Smallholder Farmers’ Market Orientation and the Factors Affecting It in Bangladesh
Economic Insights – Trends and Challenges, Vol.V(LXVIII), No. 3, pp. 9-18 (2016)
10 Pages Posted: 24 Jul 2017
Date Written: 2016
Smallholder farmers of Bangladesh struggle for a long time with access to markets due to lack storage and processing facilities. This paper investigates the market orientation status of smallholder farmers in Bangladesh. Using field survey data from 100 smallholder farmers of Durgapur upazila under Rajshahi district, we have calculated a household market orientation index to measure the households’ market orientation status. In order to assess this, a One-way ANOVA analysis is adopted to check whether the smallholders are using more traded inputs in production as they move from low to high level of market orientation. Moreover, a multiple regression analysis is applied to identify the factors determining smallholders’ market orientation. Results show that smallholder farmers in the study area are not subsistence oriented as, on the average, 65% of their produced commodities are sold in the market and the sample farmers are moderately market oriented with average market orientation index 0.59, indicating that they allocate 59% of their cultivable land to marketable crops. This also indicates that market orientated farmers are progressively using traded inputs to increase total production and are significantly influenced by exogenous determinants like farm size, use of improved seeds, access to extension services and total value of produced cash crops. These findings suggest that enhancing direct motivation, enforcing farmer-market contacts and promoting market orientated crop technologies may facilitate the market orientation status of smallholder farmers.
Keywords: Market Orientation, Smallholder Farmers, Traded Inputs, Bangladesh
JEL Classification: M21, Q13, B23
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