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The Determinants of Commercialization to Smallholder Farmers in West Hararghe Zone, Oromia Region, Ethiopia

Received: 14 June 2022    Accepted: 22 July 2022    Published: 31 August 2022
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Abstract

Taking into account the importance of commercialization in relation to agricultural and its priceless impacts on rural development and food security, studying the determining factors of commercialization had given a particular attention in this research. Smallholder commercialization as the strength of the linkage between farm households’ markets and consumption at a given point in time have a particular concern in this research. Among the others, computing household commercialization index and pinpointing the critical factors affecting household commercialization, considered reference points. Sampling involved a multi-stage random sampling procedure and pursued the required representative samples. Household Commercialization Index was equated by the ratio of the total sold agricultural product values to the total production. To determine the impact of independent variables involved, the research applied: Generalized Regression Model. In statistics, generalized linear model is the theoretical extension and application of an Ordinary Least Square Regression (OLS). This model weight the dependent variable to some scale, combines count and continuous variables (Tweedie probability distribution) and transform estimated values via a log-link function. The research compared results taking from two parameter estimation models for hypothesis testing: Parameter estimation through full log-likelihood model and bootstrapped parameter estimation in constrained model. The parameter estimation through maximum log-likelihood function bring in to light, potential cases of errors, which may lead to wrong conclusion while the bootstrapped estimation had trimmed outliers, measure values with high precision, and provide consistent out puts reliable to generalization. Results after the model revealed that: sex of household head (at 5%), years of cultivation (10%), distance from market (at 10%), means of transportation, (10%) and credit access (5%) had drained their proportionate substantial impact. The average value of commercialization index is 35% that likely considered very lower when compared to the average (52%) in Ethiopia. The condition of smallholder farmers in the study area appeals collaborative effort. Empirical research results reviewed that the issues that matters most varies among farmers in different locations; although sometimes overlap. Beyond merely conducting research, initiations to transform research outputs in to long-term project should be coordinated by volunteers and multiplying successful projects to similar suitable location should take in to practice.

Published in Journal of World Economic Research (Volume 11, Issue 2)
DOI 10.11648/j.jwer.20221102.11
Page(s) 64-76
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Commercialization, Commercialization Index, Smallholder Farmer, Agriculture

