Determinants of Commercialization of Smallholder Tomato and Pineapple Farms in Ghana

Smallholder commercialisation may be broadly defined as the situation where farmers of small individual and family farms have greater engagement with markets, either for inputs, outputs, or both. A key premise of commercialization as a development strategy is that markets provide increased incomes to households who are able to maximize the returns to land and labor through market opportunities, using earned income for household consumption in ways that are more efficient than subsistence production. This study assesses the characteristics of smallholder farmers in Ghana using tomato and pineapple production as a case study; analyses the relationship between commercialization and smallholder land holdings; assesses the determinants of commercialization of smallholder agriculture, as well as the benefits or otherwise of smallholder farmers from commercialization; and discusses how commercialization affects household food security among smallholder farmers. Descriptive statistics, correlations and regression analysis are used to describe the characteristics of smallholder farmers and determine the key factors that influence household decision to undertake commercialization among both tomato and pineapple farmers. Based on the study, it was found that 96.3 percent of the respondents in the study communities are farmers; and they fall between the ages of 15 and 59 years (91%), which indicates that they are relatively young. The key determinants of commercialization among tomato farmers are land productivity and labour productivity. Similarly, the main determinants of commercialization among pineapple smallholder farmers are land productivity and savings. The study recommends that both public and private agencies work should together to facilitate the move of smallholder farmers from mainly subsistence to commercialization because it comes with several benefits, including higher household incomes, and improvements in household food security