This study analyses smallholder production response to farm contraints, and development of product markets and off-farm employment opportunities. Results show imperfections in labour and food markets that cause farmers to allaocate land to crops that are less profitable but most suited to satisfying household food needs. High food prices induce farmers to rely more on own farm production. Improved roads, education and access to credit and extension improve productiviy and technical efficiency. Labour suppyly is positively related to shadow wages and negatively related to shadow incomes. This...