Binary probit model; Level of commercialization; Rural communities; Subsistence-oriented production; Two-step Heckman pattern; Food Science; Agricultural and Biological Sciences (miscellaneous)
Abstract :
[en] In several developing countries, including Ethiopia, the change from a subsistence-oriented production system to a market-oriented production system as a means of raising smallholder incomes and mitigating growing rural deprivation has been at the center of the agenda. Therefore, the purpose of this analysis was to evaluate the determinants of smallholder livestock commercialization in Tigray, Ethiopia. One hundred and eighty-three households were selected using a simple random sampling technique. The data were gathered through a structured survey. The data obtained were evaluated using econometric models of both concise and Heckman two-step collections. The results of the binary probit model revealed that in the decision to sell, household head education level, family size, distance from the nearest market center, and the total livestock ownership played a significant role. Heckman second-step selection estimation indicated that the education level of the household head, the extension agents’ visit, the total livestock owned and the owned land size significantly affected the level of commercialization measures. The findings of this study will contribute to enhancing the efficient utilization of the existing limited farmland. In this study, smallholder farmers’ access to the agricultural markets with higher value is seen as a critical opportunity to improve and diversify the livelihoods of lower-income farm households. As a result, better market participation is required to connect smallholder farmers to markets and increase demand for livestock products and income generation. The findings of this study may help in the development of appropriate policy intervention mechanisms to promote smallholder livestock commercialization in Ethiopia.
Disciplines :
Agriculture & agronomy
Author, co-author :
Belay, Gebrekiros Hagos; Department of Management, College of Business and Economics, Mekelle University, Mekelle, Ethiopia
Mengstu, Kebede Abrha; Department of Economics, College of Business and Economics, Mekelle University, Ethiopia
Mehammedberhan Kahsay, Hassen; Department of Management, College of Business and Economics, Mekelle University, Mekelle, Ethiopia
Hosseininia, Gholamhossein; Department of Entrepreneurship in Technology, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran
Işık Özgüven, Ahsen; Faculty of Agricultural Sciences and Technologies, Cyprus International University, Haspolat, Turkey
Viira, Ants-Hannes; Institute of Economics and Social Sciences, Estonian University of Life Sciences, Tartu, Estonia
Azadi, Hossein ; Université de Liège - ULiège > TERRA Research Centre > Modélisation et développement ; Department of Geography, Ghent University, Ghent, Belgium ; Research Group Climate Change and Security, Institute of Geography, University of Hamburg, Hamburg, Germany ; Faculty of Environmental Sciences, Czech University of Life Sciences Prague, Prague, Czech Republic
Language :
English
Title :
Determinants of smallholder commercialization of livestock: A case study from Tigray, Ethiopia
Bengtsson, M., Alfredsson, E., Cohen, M., Lorek, S., & Schroeder, P., (2018). Transforming systems of consumption and production for achieving the sustainable development goals: Moving beyond efficiency. Sustainability Science, 13 (6), 1533–22. https://doi.org/10.1007/s11625-018-0582-1
Benin, S., Ehui, S., & Pender, J., (2003). Policies for livestock development in the Ethiopian highlands. Environment, Development and Sustainability, 5 (3/4), 491–510. https://doi.org/10.1023/A:1025737315629
Bettencourt, E. M. V., Tilman, M., Narciso, V., Carvalho, M. L. D. S., & Henriques, P. D. D. S., (2015). The livestock roles in the wellbeing of rural communities of Timor-Leste. Revista De Economia E Sociologia Rural, 53 (suppl 1), 63–80. https://doi.org/10.1590/1234-56781806-94790053s01005
Carletto, C., Corral, P., & Guelfi, A., (2017). Agricultural commercialization and nutrition revisited: Empirical evidence from three African countries. Food Policy, 67, 106–118. https://doi.org/10.1016/j.foodpol.2016.09.020
Chege, C. G., Andersson, C. I., & Qaim, M., (2015). Impacts of supermarkets on farm household nutrition in Kenya. World Development, 72, 394–407. https://doi.org/10.1016/j.worlddev.2015.03.016
Chindime, S., Kibwika, P., Chagunda, M., & González-Redondo, P., (2017). Determinants of sustainable innovation performance by smallholder dairy farmers in Malawi. Cogent Food & Agriculture, 3 (1), 1379292. https://doi.org/10.1080/23311932.2017.1379292
Cook, S., Silici, L., Adolph, B., & Walker, S., (2015). Sustainable intensification revisited. International Institute for Environment and Development.
