Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Commercialization Orientation and Food Security Nexus among Smallholder Farmers in Northwest Ethiopia: A Bivariate Tobit Approach

Version 1 : Received: 25 July 2023 / Approved: 3 August 2023 / Online: 4 August 2023 (05:09:24 CEST)

How to cite: Tesafa, F.; Mulugeta, M.; Tsehay, S. Commercialization Orientation and Food Security Nexus among Smallholder Farmers in Northwest Ethiopia: A Bivariate Tobit Approach. Preprints 2023, 2023080350. https://doi.org/10.20944/preprints202308.0350.v1 Tesafa, F.; Mulugeta, M.; Tsehay, S. Commercialization Orientation and Food Security Nexus among Smallholder Farmers in Northwest Ethiopia: A Bivariate Tobit Approach. Preprints 2023, 2023080350. https://doi.org/10.20944/preprints202308.0350.v1

Abstract

Food insecurity remains a critical challenge in developing countries like Ethiopia. Majority of its population derive their livelihood from agriculture characterized by mixed farming systems. Smallholder farmers the principal actors of agriculture are also facing a rapidly increasing population and urbanization had been unable to be self-sufficient in food. This paper examines the role of commercialization on food security and its determinants in rural settings. We used cross-sectional data from 295 households randomly selected in northwest Ethiopia. Results from bivariate Tobit regression revealed both crop and livestock commercialization improves household food security but in quite different ways. The income from crop sales was instrumental in allowing households to buy additional foods while livestock sales foster crop diversity for own consumption by allowing them to purchase nonfood items. Thus, agriculture-food security nexus may not require the production systems to be subsistent. Improving commercialization with better access to off-farm employment and institutional services (credit and market infrastructure), and enhanced awareness of the extension towards promoting commercialization and diversified food consumption seem to be more promising. The research paper concludes commercialization is vital not just for economic growth and food security, but also for the smallholder agriculture in providing additional nutrition.

Keywords

commercialization; market participation; food security; smallholders; Ethiopia

Subject

Business, Economics and Management, Economics

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