Smallholder farmers theoretically produce and market their output to meet livelihood needs of the family under given set of resource constraints. In spite of numerous policy efforts to ensure that smallholder farmers in Ghana and rural districts in particular, exploit the economic potential of cassava production, many of them continue to produce for subsistence with limited participation in the markets. To assess and explain the levels at which smallholder cassava farmers participate in markets, the study applied the partial proportional odds model in the framework of Vector Generalized Additive model (VGAM), which comprehensively addresses conceptual, modelling and interpretational complexities implied by market participation (MP) theory. Data for the study were collected from 365 cassava farmers in Sekyere Central (SC) district of Ashanti region, Ghana. The results showed that only 32% of the farmers participated in the markets as Net sellers, while 45% and 23% participated as Autarkic producers and Net buyers respectively. The econometrics analysis revealed that household size, access to market information, age, education, market access, membership to famer or community organisation, off-farm income, farm income, livestock holdings, cassava output and cassava being cultivated as major crop, appeared statistically significant in explaining MP decisions. Five variables, namely income, livestock, produce, access to market information and cassava as major produce, failed the proportional odds assumption and entered the model unconstrained, producing regime specific estimates. These results are indicative of how conditional, on a given regime, farmers respond to changes in the factors that affect their MP decisions, in terms of intensity and direction. Farm level policies, that target cassava farm households’ participation in markets should consider regime specific strategies.
Published in | Economics (Volume 13, Issue 3) |
DOI | 10.11648/j.eco.20241303.12 |
Page(s) | 76-87 |
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 |
Market Participation, Cassava, Partial Ordered Models, Vector Generalised Additive Models, Sekyere Central District
[1] |
Statista, 2024. Share of agriculture's value added to GDP in Ghana 2013-2022. Retrieved from:
https://www.statista.com/statistics Accessed on 10th April, 2024. |
[2] | GEDA (2022). Sector Capabilities- Cassava from Gnana. Ghana Promotion Authority. Accra: Ghana. |
[3] | Makhura, M., Kirsten, J., & Delgado, C. (2001). Transaction costs and small holder participation in the maize market in the Northern Province of South Africa (pp. 463–462). Seventh Eastern and Southern African Regional Maize Conference. February 11–15, 2001. SA. |
[4] | Takeshima, H. (2008). Behaviour of subsistence producers in response to technological change-the elasticity of cassava production and home consumption on Benin. Selected Poster prepared for presentation at the American Agricultural economics association Annual Meeting, Orlando, Fl, July 27–29, 2008. |
[5] | Fafchamps, M. (1992). Cash crop production, food price volatility and rural market integration in the third-world. American Journal of Agricultural Economics, 74, 90–99. |
[6] | Key, N., Sadoulet, E., & de Janvry, A. (2000). Transactions costs and agricultural household supply response. American Journal of Agricultural Economics, 82 (2), 245–259. |
[7] | Mitku A. (2014). Impact of smallholder farmers’ agricultural commercialization on rural households’ poverty. Int J Appl Econ Finance, 8: 51–61. |
[8] | Okoye, B. C., A. Abass, A., Bachwenkizi, B., Asumugha, G., Alenkhe, B., Ranaivoson, R., Randrianarivelo, R., Rabemanantsoa, N. & Ralimanana, I. (2016). Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar, Cogent Economics & Finance, 4(1), 1143597. |
[9] | Haile, K., Gebre, E. and Workye, A. (2022). Determinants of market participation among smallholder farmers in Southwest Ethiopia: double-hurdle model approach. Agriculture & Food Security. |
[10] | Fafchamps, M. & Hill, R. (2005). Selling at the farmgate or traveling to market. American Journal of Agricultural Economics, 87, 717–734. |
[11] | Mabiratu, D., Prem, K. D. and Gersam, D. (2019) Determinants of maize commercializa tion among smallholder farmers: the case of Nunu Kumba District, East Wollega Zone, Oromia Regional State, Western Ethiopia. Asian J Agric Ext Econ Sociol. 2019; 37(4): 1–8. |
