Role of agricultural commercialization in the agricultural transformation of Ethiopia: Trends, drivers, and impact on well-being

Role of agricultural commercialization in the agricultural transformation of Ethiopia: Trends, drivers, and impact on well-being
Author: Minot, Nicholas
Publisher: Intl Food Policy Res Inst
Total Pages: 68
Release: 2023-01-23
Genre: Political Science
ISBN:

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 Rwanda: Current market participation and drivers

Crop commercialization in Rwanda: Current market participation and drivers
Author: Warner, James
Publisher: Intl Food Policy Res Inst
Total Pages: 32
Release: 2024-05-13
Genre: Political Science
ISBN:

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.

An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?

An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?
Author: Diao, Xinshen, ed.
Publisher: Intl Food Policy Res Inst
Total Pages: 548
Release: 2020-12-07
Genre: Political Science
ISBN: 0896293807

Agricultural mechanization in Africa south of the Sahara — especially for small farms and businesses — requires a new paradigm to meet the needs of the continent’s evolving farming systems. Can Asia, with its recent success in adopting mechanization, offer a model for Africa? An Evolving Paradigm of Agricultural Mechanization Development analyzes the experiences of eight Asian and five African countries. The authors explore crucial government roles in boosting and supporting mechanization, from import policies to promotion policies to public good policies. Potential approaches presented to facilitating mechanization in Africa include prioritizing market-led hiring services, eliminating distortions, and developing appropriate technologies for the African context. The role of agricultural mechanization within overall agricultural and rural transformation strategies in Africa is also discussed. The book’s recommendations and insights should be useful to national policymakers and the development community, who can adapt this knowledge to local contexts and use it as a foundation for further research.

Agricultural Commercialization, Economic Development, and Nutrition

Agricultural Commercialization, Economic Development, and Nutrition
Author: Joachim Von Braun
Publisher: International Food Policy Research Insitute
Total Pages: 444
Release: 1994
Genre: Business & Economics
ISBN:

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.

2021 Global food policy report: Transforming food systems after COVID-19: Synopsis

2021 Global food policy report: Transforming food systems after COVID-19: Synopsis
Author: International Food Policy Research Institute (IFPRI)
Publisher: Intl Food Policy Res Inst
Total Pages: 8
Release: 2021-04-13
Genre: Political Science
ISBN: 0896294013

The coronavirus pandemic has upended local, national, and global food systems, and put the Sustainable Development Goals further out of reach. But lessons from the world’s response to the pandemic can help address future shocks and contribute to food system change. In the 2021 Global Food Policy Report, IFPRI researchers and other food policy experts explore the impacts of the pandemic and government policy responses, particularly for the poor and disadvantaged, and consider what this means for transforming our food systems to be healthy, resilient, efficient, sustainable, and inclusive. Chapters in the report look at balancing health and economic policies, promoting healthy diets and nutrition, strengthening social protection policies and inclusion, integrating natural resource protection into food sector policies, and enhancing the contribution of the private sector. Regional sections look at the diverse experiences around the world, and a special section on finance looks at innovative ways of funding food system transformation. Critical questions addressed include: - Who felt the greatest impact from falling incomes and food system disruptions caused by the pandemic? - How can countries find an effective balance among health, economic, and social policies in the face of crisis? - How did lockdowns affect diet quality and quantity in rural and urban areas? - Do national social protection systems such as cash transfers have the capacity to protect poor and vulnerable groups in a global crisis? - Can better integration of agricultural and ecosystem polices help prevent the next pandemic? - How did companies accelerate ongoing trends in digitalization and integration to keep food supply chains moving? - What different challenges did the pandemic spark in Asia, Africa, and Latin America and how did these regions respond?

