1. Commercialization of Smallholders: The Tale of A Transforming Family Berhanu Gebremedhin, IPMS-ILRI Market oriented small holder development IPMS experience sharing Workshop June 2 & 3, 2011

4. Ten sheep and goats

5. Some chicken

7. W/o MalefiaTirete, age 28

8. Two children

10. Input sources: own

11. Cash income: secondary AtoGebeyaneh: Okay! Here is a plan: W/o Malefia: It looks good. But, wait! We will need money for family expenses. Aha! don’t worry! We may be able to sell some of our produce if we can; sell some of the sheep or goats or some butter to generate cash for family expenses. In the last resort, you may try to work off-farm This will ensure our household food needs.

13. Role of extension in subsistence agriculture: limited to technology and production!W/o Malefia: Oh! God bless you, my dear! You are right. The DAs get training every time. Maybe they will come up with some more useful ideas. AtoGebeyaneh: No, Malefia! We can not proceed like this! I heard that our government has a new policy for agriculture. I do not know what it is. Maybe the DAs will lead us in a new direction.

15. Introduction of new ideas can be difficult initiallyAtoGebeyaneh: I always liked you. You are here to help us. But, what you are telling me today is difficult to understand. I should think about it and also talk to Malefia! Extension Agent: You produce commodities that you can sell and get higher income. Then you can buy food in the market to feed your family. You can then save part of the income, thereby accumulate wealth. In this way, you will be rich and food secure!! Next time, we would like to talk to you and your wife together.

17. Persistence in interventions and learning are required

18. Husband and wife training in extension very usefulW/o Malefia: My God! In deed, they are not themselves. How can we feed our family if we do not produce our food? AtoGebeyaneh: They said we should produce to sell, get cash and buy food from the market. It is amazing, isn’t it Malefia? Also, they want to talk to us together.

20. Will we get food to buy in the market?

21. What about if the prices collapse?

22. Input and output markets major concern to commercializing farmers

23. Interventions to improve markets critical

28. Are you satisfied, AtoGebeyaneh and W/o Malefia? W/o Malefia: It sounds good! But, perhaps, we should start it small. We should produce both food crops and the market oriented commodities. If it works for us, we may expand.

30. Input sources: both own and purchased

31. Demand for inputs and technology increasesAtoGebeyaneh: You are right, Malefia. We should also use purchased inputs in addition to our own inputs. W/o Malefia: Do you also realize there is going to be a lot more work than before. We may consider hiring in labor.

33. Dairy demand unable to be met

34. Fattened shoats fetching twice purchase price, good profit

37. Demand for credit increasesW/o Malefia: Oh! That is a good idea! I think we should focus on dairy and horticulture. We need to get more credit to buy few more improved dairy cows. We need to introduce drip irrigation to use water more efficiently. We should also rent in land from other farmers. This way, not only do we specialize, but we also expand. AtoGebeyaneh: But, don’t you think that we should specialize in fewer enterprises? In that case, we can learn the job better and do it better.

40. Input source: External

41. Extension can be demand driven

42. Commercial farmers may not completely abandon food cropsAtoGebeyaneh: You are right, Malefia! Efficiency and competitiveness are now our prime issues. We will also need to rent in land, buy more improved dairy cows. We can hire trained labor, because we will have the money to pay for. W/o Malefia: The public extension agents are always with us, but we should also be able to pay for additional extension service as we need it.

44. Closer links with vegetable buyers, and dairy processors established.

45. Regular connection with input suppliers established.

46. Credit worthiness firmly established and securing credit easy

50. Low tech skills development (technology)

51. Entrepreneurial skills development

52. Linkages with input and output markets

53. Small-scale microfinance

54. Safety nets

56. Medium tech skills development (technology)

57. Entrepreneurial skills development

58. Linkages with input and output markets

59. Small-scale micro-finance and medium scale rural banks

60. Insurance

62. Facilitate consolidation to become medium to large scale farmers.

63. Insurance

64. Property rights, including land policy