[12] | de Janvry, A., & Sadoulet, E. (2005). Progress in the modeling or rural households’ behavior under market failures. In A. de Janvry & R. Kanbur (Eds.), Poverty, inequality and development, essays in honor of Erik Thorbecke (Chap. 8). Kluwer. |
[13] | Bellemare, M. & Barrett, C. B. (2006). An ordered Tobit model of market participation: Evidence from Kenya and Ethiopia. American Journal of Agricultural Economics, 88, 324–337. |
[14] | Boughton, D., Mather, D., Barrett, C. B., Benfica, R., Abdula, D., Tschirley, D., & Cunguara, B. (2007). Market participation by rural households in a low income country. Faith and Economics, 50, 64–101. |
[15] | Barrett (C. 2008). Smallholder market participation: Concepts and evidence from eastern and southern Africa. Food Policy 33(4): 299–317. |
[16] | Burke, W. J. (2009). Triple Hurdle model of smallholder production and market participation in Kenya’s dairy sector (Unpublished MSc Thesis, pp. 1–83). Department of Agricultural Economics, Michigan State University, East Lansing. |
[17] | Renkow, M., Hallstrom, D. G., & Karanja, D. D. (2004). Rural infrastructure, transactions costs and market participation in Kenya. Journal of Development Economics, 73, 349–367. |
[18] | Kemisola, O. A., Olorunsomo, S. O., & Nwauwa, L. O. (2013). Determinants of Market Orientation Among Smallholders Cassava Farmers in Nigeria. Global Journal of Management and Business Research Finance, 13(6). |
[19] | Regasa-Megerssa G., Negash R., Bekele, A. E, and Nemera, D. B. (2020). Smallholder market participation and its associated factors: evidence from Ethiopian vegetable producers. Cogent Food and Agriculture. 6(1). 1783173. |
[20] | Andaregie, A., Astatkie, T., Teshome, F., & Yildiz, F. (2021). Determinants of market participation decision by smallholder haricot bean (Phaseolus Vulgaris l.) farmers in Northwest Ethiopia. Cogent Food & Agriculture, 7(1), 1879715. |
[21] | Goetz, S. J. (1992). A selectivity model of household food marketing behavior in sub Saharan Africa. American Journal of Agricultural Economics, 74, 444–452. |
[22] | Florence, A., Peter, D., & Maximilian, W. (2017). Characterization of the Levels of Cassava Commercialization Among Smallholder Farmers in Kenya: A multinomial regression approach. African Journal of Agricultural Research, 12(41). 3024-3036. |
[23] | Muricho, G., Menale Kassie, M. and Obare, G. (2015). Determinants of Market Participation Regimes among Smallholder Maize Producers in Kenya. 29th International Conference of Agricultural Economist, Aug 5-11, 2015. Millan: Italy. |
[24] | Martey, E., Al-Hassan, R. M., and Kuwornu, J. K. M. (2012). Commercialization of Smallholder Agriculture in Ghana: A Tobit regression analysis. African Journal of Agricultural Research, 7(14). 2131-2141. |
[25] | Abu, B. M., Osei-Asare, Y. B. and Wayo, S. (2014). Market participation of smallholder maize farmers in the upper west region of Ghana. African Journal of Agricultural Research, 9(31), 2427-2435. |
[26] | Konja, D. T. & Mabe, F. N. (2023). Market participation of smallholder groundnut farmers in Northern Ghana: Generalised double-hurdle model approach. Cogent Economics & Finance, 11(1), 2202049, |
[27] | Bosompem, M., Arhin, P., Nunoo, J. and, Amoah, K. K. (2024). Smallholder farmers’ participation in Cassava value addition practices: What drivers matter in Ghana? Journal of Agriculture and Food Research, 16. 101120. |
[28] | Jayne, T. S., Myers, R. J. and Nyoro, J., (2008). The effects of NCPB marketing policies on maize market prices in Kenya. Agricultural Economics 38, 313 – 325. |
[29] | Key, N., Sadoulet, E. and de Janvry A. (2000). Transaction Costs and agricultural Household Supply Response. American Journal of Agricultural Economics. Pp. 245-259. |
[30] | Jones, A. M. (1992). A note on consumption of the double hurdle model with dependence with an application to tobacco expenditure. Bulletin of Economic Research, 44(1), 67–74. |
[31] | Abunyuwah, I. (2020). Partial ordered logit analysis of confidence levels of people in the financial institutions in Ghana: The case of Asante Mampong municipality. Int. Journal of Economics and Finance, 12 (7), 21-30. |
[32] | Williams, R. (2016). Understanding and interpreting generalized ordered logit models. The Journal of Mathematical Sociology, 40: 1, 7-20. |
[33] | Yee, T. W. (2008). The VGAM Package. R News, 8(2), 28-39. |
[34] |
Yee, T. W. (2019). The VGAM Package for Categorical Data Analysis in R.
