IDEAS home Printed from https://ideas.repec.org/a/ags/apstra/339834.html

Analysis of household crop commercialization in Nigeria

Author

Listed:
  • Alawode, Olubunmi Olanike
  • Makinde, Olumuyiwa Lekan

Abstract

Nigeria is experiencing a gradual shift from subsistence to commercialized agriculture, thereby increasing involvement and activities at different nodes of agribusiness. Participation of farmers in markets is an important determinant of well-being and development, and one of the pathways towards economic growth. This study analysed household crop commercialization in Nigeria. The secondary data used were the General Household Survey (GHS, 2018) Wave 4. Data were analysed using descriptive statistics, household crop commercialization index (HCCI) and ordered probit regression model. Mean age of Nigerian farmers was 50.04 years (±15.22), majority (85.68%) were male, married (82.51%), and 72.14% had formal education. Farming is viable in all the geopolitical zones and majority (87.64%) of the farmers were from the rural sector, holding a mean total plot size of 12.61(±15.63) hectares, and planted 3 crops on the average. The most produced crop categories are cereals (46.75%), tubers (20.70%) and legumes (19.00%); legumes and cereals are highest in the North, and tubers in the South. Subsistence households were 32.81% (HCCI=0), only 1.71% of the households were fully commercial (HCCI=100), while semi-subsistence households (0≤HCCI≤100) constitute 65.48%. Years of education (p<0.05) and crop production in North East and North West zones (p<0.01) constrain commercialization, while at p<0.01, crop production in the rural sector and the South zones, and increased land holding are the drivers of household crop commercialization in Nigeria. Nigerian farming households are mainly semi-subsistence and are diversified in crop production. Nigeria relies more on market participation of the semi-subsistence households, through their marketable surplus, to feed her teeming population and for exports. Further attention on rural infrastructure development in all geopolitical zones and awareness creation on producing market oriented products will increase agribusiness activities. This will generate green decent jobs that will take unemployed youths off the streets of urban centres. This is in tune with the economy diversification bid and the new Nigeria Economic Sustainability Plan of the Federal Government of Nigeria.

Suggested Citation

  • Alawode, Olubunmi Olanike & Makinde, Olumuyiwa Lekan, 2021. "Analysis of household crop commercialization in Nigeria," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 15(3-4), December.
    • Handle: RePEc:ags:apstra:339834
    DOI: 10.22004/ag.econ.339834
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/339834/files/Alawode.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.339834?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    2. Justus, Ochieng & Knerr, Beatrice & Owuor, George & Ouma, Emily, 2015. "Agricultural commercialization and household food security: The case of smallholders in Great Lakes Region of Central Africa," 2015 Conference, August 9-14, 2015, Milan, Italy 212588, International Association of Agricultural Economists.
    3. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    2. Rao, Elizaphan J. O. & Omondi, Immaculate & Karimov, Aziz A. & Baltenweck, Isavelle, . "Dairy farm households, processor linkages and household income: the case of dairy hub linkages in East Africa," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4).
    3. Oliver Schulte & Trung Thanh Nguyen & Ulrike Grote, 2022. "The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2878-2898, December.
    4. Bagchi, Niladri Sekhar & Mishra, Pulak & Behera, Bhagirath, 2021. "Value chain development for linking land-constrained farmers to markets: Experience from two selected villages of West Bengal, India," Land Use Policy, Elsevier, vol. 104(C).
    5. Okello, Julius J. & Zhou, Yuan & Kwikiriza, Norman & Ogutu, Sylvester & Barker, Ian & Schulte-Geldermann, Elmar & Ahmed, Justin & Atieno, Elly, "undated". "Welfare-environmental quality tradeoffs of promoting use of certified seed potato in tropical highlands of Africa: Evidence from central highlands of Kenya," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236242, Agricultural and Applied Economics Association.
    6. Do, Manh Hung & Nguyen, Trung Thanh, 2024. "Impact of crop commercialization on smallholder farmers’ resilience to shocks: Evidence from panel data for rural Southeast Asia," Food Policy, Elsevier, vol. 128(C).
    7. Ousmanou Njikam & Hamidou Azi Alhadji, 2017. "Technical Efficiency among Smallholder Rice Farmers: A Comparative Analysis of Three Agro-ecological Zones in Cameroon," African Development Review, African Development Bank, vol. 29(1), pages 28-43, March.
    8. Guyo Godana Dureti & Martin Paul Jr. Tabe‐Ojong & Enoch Owusu‐Sekyere, 2023. "The new normal? Cluster farming and smallholder commercialization in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 54(6), pages 900-920, November.
    9. Ranran Hu & Hongwei Fang & Weizhong Liu, 2025. "How Do Vertical Alliances Form in Agricultural Supply Chains?—An Evolutionary Game Analysis Based on Chinese Experience," Sustainability, MDPI, vol. 17(17), pages 1-25, September.
    10. Mwangi, Joseph Kanyua & Crewett, Wibke, 2019. "The impact of irrigation on small-scale African indigenous vegetable growers’ market access in peri-urban Kenya," Agricultural Water Management, Elsevier, vol. 212(C), pages 295-305.
    11. Ogutu, Sylvester Ochieng & Qaim, Matin, 2019. "Commercialization of the small farm sector and multidimensional poverty," World Development, Elsevier, vol. 114(C), pages 281-293.
    12. Cazzuffi, Chiara & McKay, Andy & Perge, Emilie, 2020. "The impact of agricultural commercialisation on household welfare in rural Vietnam," Food Policy, Elsevier, vol. 94(C).
    13. Surendran Arumugam & Ramu Govindasamy & James E. Simon & Emil Wyk & Burhan Ozkan, 2022. "Market outlet choices for African Indigenous Vegetables (AIVs): a socio-economic analysis of farmers in Zambia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-13, December.
    14. Hao, Jinghui & Bijman, Jos & Gardebroek, Cornelis & Heerink, Nico & Heijman, Wim & Huo, Xuexi, 2018. "Cooperative membership and farmers’ choice of marketing channels – Evidence from apple farmers in Shaanxi and Shandong Provinces, China," Food Policy, Elsevier, vol. 74(C), pages 53-64.
    15. Eunice Adu Donkor & Elena Garnevska & Muhammad Imran Siddique & Emmanuel Donkor, 2021. "Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    16. Luitfred Kissoly & Anja Faße & Ulrike Grote, 2017. "The integration of smallholders in agricultural value chain activities and food security: evidence from rural Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1219-1235, December.
    17. Simphiwe Innocentia Hlatshwayo & Mjabuliseni Ngidi & Temitope Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow, 2021. "A Typology of the Level of Market Participation among Smallholder Farmers in South Africa: Limpopo and Mpumalanga Provinces," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
    18. Donkor, Emmanuel & Mbeche, Robert & Mithöfer, Dagmar, . "Strategic business decisions of retailers in the edible insect value chain in Uganda," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(2).
    19. Florence Opondo & George Owuor & Patience Mshenga & Andre Louw & Daniel Jordan, 2024. "Estimation of the Effect of Cassava Commercialization on Different Household Income Measurements in Kilifi County, Kenya," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 13(1), pages 1-44, July.
    20. Thai Thuy Pham & Ludwig Theuvsen & Verena Otter, 2019. "Determinants of Smallholder Farmers' Marketing Channel Choice: Evidence from the Vietnamese Rice Sector," Asian Economic Journal, East Asian Economic Association, vol. 33(3), pages 281-300, September.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:apstra:339834. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.apstract.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.