A REVIEW PAPER ON SMALLHOLDER AGRICULTURAL COMMERCIALIZATION AND PARTICIPATION IN ETHIOPIA.

The smallholder agricultural commercialization and market participation is a key precondition for the transformation of agriculture sector from subsistence to commercial production. However, the contribution of smallholder agricultural commercialization and participation remains low. As a result, this paper aimed to discover the conceptual understanding, the role of smallholder agricultural commercialization and participation, its determinants and to identify the initiative mechanisms to enhance it. In Ethiopia the average landholding size of smallholder farm is 1.18 hectares per farm household which meets the conventional meaning of smallholder farms (less than 2 ha). Ethiopian smallholders agricultural plow over 96% of the full agricultural land, although average smallholder cultivates less than one hectare, and consumes greater than 65% of total. In addition, despite all these efforts, commercialization of smallholder farmers' products is still at a low level. The low-level smallholder agricultural commercialization which in turn low level of value addition as a result -low level of total marketed supply forces the country to import different crops and livestocks. Accordingly, this review identified the major determinants of smallholder agricultural commercialization were technology adoptions, markets and their integration, asset holdings and policy aspects. Therefore, an initiative mechanism to enhance smallholder agricultural commercialization and participation in Ethiopia is an imperative strategy which includes, providing better access to agricultural technologies; encouraging farmers' cooperatives and establishing agro-industry parks. Therefore, this review paper recommends interventions geared towards improving smallholder farmers' organization, producers' association and ensuring appreciable reduction in transaction costs and also farmers' access to productive assets and technologies which is capable of stimulating profitable smallholders' market participation and as a result deemed important to transform subsistence to commercialization agriculture. [ABSTRACT FROM AUTHOR]