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Stable food crops turning in to commercial crops: case studies of Teff, wheat and rice in Ethiopia

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  • Berhanu, G/medhin
  • Hoekstra, Dirk

Abstract

Teff, wheat and rice are becoming important market oriented crops in Ethiopia. This study aims at measuring the level of market orientation of households in these crops, identifying the important market places and market outlets used by producers, and analyzing the determinants of market orientation in these crops. Results are based on analysis of data collected from community (peasant association) and household surveys in three districts in three regional states of the country in 2005. Analysis of descriptive information and econometric analysis are used. About 65 - 77% of households produce these market oriented commodities in the study areas, on about 27 – 44% of the total cultivated land. About 47 – 60% of the produce of these market oriented commodities is sold. The important market places for producers of these commodities are the district town markets and markets located at the peasant associations within the district. Wholesalers and retailers are the most important buyers from producers. Average distance to market places for these commodities is about two walking hours. Econometric analyses show that market orientation of households is affected by a host of factors related to household demographics, household endowments of human and physical capital, access to institutional services, and village level factors. Size of cultivable land and traction power, and household labor supply are important factors that induce households to be market oriented. While household size tends to favor food security objectives, number of dependents is associated with market orientation. Population control measures could contribute to market orientation through their effect of reducing household subsistence requirements. Our results also imply that interventions to improvements markets operations in order to benefit producers need to consider the operation of district level markets. Improving the operations of factor markets of land, traction and farm labor could contribute to enhancing market orientation of farm households. Special attention is needed to female headed households in the process of commercial transformation of subsistence agriculture. The development and institutionalization of marketing extension warrants due consideration.

Suggested Citation

  • Berhanu, G/medhin & Hoekstra, Dirk, 2009. "Stable food crops turning in to commercial crops: case studies of Teff, wheat and rice in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 17(1), pages 1-80, February.
    • Handle: RePEc:ags:eeaeje:249690
    DOI: 10.22004/ag.econ.249690
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    References listed on IDEAS

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    1. Pingali, Prabhu L. & Rosegrant, Mark W., 1995. "Agricultural commercialization and diversification: processes and policies," Food Policy, Elsevier, vol. 20(3), pages 171-185, June.
    2. Prabhu L. Pingali, 1997. "From Subsistence to Commercial Production Systems: The Transformation of Asian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 628-634.
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    1. Wole kinati, 2018. "The Impact of Agricultural Improvement Intervention Through Market Development on the Livelihoods of Rural Farmers in Ethiopia: A Propensity Score Matching Application," International Journal of Sciences, Office ijSciences, vol. 7(02), pages 1-10, February.

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