MSc Thesis Abstracts School of Agricultural Economics

MSc Thesis Abstracts
School of Agricultural Economics and
Agribusiness Management
Volume I
(1996-2013)
Edited and Compiled by:
Nigussie Dechassa, Mengistu Ketema
Mulugeta Yitayih, Firesenbet Zeleke and
Bekelu Teshome
November 2014
Haramaya University
Preface
Scarcity of documented information on hitherto done research at our university has
often remained the concern of scientists. Therefore, this book of abstracts has been
compiled by the Office of Research Affairs with the aim of providing researchers with
quick and easy reference for planning further research as well as for teaching purposes.
This book contains most of the abstracts of MSc thesis research conducted by students
of the stream of Agricultural Economics from 1996 up to 2013. However, we would like
to inform readers that, due to limited access to some of the graduate students’ theses, we
have been unable to include all of the abstracts in this first edition. We hope that the
second edition will be more inclusive than this one. The order of the author names
under each title indicates the student, major advisor, and co-advisors.
Table of Contents
1. Assessment of Smallholder Farming Systems in Selale and Jarso Areas of North Shoa Zone of
Oromia ....................................................................................................................................................... 1
2. Use of Crossbred Cows for Milk and Traction in the Highlands Ecoregion: A Whole-Farm
Evaluation .................................................................................................................................................. 2
3. Agricultural Credit and Factors Impeding Loan Repayment Performance of Smallholders in
West Shewa: the Case of Alemgena Woreda ....................................................................................... 3
4. Smallholder Farming Systems and their Potential for Optimum Utilization of Resources in
North Wollo, Ethiopia: a Case of Meket District............................................................................... 4
5. An Assessment of Factors Affecting Adoption of Improved Wheat Technology and Its
Impact: The Case of Hula Woreda, Ethiopia ...................................................................................... 5
6. Analysis of Factors Influencing the Adoption of New Wheat and Maize Varieties in Tigray,
Ethiopia: The Case of Hawzien Woreda.............................................................................................. 6
7. Feasibility Study of the Remedial Measure Plan for the Reduction of Threats Caused by the
Expansion of Lake Beseka...................................................................................................................... 7
8. Determinants of Fertilizer Adoption in Ethiopia: The Case of Major Cereal Producing Areas .. 8
9. Factors Influencing Loan Repayment of Rural Women in Eastern Ethiopia: The Case of Dire
Dawa Area ................................................................................................................................................. 9
10. Economics of Crop- Livestock Integration: The Case of Smallholders in Boreda Woreda,
Southern Ethiopia ..................................................................................................................................10
11. Evaluation of Technical Efficiency of the Ethiopian Grain Mill Products Manufacturing
Industry ....................................................................................................................................................11
12. Determinants of Household Food Security in Eastern Oromia, Ethiopia: The Case of Boke
District of Western Hararge Zone ......................................................................................................12
13. The Performance of Hides and Skins Marketing in the Amhara National Regional State .......13
14. Cattle Marketing in Western Shewa ....................................................................................................14
15. Financial Performance of Dry Coffee Processing Firms in Oromia: The Case of Western
Wallaga Zone ..........................................................................................................................................15
16. Management of Moisture Stress Risk in Crop Production in North-Eastern Ethiopia: The
Case of Kalu District .............................................................................................................................16
17. Determinants of Farmers‟ Willingness to Participate in Soil Conservation Practices in the
Highlands of Bale: The Case of Dinsho Farming System Area .....................................................17
18. Women‟s Workload and their Role in Agricultural Production in Woreda and Non-Woreda
Basic Service Areas: The Case of Yem ...............................................................................................18
19. Impact of Incentive System on Soil and Water Conservation Activities in Ambassel Area
South Wollo, Ethiopia ...........................................................................................................................19
20. Adoption of Improved Sweet Potato Varieties in Boloso Sore Woreda, Southern Ethiopia ..20
21. Adoption of Crossbred Dairy Cows in Arsi Zone: The Case of Tiyo and Lemu-Bilbilo
Woredas ...................................................................................................................................................21
22. Impact of Technology on Wheat Production in Bale Highlands: The Case of Smallholder
Farmers ....................................................................................................................................................22
23. Patten of Credit Use and Its Impact on Small Farmers Income: A Study in Dire Dawa Area,
Eastern Ethiopia .....................................................................................................................................23
24. Non-Farm Employment and Farm Production of Small Holder Farmers-A Study in Edja
District of Ethiopia ................................................................................................................................24
25. Dimensions and Determinants of Food-Insecurity among Rural Households in Dire Dawa,
Eastern Ethiopia .....................................................................................................................................25
26. Influence of Land Size on Household Food Security: The Case of Deder District of Oromiya
Region.......................................................................................................................................................26
27. Analysis of Agricultural Land Size Fragmentation and Its Effects: The Case of Highlands of
North Shawa, Oromiya, Ethiopia ........................................................................................................27
28. Factors Affecting the Economic Status of Target Groups of Micro Finance Institutions: The
Case of Oromia Credit and Saving Share Company – Kuyu Branch ...........................................28
29. Resource Allocation under Risk: The Case of Smallholder Farmers in Arsi-Negele .................29
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30. Impact of Community Managed Irrigation on Farm Production Efficiency and Household
Income: The Cases of Woliso and Wonchi Districts of Oromiya Regional State ..................... 30
31. Analysis of Technical Efficiency of Wheat Production: A Study in Machakel Woreda,
Ethiopia ................................................................................................................................................... 31
32. Gender Diffrence and Its Impact on Agricultural Productivity: The Case of Wenchi District
in South West Shoa Zone, Ethiopia ................................................................................................... 32
33. Determinants of Use of Soil Conservation Measures by Smallholders in Jimma Zone: The
Case of Dedo District ........................................................................................................................... 33
34. Demand for Fertilizer in Oromiya: The Case of Two Districts in North Shewa Zone ............ 34
35. Performance of Cattle Marketing System in Southern Ethiopia with Special Emphasis on
Borena Zone ........................................................................................................................................... 35
36. Growth, Direction and Structure of Ethiopian Coffee Exports ................................................... 36
37. Ethiopia‟s Haricot Bean Exports: Pattern, Market Share, Constraints and Prospects .............. 38
38. Economic Impact of Malaria on Peasant Agriculture: The Case of Pawe Special Woreda ...... 39
39. Socio-Economic Determinants of Child Malnutrition in the Rural Areas of Harari National
Regional State, Ethiopia. ....................................................................................................................... 40
40. Adoption and Profitability of Kenyan Top Bar Hive Bee Keeping Technology: A Study in
Ambasel Woreda of Ethiopia .............................................................................................................. 41
41. Analysis of Factors Influencing Adoption of Triticale (X-Triticosecale Wittmack) and Its
Impact: The Case of Farta Woreda..................................................................................................... 42
42. Determinants of Formal Source of Credit Loan Repayment Performance f Smallholder
Farmers: The Case of North Western Ethiopia, North Gondar ................................................... 43
43. Assessment of Comparative Advantage of Horse Bean and Lentil Production in Basona
Werana Woreda, North Shewa, Ethiopia .......................................................................................... 44
44. Analysis of Technical Efficiency in Sorghum Production: The Case of Smallholder Farmers in
Raya-Azebo District, Southern Tigray, Ethiopia .............................................................................. 45
45. Economic Efficiency of Some Selected Tanneries in Ethiopia: A Policy Analysis Implication
................................................................................................................................................................... 46
46. Technical Efficiency of Maize Production: A Case of Smallholder Farmers in Assosa Woreda
................................................................................................................................................................... 47
47. Determinants of Land Degradation in the Lake Tana Basin and Its Implications for
Sustainable Land Management: The Case of Angereb and Gish-Abbay Watersheds ............... 48
48. Socio-Economic and Environmental Impact Assessment of Devolution of Natural Resource
Management in Adaba-Dodola Forest Priority Area ...................................................................... 49
49. Environmental Goods Scarcity and Its Effect on Demand for Children and Child Mortality:
The Case of Sekota District,Wag Himra Administrate Zone of the Amhara National Regional
State .......................................................................................................................................................... 50
50. Measuring Rural Household Food Security Status and Its Determinants in the Benishangul
Gumuz Region, Ethiopia: The Case of Assosa Woreda ................................................................. 51
51. Household Food Insecurity in Dodota-Sire District, Arsi Zone: Coping Strategies and Policy
Options .................................................................................................................................................... 52
52. The Economic Impact of HIV/AIDS in Smallholder Farmers of Alamata District, Southern
Tigray, Ethiopia ...................................................................................................................................... 53
53. Determinants of Private Investment at National and Regional Level with Particular Reference
to Dire Dawa and Harari Regional States .......................................................................................... 54
54. Factors Determining Supply of Rice: A Study in Fogera District of Ethiopia ........................... 55
55. Economics of Coffee Bean Marketing: A Case Study of Goma District in Jimma Zone of
Ethiopia ................................................................................................................................................... 56
56. Dairy Marketing Patterns and Efficiency: A Case Study of Ada‟a Liben District of Oromia
Region, Ethiopia..................................................................................................................................... 57
57. Dimensions and Determinants of Poverty in Pastoral Areas of Eastern Ethiopia: The Case of
Shinile Zone in Somali National Regional State ............................................................................... 58
58. Farmers‟ Response and Willingness to Participate in Water Harvesting Practices: A Case
Study in Dejen District/East Gojam Zone ....................................................................................... 59
59. Conservation Costs of Wild Population of Coffee Arabica in Montane Rainforest of Ethiopia
................................................................................................................................................................... 60
60. Demand for Beef in Addis Ababa ...................................................................................................... 61
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61. The Impact of Small Scale Irrigation on Household Food Security and Assessment of Its
Management Systems: The Case of Filtino and Godino Irrigation Schemes in Ada Liben
District, East Shoa, Ethiopia ................................................................................................................62
62. Determinants and Dimensions of Household Food Insecurity in Dire Dawa City, Ethiopia .63
63. Farmers' Perceptions of Land Degradation and Determinants of Household Food Security
Status at Middle Catchment of Bilate Watershed .............................................................................64
64. Household Savings Behavior and Determinants of Savings in Rural Savings and Credit
Cooperatives: The Case of Western Amhara Region, Ethiopia .....................................................65
65. Analysis of Red Pepper Marketing: The Case of Alaba and Siltie in SNNPRS of Ethiopia .....66
66. Farmers Participation in Contract Farming: The Case of Bread Wheat (Triticum Aestivum
L.Em.Thell) Production in Womberma Woreda, Amhara National Regional State ..................67
67. Performance of Primary Agri-Cooperatives and Determinants of Members‟ Decision to Use
as Marketing Agent in Adaa Liben and Lume Districts ..................................................................68
68. Determinants of Farmers‟ Willing Ness to Pay for the Conservation Strategy of National
Parks: The Case for Simen Mountains National Park .....................................................................69
69. Socio-Economic and Institutional Determinants of Small-Scale Irrigation Schemes Utilization
in Bale Zone, Oromiya National Regional State ...............................................................................70
70. Sesame Market Chain Analysis: The Case of Metema Woreda, North Gondar Zone, Amhara
National Regional State .........................................................................................................................71
71. Vegetable Market Chain Analysis in Amhara National Regional State: The Case of Fogera
Woreda, South Gondar Zone ..............................................................................................................72
72. Economics of Urban Dairy Farming in Hawassa Town, Southern Nations, Nationalities and
Peoples Regional State ...........................................................................................................................73
73. Risk Aversion Behavior of Farm Households and the Role of Credit Usage in Kobbo
District, North Wollo Zone of Ethiopia ............................................................................................74
74. Performance of Coffee Marketing Cooperatives and Members‟ Satisfaction in Dale District:
SNNPRS-Southern Ethiopia ................................................................................................................75
75. The Impact of Ibnat-Belessa Integrated Food Security Program on Household Food Poverty
...................................................................................................................................................................76
76. Spatial Price Dynamics and Pricing Conduct of Major Wheat Markets in Ethiopia ..................77
77. The Role and Performance of Primary Coffee Cooperatives in the Coffee Market Chain: The
Case in Wonago and Yirgacheffe Woreda, Snnprs, Ethiopia .........................................................78
78. Impacts of Productive Safety Net Programme on Households‟ Assets Protection: The Case of
Habru and Ambassel Districts in Amhara Region, Ethiopia .........................................................79
79. Price and Market Chain Analysis of Indigenous Sheep in South Ethiopia: The Case of Bonga
...................................................................................................................................................................80
80. Determinants of Adoption of Soil and Water Conservation Structures at Farm Level: The
Case of Ambassel District, Amhara Region, Ethiopia.....................................................................81
81. Determinants of Households‟ Demand for Credit Service from “Rural Savings and Credit
Cooperatives”: The Case of Western Amhara Region, Ethiopia...................................................82
82. Performance of Microfinance Institutions and Factors Affecting the Intensity of Loan
Repayment in Eastern Ethiopia: The Case of Dire, Harar and Oromia Credit and Saving
Share Company (Haramaya Branch) ...................................................................................................83
83. Determinant of Agriculture Loan Repayment Performance: The Case of Development Bank
of Ethiopia ...............................................................................................................................................84
84. Analysis of Technical Efficiency of Wheat Production: The Case of Smallholder Farmers and
Commercial Farms in Bale Zone of Oromia ....................................................................................85
85. Analysis of the Technical Efficiency of Groundnut Production: The Case of Smallholder
Farmers in Harari Region .....................................................................................................................86
86. Technical and Cost Efficiencies of Ethiopian Agro Food Processors .........................................87
87. Analysis of Technical Efficiency of Wheat Production on Vertisol: The Case of Enebsie Sar
Mider Woredain East Gojjam ..............................................................................................................88
88. Technical Efficiency of Poultry Farms: The Case of East Shewa Zone of Oromiya ................89
89. Impact Assessment of Input and Output Market Development Interventions by Ipms
Project: The Case of Gomma Woreda, Jimma Zone ......................................................................90
90. The Impact of Food Price Inflation on Rural Households‟ Food Security in Moyale and
Shashemene Districts of Oromia Regional State, in Ethiopia .......................................................91
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91. Impact Evaluation of Input and Output Market Development Interventions: A Case Study of
Improving Productivity and Market Success (IPMS) Project in Bure District ........................... 92
92. Impacts of Productive Safety Net Program on Households‟ Assets Protection and Creation:
The Case of Haramaya and Kersa Districts in Oromiya Region, Ethiopia ................................. 93
93. Impact Assessment of Input and Output Market Development interventions of the IPMS
Project: The Case of Alaba and Dale Woredas, SNNPRS, Ethiopia............................................ 94
94. Women Empowerment and Its Impact on Agricultural Productivity: The Case of Kersa
District in Eastern Hararghe Zone, Ethiopia ................................................................................... 95
95. Impact of Livestock Credit on Poverty Status and Asset Possession of Rural Households: The
Case of Fadis Woreda in East Hararghe Zone, Oromia Regional State ...................................... 96
96. Value Chain Analysis of Fairtrade Coffee: The Case of Bedeno Woreda Primary Coffee
Cooperatives, East Hararghe Zone, Ethiopia ................................................................................... 97
97. Groundnut Value Chain Analysis in Eastern Ethiopia ................................................................... 98
98. Malt Barley Market Chain Analysis: The Case of Wegera District, North Gonder Zone,
Amhara National Regional State ......................................................................................................... 99
99. Determinants of Red Pepper Market Supply: The Case of Jabitehinan Woreda, West Gojjam
Zone, Amhara National Regional State, Ethiopia .......................................................................... 100
100. Market Chain Analysis of Red Pepper: The Case of Bure Woreda, West Gojjam Zone,
Amhara National Regional State, Ethiopia...................................................................................... 101
101. Microfinance and Women‟s Empowerment: The Case of Harar Microfinance Institution. 102
102. Determination of Optimal Livestock-Crop Enterprise Combination and Resource
Allocation in Agro-Pastoral Areas of Afar Region: The Case of Ayssaita and Afambo
Districts .................................................................................................................................................. 103
103. Analysis of Factors Determining Farmers‟ Participation in Local Seed Production: The Case
of Womberma and Guagusa Shekudad Woredas of Amhara National Regional State ........... 104
104. Determinants of Farm Diversification and Households‟ Production Decisions under Risk:
The Case of Eastern Hararghe Zone, Ethiopia .............................................................................. 105
105. Socio-Economic Impact of HIV/AIDS and Willingness to Participate in HIV/AIDS
Prevention of Rural Households: The Case of Harari Regional State........................................ 106
106. Willingness to Pay for Improved Domestic Water Service: The Case of Bullen Town,
Metekel Zone, Benishangul Gumuz Regional State, Ethiopia ..................................................... 107
107. Willingness to Pay for Improving and Protecting Multiple Use Water Resources: The Case
of Kersa District, Eastern Hararghe ................................................................................................. 108
108. Willingness to Pay for Rainfall Based Insurance by Smallholder Farmers in Central Rift
Valley of Ethiopia: The Case for Dugda and Mieso Woredas ..................................................... 109
109. Demand for Agricultural Mechanization/Tractorization/ by Smallholder Farmers: The Case
of Arsi Zone, South-East Oromia Regional State .......................................................................... 110
110. Determinants of Credit Repayment and Fertilizer Use by Members of Cooperatives in Ada
District, East Shoa Zone, Oromia Region ...................................................................................... 111
111. Technical Efficiency of Eastern and Rift Valley Route Rose (Rosa Hybrida) Cut Flower
Farms in Awash Melkassa, Bishoftu and Ziway Districts of Oromia Regional State, Ethiopia
................................................................................................................................................................. 112
112. Analysis of Technical Efficiency of Lentil (Lens Culnaris Medikus) Production: The Case of
Gimbichu District, Eastern Shewa Zone of Oromia, Ethiopia ................................................... 113
113. Severity and Determinants of Rural Household Food Security Status in Angolelanatera
Woreda, N/Shewa Zone, Amhara National Regional State, Ethiopia ....................................... 114
114. Determinants of Household Food Security Status: The Case of Productive Safety Net
Program Participants in Goro Gutu Woreda, East Hararge Zone, Oromiya, Ethiopia ......... 115
115. Impact of Savings and Internal Lending Communities Program (Silc) by Women on
Households Economy: The Case of Dire Dawa Administration................................................ 116
116. Impact of Integrated Watershed Management on Household Livelihoods: The Case of
Umbullo Wacho Watershed of Hawassa Zuria District in Sidama Zone, Southern Nations
Nationalities and Peoples‟ Region ..................................................................................................... 117
117. Impact Assessment of Input and Output Market Development Interventions of the IPMS
Project: The Case of Mieso Woreda, Oromiya National Regional State, Ethiopia .................. 118
iv
118. The Impact of Productive Safety Net Program on Asset Accumulation and Investment in
Sustainable Land Management in the Central Rift Valley: The Case of Adamitulu Jido
Kombolcha and Meskan Districts .................................................................................................... 119
119. Impact of Microfinance on Poverty Reduction of Participating Women Households: The
Case of Dire Microfinance Institution............................................................................................. 120
120. Value Chain Analysis of Vegetables in Daro Lebu District of West Hararghe Zone, Oromia
Region, Ethiopia .................................................................................................................................. 121
121. Value Chain Analysis of Sugarcane: The Case of Kalu District, South Wollo Zone of
Amhara National Regional State, Ethiopia ..................................................................................... 122
122. Market Chain Analysis of Teff and Wheat Production in Halaba Special Woreda, Southern
Ethiopia ................................................................................................................................................. 123
123. Households‟ Willingness to Pay for Improved Rural Water Supply: Application of
Contingent Valuation Method in Haramaya District .................................................................... 124
124. Determinants of Income Distribution: Inequality Decomposition Analysis, Bench Maji Zone
Sheko District ...................................................................................................................................... 125
125. Determinants of Rural Households Participation in Non-Farm Activities and Its Effect on
Income Distribution: The Case of Wonchi District in Central Oromia ................................... 126
126. Rural Labour out Migration and Improved Agricultural Technologies Adoption: Evidence
from Fifteen Peasant Associations in Ethiopia .............................................................................. 127
127. Impact of Resource-Based Conflict on the Livelihood of Pastoral and Agro-pastoral
Households: The Case of Erer District in Somali Regional State, Ethiopia ............................. 128
128. A Comparative Study of Food Security Status between HIV/AIDS Affected and Nonaffected Households in Dire Dawa Town, Dire Dawa Administration Region ...................... 129
129. The Performance of Hides and Skins Marketing in Gedeo Zone, Southern Nations,
Nationalities and People Regional State, Ethiopia ........................................................................ 130
130. Impact of Urbanization of Addis Ababa City on Peri-urban Environment and Livelihoods
................................................................................................................................................................ 131
131. Impact of Small- Scale Irrigation on Food Security of Rural Households: The Case of Dire
Dawa Administration.......................................................................................................................... 132
132. Determinants of Farm Household Poverty: The Case of Lay Gayint District, South Gondar
Zone, Amhara National Regional State, Ethiopia ......................................................................... 133
133. Analysis of Farmers Perception of Land Degradation and Adoption of Soil and Water
Conservation Technologies in Shebedino Woreda, Sidama Zone, Snnpr ................................ 134
134. Socioeconomic Determinants of Child Nutrition in Central Highland of Amhara National
Regional State: The Case of Menz Mama Woreda ........................................................................ 135
135. Technical Efficiency of Haricot Bean Seed Production: The Case of Small Scale Seed
Growers in Boricha District, Sidama Zone, Southern Ethiopia ................................................. 136
136. Market Chain Analysis of Fruits for Gomma Woreda, Jimma Zone, Oromia National
Regional State ....................................................................................................................................... 137
137. Impact of Trade Liberalization on the Performance of Ethioipa‟s Agriculture Versus
Industry Sector: The Case of Economic Partnership Agreement between European Union
and Africa-pacific- Caribbean Countries ......................................................................................... 138
138. Effect of Adoption of Soil Conservation Technologies on Household Food Security in
Central Highlands of the Amhara Region: A Case Study of Menz Gera District ................... 139
139. Farmers‟ Willingness to Pay for the Conservation of Wildlife Resources: The Case of Babile
Elephant Sanctuary ............................................................................................................................. 140
140. Determinants of Smallholder Commercialization of Horticultural Crops in Gemechis
District, West Hararghe Zone, Ethiopia ......................................................................................... 141
141. Determinants of Perceptions and Choice of Adaptation Strategies to Climate Change among
Pastoral Households in Harshin Woreda of Somali Regional State, Ethiopia ......................... 142
142. Factors Influencing Credit Repayment of Smallholder Farmers in Lume District, Oromia
Regional State ....................................................................................................................................... 143
143. Economic Efficiency of Wheat Seed Production: The Case of Smallholders in West Gojjam
Zone of Amhara Region .................................................................................................................... 144
144. Magnitudes and Determinants of Food Insecurity among Agro-Pastoral Households in Jijiga
District, Somali Regional State, Ethiopia. ....................................................................................... 145
v
145. Impact of Rubber Plantation on Livelihoods and Ecosystem Services in Gura Ferda
Woreda, Bench Maji Zone, Southern Nations Nationalities and Peoples Regional State,
Ethiopia ................................................................................................................................................. 146
146. Impact of Productive Safety Net Program on Households‟ Food Security and Asset
Holding: The Case of Haramaya District in Oromia National Regional State, Ethiopia ....... 147
147. Economic Impact of HIV/AIDS on Agricultural Production of the Rural Households: The
Case of Kersa and Gursum Woredas of East Hararge Zone, Oromiya Region, Ethiopia ..... 148
148. Analysis of Market Chains of Ginger (Zingiber Officinale Rosc): The Case of Boloso Bombe
and Kindo Koisha Woredas of Wolaita Zone, SNNPR, Ethiopia ............................................. 149
149. Assessment on the Performance of Sorghum Seed Supply System: The Case of Babile
District, Eastern Hararge Zone, Oromia Regional State .............................................................. 150
150. Willingness to Pay for Anti-Retroviral Drugs among People Living with Human
Immunodeficiency Virus: The Case of Kuyyu District-North Shoa Zone, Oromia Region . 151
151. Priority Area in Amhara National Regional State, Ethiopia ....................................................... 152
152. Determinants of Farmers‟ Participation in Preventive and Control Measures of Invasive
Species: The Case of Parthenium in Boset Woreda, East Shewa Zone of Oromiya Region . 153
153. Performance and Integration of Onion Markets: The Case of Kombolcha District of East
Hararghe Zone, Ethiopia .................................................................................................................... 154
154. Households' Willingness to Pay for Improved Solid Waste Management in Urban Area: The
Case of Addis Abba, Ethiopia ........................................................................................................... 155
155. Assessment of Food Insecurity, Its Determinants and Coping Mechanisms among Pastoral
Households of Afar National Regional State: The Case of Zone One, Chifra District .......... 156
156. Analysis of Vegetable Marketing in Eastern Ethiopia: The Case of Potato and Cabbage in
Kombolcha Woreda, East Hararghe Zone, Oromia National Regional State .......................... 157
157. Economic Efficiency of Groundnut Production: A Comparative Study of Local Seed
Business Project Participant and Non-Participant Farmers in Babile District, Eastern Ethiopia
................................................................................................................................................................. 158
158. Impact of Resettlement Programme on the Livelihood of Settlers: The Case of Sassiga
District of East Wallaga Zone, Oromia Regional State, Ethiopia ............................................... 159
159. Farm Households‟ Decision to Invest in Soil Conservation: The Case of Gozamin District
................................................................................................................................................................. 160
160. Technical Efficiency Analysis of Malt Barley Production: The Case of Smallholder Farmers
in Debark Woreda, North Gondar Zone of the Amhara National Regional State ................. 161
161. Analysis of Improved Box Hive Technology Adoption by Smallholder Farmers: The Case of
Ahferom Woreda, Central Zone of Tigray Region, Ethiopia ...................................................... 162
162. Gender Differentials in Drought Coping Strategies: The Case of Smallholder Farmers in
Menz Gera Midir Woreda of Amhara National Regional State, Ethiopia ................................. 163
163. Impact of Improved Barley Scale Up/Out Program on Household Food Security in Meket
District, North Eastern Ethiopia ...................................................................................................... 164
164. Determinants of Loan Repayment Performance of Smallholder Farmers: The Case of Kalu
District, South Wollo Zone, Amhara National Regional State .................................................... 165
165. Impact of Domestic Biogas Technology on Rural Household S‟ Income and Labor Time:
The Case of Arbaminch Zuria and Meskan Districts in SNNPR, Ethiopia ............................. 166
166. Climate Change and Variability: Implications for Household Food Security in Agropastoral
Areas of Jijiga District, Eastern Ethiopia......................................................................................... 167
167. Determinants of Adoption of Improved Wheat Varieties by Smallholder Farmers: The Case
of Angacha Woreda, Kembata Tembaro Zone of Southern National Nationality People
Region .................................................................................................................................................... 168
168. Adoption of Improved Sorghum Varieties and Farmers‟ Varietal Trait Preference in Kobo
District, North Wolo Zone, Ethiopia .............................................................................................. 169
169. Adaptation Strategies of the Communities Surrounding Haramaya Lake towards Its
Disappearance, East Hararghe Zone Ethiopia ............................................................................... 170
170. Competitiveness and Comparative Advantage of Haricot Bean and Onion Production: A
Study in Dugda District of East Showa, Ethiopia ......................................................................... 171
171. Impact of Small-Scale Irrigation on Farm Households‟ Technical Efficiency: The Case of
Chulul Irrigation Schemes, Girawa District, East Hararghe Zone of Oromia National
Regional State, Ethiopia ...................................................................................................................... 172
vi
172. Wheat Production Efficiency on Small Farms: The Case of Gedeb Hasasa District, West
Arsi Zone, Oromia Regional State of Ethiopia ............................................................................. 173
173. Economic Efficiency of Sesame Production in Selamago District of South Omo Zone,
Southern Ethiopia ............................................................................................................................... 174
174. Economic Efficiency of Smallholder Farmers in Maize Production: The Case of Arsi
Negelle District, Oromia National Regional State, Ethiopia ....................................................... 175
175. Determinants of Technical Efficiency in Maize Production: The Case of Smallholder
Farmers in Dhidhessa District, Illubabor Zone, Ethiopia ........................................................... 176
176. Utilization of Small-Scale Irrigation Scheme and Its Contribution to Food Security: The
Case of Gorogutu Woreda, East Hararghe Zone, Oromia Regional State ............................... 177
177. Determinants of Food Insecurity and Coping Strategies of Rural Households: The Case of
Shalla Woreda, West Arsi Zone, Oromia Region, Ethiopia ........................................................ 178
178. Dimensions and Determinants of Food Security among Female Headed Households: The
Case of Dire Dawa City Administration, Ethiopia........................................................................ 179
179. Factors Affecting Household Food Security: The Case of Abichu-Gnea District, North
Shewa Zone, Oromia National Regional State .............................................................................. 180
180. Impact of Microfinance on the Livelihood of Stallholders Farmers: The Case of Oromia
Credit and Saving Share Company, Grawa Branch, East Hararghe Zone, Oromia National
Regional State, Ethiopia ..................................................................................................................... 181
181. Impact of Land Fragmentation on Small Farm Households‟ Income: The Case of Boloso
Sore District, Wolayita Zone, Southern Nations Nationalities and People‟s Regional State,
Ethiopia ................................................................................................................................................. 182
182. Impact of Fairtrade Certification on Smallholder Coffee Producers‟ Income: The Case of
Gimbo District..................................................................................................................................... 183
183. Impact of Cassava Production in Ensuring Food Security of Farm Households: The Case of
Amaro Woreda in Southern Nations, Nationalities and Peoples Regional State of Ethiopia 184
184. Performance of Poultry Marketing and Determinants of Market Participation: The Case of
Smallholder Poultry Producers in Rural Kebeles of Dire Dawa Administration, Ethiopia ... 185
185. Sheno Butter Market Chains Analysis: The Case of Kimbibit District in North Showa Zone
of Oromia National Regional State, Ethiopia ................................................................................ 186
186. Market Chain Analysis of Koka Reservoir Fish in Ethiopia ..................................................... 187
187. Analysis of Onion Marketing: The Case of Fentalle Woreda, East Shewa Zone, Oromia
National Regional State, Ethiopia .................................................................................................... 188
188. Analysis of Cow Milk Market Chain: The Case of Sululta District, Oromia Special Zone
Surrounding Finfinne, Ethiopia ........................................................................................................ 189
189. Performance of Micro Enterprise and Its Determinant Factors: The Case of Hosanna Town,
Hadiya Zone, Ethiopia ....................................................................................................................... 190
190. Determinants of Growth and Diversification of Micro and Small Enterprises: The Case of
Dire Dawa, Ethiopia ........................................................................................................................... 191
191. Smallholder Farmers' Participation in Microfinance Program and Its Impact on Their
Income and Asset Holding: The Case of Ocssco in Robe District, Arsi Zone, Oromia Region,
Ethiopia ................................................................................................................................................. 192
192. Determinants of Farmers Participation in Farmers Research Group and Its Contribution on
Their Income from Rice: The Case of Fogera District, Amhara National Regional State,
Ethiopia ................................................................................................................................................. 193
193. Dimensions and Determinants of Poverty in Agro- Pastoral Households of Jigjiga District,
Somali National Regional State, Ethiopia ....................................................................................... 194
194. Magnitude and Determinants of Rural Household Poverty in Gursum District of Somali
Regional State, Eastern Ethiopia ...................................................................................................... 195
195. Analysis of Demand for Biogas Technology Using Contingent Valuation: The Case of
Dugda District, Eastern Shewa Zone, Oromia National Regional State, Ethiopia ................. 196
196. Determinants of Willingness to Pay for Conservation and Rehabilitation of Bamboo Forests:
The Case of Bambasi Woreda, Benishangul Gumuz Regional State, Ethiopia........................ 197
197. Farmers‟ Willingness to Pay for Locally Produced Potato Seed Tubers and Groundnut Seed:
The Case of Haramaya and Babile Districts of East Hararghe Zone, Oromia Regional State,
Ethiopia ................................................................................................................................................. 198
vii
198. Farmers‟ Willingness to Pay for Weather Index Crop Insurance: The Case of Adiha, Central
Tigray, Ethiopia .................................................................................................................................... 199
199. Coffee Value Chain Analysis: The Case of Meta District, East Harereghe Zone of Oromia
Regional State, Ethiopia ...................................................................................................................... 200
200. Analysis of Cattle Value Chain: The Case of Wolaita Zone of SNNPRS, Ethiopia .............. 201
201. Comparative Analysis of Direct and Multilevel Hybrid Maize Seed Marketing and
Distribution Systems in Southern Ethiopia: The Case of Bona and Bensa Woredas ............. 202
202. Socio-Economic Determinants of Under Five Child Malnutrition in Rural Dire Dawa
Administration, Ethiopia .................................................................................................................... 203
203. Choices of Varieties and Demand for Improved Rice Seed in Fogera District of Ethiopia 204
204. Economic Efficiency of Rain-Fed Wheat Producing Farmer‟s in North Eastern Ethiopia:
The Case of Albuko District .............................................................................................................. 205
205. Mushroom Value Chain Analysis in Addis Ababa, Ethiopia ..................................................... 206
206. Determinants of Recreational Demand of Abijata-Shalla Lakes National Park in Ethiopia: A
Travel Cost Approach ......................................................................................................................... 207
207. Factors Affecting Community Participation in Managing Drinking Water Supply Facilities:
The Case of Sofi Woreda, Harari Region, Ethiopia ...................................................................... 208
208. Determinants of Commercialization of Teff and Its Factor Productivity Outcome: The Case
of Tahtay Qoraro Woreda, Northwest Zone of Tigray Regional State, Ethiopia .................... 209
209. Economic Efficiency in Barely Production: The Case of Chole District, East Arsi Zone,
Oromia National Regional State, Ethiopia ...................................................................................... 210
210. Impact of Productive Safety Net Program on the Livelihood and Food Security of Rural
Households: The Case of Sofi District of Harari Region, Ethiopia ........................................... 211
211. Impact of Artificial Insemination of Dairy Cows on the Livelihoods of Smallholder
Households: The Case of Haramaya District, Ethiopia ................................................................ 212
212. Climate Change Adaptation Strategies of Agro-Pastoral Households: The Case of Babile
Woreda, Somali Regional State, Ethiopia ........................................................................................ 213
213. Market Chain Analysis of Honey in Sodo Zuria District, Southern Ethiopia ........................ 214
214. Climate Change Adaptation Strategies of Smallholder Farmers: The Case of Assosa District
of Benishangul Gumuz Regional State, Western Ethiopia ........................................................... 215
215. Market Chain Analysis of Coffee Indale District of Southern Ethiopia .................................. 216
viii
1. Assessment of Smallholder Farming Systems in Selale and Jarso Areas
of North Shoa Zone of Oromia
Solomon Gebretsadik and A. Niang
Year: 1996
Abstract: The assessment of smallholder farming systems aims at understanding the existing
interactions between crops and livestock in smallholder of Selale and Jarso areas of North Shoa
zone of Oromia. The specific objectives of the study are (1) to identify and describe the croplivestock farming systems; (2) to diagnose the existing constraints; and (3) to develop optimum
farm models that maximize the farm income. To this end, a survey was conducted in four
"Woredas" ("Anas") of North Shoa zone of Oromia to collect data from 80 farm households for
the year 1993/94. Statistical models (such as Bartlett's homogeneity of variance test, analysis of
variance, t-statistic and homogeneity of variance with t-test) were applied to classify the farming
systems of the study area. Variables like resource endowments (land, labour and livestock), crop
production pattern, yield per hectare and location (geographical area and altitude) were used as
indicators to classify the farming systems. In this regard, two farming system areas were
identified, lowland and highland. Lowland farming system is characterized by smaller land-labour
ratio, livestock unit, share of pulse area, and higher share of large cereals. The majority of farmers
in the lowland area cultivate sorghum, teff, millet and field pea. On the other hand, highland
farming system is characterized by higher land-labour ratio, relatively higher number of livestock
units, comparatively smaller share of large cereals and higher share of small cereals and pulses.
Farmers in this farming system have grown wheat, teff, rough pea, horse bean and barley in that
order of importance.
The survey results have shown that major livestock activities in the farming systems are the
production of cattle, small ruminants (sheep and/or goat) and pack animals. There are various
interactions between crop and livestock activities, and they are closely integrated. Animals
provide draft power for cropping activities. In turn, the crop sub-system provides feed to animals
from crop by-product and residuals. Farmers regard livestock as a source of cash and stabilization
of income. Animals are also important sources of household fuel. However, crops and livestock
systems compete for farm resources, particularly land. This is aggravated by the increased
population pressure in the area. Smallholder farmers in the study area are subsistence oriented
and have so many problems. Poor soils, unfavourable and often unpredictable climatic
conditions, lack of improved technologies, poor management practices and low resource
endowments are among the major constraints. Moreover, lack of suitable infrastructure, credit,
input distribution and farmers' training and skill formation program have also contributed for the
poor performance and low level of productivity. In this study, linear programming models were
formulated to examine the optimal resource allocation, farm income and resource productivity.
