Smallholder market participation and its associated factors: Evidence from Ethiopian vegetable producers

Abstract

Vegetable production is mainly practiced by smallholder farmers in Ethiopia and it is their main source of income, employment opportunities and improving food security. Although farmers are producing more surplus vegetables, they are not much linked with markets and thus their opportunity to diversify their livelihoods from vegetable production is very much limited. Thus, this study was required to identify factors affecting market participation among smallholder vegetable farmers in southwest Ethiopia. To get the sample respondents two-stage sampling procedures were employed and finally, 240 vegetable producers were selected. Both qualitative and quantitative data were collected from primary and secondary sources. To achieve the stated objective probit model was used and its result indicates that age of household head, household family size, education level of household head, labour market, market information and distance from the market place were statistically influencing market participation among smallholder vegetable producers. To enable smallholder's participation in vegetable marketing government interventions is needed to strengthening institutional service, communication and infrastructure facilities. This study may be valuable input for smallholder farmers, policymakers and other stakeholders in revealing the gab in the performance of the current vegetable production system to realize the national development policy.

Determinants of market participation decision by smallholder haricot bean (phaseolus vulgaris l.) farmers in Northwest Ethiopia

“…More educated farmers can collect not only marketing information but also search information on the availability of agricultural inputs that helps them to produce more and supply a large amount of produce to the market. Megerssa et al (2020) also found that the educational level of the head of the household significantly influences the market participation of smallholder vegetable producers.…”

“…The negative relationship between age and level of market participation may be due to the inability of old-aged farmers in accessing the information on inputs and marketing. Megerssa et al (2020) also reported that the age of the household head was a statistically significant factor influencing market participation among smallholder vegetable producers.…”

“…Ola and Menapace (2020) reported that access to extension services, credit, an additional source of income, and gender have larger relevance in Africa compared to South America and Asia, whereas membership in collective groups and access to irrigation facilities are important in Asia in determining participation in modern agricultural value chains and high-value markets. Megerssa et al (2020) reported that age of household head, household family size, educational level of household head, labor market, market information, and distance from the marketplace were statistically significant factors influencing market participation among smallholder vegetable producers. Beyene et al (2020) reported that the allocated amount of land, labor, seed, chemical fertilizer, and oxen have a positive and significant influence, whereas market distance and crop diversification have a negative influence on the production of haricot bean.…”

“…Gebrehiwot et al (2018) reported that total land holding of the household, family size, the volume of vegetables produced and marketed, usage of irrigation technologies, interaction with extension agents, and access to market information and vegetable marketing significantly improve the livelihoods of smallholder producers. Similarly, other studies (Hagos et al, 2020;Hao et al, 2018;Megerssa et al, 2020;Ola & Menapace, 2020) were conducted on the different factors affecting the marketing/commercialization of agricultural products by using different methods of data analysis. However, none of the above studies incorporated the endogeneity of the market participation decision process, and selection due to both observable and unobservable characteristics.…”

The effect of COVID-19 pandemic on market integration: Evidence from vegetable farmers in Pakistan

“…Numerous studies focus on those factors that hinder the vegetable farmers' participation in inputs and outputs markets (market integration). These studies include the farmers' socio-economic factors [ 8 ], policy variables [ 26 ], social capital [ 27 ], external agents facilitating inputs and outputs markets services [ 8 , 28 ], as well as the provision of timely information on inputs and outputs markets and credit [ 8 , 29 ]. Therefore, the success of farmers' market integration and the agriculture sector requires cooperation among farmers, market owners, policymakers, extension agents, scientists, and other stakeholders.…”