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Application of Multinomial Logistic to Smallholder Farmers’ Market Participation in Northern Ghana

Received: 16 March 2017    Accepted: 27 March 2017    Published: 13 April 2017
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Abstract

The contribution of agriculture to the development of a country cannot be over emphasized, likewise the role played by smallholder farmers in the production of food in developing countries such as Ghana. Hence, the research examined the factors that affect market participation of smallholder farmers in Ghana. The Ghana Living Standard Survey data as published by the Ghana Statistical Service was employed and analyzed with the application of multinomial logistic regression model. Analysis of the data in the Northern part of Ghana indicate a very low market participation relative to the national average figure of 36% which itself is considered to be low at the international level. The results further show that, out of the total food crops produced (cereals), maize takes the highest whilst millet is the lowest cereal produced in Ghana. The results also revealed that only 24.2% of the total output of cereals produced in the study area is sold. The multinomial logistic results show that being a female farmer, having access to credit, increase in farm size and household size were factors that discourage subsistence farming and encourage market-oriented farming. The study recommends the promotion of small scale farmer participation in marketing of their produce through improving access to credit, land reallocation and promotion of female farmers’ commercial participation.

Published in International Journal of Agricultural Economics (Volume 2, Issue 3)
DOI 10.11648/j.ijae.20170203.12
Page(s) 55-62
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Food Production, Market Participation, Commercialization, Smallholder Farmers, Multinomial Regression

References
[1] Tanko M, Iddrisu A, Alidu AF, 2015. Determinants of Rice Yield in Northern Region of Ghana, the Role of Policy, Asian Journal of Agricultural Extension, Economics & Sociology, 9(2), 1-11, 2016. https://www.researchgate.net/publication/287965057_Determinants_of_Rice_Yield_in_Northern_Region_of_Ghana_the_Role_of_Policy.
[2] World Bank, 2016. World Tables. World Bank, Washington DC, USA. http://data.worldbank.org/data-catalog/world-development-indicators.
[3] Balint B, 2004. Institutional factors influencing agricultural sales of the Individual farmers in Romania. Conference on International Agricultural Research for Development, Berlin. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.116.6754&rep=rep1&type=pdf.
[4] Abbott C, 1987. Agricultural marketing for the developing world. Cambridge University Press. http://econpapers.repec.org/article/eeejfpoli/v_3a13_3ay_3a1988_3ai_3a3_3ap_3a325-327.htm.
[5] Moti J, Berhanu G, Hoekstra D, 2009. Smallholder commercialization: Processes, determinants and impact. Discussion Paper No. 18. Improving Productivity and Market Success (IPMS) of Ethiopian Farmers Project, ILRI (International Livestock Research Institute), Nairobi, Kenya. 55. https://www.microlinks.org/sites/microlinks/files/resource/files/ILRI%20-%20Smallholder%20Commercialization%20Processes.pdf.
[6] Immink MDC, Alarcon JA, 1993. Household income, food availability, and commercial crop production by smallholder farmers in the western highlands of Guatemala. Economic Development and Cultural Change 41(2). https://cgspace.cgiar.org/bitstream/handle/10568/3015/workingpaper_22.pdf?sequence=2.
[7] Pingali P, 1997. From subsistence to commercial production System: The transformation of Asian agriculture. Am. J. Agric. Econs; 79(2). http://econpapers.repec.org/article/oupajagec/v_3a79_3ay_3a1997_3ai_3a2_3ap_3a628-634.htm.
[8] Strasberg PJ, Jayne TS, Yamano T, Nyoro J, Karanja D, Strauss J, 1999. Effects of agricultural commercialization on food crop input use and productivity in Kenya. Michigan State University International Development Working Papers No. 71. Michigan, USA. http://fsg.afre.msu.edu/papers/idwp71.pdf.
[9] Gabre-Madhin EZ, Alemu D, Samson D, 2007. From farmer to Market: Smallholder Commercialization of food crops in Ethiopia. http://www.academicjournals.org/journal/JDAE/article-full-text-pdf/12C322B57753.
[10] Von Braun, J., and E. Kennedy ed. 1994. Agricultural Commercialization, Economic Development, and Nutrition. Baltimore and London: The Johns Hopkins University Press.
[11] Wooldridge JM, 2002. Econometric Analysis of Cross Section and Panel Data. The MIT Press Cambridge, Massachusetts London, England (page 453-550). https://pdfs.semanticscholar.org/6bd0/adf734a194039061d085202808e5a0763289.pdf.
[12] Ghana Statistical Service 2015. Ghana Statistica Service Annual Report 2015. http://www.statsghana.gov.gh/docfiles/GDP/GDP2015/2015_Annual_GDP_September_2015_Edition.pdf.
[13] Demeke LB, Haji J, 2014. Econometric analysis of factors affecting market participation of smallholder farming in Central Ethiopia, Journal of Agricultural Economics, Extension and Rural Development, 2(6): 094-104, June, 2014. https://www.researchgate.net/profile/Leykun_Birhanu/publication/299537456_Econometric_analysis_of_factors_affecting_market_participation_of_smallholder_farming_in_Central_Ethiopia/links/56fe502c08ae1408e15cfd31.pdf.
[14] Cunningham LT, Brown BW, Anderson KB, Tostao E, 2008. Gender differences in marketing styles. https://mpra.ub.uni-muenchen.de/56149/.
[15] Mahelet GF, 2007. Factors affecting Commercialization of Smallholder Farmers in Ethiopia. http://www.ifrj.upm.edu.my/23%20(04)%202016/(60).pdf.
[16] Mulatu D, Jayne TS, Kelly V, Said A, Levallee JC 1998. Agricultural market performance and determinants in Ethiopia. Grain market research project. http://fsg.afre.msu.edu/Ethiopia/index.htm.
[17] Erik M, Nivelin N 2002. Commercialization and Subsistence in Transaction Agriculture: Empirical Evidence from Albania, Bulgaria, Hungary and Romania Paper prepared for Presentation at the Xth EAAE Congress ‘Exploring Diversity in the European Agri – Food System’, Zaragoz a (Spain), 28-31 August. http://ageconsearch.umn.edu/bitstream/24786/1/cp02ma88.pdf.
[18] Balint B, 2005. Determinants of commercial orientation of individual farms Romania. Conference on International Agricultural Research for Development. Berlin. https://www.iamo.de/fileadmin/documents/dp113.pdf.
Cite This Article
  • APA Style

