A Review on Smallholders’ Agricultural Commercialization in Ethiopia: what are the Driving Factors to focus on?

Course ID
Ethiopian Economics Association (EEA)
Afework Hagos

The current Ethiopian economy is based on agriculture and transition from subsistence to commercial agriculture, often referred to as the commercialization of agriculture. Commercialization of agriculture is therefore the strategy Ethiopia is following to bring a dynamic change to transform the traditional agriculture of smallholder farmers. As a result, this paper reviews the literature on smallholder commercialization to explore the conceptual developments in smallholder commercialization, measurements in the degree of commercialization, and the major determinants of smallholder commercialization. This paper provides an overview of recent evidence on what factors affect smallholder farmers’ commercialization in Ethiopia and what factors contribute to the improvement of rural livelihoods. According to empirical reviews, the major determinants of smallholder farmers’ commercialization in general are classified into eight. These includes population growth and demographic change, technologies, institutions, risks, markets and their integration, transaction costs, asset holdings of the households and policy aspects. The paper also investigated policy recommendations made by different studies aimed at facilitating the smooth process of smallholder agriculture from subsistence to commercial farming. Based on the review, the paper draws general conclusions and directions for future research.

Corporate Author: Ethiopian Economics Association (EEA)
Publisher: Ethiopian Economics Association (EEA)
ISBN/ISSN: 978-99944-54-45-7
Primary Descriptors: Market orientation

Secondary Descriptor: Farmers – Ethiopia

Geographic Descriptors: Ethiopia
Cataloge Date: 10/02/2015
Broad Subject heading: Agriculture – Economic aspects
Call Number: 330.963 PRO 2015
Serial Key Title: Proceedings of the Twelfth International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: II
Publication date: 2015-06-01 00:00:00
Conference Place: EEA Conference Center
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annually
Author: Afework Hagos and Endrias Geta
Conference date: July 16 to 19, 2014

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