Da Cruz, C. J., (2003). Livestock development in east Timor. Agriculture: New Directions for a New Nation East Timor (Timor-Leste).
DeLong, K. L., Jensen, K. L., Griffith, A. P., & McLeod, E., (2019). Beef cattle farmers’ marketing preferences for selling local beef. Agribusiness, 35 (3), 343–357. https://doi.org/10.1002/agr.21579
Dominguez-Salas, P., Kauffmann, D., Breyne, C., & Alarcon, P., (2019). Leveraging human nutrition through livestock interventions: Perceptions, knowledge, barriers and opportunities in the Sahel. Food Security, 1–20.
Enete, A., & Igbokwe, E., (2009). Cassava market participation decisions of producing households in Africa. Tropicultura, 27 (3), 129–136. https://www.researchgate.net/publication/45266595_Cassava_Market_Participation_Decisions_of_Producing_Households_in_Africa
Erenstein, O., & Thorpe, W., (2010). Crop–livestock interactions along agro-ecological gradients: A meso-level analysis in the Indo-Gangetic Plains, India. Environment, Development and Sustainability, 12 (5), 669–689. https://doi.org/10.1007/s10668-009-9218-z
Fafchamps, M., (1996). The Enforcement of Commercial Contracts in Ghana. World Development, 24 (3), 427448. https://doi.org/10.1016/0305-750X(95)00143-Z
FAO. (2015). Rapsomanikis, G. (Ed.). The Economic Lives of Smallholder Farmers: An Analysis Based on Household Data from Nine Countries. Food and Agriculture Organization of the United Nations, Rome, Italy.
FAO. (2016). Agriculture in Ethiopia at a glance. http://www.fao.org/ethiopia/fao-in-ethiopia/ethiopia-at-a-glance/en/
FAO. (2017). The State of Food and Agriculture.
Forabosco, F., Chitchyan, Z., & Mantovani, R., (2017). Methane, nitrous oxide emissions and mitigation strategies for livestock in developing countries: A review. South African Journal of Animal Science, 47 (3), 268–280. https://doi.org/10.4314/sajas.v47i3.3
Franken, J. R., Pennings, J. M., & Garcia, P., (2018). Graphical Illustration of Interaction Effects in Binary Choice Models: A Note. Journal of Agricultural Economics, 69 (3), 852–858. https://doi.org/10.1111/1477-9552.12257
Gc, R. K., & Hall, R. P., (2020). The Commercialization of Smallholder Farming—A Case Study from the Rural Western Middle Hills of Nepal. Agriculture, 10 (5), 143. https://doi.org/10.3390/agriculture10050143
Gebreegziabher, Z., & Tsegay, B. A., (2015). Efficacy of cactus pear (Opuntia ficus-indica) varieties as a source of food and feed in endamehoni district, Northern Ethiopia. African Journal of Food, Agriculture, Nutrition and Development, 15 (5), 10406–10427. https://www.researchgate.net/publication/286145807_EFFICACY_OF_CACTUS_PEAR_Opuntia_ficus-indica_VARIETIES_AS_A_SOURCE_OF_FOOD_AND_FEED_IN_ENDAMEHONI_DISTRICT_NORTHERN_ETHIOPIA
Gebremedhin, B., & Jaleta, M., (2010). Commercialization of Smallholders: Is market participation enough?