https://cran.r-project.org/web/packages/VGAM/vignettes/categoricalVGAM.pdf |
[35] | Yee, T. W. and Hastie, T. J. (2003). Reduced-rank Vector Generalized Linear Models. Statistical Modelling, 3(1), 15-41. |
[36] | Ghana Statistical Service [GSS] (2012). Ghana population and housing census-2010. Summary report of final result. GSS, Accra, Ghana. |
[37] | Ghana Statistical Service [GSS](2021). Ghana 2021 population and housing census. General report, Volume 3. GSS, Accra, Ghana. |
[38] | Abunyuwah, I., Ahiale, E. D. and Yenihibet, N. (2024). Market participation of smallholder grain farmers in selected communities in the northern region of Ghana. DAEEE Working Paper 0014. |
[39] | Omiti, M., Nyanamba, D., & Mccullough, E. (2009). Factors Influencing the Intensity of Market Participation by Smallholder Farmers: A Case Study of Rural and Peri-urban areas of Kenya. Afr. J. Afric. Res. Econs, 3 (1), 57-82. |
[40] | Berhanu, G. and Moti, J. (2010). Commercialization of smallholders: Does market orientation translate into market participation? Improving Productivity and Market Success (IPMS) of Ethiopian farmers project. Working Paper 22. Nairobi, Kenya, ILRI. |
[41] | Sebatta, C., Mugisha J., Katungi E, Kasharu A. K. and Kyomugisha H., (2014). What Drives Smallholder Farmers’ Behaviour in the Potato Market in Uganda. International Journal of Sciences: Basic and Applied Research, 18(1), 330 – 343. |
[42] | Randela, R., Alemu, Z. G., & Groenewald, J. A. (2008). Factors enhancing market participation by small-scale cotton farmers. Agrekon, 47(4), 451–469. |
[43] | Hlongwane, J. J., Ledwaba, L. J. & Belete, A. (2014). Analyzing the factors affecting market participation of maize farmers: A Case study of small-scale farmers in Greater Giyani Local Municipality of the Mopani District, Limpopo Province. Afr. J. Agric. Res., 9(10): 895-899. |
[44] | Arega D. Alene, V. M. Manyong, G. Omanya, H. D. Mignouna, M. Bokanga, G. Odhiambo (2008). Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya, Food Policy, 33, (4), 318-328. |
[45] | Macharia, M. A., Mshenga, P. M., Ngigi, M., Gido, O. E., and Kiprop, K. J. (2014). Effect of transaction costs on smallholder maize market participation: Case of Kwanza district, Trans Nzioa County, Kenya. Int. J. of Development and Sustainability. Volume 3 (4), 715 – 725. |
[46] | Peterson, B. and Harrell, F. E. (1990). Partial Proportional Odds Models for Ordinal Response Variables. Applied Statistics, 39(2), 205-217. |
[47] | Kyaw, N. Ahn, S. and Lee, S. H. (2018). Analysis of the Factors Influencing Market Participation among Smallholder Rice Farmers in Magway Region, Central Dry Zone of Myanmar. Sustainability, 10, 10124441. |
[48] | Tirra, A. N., Oluoch-Kosura, W., Nyanganga, H. & Mwang’ombe, A. W. (2019). Determinants of Participation Decision in Cassava Marketing by Smallholder Farmers in Taita-Taveta and Kilifi Counties, Kenya. Journal of Agricultural Science; Vol. 11, 17. |
[49] | Gebremedhin, B. & Jalata, M. (2012). Market orientation and market participation of smallholders in Ethiopia: implications for commercial transformation. Paper presented at International Association of Agricultural Aconomists (IAAE) triennial conference, Foz do Iguacu, Brazil. |
[50] | Ola, O., & Menapace, L. (2020). A meta-analysis under-standing smallholder entry into high-value markets. World Development, 135, 105079. |
[51] | Fullerton, A. S., & Dixon, J. C. (2010). Generational conflict or methodological artifact? Reconsidering the relationship between age and policy attitudes in the U.S., 1984–2008. Public Opinion Quarterly, 74(4), 643–673. |
APA Style
Abunyuwah, I. (2024). Assessing Market Participation of Smallholder Cassava Farmers in Sekyere Central District of Ghana Using Vector Generalized Additive Ordered Models. Economics, 13(3), 76-87. https://doi.org/10.11648/j.eco.20241303.12
ACS Style
Abunyuwah, I. Assessing Market Participation of Smallholder Cassava Farmers in Sekyere Central District of Ghana Using Vector Generalized Additive Ordered Models. Economics. 2024, 13(3), 76-87. doi: 10.11648/j.eco.20241303.12
AMA Style
Abunyuwah I. Assessing Market Participation of Smallholder Cassava Farmers in Sekyere Central District of Ghana Using Vector Generalized Additive Ordered Models. Economics. 2024;13(3):76-87. doi: 10.11648/j.eco.20241303.12
