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

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  • Gebremedhin, Berhanu
  • Tegegne, Azage

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.

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  • Gebremedhin, Berhanu & Tegegne, Azage, 2012. "Market Orientation and Market Participation of Smallholders in Ethiopia: Implications for Commercial Transformation," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125847, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:125847
    DOI: 10.22004/ag.econ.125847
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    1. Girma Gezimu Gebre & Hiroshi Isoda & Dil Bahadur Rahut & Yuichiro Amekawa & Hisako Nomura, 2021. "Gender Gaps in Market Participation Among Individual and Joint Decision-Making Farm Households: Evidence from Southern Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 649-683, June.
    2. Kabeto, Agete Jerena, 2014. "An Analysis of Factors Influencing Participation of Smallholder Farmers in Red Bean Marketing in Halaba Special District, Ethiopia," Research Theses 198526, Collaborative Masters Program in Agricultural and Applied Economics.
    3. Eliaza Mkuna & Edilegnaw Wale, 2022. "Explaining Farmers’ Income via Market Orientation and Participation: Evidence from KwaZulu-Natal (South Africa)," Sustainability, MDPI, vol. 14(21), pages 1-16, October.
    4. Kabeto, Agete Jerena, 2014. "An Analysis Of Factors Influencing Participation Of Smallholder Farmers In Red Bean Market In Halaba Special District, Ethiopia," Research Theses 276425, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Ojiako, Ifeanyi A. & Tarawali, G. & Okechukwu, R.U. & Chianu, J.N., 2016. "Household Characteristics And Market Participation Competence Of Smallholder Farmers Supplying Cassava To Starch Processors In Nigeria," International Journal of Agricultural Research, Innovation and Technology (IJARIT), IJARIT Research Foundation, vol. 6(2), December.
    6. Girma Gezimu Gebre & Hiroshi Isoda & Dil Bahadur Rahut & Yuichiro Amekawa & Hisako Nomura, 0. "Gender Gaps in Market Participation Among Individual and Joint Decision-Making Farm Households: Evidence from Southern Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 0, pages 1-35.

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    Keywords

    commercialization; smallholders; market orientation; market participation.;
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