References
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[2] N. Minot, J. Warner, S. Dejene and T. Zewidie, "Agricultural Commercialization in Ethiopia: Results from the Panal Household Data," International Conference of Agricultural Economists, 17-30 August 2021.
[3] C. U. Nwafor and C. v. d. Westhuizen, Prospects for Commercialization among Smallholder Farmers in South Africa: A Case Study, Journal of Rural Social Sciences, 2020.
[4] A. A. Dijurfeldt, F. M. Dzanku and A. C. Isinka, Agriculture, Diversification, and Gender in Rural Africa: Longitudinal Perspectives from Six Countries, Oxford Scholarship Publications, 2018.
[5] MoFED (Ministry of Finance and Economic Development), Ethiopia: Building on progress. A plan, Addis Ababa, 2006.
[6] FDRE (Federal Democratic Republic of Ethiopia), The Second Growth and Transformation Plan (GTP II), Addis Ababa, 2010.
[7] G. T. Boka, Climate Change Challenges, Smallholders’ Commercialization, and Progress out of Poverty in Ethiopia, vol. 253, Abidjan: African Development Bank, 2017.
[8] P. T.-O. Martin, Does Agricultural Commercialization Increase Asset and Livestock Accumulation on Smallholder Farms in Ethiopia? 2022.
[9] G. Addisu, Smallholder Farmers Agricultural Commercialization in Ethiopia, vol. 9, Agriculture, Forestry and Fisheries, 2020, pp. 74-81.
[10] C. Abbort, Agricultural marketing for the developing world, Cambridge University Press, 1987.
[11] L. &. H. J. Demeke, Econometric analysis of factors affecting market participation of smallholder farming in Central Ethiopia, Ethiopia, 2017.
[12] Balint, Institutional factors Influencing Agricultural sales of the Individual farmers in 19 Romania, Berlin, 2004.
[13] WB (World BANK), Awakening Africa’s Sleeping Giant: Prospects for com-mercial Agriculture in the Guinea Savannah zone and beyond, 2009.
[14] J. Moti, G. Behanu and D. Hoekstra, Smallholder commercialization, IRLI, 2009.
[15] L. M. Pingali, Agricultural Commercialization and Diversification, vol. 20, Food Policy Journal, 1995, pp. 171-185.
[16] S. Rose, N. Spinks and A. I. Canhoto, Formulae for determining sample size, 2015.
[17] CSA (Oromia Statistical Agency), Population and Housing Census Projection from 2013-2017, Addis Ababa: CSA, 2007.
[18] W. Pan, Quasi Likelihood under Independence Model Criterion (QIC) and the Corrected Quasi Likelihood under Independence Model Criterion (QICC), vol. 57, Biometrics, 2001b, pp. 120-125.
[19] A. Tilahun, J. Haji, L. Zemedu and D. Alemu, Commercialization of Smallholder Pulse Producers in East Gojjam Zone, Ethiopia., vol. 8, Ethiopia: Canadian Center of Science and Education, 2019.
[20] ATA (Agricultural Transformation Agency), Agricultural transformation agenda, Addis Ababa: Ethiopia, 2016.
[21] J. Abafita, J. Atkinson and C.-S. Kim, Smallholder Commercialization in Ethiopia: Market Orientation and Participation, vol. 23, 2016.
[22] N. Agwu, C. Anyanwu and E. Mendie, Socio-economic determinants of commercialization among smallholder farmers in Abia state, Nigeria, Hammamet, 2013.
[23] A. Getahun, D. Goshu and A. Bekele, Determinants of Commercialization of Tef: The Case of Smallholder Farmers in Dendi District of Oromia, Central Ethiopia, vol. 56, Ethiopian Institute of Agricultural Research (EIAR), 2019.
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  • APA Style

    Firew Hailemariam Mamo, Aman Kiniso Beguije. (2022). The Determinants of Commercialization to Smallholder Farmers in West Hararghe Zone, Oromia Region, Ethiopia. Journal of World Economic Research, 11(2), 64-76. https://doi.org/10.11648/j.jwer.20221102.11

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    ACS Style

    Firew Hailemariam Mamo; Aman Kiniso Beguije. The Determinants of Commercialization to Smallholder Farmers in West Hararghe Zone, Oromia Region, Ethiopia. J. World Econ. Res. 2022, 11(2), 64-76. doi: 10.11648/j.jwer.20221102.11

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    AMA Style

    Firew Hailemariam Mamo, Aman Kiniso Beguije. The Determinants of Commercialization to Smallholder Farmers in West Hararghe Zone, Oromia Region, Ethiopia. J World Econ Res. 2022;11(2):64-76. doi: 10.11648/j.jwer.20221102.11

