Role Of Agricultural Commercialization In The Agricultural Transformation Of Ethiopia Trends Drivers And Impact On Well Being
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Role Of Agricultural Commercialization In The Agricultural Transformation Of Ethiopia Trends Drivers And Impact On Well Being
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Author : Minot, Nicholas
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2023-01-23
Role Of Agricultural Commercialization In The Agricultural Transformation Of Ethiopia Trends Drivers And Impact On Well Being written by Minot, Nicholas and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023-01-23 with Political Science categories.
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 Ethiopia Trends Drivers And Impact On Well Being
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Author : Minot, Nicholas
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2022-12-06
Crop Commercialization In Ethiopia Trends Drivers And Impact On Well Being written by Minot, Nicholas and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022-12-06 with Political Science categories.
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.
Crop Commercialization In Rwanda Current Market Participation And Drivers
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Author : Warner, James
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2024-05-13
Crop Commercialization In Rwanda Current Market Participation And Drivers written by Warner, James and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2024-05-13 with Political Science categories.
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.
Agricultural Intensification In Ethiopia Patterns Trends And Welfare Impacts
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Author : Berhane, Guush
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2022-12-06
Agricultural Intensification In Ethiopia Patterns Trends And Welfare Impacts written by Berhane, Guush and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022-12-06 with Political Science categories.
This study examined the patterns, trends, and drivers of agricultural intensification and productivity growth during the recent decade (2012 - 2019) using three rounds of household data collected from four agricultural regions of Ethiopia. The descriptive results indicate a positive trend both in adoption and intensity of inputs and outputs, albeit from a low base and with considerable heterogeneity by access to information, rainfall levels and variability, labor, soil quality, and remoteness, among others. The econometric results show significant association between intensification, yield growth, household dietary diversity, and consumer durables. The results on the association between current yield levels and per capita consumption expenditures are however mixed (i.e., while an increase in cereal yield improves food consumption expenditures, an increase in cash crop yield improves only non-food consumption expenditures). In sum, while the increasing input intensification and the resulting yield gains are associated with improvements in household diets and consumer durables, it falls short to have strong impact on incomes (as measured by total consumption expenditures), indicating that additional efforts must be made to see meaningful impacts on higher order outcomes. Additional welfare improving productivity gains through increased input intensification may require investments in appropriate fertilizer blends; investments in improved seeds (to accelerate varietal turnover), ways to mitigate production (rainfall) risk, and investments to remodel Ethiopia’s extension system to provide much needed technical support to farmers on production methods.
Gender Implications Of Agricultural Commercialization In Africa Evidence From Farm Households In Ethiopia And Nigeria
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Author : Berhane, Guush
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2023-01-03
Gender Implications Of Agricultural Commercialization In Africa Evidence From Farm Households In Ethiopia And Nigeria written by Berhane, Guush and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023-01-03 with Political Science categories.
Agricultural commercialization is often pursued as an important driver of agricultural transformation in low-income countries. However, the implications it can have on gendered outcomes are less understood. While agricultural commercialization creates opportunities to increase income, this may come at the expense of change in women’s decision-making agency and control over resources. Understanding the interactions between agricultural commercialization and gender outcomes is thus critical for policymakers aspiring to achieve agricultural transformation while promoting gender equity and the evidence on the links between the two in the context of Africa is scarce and mixed. We use three rounds of Ethiopia’s and Nigeria’s LSMS-ISA panel data to understand the implications of agricultural commercialization to gendered decision-making on crop harvest use, marketing, revenue control, asset ownership, and intrahousehold budget allocation. Results indicate commercialization is associated with decreases in women’s participation in decision-making related to use of harvest, crop marketing, and control over revenue in Ethiopia, but only on harvest use and control over revenue in Nigeria. The association with land ownership is mixed: positive in Ethiopia but negative in Nigeria. Moreover, commercialization is associated with decreases in women’s share of farm-workload but with increases in share of hired labor in Ethiopia. In Ethiopia we also find women’s control over revenue is positively associated with increases in per capita consumption expenditures and dietary diversity, but men’s control is negatively associated with increases in the share of expenditure on children’s shoes and clothes. In Nigeria, women’s control is positively associated with increases in the share of expenditure on women’s shoes and clothes, food gap, and dietary diversity. In sum, we find suggestive evidence that commercialization may further marginalize women’s decision-making agency in Ethiopia and Nigeria. However, conditional on women’s control over proceeds, commercialization tends to improve women’s as well as other members’ welfare. We provide some policy recommendations and directions for future research.
Irrigation And Agricultural Transformation In Ethiopia
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Author : Mekonnen, Dawit Kelemework
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2023-01-24
Irrigation And Agricultural Transformation In Ethiopia written by Mekonnen, Dawit Kelemework and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2023-01-24 with Political Science categories.