The base models results indicate that farm income and resource productivity are closer to that
found through farm survey. Therefore, the production pattern, resource use, farm income and
returns to farm resources are comparatively similar between the base model and the farmers'
current practices. The base model results also show that farmers in the lowland areas of Selale
and Jarso are operating under severe arable land shortages. On the other hand, draft power for
cultivation, and operating capital are among the most critical constraints in the highland farming
system. Thus, in the highland area, there is a possibility of increasing farm income by increasing
the level of working capital through credit. Furthermore, different alternative models were
developed using different levels of working capital and crop production technologies. In this
regard, the results of different alternative models clearly show that if farmers have sufficient
operating capital (own or borrowed), improvements in the present farming systems could be
achieved via the introduction of improved crop technologies. The implication of this finding is
that availability of improved crop technology in the form of improved inputs (such as improved
seed, fertilizer, chemicals and so on), better extension service and access to agricultural credit
would be the major ones for increasing income and productivity. To this end, a close
coordination between extension and credit institutions (governmental and nongovernmental) in
the area would ensure provision of farm supplies timely to encourage the use of available
improved technology.
Keywords: Farming System; Farm Income; Resource Use; Productivity
1
2. Use of Crossbred Cows for Milk and Traction in the Highlands
Ecoregion: A Whole-Farm Evaluation
Mengistu Buta, Barry Shapiro and Belay Kassa
Year: 1997
Abstract: The traditional agricultural system in the Ethiopian highlands depends on oxen for
cultivation, and draught power is usually the most important product of cattle kept by these
farmers. The food grain needs of the rising human population are resulting in a progressive
extension of the area under cultivation, leading to increased use of the limited grazing resources
that remain. Because of feed scarcity most Ethiopian highland farmers are being compelled to
reduce their stock to the minimum number that would afford them adequate number of oxen at
any time. Previous efforts of researchers directed at the introduction of crossbred dairy cows
shows that this technology can raise net cash incomes of adopters. However, their introduction
can also lead to increases in livestock holdings resulting in more acute scarcity of feed. It was
given this dilemma that IAR and ILRI started evaluating the use of crossbred cows for both milk
and traction as one of the options for reducing the herd needed to produce draught animals to
support agricultural production in Ethiopia.
This study was initiated to assess the constraints to the use of crossbred cows both for milk and
traction rather than for milk only, and to investigate the impact on farmers‟ incomes and resource
use. Given these objectives, linear programming with an incorporation of an MIP (Mixed Integer
Progarmming) approach was employed to model the farm practices of farmers who have been
testing crossbred cows on-farm. Plowing time (per hectare) of crossbred cows was 19% faster for
cultivation operations than oxen. The dairy-draft (D-D) technology can contribute to minimizing
the draft animal constraint enabling timely coverage of seed-bed preparation and a more
profitable crop mix. Model results show that use of crossbred cows for both milk and traction
improves farm gross margins by about 5% over their use for milk only. This improvement in
gross margins over the dairy-only technology (D-O) is mainly the effect of more efficient use of
the available feed resources. Farmers with relatively less arable land holding benefit more from
keeping crossbred cows for both milk and traction. This is because of the increased dependence
of the farm on purchased feed resulting from reduction in land holdings.
Keywords: Crossbred; Cows; Traction; Linear Programming; Mixed Integer Programing
2
3. Agricultural Credit and Factors Impeding Loan Repayment
Performance of Smallholders in West Shewa: the Case of Alemgena
Woreda
Belay Kebede and Belay Kassa
Year: 1998
Abstract: This study is concerned with analysis of factors impeding loan repayment performance
of smallholders in Alemgena woreda, West Shewa zone. As credit is one of the most important
factors required for smallholders input utilization, its repayment to the lender is also of
paramount importance to have sustainable agricultural development and financial institutions.
Secondary data from relevant institutions were used just to highlight on different approaches
used in different decades regarding agriculture and agricultural credit development strategies. In
the course of this study primary data were collected from 102 randomly selected farm household
borrowers of fertilizer credit using structured questionnaire. These respondents were drawn from
six PAs and two SCs in the study area. For the analysis of farm data, descriptive statistics such as
mean, standard deviation and percentages were used to describe socio-economic characteristics
of the respondents. Also t- and (2 tests were employed to measure the potential power of
continuous and discrete variables respectively in differentiating non-defaulters and defaulters of
formal credit. Partial correlation coefficient and coefficient of contingency were calculated to
detect multicollinearity and association among the continuous and discrete variables, respectively.
Then, a multivariate tool, linear discriminant analysis, was used to identify the most important
variables attributed to discriminate between non-defaulters and defaulters of fertilizer credit for
1996 production season. The result of the analysis showed that the frequency of contact with
development agents, livestock ownership in livestock unit and celebration of occasional
ceremonies were statistically significant factors responsible for the optimum discrimination rule
between the two groups. Another multivariate tool, multiple linear regression analysis, was used
to identify critical variables that contributed to timely repayment of loan for non-defaulter
respondents. Experience in own farm, experience in credit use, proportion of area under teff and
wheat production, annual farm revenue, number of draught oxen owned, ownership of livestock
in livestock unit, number of contacts with development agents and location of the farmers from
development agents‟ center were found to be the most critical variables contributing to loan
repayment. All these variables have expected signs except farm experience (negative coefficient)
and location (positive coefficient). Therefore, the policy implications of the study were:
diversification of terms and forms of credit provision for different activities especially livestock
production and oxen purchase; formulating strategies for relevant rural credit institutions,
continuous training of farmers so as to gradually minimize expenditures on occasionally
celebrated social ceremonies, strengthening the linkages between farmers and DAs are, among
others, which deserve special attention.
Keywords: Credit; Loan Repayment; Linear Discriminate Analysis
3
4. Smallholder Farming Systems and their Potential for Optimum
Utilization of Resources in North Wollo, Ethiopia: a Case of Meket
District
Anteneh Temesgen and D. K. Grover
Year: 2000
Abstract: The main objective of this study is to examine the potential for optimal utilization of
resources in North Wollo, which contributes towards designing appropriate plan and
development strategies in the future. The main aim of this comparative analysis is to investigate
whether the existing patterns of production are optimal or not and indicate ways and means of
efficiently using the resources of stallholder‟s in order to maximize farm incomes. The study
attempts to identify and characterize the farming systems to determine the constraints of
agricultural production, analyze productivity of different resources as well as the level of the farm
income and develop optimal plan for existing and improved farming system with the available
resources.
The study uses primary information through farm survey. 110 farm households from 4 peasant
associations are selected through multistage proportionate random sampling. A cluster analysis is
used for the classification of the households based on land to labor ratio, oxen number, tropical
livestock unit (TLU), crop production, family number, and fertilizer use. The two groups are
statistically tested and are found to be significantly different. Thus, there exists a significant
difference in resource endowments, input use, production pattern and farm income. The overall
average land holding size for the sample farmers is 1.03 hectare, with 1.76 hectare for the high
income group and 0.78 hectare for the low income group. The high income group possesses an
average land labor ratio of 0.5, 1.9 oxen, 7. 41 tropical livestock units, spends Birr 284 per year
for fertilizer, average family size of 6.6 and produces 20.60 quintals of grains per year. The low
income group possesses an average 0.3 unit of land to labor ratio, 0.83 oxen, 3.2 tropical livestock
units (TLU), family size of 5.1, an average of 7.20 quintal of grain production and spent Birr
60.70 per year for fertilizer. Shortage of Land, weather variability, soil degradation, pest problem,
poor management practice, lack of improved technology, inappropriate allocation of resources,
shortage of inputs etc. are some of the main problems which hinder farmers` productivity and
farm income increment in the study area. Optimal allocation of resources brings improvement in
Gross margin by 9.4 per cent and 8 per cent for high income group and low income group
respectively. This change occurs mainly by shifting the area allocated to enterprises using
improved seeds and fertilizers. In the base optimal plan, the average area for enterprises using
improved wheat and fertilizer production increases by 272 per cent and 1350 per cent for high
income group and low income group respectively. Furthermore, the analysis of the alternative
optimal plans over the base model with allocation of enough working capital shows a better
prospect for increasing more farm income than could be realized from the re-allocation of
existing resources for both groups. As a result there is an increment in gross margin by 22, 2 and
10 per cent for high income group, low income group and overall sampled farmers respectively.
A sensitivity test is conducted to test the stability of the optimal plan. The analysis brings out that
consequent upon increased input price and output reduction by 25 per cent, the optimal solution
becomes infeasible. However, such an increment in input price / output reduction is very
common in the study area. This calls for measures such as facilitating of resettlement programs
on voluntary bases, construction of dams, supplying of various inputs to the farmers at
reasonable prices and increasing of non-farm activities to prevent the occurrence of such risks.
Keywords: Farming System; Resource Utilization; Farm Income
4
5. An Assessment of Factors Affecting Adoption of Improved Wheat
Technology and Its Impact: The Case of Hula Woreda, Ethiopia
Getahun Degu, Legesse Dadi and Workineh Negatu
Year: 2001
Abstract: Agriculture in the Ethiopian economy prominently is the largest contributor to 50% of
Gross Domestic Production (GDP), employs 80% of the population‟s employment and the main
income-generating sector for the majority of the rural population. Cereals, pulses and oil seeds
are the major crops grown in Ethiopia accounted for about 42.5% of the total agricultural GDP.
Wheat (Triticum aestivum) is one of the major cereal crops grown in Ethiopia. In Ethiopia, wheat
ranks fourth in total crop area and production. It is grown in the highlands at altitudes ranging
from 1500 to 3000 masl. Wheat is a staple food crop for most households in rural and urban
areas in Ethiopia. However, wheat yield is low and unstable due to several technical and socioeconomic constraints. Therefore, adoption and wider use of improved wheat varieties is of
paramount importance in alleviating the problems. This study attempted to empirically examine
factors affecting adoption and intensity of use of improved wheat varieties and it also provides
information on the impact of wheat technologies in Hula Woreda, Sidama Zone. The study was
based on the data collected from randomly selected farm households. Four peasant associations
(PAs) were randomly selected from the woreda and a total of 124 randomly selected households
were interviewed. The survey was conducted by administering structured questionnaire during
October 2001. In addition, secondary data collected from relevant sources were used to
substantiate the primary data of the study area. Tobit model was used to identify factors affecting
adoption and intensity of use of improved wheat varieties. Fourteen explanatory variables were
included in the model out of which three were found to be significant. Fertilizer use, income and
credit were the most important factors influencing adoption and intensity of use of improved
wheat varieties. The impacts of adopters of improved wheat varieties also portray the able
increase of the farmers' production of wheat varieties and improve their incomes as farmers
adopted wheat technologies. The economic analysis using the partial budgeting method and price
sensitivity analysis substantially ascertain the profitability of the adopted improved wheat
technologies and the validity of the adoption of recommendations.
Keywords: Adoption; Wheat Technology; Impact; Tobit Model
5
6. Analysis of Factors Influencing the Adoption of New Wheat and Maize
Varieties in Tigray, Ethiopia: The Case of Hawzien Woreda
Kidane Gebremariam Abreha and Belay Kassa
Year: 2001
Abstract: A Multivariate Linear Discriminant Analysis was employed to identify variables that
best discriminate adopters and the non-adopters of new wheat and maize varieties in Hawzien
woreda, Eastern Zone of Tigray, and establish an index of classification rule in which
observations are assigned in some optimum fashion into either of the two groups. In this case, a
cross sectional data from 187 sample respondents of both groups pertaining to the hypothesized
variables and for 1998/99 crop season was collected and analyzed. The uni-variate test results of
the study indicate that adopters of new wheat varieties were younger with a relatively larger
average family size, more experienced in farming, higher average annual on-farm and off-farm
cash incomes, better size of livestock holding and plough oxen, more frequent contact with
development agents than the non-adopters. Moreover, adopters are situated near to market
places than the non-adopters. Similarly, significant differences was observed between adopters
and the non-adopters of new maize varieties. In this respect, adopters had higher average annual
on-farm cash income, a relatively greater size of livestock holding, better experience in use and
applicable rates of commercial fertilizers and are situated near to market places than the nonadopters.
Results of the stepwise discriminant analysis on adoption decision of new wheat varieties
reveals that the total livestock holding, annual on-farm cash income earned from sale of crop and
livestock products, and distance to market place were the main determinants appeared to be the
potential discriminating variables between adopters and the non-adopters. Results of the stepwise
multiple regression analysis further indicate that the variation in the level of adoption was
explained by the level of education, number of oxen owned, timeliness of production loans and
frequency of contact with development agents. About 53.20 percent of the variations in extent of
adoption of the farmers was explained by the functional relationship established from these
variables. In case of new maize varieties, results of the stepwise discriminant analysis have shown
that annual on-farm cash income, experience in use and applicable rates of commercial fertilizers,
frequency of contact with development agents, health status of the farmers during the given crop
season, and distance of the farmers to nearest market place were found to be the potential
discriminating variables between the two groups (adopters and non-adopters). Moreover, results
of the multiple regression analysis show that fertility of farm holding, distance to the nearest
market place, frequency of contact with development workers, the size of average annual on-farm
cash income and radio ownerships were the main determinant variables explaining the variation
in the extent of adoption among sample adopter farmers. About 50.6 percent of the variations in
extent of adoption of the farmers was explained by the functional relationship established from
these variables. With this brief results of the study, it will be helpful to implement appropriate
agricultural development policies and strategies in order to increase the level of adoption of new
wheat and maize varieties thereby improve the production and productivity of smallholders in the
study area.
Keywords: Adoption; Wheat; Maize; Varieties; Multivariate Linear Discriminant
6
7. Feasibility Study of the Remedial Measure Plan for the Reduction of
Threats Caused by the Expansion of Lake Beseka
Gulilat Abebe, Belay Kassa and Farah Hassen Adem
Year: 2001
Abstract: Lake Beseka has been expanding since three decades and has now inundated more
than 37 km2 of land. The expansion of the lake from about 3 km2 in 1957 to about 40 km2 in
1998 and to about 41.5 km2, in October 2000, has caused a serious threat to the Metehara Sugar
Estate and the surrounding community. The specific objectives of this study were: to quantify the
benefits that can be accrued and costs that could be incurred if the proposed remedial measure is
put into action; and to undertake economic and financial analysis on the Lake Beseka Water
Level Stabilization Project. Accordingly, the study attempted to generate information on
quantitative estimates of the extent of the damages in order to provide information on financial
and economic feasibility of the proposed remedial measure. Considering only the quantifiable
benefits attainable from the resources to be saved and in light of the savings from spending
retained from preventive and/or alleviative measures, the results of the financial analysis of the
proposed remedial measure showed, that the IRR was 34.79%, which is considerably higher than
the cutoff rate of 11%. The NPV of this investment was positive (54,233,207 Birr) and the B/C
ratio was also higher than one (3.02). The EIRR (38.77%) was found to be even higher than the
financial IRR (34.79%). The ENPV (66,345,900 Birr) and the EB/C ratio (3.68) were also higher
than the values in the case of financial analysis. In all the cases of the sensitivity tests considered
(financial as well as economic), the decision criteria (IRR, NPV and the B/C) of the proposed
remedial measure did not change much from the base cases. The proposed remedial measure is,
therefore, worthy of immediate implementation from the financial as well as from economic
point of view. In light of the difficulties, while doing this study, it is recommended that CSA
should include collecting market prices for locally traded goods so that such environmental
rehabilitation project could easily be evaluated.
7
8. Determinants of Fertilizer Adoption in Ethiopia: The Case of Major
Cereal Producing Areas
Techane Adugna Wakjira Mulat Demeke and Bezabih Emana
Year: 2002
Abstract: Imbalance between the population growth rate and the agricultural production growth
rate is one of the pronounced national problems in Ethiopia. Low level of productivity due to
low level of improved technologies utilization and high risk due to adverse environment are
among the most frequently mentioned major causes of the country's chronic food security
problem. In order to meet the food requirements of the growing population, food grains and
other agricultural production have to be increased. The immediate available means to attain the
national goal of food self-sufficiency is improving productivity by using improved technologies.
Fertilizer is one of the major productivity enhancing inputs. Therefore, the major concern of this
study is to empirically examine factors influencing adoption and intensity of chemical fertilizer
use by smallholder farmers in the major cereal producing areas of Ethiopia. The data used for
this study were extracted from the fifth round Ethiopian Rural Household survey conducted by
the Economics Department of the Addis Ababa University in Collaboration with USAID in
1998/99. Sixteen major cereal producing sites were selected and a total of 1082 cases were
considered in the final econometric model analysis. In addition, secondary data collected from
concerned organizations were also used to assess the existing situation of the fertilizer sub-sector.
Tobit model was employed to analyze factors influencing adoption and intensity of fertilizer use
among smallholder farmers. A total of sixteen explanatory variables were included in the model
of which 14 variables were found to be significant. Access to extension service, access to input
credit, access to hired labor, area under improved seed and regional differentials are the most
important factors influencing adoption and intensity of fertilizer use. The other significant
variables include, gender differential, education, supply of family labor, total number of livestock
owned, health status of the household head, off-farm income and slope of cultivated land.
Implications of this study are strengthening extension service, development of human capital and
improving farmers' access to financial capital, which are important areas of priority for the
success of future intervention strategies aimed at the promotion of production increasing
technologies such as chemical fertilizers.
Keywords: Fertilizer; Adoption; Cereal Production; Tobit Model
8
9. Factors Influencing Loan Repayment of Rural Women in Eastern
Ethiopia: The Case of Dire Dawa Area
Belay Abebe Assefa, Desta Hamito and V.P.S.Arora
Year: 2002
Abstract: The study is mainly concerned with the analysis of factors influencing loan repayment
performance of rural women in Dire Dawa area with the aim of proposing measures that can
help improve the exercise. In the course of this study primary data were collected from 92
randomly selected borrowers out of 23 saving and credit groups of WIBS credit beneficiaries
residing in 10 PAs. In addition, secondary data were collected from relevant organizations and
pertinent documents. For the data analysis, descriptive statistics such as mean, standard deviation,
frequency distribution and percentages were used to describe institutional and socio-economic
characteristics of the respondents. In addition, the t and Chi-square tests were employed to
compare non-defaulters and defaulters group, with respect to some explanatory variables. A
binary logit model was used to analyze factors influencing loan repayment performance of rural
women. A total of twelve explanatory variables were included in the empirical model and out of
these, six were found to be statistically significant. Variance inflation factor and coefficient of
contingency were calculated to detect multicollinearity and association among the continuous and
discrete variables, respectively. Location of borrowers from lending institution, loan diversion,
annual farm revenue and celebration of social ceremonies were highly important in influencing
loan repayment performance as evidenced by the model statistic. The other critical variables
include initial credit group formation and farm size. Therefore, consideration of factors affecting
loan repayment performance is vital because it provides information that would enable to
undertake effective measures with the aim of improving loan repayment performance and hence
help attain success in rural women credit programs. It would also enable lenders such as NGOs
and policy makers to have knowledge as to where and how to channel efforts in order to
minimize loan defaults.
Keywords: Loan Repayment; Rural; Women; Binary Logit Model
9
10. Economics of Crop- Livestock Integration: The Case of Smallholders
in Boreda Woreda, Southern Ethiopia
Feleke Asrat and Gezahegn Ayele
Year: 2002
Abstract: The Ethiopian economy dominated by smallholder peasant agriculture, accounts for
more than 95% of the total food production. The production system varies with about 19.6% of
the farmers engaged in exclusive crop production, about 2% are exclusive livestock producers
and a majority of farmers 78% are involved in crop-livestock production systems. In the mixed
farming system, livestock is an integral component. A variety of biological and economic
interactions between crop and livestock make crops-livestock integration appealing to farmers.
This study was carried out in Boreda woreda of the Gamo Gofa zone, SNNPS with the following
objectives: 1. to analyze the farming systems of the study woreda; 2. to identify major constraints
that affect crop-livestock integration in the farming system; 3. to quantify the contribution of
crop and livestock in an integrated farming system and; 4. to develop optimum plan that
maximizes the farm income. The statistical tools such as analysis of variance, the F-test and, t-test
were employed for classification of the farming systems of the study area. The classification
criteria employed were land-to-labour ratio, livestock unit, percentage of livestock off-take,
cropping intensity, and percentage share of large and small cereals. Accordingly, the midland
(woynadega) and lowland (kolla) farming systems were identified. The kolla area is identified with
higher livestock unit (TLU), land to labour ratio, livestock off-take rate, and percentage share of
large cereals. While, the Woynadega area is characterized by higher cropping intensity and
percentage share of small cereals. Many constraints are found influencing the crop-livestock
integration in both the farming systems. The major constraints include blackleg, trypanosomiasis,
bacterial wilt on enset, shortage of farmland, aphid‟s attack on field pea and beans in their order
of importance in the Woynadega. In the Kolla, trypanosomiasis, decline in price of grain, raising
purchasing price for artificial fertilizers, shortage of farm labour, draught oxen shortage, wild
animals attack on crops were found to be the major constraints. In the study, impact of croplivestock integration on farm income and resource allocation was investigated using linear
programming model. The gross margin for actual farm plan accounted for Birr 2953 for the
Kolla and 1480 for the Woynadega farming systems, whereas, the gross margin for an improved
crop-livestock integrated farm plan has resulted in Birr 3072.28 and 1964.15 for the Kolla and
Woynadega farming systems. The overall result justified that integrating crops with livestock
increases the farm income more than the crop alone farm plan. The improved plan for the kolla
area showed that teff, maize, enset, millet and chickpea in descending order in area allocation
along with 4.73 cow, 0.91 ox pair, 2 goats and 2 donkeys. The farm plan for the woynadega area
includes field bean, barley and sweet potato, maize, wheat and enset, and field pea in descending
order in area allocation along with 2.16 cow, 2.09 ox pair, 0.68 goat, 0.61 sheep, 0.72 donkeys and
0.11 mules.
Keywords: Farming System; Crop; Livestock; Integration; Farm Income
10
11. Evaluation of Technical Efficiency of the Ethiopian Grain Mill
Products Manufacturing Industry
Tedla Bekele and Belay Kassa
Year: 2002
Abstract: As the world‟s population grows and the potential to increase production by bringing
more resources into use becomes more limited, it is natural that the efficiency with which firms
use available resources would become more important as a topic of investigation. The
manufacturing sector of Ethiopia has not been generally efficient. Given this state of affairs,
there is considerable interest in documenting the patterns and magnitudes of the problems that
the manufacturing sector in Ethiopia has to live with, so that appropriate policies can be
designed.
The main objectives of this study were to estimate individual technical efficiency of firms in the
Ethiopian grain mill products manufacturing industry and to identify the determinants of
technical efficiency in the industry under consideration. Towards this end, a combination of
purposive and random sampling techniques was used to select 45 sample firms (90 percent of the
total) from all over the country. In the course of data collection it was possible to collect cross
section data for the 1999/2000-production year only from 42 of the sample firms.
A Cobb- Douglas Stochastic Frontier production function model was used to evaluate the
technical efficiency of the sample GMPMFs. The model was estimated by using Maximum
Likelihood estimation procedure. The estimates of the model parameters were used to predict the
technical efficiency levels of individual firms in the sample observation. The results indicate that
technical efficiency levels of firms in the sample differ profoundly ranging from the smallest
18.98 percent to the highest 95.04 percent. The results further reveal that the mean technical
efficiency for the sample firms is 75.6 percent. This proves the fact that there is a wide room for
improvement. More precisely, on the average, output can be expanded by as much as 24.4
percent if appropriate measures are taken to improve technical efficiency.
A second stage analysis was also conducted to identify the determinants of technical
inefficiencies among the firms in the sample observation. A multiple linear regression model was
used for this part of the study. The predicted efficiency measures obtained from the estimated
stochastic frontier production function were regressed on a vector of firm-specific variables.
Among the explanatory variables, firm size and the existence of book of accounts were found to
be positively related to the technical efficiency level of a firm while higher number of products
and byproducts were found to have an adverse impact on a firm‟s technical efficiency level. It
was also found that publicly owned enterprises are less technically efficient than privately owned
ones.
Based on the results of the study some recommendations, which should be addressed both at
government as well as at firm levels, were made. In order to promote efficient utilization of input
resources, it is preferred to have few larger firms instead of having many of the smaller ones and
the government should speed up the privatization process and transfer the public firms in to
private hands. At the enterprise level, firms are strongly advised to maintain a complete book of
account and to specialize in producing a selected few products.
Keywords: Technical Efficiency; Grain Mill; Manufacturing Industry; Cobb-Douglas
Stochastic Frontier
11
12. Determinants of Household Food Security in Eastern Oromia,
Ethiopia: The Case of Boke District of Western Hararge Zone
Mulugeta Tefera, Bezabih Emana and Wolday Amha
Year: 2002
Abstract: A better understanding of factors affecting the status of food security at micro level is
required for the organization of technical research, the development of policies and for shaping
the direction of action for food self-sufficiency. Consequently, this study is expected to generate
ideas that would be useful to reveal the seriousness of the problem and identify the determinants
of household food security. To this end, investigation of the bio-physical, demographic and
socioeconomic characteristics of food secure and food insecure groups of farmers; identification
and examination of major causes of food insecurity and measuring food security status of
households; identification as to what kinds of the households are more food insecure or secure;
as well as assessment and analysis of the local coping strategies of the households in the district
was made in this study. With existence of high annual variability in food production mainly due
to unpredictable climatic conditions coupled with expanding human population and the lack of
access to off-farm opportunity the household food security status is worsening in the study area.
This study was therefore, envisaged to assess the determinants of food security at household level
and to identify local coping strategies practiced in the district. This study was undertaken in Boke
district of Western Harahge zone, Oromia National Regional State. A two stage sampling
procedure was used to select 10 Pas, and 254 sample respondents from a total of 21 PAs in the
district. The survey result revealed that about 73% of sample farmers were food insecure in the
district. Primary data referring to the year 1999/2000 were collected from sample respondents
through personal interview using structured questionnaire administered by 10 enumerators.
Furthermore, the study was supplemented by secondary data collected from various sources.
Data on demographic, socioeconomic and biophysical characteristics of the sample respondents
were presented, organized and discussed using various tools of both descriptive statistics and
econometric analyses. Attempts were made to look in to the specific characteristics of the food
secure and food insecure groups using univariate analysis (T-test and chi-square (2) tests of
significance). Logistic regression model was used to identify the continuous and discrete potential
variables capable of affecting the food security status in the district. The model results reveal that
among 14 explanatory variables included in the logistic model, 8 were found to be significant at
less than 10% probability level in the district. These significant variables include family size
(FAMSZ), number of oxen owned (NOOXEN), the use of fertilizer (FERTIL), food expenditure
pattern (FODEXPT), number of livestock owned (TLU), size of cultivated land (CULTAR), offfarm income (OFFIAE) and income per adult equivalent (INCAE). Furthermore, the model
results show that the logistic regression model correctly predicted 91% of the sample farmers,
81% of food secure and 95% food insecure groups. Thus, identifying analyzing, and
understanding those elements that are responsible for household food security in places like Boke
district needs urgent research undertakings and the results are believed helps to guide policy
decisions, appropriate interventions and integrated efforts to combat food security at the district
and household levels.
Keywords: Food Security; Rural Household; Logistic Regression
12
13. The Performance of Hides and Skins Marketing in the Amhara
National Regional State
Girma Admassu, Wolday Amha and Belay kassa
Year: 2002
Abstract: Following the structure - conduct - performance approach, the hides and skins
marketing system of specific sites Bahir Dar, Gondar, Dessie and Debre Berhan in the Amhara
Regional State were evaluated with the objectives to: (a) analyze the structure of hides and skins
market; (b) determine the extent of price transmission and thus the level of integration between
the secondary markets and reference market Addis Ababa; (c) determine the level of marketing
margins; and (d) identify the principal constraints to the marketing of hides and skins in the
different markets.
To accomplish these tasks a survey was conducted in the towns in which data and information
were collected from 24 hides and skins traders using a structured questionnaire. Secondary data
including a 60 month price series of skins of the secondary markets and the terminal market
Addis Ababa as well as a five year purchase of the same products of both primary and secondary
traders were collected from woreda agricultural offices. Likewise, various marketing costs of the
same traders were collected from concerned ministries and organizations. In addition, the
production potential and supply of hides and skins of households in the towns, which both can
contribute to the efficiency of the marketing system, were studied by sampling 400 household
heads from 12 Urban Dwellers Associations (kebeles).
In order to estimate the production potential and supply of hides and skins, descriptive
statistics was used. Concentration and Hirschman Herfindahl Indices were employed to measure
the concentration of markets and eventually structure of the same. Moreover, Co integration and
Error Correction Model was used to determine the level of integration between the secondary
markets and the reference market. On top of this, the level of marketing margins and costs were
analyzed under concurrent and time lag methods.
Household sampled results note that over 60 per cent of the household heads in the towns
produce skins of which greater than 75 per cent was supplied to the market. Concentration
analyses of the markets indicate that the markets under scrutiny were strongly oligopsonistic with
very narrow range of market concentration. Level 1 market analysis, which uses price data solely
show the presence of long run relationship between the markets. However, the same level of
analysis permitted spatial markets to be segmented in the short term. Transport charges of trucks
transporting hides and skins to the central market Addis Ababa, income tax, labour cost and
interest rate were costs that influenced the marketing margin as evidenced by the marketing
margin and marketing cost analyses.
Entry barriers in each stage such as capital and credit, information asymmetries and risk and
policy were among the candidates entered in the high concentration. Likewise, imperfect
competition, imperfect information and absence of markets to deal with risk were included in the
justification for the markets to be segmented in the short run. Hence, high market concentration,
barriers to entry in terms of capital and credit, low market integration and high marketing margin
in the study sites reveal that hides and skins marketing in the towns were inefficient under the
term considered.
Therefore, taking into account these factors in designing hides and skins marketing
improvement programme may help policy makers come up with policies aimed at ameliorating
the hides and skins marketing performance.
Keywords: Hide; Skin; Marketing; Price Transmission; Market Integration; Herfindahl
Indices
13
14. Cattle Marketing in Western Shewa
Getachew Bashargo, M.V.Srinivasa Gowda and Wolday Amha
Year: 2002
Abstract: This study investigates cattle marketing in western Shewa and identifies some of the
constraints and performances of cattle markets. The main questions that were dealt with include
how are the cattle marketing system organized? What are the key cattle marketing channels? How
have the structure and conduct of the market as well as the constraints affected the performance
of the markets? The study is based mainly on primary data collected from 2 primary markets, 3
secondary markets and 1 terminal market covering a sample of 11377 animals whose transaction
was completed on the market day. A 2-time traders' survey covering 218 traders from 6 markets
was conducted in order to gather detailed data. The major findings of the study are narrated as
follows.
1) Traders are the principal actors in inter-regional cattle movement. They handle about 31.55%
of the total cattle sold within 3 months.
2) At the sample market, cattle trade seems to be dominated by a small percentage of traders
(8%) who use command about 75% of the volume traded and the degree of inequality in the
market share at the primary, secondary and terminal markets level varies from market to market
i.e. from the total cattle sold, Shoboka, Gojjo, Guder, Ginchi, Olankomi and Kera shared, 2.45,
7.46 24.42, 45.09, 11.2 and, 9.33 percent respectively.
3) Generally, farmers do not have access to high quality market information upon which they can
base their marketing decisions. The information that farmers get in particular does not assist
them in deciding what types of cattle to produce and how much to produce. There is practically
no market extension service in the present system that guides farmers in their production and
marketing decisions.
4) The main constraints identified by traders and farmers are existence of numerous check point
taxes, high taxation in Guder and Ginchi markets which was not observed in other markets, lack
of financial credit, non-availability of transport services and high transport tariff, lack of market
service facilities at many locations and lack of market information.
5) Due to shortage of credit and transport services, smaller traders have low capital turnover.
This affects the competitiveness of the market. Smaller traders‟ capital is tied up in inventory
while waiting for 1-2 weeks to clear their animals whereas the relatively large merchants may exert
influence on cattle prices in primary and secondary markets in the absence of any demand from
such alternative buyers. Based on the above-mentioned findings, the study recommends the
following policy measures to improve the efficiency of the cattle marketing system
a) Abolishing all cattle movement check points and the present sales tax system on cattle;
conducting a detailed study to evaluate the merits and demerits of different taxation systems with
a view to designing an appropriate taxation system that could assist the local governments obtain
better tax revenue, promote interdependence between producing and consuming areas; enhance
smooth cattle flow and spatial integration; of cattle markets.
b) Devising appropriate credit policy to cater to the credit needs of cattle traders and providing
incentives for private investment in the cattle market system such as market service, and
transport facilities.
c) Establishing market information services by providing information on livestock production
prospects, temporal and spatial cattle flow, grading of animals, etc. To assist and properly guide
farmers in their production, transportation and marketing decisions, dissemination of relevant
market information through agricultural extension system should be considered.
d) Improving marketing infrastructure and facilities in the major regional markets.
e) Conducting research on the different components of the system including the behavior and
problems of farmers‟ brokers‟ retailers. Transporters, etc., in order to get better understanding of
the entire marketing system.
Keywords: Cattle; Marketing; Marketing Channel; Structure and Conduct
14
15. Financial Performance of Dry Coffee Processing Firms in Oromia: The
Case of Western Wallaga Zone
Gari Duguma and Teressa Adugna
Year: 2002
Abstract: Despite the expansion of coffee processing firms, there has been a serious doubt on
whether coffee-processing sub-sector has been performing well. In order to clear this doubt
periodic and systematic evaluation of the actual performance of coffee processing firm is
imperative, but currently lacking. This study was, therefore, designed to evaluate the financial
performance (profitability and efficiency) of dry coffee processing firms in western Wallaga zone
of Oromia National Regional State. Stratified random sampling based on probability proportion
to size method was used to select 24 dry coffee processing firms. A five-year (1996-2000) crosssection and time-series data were collected. The performance of the firms was analyzed and
interpreted using financial, profitability, efficiency and break-even analyses, besides the estimation
of econometric models of Cobb-Douglas production function and profit function.
Although both groups of firms had safe ratios, larger firms were slightly better off in
maintaining the solvency of their business and their financial position. The rate of return to
investment was extremely low, much lower than the interest rate (10 percent), in both groups of
firms, but higher for large-sized ones. The productivities of fixed capital and labour were higher
in the large-sized group. The break-even volumes of almost all dry coffee processing firms were
found to be less than their actual output. Even though there was under capacity utilization of
firms, the analysis showed that the firms were profitable at their actual level of output. The
Cobb-Douglas production function analysis has revealed that dry cherry, fixed capital and
working capital significantly influenced the output of dry coffee processing firms. The effect of
labour input was found to be insignificant. The sum of the significant coefficients was greater
than one implying that the sample dry coffee processing firms were characterized by increasing
returns to scale. Furthermore, results of profit function showed that three variables: fixed capital,
cost of causal labour and/or cost of auxiliary materials were found to be significantly affecting
variation in profit of sample dry coffee processing firms. The above findings have a number of
policy implications that would contribute to better financial performance of the processing firms.
Keywords: Coffee; Processing; Profitability; Efficiency; Cobb-Douglas; Profit Function
15
16. Management of Moisture Stress Risk in Crop Production in NorthEastern Ethiopia: The Case of Kalu District
Girma Tesfahun Kassie, Bezabih Emana and Niang Abdoulaye
Year: 2002
Abstract: The importance of the risk farmers‟ face due to the variability in the quantum, onset,
and cessation of rainfall in rain fed agriculture cannot be overemphasized. The rain calendar
determines how and when crops should be planted, how they should be managed, and how and
when they should be harvested. What is unknown by non-farmers regarding the uncertainty in
rainfall quantity and distribution in Welo is the way farmers perceive the risk and how they
manage it. As a result of having life long experience in agricultural business, farmers have
developed their own coping strategies against the uncertainties and risks associated with moisture
stress. The strategies farmers use to deal with the risky prospects and the justifications for each of
their measures are not well documented. Therefore, this research was proposed to identify and
analyze farmers‟ strategies to cope with the production risks due to the unreliable rainfall in Kalu
district of South Welo. After stratifying the district into two (less and highly moisture stressed) a
reconnaissance survey, a participatory rural appraisal, and a formal survey were conducted to
generate data needed for the study. Both qualitative and quantitative data were collected,
analyzed, and interpreted. The quantitative data were analyzed using decision tree, stochastic
dominance, and mathematical programming models. Having considered only the on-farm crop
related moisture stress risk coping strategies, the results of the data analyses for the two strata
showed a general picture that verifies the traditional risk coping strategies. The entire dependence
of the farming community on allocating and reallocating the limited farmland for different mixes
of crops vis-à-vis the moisture level the community anticipates was quite significantly comparable
with the outputs of the analytical tools employed. The results of this research generally show that
the farming community in Kalu is appreciably dealing with risk of moisture stress in a pertinent
and pragmatic way. The dynamism in land allocation to crops vis-à-vis the moisture level
anticipated shows that risk management is part and parcel of the household economy. Therefore,
any intervention to back up the farming community in Kalu in particular and in North Eastern
Ethiopia in general against the vagaries of nature needs to be holistic and well informed in this
regard.