Gebremedhin, B., Jaleta, M., & Hoekstra, D., (2009). Smallholders, institutional services, and commercial transformation in Ethiopia. Agricultural Economics, 40(S1), 773–787. https://doi.org/10.1111/j.1574-0862.2009.00414.x
Godber, O. F., & Wall, R., (2014). Livestock and food security: Vulnerability to population growth and climate change. Global Change Biology, 20 (10), 3092–3102. https://doi.org/10.1111/gcb.12589
Goswami, R., Dasgupta, P., Saha, S., Venkatapuram, P., Nandi, S., & Yildiz, F., (2016). Resource integration in smallholder farms for sustainable livelihoods in developing countries. Cogent Food & Agriculture, 2 (1), 1272151. https://doi.org/10.1080/23311932.2016.1272151
Gwiriri, L. C., Bennett, J., Mapiye, C., Marandure, T., & Burbi, S., (2019). Constraints to the sustainability of a ‘systematised’ approach to livestock marketing amongst smallholder cattle producers in South Africa. International Journal of Agricultural Sustainability, 17 (2), 189–204. https://doi.org/10.1080/14735903.2019.1591658
Hagos, A., Dibaba, R., Bekele, A., & Alemu, D., (2019). International Journal of Fruit Science. https://doi.org/10.1080/15538362.2019.1640167
Hatab, A. A., Cavinato, M. E. R., & Lagerkvist, C. J., (2019). Urbanization, livestock systems and food security in developing countries: A systematic review of the literature. Food Security, 11 (2), 279–299. https://doi.org/10.1007/s12571-019-00906-1
Heckman, J. J., (1979). Sample selection bias as a specification error. Econometrica: Journal of the Econometric Society, 47 (1), 153–161. https://doi.org/10.2307/1912352
Herrero, M., Grace, D., Njuki, J., Johnson, N., Enahoro, D., Silvestri, S., & Rufino, M. C., (2013). The roles of livestock in developing countries. Animal: An International Journal of Animal Bioscience, 7 (s1), 3. https://doi.org/10.1017/S1751731112001954
Herrero, M., Havlik, P., McIntire, J., Palazzo, A., & Valin, H., (2014). African Livestock Futures: Realizing the potential of livestock for food security, poverty reduction and the environment in Sub-Saharan Africa.
Herrero, M., Thornton, P. K., Gerber, P., & Reid, R. S., (2009). Livestock, livelihoods and the environment: Understanding the trade-offs. Current Opinion in Environmental Sustainability, 1 (2), 111–120. https://doi.org/10.1016/j.cosust.2009.10.003
IFAD. (2015). Smallholder Livestock Develop: Scaling Up Note. International Fund for Agricultural Development, Rome, Italy.
Iizuka, M., & Gebreeyesus, M., (2017). Using functions of innovation systems to understand the successful emergence of non-traditional agricultural export industries in developing countries: Cases from Ethiopia and Chile. The European Journal of Development Research, 29 (2), 384–403. https://doi.org/10.1057/s41287-016-0004-0
Ingram, J., (2011). A food systems approach to researching food security and its interactions with global environmental change. Food Security, 3 (4), 417–431. https://doi.org/10.1007/s12571-011-0149-9
Jayne, T., Haggblade, S., Minot, N., & Rashid, S., (2011). Agricultural commercialization, rural transformation and poverty reduction: What have we learned about how to achieve this?, Synthesis report prepared for the African Agricultural Markets Programme Policy Symposium, Alliance for Commodity Trade in Eastern and Southern Africa April.
