Market Orientation and Market Participation of Smallholders in Ethiopia: Implications for Commercial Transformation

Berhanu Gebremedhin and Azage Tegegne

No 125847, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

Abstract: The literature on commercial transformation of smallholders makes little distinction between market orientation and market participation. This paper analyzes the determinants of market orientation and market participation in Ethiopia separately and examines if market orientation translates into market participation. Results show that subsistence requirements, market access, and production factors affect market orientation, while market access and volume of production affect market participation. Results also show that market orientation translates strongly into market participation. The key implication of this study is that interventions aimed at promoting commercial transformation of subsistence agriculture should follow two-pronged approach: improving market orientation of smallholders at production level, and facilitation of market entry and participation of households in output markets. Focusing on either may not be as effective in achieving the transformation.

Keywords: commercialization; smallholders; market orientation; market participation.; Agribusiness; Marketing (search for similar items in EconPapers)
Pages: 25
Date: 2012
New Economics Papers: this item is included in nep-afr and nep-agr
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:125847

DOI: 10.22004/ag.econ.125847

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