Determinants of smallholder commercialization of livestock: A case study from Tigray, Ethiopia

Abstract

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.

Analyzing the determinants of beef cattle commercialization and Its market inefficiency: A case study of Pabna district, Bangladesh

“…The Heckman two-stage model is reasonable here for this significant lamda. The result is similar to [80,81].…”

“…The positive relation revealed that education strengthened the capacity of beef cattle relevant development and marketing knowledge, which boosts profit maximisation from beef cattle. Studies [81,91] found the same positive relationship between commercialization and education.…”

Youth engagement in livestock production and marketing in East Africa

“…In Kenya, youth, relative to nonyouth, were found to be concentrated in agricultural production and to have lower access to services (Maina and Maina, 2012). The education level of the household head, access to extension agents, and the total livestock and land owned significantly affected commercialization in Ethiopia (Belay et al, 2021). Girma and Abebaw (2012) similarly found that education and access to extension were important, in addition to market information, adoption of modern livestock inputs, volume of sales, and time spent to reach the market significantly influence participation in the livestock market and his/her choice of a market channel.…”

The contribution of cassava production and marketing on smallholder farmers’ livelihood in Dodoma Region, Tanzania

“…Some strategies have been adopted to overcome the problem of food shortage in developing countries, such strategies include adoption of drought resistance food crops such as cassava and the use of modern agricultural technologies such as improved seeds, use of fertilizers, pesticides, proper spacing and agricultural mechanization is imperative. Similarly, the growing food demand and livestock production resulted from population increase in the urban areas in SSA offers high chances for smallholder farmers to profitably raise cassava production and improve their livelihood (Belay et al, 2021;Ochieng et al, 2020).…”