Jiang, Y., Zhang, Q., Niu, J., & Wu, J., (2019). Pastoral Population Growth and Land Use Policy Has Significantly Impacted Livestock Structure in Inner Mongolia—A Case Study in the Xilinhot Region. Sustainability, 11 (24), 7208. https://doi.org/10.3390/su11247208
Khoza, T., Senyolo, G., Mmbengwa, V., Soundy, P., Sinnett, D., & Sinnett, D., (2019). Socio-economic factors influencing smallholder farmers’ decision to participate in agro-processing industry in Gauteng province, South Africa. Cogent Social Sciences, 5 (1), 1664193. https://doi.org/10.1080/23311886.2019.1664193
Krammer, S. M., (2017). Science, technology, and innovation for economic competitiveness: The role of smart specialization in less-developed countries. Technological Forecasting and Social Change, 123, 95–107. https://doi.org/10.1016/j.techfore.2017.06.028
Kyaw, N. N., Ahn, S., & Lee, S. H., (2018). Analysis of the factors influencing market participation among smallholder rice farmers in magway region, central dry zone of Myanmar. Sustainability, 10 (12), 4441. https://doi.org/10.3390/su10124441
Lam, Y., Fry, J. P., & Nachman, K. E., (2019). Applying an environmental public health lens to the industrialization of food animal production in ten low- and middle-income countries. Globalization and Health, 15 (1), 40. https://doi.org/10.1186/s12992-019-0479-5
Leavy, J., Poulton, C., & Poulton, C., (2008). Commercialisations in agriculture. Ethiopian Journal of Economics, 16 (1), 1–37. https://doi.org/10.4314/eje.v16i1.39822
Linderhof, V., Janssen, V., & Achterbosch, T., (2019). Does agricultural commercialization affect food security: The case of crop-producing households in the regions of post-reform Vietnam? Towards Sustainable Global Food Systems, 15.
Lutta, A. I., Wasonga, O. V., Robinson, L. W., Nyangito, M. M., & Sircely, J., (2020). Determinants of livestock market participation among pastoral communities of Tana River County, Kenya. Environment, Development and Sustainability, 1–19.
Matsuda, H., Ogata, Y., Takagi, A., & Kurokura, H., (2018). Farmers’ Behavior for Introducing Livestock to Respond to External Shocks (Resilient Asia). Springer.
Mayberry, D., Ash, A., Prestwidge, D., Godde, C. M., Henderson, B., Duncan, A., Blummel, M., Reddy, Y. R., & Herrero, M., (2017). Yield gap analyses to estimate attainable bovine milk yields and evaluate options to increase production in Ethiopia and India. Agricultural Systems, 155, 43–51. https://doi.org/10.1016/j.agsy.2017.04.007
Mekonnen, W., & Worku, A., (2011). Determinants of low family planning use and high unmet need in Butajira District, South Central Ethiopia. Reproductive Health, 8 (1), 37. https://doi.org/10.1186/1742-4755-8-37
Mezgebe, G., Gizaw, S., Urge, M., & Chavhan, A., (2017). Begait cattle production systems and production performances in northern Ethiopia. Int. J. Of Life Sciences, 5 (4), 506–516. https://www.researchgate.net/publication/321655758_Begait_cattle_production_systems_and_production_performances_in_northern_Ethiopia
Motbainor, A., & Taye, A., (2019). Wasting in under five children is significantly varied between rice producing and non-producing households of Libokemkem district, Amhara region, Ethiopia. BMC Pediatrics, 19 (1), 300. https://doi.org/10.1186/s12887-019-1677-2
Musemwa, L., Mushunje, A., Chimonyo, M., & Mapiye, C., (2010). Low cattle market off-take rates in communal production systems of South Africa: Causes and mitigation strategies. Journal of Sustainable Development in Africa, 12 (5), 209–226. https://www.researchgate.net/publication/261712433_Low_Cattle_Market_off-take_rates_in_communal_production_systems_of_South_Africa_Causes_and_Mitigation_Strategies
Muzzo, B., & Provenza, F., (2018). A review of strategies for overcoming challenges of beef production in Tanzania. Livestock Research for Rural Development, 30 (12), 1–11. https://www.researchgate.net/publication/329454048_A_review_of_strategies_for_overcoming_challenges_of_beef_production_in_Tanzania
Nasir, I. M., Mulugeta, W., & Kassa, B., (2017). Impact of commercialization on rural households’ food security in major coffee growing areas of South West Ethiopia: The case of Jimma Zone. Int J Econ Manag Sci, 6 (437), 2. https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/6968
Nwafor, C. U., Ogundeji, A. A., & Van Der Westhuizen, C., (2020). Adoption of ICT-Based Information Sources and Market Participation among Smallholder Livestock Farmers in South Africa. Agriculture, 10 (2), 44. https://doi.org/10.3390/agriculture10020044
O’Mara, F. P., (2011). The significance of livestock as a contributor to global greenhouse gas emissions today and in the near future. Animal Feed Science and Technology, 166-167, 7–15. https://doi.org/10.1016/j.anifeedsci.2011.04.074
Ochieng, J., Knerr, B., Owuor, G., & Ouma, E., (2020). Food crops commercialization and household livelihoods: Evidence from rural regions in Central Africa. Agribusiness, 36 (2), 318–338. https://doi.org/10.1002/agr.21619
Ogutu, S. O., Gödecke, T., & Qaim, M., (2017). Agricultural commercialization and nutrion in smallholder farm households.
