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Farm Households’ Livelihood Diversification into Agro-processing and Non-agro-processing Activities: Empirical Evidence from Ghana

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  • John K.M Kuwornu
  • Moses Dumayiri

Abstract

This study seeks to identify the types of agro-processing and non-agro-processing activities in the Upper West Region of Ghana and the factors influencing households’ choice of diversification into each of these groups of activities as livelihood strategies. The study employs the multinomial logit model to identify the determinants of diversification. Data were obtained from a survey conducted by the International Food Policy Research Institute (IFPRI) in December, 2012 covering production activities for the 2011 agricultural year. The Primary data were collected from two hundred and fifty (250) food crop farmers selected using a multistage sampling procedure. The empirical results indicate that households in the Upper West Region diversify their livelihoods activities to agro-processing and activities not related to agro-processing. Households who are likely to diversify are females who are high income earners with small farm sizes. Further, educated and asset-rich farmers who produce for subsistence only are more likely to diversify to agro-processing while access to credit will influence diversification but not necessarily into agro-processing. These results have implications for the development of agro-processing ventures in developing countries.

Suggested Citation

  • John K.M Kuwornu & Moses Dumayiri, 2014. "Farm Households’ Livelihood Diversification into Agro-processing and Non-agro-processing Activities: Empirical Evidence from Ghana," Information Management and Business Review, AMH International, vol. 6(4), pages 191-199.
    • Handle: RePEc:rnd:arimbr:v:6:y:2014:i:4:p:191-199
    DOI: 10.22610/imbr.v6i4.1114
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    References listed on IDEAS

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    4. Alwang, Jeffrey & Jansen, Hans G.P. & Siegel, Paul B. & Pichon, Francisco, 2005. "Geographic space, assets, livelihoods and well-being in rural Central America: empirical evidence from Guatemala, Honduras and Nicaragua," DSGD discussion papers 26, International Food Policy Research Institute (IFPRI).
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    1. Ayifah, Emmanuel & Romm, Aylit Tina & Kollamparambil, Umakrishnan, 2021. "The relationship between religion and livelihood activities of women: Empirical evidence from the Yilo and Lower Manya Krobo Districts of Eastern Ghana," Research in International Business and Finance, Elsevier, vol. 55(C).
    2. Tien D. N. Ho & John K. M. Kuwornu & Takuji W. Tsusaka, 2022. "Factors Influencing Smallholder Rice Farmers’ Vulnerability to Climate Change and Variability in the Mekong Delta Region of Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 272-302, February.
    3. Alexis Habiyaremye & Evans Mupela, 2019. "How effective is local beneficiation policy in enhancing rural income and employment? The case of agro-processing beneficiation in Tzaneen, South Africa," Local Economy, London South Bank University, vol. 34(4), pages 329-345, June.

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