Keywords: Crop Production; Moisture Stress; Strategy; Stochastic Dominance;
Mathematical Programming
16
17. Determinants of Farmers’ Willingness to Participate in Soil
Conservation Practices in the Highlands of Bale: The Case of Dinsho
Farming System Area
Paulos Asrat Shiferaw, Desta Hamito and Belay Kassa
Year: 2002
Abstract: The Ethiopian highlands are among those agricultural lands in Africa that are
threatened by accelerating land degradation. The major cause of land degradation is soil erosion.
Half of the highlands (about 27 million hectares) is significantly eroded and over one fourth
(about 14 million hectares) is seriously eroded. It is also estimated that over 2 million hectares of
farmland have reached the point of no return, and are unable to sustain economic production in
the future. In response to the extreme degradation of the soil resource base, new land
conservation technologies have been introduced in some degraded areas of the Ethiopian
highlands, mainly in campaigns and through food for work incentives. However, the technologies
failed to win acceptance by the land users. So far, conservation projects failed to consider the
land users‟ socio-economic, demographic and technical factors from their very inception. In
order to design a useful plan of action it is necessary to understand local peoples‟ response to soil
conservation plans. Therefore, the major concern of this study is to identify determinants of
farmers‟ willingness to participate in soil conservation practices with the aim of proposing
measures for development of soil conservation projects that address farmers‟ socio-economic,
demographic and institutional factors. It is also aimed at assessing farmers‟ perception of erosion
hazards and their willingness to pay. The study was conducted in Dinsho Farming System Area
of the Bale Highlands, southeast Ethiopia. A total of 100 farmers had been surveyed in the study
area in September and October, 2001 to generate the data used in the study. During the survey,
Contingent Valuation Method was also applied to elicit willingness to pay for soil conservation
practices. Descriptive statistics such as mean, standard deviation and percentages were used to
describe sample respondents in terms of some desirable variables. A binary logit model was
employed to analyze determinants of farmers‟ willingness to participate in soil conservation
practices. A total of seventeen explanatory variables were included in the model of which six
were significant at less than 5% probability levels. Education level of the household head,
perception of the soil erosion hazard, size of farmland shared, attitude, size of non-cropland and
awareness were highly important in influencing willingness to participate in soil conservation
practices. Therefore, taking these factors into account in planning soil conservation measures
may help policy makers to come up with projects that can win acceptance by land users. This
study also attempted to assess farmers‟ willingness to pay money and spend time on soil
conservation practices by applying the CVM. The result showed farmers‟ willingness to pay
money for soil conservation practices was very low as compared to their willingness to spend
time. Hence, if soil conservation projects are to make farmers participate, they should target labor
contribution than financial contribution.
Keywords: Soil Conservation; Participation; Willingness to Pay; Logit, CVM
17
18. Women’s Workload and their Role in Agricultural Production in
Woreda and Non-Woreda Basic Service Areas: The Case of Yem
Hiywot Menker, Desta Hamito and Wudnesh Hailu
Year: 2002
Abstract: A study was conducted in Yem special woreda of the Southern Nations and
Nationalities Peoples Regional State. It emphasized on the effect of introduction of labor and
time saving technologies on the pattern of allocation of time by women for household activities,
backyard gardening, enset processing and plantation, and farming activities. The t statistic and
regression were used to analyze and summarize the data. Results from the t-test revealed that
there was a significant difference in time use with respect to grinding grain, fetching of water and
production of roots and vegetables between WIBS, where the intervention was made and
NWIBS, without any of the intervention. The result of the multiple regression analysis showed
that in WIBS male labor and farm size were found to be the most important factors in
influencing output, whereas in NWIBS it was only male labor. The elasticity of the factors
influencing output were found to be 0.57, 0.11, 0.04, -0.05, 0.38 for male labor, female labor,
number of enset plants processed per year, livestock ownership and farm land ownership
respectively in WIBS. In NWIBS, the elasticity were 0.46 for male labor, 0.32 for female labor,0.04 for number of enset processed in a year, -0.09 for livestock ownership, and 0.038 for farm
land ownership. Households in WIBS were found more efficient in allocating the resources like
male labor and farm land. Whereas in both of the areas, female labor was found to be used
inefficiently implying that the spare time gained as a result of the intervention was not applied to
agricultural activities as expected.
Keywords: Women’s Workload; Yem Special Wereda; Labor and Time Saving
Technologies
18
19. Impact of Incentive System on Soil and Water Conservation Activities
in Ambassel Area South Wollo, Ethiopia
Asres Kebede Desta and Abebe H/Gabriel
Year: 2003
Abstract: This study is conducted in one of the most degraded highland part of Ethiopia
(Ambassel). Natural resource conservation draws the attention of many development-oriented
organizations as the problem extended to the available and most productive lands since its
implication in food production is adverse. The programs working around soil and water
conservation activities in the area are Food for Work, Employment Generation scheme and
community participation works. Comparative assessment of these programs is made in terms of
level of community involvement; the impacts created by the incentive mechanisms employed
with farmers‟ attitudes and performance of the physical conservation activities/structures. CostBenefit analysis for efficiency comparisons taking 15 and 25 years of planning horizons, Ordinal
logit model to explain sustainability of structures and farmers adoption levels and finally multiple
regression analysis of some variables to look in to the factors which determine replicability of the
activities in the respective programs are the major methodologies followed The Results show that
those activities or structures constructed under a participatory planning approach and effective
follow up or supervision can have the earliest pay-back period whether incentive are attached or
not in the form of foods mainly. Furthermore, efficiency in labour use through better
organization, working methods and motivations is achieved in FFW followed by EGS activities,
which is explained by Quality physical structures. Also attitude evaluation indicates that the
majority of the farmers‟ irrespective of the programs they represent prefer FFW the most and
also cumbersome and inefficient activities are relatively dominant in participatory activities.
Keywords: Soil; Water; Conservation; Incentive; Impact; Cost Benefit Analysis; Ordinal
Logit
19
20. Adoption of Improved Sweet Potato Varieties in Boloso Sore Woreda,
Southern Ethiopia
Endrias Geta, Legesse Dadi and Teressa Adugna
Year: 2003
Abstract: Increasing population pressure and small land holdings require increasing productivity
per unit area or time. The contribution of improved agricultural technologies to enhance
productivity per unit area has been advocated by agricultural research and development workers
for a couple of decades. Root crops particularly sweet potatoes have greatest advantage in
achieving such goal because of their high productivity per unit area or time. Adoption and wider
use of improved varieties of sweet potato is of crucial importance for areas where there is high
population pressure and food insecurity. The major concern of this study was therefore, to
empirically examine factors affecting adoption and intensity of use of improved sweet potato
varieties in Boloso Sore woreda in Southern Nations, Nationalities, and Peoples' Region. The
study was based on the data obtained from randomly selected farm households. Six peasant
associations (PAs) were randomly selected from the woreda and a total of 120 randomly selected
households were interviewed for this study. The survey was conducted by administering
structured questionnaire during October-November in 2002. In addition, secondary data
collected from relevant sources were used to assess the farming system of the study area. Tobit
model was used to identify factors affecting adoption and intensity of use of improved sweet
potato varieties. Fourteen explanatory variables were included in the model out of which eight
were found to be significant. Farm size, extension contact, and distance from research center to
farms were the most important factors influencing adoption and intensity of use of improved
sweet potato varieties. The other significant variables include farming experience, value of
livestock, and farmers' perception of yield, maturity period and establishment performance of
improved varieties. The results suggest that strengthening research and extension activities with
due attention to improve yield potential, shorten maturity time and better establishment
performance of the crop.
Keywords: Adoption; Improved Varieties; Sweet Potato; Tobit
20
21. Adoption of Crossbred Dairy Cows in Arsi Zone: The Case of Tiyo and
Lemu-Bilbilo Woredas
Haji Biru, Teressa Adugna and Legesse Dadi
Year: 2003
Abstract: Ethiopia has the largest number of livestock population in Africa. Contrarily, the
productivity of the country‟s livestock sub-sector is much below the productivity level realized in
most countries in Sub-Saharan Africa. Poor genetic performance, feed shortage, and poor
veterinary services have characterized the sector. These in turn have resulted in low productivity
of the sub-sector. National research system and different international institutions have been
trying to overcome these problems. Through their efforts, considerable number of technologies
has been generated. However, the adoption of these technologies by small-scale farmers has been
very limited. According to various theoretical and empirical studies, a wide range of economic,
social and institutional factors influence adoption of agricultural technologies among farmers. At
the same time, the relevance and significance of these factors differ over regions and localities. A
better understanding of the role of factors affecting farmers‟ decision on technology adoption
would then help to design relevant policies and procedures that could fasten the development
and diffusion of more appropriate technologies.
With the purpose of contributing towards this end and lack of such study in the area, this
investigation was undertaken in two selected woredas of Arsi zone of Oromiya National Regional
State. It has examined the influence of different factors on farm households‟ adoption decision of
crossbred dairy cows and quantified the relative importance of those factors significantly
associated with the adoption of the technology. In the process both secondary and primary data
were used to meet the objectives of this study. Secondary data were obtained from various
relevant documents, while primary data were collected from farm households. A two-stage
random sampling procedure was used to draw sample farm households. The selection of peasant
associations using a simple random sampling method was followed by the selection of 120 farm
households employing proportion to size random sampling procedure. The required data were
collected through personal interviews, based on a structured questionnaire. Descriptive analysis
was used to examine and understand the socioeconomic situation of sample farmers. The survey
result has revealed that 40% of the sample farmers adopted crossbred dairy cows during study
year. T-test and Chi-square test were used to examine statistical differences between adopters and
non-adopters for different continuous and dummy variables, respectively. Logistic regression
model was estimated to identify factors affecting farm households‟ adoption decision of
crossbred dairy cows. Among twelve explanatory variables included in the estimated logistic
model, ten of them were found to be significantly related to farm households‟ adoption decision
of the technology. The estimated model correctly predicted 87% of the sample farmers into
adopters and non-adopters. Formal education, total local livestock holding, the distance between
farmers‟ residence and market, family size, total cultivated area, access to credit, access to artificial
insemination, access to bull service, farmer‟s leadership position in local farmers‟ organization
and extension contact were found to be significant variables in the adoption decision of
crossbred dairy cows. The probability of adoption of crossbred dairy cows for an average farmer
in the study area was estimated at the sample means of the continuous explanatory variables and
at the most frequent values of the dummy variables in the model and was found to be 0.20.
Sensitivity analysis has revealed that accesses to artificial insemination and bull services increase
the probability of adoption of the technology by 0.72 and 0.65, respectively. Lack of access to
credit and extension services decreases the probability of adoption of the technology by about
0.16 and 0.15, respectively. A decrease in market distance by 1 km increases the probability by
0.05. The findings of the study imply that strengthening and expanding artificial insemination and
bull services, strengthening extension service, provision of credit facility and the development of
marketing infrastructure would significantly improve the adoption of crossbred dairy cows.
Keywords: Adoption; Crossbred; Dairy Cows; Logit Model
21
22. Impact of Technology on Wheat Production in Bale Highlands: The
Case of Smallholder Farmers
Mengistu Ketema and Belay Kassa
Year: 2003
Abstract: This study was undertaken to examine the impact of technological innovations on
wheat production; to decompose the total change in wheat output resulting from the
introduction of new technologies into its constituent parts; to estimate the value of inputs saved
and extra volume of output obtained with the new wheat technologies; and to characterize the
production systems in the study area. The data for this study were collected from 60 old variety
growers and 62 new variety growers randomly selected from 12 PAs of Sinana-Dinsho and
Gassera districts in Bale highlands. Cobb-Douglas production function was used to estimate the
regression coefficients of six explanatory variables under old variety growers, new variety
growers, and pooled data cases. Output decomposition model derived from Cobb-Douglas
production function was applied to decompose the total change in output into its constituent
parts. Descriptive analyses were also employed as deemed necessary. The econometric results of
this study indicate that, out of 55 per cent of the observed productivity difference between old
and new variety grown plots, technological change and change in associated input levels
contribute about 24 per cent and 31 per cent, respectively. Of the 31 per cent increment
attributed to input use levels, an increased use of herbicides and fertilizers caused the biggest
jump in the productivity of improved wheat variety (15.5% and 11% respectively). It is also
estimated that about Birr 279 per hectare in the study area could be saved due to the new
technology. Putting it differently, about 400 kg per hectare of extra wheat output could be
obtained due to improvement in the varietal technology. The difference between old and new
variety growers with respect to socioeconomic characteristics, technology utilization and farm
characteristics, input utilization and procurement, and institutional factors were revealed from
descriptive analysis. In addition, the study indicated that the major crop production constraints in
the areas were high price of fertilizer, low output price, shortage of HYV seeds, crop diseases,
weed infestation and institutional factors. Likewise, shortage of animal feeds, absence of
improved breeds, and inadequacy of veterinary services were cited as the major livestock
production constraints in the study areas. Based on the results obtained, the following policy
implications are found to be of paramount importance: Exploiting the full potential of the new
varieties using recommended input levels; promoting alternative soil fertility maintenance
techniques; improving the seed supply system; promoting efficient and competitive output
markets coupled with favorable repayment schedule of credit; strengthening the research and
extension systems; encouraging coordinated efforts among various actors in agricultural
development; and strengthening the technology instrument in rural development and poverty
reduction strategy of the country.
Keywords: Impact; Cobb-Douglas; Technological Innovations; Wheat
22
23. Patten of Credit Use and Its Impact on Small Farmers Income: A
Study in Dire Dawa Area, Eastern Ethiopia
Anbes Tenaye Kidane and M.V.S Gowda
Year: 2003
Abstract: Small farmers in Ethiopia cannot implement improved agricultural technologies out of
their own funds. They need credit to implement the new technologies. However, the
achievement of credit is controversial. No other solution than studying the impact of credit on
gross farm income and the livelihood of the society is important. It has been reported in various
studies that micro finance has very beneficial economic and social impacts. Others argue that it
can be an instrument of defaults and stagnation rather than an instrument of progress. Therefore,
the major concern of this study is to assess the impact of credit on gross farm income and the
living standard of the small farmers, to identify factors affecting credit use, and to analyze the
pattern of credit use by small farmers. For the purpose of this study primary data were collected
from purposively selected four PAs. A total of 180 households comprising 110 credit users and
70 non-users were included in the final analysis. In addition, secondary data were collected from
relevant organizations and pertinent documents. Descriptive statistics such as mean, standard
deviation and percentages were used for analyzing the data. Moreover, t-test and - test were
employed to compare credit users and non-users with respect to the hypothesized and other
related variables. A binary logit model was employed to examine factors influencing agricultural
credit use. In this regard, a total of eleven explanatory variables were included in the empirical
model of which five were significant, while Cobb-Douglas production function was employed to
analyze the impact of credit on gross farm income. Variance inflation factor (VIF) and the
coefficient of contingency were calculated to detect multi-collinearity and association among the
continuous and discrete variables, respectively. Fertility status of the soil, total household
expenditure, and frequency of contact of DA were highly important in influencing agricultural
credit use as evidenced by the model output. The other critical variables include farm size and
gross farm income. While cultivated area, number of draft oxen, credit and total livestock unit
were highly important factors of production contributing to gross farm income. The other critical
variables include family labour and frequency of contact of DA. Therefore, considering of factors
affecting credit use, impact of credit on gross farm income and livelihood of the farmer are vital
in providing information to undertake effective measures with the aim of extending loans and
increasing access to credit.
Keywords: Impact; Credit Use; Farm Income; Logit; Cobb-Douglas
23
24. Non-Farm Employment and Farm Production of Small Holder
Farmers-A Study in Edja District of Ethiopia
Destaw Berhanu, M.V. Srinivasa Gowda and Ayalneh Bogale
Year: 2003
Abstract: Poverty in rural areas of Ethiopia has its root, in low productivity, landlessness and
erratic weather dominant areas. Small and fragmented farm size coupled with low level of
technology, soil degradation and poor infrastructure, have reduced the capacity of small holder
farmers to undertake long term investment on the farm. Agriculture is unlikely to absorb all the
new entrants in to the labor market. Therefore non-farm activities provide employment right in
their own and also supplement agricultural incomes. Non-farm employment provides an
important potential source of income for many landless and near-landless households in
Ethiopia. In view of the rapid population growth and scarcity of arable land, the role of the nonfarm sector in absorbing new entrants into the labor force can hardly be over- emphasized. This
study examines the determinants of participation in non-farm activities. The study also describes
the characteristics of the farm and non-farm activities in the area. This study is motivated by the
belief that the constraints of the farm sector cannot be overcome by simply concentrating on the
farm sector alone; inter-sectorial issues and farm and non-farm linkages need to be addressed as
well. In the course of this study primary data were collected from 140 households out of which
80 were engaged in both farm and non-farm activities but the rest 60 sample households were
engaged only in farm activities. In this study two stage sampling technique was employed. In the
first stage four PAs were selected randomly. Households in the sample PAs were stratified as
non-farm practitioners and non-practitioners. From the stratified households sample respondents
were selected using proportional- to-size probability method. Descriptive statistics such as mean,
standard deviation and percentage were used to describe sample respondents in terms of some
desirable variables. A binary logit model was also used to analyze the determinants of
participation in non-farm activities. Eleven variables were included in the model of which five
variables were found significant at less than 10 per cent probability level. Age, education, credit
use, distance from road and distance from market were found to be highly important variables
influencing participation in non-farm activities. Therefore, these factors need to be taken into
account in planning of rural farm and non-farm activities by policy makers to come up with
projects that can win acceptance by the community.
Keywords: Non-Farm Employment; Farm Production; Logit Model
24
25. Dimensions and Determinants of Food-Insecurity among Rural
Households in Dire Dawa, Eastern Ethiopia
Abebaw Shimeles Alemayehu and Ayalneh Bogale
Year: 2003
Abstract: The struggle to achieve food security at the household level in the rural areas of
Ethiopia dated back a long period. Yet remained as a challenging goal. To intervene the problem,
the need disentangle the interwoven factors which influence food insecurity, and to understand
the livelihood strategies of the rural households have got paramount importance to development
practitioners and policy makers to find the way out. In light of this, examination of the socio
economic characteristics of the food secure and insecure; identification of factors influencing
food insecurity; estimation of the extent of food insecurity; and assessment of livelihood
strategies of the rural households were undertaken in the study. In this study two-stage
probability proportional to size sampling procedure was employed to select 5 PAs and 115
sample households out of 29 PAs of the study area. For the purpose, survey questionnaire was
prepared to collect the primary data from the sample households. To analyze the data, descriptive
statistics like mean, standard deviation, percentage, and frequency distribution were used to
describe the socio economic characteristics of the sample households. In addition, t and chisquare tests were used to compare food secure and insecure sample groups with respect to the
explanatory variables. A binary logit model was used to identify the determinants of food
insecurity. A total of thirteen explanatory variables, 10 continuous and 3 discrete, were included
in the empirical model. Out of these, nine were found to be statistically significant. These
variables include family size (FASZ), annual income (TOTANINC), amount of credit received
(AMDT), irrigation use (IRGN), age of household head (AGE), status of education (EDUC),
cultivated land size (CLSZ), livestock ownership (TLU) and number of ox owned (NUOXEN).
To estimate the extent of food insecurity FGT index was used. Accordingly, the incidence of
food insecurity, food insecurity gap and severity of food insecurity were found to be 75.7 percent,
30.7 percent and 15. 04 percent, respectively. The livelihood strategies of the rural households
were also found to be diversification and integration of activities, and migration is also adopted
when the shock to their livelihood becomes very serious. Therefore, consideration of dimensions
and determinants of food insecurity; and the livelihood of the rural households is important
because it provides information that would enable to undertake effective measures with the aim
of improving rural livelihoods in general and food security in particular.
Keywords: Food Insecurity; Livelihood; Logit Model
25
26. Influence of Land Size on Household Food Security: The Case of
Deder District of Oromiya Region
Tesfaye Berhanu and M. V. Srinivasa Gowda
Year: 2003
Abstract: Due to natural calamities, inappropriate development strategies, and static land tenure
policy the problem of food shortage in the country could not be effectively addressed. Therefore,
the population of Ethiopia in general and that of the study area in particular faced chronic foodinsecurity and poverty for the last three decades. This situation is exacerbated by conflict and
institutional environment, which provide limited opportunities for vulnerable groups to engage in
agricultural production or otherwise secure access to food. As result, about 50 percent of the
population is food-insecure. Deder, one of the districts of Eastern Hararghe Zone of Oromiya
region, shares all the problems mentioned above and has been identified as one of food-insecure
areas of the country. The present study seeks to characterize the land tenure system and
household food security, to identify factors that best discriminate food-secure households from
food-insecure households, and to analyze the influence of land size on household food security.
Simple descriptive, univariate and multivariate statistics were used to analyze and report the
results, while mean, standard deviation, and percentage were used to describe the sample farmers,
t- and chi-square statistics were applied to measure continuous and discrete variables, respectively
in differentiating food-secure and food-insecure households. Variance inflation factors and
coefficients of contingency were used to detect multicollinearity and association among the
continuous and discrete variables respectively. Variables, which have passed the t- and chi-square
tests, were entered into the linear discriminant and multiple regression analysis.
The study found that eight socio-economic factors (family size, land size, herd size, agroecology, use of fertilizer, use of irrigation, food aid, and income from crop produce) determine
household food security. Among these, income from crop produce, family size and land size are
the most important. The model results revealed that land size is an important variable that
influences household food security directly and it also influences the same through other
variables. Hence, most of the other determinants of food security of the study area are associated
directly or indirectly to land size. Thus the key policy implication is that as land size decreases
food security status of the household declines. The study concluded that the Gini concentration
ratio for land distribution in the study area was 0.3. This result suggested that the distribution of
land is fairly equitable; hence, redistribution does not solve the problems of small land holding.
Farm intensification is one of the possible options to be undertaken. To intensify cultivation,
farmers' household incomes need to be improved; in order to improve household incomes; offfarm opportunities need to be created.
Keywords: Land Size; Food Security; Land Tenure; Linear Discriminant
26
27. Analysis of Agricultural Land Size Fragmentation and Its Effects: The
Case of Highlands of North Shawa, Oromiya, Ethiopia
Mebratu Kifle, Karin Gaesing and Bazabih Emana
Year: 2003
Abstract: Agriculture is the mainstay to about 85 percent of total population in Ethiopia and
dominated by smallholders. Farmland is the basic agricultural resource and is becoming
constraint in agricultural production. Diminution of farm and parcellization of fields are common
under all tenure systems and in every part of the country. Each community is unique in land
fragmentation and its effects on farm productivity. Hence, this study was initiated to serve as a
basic source of information about the district specifically and provide additional knowledge
concerning land fragmentation and its effects to the already existing ones. The specific objectives
of the study were to examine the nature of land fragmentation, to assess the impact of land
fragmentation on land productivity and define minimum farm size per household that can
support subsistence level. The study made use of secondary and primary data sources. In primary
data collection structural questionnaire was employed after sample households were selected in
two stage sampling technique. Five PAs were randomly selected in the first stage and 120 sample
households‟ heads (male and female headed) were randomly and proportionately selected in the
second stage of the sampling. Linear and Cobb-Douglass production functions were selected and
used in the analysis of impact of agricultural land fragmentation on farmland productivity and to
determine minimum farm size, respectively. According to the sample survey result average family
size was 5 adult equivalents with average farmland holding of 2.00 hectares. Average farmland
holding was formed from 3.7 parcels scattered over areas with average size of 0.54 hectare. The
regression results show that agricultural land fragmentation parameters (average distance of
parcels from homestead, number of parcels owned and average size of parcels) have no
significant impact on farm productivity. Size of cultivated land, oxen power and operating capital
are found to be the limiting factors of production in the study area. Average farmland size has
been diminishing to the extent that about 21 percent of the sample households (100 households)
owned farmland size below minimum farm size determined (1.2 hectares), the size of land
estimated to generate minimum income required from crop farming (1604 ETB) for an average
family to subsist. It was also understood that parcellization wastes farmland by making many
borders, which could otherwise be used for farming. Moreover, small size of parcels hinders soil
and water conservation activities to take place by forming many owners who may not agree at a
time to undertake the activities that need collaboration of farmers in a watershed. Land
fragmentation has beneficial effects in reducing risks through the spatial diversification of
activities and to have access to different types of land. The advantage of land fragmentation
should not be overlooked if an attempt to reverse its problems is to be pursued. Female headed
households generated lesser net farm income than male headed households, because they had
lesser access to some of the factors of production. Farm households who totally leased out their
land also generated lesser net farm income than farm households who did not lease out, because
they had lesser access to some of the factors of production.
Keywords: Land Fragmentation; Productivity; Cobb-Douglas
27
28. Factors Affecting the Economic Status of Target Groups of Micro
Finance Institutions: The Case of Oromia Credit and Saving Share
Company – Kuyu Branch
Kebede Duga Chaka and Bezabih Emana
Year: 2003
Abstract: Agriculture is the mainstay of the country‟s economy, foreign exchange earnings and
domestic consumption. This sector is given attention by the government with ADLI. One of the
economic policies of the country, at macro level, is introduction of MFIs in the country under the
umbrella of National Bank of Ethiopia. These MFIs have been operating within the country for
the last seven years, targeting at the contribution towards efforts being made to alleviate poverty.
Within these years, the institutions have been doing their best towards the achievements of the
general objective(s) they set. Within the broad objectives of MFIs of the country, the aim of this
study was to assess the impacts of MFIs among their target groups and identification & analysis
of factors contributing to the achievements/performances of these institutions in general and
that of OCSSCO in particular. To achieve its objectives, descriptive analysis, a binary logit model
as well as sensitivity analysis was applied in the study. The study found out that, in general terms,
the clientele of the company brought about an improvement in their economic status, which can
be reflected in their annual income, with in the five years continuous stay in client ship with the
company. In specific terms the study revealed that there were clientele whose economic and
social status were improved and also who did not. Proper utilization of the requested loan as per
the set agreement between the two parties, total land holding, income as a result of engagement
in off-farm economic activities, shortage of draught animals, market distance, average loan size,
appropriateness of loan disbursement schedule, appropriateness of loan term/installment
schedule, access to extension services, total family size, and loan provision as requested were
found to be significant variables influencing the economic and/or social status of the clientele. As
concluding remarks and policy implications, the study focused on the importance of paying
attention to supervision/follow up of the loan, capacity buildings of the clientele on new and
feasible income generating economic activities, marketing services, resource management and
utilization capacity and technical knowhow on loan utilization, loan disbursement and loan
installment/term schedules, and strengthening horizontal integration with GOs, for extension
services, and NGOs for non-financial services. Moreover, the study recommended that the focal
MFI be expected to make more and more efforts to have more female clientele, diversify its
products, purify the copied manual in relation to socioeconomic and cultural aspects of people of
the region in which it is operating.
Keywords: Micro Finance Institution; Impact, Performance; Logit Model
28
29. Resource Allocation under Risk: The Case of Smallholder Farmers in
Arsi-Negele
Mengistu Nigussie, Niang Abdoulaye and Legesse Dadi
Year: 2003
Abstract: Agriculture more than other activities is prone to risk. Farmers repeatedly make
decision in the face of considerable uncertainty about planning period ahead of them. This will
expose them to yield risk, price risk and financial risks. The purpose of this study was to examine
the possibility of increasing farm income through optimal allocation of resources under risk, and
to see the effect of modern inputs like high yielding variety and fertilizer on risk, and to work out
risk efficient sets of farm plans for a representative farmer based on cross-section data drawn
from farm level. Primary data were obtained from 120 farmers who were selected using two stage
random sampling technique. The farm plans are worked out in whole-farm context in which a
farm family is considered as an independent decision making unit and the model incorporates
economic activities that farmer can undertake to increase his level of welfare. The risk efficient
plans are derived using quadratic risk programming model. To assess the feasibility of introducing
improved variety, a representative farm for Arsi-Negele was developed. Model results show that
there is a divergence between the actually realized farm income on the farm and those which
have been realized if the resource at the disposal of the farmers are allocated optimally both
under risk and risk neutral situation. In other words, the current allocation of resources is suboptimal which indicates that farmers in the study area are not necessarily maximizing profit. They
rather behave in risk averse manner. The subsistence orientation coupled with the risk aversion
behavior of the farmer result in sub-optimal use of scarce resources. The model results show that
there is possibility of increasing farm income through optimal allocation of resources. Moreover,
the results show that whenever farmers grow their crops without fertilizer their income and risk
decreases. Whereas when they grow crops applying fertilizer their income improve accompanied
by increase in risk. This indicates there is risk return trade-offs. Therefore, farmers are advised to
adopt crop mixes from the E-V sets worked out depending on their preference for risk. Model
results shows that introduction of improved varieties (maize and wheat) is profitable. Improved
technologies have increased farm income substantially as compared to local/ traditional
technologies. However, this improvement in gross income is at the expense of higher risk
associated with gross income when improved technologies are used. The implication of adopting
the cropping pattern obtained from the improved varieties is that resources allocated to
production of current crops have to be reallocated to the production of improved variety crops
in diversified way. Diversification of farming into livestock rearing provides an opportunity to
augment farm income and reduce income risk. The model results suggest that livestock
production not only increase the level of expected income but also reduce the magnitude of
income risk. Finally, introduction of improved varieties and livestock production brought
increased employment of farm labor.
Keywords: Resource Allocation; Risk; Farm Income; Quadratic Risk Programming
Model
29
30. Impact of Community Managed Irrigation on Farm Production
Efficiency and Household Income: The Cases of Woliso and Wonchi
Districts of Oromiya Regional State
Desta Beyera Sefera, Legesse Dadi and R. S. L. Srivastava
Year: 2004
Abstract: Agriculture is the mainstay of the country's economy and the major source of foreign
exchange earnings and domestic consumption. To improve the prevailing low level of production
and productivity the use of yield improving inputs is of paramount important. As the potential to
increase production by bringing more resources into use became more and more limited, the
efficiency with which the farmers use available resources has received the utmost attention. This
being the case, in this study, an attempt was made to examine the impact of irrigation on income
and technical efficiency of households. The study was conducted in two districts of Southwest
Shewa Zone of Oromiya region. Survey data collected from Weliso and Wenchi district during
the 2003/2004 crop season were used in both the descriptive and econometric model analysis.
The survey data collected considered two groups of farm households, irrigation users and
irrigation non-users households. Multiple linear regression model was used to estimate
determinants of household income. Furthermore, stochastic frontier production function with
farm specific technical inefficiency variables was used to estimate technical efficiency. The
findings indicate that farm size, amount of credit received, education level of household head and
access to irrigation have got significant influence on household income. Among the input
variables, farm size and capital were found to significantly influence agricultural output. Access to
irrigation was found to significantly improve the technical efficiency of household. The whole
sample mean technical efficiency of irrigation user and irrigation non-user households was 78%.
This implies that agricultural output can be increased on the average by 22 percent if technical
efficiency of farming households improved to obtain the maximum attainable level of output.
Keywords: Impact; Irrigation; Production Efficiency; Income; Stochastic Frontier
Production Function
30
31. Analysis of Technical Efficiency of Wheat Production: A Study in
Machakel Woreda, Ethiopia
Fekadu Gelaw Mersha, Bezabih Emana and R.S.L. Srivastava
Year: 2004
Abstract: The thesis analyses the efficiency of farmers in the production of wheat in Machakel
District in East Gojjam, ANRS using cross sectional data collected in 2003 production year.
Cobb-Douglas functional form is used to estimate the efficiency in wheat production. The test
result indicates that there is inefficiency in the production of wheat in the study area and the
relative deviations from the frontier due to inefficiency is 92 per cent. The estimation of the
frontier model with inefficiency variables shows that the mean technical efficiency of farmers in
the production of wheat is 0.710. This implies that production can be increased by 29.0 percent
given the existing technological level. Thus currently farmers are not using production inputs
efficiently in such a way that they give their maximum potential. This inefficiency however, can
be improved if factors that determine efficiency level of farmers in the production of wheat in
the study area are identified. The estimated stochastic production frontier model indicates that
area of the plot, amounts of DAP and Urea fertilizers and amount of seed are significant
determinants of production level. The positive coefficients of these parameters indicate that
increased use of these inputs will increase the production level to a greater extent. Hence given
these inputs are used to their maximum potential, introduction and dissemination of these inputs
will enhance the production level of wheat in the area. The estimated SPF model together with
the inefficiency parameters shows that fertility status of the plot, age, age square, land ownership
status, training, number of plots (fragmentation) family size and livestock significantly determine
efficiency level of farmers in wheat production in the study area. The negative coefficient of
fertility status of the plot, age, land ownership, training and extension means these factors are
important in determining the existing efficiency of farmers positively and significantly. While the
positive coefficients of age square, family size, fragmentation and livestock indicate that the
increments in these factors increase inefficiency. The analysis also implies that land policy that
would increase the ownership right or policy that reduce the proportion of land held under
sharecropping arrangement would ultimately lead to increased level of efficiency. In addition
ways should be sought to minimize the existing level of fragmentation. Policies that tend to bring
fragmented plots into few consolidated plots would increase efficiency of farmers. Moreover,
family planning programs to reduce family size in the long run will have positive effect in
reducing the level of inefficiency of wheat production. Presently fertile plots are used efficiently
than infertile ones implying that farmers are not producing near the frontier in these marginal
plots. Thus agricultural development programs that would improve the fertility of land through
improved land management practices would increase technical efficiency of farmers in the area.
Keywords: Technical Efficiency; Wheat; Cobb-Douglas Function
31
32. Gender Diffrence and Its Impact on Agricultural Productivity: The
Case of Wenchi District in South West Shoa Zone, Ethiopia
Wakweya Tamiru Yada, Bezabih Emana and Milkesa Wakjira
Year: 2004
Abstract: The study examined the gender difference and its impact on agricultural productivity in
Wenchi district of south west Shoa zone, located at 125 km south west of Addis Ababa, between
Ambo and Welliso towns. The specific objectives were to assess the extent to which the
agricultural production system is gender oriented; to examine access and control over productive
resources; and to estimate men‟s and women‟s productivity in agriculture.
Cross-sectional data collected from a total of 140 respondents were used in this study whereby
65 were female headed and 75 were male headed households. The data were analyzed using
Statistical Package for Social Science (SPSS). Descriptive statistics such as frequency, mean,
percentage, t-test and chi-square were used to summarize and compare the information between
the two groups. Moreover, Cobb-Douglas (CD) production function was used to estimate the
productivity difference in agriculture between male and female headed households.
Results of the study showed that male headed households (MHH) own more of productive
resources such as land, livestock, labour and other agricultural inputs as compared to female
headed households (FHH). Moreover, the estimate of CD production function shows that
livestock, herbicide use, land size and male labour were statistically significant for MHH while
livestock, land size, herbicides use and female labour were significant variables for FHH.
The comparison of the marginal value product (MVP) with the factor cost showed that MHH
could increase productivity using more herbicides and male labour while FHH could do so by
using more herbicides, male and female labour. The agricultural productivity difference between
MHH and FHH was about 68.83% in the study area. However, if FHH had equal access to the
inputs as MHH, gross value of the output would be higher by 23.58% for FHH. This may
suggest that FHH would be more productive than MHH if they had equal access to inputs as
MHH.
Based on the results obtained, the following policy implication can be drawn: accessing FHH to
inputs that increase the productivity of agriculture such as herbicides, livestock and male labour;
increasing the productivity of land; and introducing technologies that reduce the time and energy
of women especially for enset processing.