Ogutu, S. O., Gödecke, T., & Qaim, M., (2020). Agricultural commercialisation and nutrition in smallholder farm households. Journal of Agricultural Economics, 71 (2), 534–555. https://doi.org/10.1111/1477-9552.12359
Okereke, C., Coke, A., Geebreyesus, M., Ginbo, T., Wakeford, J. J., & Mulugetta, Y., (2019). Governing green industrialisation in Africa: Assessing key parameters for a sustainable socio-technical transition in the context of Ethiopia. World Development, 115, 279–290. https://doi.org/10.1016/j.worlddev.2018.11.019
Olwande, J., & Mathenge, M. K., (2011). Market participation among poor rural households in Kenya.
Omondi, S. O., Oluoch‐Kosura, W., & Jirström, M., (2017). The role of urban-based agriculture on food security: Kenyan case studies. Geographical Research, 55 (2), 231–241. https://doi.org/10.1111/1745-5871.12234
Pingali, P., Aiyar, A., Abraham, M., & Rahman, A., (2019). Enabling smallholder prosperity through commercialization and diversification transforming food systems for a rising India. Springer.
Pingali, P. L., (2001). Environmental consequences of agricultural commercialization in Asia. Environment and Development Economics, 483–502.
Pradhan, R. P., Arvin, M. B., Nair, M., & Bennett, S. E., (2017). Venture capital investment, financial development, and economic growth: The case of European single market countries. Venture Capital, 19 (4), 313–333. https://doi.org/10.1080/13691066.2017.1332802
Rabbi, A., Rabbi, F., Ahamad, R., Ali, S., Chandio, A. A., Ahmad, W., Ilyas, A., & Din, I. U., (2019). Determinants of commercialization and its impact on the welfare of smallholder rice farmers by using Heckman’s two-stage approach. Journal of the Saudi Society of Agricultural Sciences, 18 (2), 224–233. https://doi.org/10.1016/j.jssas.2017.06.001
Rehman, A., Jingdong, L., Chandio, A. A., & Hussain, I., (2017). Livestock production and population census in Pakistan: Determining their relationship with agricultural GDP using econometric analysis. Information Processing in Agriculture, 4 (2), 168–177. https://doi.org/10.1016/j.inpa.2017.03.002
Reist, S., Hintermann, F., & Sommer, R., (2007). The livestock revolution: An opportunity for poor farmers. Info Resources focus-Focus(1/07), 1-16.
