Marketing outlets choice modelling for commercialisation analysis of smallholder rice producers in Ghana

Abstract

The study determined the factors that influence smallholder farmers' probability of participating in the rice market, as well as those that influence the extent of rice commercialisation. Data used for this study was culled from the 6th Round of Ghana Living Standard Survey - GLSS 6. Descriptive statistics, analyses of variance, logit, censored and truncated regressions were employed for data analyses. The extent of commercialisation was estimated to be 57% for smallholder rice farmers. However, those who sold their harvested rice through market trader outlets reported a higher extent of commercialisation (58%) compared to farmers who sold through non-market trader outlets (50%). Farmer characteristics, household characteristics, farm characteristics and institutional or policy factors significantly influenced the probability of marketparticipation and degree of commercialisation behaviour in Ghana. It is recommended that rice commercialisation policies should focus on creating the environment to improve the buying activities of market traders.