A Meta-analytic Review of the Link between Market Access and Contractual Crop Production in Ethiopia

Abstract

This systematic review and meta-analysis introduces a new perspective for measuring open market access to examine how it influences the success of contract farming initiatives in Ethiopia. It addresses the types of associations that exist between contract farming and open market access and fills the existing empirical and knowledge gaps. The review uses thirty studies published between 1990-2024.The findings show there is a notable effect between contract farming earnings and open market access, with a considerable difference across the regional states in Ethiopia. Mainly, high market access has a better effect on contract farming proceeds compared to other levels. Moreover, Amhara emerges as a more favorable working environment for contract farming stakeholders, while Tigray and Sidama show less favorable situations. Farmer characteristics, including training (education), closeness to market centers, and household head’s age, encourage the contract farming system. In contrast, access to extension services reveals a counterproductive association with contract farming success, suggesting that its delivery requires re-evaluation, especially in less supportive areas. To promote national agricultural growth, this study advocates for facilitating cross-regional agreements that link experienced farmers and contractors to new areas. There is a need for policy prioritization for farmer empowerment and regional-level market opportunities for contract farmers. This can be realized by providing field-based training focused on contract management directly to farmers, and by facilitating cross-regional agreements that link experienced farmers and contractors to low-experienced areas in the country.