Working Paper 6: What is Agricultural Commercialisation, Why is it Important, and how do we Measure it?
Written by Colin Poulton
Agricultural commercialisation occurs when agricultural enterprises and/or the agricultural sector as a whole rely increasingly on the market for the sale of produce and for the acquisition of production inputs, including labour. It is an integral and critical part of the process of structural transformation (see section 1.1), through which a growing economy transitions, over a period of several decades or more: from one where the majority of the population live in rural areas and depend directly or indirectly on semi-subsistence agriculture for an important part of their livelihood to one where the majority of the population live in urban areas and depend on employment in manufacturing or service industries for the major part of their livelihood.