Commercialization of Smallholder Farmers and Its Welfare Outcomes: Evidence from Durgapur Upazila of Rajshahi District, Bangladesh
Journal of World Economic Research
Volume 3, Issue 6, December 2014, Pages: 119-126
Received: Dec. 21, 2014;
Accepted: Dec. 27, 2014;
Published: Jan. 6, 2015
Views 2991 Downloads 367
Md. Ataul Gani Osmani, Department of Economics, University of Rajshahi, Rajshahi-6205, Bangladesh
Md. Khairul Islam, Department of Economics, University of Rajshahi, Rajshahi-6205, Bangladesh
Bikash Chandra Ghosh, Department of Economics, Pabna University of Science & Technology, Pabna-6600, Bangladesh
Md. Elias Hossain, Department of Economics, University of Rajshahi, Rajshahi-6205, Bangladesh
Agriculture is the mainstay of Bangladesh economy. It plays important role to the growth and development of the economy of the country. Most of the farmers of Bangladesh are marginal and small farmers. They consume most part of their produced commodities. The market participation rate of them with surplus production is very low. Therefore, the main objective of the present study is to estimate the level of commercialization of smallholder farmers. The study also examines the welfare outcomes of commercialization of these farmers. This study is mainly based on primary data that are collected from Durgapur Upazila of Rajshahi District of Bangladesh. The required data have been collected from 100 smallholder farmers in the study area. A multi-stage random sampling technique is applied to select the sample farmers. The present study uses household commercialization index to estimate the level of commercialization of smallholder farmers. It also applies one-way ANOVA analysis to examine the welfare outcomes among smallholder farmers working at different levels of commercialization. Firstly, calculation of Household Commercialization Index implies that the average percentage level of commercialization of smallholder farmers in the study area is 57%, which indicates the moderate level of commercialization. And findings from one-way ANOVA analysis indicate that farm households with high degree of commercialization enjoy better welfare outcomes such as consumption of more food and goods, and services. The commercialization of smallholder farmers contributes more to the gross domestic product and economic development of Bangladesh. Therefore, the government and non-government organizations should provide financial support such as input subsidy, credit facilities, training etc. to the smallholder farmers so that they can increase the agricultural productivity and can participate in the market with their surplus production.
Md. Ataul Gani Osmani,
Md. Khairul Islam,
Bikash Chandra Ghosh,
Md. Elias Hossain,
Commercialization of Smallholder Farmers and Its Welfare Outcomes: Evidence from Durgapur Upazila of Rajshahi District, Bangladesh, Journal of World Economic Research.
Vol. 3, No. 6,
2014, pp. 119-126.
Bernard, T. and Eleni G. and Alemayehu, S.T., “Smallholder’s Commercialization through Cooperatives: A Diagnostic for Ethiopia”, IFPRI Discussion Paper No. 00722. 2007.
Bouis, H. E. and Haddad, L. J., “Effects of agricultural commercialization on land tenure, household resource allocation, and nutrition in the Philippines”, Research Report 79. IFPRI (International Food Policy Research Institute), Washington, DC, USA. 1990.
de Janvry A., Fafchamps, M. and Sadoulet, E., “Peasant household behavior with missing markets:Some paradoxes explained”, The Economic Journal 101(409):1400–1417. 1991.
Dorsey, B., “Agricultural intensification, diversification and commercial production among smallholder coffee growers in Central Kenya”, Economic Geography, 75(2):178–195. 1999.
FAO, “Status and Prospects for Smallholder Milk Production A Global Perspective”, pp.34. 2010.
Gebreselassie, S. and Ludi, E., “Agricultural Commercialization in Coffee Growing Areas of Ethiopia”, Future Agriculture. 2008.
Gebreselassie, S. and Sharp K., Commercialization of Smallholder Agriculture in Selected Tef-Growing Areas of Ethiopia, Ethiopian Journal of Economics, Volume XVI, No1. 2007.
Gebreselassie, S. and Sharp, K., “Commercialization of Smallholder Agriculture in Selected Tef-growing Areas of Ethiopia”, Future Agricultures Consortium. 2008.
Gebreselassie, S., “Helping small farmers to commercialize: Evidence from growing onion and tomatoes for sale in central Ethiopia”, A Research Update of the Future Agricultures Consortium. 2003.
