J., Kennedy, E. (eds) (1994): Agricultural Commercialization, Economic Development, and Nutrition. The Johns Hopkins University Press, Baltimore and London, pp.11-33.
36. Yamane, T. (1967): Statistics: An Introductory Analysis, 2nd Ed., New York: Harper and Row.
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Published
2016-01-31
How to Cite
Alamerie, K. (2016). COMMERCIAL BEHAVIOUR OF SMALLHOLDER POTATO PRODUCERS: THE CASE OF KOMBOLCHAWOREDA, EASTERN PART OF ETHIOPIA. Economics of Agriculture, 63(1), 159–173. https://doi.org/10.5937/ekoPolj1601159K
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