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  • @article{10.11648/j.jwer.20221102.11,
      author = {Firew Hailemariam Mamo and Aman Kiniso Beguije},
      title = {The Determinants of Commercialization to Smallholder Farmers in West Hararghe Zone, Oromia Region, Ethiopia},
      journal = {Journal of World Economic Research},
      volume = {11},
      number = {2},
      pages = {64-76},
      doi = {10.11648/j.jwer.20221102.11},
      url = {https://doi.org/10.11648/j.jwer.20221102.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20221102.11},
      abstract = {Taking into account the importance of commercialization in relation to agricultural and its priceless impacts on rural development and food security, studying the determining factors of commercialization had given a particular attention in this research. Smallholder commercialization as the strength of the linkage between farm households’ markets and consumption at a given point in time have a particular concern in this research. Among the others, computing household commercialization index and pinpointing the critical factors affecting household commercialization, considered reference points. Sampling involved a multi-stage random sampling procedure and pursued the required representative samples. Household Commercialization Index was equated by the ratio of the total sold agricultural product values to the total production. To determine the impact of independent variables involved, the research applied: Generalized Regression Model. In statistics, generalized linear model is the theoretical extension and application of an Ordinary Least Square Regression (OLS). This model weight the dependent variable to some scale, combines count and continuous variables (Tweedie probability distribution) and transform estimated values via a log-link function. The research compared results taking from two parameter estimation models for hypothesis testing: Parameter estimation through full log-likelihood model and bootstrapped parameter estimation in constrained model. The parameter estimation through maximum log-likelihood function bring in to light, potential cases of errors, which may lead to wrong conclusion while the bootstrapped estimation had trimmed outliers, measure values with high precision, and provide consistent out puts reliable to generalization. Results after the model revealed that: sex of household head (at 5%), years of cultivation (10%), distance from market (at 10%), means of transportation, (10%) and credit access (5%) had drained their proportionate substantial impact. The average value of commercialization index is 35% that likely considered very lower when compared to the average (52%) in Ethiopia. The condition of smallholder farmers in the study area appeals collaborative effort. Empirical research results reviewed that the issues that matters most varies among farmers in different locations; although sometimes overlap. Beyond merely conducting research, initiations to transform research outputs in to long-term project should be coordinated by volunteers and multiplying successful projects to similar suitable location should take in to practice.},
     year = {2022}
    }
    

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  • TY  - JOUR
    T1  - The Determinants of Commercialization to Smallholder Farmers in West Hararghe Zone, Oromia Region, Ethiopia
    AU  - Firew Hailemariam Mamo
    AU  - Aman Kiniso Beguije
    Y1  - 2022/08/31
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    DO  - 10.11648/j.jwer.20221102.11
    T2  - Journal of World Economic Research
    JF  - Journal of World Economic Research
    JO  - Journal of World Economic Research
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    EP  - 76
    PB  - Science Publishing Group
    SN  - 2328-7748
    UR  - https://doi.org/10.11648/j.jwer.20221102.11
    AB  - Taking into account the importance of commercialization in relation to agricultural and its priceless impacts on rural development and food security, studying the determining factors of commercialization had given a particular attention in this research. Smallholder commercialization as the strength of the linkage between farm households’ markets and consumption at a given point in time have a particular concern in this research. Among the others, computing household commercialization index and pinpointing the critical factors affecting household commercialization, considered reference points. Sampling involved a multi-stage random sampling procedure and pursued the required representative samples. Household Commercialization Index was equated by the ratio of the total sold agricultural product values to the total production. To determine the impact of independent variables involved, the research applied: Generalized Regression Model. In statistics, generalized linear model is the theoretical extension and application of an Ordinary Least Square Regression (OLS). This model weight the dependent variable to some scale, combines count and continuous variables (Tweedie probability distribution) and transform estimated values via a log-link function. The research compared results taking from two parameter estimation models for hypothesis testing: Parameter estimation through full log-likelihood model and bootstrapped parameter estimation in constrained model. The parameter estimation through maximum log-likelihood function bring in to light, potential cases of errors, which may lead to wrong conclusion while the bootstrapped estimation had trimmed outliers, measure values with high precision, and provide consistent out puts reliable to generalization. Results after the model revealed that: sex of household head (at 5%), years of cultivation (10%), distance from market (at 10%), means of transportation, (10%) and credit access (5%) had drained their proportionate substantial impact. The average value of commercialization index is 35% that likely considered very lower when compared to the average (52%) in Ethiopia. The condition of smallholder farmers in the study area appeals collaborative effort. Empirical research results reviewed that the issues that matters most varies among farmers in different locations; although sometimes overlap. Beyond merely conducting research, initiations to transform research outputs in to long-term project should be coordinated by volunteers and multiplying successful projects to similar suitable location should take in to practice.
    VL  - 11
    IS  - 2
    ER  - 

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Author Information
  • Department of Agricultural Economics, Oda Bultum University, Chiro, Ethiopia

  • Department of Agricultural Economics, Oda Bultum University, Chiro, Ethiopia

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