Keywords: Impact; Gender; Agricultural Productivity; Cobb-Douglas
32
33. Determinants of Use of Soil Conservation Measures by Smallholders in
Jimma Zone: The Case of Dedo District
Yitayal Anley Mengistu, Ayalneh Bogale and Abebe Haile Gabriel
Year: 2004
Abstract: Economic development in Ethiopia is hampered by many factors among which land
degradation in the form of soil erosion is the major one, which is threatening the overall
sustainability of agricultural production of the country. Soil erosion in most part of Ethiopian
highlands has reached the point where it will become increasingly difficult even to maintain the
present day of agricultural production of basic food which is already insufficient in many regions
of the country. Currently, in response to the extensive land degradation, Ethiopia, through the
ministry of agriculture, is undertaking some effort to mitigate the problem of soil erosion in some
degraded area of the highlands including Dedo district, Jimma zone. Therefore, the objectives of
this study were to examine how small holder farmers in Dedo district, Jimma zone are trying to
meet the challenge of soil productivity decline because of soil erosion and what determines to
undertake soil conservation investment which enhance sustainable productivity of farming. Both
primary and secondary data were collected for this purpose. The primary data were collected
from 101 sample households possessing 204 farm plots from 5 kebeles in Dedo district
proportionately and randomly. Tobit model analysis at plot level was used to estimate physical,
socioeconomic and institutional factors that affect the use of soil conservation measures. In
addition descriptive statistics were also used as deemed necessary. The result of this study
indicated that farmers' conservation decision and the extent of use of both improved and
traditional soil conservation measures were influenced by a host of physical social, economic and
institutional factors. Physical factors such as slope of the farm plots and distance of the farm
plots from residence significantly influenced the use of both traditional and improved soil
conservation measures. Area of cultivated land increased the probability of using improved soil
conservation measures especially improved soil bund and cut off drain. Farmers‟ age decreased
the use of improved soil conservation structures while education level of head of households has
positive impact on soil conservation. Extension education had a substantial contribution to
motivate the use of improved soil conservation measures but it had no effect on the use of
traditional soil conservation practices. Land to labour ratio affected the use of both traditional
and improved soil conservation practices. Based on the results obtained, the following points
were found to be of paramount importance: natural resource conservation policies should
account for inter plot variation and the importance of physical factors in the design and
promotion of conservation technologies; the need for policies which are likely to influence the
awareness of individual farmers through extension service towards the effect of soil conservation;
policy makers and development agencies should target soil conservation technologies on the basis
of age; shift of emphasis by concerned organizations and government bodies involved in soil
conservation to give greater attention in conserving soils before the land lost all the fertile soils
rather than targeting on lands that has been already exhausted and degraded; targeting diffusion
of different (alternative) soil conserving technologies particularly to areas relatively having greater
area of arable land and to areas having smaller area of cultivated land; integrating of indigenous
soil conservation practices with improved ones to increases sustainability of modern agricultural
and natural resource conservation system; promotion of substitute and/or complementary
traditional soil conservation methods and improve their effectiveness to provide more choices to
farmers to select methods that they consider to be the most appropriate to their situations.
Keywords: Soil Conservation; Erosion, Tobit Model
33
34. Demand for Fertilizer in Oromiya: The Case of Two Districts in North
Shewa Zone
Shimelis Kebede Bedanie, Demese Chanyalew and Teressa Adugna
Year: 2004
Abstract: The economy of Oromiya is based on agriculture. However, agriculture is not able to
feed the growing population within the region. Various development strategies have been
undertaken to improve the poor performance of agriculture including intensification of
agriculture through the use of modern agricultural technologies. Fertilizer is one of the modern
agricultural technologies injected in the agriculture of Oromiya in order to increase the
production and productivity of smallholder farmers. Though emphasis was given to promote the
use of this modern technology, exploratory observations revealed that considerable proportion of
the farmers of the study area did not use it. Hence, this study was designed to dig out the major
factors that influence farmers‟ demand for fertilizer in two districts (Hidabu-Abote and GirarJarso) of Salale area (North Shewa Zone) of Oromiya with the following objectives: to identify
factors influencing farm households demand for fertilizer in Salale area (North Shewa zone) of
Oromiya, to determine the probability of farmers fertilizer use change per unit change in key
explanatory variables, to estimate the expected demand for fertilizer by average farmer in the
study area, to identify major problems in the distribution of fertilizer in the study area as well as
to generate future points of action for policy makers.
Both secondary and primary data were used for this study. Secondary data were collected from
various sources. Primary data were collected from 240 randomly selected sample households of
the study districts using structured questionnaire administered through personal interviews.
Descriptive statistics and econometric methods are used to analyze the data. About 76% of
Hidabu-Abote district and 56% of Girar-Jarso district sample farmers used fertilizer during the
survey year. Of the total sample respondents female-headed farmers accounted for 8.3 and 6.7
percent for Hidabu-Abote and Girar-Jarso districts, respectively.
The Tobit model was constructed using fifteen explanatory variables. Estimation of the model
separately for the two sample districts has revealed that ten and eight explanatory variables were
statistically significant at least at 10% probability level for Hidabu-Abote and Girar-Jarso districts,
respectively. The results of Tobit model show that age of the household head, formal education
attended by the household head, availability of family labour, farm size, total on-farm income,
distance from farmers home to fertilizer marketing center, access to extension services, access to
fertilizer credit, high altitude agro-ecology and low altitude agro-ecology are the major
determinant factors that have significant influence on the farmers demand for fertilizer at least at
10%t probability level in Hidabu-Abote district. On the other hand, age of the household head,
availability of family labour, farm size, total livestock holdings, total on-farm income, distance
from farmers home to fertilizer marketing center, access to extension services and access to
fertilizer credit are found to be the main explanatory variables that affect the demand for fertilizer
at least at 10% probability level in Girar-Jarso district.
The study suggests that improving extension services, improving fertilizer distribution system,
improving the livestock ownership of the farmers, developing better fertilizer credit facilities,
farm size consolidation, and agro-ecological based fertilizer research are some of the areas that
require adequate attention.
Keywords: Fertilizer; Demand; Fertilizer use; Tobit Model
34
35. Performance of Cattle Marketing System in Southern Ethiopia with
Special Emphasis on Borena Zone
Solomon Tilahun and Teressa Adugna
Year: 2004
Abstract: This study attempted to investigate the performance of cattle marketing system in
Southern Ethiopia with particular emphasis on the trade route from Borena pastoral area to
Addis Ababa (Kera) and Moyale border markets. The specific objectives of the study were to
assess the existing cattle marketing facilities, services and structure, analyze marketing costs and
margins, identify factors contributing for the variation in cattle price per kg of live-weight, and
examine integration of markets.
To achieve these objectives, secondary and primary data were used. Data from primary sources
were collected by means of market and traders‟ surveys. Market survey was undertaken on major
marketing day for one year (October 2002 to September 2003). Traders‟ survey was done during
two different periods: During high transaction (festival time) and the other during normal period.
Six markets were covered including five from Borena pastoral area (Moyale, Negelle, Yabelo,
Dubluk and Mega) and one from Addis Ababa (Kera) terminal market. Cattle marketing system
was evaluated using structure, conduct and performance approach and co-integration and error
correction model for market integration. Moreover, Channel composite index was used to judge
efficiency of different cattle marketing channels. Multiple-linear regression model was fitted to
identify factors contributing to the variation in cattle price per kg of live-weight.
According to the results of the study, sample markets were underdeveloped and inefficient,
characterized by lack of marketing facilities and services, oligopolistic market structure and low
producers‟ share and high marketing cost. Cattle prices were variably influenced by animal
characteristics, buyers‟ purpose, time of sale, and festival periods. Price per kg decreases as the
animal gets heavier due to lack of weighing facility, sellers at primary markets received discount
prices for matured cattle than for young age cattle. Matured cattle for resale and slaughter
received premium at terminal and secondary markets. In all primary markets, cattle sellers would
benefit if they sell their cattle during the afternoon. Cattle sellers would benefit in all festivals
periods except at Epiphany and Maulid There is also lack of short run and full integration of
markets
Improving marketing facilities and services, organizing and supporting producers‟ marketing
service cooperatives, improving marketing infrastructure, like road and communication would
create favorable conditions for cattle marketing in the study area. Provision of transport and
credit service, reliable market (price) information to all market participants, and investment in
abattoirs and livestock marketing need to be given due attention. Further research on the impact
of cross border trade on the livelihood of pastoralists and a detailed marketing cost and margin
study by tracing animals at different stages would be necessary.
Keywords: Cattle; Marketing; Performance; Marketing Cost; Margin; Integration
35
36. Growth, Direction and Structure of Ethiopian Coffee Exports
Paulos Desalnge and Teressa Adugna
Year: 2004
Abstract: Coffee has greater importance in the Ethiopian economy. It is the single foreign
exchange earner of the country accounting for about 56 percent of her total export revenue for
the last two decades. It contributes 4 percent of GDP, 40 percent of government foreign tax
revenue until coffee export tax was withdrawn, and 10 percent of the total government revenue.
Approximately, about 1.2 million households are involved in coffee production, and it is
estimated that around a quarter of the country's population are dependent on coffee for their
livelihoods. Fluctuation in international coffee price, competition from other producers and other
condition of the market put the benefits of the product into risk. This research was initiated to
examine Ethiopia's past and present conditions and future prospects in the international coffee
market. The specific objectives of the study were to: estimate growth in Ethiopia‟s coffee exports,
to examine direction of coffee exports, to analyze the structure of coffee exports, and to estimate
export demand for Ethiopian coffee. The study used data collected from various national and
international sources. Descriptive statistics, growth function, and log-linear regression were
employed for data analysis.
Over the 1961-2001 period, the value of coffee export earnings showed a positive growth of
4.43 percent annually; 83 percent of the growth was due to an increase in coffee prices that grew
at an average rate of 3.68 percent annually. This growth rate, however, was not uniform for the
period of analysis. The Ethiopian coffee exports did not show similar growth rates with the
washed and unwashed coffee types. The washed coffee exports increased at an average rate of
6.45 percent annually for the period 1961/62-1999/00. While the bulk sun-dried (unwashed)coffee export volume showed an insignificant change. Consideration of the growth of coffee
exports by major Ethiopian coffee buying countries for the period 1982-2001 reveals that coffee
export volume exhibited positive growth rates for Japan, Saudi Arabia and Belgium. In contrast
to these markets, the volume of coffee exported to USA and Finland showed negative growth
rates for the same period.
Ethiopia has exported coffee to more than 57 countries in the last four decades. But 89 percent
of its coffee was exported on average to 9 countries. The most noticeable change in the direction
of coffee exports was the declining importance of the USA and the rising importance of Japan,
Germany and Saudi Arabia. USA‟s share of Ethiopian coffee exports fell from 72.99 percent in
1961/62-1973/74 period (Haile Sellassie regime) to 8.34 percent in 1991/92-2001/02 period
(EPRDF regime). The share of Germany, Japan and Saudi Arabia rose from 3.94 percent to
31.33 percent, from 2.45 percent to 23.27 percent and from 2.84 percent to 13.11 percent,
respectively, over the 1961/62-1973/74 period to 1991/92-2001/02 period. Ethiopia has on the
average a better share in the coffee markets of Japan (5.58 percent), Germany (3.82 percent), and
Belgium (2.85 percent) for the period 1997-2001. The country was her loosing market shares in
USA‟s, Finland‟s and Italian markets. She has lost more than 93 percent of her share in the past
two decades in the USA market from 3 percent in 1982 to 0.2 percent in 2001 with a trend of
almost 8 percent annually. Ethiopia‟s share in Finland‟s and Italian coffee markets exhibited
declining trends of 10.69 percent and 3 percent, respectively. In contrast to the USA‟s and most
of European Union‟s markets, Ethiopia improved her shares in Japanese and Saudi Arabian
coffee markets.
With the purpose of identifying factors influencing the export demand for Ethiopian coffee, a
log-linear equation was estimated. The explanatory variables assumed the expected relationships.
The coefficients of Ethiopian coffee export prices assumed negative sign for all countries and
significant for Saudi Arabia, Japan, and the USA. The coefficients of Brazilian mild prices were
significant in case of Japan, Germany, and the USA and assumed a positive sign as expected.
These suggest that the Brazilian mild Arabica coffee is a direct substitute for the Ethiopian
coffee. Coefficients of the income variable were positive as expected, but found to be significant
for Saudi Arabia alone. The estimated coefficients of population were significant for Saudi
Arabia, Japan and Germany and assumed a positive sign as per expectation. The taste and
preference of the USA market showed a negative trend for Ethiopian coffee.
36
In order to exploit the available market opportunities efficiently and effectively, Ethiopia should
concentrate on both specialty coffee market for the top quality and mainstream market for the
remainder of its production. Changing the structure by adding value, participating in organic
coffee and Fair Trade markets are some of the mechanisms, in addition to improving
competitiveness in the mainstream market that could enhance the contribution of Ethiopian
coffee exports. Moreover, in the future planning of coffee production and trade, focus should be
given to effective price competitiveness in the sample markets, and exploit the opportunities
provided by population growth in Japan, Saudi Arabia and Germany and increase in income in
the case of Saudi Arabia.
Keywords: Coffee; Export; Growth and Direction; Export Demand; Growth Function
37
37. Ethiopia’s Haricot Bean Exports: Pattern, Market Share, Constraints
and Prospects
Demelash Seifu and Dawit Alemu
Year: 2004
Abstract: To increase the country‟s export competitiveness investigation of the export
performance on commodity basis is demanding. In Ethiopia, among the pulse crops, haricot
beans were by far the most important exportable items (>88%), which exported for more than 40
years and the country on the average obtained more than 29 million birr annually for the period
1966-2001. The objectives of the paper were: to analyze the growth pattern of haricot bean
exports of Ethiopia, to assess the market share of Ethiopia‟s haricot bean in major importing
countries, to measure the producers share from the export price, and to identify the constraints
and prospects for the country‟s haricot bean exports. The study used data collected from various
national and international sources. In addition, an informal market survey in major haricot bean
producing areas and an exporter survey were employed for the description of the haricot bean
marketing system. Descriptive statistics, Gini-coefficient, growth function, constant market share
model, and market share regression equation were employed for the study.
White pea bean was the dominant bean types that Ethiopia exported over years. Europe was
the major (>76 %) and traditional consumer, and North Africa and Middle East countries import
of haricot bean from Ethiopia has been increasing. The trend of exports of haricot bean volume
and FOB price from Ethiopia shows a sharp year-to-year fluctuation. However, during the postreform (1991-2001), the volume and FOB price of haricot bean were improved compared with
the pre-reform period (1975-1989) and has grown at 25 and 9 percent per annum, respectively,
while quantity and FOB price had grown at –8 and 6 percent, respectively, for the period 19751989. Although, the role and number of private haricot bean exporters were increased from time
to time, few exporters dominate the export trade. For example, the Gini-coefficient for the
period 2000/01 and 2001/02 was estimated to be 0.674 and 0.693, respectively. However
exporters cannot increase selling price in their intention since foreign buyers and consumers
mainly determine the price of haricot bean. This would further reduce the producer share from
the export price in particular and the country‟s export competitiveness in general.
The producer share from haricot bean export price was estimated to be about 56 percent
(2000/01-2001/02). Exporters on the average obtained a net profit of about 16 birr/q from the
haricot bean export trade for the year 2000/03. Results of the yearly decomposition of the
change in Ethiopia‟s export value of haricot bean in major importing countries namely, Algeria,
Germany, Netherlands, and Yemen showed that, Ethiopia‟s share of the world market as a
supplier to the world has declined, and the competitive effect was predominately negative,
indicating that Ethiopia is losing its competitive edge relative to other countries. That is, the
growth was attached only with market effect. Further, the results of the market share regression
analysis in Netherlands revealed that the unit value ratio and lag share were significant and the
expected sign. This showed that the existence of lag in share adjustment to relative price changes,
while in the Germany import market the unit value ratio was not significant and the expected
sign. The short run and long run elasticity of Ethiopia‟s haricot bean (dry bean) in Netherlands
were -0.878 and -3.204. This revealed that the sensitivity of market share to price ratio in the long
run. About 27 and 31 percent of the market share change in Netherlands and Germany is
adjusted or realized in the first year, respectively.
The poor haricot bean export performance, sensitivity of market share to change in unit value
ratio, and the likely increasing world competition due to increasing demand implied that, Ethiopia
has to increase its competitiveness in haricot bean trade by improving the bargains power,
improving production and quality, improving the seed system, promoting the organicness of the
product, and improving the marketing skills of producers and exporters, among others. Finally, it
is desirable to make further study to assess the export performance of major agricultural products
of the country in traditional and new markets in a system approach.
Keywords: Export Performance; Short Run and Long Run Elasticity; Unit Value Ratio;
Lag Share; Producers Share; Market Share; Growth Pattern; Haricot Beans
38
38. Economic Impact of Malaria on Peasant Agriculture: The Case of
Pawe Special Woreda
Maikil Tesfaye G/Hiwot, Ayalneh Bogale and Hagos Biluts
Year: 2004
Abstract: While malaria is the problem of the world, where nearly one fifth of the world's
population is at risk, the magnitude of its social & economic impact on Africa underscores the
need for regional focus to mitigate its devastating impact. The great majority of malaria related
deaths also occur in Africa. In SSA the transmission is higher than anywhere else in the world,
and the population living in malaria endemic areas is 85% of the total population and in health
service statistics it is among the top 10 leading causes of morbidity.
Malaria is a long-standing problem in Ethiopia, where a large area of the Country (75%) and
more than 40 million of the population (>60%) is at risk of malaria transmission. Despite efforts
of nearly four decades to control its spread and reduce its impact, malaria remains to be the
leading challenge to the health and development of the nation. It is one of the most potent
factors on poor agricultural production through its impact on labor supply, productivity and
income. Pawe has a perennial transmission of malaria. 89.4% of the population lived in malarious
area. There is high intensity of malaria infection in the area. The general objective of the study
was to estimate the effect of malaria on the economic condition of the peasants of Pawe special
woreda (district) and thereby to contribute to the development of malaria related policies.
Data collection involved a listing exercise in the woreda whereby 120 randomly selected sample
households were asked basic questions about their socio-economic situations as well as incidence
of death since 1985 and their causes. A two stage random sampling procedure was used, first to
randomly select four „villages‟ from the woreda and then to select farmers from the selected
„villages‟ randomly. The loss of labour was analyzed applying the effective labour supply model.
The Cobb - Douglas production function is used to evaluate the loss in production due to
malaria. The manner in which malaria affects household capital accumulation was captured by
specifying the proportion (multiple) of malaria related medical costs that were paid for by
reducing the earnings of the household
The result of this study revealed that out of 119 households drawn, 69 (57.98%) reported
deaths in the households since they came to Pawe. Of these, 57 (82.6%) households claimed that
death(s) had been caused by malaria, which means that 47.9% of the 119 households in the study
area have been victims of malaria deaths. Of the total deaths accrued to children under ten,
malaria claims 76.67%. This means that more than ¾ of the deaths of children under ten is
caused by malaria, indicating that, unless proper control measures are not taken timely, its longterm effect will be high threatening a probable population dynamics change in the future. The
mean reported period when malaria patients are bedridden is 22 21.77 days. The average
number of days of sickness when the victim has to be nursed is reported to be 16 days. Farmers
lost 8.15% of the value of output that could have been attained in the absence of malaria
situation and 8.9% of that of the malaria presence. The annual mean direct cost of treatment and
transportation per household was Birr 145.98 180.66for the year 2002.
The general conclusion is that malaria infection has a considerable impact on a household's
economy through its effect on reducing the household's a) effective labor supply b) productivity
of the members and c) income.
Keywords: Impact; Malaria; Agricultural Production; Cobb-Douglas Production Function
39
39. Socio-Economic Determinants of Child Malnutrition in the Rural
Areas of Harari National Regional State, Ethiopia.
Wendmsyamregne Mekasha, Ayalneh Bogale and Melake Demena
Year: 2004
Abstract: This thesis reports the results of the assessment of child malnutrition in the rural areas
of Harari Regional State, Ethiopia. The objectives of the study were to measure the incidence of
child malnutrition and identify its socio-economic factors in the study area. In order to determine
the magnitude of child malnutrition, data from the Regional Bureau of Disaster Prevention and
Social and Labor Affairs was analyzed and found that there is high rate of malnutrition in the
region (23.7% for stunting, 10% for wasting and 24.7% for underweight). However, a substantial
variation on the nutritional status of children could not be observed with respect to sex and age
of the child. Also a significant regional variation in the rates of stunting and wasting could not be
observed. Whereas a significant high rate of underweight (36.7%) is observed in Ullanula woreda.
Various socio-economic factors are also identified by collecting and analyzing data on the socioeconomic characteristics of household in the study area. The findings show that family size,
livestock units, duration of breast-feeding, status of ecology, type of cropping, fertilizer usage,
food shortage and presence of kitchen have a significant net impact on the risk of stunting.
Generally, poor households are found to experience high risk of stunting than middle and rich
class households. The results of this study imply that policy makers should be conscious not only
on food aid programs but also investing on non-food items is vital in reducing child malnutrition.
Keywords: Child Malnutrition
40
40. Adoption and Profitability of Kenyan Top Bar Hive Bee Keeping
Technology: A Study in Ambasel Woreda of Ethiopia
Melaku Gorfu, R.S.L. Srivatstava and Legesse Dadi
Year: 2005
Abstract: The data for this study was taken from Ambasel Woreda of Amhara National Regional
State. A simple random sampling was employed to draw a total of 100 respondents for the study.
Primary data from the respondents and secondary data from different organizations were
collected and used for the study.
Descriptive statistics were used to compare the technologies of beekeeping i.e., the traditional
indigenous technology and the improved Kenyan Top Bar Hive technology (KTBH) with respect
to the different attributes under considerations. An in-depth assessment in relation to beekeeping
characteristics of the groups was made. Logit model was used to identify the factors influencing
the adoption of KTBH. For the Logistic regression model 14 variables were included and
analyzed. Of these four variables, namely farming experience, perception of timely supply of the
technology, visit of apiary and extension contact were found to influence the adoption of KTBH
significantly. Profitability analysis was employed to compare per hive net return between
traditional hive and KTBH. Benefit-cost ratio was also analyzed to measure the feasibility of a
proposed project using each type of hive. Different components of costs, annual yield and
income for the two types of hives were considered for the profitability analysis and partial
budgeting. Homemade KTBH and institutionally provided KTBH were compared independently
against the traditional hive. The result revealed that the yield and per hive net return obtained
from the home made KTBH and institutional KTBH is greater than the yield and net return
from traditional hive. Beekeeping using KTBH results a higher Benefit Cost Ratio (BCR), Net
Present Value (NPV) and Internal Rate of Return (IRR) than the traditional hive. Implications of
this study are that targeting experienced farmers, encouraging apiary visit, timely supply of
KTBH, improving extension contact, and promotion of KTBH utilization are the utmost priority
areas of interventions to promote the adoption of KTBH for higher production and profit.
Keywords: Adoption; Profitability; Bee Hive Technology; Logit Model
41
41. Analysis of Factors Influencing Adoption of Triticale (X-Triticosecale
Wittmack) and Its Impact: The Case of Farta Woreda
Mesfin Astatkie, Belaineh Legesse and Elias Zerfu
Year: 2005
Abstract: The study has analyzed the influence of different factors on farmers‟ adoption
decision, its impact and to quantify the relative importance of the significant variables on the
adoption decision of triticale. In the process of the study both primary and secondary data were
used. In this study, multi-stage random sampling procedure was used to select 5 sample kebele
and 143 specific sample farm households. The respondents were selected by employing
probability proportional to size (PPS) random sampling procedure. The required data were
collected using interview through structured questionnaire. Descriptive statistics were used to
understand factors that affect adoption of triticale in the area. The survey result revealed that
about 42% of the sample respondents were adopters of the technology and 58% non- adopters.
T-test and tests were employed to examine the mean difference of adopters and non-adopters for
both continuous and dummy variables, respectively. Logistic regression (binary logit) analysis was
used to identify factors influencing adoption of triticale. Results of the logistic regression analysis
indicate that among 19 identified explanatory variables 7 of them significantly influenced
adoption of triticale. The probability of adoption of triticale for typical farmer in the study area
was estimated by keeping them at their mean value for the continuous variables and most
frequent values of dummy variables and it was found to be 0.904. The sensitivity analysis revealed
that an increase in the perceived yield level of triticale increase the probability of adoption of
triticale by 60.47% and an increase in the availability of leased-in land increase the probability of
adoption of triticale by 22.20%. Similarly, a 10% increase in distance to all weather road and
market decrease the probability of adoption by 0.32% and 1.66%, respectively. An increase in a
10% of livestock holding, investment cost and non-farm and off-farm income is found to
increase the probability of adoption by 1.60%, 0.48% and 0.77%, respectively. The findings of
the study revealed that perception on yield of triticale, having access to leased-in land,
construction of all-weather roads, and establishment of markets in the locality, an increase in
investment cost and an improved livestock holding would promote adoption of triticale.
Keywords: Adoption; Impact; Triticale; Logit Model
42
42. Determinants of Formal Source of Credit Loan Repayment
Performance f Smallholder Farmers: The Case of North Western Ethiopia,
North Gondar
Amare Berhanu, Bekabil Fuffa and Gizachew Ashagrie
Year: 2005
Abstract: Delivering productive credit to the rural poor has been a hotly pursued but problemplagued undertaking. No other concern than loan default has an acute effect on the success of
credit programs in rural areas. Loan default is a crucial problem of rural financial services.
Therefore, the major concern of this study was to identify the major socio-economic, institutional
and natural factors that affect loan repayment capacity of smallholder farmers in North Gondar
of Amahara regional state. The main data used for this study were collected from a sample of
formal credit borrower farmers in the zone through structured questionnaire. A total of 157 farm
households‟ cases were included in the final analysis. In addition, secondary data were collected
from different organizations and pertinent publication in order to elaborate the present situation
of rural credit in Ethiopia. Two-limit Tobit model was employed to analyze factors influencing
loan repayment and intensity of loan recovery among smallholder farmers in the zone. A total of
seventeen explanatory variables were included in the model of which seven variables were found
to be significant. These were agro ecology of the study area, size of land holding, total number of
livestock, number of years of experience in agricultural extension services, number of extension
contact days, credit source, and income from off-farm activities. Therefore, consideration of
these factors is vital as it provides information that would enable to undertake effective measures
with the aim of improving loan repayment in the zone. It would also enable lenders and policy
makers to have information as to where and how to channel efforts in order to minimize loan
default.
Keywords: Credit; Loan Repayment; Two Limit Tobit Model
43
43. Assessment of Comparative Advantage of Horse Bean and Lentil
Production in Basona Werana Woreda, North Shewa, Ethiopia
Fresenbet Zeleke and Gezahegn Ayele
Year: 2005
Abstract: This study is conducted with the main objectives of examining the profitability,
comparative advantage and the level price distortion of smallholders' horse bean and lentil
production activities. The study was conducted in the central part of Ethiopia in the Basona
Werana woreda, North Shewa zone, about 130 km away from Addis Ababa. The study uses a
cross-sectional data collected from a total of 114 sampled rural households and six traders and
processors. Moreover, secondary data were also collected from organizations such as National
Bank of Ethiopia, Customs Authority and other grain exporters and input importers in the
country. The Policy Analysis Matrix (PAM) methodology was employed in which the
competitiveness of production activities as well as the basic policy indicators [the nominal and
effective protection coefficients and the domestic resource cost ratios] were determined. The
result of the study suggested that both privet (financial) and social (economic) profits are positive.
Implying that horse bean and both (local and improved) varieties of lentil production in the study
area were profitable for the producers and for the country at large. The negative divergence
between privet and social values of outputs and inputs indicates that production of the three
crops were implicitly taxed on their outputs while subsidized on the use of tradable inputs as well
as domestic factors. The EPC, taking in to account both the output and tradable input markets,
reveals that a net disincentive (EPC<1) for horse bean and lentil (local) production while it is a
net incentive (EPC>1) for improved lentil growers. The DRC values, which ranges from 0.385 to
0.677, also confirms that the economic profitability or comparative advantage of producing these
crops in the study area given the present inputs used and outputs produced with their associated
prices, production technologies, existing policies and market failures. Apparently, the competitive
and comparative advantages gained should be supported both technically and institutionally for
its sustainability and future impacts of growing the three commodities.
Keywords: Comparative Advantage; Price Distortion; Policy Analysis Matrix
44
44. Analysis of Technical Efficiency in Sorghum Production: The Case of
Smallholder Farmers in Raya-Azebo District, Southern Tigray, Ethiopia
Haileselassie Amare, Dawit Alemu and R.S.L. Srivastava
Year: 2005
Abstract: The study aimed to analyze the technical efficiency of smallholder farmers in sorghum
production of Raya-azebo District, southern Tigray of Northern Ethiopia. It was based on crosssectional data of 120 sorghum producing farmers collected during 2004/05 production season.
Individual levels of technical efficiency were estimated using the Cobb-Douglas functional form.
A production function of the Cobb-Douglas type was found to be best fit the data. Input
variables such as area under sorghum, organic fertilizer and amount of pre-harvest labor are
found to be important in increasing the average level of sorghum yield. Farmers could increase
sorghum yield by using more of these inputs. On the other hand, total number of oxen days had
a negative effect on the average level of sorghum output. In the maximum likelihood estimation
procedure area, amount of organic fertilizer, labor and quantity of seed had also positive effect on
the frontier level of sorghum output. This would mean that there is a room to increase sorghum
output from the existing level if farmers are able to use these input variables in an efficient
manner. The result of the study further showed that there was difference in technical efficiency
among sorghum producers of the area. The discrepancy ratio , which measures the relative
deviation of output from the frontier level due to inefficiency, was about 82 percent. This implies
that about 82 percent of the variation in sorghum yield among the sample respondents was
attributed to technical inefficiency effects. The estimated mean level of technical efficiency of
sorghum producers was about 79 percent. This reveals that there exists a possibility to increase
the level of sorghum output by about 21 percent through exploiting the existing local practices
and technical knowledge of the relatively efficient farmers. Among the farm specific
socioeconomic and institutional factors hypothesized to affect level of efficiency, off-farm
occupation, age, Age square, weeding, and extension contact were found to be important
determinants of technical efficiency. Off-farm occupation had negative effect on the level of
technical efficiency. Middle age farmers are also relatively operating at higher level of technical
efficiency than the youngsters and old farmers. Weeding and extension contact also affect
technical efficiency positively and significantly. Hence, emphasis should be given to improve the
efficiency level of those less efficient farmers by adopting the practices of relatively efficient
farmers in the area so that they can be able to operate at the frontier. It implied that in the short
run extension packages can be designed based on local practices of the best-practiced farms in
order to improve the productivity level of farmers producing sorghum.
Keywords: Technical Efficiency; Sorghum Production; Cobb-Douglas Production
Function
45
45. Economic Efficiency of Some Selected Tanneries in Ethiopia: A Policy
Analysis Implication
Hawaz Yemaneberhan and Gezahegn Ayele
Year: 2005
Abstract: An important factor that would influence the success or failure of an individual
concern is the degree of efficiency in the utilization of resources under its commands. The
manufacturing sector of Ethiopia has not been generally efficient. Given this state of affairs,
there is considerable interest in documenting the patterns and magnitudes of the problems that
the manufacturing sector in Ethiopia has to live with, so that appropriate policies can be
designed. The main objectives of this study were to estimate economic efficiency of some
selected tanneries in Ethiopia and to examine important policy indicators of the same. Towards
this end, data were collected from 7 tanneries. In this course of action it was possible to collect
data purposively for the years 2002-2003G.C. A Policy Analysis Matrix (PAM) was used to
evaluate economic efficiency of the tanneries as well as the policy effects on them. The results
indicate that the Economic Efficiency measure of Domestic Resource Cost (DRC) from the
matrix ranges from-13.27 to -1.28 showing that the tanneries are very inefficient. Concerning
policy indicators, Nominal Protection Coefficients ranging from 1.61 to 20.45 indicate that the
market price of output exceeds the social price and hence the producers receive implicitly an
equivalent output subsidy. With regard to Nominal Protection Coefficient on tradable inputs
since NPI>1 the producers are taxed by purchasing the tradable inputs. Finally, the Effective
Protection Coefficients (EPCs) of 3.146 (in 2002) for Kombolcha tannery and 1.065 (in 2003) for
Modjo tannery indicate that the tanneries have got an implicit subsidy to the production of the
product. Again an EPC value of 0.225 (in 2003) for dire tannery shows that the tannery has a net
disincentive. The rest EPC values ranging from -4.81 to -0.13 reveal that the tanneries are
receiving large positive protection. Based on the result of the study, some recommendations were
made. Actually, shortage of raw materials should be improved. On the other hand, the tanneries
should finish some of the semi-processed hides and skins to good quality tanned products to get
market. Finally, form policy point of view, it is advisable to consider both the financial as well as
economical profitability of the tanneries side by side. And the unnecessary effective protection
should be critically sensed.
Keywords: Comparative Advantage; Price Distortion; Policy Analysis Matrix
46
46. Technical Efficiency of Maize Production: A Case of Smallholder
Farmers in Assosa Woreda
Kinde Teshome and Belaineh Legesse
Year: 2005
Abstract: The present study was conducted using a cross sectional data collected in 2003/2004production year for a total sample size of 120 households to analyze Technical Efficiency and to
identify principal factors that cause efficiency differentials. Translog functional form was used to
estimate technical efficiency in maize production. The test result indicated that there is
inefficiency in the production of maize in the study area and the relative deviations from the
frontier due to inefficiency is 96 per cent. The estimation of the frontier model with inefficiency
variables shows that the mean technical efficiency of farmers in the production of maize is 0.67.
This implies that production of maize can be increased by 33.0 percent given the existing
technological level. Thus, currently the farmers are not using production inputs efficiently in such
a way that they give their maximum potential. This inefficiency, however, can be improved if
factors that determine efficiency level of farmers in the production of maize in the study area are
identified. The estimated stochastic production frontier model together with the inefficiency
parameters suggests that any attempt to strengthen technical efficiency of smallholder farmers in
the study area must give due attention to the improvement of the principal causes for efficiency
differentials such as average educational status of the family members, age, credit availability,
off/non-farm activities, proximity and fragmentation of land, which are found to be significant
determinants of efficiency level. The negative coefficient of average educational status of the
family members, age, credit availability, off/non-farm activities, and fragmentation of land means
these factors are important in determining the existing efficiency of farmers positively and
significantly. While the positive coefficients of Age Square and proximity, indicate that the
increments in these factors increase inefficiency. Given the limited resources in the region in
general and in the study areas in particular this will enable the government and other concerned
parties engaged in efforts for improvement of the welfare of this part of the community to bring
about the desired changes in a cost effective way than trying to inject an investment on the
production of maize.
Keywords: Technical Efficiency; Maize Production; Translog Function
47
47. Determinants of Land Degradation in the Lake Tana Basin and Its
Implications for Sustainable Land Management: The Case of Angereb and
Gish-Abbay Watersheds
Getachew Adugna and Wagayehu Bekele
Year: 2005
Abstract: Economic Development in Ethiopia is hampered by many factors among which land
degradation in the form of soil erosion and nutrient depletion is the major one, and it is
threatening the overall sustainability of agricultural production of the country. Land degradation
in the form of soil erosion and nutrient depletion in the highlands of Ethiopia has reached the
point where it will became increasingly difficult even to maintain the present level of production
of basic food which is already insufficient in many regions of the country.
Therefore, the major objective of this study is to understand the biophysical, socio-economic
and institutional factors that are responsible for accelerated land degradation at plot level in the
study area. Moreover the agricultural production system, rural population growth and the change
in land-use/land-cover of the study areas were also analyzed. Both primary and secondary data
were collected for this purpose. The primary data were collected from 127 sample households
managing 670 farm plots from 14 kebeles in ANGEREB and GISH-ABBAY watershed.
Descriptive statistics such as mean and percentage were used to describe socio-economic and
institutional characteristics of the respondent farmers, plot characteristics, population growth and
land-use/land-cover of the study areas. In both watershed rural population grow at a very high
rate, cultivated land increases at very low rate and at the expense of other land-use type until
1980s, the per household head holding of cultivated land declined and land use/land-cover
change through time. In recent years starting from 1980s total cultivated land of Angereb and
Gish-Abbay watersheds declined due to land degradation and increase in rural settlement.
Ordered probit analysis was used to determine the effect of socio-economic, biophysical and
institutional factors that determine land degradation. A total of 15 explanatory variables were
included in the model of which seven were found to be significant at less than 10% probability
level. The econometric model results showed that socio-economic variables such as plot
ownership, livestock holding, family size, land to labour ratio and market distance from the
residence have effect on land degradation. Plot characteristics such as slope and distance of the
plot from the residence also have positive and statistically significance in affecting land
degradation.