Climate change forecasts for Ethiopia predict higher temperature and rainfall and increased variability in rainfall with periodic severe droughts and floods. The increased weather variability threatens the extent of Ethiopia’s agricultural transformation unless it is supported with improved agricultural water management such as irrigation to make smallholder farming resilient to adverse weather events. This study analyzes the role of irrigation on agricultural transformation in Ethiopia by systematically comparing households with irrigated and non-irrigated plots on key agricultural transformation and welfare indictors (i.e., intensification, commercialization, and consumption expenditures). The study used a representative data from the four main agriculturally important regions of the country and employed an endogenous switching regression approach that addresses potential biases from placement of irrigation schemes and the self-selection of farmers to adopt irrigation on their plots. This approach allows for counterfactual analysis on the effect of irrigation if it is adopted on plots or in households without current irrigation as well as the counterfactual realizations of outcome variables if irrigated plots were not irrigated or irrigating households were relying only on rainfed agriculture. The main results show a positive and significant effects of irrigation on intensification, commercialization, and household welfare. Specifically, the results show that farm households with irrigated plots (i) use more fertilizer and agrochemicals, (ii) sell sizable shares of their harvest, and (iii) spend more on food and non-food expenditures. The counterfactual analysis on what would have been the effect of irrigation on currently non-irrigated plots indicate a stronger result across our outcome indicators which further suggest the importance of expanding irrigation in accelerating agricultural transformation and welfare improvement in Ethiopia.
Policy Drivers Of Africa S Agriculture Transformation A Caadp Biennial Review Account
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Author : Benin, Samuel
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2021-12-03
Policy Drivers Of Africa S Agriculture Transformation A Caadp Biennial Review Account written by Benin, Samuel and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2021-12-03 with Political Science categories.
This paper assesses the nature of agricultural transformation taking place in different parts of Africa and analyzes policy drivers of the transformation using data from the CAADP Biennial Review (BR) on 46 indicators from 2014 to 2018. First, a typology of agriculture transformation in different groups of countries is developed by analyzing the initial values and trends in three indicators—share of agriculture in total employment, share of agriculture in gross domestic product, and agriculture labor productivity. The typology, in addition to a conceptual framework that is developed for measuring the relative effect of a policy on an outcome, provides the basis for analyzing the policy drivers of agriculture transformation. The 46 BR indicators are classified into policies (13 indicators), intermediate results (23 indicators), and outcomes (10 indicators), and then econometric methods are used to measure the association between the policy indicators and the intermediate results and outcomes, which include agriculture intensification (e.g., access to finance and extension, fertilizer use, and irrigation development), agriculture growth, agriculture trade, food security, nutrition, and poverty. Different fixed-effects regression methods and model specifications of the explanatory variables are used to assess sensitivity of the results to different assumptions of the data and the relationship between the policies and intermediate and outcome indicators. The trends in the indicators are different. For example, access to finance and extension have risen over time; fertilizer use, irrigation development, agriculture growth, and adult undernourishment have fallen over time; and child nutrition and poverty have remained stagnant over time. Different policy indicators are significantly associated with different indicators of agriculture intensification, agriculture growth, and outcomes. Also, there are differences in the results across the agriculture transformation groups. Major policy drivers of agriculture transformation in the different groups are identified. Implications of the results and suggestions for future research are discussed.
Agricultural Transformation In Ethiopia
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Author : Atakilte Beyene
language : en
Publisher: Zed Books Ltd.
Release Date : 2018-10-15
Agricultural Transformation In Ethiopia written by Atakilte Beyene and has been published by Zed Books Ltd. this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018-10-15 with Social Science categories.
For thousands of years, Ethiopia has depended on its smallholding farmers to provide the bulk of its food needs. But now, such farmers find themselves under threat from environmental degradation, climate change and declining productivity. As a result, smallholder agriculture has increasingly become subsistence-oriented, with many of these farmers trapped in a cycle of poverty. Smallholders have long been marginalised by mainstream development policies, and only more recently has their crucial importance been recognised for addressing rural poverty through agricultural reform. This collection, written by leading Ethiopian scholars, explores the scope and impact of Ethiopia’s policy reforms over the past two decades on the smallholder sector. Focusing on the Lake Tana basin in northwestern Ethiopia, an area with untapped potential for growth, the contributors argue that any effective policy will need to go beyond agriculture to consider the role of health, nutrition and local food customs, as well as including increased safeguards for smallholder’s land rights. They in turn show that smallholders represent a vitally overlooked component of development strategy, not only in Ethiopia but across the global South.
Agricultural Commercialization Economic Development And Nutrition
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Author : Joachim Von Braun
language : en
Publisher: International Food Policy Research Insitute
Release Date : 1994
Agricultural Commercialization Economic Development And Nutrition written by Joachim Von Braun and has been published by International Food Policy Research Insitute this book supported file pdf, txt, epub, kindle and other format this book has been release on 1994 with Business & Economics categories.
Subsistence production: a sign of market failure. Commercialization cannot be left to the market. Household effects of commercialization. Nutrition effects of commercialization. Policy action needed.
Agricultural Development And Economic Transformation
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Author : John W. Mellor
language : en
Publisher: Springer
Release Date : 2017-10-17
Agricultural Development And Economic Transformation written by John W. Mellor and has been published by Springer this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017-10-17 with Business & Economics categories.
This book examines the role of agriculture in the economic transformation of developing low- and middle-income countries and explores means for accelerating agricultural growth and poverty reduction. In this volume, Mellor measures by household class the employment impact of alternative agricultural growth rates and land tenure systems, and impact on cereal consumption and food security. The book provides detailed analysis of each element of agricultural modernization, emphasizing the central role of government in accelerated growth in private sector dominated agriculture. The book differs from the bulk of current conventional wisdom in its placement of the non-poor small commercial farmer at the center of growth, and explains how growth translates into poverty reduction. This new book is a follow up to Mellor’s classic, prize-winning text, The Economics of Agricultural Development. Listed as a Best Books of 2017: Economics by Financial Times.