Does cluster farming matter for commercialization? Empirical evidence from priority crops in Amhara Region, Ethiopia

Purpose In Ethiopia, cluster farming (CF) of ten priority crops has been introduced in four regions with potential for agricultural commercialization. However, their commercialization has rarely been studied at the regional level. We measured the extent of commercialization of these crops and investigated factors affecting their commercialization in the Amhara Region of Ethiopia. Design/methodology/approach Data collected from 558 smallholder farmers were analyzed by using the household commercialization index, descriptive statistics, t -test, and fractional response models. Findings CF participants sold on average 13% more wheat, 22% more malt barley, 3% more maize, and 6% more teff than non-participants, but 2% less sesame. CF participation was positively and significantly associated with the commercialization of wheat, malt barley, and maize. On-farm income, off-farm income participation and storage access were positively and significantly associated with wheat commercialization, unlike neighbor participation in CF. Educational status and storage access were positively and significantly correlated with malt barley commercialization. Maize commercialization was influenced positively by on-farm income and negatively by respondents’ age. Research limitations/implications The findings are based on cross-sectional data collected from small samples and a limited number of variables. Originality/value This is the first study to measure the extent of commercialization of CF priority crops and to investigate factors affecting their commercialization in the Amhara region.