The study findings suggest that in selecting priority intervention areas in the rehabilitation of
land degradation strategy should consider the socio-economic and specific plot characteristics as
well as farmers own preferences. accordingly, interventions in the areas of family planning,
appropriate soil and water conservation, proper land-use/land-cover, allowing and motivating the
farmers to exchange/transfer without limitation for consolidation of fragmented and dispersed
plots, generation of other means of income and appropriate cultural practices need to be given
due attention.
Keywords: Land degradation; Lake Tana; Oordered Probit
48
48. Socio-Economic and Environmental Impact Assessment of Devolution
of Natural Resource Management in Adaba-Dodola Forest Priority Area
Zerihun Getu and Ayalneh Bogale
Year: 2005
Abstract: A 3% annual forest resource depletion in Oromiya reveals that conventional
approaches to forest management haven‟t been able to guarantee the conservation of forest
resources. To reduce the continuing overexploitation of the remaining natural forests in the
region, the regional government has decided to tryout the WAJIB approach in Adaba-Dodola
Forest Priority Area.
The WAJIB approach is based on devolution of management to the forest dwellers associations
(WAJIB). The approach excludes a large part of the rural populations (the non-WAJIB members)
to resources that may play an important role in social and economic terms. The WAJIB groups
have assumed legal rights and duties of forest management.
The present study intends to assess the impact of the WAJIB approach on emerging conflicts
between WAJIB and non-WAJIB members, on income, which both groups generate from sales
of charcoal, construction materials and firewood and the impact of WAJIB approach on forest
condition in the WAJIB blocks. Descriptive and multiple regression analysis were employed to
analyze the data.
To address the first two objectives primary data was generated from both groups by using a
structured questionnaire. TCA data of IFMP was used to address the third objective.
Results of the study have revealed that conflicts on access to, and use of forest products were
there before the implementation of the WAJIB approach occurring mainly between the state
conservation agencies and the community. After the implementation of the WAJIB approach,
conflicts between the WAJIB and non-WAJIB groups have become prominent without
developing into “unmanageable” crises. The income of both WAJIB members and non-members
from sales of firewood, construction materials and charcoal has been significantly curtailed.
Assessments of the annual TCA results of the WAJIB-blocks indicated a positive impact of the
WAJIB-approach on forest condition in WAJIB-blocks. The regression of overall WAJIB impact
assessment on seven independent variables indicated that dependence on the forest for grazing,
after-WAJIB, dependence on the forest as a source of revenue, number of young (15-29 years of
age)in the family and WAJIB membership were significant at 10 and 1% probability levels.
In the process of putting the whole Forest Priority Area under the WAJIB-scheme, pressure on
the access-free remaining parts will increase. Thus, conflict potential will gradually be exacerbated
unless alternative income sources are developing. Therefore, the project or the official
stakeholders should continue efforts reducing the dependency of non-forest dwellers on forest
income on the one hand and developing forest product substitutes on the other hand.
Furthermore, the duty of WAJIB groups to pay annual forest rent is the socially and economically
appropriate price for their exclusive use rights. However, the income of forest dwellers from sales
of forest products too has been curtailed and population growth affects forest dwellers as well.
This implies the need for finding more alternative sources of income for forest dweller
households than the sole eco-tourism promotion in the area can provide.
Keywords: Impact; Natural Resource, Devolution; Environment
49
49. Environmental Goods Scarcity and Its Effect on Demand for Children
and Child Mortality: The Case of Sekota District, Wag Himra
Administrate Zone of the Amhara National Regional State
Zewdu Berhanie and Wogayehu Bekele
Year: 2005
Abstract: The current population boom unparalleled in human history is largely concentrated in
developing countries. Population growth rate, particularly, high fertility rate in these countries is
perhaps related to unacceptable risk of child death, extreme poverty related to the deterioration
of natural resource base like potable water, fodder and fuel wood. In many empirical studies, an
exogenous given increase population is considered as one of the most important factors
contributing to environmental degradation. However, the reverse effect has not been well
documented. Therefore, the general objective of this study is to analyze the relationship between
the levels of environmental goods scarcity and demand for children by households. Both primary
and secondary data sources were used for this purpose. The data were analyzed using the Tobit
model. It was found that fuel wood scarcity, part of environmental good scarcity affect fertility
negatively. Another variable, which is also related to environmental good scarcity, was risk of
child mortality rate that affect fertility positively. In addition to this factors other than
environmental goods that affect fertility were household calorie intake per capita, women age
category, and education of women. As far as the responsiveness of these factors concerned, it
was found that household calorie intake per capita was the most determinant of fertility decisions
of households in absolute value followed by fuel wood scarcity. Rate of child mortality risk,
women age category, and women's education were the third, fourth and fifth determinants of the
fertility decisions of households in absolute value, respectively.
Keywords: Environmental Goods; Scarcity; Child Mortality; Tobit Model
50
50. Measuring Rural Household Food Security Status and Its
Determinants in the Benishangul Gumuz Region, Ethiopia: The Case of
Assosa Woreda
Yilma Muluken, Ayalneh Bogale and Workneh Negatu
Year: 2005
Abstract: Transitory and chronic food insecurity are severe in Ethiopia. Thus, identifying and
analyzing those elements that are responsible for variation in household food security status are
needed to guide policy decisions, appropriate interventions and integrated efforts to combat food
insecurity. In this thesis an attempt is made to assess food security status and its determinants in
Assosa woreda of Benishangul Gumuz region by using primary and secondary data. For this
purpose descriptive statistics, Core Food Security Module (CFSM), binary logit, and ordered logit
models were used. Two stage random sampling procedure was used to select six kebeles and 140
sample respondents from a total of 74 kebeles. The survey result revealed that 20.7% of sample
farmers were food secure, 45% were food insecure without hunger, 26.4% were food insecure
with moderate hunger and 7.9% were food insecure with severe hunger. The binary logit model
results make known that among 16 explanatory variables included in the model, 6 were found to
be significant. These significant variables include family size, age of household head, and use of
chemical fertilizers, market distance, off-farm/non T farm income and total farm income. The
evidence of ordered logit model reveals that variables like family size, cultivated land size, yield
loss due to insect and pest infestations, off-farm/non-farm income, total farm income and soil
fertility problem were significant determinants of household food security status. Identifying and
understanding factors that are responsible for household food security status and its determinants
is important to combat food security problems at the household level. The study findings suggest
that in selecting priority intervention areas, the food security strategy should consider statistically
significant variables as the most important areas
Keywords: Food Security; Rural Household; Binary Logit; Ordered Logit
51
51. Household Food Insecurity in Dodota-Sire District, Arsi Zone: Coping
Strategies and Policy Options
Tesfaye Kumbi, Bezabih Emana and S. Senthilnathan
Year: 2005
Abstract: A clear understanding of the major causes of food insecurity helps policy makers and
planners formulate new policies that enhance food security. Therefore, this study was conducted
to measure food security/insecurity status of households, to identify factors influencing farm
households‟ food security and coping strategies and policy options. In order to achieve these
objectives biophysical; demographic and socio-economic data were collected from 150 randomly
selected households in Dodota-Sire District of Arsi Zone Oromia Regional State. A two-step
sampling procedure was used to select 6 PAs. A survey was conducted to collect the primary data
from sample respondents. Supplementary, secondary data were collected from various sources.
The data were analyzed using descriptive statistics like mean, standard deviation, percentage and
frequency distribution. Univariate analysis such as T-test and Chi-square tests were also used to
describe characteristics of food secure and food insecure groups. The survey result shows that
about 72% of sample farmers were food insecure. A logistic regression model was fitted to
analyze the potential variables affecting household food insecurity in the study area. Among 14
explanatory variables included in the logistic model, 9 of them were significant at less than 10%
probability level. These were family size, number of oxen owned, use of chemical fertilizer, size
of cultivated land, farm credit use, total annual income per adult equivalent, food consumption
expenditure, livestock owned, and off-farm income per adult equivalent. The estimated model
correctly predicted 92% of the sample cases, 81% food secure and 96% food insecure. “A
number of useful recommendations were made based on the findings of the study”.
Keywords: Food Insecurity; Coping Strategies; Logit Model
52
52. The Economic Impact of HIV/AIDS in Smallholder Farmers of
Alamata District, Southern Tigray, Ethiopia
Gebrehiwot Hailemariam Birru, Belay Kasa and Robert Baars
Year: 2005
Abstract: The starting point for the design of effective programs to mitigate the impact of
HIV/AIDS depends on the availability of accurate information on how households are affected
by and respond to the pandemic. Hence, this study was initiated with the aim of quantifying
productive labor loss, identifying existing coping mechanisms to mitigate the shock and
estimating foregone crop grain yield due to HIV/AIDS. The study was carried out in Alamata
district and data were collected from a total of 120 farm households (40 affected and 80 nonaffected households). Effective labor supply and coping mechanisms were analyzed using
descriptive analysis. Econometric tools, namely Cobb-Douglas (CD) production function and
decomposition models, were used to quantify crop yield forgone due to HIV/AIDS and to
decompose the yield difference between the two groups of households.
The results of this study indicated that HIV/AIDS reduced the affected households‟ effective
labor supply by about 42 percent as compared to that of the non-affected households. The effect
of reduced labor supply was reflected on the household composition and dependency ratio of
affected households. Moreover, the study highlighted that HIV/AIDS resulted in the reduction
of total cultivated land and total livestock holding. Besides the labor shortage, change in total
cultivated land and reduction in livestock holding of households, HIV/AIDS depleted the
financial resources of households in that they were forced to spend money on medical and
funeral expenses. The participation in and access to extension and training programs and credit
facilities by affected households were also very limited as compared to that of the non-affected
households.
In response to the shocks of HIV/AIDS, affected households adopted different strategies,
such as labour sharing arrangements, oxen sharing, share cropping, use of pack animals as a
source of draft power, forcing children to drop out of school, changing the types of crops and
crop varieties grown, reduction in land size and sale of assets.
Estimation of the CD production functions showed that the value of crop grain yield of
affected households were lower, by about 73 percent, than that of the non-affected ones. The
yield difference between the two groups of households was due to both technological and input
use differences. Technological change and input use differences accounted respectively for about
13 percent and 60 percent of the difference in income from crop production between the two
groups of households.
Therefore, to mitigate the impact of HIV/AIDS, location specific programs should be designed
to strengthen the capacity of rural households by improving their access to the limited resources,
promoting labor/capital-saving technologies and developing technologies that can make optimal
use of limited resources.
Keywords: Impact; HIV/AIDS; Production; Coping Mechanisms; Cobb-Douglas
Function
53
53. Determinants of Private Investment at National and Regional Level
with Particular Reference to Dire Dawa and Harari Regional States
Kefay Baye, Bekabil Fufa and Milkessa Wakjira
Year: 2005
Abstract: Ethiopia continues to record low levels of growth in private investment compared to
other developing countries. This is despite the new paradigm that recognizes market mechanism
and private enterprise as more efficient in generating the economic dynamism that leads to
growth. The objective of this study was to find the macro and micro-economic determinants of
private investment both at national and regional level, respectively in Ethiopia. A time-span of 28
years was used for multiple regression model of the macroeconomic determinants of private
investment at national level. Besides, a survey was conducted in Dire Dawa and Harari regions to
find out the micro economic level determinants of private investment. Thus, econometric
methods of data analysis involving multiple regression and Tobit models were used to analyze
macro and micro-economic data collected. In addition, descriptive analysis was employed to
analyze the survey data. The major macroeconomic determinants of private investment in
Ethiopia were public investment, domestic credit disbursement to the private sector, inflation
and real exchange rate. The result revealed that public investment and domestic credit
disbursement to the private sector positively and significantly affected the private investment.
However, private investment was negatively and significantly associated with inflation and
external public debt. Likewise, the results of micro level study showed that education, access to
land, access to credit, infrastructure facilities, investment incentives, corruption and bureaucratic
red tape were the most important determinants of private investment in the study areas.
Moreover, the micro level study result indicated education, access to land, access to credit,
infrastructure facilities, and investment incentives were positively and significantly related with
private investment. Corruption and bureaucratic red tape were negatively and significantly
associated with private investment. The results of this study revealed that most of the problems
encountered by the private sector were institutional. Thus, the government has to take measures
to promote private investment at national as well as at regional levels. The intervention program
might be viewed as strengthening institutional set-up in the country and promoting
macroeconomic stability. This could be done by establishing a true, independent and efficient
institution so as to create access to credit, access to land, provide infrastructure facilities to the
private sector. This could be done through minimizing corruption, and eliminating unnecessary
regulation. Moreover, in order to cope up with macro-economic instability, government has to
minimize external public debt, maintain a low inflation rate and a stable exchange rate. This
would help in creating a conducive investment climate and promote the private sector to
participate in development activities. Thus, Ethiopia must open up its doors to private
investment by applying policies, which promote private investment to insure development and
growth of the economy.
Keywords: Private Investment; Micro and Macro Level; Tobit; Multiple Regression
Model
54
54. Factors Determining Supply of Rice: A Study in Fogera District of
Ethiopia
Wolelaw Sendeku and S. Senthilnathan
Year: 2005
Abstract: To address the food insecurity problem of Ethiopia, production of alternative crops to
teff, maize and sorghum is being tested at various locations. The first rice-testing program was
started in the year 1967 in different parts of the country. The highest yield level achieved was
about 80 qtls/ha, in Gambella; 50 qtls/ha, in Fogera; 56 qtls/ha, in Arbaminch and 63 qtls/ha, in
Chefa. Rice cultivation has been popularized in Fogera District for past 25 years. Between the
years 1993 and 1998 rice production has multiplied several times in terms of households, area and
production. Research reports documented the possibility of cultivating rice in some other areas
also. Before expanding the area under the crop in the country it is imperative to analyze the
supply behavior of rice farmers in terms of market participation, marketing efficiency and to
address the problems faced by farmers and consumers/traders in rice marketing. A research was
carried out in Fogera District of Amhara National Regional State to investigate the productionmarketing linkages in rice. Specific objectives of the study were to analyze the factors determining
the supply of rice at farm level, to assess the marketing efficiency of rice farmers and to identify
the constraints if any in marketing of rice. Two stage sampling technique was followed to select
120 rice farmers distributed over four among the eight kebeles of the district having the same
agro ecological features. Thirty sample farmers were selected randomly from the list of rice
farmers maintained in the District Agriculture Office. The primary data were collected during
months from November 2003 to February 2004. The results of the study indicated that among
the factors considered to determine the supply of rice, current price, total production in the farm,
quantity of rice consumption and weather had significant effect. Marketing efficiency of rice
farmers was estimated from the unit profit and unit marketing cost of rice using Shepherd
formula. Distribution of marketing efficiency of the sample rice farmers showed that about 53.3
percent were below mean level of efficiency, 42.5 percent above mean level and only 4.2 percent
concentrated around the mean level. The critical problems in marketing of rice as reported by the
sample farmers were, distress sale at the time of harvest, absence of adequate processing facilities,
poor transport facility and inability to improve the quality of rice. Rice processors and traders
reported improper drying, immature harvest of the crop and presence of dust, sand and weed
seeds as the major problems they face. Some policy implications like developing transport
infrastructure, continuing with the price support policy, emphasis on the quality of the rice
product by delivering improved variety and designing the needed extension method and
promotion of rice consumption were recommended.
Keywords: Farm Level Supply; Rice; Marketing Efficiency
55
55. Economics of Coffee Bean Marketing: A Case Study of Goma District
in Jimma Zone of Ethiopia
Elias Abebe, S. Senthilnathan and Milkessa Wakjira
Year: 2005
Abstract: One hundred and twenty coffee growing sample farmers and six coffee bean traders
were surveyed to analyze the marketing of coffee bean in the study area. A two-stage random
sampling technique (on Peasant Associations and farm households) was employed for generating
primary data. The size distribution patterns of holdings reveal that majority of the sample farmers
(61.7%) were medium farmers, 23% large and 16% were small. This implies that 78 % of all the
farmers had holding sizes of below or equal to one hectare. There is significant difference
between small and medium farmer groups and also between medium and large groups at 10%
level ,whereas between small and large farmer groups at 5% level in the average coffee area per
household, average production per household and average area with improved variety coffee area
per household. Moreover, large farmers have been allocating more area for improved variety of
the plant compared to small and medium. The analysis also revealed that the percentage of coffee
area under improved variety of coffee was 25.9%, 17% and 43.9% for small, medium and large
farmers respectively. There was price difference between two quality lots of coffee (dry processed
clean bean and dry processed secondary bean) sold by coffee dealers significant at 1% level.
There was also price difference in selling b/n coffee collections and coffee dealers significant at
10% long. Regression analysis on factors determining the market supply of coffee revealed that
R2 = 0.32 and standard error =9.4. Variables with positive signs were stumped coffee area, cost
of farm labor, age of plantation and yield of sun-dried coffee significant at 5%, 5%, 5% and 10%
levels respectively. The market study revealed that the total marketing margin of coffee bean in
channel I (Farmers → Coffee collectors‟ → Coffee Dealers → Export market) was 4.75 birr/kg
out of which the producers' share was 16%. In channel II (Farmers → Coffee dealers → Export
market), values were 3.42 birr/kg and 22.5% respectively. The breakeven analysis revealed that
33% of the sample coffee dealers were performing dry coffee processing viably. Net income on
sales ratios for the coffee dealers (average value= 0.54) was higher than that of the coffee
collectors (average value = 0.09). Values were positive suggesting that the businesses were
profitable but less than unity for profitability level was low. The coffee bean marketing problems
were low quality coffee produced by farmers, poor marketing infrastructure and facilities and lack
of institutional credit for coffee production and marketing. Intensive government intervention in
basic infrastructure is required for increasing coffee production and marketing in the study area.
Educating the farmers on coffee management practices including fertilizer application on coffee
plantations and control of CBD is also required. Moreover, coffee plantations should be retained
at economically productive age and stumping of the coffee plants be practiced
Keywords: Coffee Bean; Marketing; Marketing Channel
56
56. Dairy Marketing Patterns and Efficiency: A Case Study of Ada’a Liben
District of Oromia Region, Ethiopia
Gizachew Getaneh, Mohammed A. Jabbar and Teressa Adugna
Year: 2005
Abstract: The study was initiated with the objectives of examining the dairy marketing patterns
and efficiency. Data came from the separate survey of dairy producing households and marketing
middlemen. Maximum Likelihood Estimation procedure such as logit model was employed in
identifying factors affecting decision to sell dairy products, Tobit model was used in investigating
factors affecting decision on volume of dairy sales. Concentration ratios and marketing margin
analysis were conducted in examining efficiency. Market participation decision is affected by
household demographic and socio-economic characteristics and transaction costs represented by
distance to market and urban centers. Volume sale of dairy is affected by intellectual capital,
transaction cost represented by distance to district capital and financial resources.
Unconcentrated suppliers characterize dairy market; market at the next level is also
unconcentrated for butter and cheese but concentrated for liquid milk. The dairy processing
industries enjoy the highest return while the dairy cooperative gets the lowest margin. The results
suggest that production and marketable surplus should be improved and adequate marketing
infrastructure like roads and transport facilities should be established between rural and urban
areas in the district to support enhanced market participation. With the aim of reducing
transactions cost adequate marketing link should be established between the rural producer and
urban consumer through institutional arrangements, such as dairy cooperatives. Relaxing the
criteria required in obtaining bank and micro credit and forming a well-functioning urban and
rural financial system would enable resource poor farm households to participate in dairy market
and improve its supply.
Keywords: Dairy; Marketing; Efficiency; Logit; Tobit Model
57
57. Dimensions and Determinants of Poverty in Pastoral Areas of Eastern
Ethiopia: The Case of Shinile Zone in Somali National Regional State
Hilina Mikrie and Belaineh Legesse
Year: 2005
Abstract: In a modest attempt to fill in the research gap observed in poverty studies in Ethiopia,
the present study was carried out at Shinile zone of Somali National Regional State with specific
objectives of exploring the dimension and determinants of poverty in the pastoral areas. In order
to attain this aim the study made use of the primary data collected by conducting formal and
informal survey from sample respondents through personal interview using semi structured
questionnaire. A two stage random sampling procedure was followed. In the first stage, 8 pastoral
Kebeles (2 Kebeles in each Woreda) were selected from 4 Woredas and in the second stage 120
pastoral households were randomly drawn from the selected pastoral communities. The data
collected were analyzed and discussed applying poverty index, descriptive statistics and logit
regression model analyses. To this end, identifying poor and non-poor households; examining the
incidence, depth and severity of poverty in the community; investigation of the bio-physical,
demographic and socioeconomic characteristics of poor and non-poor groups of pastoralists and
measurement of the dimensions of poverty have been made.
Accordingly, the result of the study with respect to socio-economic characteristics of the
pastoralist households revealed that there is a significant difference between the poor and nonpoor group at less than 1% probability level in terms of age of household heads, mean
consumption expenditure per AE, income from livestock sales per AE, non-farm incomes per
AE, food & nonfood expenditures per AE, number of livestock owned in TLU/AE and per
capita consumption expenditure. In the same way, variables like family size, proximity to school,
grain mill and telephone facilities showed significant difference between poor and non-poor
groups at less than 5% probability level. The result of the logistic regression model revealed that
out of 14 variables included in the model, 10 explanatory variables are found to be significant up
to less than 10% probability level. Accordingly, age of household head, total family size &
dependency ratio and animal disease incidences expressed in terms of lost TLU/AE were found
to have positive association with poverty of the household and significant at less than 1%, 5%
and 10% probability levels, respectively. Meanwhile, income from livestock and livestock
products per AE (significant at less than 1%), livestock owned expressed in terms of TLU/AE,
non-farm income per AE, age at first marriage (significant at less than 5%), selling of milk and
pasture management practices (both are significant at less than 10%) were found out to have
strong negative association with the households poverty status.
Keywords: Poverty; Pastoral; Poverty Index
58
58. Farmers’ Response and Willingness to Participate in Water Harvesting
Practices: A Case Study in Dejen District/East Gojam Zone
Molla Tafere Yehzbalem and Wegayehu Bekele
Year: 2005
Abstract: Despite the significant contributions of agriculture in the overall economy of Ethiopia,
its productivity and yield per unit area is very low. Many factors contributed to bring up the
problem among which moisture stress is to be cited. The response to cope up with drought and
hence to improve the status of productivity of the agriculture is to adopt some form of irrigation
practice. However, developing large scale irrigation is a costly alternative, which may require large
quantity of capital resource. This is a difficult job to practice for the small scale resource poor
Ethiopian farmers. The alternative, which may compromise the need for expanding irrigation and
the capital shortage, may be promoting small scale irrigation schemes through practicing water
harvesting. Therefore, the major concern of this study is to identify determinants of farmers‟
response and willingness to participate in water harvesting practices and the choice decision
among alternative water storage structure technology groups. The study is aiming at proposing or
indicating policy measures for promotion and adoption of water harvesting activities. The study
was conducted in Dejen district, Amhara National Regional State. A total of 120 farmers had
been interviewed in the study area in October and November 2004 to generate primary data for
the study. A binary logit model for the willingness/ to participate decision study and multinomial
logit model for the choice decision among alternative water harvesting storage technology groups
were employed. A total of 14 explanatory variables for the binary logit model and 10 for the
multinomial logit models were used out of which 7 variables were significant to affect the
willingness of farmers in water harvesting practices. These are education level of head of the
household, total tropical livestock unit owned, training, financial constraint of the household,
distance of development center from homestead, attitude towards water harvesting technology
and labour availability. Taking the specific characteristics of farmers into account in planning
water harvesting projects may help policy makers to come up with projects that can win
acceptance by farmers. The findings of this study indicate that any effort in promotion of water
harvesting activity should recognize the socio-economic, household and technological
characteristics.
Keywords: Water Harvesting; Willingness to Participate; Logit Model
59
59. Conservation Costs of Wild Population of Coffee Arabica in Montane
Rainforest of Ethiopia
Aseffa Seyoum Wedajo, Bezabih Emana and Belaineh Legesse
Year: 2005
Abstract: The study empirically estimated the conservation costs of wild population of Coffee
Arabica in Montane rainforest of Ethiopia under collaborative and strict in situ conservation
strategies. Specifically, the study described the conservation strategies, estimated their costs of
conservation at implementing institution level and at household level, and identified determinants
of participation and cost incurred in each conservation strategy at household level. The study was
conducted in southwestern part of Ethiopia in Gimbo and Yayu-Hurumu districts about 440 Km
and 520 Km from Addis Ababa, respectively. A cross-sectional data collected from a total of 204
sample households whereby 99 were from collaborative conservation strategy area and 105 were
from strict in situ conservation area. Moreover, secondary data were collected from Institute of
Biodiversity Conservation (IBC) and FARM Africa. These data were analyzed using descriptive
statistics to describe the conservation strategies and to estimate their costs. Furthermore,
treatment effect model was estimated using two-stage least squares method to identify the
determinants of participation and cost of conservation at household level. The result of the study
depicted existence of significant difference between the strategies in the level of conservation
cost components incurred at household as well as at institutional level. Collaborative
conservation strategy was identified as cost-effective strategy for in situ conservation of wild
population of Coffee Arabica. Moreover, participation of the local people in each conservation
strategy and its conservation costs were determined by the socio-economic characteristics of
households significantly.
Keywords: Conservation; Cost; Wild Population; Coffee Arabica; Treatment Effect Mode
60
60. Demand for Beef in Addis Ababa
Yonas Fantaye and Dawit Alemu
Year: 2006
Abstract: A study on Demand for beef was conducted to examine food ways for beef, to identify
factors influencing the demand for meat and to forecast demand for beef in Addis Ababa.
Consumption habit of the people of Addis Ababa is various. The habit of variation is on cut and
kind of meat eating preference. Eating preferences of cut of beef (shint or sirloin comprised a
larger percentage, followed by Tanash (Hind quarter), and Talak (top round), respectively). The
majority of Addis Ababians prefer raw beef, Steaks and Fried come next. The other variation
among households was observed in terms of the kind of meat preferred. About 62% of
respondents ranked beef as their first preference as compared to other kind of meat. The quality
indicators for beef considered are color and fatness, with 55.3% and 22.8% responses,
respectively. Another variation on beef consumption pattern is due to communalism and
Religious motivation. About 56% of the households utilized sharing the body part of the animals
(kircha) as a means of acquiring beef. On the other hand, religious affiliation also creates
variation on demand for beef, as there are days and periods of fasting time when livestock and
livestock products are not consumed. A double- log functional form of regression model was
fitted to the data so as to readily interpret the coefficients as elasticity since, the value of R2 is
higher than the linear regression model. The analysis of demand beef reveals that income, own
price, and price of sheep are important determinants of household beef consumption patterns in
Addis Ababa. While, price of chicken and family size were not found to influence the demand for
beef Projected demand for beef using growth rate of population and real per capital income
reveal that 5.10 million kg beef would be consumed by the year 2009.
Keywords: Demand; Beef; Double-Log Function
61
61. The Impact of Small Scale Irrigation on Household Food Security and
Assessment of Its Management Systems: The Case of Filtino and Godino
Irrigation Schemes in Ada Liben District, East Shoa, Ethiopia
Abonesh Tesfaye, Ayalneh Bogale and Regassa Ensermu Namara
Year: 2006
Abstract: Ethiopian agriculture is largely small scale subsistence oriented and crucially dependent
on rainfall. Although irrigation is one means by which agricultural production can be increased,
irrigated production is far from satisfactory in the country. The aim of this study is to analyze the
impact of small scale irrigation on household food security and also to describe the management
systems of the schemes. The study was conducted in Ada Liben district on two peasant
associations namely Godino and Quftu. Data was collected on 200 household heads, 100
households were interviewed from each peasant association. A two stage random sampling
technique was employed to select the sample respondents. Both descriptive and econometric data
analysis techniques were applied. In the econometric analysis the impact of small scale irrigation
on household food security is analyzed using the Heckman two-step procedures. The descriptive
statistics revealed that 70 percent of the irrigation users and 20 percent of non-users are found to
be food secure while 30 percent of the users and 80 percent of the non-users found to be food
insecure. The descriptive statistics also indicated that there is poor management system of the
irrigation schemes with regard to water use, control structure and organizational activities. In the
first stage of the Heckman two-step procedure the variables that are found to determine
participation in irrigation are: nearness to the water source, household size, household size
square, size of cultivated land, livestock holding, farmers perception of soil fertility status and
access to credit service. After the selectivity bias is controlled by the model in the second stage
the following variables were found to significantly determine household food security: access to
irrigation, household size, household size square, sex of the household head, size of cultivated
land, access to extension service and nearness to the water source. For comparison purpose the
study also runs ordinary least square model and it is identified that the coefficient of access to
irrigation in the Heckman two- step procedure is twice the coefficient of the ordinary least square
model implying that ordinary least square model underestimates the impact of small scale
irrigation on household food security. The study concluded that small scale irrigation is one of
the viable solutions to secure household food needs in the study area. The study also suggested
the proper management system of the irrigation schemes In order to sustainably use them.
Keywords: Impact; Small Scale Irrigation; Food Security; Management
62
62. Determinants and Dimensions of Household Food Insecurity in Dire
Dawa City, Ethiopia
Aschalew Feleke Asfaw, Abebe Haile Gabriel and Ayalneh Bogale
Year: 2006
Abstract: The problem of urban food insecurity in Ethiopia has received little attention despite
its increasing importance and far reaching ramifications. High rates of unemployment resulted
from sluggish economic growth and low level of investment in urban centers combined with high
population growth has negatively affected income earning potentials of the residents. Urban
population will continue to grow with its associated problems unless meaningful development
interventions backed by research findings are undertaken.
The present study attempts to examine the food insecurity situation, estimate food insecurity
gap and severity and identify the determinants of food insecurity in Dire Dawa town at
household level. The primary data source for this work was the Dire Dawa urban household
socio-economic data collected by undertaking a survey on 200 households. Descriptive statistics
and econometric methods were employed for analysis purpose to meet the stated objectives.
The descriptive statistics revealed a significant mean difference at an acceptable significance
level between the food secure and food insecure households in terms of household size, adult
equivalent, number of income sources, daily income per adult equivalent and daily food
expenditure per adult equivalent. Education and occupation of household head were also
statistically significant at 5 and 1 percent significant level respectively.
A binary logit econometric model has identified seven out of nine variables included in the
model as significant. Household size, daily income per adult equivalent, proportion of food
expenditure, household head education, sex of household head, access to credit and marital status
of the household head were found to be significant determinants of food insecurity in the study
area. The head count ratio computed by FGT model revealed that 43 percent of sample
households were food insecure. The food insecurity gap and severity were 13 and 5.9 percent
respectively.
The findings suggest the following set of policy recommendation. Action based awareness
creation on the impacts of population growth at family, community and national level, provision
of technical skill training to the unemployed that enhance the job creativity of the participants
should be promoted extensively. Access of credit to the needy and trained people needs to be
provided with proper targeting criterion. Education, which is the basis for any development,
should be strengthened with particular focus on vocational training.
Keywords: Food Insecurity; Gap and Severity; Logit Model
63
63. Farmers' Perceptions of Land Degradation and Determinants of
Household Food Security Status at Middle Catchment of Bilate Watershed
Genene Tsegaye, Legesse Dadi and Wagayehu Bekele
Year: 2006
Abstract: Land degradation mainly in the form of soil and nutrient depletion reduces the
productivity of land which poses a serious threat on food security status of households. Thus, the
present study was designed with objectives of examining farmers‟ perception of land degradation,
assessing the food security status and identifying its determinants at middle catchments of Bilate
watershed. A two- stage of sampling technique was employed to select 130 sample households
from five sample kebeles. The data used for this study were collected from sample households
through a structured questionnaire. Categorization of a household into food insecure and secure
groups was done based on the Household Core Food Security Module (HCFSM). Accordingly,
the survey result revealed that 73.1% and 26.9% of sample households were food insecure and
secure groups. The result of HCFSM also showed the severity level as 10%, 45.4% and 17.7% of
the insecure household were food insecure without hunger, with moderate hunger and with
severe hunger respectively. Descriptive statistics and binomial logit regression model were used
to analyze farmers‟ perception of land degradation problems and to identify the potential
determinants of food security status in the study area. Farmers‟ perceive land degradation
problems differently. Farmers with higher perception level were found to be food secured. The
binary logit model result revealed that out of the total twelve explanatory variables hypothesized
sex, family size, dependency ratio, education, soil conservation measures, livestock owned, farm
income and perception index were significant determinants of household food security status.
Result of the study concluded that policy makers and development seekers must give attention
and high priority in improving farmers‟ perception level that enables them to maintain land
productivity and thus improve food security status of households. Moreover, due attention and
policy consideration has to be given by government to those significant variables which have a
potential impact in determining household food security status in the study area.
Keywords: Land Degradation; Food Security; Logit Regression
64
64. Household Savings Behavior and Determinants of Savings in Rural
Savings and Credit Cooperatives: The Case of Western Amhara Region,
Ethiopia
Degu Addis Abune, Dawit Alemu, Belaineh Legesse and Bernard Tanguy
Year: 2006
Abstract: In Ethiopia in general there are two types of non-banking financial intermediaries:
share company micro finance institutions, which are 23 in number and savings and credit
cooperatives, which are much more numerous. However, as compared to the demand for the
service their coverage is very small. Although savings and credit cooperatives are user-owned
financial intermediaries, many of the savings and credit cooperatives are located in the urban area
and savings and credit cooperatives are increasingly being organized in the rural areas recently.
The main objective of this study was to assess how rural households are mobilizing cash savings
and make use of their savings through the institution that is owned and managed by them. This
study was undertaken in the Amhara National Region State in the Western part of the region in
three purposively selected woredas namely, Dejen, Burie, and Fogera woreda which are found in
three Administrative zones. From five purposively selected PAs 140 respondents which comprise
RUSACCO-members and non-members were randomly selected. Both primary and secondary
data were collected. The descriptive statistics of the study showed that between the two sample
groups with respect to education status, cultivable land holding, and livestock resources
ownership in TLU there was significant difference at one percent level of significance.
Households have had savings experiences in undisclosed places (22.14 percent of the
respondents), in traditional associations 5.71 percent, 7.14 percent in ACSI, and 4.29 percent of
the respondents have had cash savings experiences in CBE. But the savings experience and the
participation rate of non-members in RUSACCO was zero whereas the participation rate of
members was 100 percent throughout the year. The average propensity of the sampled
households to save for the year 2005/06 was 6.57 percent. At five percent level of significance
there is significant difference between the two sample groups on the average propensity to save.
Based on the analysis made on the results of Heckman two-step procedure the study has
identified the main determinants of participation decision on RUSACCOs membership and the
magnitude of annual savings of RUSACCOs members. The determinant variables such as the
ratio of non-farm income to farm income, participation in training programs, livestock resource
ownership, beneficiary ness of credit, and education level of respondents increased the
probability of the household participation decision in joining RUSACCOs. Similarly, the
corrected OLS regression results assured that three variables (the ratio of non-farm income to
farm income, livestock resource ownership, and education level of respondents) were
significantly related with the magnitude of households‟ annual savings in the RUSACCOs. The
study concluded that RUSACCOs are appropriate options for the rural households which are
providing financial services and products to the rural community. Hence, to promote these
financial institutions in the rural areas in a sustainable manner the study suggested the measures
to be taken by the concerned responsible organizations.
Keywords: Saving; Rural Saving; Cooperative; Heckman Two Stage Model
65
65. Analysis of Red Pepper Marketing: The Case of Alaba and Siltie in
SNNPRS of Ethiopia
Rehima Mussema, Dawit Alemu and Dirk Hoekstra
Year: 2006
Abstract: This research attempts to examine red pepper marketing in Alaba and Siltie with the
specific objectives of identifying marketing channels, and the role and linkage of marketing
agents; quantifying costs and margins for key marketing channels; identifying factors affecting
volume of pepper supply in Alaba and Siltie and examining integration between regional markets
and the terminal market. Red pepper marketing channels, and the role and linkage of marketing
agents has been evaluated using structure, conduct and performance approach. This study also
attempts to investigate the performance of pepper marketing channel by analyzing marketing
costs and margins, and examines the integration of pepper markets over the 2001/02-2004/05
period by using Cointegration and Error Correction Model. Moreover Tobit and Heckman two
stage econometric models were used to investigate factors affecting pepper market participation
decision and quantity supply of pepper. According to the results of the study, in 2004/05 regional
wholesaler and urban assemblers purchased about 44% and 28% of farmers‟ production,
respectively. Sample markets were inefficient, characterized by oligopolistic market structure in
Addis Ababa, Alaba and Tora markets. Research findings suggest that an improvement in
producers bargaining power through cooperatives is necessary to reduce the olgopolistic market
structure. In Alaba Kulito market, traders set purchase price after the mid nigh. Based on this
price setting strategy, there is an urgent need for government intervention. Structure of the
markets indicates that licensing and years of pepper trade experience did not hinder entry into
pepper market, but education and capital were barriers. Market information is the main problem.