@article{10.11648/j.eco.20241303.12, author = {Isaac Abunyuwah}, title = {Assessing Market Participation of Smallholder Cassava Farmers in Sekyere Central District of Ghana Using Vector Generalized Additive Ordered Models }, journal = {Economics}, volume = {13}, number = {3}, pages = {76-87}, doi = {10.11648/j.eco.20241303.12}, url = {https://doi.org/10.11648/j.eco.20241303.12}, eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20241303.12}, abstract = {Smallholder farmers theoretically produce and market their output to meet livelihood needs of the family under given set of resource constraints. In spite of numerous policy efforts to ensure that smallholder farmers in Ghana and rural districts in particular, exploit the economic potential of cassava production, many of them continue to produce for subsistence with limited participation in the markets. To assess and explain the levels at which smallholder cassava farmers participate in markets, the study applied the partial proportional odds model in the framework of Vector Generalized Additive model (VGAM), which comprehensively addresses conceptual, modelling and interpretational complexities implied by market participation (MP) theory. Data for the study were collected from 365 cassava farmers in Sekyere Central (SC) district of Ashanti region, Ghana. The results showed that only 32% of the farmers participated in the markets as Net sellers, while 45% and 23% participated as Autarkic producers and Net buyers respectively. The econometrics analysis revealed that household size, access to market information, age, education, market access, membership to famer or community organisation, off-farm income, farm income, livestock holdings, cassava output and cassava being cultivated as major crop, appeared statistically significant in explaining MP decisions. Five variables, namely income, livestock, produce, access to market information and cassava as major produce, failed the proportional odds assumption and entered the model unconstrained, producing regime specific estimates. These results are indicative of how conditional, on a given regime, farmers respond to changes in the factors that affect their MP decisions, in terms of intensity and direction. Farm level policies, that target cassava farm households’ participation in markets should consider regime specific strategies. }, year = {2024} }
TY - JOUR T1 - Assessing Market Participation of Smallholder Cassava Farmers in Sekyere Central District of Ghana Using Vector Generalized Additive Ordered Models AU - Isaac Abunyuwah Y1 - 2024/08/06 PY - 2024 N1 - https://doi.org/10.11648/j.eco.20241303.12 DO - 10.11648/j.eco.20241303.12 T2 - Economics JF - Economics JO - Economics SP - 76 EP - 87 PB - Science Publishing Group SN - 2376-6603 UR - https://doi.org/10.11648/j.eco.20241303.12 AB - Smallholder farmers theoretically produce and market their output to meet livelihood needs of the family under given set of resource constraints. In spite of numerous policy efforts to ensure that smallholder farmers in Ghana and rural districts in particular, exploit the economic potential of cassava production, many of them continue to produce for subsistence with limited participation in the markets. To assess and explain the levels at which smallholder cassava farmers participate in markets, the study applied the partial proportional odds model in the framework of Vector Generalized Additive model (VGAM), which comprehensively addresses conceptual, modelling and interpretational complexities implied by market participation (MP) theory. Data for the study were collected from 365 cassava farmers in Sekyere Central (SC) district of Ashanti region, Ghana. The results showed that only 32% of the farmers participated in the markets as Net sellers, while 45% and 23% participated as Autarkic producers and Net buyers respectively. The econometrics analysis revealed that household size, access to market information, age, education, market access, membership to famer or community organisation, off-farm income, farm income, livestock holdings, cassava output and cassava being cultivated as major crop, appeared statistically significant in explaining MP decisions. Five variables, namely income, livestock, produce, access to market information and cassava as major produce, failed the proportional odds assumption and entered the model unconstrained, producing regime specific estimates. These results are indicative of how conditional, on a given regime, farmers respond to changes in the factors that affect their MP decisions, in terms of intensity and direction. Farm level policies, that target cassava farm households’ participation in markets should consider regime specific strategies. VL - 13 IS - 3 ER -