Govereh, J., Jayne, T. S. and Nyoro, J., “Smallholder Commercialization, Interlinked Markets and Food Crop Productivity: Cross-Country Evidence in Eastern and Southern Africa”, paper is published by the Department of Agricultural Economics and the Department of Economics, Michigan State University (MSU). 1999.
IFAD, “Annual Report”, 2012
Immink, M. D. C. and Alarcon, J. A., “Household income, food availability, and commercial crop production by smallholder farmers in the western highlands of Guatemala”, Economic Development and Cultural Change, 41(2):319–342. 1993.
Kennedy and Bouis, “Linkages between agriculture and nutrition: implications for policy and research”, International Food Policy Research Institute, ISBN 0-89629-328-9. 1993.
Kennedy, E. and Cogill, B., “Income and nutritional effects of the commercialization of agriculture in southwestern Kenya”, Research Report No. 63, IFPRI (International Food Policy Research Institute), Washington, DC, USA. 1987.
Kennedy, E., “Health and nutrition effects of commercialization of agriculture”, In: von Braun, J. and Kennedy, E. (eds), Agricultural commercialization, economic development, and nutrition, Johns Hopkins University Press, Baltimore, Maryland, USA. pp. 79–99. 1994.
Leavy J. and Poulton C., “Commercializations in Agriculture”, Future Agricultures Sept. 2007.
Leavy, J., C. Poulton, and Poulton, C., “Commercialization In Agriculture”, Ethiopian Journal of Economics, Vol. 16 (1) 2007: pp. 3-42. 2007.
Mahelet, G. F., “Factors Affecting Commercialization of Smallholder Farmers in Ethiopia: The case of North Omo Zone, SNNP region”, Paper presented at the Fifth International Conference on the Ethiopian Economy, Addis Ababa. 2007.
Ministry of Agriculture, Government of the People’s Republic of Bangladesh. 2014.
Pingali, L. P. and Rosegrant, M. W., “Agricultural commercialization and diversification: Process and polices”, Food Policy, 20(3):171–185. 1995.
Pingali, P., “From subsistence to commercial production System: The transformation of Asian agriculture”, American Journal of Agricultural Economics 79(2): 628–634. 1997.
Randolph, T. F., “The impact of agricultural commercialization on child nutrition. A case study of smallholder households in Malawi”, PhD dissertation, Cornell University, Ithaca, New York, USA. 1992.
Razzaque, M. A. and Hossain, M. G., “Country Report on the State of Plant Genetic Resources for Food And Agriculture”, Bangladesh –Ministry of Agriculture. 2007.
Strasberg, P. J., Jayne, T. S., Yamano, T., Nyoro, J., Karanja, D. and Strauss, J., “Effects of agricultural commercialization on food crop input use and productivity in Kenya”, Michigan State University, International Development Working Papers No. 71. Michigan, USA. 1999.
Thapa, G. and Gaiha, R., “Smallholder Farming in Asia and the Pacific: Challenges and Opportunities”, Paper presented at the IFAD Conference on New Directions for Smallholder Agriculture. 2011.
Timmer C. P., “Farmers and markets: The political economy of new paradigms”, American Journal of Agricultural Economics, 79(2):621–627. 1997.
Tirkaso, W. T., “The Role of Agricultural Commercialization for Smallholders Productivity and Food Security: An Empirical Study in Rural Ethiopia”, SLU (Sveriges lantbruksuniversitet), Department of Economics, Swedish University of Agricultural Sciences. 2013.
von Braun, J., “Introduction”, In: von Braun J and Kennedy E (eds), Agricultural commercialization, economic development, and nutrition, Johns Hopkins University Press, Baltimore, Maryland, USA. pp. 3–8. 1994.
von Braun, J., Bouis, H. and Kennedy, E., “Conceptual framework”, In: von Braun, J. and Kennedy, E. (eds), Agricultural commercialization, economic development, and nutrition, Johns Hopkins University Press, Baltimore, Maryland, USA. pp. 9–33. 1994.
World Bank, “Bangladesh Country Snapshot”, World Bank Group. 2014.
World Bank, “Bangladesh Development Update”, 2014.
World Bank, “World Development Indicators”, Washington, DC. 2009.
Zhou, S., Minde, I. J. and Mtigwe, B., “Smallholder agricultural commercialization for income growth and poverty alleviation in southern Africa: A review”, African Journal of Agricultural Research. Vol . 8(22), pp. 2599-2608. 2013.