Markets also are characterized by low producers‟ share and high marketing cost. Based on the
Heckman two-stage model, the study has identified the main determinants of pepper market
participation decision and its effect on the quantity supply. One of the most important variables
influencing the decision to participate in pepper market is pepper production. Consequently,
extension work should focus on encouraging farmers to participate in pepper production
especially, there is a need to increase new varieties that are disease resistant variety and
disseminate these technologies to potential areas. The other factors that adversely affects market
participation is crop yield of the households. Keeping their specialization and social role in
pepper production potential areas is necessary. Moreover, pepper production and extension
contacts are the determinant factors of the quantity of pepper supplied. Therefore, policies that
would improve pepper production capacity by identifying new technologies and create stable
demand for surplus production would enhance farmers‟ decisions on marketable surplus. Non
farming income and number of livestock affected the quantity of pepper supplied negatively.
Thus, stakeholders have to make further investigations on cost and benefit of non-farm income
and livestock production of farmers and let them know the result to make their decision. Further,
the result shows that Siltie zone pair markets (Tora – Silti, Tora - Alem Gebeya, Tora – Dalocha,
Silti – Alem Gebeya, Silti – Dalocha and Alem Gebeya - Dalocha) are integrated. However, the
terminal market (Addis Ababa) is not integrated with the regional markets (Alaba Kulito, Silti,
Dalaocha, Tora, and Alem Gebeya) even though, the regional markets are the major pepper
supplier to Addis Ababa market. This implies that there is poor market information system,
limited bargaining power of farmers, oligopolistic market structure in the pepper market. The
findings suggests that, effective market information service has to be established to provide
accurate and timely information to farmers and traders on current supply of pepper output,
demand and prices at national and regional levels. Market structure of pepper (strong oligopoly
market) also influenced market integration, implying the need for creating competitive market
structure.
Keywords: Red Pepper; Marketing; Co-Integration; Tobit; Heckman Two Stage
66
66. Farmers Participation in Contract Farming: The Case of Bread Wheat
(Triticum Aestivum L.Em.Thell) Production in Womberma Woreda,
Amhara National Regional State
Getaneh Wubalem Meshesha, Bekabil Fufa and Eleni Z. Gabre-Madhin
Year: 2006
Abstract: In Ethiopia, agriculture is the major source of food supply and household income for
the rural people in particular and for the citizens in general. Furthermore, the sector is also
critically, expected to increase foreign exchange and employment opportunities for the nation.
Nevertheless, its performance has been poor and failed even to bring sustainable positive changes
in the living standards of rural farming communities. Among the factors that contribute to its
inefficient performance is, the low grain prices immediately after harvest that dampens
production incentives and contributes to the stagnation of the sector‟s productivity thereby
constraining improvements in rural livelihood. This is because of the fact that the returns farmers
receive for their crops on the open market depend on the selling time, the prevailing market
prices as well as on their ability to negotiate with buyers. This can create considerable uncertainty,
which, to a certain extent, contract farming can overcome. That is, efficiently organized and
managed contract farming reduces price risk and uncertainty for both contractors and contractees
as compared to buying and selling crops on the open markets. Therefore, the main objective of
this study was to evaluate the contribution of bread wheat contract farming on gross margin level
of the participant farmers at Womberma woreda. Moreover, the specific objectives were to
identify the determinants of farmers‟ participation decision on contract farming and its effect on
the gross margin level of the participant farmers. To achieve these objectives, a cross-sectional
data was collected from 120 sample respondents, and the data was analyzed employing a
treatment effect econometric model. The result of the first stage of the treatment effect model
(probit model) showed that educational level, value of agricultural equipment and the number of
oxen owned were the significant factors of farmers‟ decisions to participate in the program of
bread wheat contractual production. Moreover, the result of the second stage of the treatment
effect model (selection model) revealed that the number of oxen, contract farming experience,
dummy participation and the size of livestock holding were the determinant factors of the gross
margin level obtained from the contractual production. Besides, the result of this sample
selection model depicted that accepting a bread wheat contractual production with cooperatives
resulted in an increase of a gross margin earning Birr 636.32 per ha more than the nonacceptance of it. This empirical analysis revealed that if smallholder farmers get access to a better
market in an alternative and more efficient supply chain, they could benefit from the higher
selling price, which widens the door for the opportunity in the expansion of contract farming
program. Hence, policies that would improve farmers‟ educational level increase farmers‟ asset
holdings and accessing farm power would enhance farmers‟ decisions to participate in bread
wheat contractual farming. In addition, strategies that would increase the accessibility of farm
power would improve income obtained from contractual bread wheat production. On the other
hand, in terms of most measures of endowments like value of agricultural equipment, cultivated
land, number of oxen an total values of crop and livestock products, the bread wheat contract
farming program favored the larger or wealthier farmers rather than the poor one which also
needs a due attention to increase the participation of the poor farmers in the program.
Keywords: Contract Farming; Bread Wheat; Gross Margin; Treatment Effect Model
67
67. Performance of Primary Agri-Cooperatives and Determinants of
Members’ Decision to Use as Marketing Agent in Adaa Liben and Lume
Districts
Daniel Belay and Gezahegn Ayele
Year: 2006
Abstract: The major concern of this study was empirically analyzing the performance of
agricultural cooperatives found in the Adda Liben and Lume districts. Both primary and
secondary data were taken for this study. A two-stage random sampling procedure was adopted
to select 11 agricultural cooperatives and a total of 132 sample respondents from Adaa Liben and
Lume districts. Primary data pertaining to the years 2003/4 and 2004/5 was collected from
selected respondents through structured questionnaire. Of the total respondents, about 58% and
42% were users and non-users of the cooperative as marketing agent for their farm produce (teff)
respectively. Secondary data of the cooperatives for the years 2001/2 and 2002/3 was also taken
to examine the financial performance. Ratios were analyzed taking the two years financial data
(2001/2 and 2002/3). The liquidity analysis showed that the cooperatives under investigation
were below the satisfactory rate (current ratio of less than 2.00). The financial leverage ratio (debt
ratio) showed that the cooperatives under investigation used financial leverage (financed more of
their total asset with creditors‟ fund).The profitability ratio of the cooperatives showed that the
profitability of the cooperatives was weak. The cooperatives earn return on their asset below the
interest rate the financial institution extend credit (7%).
Descriptive statistics were used to compare the socio-economic, the attitudes towards their
cooperatives, services rendered by the cooperatives and other institutional characteristics of the
users and non-users of the cooperative as marketing agent for their teff. Testing differences
between two samples were done using T-test and Chi-square test. The comparison revealed that
there is a significant difference between the two groups of sample farmers regarding their age,
farming experience, land holding, yield obtained from wheat, provision of different services and
perception on future performance of the cooperatives. Tobit econometric model was employed
to identify the factors influencing the marketing of teff through the cooperative in the two
districts. A total of 17 explanatory variables were included in the model in which 10 variables
were found to be significant. Implications of this study are improving the financial as well as
management performance of the cooperatives to face the market competition in the area
especially in purchasing farmers‟ produces, increasing the participation of the farmers in the
cooperative through provision of different services and benefits, appropriation of surplus in the
form of patronage refund, increasing the productivity and specialization of the farmers,
continuation of distribution of fertilizer in credit to the farmers and above all continuous
education and enlightenment of the farmers about cooperative and its benefits are the utmost
priority areas of interventions to improve the performance of the cooperatives in the area.
Keywords: Primary Cooperative; Marketing Agent; Performance; Financial Leverage
Ratio; Profitability Ratio; Tobit
68
68. Determinants of Farmers’ Willing Ness to Pay for the Conservation
Strategy of National Parks: The Case for Simen Mountains National Park
Anemut Belete Abittew and Bekabil Fufa
Year: 2006
Abstract: Developing Countries including Ethiopia are facing serious natural resources
degradation problems. Among the degraded natural resources national parks are one. Local
residents are frequently encroaching these areas in search of farming and grazing lands, fuel
woods and other natural resources for their livelihood. However, these areas are very important
to keep the natural balance and they also generate tourism income. Conservation strategies of
parks often ignore the participation of the local people. However, recent park conservation
strategies favour the participation of local people to attain sustainable conservation of national
parks. This study is conducted to analyze the determinants of farmers willingness to pay, intensity
of payment and expected net loss associated with the conservation of the SMNP by using
Heckman two- stage econometric estimation procedure. Results from the probit model showed
that age of the household head and degradation of farm plots were negatively and significantly
related to the probability of farmers‟ willingness to pay. On the other hand, developmental
projects intervention as a result of the park, total livestock unit, total cultivable land, perception
of environmental degradation and land tenure security were found to positively and significantly
relate to the willingness to pay for the conservation of the SMNP. The results of second stage
estimation for labor contribution intensity showed that, training related to soil and water
conservation, farm plot degradation, satisfaction with conflict resolution mechanism of the park
management and distance from the Woreda town were negatively and significantly related to
labor contribution intensity. However, economic benefits obtained as a result of improved
technologies and total income received from touristic activities was positively and significantly
related to labor contribution intensity. Furthermore, the second stage estimation results of the
expected net loss regression showed that, sex of the household head and existence of farm plots
with in the park boundary are positively and significantly related to expected net loss. However,
age of the household head, number of oxen, distance from the Woreda center, dependency ratio
and willingness of the households to pay were found to negatively and significantly relate to
expected net loss.
Keywords: Conservation; National Park; Willingness to Pay; Probit Model
69
69. Socio-Economic and Institutional Determinants of Small-Scale
Irrigation Schemes Utilization in Bale Zone, Oromiya National Regional
State
Tafesse Andargie Ayele, Bekabil Fufa and Wegayehu Bekele
Year: 2007
Abstract: Today, in Ethiopia, several small scale irrigation schemes have been constructed with
the potential of assuring irrigation water supply to users. Unfortunately, majority of these
irrigation schemes have remained just potential. Schemes have been facing gaps between
designed potential and actual area irrigated and potential and actual yield levels obtained. These
are caused first by ambitious potential levels (area and yield) set and which cannot be achieved in
reality. Second, the vital elements (socio-economic and institutional issues) that affect system
performance have not been adequately addressed. This means great emphasis is being placed on
the engineering aspect of the schemes; however, small scale irrigation schemes utilization is more
than hydraulic in nature. Therefore, the major concern of this study is to identify socio-economic
and institutional determinants of small scale irrigation water use participation decision of farmers
and the intensity of irrigation water use. It is also aimed at assessing the management systems of
small scale irrigation schemes and the yield differences. The study was conducted in two small
scale irrigation schemes situated in Delo Mena and Berbere districts of Bale lowlands,
southeastern Ethiopia by considering a total of 140 farmers. In this study Heckman two stage
econometric analysis, partial budget technique and descriptive statistics were employed. In the
Heckman first stage estimation procedure education, market distance, access to extension, age of
the household head, off/non-farm income, household participation in post scheme
implementation, insect and pest infestation of plots and total family labour in man equivalent
were found to be significant determinants of household irrigation water use decision.
Econometric results of the Heckman second stage estimation procedure showed that access to
improved technology for irrigation, market distance, distance from the main road, total labour in
man equivalent, LAMBDA, insect and pest and post irrigation implementation participation were
found to significantly affect intensity of irrigation water use of the households. Based on the
survey results it is understood that irrigation schemes are poorly operated and managed and
irrigation water use increased farmers yield per unit area and it is beneficial as compared to
without irrigation but the result was not as expected. Thus, consideration of the above variables
would help to improve the irrigation scheme use by the farm households.
Keywords: Small Scale Irrigation; Utilization; Heckman Two Stage Model
70
70. Sesame Market Chain Analysis: The Case of Metema Woreda, North
Gondar Zone, Amhara National Regional State
Kindie Aysheshm Tesfahun, Dawit Alemu, Dirk Hoekstra and Berhanu G/Medhin
Year: 2007
Abstract: This thesis has analyzed the sesame marketing chain particularly the case of Metema
woreda, North Gondar Zone, Amhara Region. Sesame is a major cash crop which is mainly
produced as an export crop. The most commonly grown crops in Metema woreda include;
sesame, cotton and sorghum. The total average cultivated land covered in 2005 by sesame, cotton
and sorghum were 47%, 23% and 26%, respectively. This particular study revealed that 94% of
the sesame production was supplied to the market. The major determinant factors for market
supply were estimated by OLS regression. The sesame market performance was also measured
using indicators of marketing margins and the level market integration. Critical periods for
sesame purchase were identified and 78% of the total marketed supply was transacted during
November, December and January, 2006. Purchases sharply declined after January and not a
single sale was observed during July, August and September. Transport cost was identified as the
major cost component of marketing costs which accounted 31.52% and 60.20% of the total cost
wholesalers and exporters, respectively. The integration analysis indicated that there existed
market integration between Metema, Mekele and Addis Ababa markets, showing relative market
efficiency in these markets.
Keywords: Market Chain; Sesame; Marketing Margin; Market Integration
71
71. Vegetable Market Chain Analysis in Amhara National Regional State:
The Case of Fogera Woreda, South Gondar Zone
Abay Akalu Weldeslassie, Belay Kassa and Dirk Hoekstra
Year: 2007
Abstract: Vegetable as a group of crops from the horticulture category has a very wide
importance both as a source of food and health care. On the contrary, the level of consumption
is very low for reasons of unavailability and market imperfection. Even with limited pocket areas
of production, the product suffered low price and lack of market. As a result, glut and spoilage
are common. Measures to solve the problem were limited partly for reasons of little research and
lack of attention. Hence, this study was initiated to partially fill the gap. The overall objective of
the study was to analyze vegetable market chain with a focus on onion and tomato. The specific
objectives were to assess structure-conduct-performance of vegetable marketing, analyze market
supply determinants, identify problems and opportunities in vegetable production and marketing
For the purpose of completeness demand analysis was also conducted. Formal and informal data
collection tools of both primary and secondary data were used. Econometric models like
Heckman two stages (for market supply analysis) and double-log linear model (for consumption
analysis) were the tools used for the analysis. The cost-revenue calculation results indicated that
on the average a farmer profited 8,191ETB from shallot, 13,141ETB from onion, and 5,111ETB
from tomato per hectare production (Assuming an average price of 1.75 ETB, 1.65 ETB and
0.75ETB per kg prices in that order). However, this potential benefit is under challenges of
imperfect marketing. The market conduct is characterized by unethical practices of cheating and
information collusion that led to uncompetitive market behavior even though the calculated
concentration ratio did not indicate oligoposony market behavior (26.15%). With an estimated
volume of annual production of 324,412 Ql of onion and 40,402 Ql of tomato the estimated
marketed proportion according to the respondents was (95 percent of onion and 86 percent of
tomato). This showed that Fogera is entering to commercialization albeit the challenge in
marketing. For success of the started race, measures to improve marketing like correcting the
malpractices, implementation of defined standard and grades, provision of market information,
networking with the central potential buyers like urban cooperatives or groups at Addis Ababa
seem important. Capacity building for all actors in the chain and strong extension service on
product handling and marketing to farmers should get focus. Volume supplied to market were
also analyzed and the same variables in the case of land allocation for onion also came up
significant for onion supply but un the case of tomato it were experience and number of oxen
owned by the respondent that came up with significant coefficients.
The average monthly level of consumption was assessed when the Fogera produce was at the
market and was used to see some properties of consumers. Based on the 91 sampled consumers
from Gondar, Bahir Dar and Woreta towns it had been revealed that the xvi average monthly
income per household was 1,372.21 ETB. Average family size was 5.7 where the monthly average
consumption of tomato per household per month was obtained to be 5.11 kg of tomato and
onion 7.34 kg onion. A household spent on the average about 44 percent (603.10ETB) of their
monthly income on food from which 7.62 percent (45.96 ETB) was spent on vegetables. For
assessing accessibility, the average distance a certain consumer measured per single feet trip was
taken and the average was estimated from the respondents to be 0.485 hours. More than 97
percent of respondents reflected a strong interest on quality. According to the survey data, on the
average respondents expressed their willingness to add 0.046 ETB per kg for tomato and 0.05
ETB for a kg of onion. Econometric analyses of demand revealed that from the proposed
determinants it was income, purchase frequency, distance, own price and single purchase lot that
were identified to be significant for both vegetables.
Keywords: Vegetable; Market Chain; Structure-Conduct-Performance; Heckman Two
Stage Model; Double-Log Linear Model
72
72. Economics of Urban Dairy Farming in Hawassa Town, Southern
Nations, Nationalities and Peoples Regional State
Wuletaw Belayneh, Legesse Dadi and Belaineh Legesse
Year: 2007
Abstract: Economics of urban dairy was studied on 168 dairy farms consisting of 85 cross breed
(40 medium size and 45 small size) and 83 local breed (30 medium size and 53 small size) cows
owning farms in Hawassa town. Cobb-Douglas production, cost-benefit (C:B) and break-even
ratios were employed to assess resource use efficiency and profitability and financial efficiency of
cross and local breed dairy farms. The regression coefficient with respect to concentrate for
medium size cross breed farms is positive and significant at 5% level. For small size cross breed
farms, the coefficient for dry fodder is positive and significant at 5% level and labor and stage of
lactation are positive and significant at 10% level. On the other hand, for medium size local breed
cows owning farms, the coefficient with respect to concentrate and dry fodder are positive and
significant at 10% level. For small size local breed farms, the coefficient for miscellaneous is
positive and significant at 10% level. The marginal value products (MVPs) and the ratio with
price for concentrate was higher for medium size than small size cross breed farms, one Birr
additional cost on concentrate, there was more than one Birr return for medium size and less
than one Birr for small size cross breed farms. For dry fodder, one Birr additional cost, there was
more than one Birr return in case of medium size cross breed and local breed farms. Whereas,
the return was less than one Birr in case of small size local breed farms. For green fodder, one
Birr additional cost, the return would be more than one Birr for medium size local breed farms.
For labor one Birr additional cost the return would be more than double for small size cross
breed. Regarding miscellaneous cost, one birr additional cost, the return would be double in case
of medium size and more than one birr in case of small size local breed farms. There is difference
between the present and optimum levels of inputs. The optimum levels of inputs with respect to
concentrate are 30.21 quintal and 24.82 quintals for medium and small size cross breed farms,
respectively. For dry fodder, the optimum is 32.70 quintals and 12.84 quintal for medium size
cross and local breed farms, respectively. Whereas, 8.88 quintals for small size local breed farms.
Green fodder, the optimum level is 10.88 quintals for medium size local breed farms. The
optimum level for labor is 403.12 persons day for small size cross breed farms. For miscellaneous
cost the optimum levels are 228.54 Birr and 336.47 Birr for medium and small size local bred
farms, respectively. The C:B results indicated that cross breed farms were profitable (1.0:1.93)
than local breed farms (1.0:1.07). Both medium and small categories of cross breed farms were
profitable (1.0: 1.97 and 1.0: 1.77, respectively). In local breed medium size farms were profitable
(1.0:1.31). The ratio of break-even milk output from the actual milk production for cross breed
and local breed cows owning farms needed 40% of the actual milk production and 37%
additional milk production over the actual milk production to cover fixed cost, respectively.
Cross breed small and medium size farms needed 21% and 39% milk output and local breed
small and medium size farms requires additional 42% and 63% over the actual milk production.
In conclusion, dairy cow's owner should be advised to use the optimum levels inputs and replace
their indigenous cow with cross breed cow. Moreover, the herds should be medium size and
feeding mainly depends on concentrate.
Keywords: Urban Dairy; Cobb-Douglas; Cost-Benefit; Break-Even Ratios
73
73. Risk Aversion Behavior of Farm Households and the Role of Credit
Usage in Kobbo District, North Wollo Zone of Ethiopia
Zegeye Bante Kebede, Bekabil Fufa and Belaineh Leggesse
Year: 2007
Abstract: Risk and uncertainty in agricultural production is one of the factors that hinder
efficient allocation of resources and investment decision under smallholder production system.
This study was carried out with the objectives of examining the various sources of risk and
management strategies of farm households in Kobbo district in two different agro-ecologies and
examining possible risk-return trade off associated with various levels of risk aversion parameters
for credit user and nonuser small framers. The study used the data collected from randomly
selected 116 sample farmers during the 2004/05 production year. The descriptive statistics results
showed that among the possible sources of risk identified by farmers, rainfall variability and
livestock feed shortage problems were considered the first problem in their priority setting by a
large proportion of framer. Though the number of farmer are few, weed infestation, pest
incidence, crop disease, shortage of oxen (due to disease and death), price variability were also
considered as most important sources of risk by the framers. Farmers adapt different
management strategies to overcome the impact of risk. This includes, planting early maturing
crops, and small-scale irrigation, petty trading and labour selling (daily labour). In addition, to
protect insect and pest attacks of crops, farmers used mainly traditional pest control measures
and to some extent insecticides and pesticides chemicals. On the other hand, replanting
(replacing), using own family labour and supports from relative and friends (social networking)
were the strategies farmers used to protect weed infestation problems in the study area. Similarly,
farmers practice maintaining leftover straw and crop residue, move their livestock to other areas
and selling of animals to minimize feed shortage problem. Mean-variance (E, V) analysis using
negative exponential utility function has been chosen as an appropriate methodological tool and
used to determine the optimal production plan of the farmers under income risk. The results of
the model indicated that farmers in the midland area are less risk averse as compared to farmers
in the lowlands with a risk aversion parameter value (λ) of 0.00338 and 0.010, respectively. This
indicates that farmers in the midland area are less risk averse than farmers in the lowland areas.
On the other hand, the results indicate that credit user farmers are less risk averse in the lowland
as compared to the nonuser farmers whereas credit user farmers are more risk averse than the
nonusers in the midland area of the district. The risk aversion parameter of credit users is found
to be 0.0075 and 0.001 in the midland and in the lowland, respectively. Similarly, the risk aversion
parameter of non-credit users is 0.00455 and 0.040 in the midland and in the lowland areas,
respectively. The result of this study also revealed that risk-bearing ability of farmers in different
agro-ecologies is different, entailing area specific development programs based on the attitude of
the farmers to ensure food security status of farm households in the region in general and in the
study area in particular. The study has also shown that among the crops grown in the area,
sorghum has an income risk stabilizing effect and less risky in the midland area of the district
whereas teff and maize have contributed to stabilizing income risk in the lowland. On the other
hand, in the midlands of the district teff and lentil are not optimally used under the farmers‟
condition. Wheat and barley also contribute to income risk of the household. Livestock
production in general was found to be optimal and showed income risk stabilizing effect to the
farm households. One of the critical problems contributing to higher risk aversion values of
lowland farmers in the district is moisture stress problem. In this regard, regional and national
research institutions should focus on drought tolerant crop varieties which stabilize the level of
income of the farmers in the study area in particular and other moisture stress area in general. In
addition, livestock production was found to play income risk stabilizing. Thus, research and
extension activities that are geared to promotion of highly productive livestock technologies
would have high chance of being accepted by the farmers. Non/off-farm activities show
stabilizing effect to the total household income more importantly, in lowland areas where there
are better communication network and marketing facilities. Thus, developing such type of
infrastructure facilities promotes non-farming activities whereby farmers can supplement and
stabilize their household income. Lastly, credit service was found to stabilize income in the
lowland areas where farmers have access to marketing services and increases income risk in the
midland where market and alternative income generating activities are lacking showing that credit
service should be integrated with other rural development services to make use of it in most
productive way.
Keywords: Risk; Aversion Behavior; Credit; Risk-Return Trade Off; Mean-Variance Analysis
74
74. Performance of Coffee Marketing Cooperatives and Members’
Satisfaction in Dale District: SNNPRS-Southern Ethiopia
Demeke Tilahun, Berhanu Gebremedhin and Dirk Hoekstra
Year: 2007
Abstract: People form cooperatives to do something better than they could do individually or
through a non-cooperative form of business. Forming a cooperative will not automatically solve
business problems faced by individual households. This is because of cooperatives are subject to
the same economic forces, legal restrictions and international relations that other business face.
Cooperative members‟ expectations about the types and quality of services that should be offered
and their criteria for performance of these services have a major impact on the level of
satisfaction or dissatisfaction felt. Members‟ satisfaction on the benefits obtained by establishing
cooperatives should be evaluated by the level of the deviation of service expectation from
perceived service performance. Thus, cooperatives performance should be continuously checked
against the level of members‟ satisfaction. This study therefore, aims at assessing the performance
of primary coffee marketing cooperatives and thereby to identify factors that impede members‟
satisfaction. To evaluate the performance of coffee marketing cooperatives in the study area,
financial ratios was computed based on annual audit reports of the cooperatives. Here, efficiency
ratios, income ratios and creditworthiness ratios were calculated as performance indicators. As a
result, almost all the coffee marketing cooperatives in the study area were performing their
business inefficiently. Probit regression model was also employed to identify factors influencing
the members‟ satisfaction taking the overall cooperatives performance, the adequacy and context
of services rendered by the cooperatives, and the major services as function of socio-economic
and institutional explanatory variables. The model analysis revealed that, age, family size, terms of
payment for red cherry and dry cherry were found to be statistically significant at significance
level of 5%, 5% 1% and 5% respectively to influence negatively except the terms of payment for
dry cherry which was influenced positively, the satisfaction of members‟ of the coffee marketing
cooperatives in the study area, with reference to the overall performance of the cooperatives as
dependent variable .In order to improve the coffee marketing cooperatives‟ performance and
marketing efficiency, it is recommended that the members, the management bodies and the staff
members of the cooperatives need to be trained in business and marketing management and the
government should create conducive environment through formulation of sound cooperative
policy.
Keywords: Coffee; Marketing Cooperatives; Performance; Financial Ratio; Probit Model
75
75. The Impact of Ibnat-Belessa Integrated Food Security Program on
Household Food Poverty
Yibeltal Fentie, Degnet Abebaw and Belay Kassa
Year: 2008
Abstract: This study evaluated the impact of Ibnat-Belessa Integrated Food Security Program on
household food poverty using cross-sectional survey data collected from 200 households. The
survey respondents were drawn from both program and non-program areas of Ibnat District,
South Gonder Zone in Northwest Ethiopia. The major research question of the study was “what
would the calorie intake of household have been, had the program not been implemented?” To
answer this question, the data collected were analyzed using a number of descriptive and
econometric tools. Applying a propensity score matching technique, the study found that the
program has increased participating households‟ calorie intake by 30% (i.e., 698 calories)
compared to that of non-participating households. However, the impact of the program on
calorie intake was not uniform across the participating households. The estimated results revealed
that households who are female-headed, who had smaller family size, located nearer to market
places and had some experience in utilizing traditional technologies in farming were more likely
to gain more from the program, ceteris paribus. The thesis discusses these results in detail and
draws their implications for policy makers.
Keywords: Food Security Program; Calorie Intake; Impact; Propensity Score Matching
76
76. Spatial Price Dynamics and Pricing Conduct of Major Wheat Markets
in Ethiopia
Degye Goshu, Admasu Shibru and Belay Kassa
Year: 2008
Abstract: This paper has examined the spatial integration, price dynamics, and pricing conduct of
wheat markets in Ethiopia using 72 months retail price series (July 2001-June 2007) and crosssection data of structural factors of spatial integration. Static and dynamic measures of spatial
integration including correlation coefficients, spatial price spreads, long run multipliers, speed of
spatial price adjustment, and composite index were estimated to measure the magnitude, speed,
and extent of spatial linkages and to identify the relative importance and pricing conduct of
traders. The effects of the assumed structural factors of spatial integration on the level and extent
of spatial linkages were estimated and tested for their importance and relevance. The Ethiopian
wheat markets were found to be generally integrating over time and space sluggishly because of
lack of flexibility and responsiveness of the marketing system. The markets were characterized by
high instability of spatial price differential arising from instability of prices, transaction costs, and
problems of spatial pricing conduct which, in turn, engenders risk and induces asymmetric price
responses between markets resulting in sluggish price transmission and risky spatial arbitrage.
Keywords: Wheat Marketing; Spatial Integration; Price Dynamics; Price Conduct
77
77. The Role and Performance of Primary Coffee Cooperatives in the
Coffee Market Chain: The Case in Wonago and Yirgacheffe Woreda,
Snnprs, Ethiopia
Tinsae Demise and Legesse Dadi
Year: 2008
Abstract: The study was initiated to identifying and describing the coffee marketing channels in
the study area, to estimate the marketing margin, and examine factors that influence farmers‟
decision on marketing of coffee through the cooperatives. Both primary and secondary data were
collected for this purpose. The primary data were collected from 120 cooperative members from
six primary cooperatives in the two woredas. Structural-Conduct-Performance was used to
measure the efficiency of the cooperatives marketing system. Tobit model was used to identify
the socioeconomic and institutional factors that affect the quantity of coffee marketed through
the cooperatives. Moreover, margin analysis was also used to evaluate participants marketing
margin along the cooperative marketing channel.
According to the results of the study, sample cooperatives were characterized by lack of
marketing facilities and services, lower market share, offer lower producer‟s price, lower
marketing margin, higher marketing cost, inefficient marketing operation. In the last four years,
four of the sample cooperatives namely, Finchawa, Konga, Hafursa, Hase haro were earning a
premiums from specialty market. School, electricity and, bridge are among the projects carried
out by the premiums. Tobit econometric model was employed to identify the factors influencing
the marketing of coffee through the cooperative in the two woredas. A total of 11 explanatory
variables were included in the model in which 7 variables were found to be significant.
Explanatory variables namely, position in cooperative, farm size, production of coffee, price
offered to coffee by the cooperative, availability of other traders, distance of the farmer residence
from the marketing centers, and on-farm income were found to significantly influence the
quantity of coffee marketed through the cooperatives. Improving marketing facilities and
services, improving marketing infrastructure, like road and communication, provision of adequate
credit service and training for the cooperatives and its members create favorable conditions for
members to market their coffee through the cooperatives.
Keywords: Performance; Primary Cooperative; Market Chain; Structure-ConductPerformance; Tobit Model
78
78. Impacts of Productive Safety Net Programme on Households’ Assets
Protection: The Case of Habru and Ambassel Districts in Amhara Region,
Ethiopia
Shimelis Mohammed and Bezabih Emana
Year: 2009
Abstract: This study evaluates the impact of productive safety net programme on households‟
assets protection in Habru & Ambassel using cross-sectional survey data collected from 160
households. The sample respondents were drawn from both programme beneficiary and nonbeneficiary households (80 each). The major research question of the study was “what was the
impact of productive safety net programme on households‟ asset?” To answer this question, the
data collected were analyzed using descriptive statistics and econometric tools. Results from
Descriptive statistics indicates programme beneficiary household‟s asset values increased by Birr
1,110 but non-beneficiary households asset values decreased by Birr 182. However, the impact of
the programme was not uniform across the beneficiary households. The estimated results
revealed that the asset value of male headed households increased by Birr 1,545 whereas that of
the female headed households increased by Birr 604. Empirical results using applying a
propensity score matching technique, the study found that the programme beneficiary have
increased their asset value by Birr 1,097 compared to that of the non-beneficiary households.
Keywords: Productive Safety Net Programme; Propensity Score Matching (PSM);
Household Asset.
79
79. Price and Market Chain Analysis of Indigenous Sheep in South
Ethiopia: The Case of Bonga
Yohannis Mulu Tessema, Girma Tesfahun and Derek Baker
Year: 2009
Abstract: Indigenous Bonga sheep play a major role in the livelihood of smallholder farmers in
Adiyo district of Keffa zone, South Ethiopia. They are sources of protein and income as they can
easily be converted to cash. In addition, sheep serve as collateral for loan and a hedge against
crop failure. However, Smallholder indigenous sheep production is characterized by absence of
planned production for market and low level of market participation. The overall objective of the
study is to analytically describe the sheep market and to assess the sheep pricing mechanism in
Bonga area of Keffa zone. Robust Heckman model was applied to determine household specific
factors influencing the decision and level of participation in sheep selling. The model confirmed
that the number of sheep available and size of grazing land affected the level of participation
positively. On the other hand, markets used and exposure to theft influenced participation
negatively. The price efficiency of sheep marketing system in the study area was analyzed using
SCP approach. The Gini based concentration index for primary and secondary traders was found
to be 1.10% and 2.91%, respectively, implying more power disparity among secondary traders.
To examine the performance of primary and secondary traders, net margin was computed for
each type of trader and the result suggests that sheep market is competitive. Moreover, hedonic
model was employed to quantify the relative importance of sheep traits in the determination of
sheep price after controlling for the effects of market location, season and buyers‟ characteristics.
Accordingly, the price variation among sheep was found to be highly explained by differences in
body size. The study recommends the need for policies and institutions to support the
commercialization process. It also advises the important traits to be considered in Bonga sheep
breeding to enhance the commercialization process.
Keywords: Price; Market Chain, Sheep; Indigenous; Robust Heckman Model
80
80. Determinants of Adoption of Soil and Water Conservation Structures at
Farm Level: The Case of Ambassel District, Amhara Region, Ethiopia
Asferaw Mesfin, Berhanu Adenew and Woldeamlak Bewket
Year: 2010
Abstract: Land degradation is one of the major challenges in agricultural production in many
parts of the world, especially in developing nations like Ethiopia. Even though a number of soil
and water conservation methods were introduced to combat land degradation through the
ministry of agriculture, adoption of these practices remains below expectations in some degraded
areas of the highlands of Ethiopia including Ambassel district, South Wollo zone. Therefore, the
objectives of this study were to examine how small holder farmers in Ambassel district, South
Wollo zone are trying to meet the challenge of soil erosion and what determines to undertake soil
and water conservation investment which enhance sustainable productivity of farming. Both
primary and secondary data were collected for this purpose. The primary data were collected
from 160 sample households possessing 784 farm plots from 5 kebeles in Ambassel district
proportionately and randomly. Tobit model analysis at plot level was used to estimate factors that
influence the adoption of soil and water conservation structures. The findings indicated that the
farmers‟ conservation decision and the intensity of adoption of improved soil and water
conservation structures were influenced by physical, social, economic and institutional factors,
most of which are policy related. The results from the Tobit model analysis suggested that area of
cultivated land decreased the probability of using improved soil bund conservation structures.
Household heads participation in planning and evaluation process of conservation related
projects and availability of labor increased the use of the three types of improved conservation
structures while household heads age decreased the use of the three types of improved
conservation structures. Education level of head of households has positive impact on the use of
improved soil bund and improved stone bund conservation structures. Farmers who obtained
knowledge about soil and water conservation practices through extension/training seminars as
well as those who owned land are likely to adopt SWC structures. Two broad policy implications
emerge from these findings. The first implication is that there is a need to provide extension
education that demonstrates relative benefits of various SWC technologies to stimulate their
adoption. The second implication which emerges from the significance of land security in
adoption of SWC structures is the need for a clear land policy that provides rights of owning land
among small holder farmers, which will promote adoption of SWC structures.
Keywords: Soil; Water; Conservation; Tobit Model
81
81. Determinants of Households’ Demand for Credit Service from “Rural
Savings and Credit Cooperatives”: The Case of Western Amhara Region,
Ethiopia
Biressaw Emiru Tessema and Beyene Tadesse
Year: 2010
Abstract: Rural Savings and Credit Co-operatives (RUSACCOs) in Amhara National Regional
State has been established primarily to mobilize loanable fund and provide credit service, and
secondly to link the rural people with other financial institutions. However, the real situation
existing in the region indicates that even the loanable fund mobilized by RUSACCOs from their
members has not been adequately refinanced and utilized as expected. The main objective of this
study is to identify the determining factors that affect the household‟s credit use from rural
savings and credit co-operatives. The study was conducted in the western part of the Amhara
region in three districts namely, Dejen district in East Gojjam, Burie district in West Gojjam and
Fogera district in south Gonder administrative zones. The survey data collected considered two
groups of RUSACCO members, credit user and non-user households. The results of study
revealed that there is a significant difference between credit user and non-user household groups
in terms of most of demographic, socio-economic and institutional characteristics at different
levels of significance. For detailed analysis the Heckman two-stage econometric model was
applied. In the first stage, the results of probit model reveal that factors such as level of education
of household head, sex of the household head and access to training positively and significantly
affect farmers‟ participation in RUSACCO‟s credit service. On the other hand, land holding size,
amount of fertilizer used and cash income from livestock production activity affect negatively
and significantly the participation in the use of credit from the co-operative. In the second stage,
results of Ordinary Least Squares (OLS) show that level of education of household head, age of
household head, family size and cash income from livestock production activity have significant
effect on magnitude of the credit required by the rural households from RUSACCOs. The study
concludes that RUSACCOs should primarily focus on awareness creation on the importance of
credit for market oriented farm and non-farm business, building their skill of entrepreneurship to
provide effective and efficient financial services and products. Promoting adult education
through coalition with the Co-operatives Promotion Agency, Ministry of Education and Office
of Women‟s Affair will have considerable effect to induce increased demand for credit service
from RUSACCOs.