Rivera‐Ferre, M., López‐i‐gelats, F., Howden, M., Smith, P., Morton, J., & Herrero, M., (2016). Re‐framing the climate change debate in the livestock sector: Mitigation and adaptation options. Wiley Interdisciplinary Reviews: Climate Change, 7 (6), 869–892. https://doi.org/10.1002/wcc.421
Rosairo, H. S. R., Lyne, M. C., Martin, S. K., & Moore, K., (2012). Factors Affecting the Performance of Farmer Companies in Sri Lanka: Lessons for Farmer-Owned Marketing Firms. Agribusiness, 28 (4), 505–517. https://doi.org/10.1002/agr.21312
Ruben, R., & Pender, J., (2004). Rural diversity and heterogeneity in less-favoured areas: The quest for policy targeting. Food Policy, 29 (4), 303–320. https://doi.org/10.1016/j.foodpol.2004.07.004
Salmon, G., Teufel, N., Baltenweck, I., Van Wijk, M., Claessens, L., & Marshall, K., (2018). Trade-offs in livestock development at farm level: Different actors with different objectives. Global Food Security, 17, 103–112. https://doi.org/10.1016/j.gfs.2018.04.002
Sehar, M., (2018). Factors influencing market access and livestock marketing inefficiency in Mpumalanga Province, South Africa.
Singh, S., (2019). Re-organising agricultural markets for doubling farmer incomes in India: Relevance,mechanisms and role of policy. Indian J Agri Econ, 74 (3), 390–407.
Staal, S. J., Poole, E. J., Baltenweck, I., Mwacharo, J. M., Notenbaert, A. M. O., Randolph, T. F., Thorpe, W., Nzuma, J., & Herrero, M. T., (2009). Targeting strategic investment in livestock development as a vehicle for rural livelihoods.
Tarekegn, K., Haji, J., & Tegegne, B., (2017). Determinants of honey producer market outlet choice in Chena District, southern Ethiopia: A multivariate probit regression analysis. Agricultural and Food Economics, 5 (1), 20. https://doi.org/10.1186/s40100-017-0090-0
Thornton, P. K., (2010). Livestock production: Recent trends, future prospects. Philosophical Transactions of the Royal Society B: Biological Sciences, 365 (1554), 2853–2867. https://doi.org/10.1098/rstb.2010.0134
Tibesigwa, B., Visser, M., & Turpie, J., (2017). Climate change and South Africa’s commercial farms: An assessment of impacts on specialised horticulture, crop, livestock and mixed farming systems. Environment, Development and Sustainability, 19 (2), 607–636. https://doi.org/10.1007/s10668-015-9755-6
Van Ittersum, M., Van Bussel, L., Wolf, J., Grassini, P., Van Wart, J., Guilpart, N., Claessens, L., De Groot, H., & Wiebe, K., (2016). Mason-D′ croz. D., Yang, HS, Boogaard, H., Van Oort, PAJ, Van Loon, MP, Saito, K., Adimo, O., Adjei-Nsiah, S., Agali, A., Bala, A., Chikowo, R., Kaizzi, K., Kouressy, M., Makoi, JHJR, Ouattara, K., Tesfaye, K., Cassman, KG, 14964–14969.
Värnik, R., Aste, R., & Ariva, J., (2017). Sustainable Intensification in Crop Farming–A Case from Estonia. In S., Pedersen & K., Lind (Eds.), Precision Agriculture: Technology and Economic Perspectives. Progress in Precision Agriculture (pp. 201–221). Springer.
WHO. (2003). Availability and changes in consumption of animal products. http://www.who.int/nutrition/topics/3_Foodconsumption/en/index4.html
Willy, D. K., Muyanga, M., & Jayne, T., (2019). Can economic and environmental benefits associated with agricultural intensification be sustained at high population densities? A farm level empirical analysis. Land Use Policy, 81, 100–110. https://doi.org/10.1016/j.landusepol.2018.10.046
Wooldridge, J. M., (2002). Econometric analysis of cross section and panel data MIT press. Cambridge, MA, 108.
World Bank. (2007). World Development Report 2007, Agriculture for Development.
Wubneh, M., (2018). Policies and praxis of land acquisition, use, and development in Ethiopia. Land Use Policy, 73, 170–183. https://doi.org/10.1016/j.landusepol.2018.01.017
Zuwarimwe, J., & Mbaai, S., (2015). Factors influencing smallholder farmers decisions to participate in livestock markets in Namibia. Journal of Development and Agricultural Economics, 7 (7), 253–260. https://doi.org/10.5897/JDAE2014.0562