Global Trends 2040

Global Trends 2040
Author: National Intelligence Council
Publisher: Cosimo Reports
Total Pages: 158
Release: 2021-03
Genre:
ISBN: 9781646794973

"The ongoing COVID-19 pandemic marks the most significant, singular global disruption since World War II, with health, economic, political, and security implications that will ripple for years to come." -Global Trends 2040 (2021) Global Trends 2040-A More Contested World (2021), released by the US National Intelligence Council, is the latest report in its series of reports starting in 1997 about megatrends and the world's future. This report, strongly influenced by the COVID-19 pandemic, paints a bleak picture of the future and describes a contested, fragmented and turbulent world. It specifically discusses the four main trends that will shape tomorrow's world: - Demographics-by 2040, 1.4 billion people will be added mostly in Africa and South Asia. - Economics-increased government debt and concentrated economic power will escalate problems for the poor and middleclass. - Climate-a hotter world will increase water, food, and health insecurity. - Technology-the emergence of new technologies could both solve and cause problems for human life. Students of trends, policymakers, entrepreneurs, academics, journalists and anyone eager for a glimpse into the next decades, will find this report, with colored graphs, essential reading.

Cooperatives for Staple Crop Marketing

Cooperatives for Staple Crop Marketing
Author: Tanguy Bernard
Publisher: Intl Food Policy Res Inst
Total Pages: 104
Release: 2010
Genre: Business & Economics
ISBN: 0896291758

Rural producer organizations (RPOs), such as farmers' organizations or rural cooperatives, offer a means for smallholder farmers in developing countries to sell their crops commercially. RPOs hold particular promise for Sub-Saharan Africa, where small-scale farming is the primary livelihood but commercialization of food crops is very limited. Using the experience of smallholders in Ethiopia as a case study, this research monograph identifies the benefits of RPOs for small farmers, as well as the conditions under which such organizations most successfully promote smallholder commercialization. The evidence from Ethiopia indicates that RPOs do increase farmers' profits from crop sales, but that the beneficiaries do not tend to be the poorest smallholders. Moreover, an RPO's marketing effectiveness is precarious: it can easily diminish if the number or diversity of its members increases or if it provides more non-marketing services. The authors conclude that RPOs have a role to play in the agricultural development of Sub-Saharan Africa, but that role should be complemented by other programs that directly target the poorest farmers. Further, the effectiveness of RPOs should be preserved by allowing them to follow their own agendas rather than being encouraged to take on non-marketing activities. The assessment of RPOs presented in this monograph should be a valuable resource for policymakers and researchers concerned with economic development and poverty reduction in Sub-Saharan Africa.

OECD-FAO Agricultural Outlook 2021–2030

OECD-FAO Agricultural Outlook 2021–2030
Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
Total Pages: 337
Release: 2021-07-05
Genre: Political Science
ISBN: 9251346089

The Agricultural Outlook 2021-2030 is a collaborative effort of the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO) of the United Nations. It brings together the commodity, policy and country expertise of both organisations as well as input from collaborating member countries to provide an annual assessment of the prospects for the coming decade of national, regional and global agricultural commodity markets. The publication consists of 11 Chapters; Chapter 1 covers agricultural and food markets; Chapter 2 provides regional outlooks and the remaining chapters are dedicated to individual commodities.

Shock Waves

Shock Waves
Author: Stephane Hallegatte
Publisher: World Bank Publications
Total Pages: 227
Release: 2015-11-23
Genre: Business & Economics
ISBN: 1464806748

Ending poverty and stabilizing climate change will be two unprecedented global achievements and two major steps toward sustainable development. But the two objectives cannot be considered in isolation: they need to be jointly tackled through an integrated strategy. This report brings together those two objectives and explores how they can more easily be achieved if considered together. It examines the potential impact of climate change and climate policies on poverty reduction. It also provides guidance on how to create a “win-win†? situation so that climate change policies contribute to poverty reduction and poverty-reduction policies contribute to climate change mitigation and resilience building. The key finding of the report is that climate change represents a significant obstacle to the sustained eradication of poverty, but future impacts on poverty are determined by policy choices: rapid, inclusive, and climate-informed development can prevent most short-term impacts whereas immediate pro-poor, emissions-reduction policies can drastically limit long-term ones.

Farming Systems and Poverty

Farming Systems and Poverty
Author: John A. Dixon
Publisher: Food & Agriculture Org.
Total Pages: 424
Release: 2001
Genre: Business & Economics
ISBN: 9789251046272

A joint FAO and World Bank study which shows how the farming systems approach can be used to identify priorities for the reduction of hunger and poverty in the main farming systems of the six major developing regions of the world.