Keywords: Demand; Credit; Saving and Credit Cooperatives; Heckman Two Stage Model
82
82. Performance of Microfinance Institutions and Factors Affecting the
Intensity of Loan Repayment in Eastern Ethiopia: The Case of Dire,
Harar and Oromia Credit and Saving Share Company (Haramaya Branch)
Hiwot Abayneh, Bekabil Fufa and Beyene Tadesse
Year: 2010
Abstract: Currently micro financing is one of the most powerful tools for combating poverty
primarily through accessing micro loans to the poor section of the society. The number of MFIs
serving the poor in Ethiopia has grown to 30 within a short period of time. Providing sustainable
financial services that are efficient with no or little loan default is essential to have viable MFIs.
Thorough investigation of the various aspects of loan defaults and performance of the MFIs is of
great importance both for policy makers and for the MFIs. The major concern of this study was
to identify the major socio-economic and institutional factors that affect loan repayment
performance of clients of Dire, Harar and OCSSCO (Haramaya Branch) MFIs. The main data
used for this study was collected from sample clients from the three MFIs through structured
questionnaire. A total of 220 clients were included in the final analysis. In addition, secondary
data were collected from secondary sources and various ratios and indicators were used to
measure the performance of the MFIs. Two years data were used to study the performance of the
three MFIs considered. The primary data were analyzed using descriptive statistics to obtain
firsthand information about the characteristics of the households. Two-limit Tobit model was
also employed to analyze factors influencing loan repayment and intensity of loan recovery
among clients of the three MFIs. In the model a total of fourteen explanatory variables were
included. Out of which eight, five, and seven were found to be significant in the case of Dire,
Harar, and Haramaya MFIs, respectively. In the case of Dire MFI the significant variables were
age of the client, level of educational, celebration of social ceremonies, loan size, loan diversion,
supervision of loan utilization and repayment, suitability of loan repayment period, average
monthly income from the business financed by the loan. Age of the client, loan size, loan
diversion, experience in credit use, and other source of income were the five significant variables
of Harar MFI. On the other hand, age of client, level of education, supervision of loan utilization
and repayment, experience in credit use, average monthly income from the business financed by
the loan, other source of income and group size were those variables found to be significant in
the case of Haramaya MFI. Based on the performance indicators used, it was found that although
the MFIs reported a positive return on their asset and equity they were not operationally as well
as financially self-sufficient. Therefore, consideration of the performance indicators and factors
affecting loan repayment performance would enable MFIs and policy makers to have information
on how to make the MFIs sustainable and as to where and how to channel efforts in order to
minimize loan defaults.
Keywords: Microfinance; Loan, Repayment; Two Limit Tobit Model
83
83. Determinant of Agriculture Loan Repayment Performance: The Case
of Development Bank of Ethiopia
Mulugeta Shiferaw and Bezabih Emana
Year: 2010
Abstract: This thesis is concerned with analysis of factors affecting agriculture loan repayment
performance of borrowers of Development Bank of Ethiopia. The study was based on secondary
data from DBE and primary data collected from 140 borrowers of agriculture credit. These data
were drawn from head office agriculture credit borrowers‟ files. The data were used to describe
socio-economic characteristics of the respondents and some institutional factors. T-taste and chisquare were used to measure the potential power of continuous and discrete variables
respectively in differentiating non defaulters and defaulters. Logit model was used to identify
variables which determine loan repayment performance. The age of borrowers, monitoring
/follow-ups made by the bank/, loan issuing time (time taken to process a loan),marital status of
borrowers, managerial experience of the project manager and education level of borrowers were
statistically significant factors affecting repayment of agriculture loan of DBE. The analysis of
partial marginal effect shows that education status of borrowers is the most important factor
among the other five variables. The policy implications of the study are: setting minimum age of
borrower in loan application format; intensifying monitoring and follow-up work in order to
provide information and technical assistance for the established project, giving due attention to
minimize bureaucracy that prolongs the loan processing time and improving customer
recruitment system to emphasize on education status of borrowers, managerial experience of
project managers and marital status of borrowers, which deserve special attention.
Keywords: Loan; Repayment; Development Bank; Logit Model
84
84. Analysis of Technical Efficiency of Wheat Production: The Case of
Smallholder Farmers and Commercial Farms in Bale Zone of Oromia
Kaleab Kebede and Berhanu Adenew
Year: 2010
Abstract: This paper analyzes technical efficiencies of wheat producer smallholder farmers in
Agarfa woreda and commercial farms in four woredas (Ghinir, Gasera, Sinana and Agarfa) of
Bale zone. The study also attempted to determine some plot/farm specific, institutional and
socio-economic characteristics which influence technical efficiency of wheat production. A
stochastic frontier production function is applied on cross sectional data of 206 smallholder
farmers‟ plots and 32 commercial farms which were surveyed during 2009 production season and
hence two separate SF models were set. Cobb-Douglas type production function was found to
best fit both data sets. The maximum likelihood estimates for the smallholders reveal that the
elasticity of output with respect to land, labour, seed and herbicide were positive and significant
while parameter estimates for fertilizer and oxen power were positive but not significant. On the
other hand, coefficients of SFP function of the commercial farms revealed that seed,
agrochemicals, tractor hours and DAP are positively and significantly related to wheat output
whereas, area and labour are negative and significant. The negative coefficients of these inputs
could probably because they are overused more than the other accompanying inputs. Results of
mean technical efficiency of wheat production in smallholder farmers‟ plots and wheat producing
commercial farms are 65.5 and 82 percent respectively. The study also revealed that 77 and 99
percent of the variations in wheat output from the best practice in the smallholders and
commercial farms, respectively, are due to inefficiency. Further, the estimated coefficients in the
technical inefficiency model for the smallholders‟ plots indicate the positive effect on technical
efficiency of education, gender, extension, cooperative membership, weeding and organic
fertilizer use. However, a negative relationship between technical efficiency and land
fragmentation, distance of the plot from homestead and illness of household members is found.
Factors strongly affecting efficiency level of the commercial farms are found to be experience of
managers, distance of the farm from main road, value of farm machineries owned by the farms
and provision of mechanization services by the farms. On the contrary, average age of farm
machineries is the only factor that has a significant negative effect on their technical efficiency.
To improve technical efficiency for wheat production, for the smallholders this study
recommends facilitating the provision of extension services, strengthening the capacity of
multipurpose cooperatives, introducing effective weed control mechanisms, directing efforts
towards the realization of improved health status in the area are some to mention. The proposed
recommendations for the commercial farms are; to facilitate experience sharing between
managers, farms should apply land quality improvement practices and they should acquire farm
machineries.
Keywords: Technical Efficiency; Wheat, Production; Commercial Farms; Cobb-Douglas
Production Function
85
85. Analysis of the Technical Efficiency of Groundnut Production: The
Case of Smallholder Farmers in Harari Region
Abdulkadir Sulaiman and Setotaw Ferede
Year: 2010
Abstract: The thesis analyses the efficiency of households in the production of groundnut in
Harari National Regional State using cross sectional data collected in 2009/10 production year.
To carry out the analysis, a stochastic Cobb-Douglass production function, in which technical
inefficiency effects are specified to be functions of socioeconomic variables, is estimated using
maximum likelihood method. The cross sectional data used for the analysis were collected from a
sample of 150 farm households during the 2009/2010 cropping year. The study predicted
technical efficiency to vary from 28 to 92 percent with an average of 62%. This implies that
production can be increased by 38% through efficient use of readily available resources. Among
the inefficiency model variables considered farming experience, extension contact, soil fertility
status, land fragmentation, cropping pattern and distance of the rural kebele have the expected
signs and significantly affect technical efficiency of groundnut producers. Farm experience,
extension contact and perception of soil fertility were found to significantly reduce the technical
inefficiency of groundnut producers. However, land fragmentation, cropping pattern and
distance of the rural kebele from Harar city were found to significantly increase technical
inefficiency of groundnut producers. Results of the study suggest that by improving technical
efficiency of farmers, problem of food security could be handled with a great extent using the
existing resources and adopting best practices of relatively efficient farmers.
Keywords: Technical Efficiency; Groundnut; Cobb-Douglas Production Function
86
86. Technical and Cost Efficiencies of Ethiopian Agro Food Processors
Haileeyesus Habtegebriel and Bekabil Fufa
Year: 2010
Abstract: As the demand for processed foods increases with the number of population, it
becomes important to increase the amount of processed foods using different mechanisms. For
developing countries, where there is a limited amount of resources, increasing the volume of
processed foods requires to increase the efficiencies of food processing firms. In Ethiopia, the
food processing sector in general is not efficient. Thus, investigating the sources of the problems
become more essential so as to design appropriate policies and development efforts. The
objectives of this study were to estimate the level of technical and cost efficiencies of food
processing firms in Ethiopia, to identify the sources of technical and cost inefficiencies in the
sector under consideration and to see the improvements in efficiencies of food processing firms
through time. Towards this end, two stages stratified purposive sampling techniques were used to
draw 70 samples throughout the country using a panel data for the years 2001-2006. CobbDouglas Stochastic frontier production and cost function models were used to evaluate the
technical and cost efficiencies of sample firms respectively. The test result indicated that there are
both technical and cost inefficiencies in the production of processed foods. The estimation of the
frontier models with the inefficiency variables indicated that the mean technical and cost
efficiencies of the firms in production of foods are 0.877 and 1.37 respectively. This implies that
production could be increased by 12.3 percent and cost could be reduced by 37 percent given the
existing level of inputs, price of inputs and technological level. These inefficiencies in food
processing however could be reduced if the determinants of technical and cost efficiency are
identified. The estimated stochastic production and cost efficiency models indicated that total
amount of raw materials, capital used, energy and labor are significant determinants of
production of processed foods whereas total amount of output, price of raw materials, price of
capital and price of labor are significant determinants of cost of production. The negative signs of
incentive, capacity utilization, location, ownership type and years of service in the technical
inefficiency effects model indicated that they are positive determinants of technical efficiency of
firms whereas the positive sign of years of service squared and time indicated that there is
parabolic relation between years of service and technical efficiency and a decrease in technical
efficiency of the firms through the study period respectively. As far as the determinants of cost
inefficiency are concerned, proportion of local raw materials and location are positive
determinants of cost efficiency whereas years of service and size of the firm are negative
determinants of cost efficiency. The positive sign of size squared and time in cost inefficiency
model indicated that there is a parabolic relationship between size and cost efficiency and an
increase in the level of cost efficiency of processing firms through the study period respectively.
Furthermore, private firms found to be more cost efficient than public firms. Based on the
results of the study, some recommendations which should be addressed both at government as
well as firm levels could be forwarded. In order to promote efficient utilization of resources and
cost efficient production, it is preferred to have larger firms instead of smaller ones, the
government should speed up the pace of privatization process, promote the availability of local
raw materials to food processors and government policies could aid food processor firms for
smooth flow of inputs, spare parts and outputs. At enterprise level, firms are strongly advised to
erect their firms based on prior capacity estimation from market analysis and utilize their capacity
fully during operation, prior selection of best locations with respect to their facilitation for the
industrial sector and provide incentives to their employees. Furthermore, newer firms are advised
to share the experiences of middle age firms and older firms are advised to inspect their plant
frequently for replacement of older spares before it leads to the failure of firms in operation.
Keywords: Technical Efficiency; Cost; Food Processors; Cobb-Douglas Production
Function
87
87. Analysis of Technical Efficiency of Wheat Production on Vertisol: The
Case of Enebsie Sar Mider Woredain East Gojjam
Wondimagegn Muche and Bezabih Emana
Year: 2010
Abstract: This study analyzed the technical efficiency of smallholders in the production of wheat
on vertisol in Enebsie Sar Mider woreda, east Gojjam of ANRS. It is based on cross-sectional
data of 150 sample farmers collected during 2008/09 production year. A Cobb-Douglas
functional form was used to estimate technical efficiency in wheat production. The maximum
likelihood estimation of the frontier model with inefficiency variables shows that the mean
technical efficiency of farmers in the production of wheat on vertisol is 73.9%. This indicates that
farmers can increase their level of wheat production on average by 26% with the existing state of
input used. Thus currently farmers are not using production inputs efficiently in such a way that
they produce the maximum output level. The results also revealed that wheat area, fertilizer,
compost, use of modern BBM and draught power have positive coefficients and significantly
determine the production level. Farmers could increase their production level by increasing these
inputs. The test result indicated that 62% of the output variation of wheat yield is due to
technical inefficiency of farmers. This inefficiency, however, can be improved if factors that
determine technical efficiency level of farmers are identified. The MLE result also indicates that;
age and its square, farm size, fertility status of the plot, livestock holding, training, and family size
are significantly determine the technical inefficiency of farmers. The negative coefficient of farm
size, fertility status, livestock and training implied that improving these variables reduces the
technical inefficiency of farmers in the production of wheat on vertisol. Moreover, age of the
farmer appeared with the negative coefficient which implied that as the age of the farmer
increases, the technical inefficiency of the farmer will reduce. While the positive coefficient of age
square and family size implied that, the increment in these factors increases the technical
inefficiency. The low level of technical efficiency together with the existence of the determining
factors for the inefficiency of farmers has important policy implications. They enables the
government as well as other concerned parties to involve for the improvement of the production
level of wheat on vertisol with the existing level of input use and thereby reduce the food
insecurity problem in the study area in particular and in the region in general.
Keywords: Technical Efficiency; Wheat, Production; Cobb-Douglas Function
88
88. Technical Efficiency of Poultry Farms: The Case of East Shewa Zone
of Oromiya
Mulugeta Wondimu and Dawit Alemu
Year: 2010
Abstract: The thesis analyses the efficiency of farmers in the production of egg in Akaki, Ada‟a
and Loume Districts in East Shoa, Oromia Regional State using cross sectional data collected in
2009/10 production year. Cobb- Douglas functional form is used to estimate the efficiency in egg
production. The data for the study were collected using structured questionnaire administered on
samples of 108 poultry egg producers The results showed that, the TE of farmers varied between
0.133 and 0.946 with a mean of 0.823. This implies that production can be increased by 17.7
percent given the existing technological level. Thus currently farmers are not using production
inputs efficiently in such a way that they give their maximum potential. About 28% of the
farmers surveyed had technical efficiency score of <80. This inefficiency however, can be
improved if factors that determine efficiency level of farmers in the production of egg in the
study area are identified. The estimated stochastic production frontier model indicates that stock
of birds and amounts of feed are significant determinants of production level. The positive
coefficients of these parameters indicate that increased use of these inputs will increase the
production level to a greater extent. Hence given these inputs are used to their maximum
potential, introduction and dissemination of these inputs will enhance the production level of egg
in the area. The estimated SPF model together with the inefficiency parameters shows that
education and experience significantly determine efficiency level of farmers in egg production in
the study area. The negative coefficient of those variables means these factors are important in
determining the existing efficiency of farmers positively and significantly. The findings show that
further productivity gains linked to the improvement in TE may still be realized in poultry egg
production in East Shoa zone of Oromia.
Keywords: Technical Efficiency; Poultry Farms; Cobb-Douglas Function
89
89. Impact Assessment of Input and Output Market Development
Interventions by Ipms Project: The Case of Gomma Woreda, Jimma Zone
Alemu Tolemariam, Moti Jaleta and Berhanu G/Medhin
Year: 2010
Abstract: The study evaluates the ex-post impact of input and output market development
interventions on total household net income, intensity of input use and productivity, marketed
surplus and market orientation behavior of the households. Moreover, the study has assessed the
change in the institutional and organizational aspect of market of the woreda due to market
interventions. For quantitative analysis both program participant and non-participant respondents
were drawn and cross-sectional survey data were collected from 200 households in Gomma
woreda. Propensity score matching method was employed to analyze the impact of the project
interventions quantitatively. This method was checked for covariate balancing with a
standardized bias, t-ratio, and joint significance level tests. Furthermore, sensitivity analysis of the
estimated participation effect to unobserved selection bias was checked using the Rosenbaum
bounds procedure. Results show that participation in market development interventions has a
significant, positive and robust impact on the outcome variables measured using different
indicators. However, for some outcome variable indicators such as household income from
coffee commodity, input use for apiculture and fruit production, productivity of improved hives,
land allocation for coffee and number of hives possessed by the household are positive but
statistically insignificant. The sensitivity analysis also shows that the impact result estimates are
insensitive to unobserved selection bias. The qualitative assessment shows that the main changes
were the private sector (including agro-industry) involvement in supplying inputs by opening
alternative village shops as well as the development of community based input supply system,
linking the farmers/private traders to the input importer and potential buyers and innovative
credit provision specifically meant to enhance input and output marketing interventions.
Furthermore, different platforms specifically for the apiculture and sheep fattening has been set
by the community which help them to abide by. To hedge against the risk involved in sheep
fattening practice, a kind of community based insurance program was established. In order to
alleviate access to market, establishing farmers‟ cooperatives and linking this cooperatives or
individual farmers to potential buyers (including exporters) was done. The thesis finally discusses
these results in detail and draws some recommendations.
Keywords: Impact; Input-Output Market; IPMS Project; Propensity Score Matching
90
90. The Impact of Food Price Inflation on Rural Households’ Food
Security in Moyale and Shashemene Districts of Oromia Regional State, in
Ethiopia
Amsalu Mitiku, Bekabil Fufa and Beyene Tadesse
Year: 2010
Abstract: The food price inflation in current phase has provoked deep concern regarding food
security in Ethiopia. The impacts of food price inflation are strongly felt in drought-prone areas
of the country compared to areas with relatively good rainfall distribution. Thus, identifying and
analyzing the impact of food price inflation on household food security are needed to guide
policy decisions, appropriate interventions and integrated efforts to combat impact of food price
inflation. In this thesis an attempt is made to assess the impacts of food price inflation and
determinants of food security in Shashemene and Moyale districts of Rift Vally area based on
data collected from 100 randomly selected households from each district. For this purpose
descriptive statistics, AIDS model and nutrient elasticity, binary Logit, were employed. Of the
sampled households, 36% in Shashemene and 48% in Moyale districts were food insecure. This
study also estimates price and food expenditure elasticity of demand for six food groups in study
areas by applying the linearized Almost Ideal Demand system to the latest household survey data.
In estimation, particular attention is paid to the effects of demographic characteristics on food
demand patterns. The results indicate that cereals, sugar, meat are price elastic in Shashemene
while cereals, coffee, meat are price elastic in Moyale district. The estimates of LA-AIDS result in
Shashemene also reveal that household total food expenditure per AE, price of vegetables and
sex of household head have significant effects on food demand patterns. Similarly, in Moyale
district own-price of cereals, total food expenditure per AE, family size and dependency ratio
have significant effects on food demand patterns. The estimates of overall loss in food
consumption and calorie intake as a result of food price inflation shows that cereals have
significant effect on household food security and consumption welfare. On the other hand, the
binary Logit model results on the major determinants of food security showed that among 12
explanatory variables included in the model, 5 variables in Shashemene and 4 variables in Moyale
were found to be significant.
These significant variables in Shashemene include family size, age of household head, total farm
income, off- farm income and livestock holding, where as in Moyale district variables like family
size, total farm income, off- farm income and distance from market center were significant
determinants of household food security status. Identifying and understanding the specific and
most important effect of food prices inflation on household food security and the other
determinants of food security are important to combat food security problems at household
level. The finding of this study suggest that in designing ensuring food security and reducing the
impact of food price inflation on the poor households require the consideration of the above
factors.
Keywords: Impact; Food Price; Inflation; Food Security; AIDS Model; Logit Model
91
91. Impact Evaluation of Input and Output Market Development
Interventions: A Case Study of Improving Productivity and Market
Success (IPMS) Project in Bure District
Habtamu Yesigat Ayenew, Moti Jaleta and Girma Tesfahun
Year: 2010
Abstract: Farmers are usually seen as the weak link in the chain from production to consumption
even though farming is in a pivotal position and the activity is the core of the economy of
Ethiopia. Market development is expected to initiate the farm and farming to respond for market
signals and so as to develop its market orientation. This study was initiated to evaluate the impact
of input and output market development by Improving Productivity and Market success (IPMS)
of Ethiopian Farmers project in Bure district. The study took a random sample of 100 participant
and 100 non-participant households using two stage sampling procedure with a proportional to
size technique. Different demographic, social, economic and access to institutional support
service variables which are theoretically supported to influence the participation decision of the
household to the project and the outcome of interest were used to calculate the probability of
participation and to match the participant households with the non-participant households.
Descriptive statistics and econometric statistical tools were used for analyzing the data and
answering research questions. The Propensity Score Matching (PSM) result show that participant
households are better-off in net farm income by an average amount of 7369 birr. Productivity
measures of households indicate that participants are more productive and have had an average
difference of 2578, 1944, 7422, 5063.23 birr/hectare in wheat, bean, pepper and potato and 80
birr per hive, 1621 and 1057 birr of gross margin for cattle and sheep per year. Participant
households are better-off in marketed surplus by an average of 8192 birr than the nonparticipants. Input use of the households is different either from stock or in terms of purchased
inputs and participants use more with an average of 3988 birr and 3764 birr from the stock and
purchased inputs respectively. It is also evidenced that participants are more market oriented than
the non-participant households. Therefore, it is advisable to further extend and scale out the
approach to wider range in area coverage and beneficiary farmers.
Keywords: Bure; IPMS; Market Development; Propensity Score Matching; Sensitivity
Analysis
92
92. Impacts of Productive Safety Net Program on Households’ Assets
Protection and Creation: The Case of Haramaya and Kersa Districts in
Oromiya Region, Ethiopia
Tewodros Yeshiwork and Bezabih Emana
Year: 2010
Abstract: This study evaluates the impacts of productive safety net program on households‟
assets protection and creation in Haramaya and Kersa districts using cross-sectional survey data
collected from 197 households. The sample respondents were drawn from both program
beneficiary and non-beneficiary households (98 beneficiaries and 99 non-beneficiaries).
Propensity score matching techniques and descriptive statistics were used to analyze the data
collected. Results of descriptive statistics indicate that the program beneficiary household‟s asset
values increased, on average, by Birr 4,099 but non-beneficiary household‟s asset values increased
by Birr 1,099. However, the impact of the program was not uniform across the two districts. The
estimated results revealed that the asset value of beneficiaries in Kersa district increased by Birr
5,382 whereas the asset values of beneficiaries in Haramaya increased by Birr 2,868. Applying a
propensity score matching technique, program beneficiary households increased their asset value
by Birr 1,779 compared to that of the non-beneficiary households.
Keywords: Productive Safety Net; Propensity Score Matching (PSM); Household Asset;
Transfer Modalities; Oromiya Region
93
93. Impact Assessment of Input and Output Market Development
interventions of the IPMS Project: The Case of Alaba and Dale Woredas,
SNNPRS, Ethiopia
Yemisrach Getachew, Moti Jaleta and Berhanu Gebremedhin
Year: 2010
Abstract: Agricultural marketing is the main driving force for economic growth. But it is poorly
developed in most developing countries. The main cause for the poor development of the
agricultural production is the poor development of the agricultural marketing. To overcome this
problem the government of Ethiopia has developed a master plan to enhance market-oriented
production. To realize this plan different projects have been developed and implemented in
different parts of the country. Of these projects, Improving Productivity and Market Success of
Ethiopian farmers is the one being implement by ILRI at 10 pilot learning woredas in the
country. Though it is implemented for about five years its impact has not been evaluated so far.
This study therefore evaluates the impact of input and output market development interventions
of the project at Alaba and Dale PLW, SNNPR on institutional and organizational, input use and
productivity, total net income, marketed surplus and market orientation of the participant
households. The study has used cross-sectional survey of 200 sample households which was
taken from both Alaba and Dale intervention PAs. A propensity score matching method was
applied to assess the impact of the project on outcome variables on the treated households. The
intervention has resulted in positive and significant effect on level of input use on the treated
households. This increased amount of input use made participants earn to on average a total net
income of about birr 1,483 at Alaba and birr 2,228 at Dale form the commodities of intervention
over the counter parts. It also enabled them to supply more produce to the market and to be
market oriented. Based on the results obtained the continuity/ presence of such market
development interventions (input and output) has a paramount importance in the development
endeavors of the country.
Keywords: Input and Output Market Development Intervention; Propensity Score
Matching; Pilot Learning Woreda
94
94. Women Empowerment and Its Impact on Agricultural Productivity:
The Case of Kersa District in Eastern Hararghe Zone, Ethiopia
Tadele Melaku Challa and Bezabih Emana
Year: 2010
Abstract: The overall objective of this study is to analyze the impact of women empowerment
on agricultural productivity. Cross sectional data collected from 150 randomly selected
respondents were used in this study. Seven key indicators of empowerment combining both
quantitative and qualitative data, covering four dimensions of empowerment were chosen for this
purpose. Finally, a cumulative empowerment index (CEI) was developed by adding the obtained
weighted scores of the seven empowerment indicators based on which the respondent where
classified in to empowered and non-empowered women. The distribution of CEI demonstrates
that 38.7% of women are empowered at varying level of empowerment whereas, 61.3% of the
women are concentrated in non-empowerment category. Moreover, Cobb Douglas (CD)
production function was applied to estimate the productivity difference in agriculture between
the two groups. Results of the study show that empowered women farmer (EWF) own more
productive resources such as land, oxen, labor and other agricultural inputs as compared to nonempowered women farmer (NEWF). The estimate of CD production function show that oxen,
herbicide use, land size, male and female labor was statistically significant for both EWF and
NEWF. The comparison of the Marginal Value Product (MVP) with the factor cost showed that
EWF and NEWF could increase productivity using more herbicides, male and female labor. The
agricultural productivity difference between EWF and NEWF was about 68.83% in the study
area. However, if NEWF had equal access to the input as EWF, gross value of the output would
be higher by 23.58% for NEWF. Land size, oxen and seed difference between EWF and NEWF
made about 9.1%, 7.73% and 6.6% productivity difference in agriculture, respectively. The study
recommends the need for improving access of NEWF to inputs such as oxen, seed, land,
herbicides, male and female labor and intervening in the provision of greater opportunities for
the sustainable empowerment of women.
Keywords: Women; Empowerment; Productivity; Cumulative Empowerment Index;
Cobb-Douglas
95
95. Impact of Livestock Credit on Poverty Status and Asset Possession of
Rural Households: The Case of Fadis Woreda in East Hararghe Zone,
Oromia Regional State
Wubshet Genene Biru and Ayalneh Bogale
Year: 2010
Abstract: Rural poverty is a complex, interlocked and multi-dimensional phenomenon. Its
causes, intensity and magnitude vary depending on various aspects of people living environment.
Different scholars attach different meanings to poverty. Hence, systematic study and analysis of
these specific characteristics of certain people is important to plan effective poverty reduction
strategies and evaluate effect as well as impact of different anti-poverty programs on people living
condition. In view of this, this study was carried out at Fadis woreda with the specific objectives
to identify determinants of poverty, analyze impact of livestock credit and simulate the effect of
change in significant determinants on households‟ poverty level. In order to attain this aim, four
livestock credit intervention kebeles selected purposively and from the list of credit users 70
credit user households were systematically selected. Additional 70 noncredit user households
were also selected from this kebeles randomly as control group. Primary data referring to the
production year 2008/2009 were collected from sample respondents through personal interview
using structured household questionnaire. The questionnaire includes detailed household
characteristics, food and non-food consumption expenditures, livestock credit indicators as well
as other household asset and community infrastructures. For analytical purpose, descriptive
statistics, poverty measurement, multivariate ordinary least square regression, and simulation
techniques were applied. In order to look in to specific characteristics of credit user and non-user
groups‟ univariate analysis (t-test and chi-square) tests of significance were used. Accordingly, by
using household consumption expenditure per adult equivalent as indicator of welfare, the factors
that determine poverty status of households were identified. The result of the multivariate
regression shows that, out of thirteen explanatory variables used in the model, coefficients of
nine variables found statistically significant at less than 10 % probability level and hence
determine household consumption expenditure level (welfare) and poverty status in the study
area. These variables include family size in AE, highest education grade completed by any
household member in years, size of land cultivated per AE, number of crops cultivated, age of
household head in years completed, livestock holding in TLU/AE, amount of credit received,
frequency of extension visit per month, and number of sick individual in the year. However, the
sign of the last two variables was not as expected.
The food and total poverty line of the study area measured by CBN method found to be 716
and 1039 birr per adult equivalent per year respectively at December 2006 constant price. Using
this district level poverty line, poverty profile analysis reveal that 38.18% of sampled households
which is about 38.11 and 38.25 percent for credit non user and user groups respectively were
poor based on head count index. As well, the poverty gap and severity index of the whole sample
were found to be 6.26 and 1.4 percent respectively. The poverty gap and severity index for credit
non user and user groups are 6.63 and 5.88 percent and 1.29 and 1.51 percent respectively. The
simulation result indicates the specific contribution and magnitude in increasing consumption
expenditure and reduction of different poverty indexes as result of marginal change in significant
explanatory variables that affect poverty status. All simulations, reduction of family size to mean,
increase education level of household members, increase land holding, increase in number of
crops grown, increase in livestock holding TLU, expand credit to reach all and increase amount
of credit provided have an effect of increasing mean household consumption expenditure and
hence reduce poverty level of households. Thus, policy makers should need to consider these
specific factors in planning of poverty reduction strategies and interventions in the study and
similar rural areas depending on magnitude of their contribution.
Keywords: Impact; Livestock Credit; Poverty; Asset; Multivariate OLS
96
96. Value Chain Analysis of Fairtrade Coffee: The Case of Bedeno Woreda
Primary Coffee Cooperatives, East Hararghe Zone, Ethiopia
Wubshet Chala, Ayalneh Bogale and Legesse Dadi
Year: 2010
Abstract: This study was initiated to analyze value chain of Fairtrade coffee with equal emphasis
on the conventional value chain in Bedeno woreda. The specific objectives of the study were the
following. To describe coffee value chain actors, their function and chain wide relationship, to
estimate marketing margins along the Fairtrade and conventional coffee value chains, to examine
the differences between Fairtrade certified and conventional coffee value chain in terms of
income and social benefit to the farmers and to examine factors that affects the farmers to supply
their coffee to Fairtrade certified cooperatives. The data were generated from individual interview
using pre-tested questionnaire. Both primary and secondary data were for this study. The total
household survey amounted to 130 smallholders from Bedeno woreda and the sample has been
selected based on purposive-random sampling. A two-stage random sampling technique was
applied. Descriptive statistics such as t-test, chi-square, means and percentage were employed to
examine the existence of statistically significant differences between the cooperative members
and non-members. Moreover, margin analysis was also used to evaluate participants marketing
margin along the Fairtrade and conventional value chain. Value chain analysis approach used to
describe actors in conventional and Fairtrade value chains and their respective functions. Tobit
regression model was used to identify the factors influencing farmers‟ marketing of coffee
through the certified cooperatives. The comparison using t-test and Chi-square test revealed that
there is a significant difference between members and nonmembers of primary cooperative
regarding their family size, farming experience, and yield obtained from maize and sorghum, use
of extension service and market information. Value chain analysis show that the major actors in
conventional and Fairtrade value chains in the survey period were farmers, collectors, primary
cooperatives, suppliers, exporters and union. The sample cooperatives namely, Ilili Derartu and
Era Debal were earning a premium from Fairtrade market. New school, additional class room for
schools, store house and office are among the projects carried out by the premiums and potable
water is under construction. Result obtained from Tobit model indicate that among thirteen
explanatory variables, output of coffee, farm income, age of household head, coffee farm size,
years of membership and education of household head were found to be significant. Among the
significant variables except year of membership other variables were found to be positively
related to the farmers‟ marketing of coffee through the certified cooperatives. As a concluding
remark, strengthening the cooperatives through capacity building and technical assistance and
enabling them to provide different service for their members and increase members participation,
paying dividend timely and only to members of cooperative, appropriate and effective extension
services on management of coffee.
Keywords: Value Chain; Fair Trade; Coffee; Primary Cooperatives; Tobit Regression
97
97. Groundnut Value Chain Analysis in Eastern Ethiopia
Gezahagn Kudama Fanto and Ayaleneh Bogale
Year: 2010
Abstract: This study presents the value chain analysis of groundnut, based on the data generated
from 124 groundnut producer households, 9 farmer traders, 15 wholesalers, 3 cooperatives, 3
groundnut oil processors, 3 exporter and 15 roasted nut retailers. The Cobb-Douglas production
function result gives emphasis to seed rate, labor, improved seed, membership to cooperative and
proximity to market as crucial factors influencing groundnut productivity. In first stage of
Heckman treatment model result, family size, proximity to cooperative, farm size, credit,
cooperatives membership and accessed to buyer preferences information are key determinants
for channel choices. In Second stage of the treatment effect model family size, farm size, credit,
off/non-farm income, livestock and extension influence significantly household‟s gross income
from groundnut production. Furthermore, the model shows that participation in value chain
marketing channel yields considerable gross income gains over the traditional channel
counterpart. With regard to profit distribution per annum, the poorest group /producers and
roasted nut retailers/ share insignificant returns living the lion share for dominant groups like
exporters, wholesalers and processors. Therefore, the findings of the study underscore inputs
allocations and distribution networks, improved seed supply, linking producers to markets, timely
updated and sustainable market information services, quality control improvement and
cooperatives expansion for policy implications.
Keywords: Value Chain; Groundnut; Cobb-Douglas; Heckman Model
98
98. Malt Barley Market Chain Analysis: The Case of Wegera District,
North Gonder Zone, Amhara National Regional State
Fantahun Ameshe Defersha and Admasu Shibru
Year: 2010
Abstract: Ethiopia is known to be the center of diversity of many cereal crops including barley.
There are many indigenous barley cultivars which are adaptive to ecological situations of the
country. Those areas suitable for the production of barley are generally thought to be convenient
for the production of malt barley. Currently, the demand for Malt in Ethiopia is being met
through imports (that accounts for about 69%) and partially through domestic production.
Recently the Amhara regional state has launched a coordinated and integrated program so as to
enable the barley producing farmers produce malt barely for commercial purpose. Despite the
presence of a system that encourages malt barley production in the region, in general, in the past
periods, farmers could not trust in the sustainability of the marketing system. Hence, this study
was initiated to identify the problems and opportunities in the marketing system of malt barley in
Wegera district. The overall objective of the study is to assess the malt barley market chain. The
specific objectives are to assess structure-conduct-performance of malt barley marketing, analyze
the determinants of marketable supply, and identify the constraints and opportunities in the malt
barley production and marketing systems. A three stage sampling technique was employed for the
selection of the malt barley growing PAs, climatic zone (Woina Dega and Dega) and respondent
farmers. To achieve the aforementioned research objective, the primary data were collected from
120 randomly selected farmers. A sample of 11 primary cooperatives, 1 union, and 10 traders
were also considered. The main actors involved in the malt barley marketing system are
producers, farmers‟ cooperatives (primary and union), wholesalers, retailers, malt factories, in
breweries and consumers. The market at woreda level is very much concentrated revealing an
oligopolistic market structure. The major determinants of household level marketable supply of
malt barley include the quantity of malt barley consumed, other crops sold, marketing cost of
malt barley, animals sold, Cost of malt barley inputs used and quantity of malt barley produced.
Some of the major production and market constraints are input supply, price setting, lack of
extension services, lack of finance, inadequate malt barley supplied, poor market information and
dissemination, poor storage and transportation, The study result reveals that, having opportunity
to expand the production of malt barley, stakeholders should have clear line of relationships,
contract farming to be made to promote, provided short and long term loans, cooperative leaders
and traders need training about business and management, and the traders should to be supply
malt barley to the factory.
Keywords: Malt Barley; Market Chain; Structure-Conduct-Performance
99
99. Determinants of Red Pepper Market Supply: The Case of Jabitehinan
Woreda, West Gojjam Zone, Amhara National Regional State, Ethiopia
Amare Tesfaw and Dawit Alemu
Year: 2010
Abstract: For its economic importance and versatile use, pepper is widely grown in the country
and becoming one of the major sources of cash for household producers. But little attention is
paid to the problems limiting the production and the marketing conditions, which in turn affect
the market supply of the commodity. Failure to solve these problems was attributed to
insufficient researches and lack of emphasis to enhance commercialization. This study was
therefore initiated to partly fill this gap. The overall objective of the study was to understand the
emerging red pepper marketing system in the study area for proper identification of the existing
constraints and opportunities for improved contribution of the crop in household and woreda
level livelihood options. The specific objectives were identification of factors that affect market
participation decision of households, determination of factors affecting the volume of market
supply of pepper, investigation of the role of different marketing actors along the marketing
chains and determining the marketing margin. In order to acquire the relevant data, formal and
informal methods of data collection were accomplished. To differentiate factors affecting the
market participation and the amount of pepper sold, the Heckman two- stage econometric model
was employed. The Probit model result revealed that market participation decision of households
was significantly affected by the amount of pepper produced (positively at less than 1%), age of
household heads (negatively at less than 10%), distance from market center (positively at less
than 5%), number of livestock owned (positively at less than 5%), number of oxen(negatively at
less than 5%), education level of household heads (positively at less than 1% significant level) and
income from non-farming activities (positively at less than 10% level of significance). Similarly,
the second stage of the Heckman sample selection model result showed that the amount of
pepper marketed was determined significantly and positively by the amount of pepper produced
and access to extension service at less than 1% and education level of households at less than
10% level of significance respectively. Productivity of other crops and access to credit services
negatively affected the amount of pepper sold at significance levels of less than 1% and 5%
respectively.
