Presented by Berhanu Gebremedhin at the Market-Oriented Smallholder Development: IPMS Experience-Sharing Workshop, Addis Ababa, 2-3 June 2011.

1. Commercialization of Smallholders: The Tale of a Transforming Family Berhanu Gebremedhin Market-Oriented Smallholder Development: IPMS Experience-Sharing Workshop ILRI, Addis Ababa, 2-3 June 2011

3. Subsistence family farm planning, 2000 Ato Gebeyaneh: Malefia , the rainy season is approaching. We should talk about our farm plan. W/o Malefia: Oh!, Yes, it is time for planning. We should aim to produce the different types of food for the family; we will use our own seed and manure, and other inputs. why don’t you go ahead and prepare a plan. Ato Gebeyaneh: Okay! Here is a plan: This will ensure our household food needs. 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 Commodity Area (tsimad) Teff 2 Wheat 2 Pulses 2

5. Subsistence family’s struggle for survival, 2005 Ato Gebeyaneh : 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. Ato Gebneyaheh : Malefia, the extension agents are trying to help us use better technologies and practices to produce more and feed ourselves. They are good people. But, we are still poor, and sometimes unable to feed ourselves for the year. What can we do? W/o Malefia: My dear!, What else can we do? The DAs will just tell us to produce more. We just pray to God! We have no choice other than try to produce our food to feed ourselves! 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.

7. Role of the extension service, 2005 Extension agent: Ato Gebeyaneh, I would like to talk to you about how you can improve your life. My service to you was limited only to technology and production. Now, I have come back from training on market oriented transformation of subsistence agriculture. Sustainable way out of poverty and food insecurity is through market oriented agriculture. 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. Ato Gebeyaneh: 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! Ato Gebeyaneh: What is market oriented agriculture my dear?

9. Transformation can be gradual Ato Gebeyaneh: Malefia, the extension agents talked to me today. They were not themselves. They want me to be like a trader!! My parents never did this. W/o Malefia: What did they say, my dear? Ato Gebeyaneh: 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. W/o Malefia: My God! In deed, they are not themselves. How can we feed our family if we do not produce our food?

15. Semi-commercial family (farm planning conversation), 2007 Ato Gebeyaneh: Malefia, the rainy season is approaching. We should talk about our farm plan. W/o Malefia: Yes! Now, we should think of getting good cash income. But, we should not forget our food crops as well. Ato Gebeyaneh: 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.

18. Semi-commercial family (life improved), 2008 Ato Gebeyaneh: Malefia, we are now better-off than when we were producing to eat. But, this is too much work. You and I are working a lot harder than we used to. What shall we do? Ato Gebeyaneh: 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. W/o Malefia: I told you, my dear! We should hire in labor. We can get the money to pay for. Besides, we should buy farm machinery and better farm equipment, because our farm is profitable. W/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.

20. Extension agent revisits - 2009 Extension agent: Ato Gebeyaneh and W/o Malefia, you see! your life has improved now! You have good income and your family is food secure. Are you happy with our service to you? W/o Malefia: Thank you very much! You are helping us very well. You have shown us how to plan market oriented production, adopt and use improved technologies. Extension Agent: W/o Malefia, don’t forget the other value chain aspects we are helping you with; Did you forget them? Market information, linkages with input suppliers, credit suppliers and output markets have been also critical for your success. Ato Gebeyaneh: My apologies, my dear! She forgot about them. Without these value chain aspects, we would have been dead meat!

22. Commercial family farm planning, 2015 Ato Gebeyaneh: Malefia, It is that time of farm planning again. As you said, we should specialize in dairy and horticulture. We will also allocate some land for teff. Ato Gebeyaneh: 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: Sure! but, we need to reduce cost of production, and be better competitors in the market. Besides, we should increase our scale of production. 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.