    Salisu Mustapha, Mohammed Tanko, Iddrisu Abukari. (2017). Application of Multinomial Logistic to Smallholder Farmers’ Market Participation in Northern Ghana. International Journal of Agricultural Economics, 2(3), 55-62. https://doi.org/10.11648/j.ijae.20170203.12

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    ACS Style

    Salisu Mustapha; Mohammed Tanko; Iddrisu Abukari. Application of Multinomial Logistic to Smallholder Farmers’ Market Participation in Northern Ghana. Int. J. Agric. Econ. 2017, 2(3), 55-62. doi: 10.11648/j.ijae.20170203.12

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    AMA Style

    Salisu Mustapha, Mohammed Tanko, Iddrisu Abukari. Application of Multinomial Logistic to Smallholder Farmers’ Market Participation in Northern Ghana. Int J Agric Econ. 2017;2(3):55-62. doi: 10.11648/j.ijae.20170203.12

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  • @article{10.11648/j.ijae.20170203.12,
      author = {Salisu Mustapha and Mohammed Tanko and Iddrisu Abukari},
      title = {Application of Multinomial Logistic to Smallholder Farmers’ Market Participation in Northern Ghana},
      journal = {International Journal of Agricultural Economics},
      volume = {2},
      number = {3},
      pages = {55-62},
      doi = {10.11648/j.ijae.20170203.12},
      url = {https://doi.org/10.11648/j.ijae.20170203.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20170203.12},
      abstract = {The contribution of agriculture to the development of a country cannot be over emphasized, likewise the role played by smallholder farmers in the production of food in developing countries such as Ghana. Hence, the research examined the factors that affect market participation of smallholder farmers in Ghana. The Ghana Living Standard Survey data as published by the Ghana Statistical Service was employed and analyzed with the application of multinomial logistic regression model. Analysis of the data in the Northern part of Ghana indicate a very low market participation relative to the national average figure of 36% which itself is considered to be low at the international level. The results further show that, out of the total food crops produced (cereals), maize takes the highest whilst millet is the lowest cereal produced in Ghana. The results also revealed that only 24.2% of the total output of cereals produced in the study area is sold. The multinomial logistic results show that being a female farmer, having access to credit, increase in farm size and household size were factors that discourage subsistence farming and encourage market-oriented farming. The study recommends the promotion of small scale farmer participation in marketing of their produce through improving access to credit, land reallocation and promotion of female farmers’ commercial participation.},
     year = {2017}
    }
    

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  • TY  - JOUR
    T1  - Application of Multinomial Logistic to Smallholder Farmers’ Market Participation in Northern Ghana
    AU  - Salisu Mustapha
    AU  - Mohammed Tanko
    AU  - Iddrisu Abukari
    Y1  - 2017/04/13
    PY  - 2017
    N1  - https://doi.org/10.11648/j.ijae.20170203.12
    DO  - 10.11648/j.ijae.20170203.12
    T2  - International Journal of Agricultural Economics
    JF  - International Journal of Agricultural Economics
    JO  - International Journal of Agricultural Economics
    SP  - 55
    EP  - 62
    PB  - Science Publishing Group
    SN  - 2575-3843
    UR  - https://doi.org/10.11648/j.ijae.20170203.12
    AB  - The contribution of agriculture to the development of a country cannot be over emphasized, likewise the role played by smallholder farmers in the production of food in developing countries such as Ghana. Hence, the research examined the factors that affect market participation of smallholder farmers in Ghana. The Ghana Living Standard Survey data as published by the Ghana Statistical Service was employed and analyzed with the application of multinomial logistic regression model. Analysis of the data in the Northern part of Ghana indicate a very low market participation relative to the national average figure of 36% which itself is considered to be low at the international level. The results further show that, out of the total food crops produced (cereals), maize takes the highest whilst millet is the lowest cereal produced in Ghana. The results also revealed that only 24.2% of the total output of cereals produced in the study area is sold. The multinomial logistic results show that being a female farmer, having access to credit, increase in farm size and household size were factors that discourage subsistence farming and encourage market-oriented farming. The study recommends the promotion of small scale farmer participation in marketing of their produce through improving access to credit, land reallocation and promotion of female farmers’ commercial participation.
    VL  - 2
    IS  - 3
    ER  - 

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Author Information
  • Faculty of Communication and Agribusiness, Department of Agricultural and Resource Economics, Nyankpala Campus, University for Development Studies, Tamale, Ghana

  • Faculty of Business and Law, Newcastle Business School, University of Newcastle, Newcastle, Australia

  • Faculty of Communication and Agribusiness, Department of Agricultural and Resource Economics, Nyankpala Campus, University for Development Studies, Tamale, Ghana

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