Market Constraints and Commercialisation among Smallholder Farmers in Northern Ghana

Abstract:

This study examines maize commercialisation intensity, determinants, and the major constraints confronting smallholder maize farmers in Tolon District of Northern Ghana. A cross-section of 125 maize farmers was selected through a multistage sampling procedure. The study measures commercialisation intensity using the Household Maize Commercialisation Index and employs a fractional logit model with robust standard errors to identify associated factors. The constraints of farmers were analysed through the Friedman test and Kendall’s coefficient of concordance. The results showed that 52.5% of the maize harvested had 70.5 medium-level market participants. Commercialisation intensity was positively correlated with education, household size, area cultivated with maize and access to market information. But negatively correlated with gender, farming experience, distance to market, transportation costs and access to credit. The farmers perceived low output prices, high production costs, and price fluctuations as three major challenges with substantial agreement. The study recommends improving access to farm inputs, strengthening maize markets and price information systems to expand collective marketing arrangements. These measures can improve the profitability and sustainability of smallholder maize commercialisation in Northern Ghana.