Keywords: Red Pepper; Market; Supply; Market Chain; Margin; Heckman Two Stage
Model
100
100. Market Chain Analysis of Red Pepper: The Case of Bure Woreda,
West Gojjam Zone, Amhara National Regional State, Ethiopia
Alemnew Abay, Moti Jaleta and Berhanu Gebremedhin
Year: 2010
Abstract: In Bure, West Gojjam zone, Amhara region red pepper is a major cash crop which is
mainly produced by smallholder farmers. The basic objective of this study was to analyze
profitability of red pepper production, determinants of household‟s marketable surplus and the
degree of market integration in major regional intermediate markets using primary data collected
from households through semi structured questionnaire. The producers‟ survey result revealed
that all farmers supply the product to the market and 85.3% of red pepper produced by the
sampled farmers in the production year was supplied to the market. Farmers in the Woreda do
not have any standard measure to identify the quality of pepper. They usually identify quality of
red pepper by its color, pest damage, size, shape, odor and foreign matter. In the Woreda, the
four largest traders handled 30.2% of the total volume of purchased pepper. Hence the structure
of the pepper market in the study area was somewhat competitive. The profitability analysis also
indicates that red pepper production was profitable. The average amount of red pepper supplied
to the market by producers was 5.24 quintal with minimum amount of 0.5 quintals and maximum
of 19 quintals. The variables that influenced the marketable supply positively were agricultural
experience, access to credit, yield, land size, current year and lagged prices. Among the significant
variables yield and access to credit were highly significant at less than 1% significant level. The
result of market integration analysis also shows that pepper markets in the western part of the
region were integrated. The major problems identified are low access to improved inputs,
collateral problem to get credit, poor storage facilities and low price of produce. To solve these
problems increased access to improved inputs, strengthening credit institutions, strengthening of
cooperatives, education and training, price information and establishment of storage and
processing facilities are recommended.
Keywords: Market Chain; Red Pepper; Market Integration; Profitability Analysis
101
101. Microfinance and Women’s Empowerment: The Case of Harar
Microfinance Institution
Zegeye Habtemariam and Bekabil Fufa
Year: 2010
Abstract: The impact of credit used on women client participating in HMFI has been examined
in this study by comparing the situation of women before and after their participation in the
program. The impact was assessed using various indicators like women‟s economic contribution
to the household income, household assets, household consumption and educational
expenditures, their perceived contribution and self-confidence and various household decisionmaking. The study employs bath primary and secondary data. The primary data were obtained
from thirty married women who had family through interview using structured questionnaires. In
addition, secondary data were collected from documents of HMFI. For the data analysis,
descriptive statistics such as percentage was used to describe institutional and socio- economic
characteristics of the respondents‟. Furthermore, inferential statistics Such as, χ -test and mean
difference test were employed to compare the above indicators before and after participation in
the HMFI program. Generally, the impact of participating in HMFI on the empowerment
process of women is positive for most women using the above indicators. For these women,
participation in HMFI is observed to contribute to their social and economic empowerment, or it
has at least drawn women from their disempowerment position. The impact on household
income, consumption, education is significant and positive as a result of microfinance
intervention. Microfinance also contributed significantly to women clients‟ self-esteem and
confidence. This might be due to the increased level of acceptance and appreciation both at
household and community level. But, still the unequal access to and control of costly assets such
as residential house, television, land, etc., is a predominant feature of the men in the area both
before and after program participation. The microfinance programs have also resulted in
increased women‟s responsibilities and effort through increased work burden. Most of the
dynamics resulting in improvements in the level of empowerment are seen to be a result of
women‟s involvement in small income generating activities.
Keywords: Impact;
Consumption
102
Microfinance;
Women
Empowerment;
Household
Income;
102. Determination of Optimal Livestock-Crop Enterprise Combination
and Resource Allocation in Agro-Pastoral Areas of Afar Region: The Case
of Ayssaita and Afambo Districts
Arega Shumetie and Ayalneh Bogale
Year: 2010
Abstract: Pastoralists residing in the peripheral part of Ethiopia are fully dependent on livestock.
But now-a-days many of this type of life styles are on the way to change because of adopting a
more diversified and mixed economic system that reduces risk. Practicing crop production
provides different inputs to the livestock management and at the same time it may acquire inputs
from the livestock sub-sector. Agro-pastoralists in Ayssaita and Afambo produce some cereal
crops mainly maize and sorghum and different vegetables along with their livestock. LP model
was employed on data collected from 145 households from the two districts to know optimal
livestock-crop enterprise combination and resource allocation of agro–pastoralists. The result
showed that households of Ayssaita generate a gross margin of 29,560 Birr (93.1% of the total)
and Afambo 24,609 Birr (80.7% of the total) per year per household from their current practice
of crop production. Incorporation of livestock with crop production improved gross margin of
agro-pastoralists in the study area. The full integrated model result showed that there is a
potential of earning gross margin of 37,503 Birr and 43,895 Birr per household per year for agropastoralists in Afambo and Ayssaita districts, respectively. The percentage share of the crop
enterprise in the optimal gross margin is 87.7% for Afambo and 80.6% for Ayssaita. The crop
production sub-sector supplied residue for the livestock management as feed and introduction of
livestock into the model reduced expenditure of households for renting of draft power. The
overall result of the full integrated current practice and optimal model result showed that
integrating crops with animal husbandry can provide better gross margin than practicing livestock
sub-sector alone. The model result also suggested that agro-pastoralists should provide emphasis
on activities that have either lower working capital requirement or high marginal value product to
the objective function. Households of the study area do not utilize their resources as to the
potential level. Land for cereal crops and vegetables and human labor are surplus inputs whereas
draft power and working capital are binding constraint of households in the study area. Most of
the resources are more productive in Ayssaita district than Afambo. Shortage of capital,
knowhow, grazing land, market problem, price increment of inputs, invasion of the grazing and
crop land by prosopis juliflora etc., are among the major factors that affect the productivity of the
two enterprises in the study area. A sensitivity test was conducted to test the stability of the
optimal plan with provision of change in quantity of some inputs. Increment in working capital
was found to be more effective on gross margin of households. The sensitivity tests for change in
working capital showed that households of the two districts provide an active response through
changing the size of land for crop production especially production of pepper whereas
pastoralists‟ response was through ox keeping. Expansion of the available land for grass and
perennial crops was more effective on changing the gross margin of agro-pastoral households.
The sensitivity of households‟ gross margin for changing price of outputs showed that agropastoral households of Afambo and pastoralist were more sensitive than Ayssait.
Keywords: Livestock; Crop; Resource Allocation; Agro-Pastoral; Linear Programming
Model
103
103. Analysis of Factors Determining Farmers’ Participation in Local Seed
Production: The Case of Womberma and Guagusa Shekudad Woredas of
Amhara National Regional State
Mesay Yami, Teklu Tesfaye and Adam Bekele
Year: 2010
Abstract: In Ethiopia, increasing crop production is one of the pre-requisite conditions to attain
food self-sufficiency. Most of the required increases in crop production now and in the future are
likely to come from yield growth rather than area expansion. Therefore, among others further
deployment of improved varieties is critical. Seed production and multiplication in Ethiopia is
largely left to a state run seed enterprise. Very few NGOs and private traders are engaged in seed
production and multiplication. However, agencies such as the state run Ethiopian Seed
Enterprise (ESE) have been unable to satisfy the seed demand of the vast majority of the nation‟s
farmers who are small-holders and subsistence farmers. In order to meet the differentiated and
complex needs of the small-scale farmers‟ seed demand, farmer-based seed production and
marketing scheme (FBSPMS) has been designed and under implementation in Ethiopia since
1997. The Amhara National Regional State (ANRS) has also designed and implemented
programs that have been expected to increase the supply of improved seed. The major
component of the program was the farmer-based seed multiplication and distribution scheme.
Considering the lack of well-organized information on the pace of the aforementioned activity in
the regional state, this study is intended to identify the determinants of farmers‟ participation in
local seed multiplication and to assess the level of farmers‟ participation in wheat and potato seed
multiplication, especially on the farmers of Womberma and Guagsa Shekudad Woreda. To
achieve the aforementioned research objective, primary data was collected from 120 randomly
selected respondents through structured questionnaire. Furthermore, to supplement the primary
data source, secondary data were also collected from relevant institutions and organizations. The
survey data was analyzed using double-hurdle model. Analyses of determinants of farmers‟
participation in local seed multiplication identified the superiority of the two-step, double-hurdle
model as compared to the one step, Tobit model in describing farm households' involvement in
both wheat and potato seed multiplication. Results of the double-hurdle model pertaining to the
determinants and intensity of farmers‟ participation in local seed multiplication indicated that
these two sequential decisions were influenced by different set and levels of determinant factors.
To this effect, access to hired labour, distance to the main road, access to input supply,
participation in field days, participation in training, and distance to the nearest market center and
wealth status in terms of livestock size impacted the first binary decision of whether or not to
participate in local seed multiplication farming. On the other hand, farmers' decision on the
proportion of land allocated to seed multiplication (intensity of adoption) is found to have been
significantly influenced by number of oxen owned, access to complementary input, participation
in field days, access to hired labour, size of cultivated land and access to market information.
Therefore, responsible government organizations need to give attention to strengthen and
leverage government extension service and rural institutions to promote awareness creation of
the existing seed multiplication technologies by arranging field day visit. In addition to this,
efforts should be aimed at increasing the capacity of institutions engaged in the making of
agricultural productivity enhancing inputs. Emphasis needs to be given to enacting policies that
promote the development of institutions that ensure the availability of farm inputs as well as
enhancing the access to basic inputs either through sale or distribution is necessary for
meaningful participation of farmers in local seed multiplication.
Keywords: Farmers; Local Seed; Production; Participation; Double Hurdle Model
104
104. Determinants of Farm Diversification and Households’ Production
Decisions under Risk: The Case of Eastern Hararghe Zone, Ethiopia
Wondimagegn Mesfin Bekabil fufa and Jema haji
Year: 2010
Abstract: Farming is a risky business because it is affected by uncertain factors such as weather,
diseases and market conditions. The issue of crop diversification and producers‟ decision
behavior under risk and uncertainty has received much attention in academic literature. Having
this in mind, the study was designed to identify and rank the major sources of risk and coping
mechanisms, examine the effect of various farm, operator, household and other characteristics on
the level of on-farm crop diversification and examine the enterprise combination and resource
allocation pattern under risk in the study areas. For the study, both primary and secondary data
were gathered from different sources. Primary data were collected from 175 households
randomly and proportionately selected from 10 Kebeles of Haramaya and Kombolcha districts.
Descriptive statistics, econometric and risk programming models were used to address the
objectives of the study. The sources of risk ranking analysis using importance indices shows that
drought, pests and diseases, lack of bargaining power, lack of disease resistant varieties, soil
fertility and high prices for inputs are prominent sources of risks. In order to safeguard
themselves against these risks, farmers are using enterprise diversification, irrigation and other
traditional strategies. More importantly, enterprise diversification was found to be a self-insuring
strategy used by farmers to protect against risks. Results of the Tobit regression model provided
evidence that farmers having more number of extension contacts and larger livestock number are
more likely to specialize on their farms. However, farmers having access to market information
and irrigation, who own machinery and those having larger number of farm plots are more likely
to diversify their farms. The results of the study also indicated that farmers in Haramaya district
are more likely to diversify their farms than those in Kombolcha district. The risk programming
model result signifies that farmers in the study areas are risk averse and they are much oriented
towards risk-minimization on their farms. Besides, the study results indicated that diversification
is good risk reducing strategy but always at the cost of reduced gross margin which indicates
there is a trade-off between risk and return. In light of the findings of the study, the extension
system should include risk-minimization as a strategy instead of sticking only to profit
maximization goal. Investment on soil conservation, irrigation projects and development and
dissemination of disease and drought resistant varieties for the farmers are inevitable so as to deal
with the prominent risks. Due to positive effect on crop diversification, providing farm
machinery through easy loans and improving access to market information should be given
attention. Proper application of fertilizer or shift to substitutes will reduce its risk effect. In
addition, there is need for mutual efforts by the government, research and extension agencies so
as to make available new technologies and policies that would make farmers operate within the
developed risk-efficient farm plans. Future research efforts directed towards estimating costs and
benefits of diversification, use of bio-economic models and incorporation of livestock in the risk
programming models are appreciable.
Keywords: Enterprise Diversification; Sources of Risk; Management Strategies; Risk
Programming; Risk Aversion; MOTAD
105
105. Socio-Economic Impact of HIV/AIDS and Willingness to Participate
in HIV/AIDS Prevention of Rural Households: The Case of Harari
Regional State
Adugna Gemeda and Ayalneh Bogale
Year: 2010
Abstract: Although HIV/AIDS infection is a global problem, the epicentre of the disease lies in
Africa. In fact, about 70 percent of the global HIV/AIDS infected population can be found in
sub-Saharan Africa and Ethiopia is one of the hardest hit countries by the pandemic. Hence, this
study was initiated with the aim of estimating impact of the pandemic on income, labor force,
expenditure, saving and farm production of rural households, and to assess their willingness to
participate in HIV/AIDS prevention activities by contributing money and /or labor and further
assess their willingness of participation by their sexual practice behavioral changes. The study was
carried out in Harari region and data were collected from a total of 160 farm households (80
affected and 80 non affected households). Impact of the HIV/AIDS on income, labor force,
expenditure, saving and farm production of rural households was estimated using descriptive
analysis. The study highlighted that HIV/AIDS resulted in the reduction of total income of the
household, total cultivated land and total livestock holding. In addition HIV/AIDS was depleted
the financial resources of households in that they were forced to spend money on medical related
expenses. Binary and multinomial logit models were employed to analyse the households‟
willingness to participate and the choice (decision) among alternative HIV/AIDS prevention
behavioral change groups respectively. A total of 10 explanatory variables for the binary logit
model and 9 for the multinomial logit models were used out of which 6 variables were significant
to affect the willingness of households in HIV/AIDS prevention practices. These are education
level of head of the household, AIDS knowledge, use of family planning, assistance given to
household, stigma and discrimination and dependency ration. The descriptive statistics on
household‟s behavioral preferences decision indicated that 34.4 percent preferred stop sex
groups, 38.8 percent preferred to be restricted to one partner such that limiting sexual partners
will lower the risk of spreading, 15.6 percent preferred to have condom as a prevention
mechanism of the virus from being able to pass from one body to another and the rest the of
respondents were classified in no behavioral changes group. The result of the multinomial logit
analysis revealed that community support, education, sex of the head of the household, use of
family planning, employment, assistance from HIV/AIDS prevention and AIDS knowledge was
found to be a significant to affect preference decision at different significance level. Taking the
specific preferences of households into account in planning HIV/AIDS prevention would help
policy makers to come up with projects that could win acceptance by households. The findings
of this study indicate that any effort in promoting HIV/AIDS prevention activities should
recognize the socio-economic and health extension technological characteristics.
Keywords: Impact; HIV/AIDS; Prevention; Participation; Multinomial Logit Model
106
106. Willingness to Pay for Improved Domestic Water Service: The Case of
Bullen Town, Metekel Zone, Benishangul Gumuz Regional State,
Ethiopia
Biressaw Makonnen and Wogayehu Bekele
Year: 2010
Abstract: The aim of the study was to identify the determinants of household‟s willingness to
pay (WTP) for improved water supply (connection of private water point) and estimate their
Maximum willingness to pay (MWTP). A sample of 200 households cross-sectional to 2010 was
surveyed using contingent valuation method. Tobit model (hetroscedastic Tobit regression) was
applied to explain household‟s preferences for improved domestic water service and de-rive
estimates of MWTP for an improved water supply. The result confirmed that household income
had a positive and statistically significant impact on WTP for improved water supply. Time
elapsed for fetching, monthly expenditure for water, illness (existences of water borne diseases
such as cholera, typhoid, and diarrhea), and educational level of household (literate respondent)
were positively associated with WTP amount for improved water supply. Age of respondent was
also found statistically significant when regressed on willingness to pay amount for improved
water service but with a negative sign, implying that as a household gets older, the less that
she/he is WTP to have improved water service. The survey result revealed that majority of
households (94.5%) were willing to pay for improved water supply and arithmetic mean of
MWTP was 47.45 cents per Jerkan (20 liters) which was higher than existing official tariff (30
cents) for the same volume. This implies that there is scope to improve water service levels in the
study area. Generally, estimates of WTP obtained in this study indicated the possibility
implementing the proposed improvement of water supply service at Bullen town.
Keywords: Water Service; Willingness to Pay; Domestic Water Supply; Tobit Model
107
107. Willingness to Pay for Improving and Protecting Multiple Use Water
Resources: The Case of Kersa District, Eastern Hararghe
Eden Dagnachew Kibebew and Ayalneh Bogale
Year: 2010
Abstract: Multiple use water systems are among the management systems and approaches which
was introduced by different non-governmental organizations to alleviate problems existing in the
water sector. Developing, operating, maintaining, protecting and improving multiple use water
resources always require joint action of users. But, the users are mainly smallholders who are
scattered in settlements and do not have viable institution that can adequately operate, monitor,
protect, improve and maintain the water resource by organizing and mobilizing the effort to
ensure their sustainable profits. Besides domestic consumption, water is used for livestock and
irrigation of high-value crops like khat (Catha edulis) and vegetables in Eastern Hararghe. A more
integrated, multiple-use approach can maximize the health benefits and productive potential of
the available water supplies leading to increased income, improved health and reduced workloads
for women and children. The aim of this study was to estimate and to identify factors which
determine households‟ willingness to pay for improving and protecting multiple water use
schemes. The study was conducted in Eastern Hararghe Zone, Kersa district, on purposefully
selected Peasant Associations because multiple water use schemes only exist in the peasant
associations. A total of 140 random sample households were interviewed by using contingent
valuation method. Descriptive statistics and econometric model were used to analyze the data.
The result of the Probit model shows that sex of the household head, extension contact of the
household, access to MUS, time to fetch water, total income, distance to market, access to credit
were the significant factors affecting willingness to pay for improving and protecting MUS. The
study also estimated average willingness to pay to be around 205 Birr per year per household. The
policy implications of the study include increasing the number of springs, increasing extension
contact including training on water use practice, facilitate supply of improved production inputs,
improve market and marketing system and delivery of micro finance activities.
Keywords: Water Resource; Willingness to Pay; Probit Model
108
108. Willingness to Pay for Rainfall Based Insurance by Smallholder
Farmers in Central Rift Valley of Ethiopia: The Case for Dugda and Mieso
Woredas
Hiwot Teshome Abebe and Ayalneh Bogale
Year: 2010
Abstract: Current climate variability is already imposing significant challenge to Ethiopia.
Therefore, farmers have faced income variability in almost every production season. Problems
associated with dependence on rain fed agriculture are common in Ethiopia. Smallholder farmers‟
vulnerability from such income variability is also common. Over the years, a range of risk
management strategies have been used to reduce, or to assist farmers to absorb, some of these
risks. Since insurance is potentially an important instrument to transfer part of the risk, this study
try to describe the nature of weather related risks faced by smallholder farmers, assess small
holder farmers willingness to pay for the rainfall risk insurance and examine factors that affect
the maximum farmers are willing to pay for the rainfall risk insurance. The data was collected
from 161 sample households from the two woredas of the study area using closed ended value
elicitation format followed by open ended follow up questions. The study uses Logit model to
estimate the mean willingness to pay in the close ended format in addition with Tobit model to
examine factors that affecting small holder farmer willingness to pay as well as intensity of
payment. The mean willingness to pay values are found to be 129.98 and 183.41 birr per hectare
for the open and close ended formats respectively. The total willingness to pay for the study area
was found to be birr 5,740,244 per year. The Tobit model shows six potential explanatory
variables affect the willingness to pay value. Income of household and ownership of radio have
positive and significant effect on the value of willingness to pay, whereas off-farm income, age of
household head, number of livestock owning and availability of public and private gifts have
negative and significant effect on willingness to pay value. If the rainfall risk insurance premium
is affordable and households have enough information about the service they are willing to pay
for the service. Eventually policy makers need to be aware that socio-economic and institutional
characteristics of households influence the willingness to pay for rainfall risk insurance services.
Keywords: Insurance; Rain Fall; Willingness to Pay; Tobit Model; Logit Model
109
109. Demand for Agricultural Mechanization/Tractorization/ by
Smallholder Farmers: The Case of Arsi Zone, South-East Oromia
Regional State
Tamrat Gebiso Challa and Admasu Shibiru Keraga
Year: 2011
Abstract: There is problem of disproportion between the population growth and agricultural
production growth in Ethiopia. Among the most frequently mentioned major causes of country‟s
chronic food insecurity problems are low levels of productivity due to low levels of improved and
production enhancing technologies utilization and high risk due to adverse environment. Draught
power is one of the most important agricultural inputs that mostly affect farm productivity.
Ethiopian agriculture is facing clear-headed problem of agricultural labor-forces as number of
DAPs per HHs is decreasing due to prevailing animal diseases, shortage of feed and migration of
rural agricultural forces to town. Among all others, agricultural mechanization/tractorization/ in
particular/ is one of the most important technologies to solve such problems. Therefore, the
major aim of this study was to empirically examine factors influencing willingness of farmers to
use tractor, WTP for the service and intensity of tractorization in Arsi zone of Oromia. In
addition to these, main problems that hinder the supply of tractor rental service were also
assessed. Data was collected from two districts (Hetosa and Lode-Hetosa) of Arsi zone which are
among the major wheat and teff crop producing area. Structured questionnaire was used to collect
data from 160 sample households based on 2010/11 production season. Simple checklist was
also employed to collect the problems on service provision of tractor rent. CVM was employed
to elicit the WTP of households. In addition to this secondary data was used to supplement the
primary data collected from different bodies. Partial budgeting was employed to analyze
profitability of farm using tractor rental services and tractor rental service use was found to be
profitable than animal power use farming. Tobit model was employed to analyze factors that
affect willingness of farmers, WTP for tractor rental service and tractorization intensity (farm size
that farmers willingly allocate under tractor operation). A total of 15 explanatory variables were
included in the model out of which age of the household, type of house of a household, number
of farm plots, current service quality being delivered to farmers, educational background of the
household, landholding of the household, size of the land suitable for tractor operation, tractor
rental station distance from household, household‟s experience of using tractor rental service,
non/off-farm income, farm income and extension contact found to be influential in determining
willingness to pay of the farmers. The result revealed that household‟s head education level, age,
landholding of the household, number of farm plots, size of farm suitable for tractor operation,
amount of non-farm income, livestock unit in TLU, annual farm income and labor supply of
family the significant variables that influence the intensity of mechanization. Human Capital
development strengthening of extension services, strengthening the Supply of Tractor and
availing credit for purchase of small tractors are the main implication of this research findings in
order to mechanize/tractorize/ and solve agricultural labor shortage and enhance the agricultural
productivity of the country.
Keywords: Agriculture; Mechanization; Demand; Tractor; CVM; Tobit Model
110
110. Determinants of Credit Repayment and Fertilizer Use by Members of
Cooperatives in Ada District, East Shoa Zone, Oromia Region
Abebe Mijena, Jema Haji and Moti Jaleta
Year: 2011
Abstract: The major aim of this study is to empirically examine factors influencing timely credit
repayment and input use (especially fertilizer) by smallholder farmers in Ada district of East Shoa
zone. Data for this study were collected both from primary and secondary sources during 2009.
A two-stage random sampling procedure was adopted to select five agricultural cooperatives and
a total of 130 sample respondents from the district. Descriptive and inferential statistics were
used to describe socio-economic and institutional characteristics of the respondents which
revealed that there is significant mean difference regarding Age, family size, cultivated land size,
number of livestock owned, on-farm income, amount of fertilizer used and saving habits. Tobit
model was employed to identify factors influencing loan repayment performance of the
households. The result of the model showed that family size, livestock ownership, on-farm
income, non-farm income and saving habit were the statistically significant factors influencing
timely loan repayment performance positively. On the other hand, multiple linear regression
model was used to identify the variables that contributed to the amount of fertilizer use among
respondents. From a total of 12 explanatory variables included in the model, education level,
number of draught oxen owned, cultivated land size, family size and saving habit of the
respondents were found to be the most significant variables contributing to the amount of
fertilizer use positively, while age of the household head influences it significantly and negatively.
Therefore, the study suggests that improving the livestock sector, educating households and their
family member, giving attention in promoting non-farm activities in rural areas and promoting
saving habit are some of the important priority areas for the success of future intervention
strategies aimed at the promotion of production increasing technologies and sustainable credit
facilities.
Keywords: Credit; Repayment; Fertilizer Use; Cooperatives; Tobit Model
111
111. Technical Efficiency of Eastern and Rift Valley Route Rose (Rosa
Hybrida) Cut Flower Farms in Awash Melkassa, Bishoftu and Ziway
Districts of Oromia Regional State, Ethiopia
Mohammed Aman and Jema Haji
Year: 2011
Abstract: As the concept of technical efficiency is critical in measuring firm‟s performance, this
study is designed to evaluate technical efficiency in rose cut flower production. Particularly, this
study aims at measuring and identifying the level of input use efficiency in greenhouse standard
(single stemmed) rose cut flower production of the Eastern and Rift Valley route, in Awash
Melkassa, Bishoftu and Ziway districts of the Oromia regional state, Ethiopia. Excluding open
field, summer and spray rose growers, in same districts, a census was conducted for 28 standard
rose cut flower farms under plastic greenhouses. The data used in this study were drawn from a
survey conducted from December 7, 2010-January, 2010/11. Besides, descriptive, mathematical
programming and econometric models are used to analyze data. The mean land size under plastic
greenhouses for the three districts was 19.17 ha with minimum and maximum holding size of
4.98 and 42 ha respectively. While, the mean labor employment, for the study districts, is found
to be 536 workers. Furthermore, rose plant seedlings are most inefficiently utilized while land and
water are efficiently utilized by the rose cut flower farms. An input oriented non-parametric DEA
method is used to determine the relative technical, scale and overall technical efficiencies of the
rose cut flower farms and a Tobit model is used to identify sources of efficiency differentials
among farms. Accordingly, district level technical efficiencies, using VRS, obtained are 1.00, 0.90
and 0.94 for Awash Melkassa, Bishoftu and Ziway respectively. Besides, the mean technical, scale
and overall technical efficiency indices are estimated to be 0.92, 0.61 and 0.58, respectively for the
twenty eight greenhouse rose cut flower farms. And hence, the major source of overall technical
inefficiencies appears to be scale rather than pure technical inefficiency. Among factors assumed
to affect technical efficiency level, farming experience and years of formal schooling of the farm
manager‟s increased technical efficiency of the rose cut flower farms. On the other hand, the age
of the farm decreased technical efficiency level of the farms in the study areas. The marginal gain
of technical efficiency is dominated by years of formal schooling of the farm manager with 10.3
% and followed by its farming experience with 4.8%. These results indicate that due attention has
to be given to human resource development through formal schooling and experience sharing
among the farms.
Keywords: Technical Efficiency; Cut Flowers; Mathematical Programming; Tobit Model
112
112. Analysis of Technical Efficiency of Lentil (Lens Culnaris Medikus)
Production: The Case of Gimbichu District, Eastern Shewa Zone of
Oromia, Ethiopia
Mekdes Abera fereja and Bezabih Emana
Year: 2011
Abstract: This study investigates the level of efficiency and factors affecting inefficiency of lentil
production in Gimbichu district, East Shewa zone of Oromia Regional State, Ethiopia. The study
was based on cross sectional data collected from a randomly selected 200 sample farmers for the
production year 2008/2009. Cobb-Douglas production function was found to adequately fit the
data. The estimation of frontier model with inefficiency variables revealed that farmers in the
study area on average attained efficiency level of 77.5%. This is an indication that there is an
opportunity to increase lentil production by about 22.5 % through efficient use of existing
technologies. The test result also shows that 73.9% of deviation of lentil output from the frontier
is attributed to technical inefficiency of the farmers. Among inputs considered, land, seed,
pesticides and oxen power were found as positive and significant determinants of lentil
production. The positive coefficients of these parameters indicate that increased use of these
inputs will increase the production level. The estimated inefficiency factors model shows that
fertility status of the land, extension service, accessibility of credit, use of improved seed used, sex
of the farmer, land size, and household size are significant determinants of inefficiency of the
farmers in the study area. Negative coefficient of fertility status, extension service, accessibility of
credit, use of improved seed, and sex indicates that improvement in these factors results in a
significant decrease in level of inefficiency and a higher efficiency of male farmers. Besides,
positive coefficients of land size, and household size indicate that as size of land and household
increases, efficiency will decreases. The results suggest that policy makers should focus on
providing improved seed, extension and credit services, improving fertility of land and creating
means of income generation for the excess labour in the household. Such measures may, in turn,
reduce the food security problem and enhance the export of the commodity.
Keywords: Technical Efficiency; Lentil; Production; Cobb-Douglas Production Function
113
113. Severity and Determinants of Rural Household Food Security Status
in Angolelanatera Woreda, N/Shewa Zone, Amhara National Regional
State, Ethiopia
Ermias Assefa and Dugassa Mulugeta
Year: 2011
Abstract: The study area is one of the chronically food insecure and vulnerable woredas in the
Amhara National Regional State. The largest portion of the woreda experiences frequent crop
failures and usually is vulnerable to food shortage. Thus, the present study attempts to measure
households‟ food security status and its severity assess strategies adopted by households to cope
up with food insecurity, and identify factors affecting rural household food insecurity in the study
area. A combination of qualitative and quantitative approaches were employed to collect data.
The data sources for the research were both primary and secondary. The primary data were
collected from 120 sample households through formal survey using structured questionnaires and
secondary data which was obtained from different institutional sources. Descriptive statistics and
econometric methods were employed for analysis purpose to meet the stated objectives. The
sample households were classified into food secure and food insecure groups based on the
minimum recommended 2100 kcal actually consumed through production or other means. FGT
result revealed that the incidence, the gap, and the severity of household food insecurity were
78.3%, 42%, and 26%, respectively. The descriptive statistics revealed that there was a significant
difference between the food secure and food insecure households on 13 of the 20 variables. A
Logit regression model result revealed that among the 20 factors hypothesized to influence food
insecurity, 9 variables were statistically significant with the hypothesized sign as determinants of
household food insecurity in the study area. These were family size, age of household head,
number of ox/oxen, use of improved seeds, total asset value, participation in credit, market
distance and education (category 3 and 4). Moreover, this study has identified a number of useful
recommendations based on the significant variables in econometric results having direct
implications for designing policy interventions with the objective of reducing food insecurity.
Keywords: Food Security; Severity; Strategies; FGT; Logit Model
114
114. Determinants of Household Food Security Status: The Case of
Productive Safety Net Program Participants in Goro Gutu Woreda, East
Hararge Zone, Oromiya, Ethiopia
Harun Aliyi and Jema Haji
Year: 2011
Abstract: This study evaluates the determinants of food security status of the households under
productive safety net program of Goro Gutu woreda of East Hararge Zone. Precisely, the
objectives of the study were to measure and identify the factors affecting the food security status
of households under productive safety net program. The study employed probability
proportional to size random sampling methods to select 200 farmers from randomly selected six
PAs (two from each agro-ecology) embraced by PSNP. The major research question of the study
was sample households improve the ability to meet family food requirement and increased their
resilience to shock. The minimum energy food requirements of 2100 kilocalorie per day obtained
from 0.6 kg basket of cereals and equal to 2.2 quintals of cereals per adult equivalent per year was
used to categorize households into food secure and insecure. Descriptive results show that as a
result of program implementation, from the total samples, only 52% were able to meet the food
required to the households and overcome the annual food deficit of their family while 48% of the
sample households were still food insecure. Logit model was used to identify the determinant
factors affecting the food security status of the households under this program. Results show that
sex, cultivated land size, herd size, total income per adult equivalent, graduation from PSNP,
weather condition and soil fertility have a significant positive effect while family size, off/nonfarm income and targeting problem were found to have a statistically significant negative effect
on the food security status of the households in Goro Gutu woreda under PSNP. The results of
this study indicate the importance of policy interventions to incorporate family planning in to the
national food security program, provision of OFSP should cover the target households under the
program, works toward the achievement sustainable natural resource development and resolving
the targeting bias to improve the food security status of the households.
Keywords: Food Security; Productive; Safety Net Program; Logit Model
115
115. Impact of Savings and Internal Lending Communities Program (Silc)
by Women on Households Economy: The Case of Dire Dawa
Administration
Diriba Seboka and Jema Haji
Year: 2011
Abstract: Making women the beneficiaries of savings and internal lending communities program
is a strategy that helps women‟s by increasing their incomes and building their asset. The study
was conducted using cross-sectional data collected from 164 randomly selected rural household
to evaluate the impact of Savings and internal lending communities (SILC) program by women
on participant households‟ economy drawn from both participant and non-participant of Dire
Dawa Administration. The data collected were analyzed using descriptive and econometric model
(PSM) approach. Applying a PSM technique, the study found that participation has a positive
impact on households‟ expenditure, income and asset. After controlling for differences in
demographic and socioeconomic characteristics of the participant and non-participant
households, it has been found that, participation in the SILC program has increased annual
income by birr 1961.02 (19.98%) , expenditure by birr 2597.58 (26.86%)and other asset was
significantly increased by birr 4125.16(46.46%), while TLU is not significant. A binary logit model
was employed to examine factors affecting participation in the SILC program. Therefore, a total
of eight explanatory variables were included in the model of which farm size, amount saved and
credit received are variables found to be significant.
Keywords: Saving and Internal Credit (SILC); PSM
116
116. Impact of Integrated Watershed Management on Household
Livelihoods: The Case of Umbullo Wacho Watershed of Hawassa Zuria
District in Sidama Zone, Southern Nations Nationalities and Peoples’
Region
Mesay Woldemariam, Wasie Berhanu and Moti Jaleta
Year: 2011
Abstract: Today watershed development has become the main intervention for natural resource
management and rural development. Watershed development programmes not only protect and
conserve the environment, but also contribute to livelihood security. The present study evaluated
the impact of Umbullo Wacho integrated watershed management (IWM) program on household
livelihood using cross-sectional survey data collected from 180 households. Moreover, the study
has assessed farmer‟s perception towards factors affecting IWM program in the study area. The
survey respondents were drawn from both program and non-program areas of Hawassa Zuria
District, Sidama Zone of SNNPR in Ethiopia. Propensity score matching method was employed
to analyze the impact of the project interventions quantitatively. This method was checked for
covariate balancing with a standardized bias, t-ratio, and joint significance level tests. Results
show that participation in the program has a significant, positive and robust impact on the
outcome variable (annual income). The study found that IWM program has increased
participating households‟ annual income by 27% (i.e., 1397 birr) compared to that of nonparticipating households. The study also identified the existing different livelihood strategies that
have significant implications to farmers‟ livelihoods. The different types of activities they are
pursuing are both within the agricultural occupation and non-agricultural sector. Farmers
perceive factors affecting IWM differently. These are deforestation and uncontrolled grazing,
land shortage from population pressure and shortage of water. Farmers with higher perception
level were found to be program participant households. Based on the results it is concluded that
future watershed management policies and development strategies and interventions in drought
prone areas should carry out, a priori, a livelihood analysis that focuses on local level livelihood
strategies that are remunerative, sustainable and that complements with agriculture.
Keywords: Impact; Integrated; Watershed; Household Livelihood
117
117. Impact Assessment of Input and Output Market Development
Interventions of the IPMS Project: The Case of Mieso Woreda, Oromiya
National Regional State, Ethiopia
Tihitina Abebe, Berhanu G/Medhin and Moti Jaleta
Year: 2011
Abstract: Improving Productivity and Market Success of Ethiopian farmers‟ (IPMS) is a project
that is being implemented by ILRI at 10 pilot learning woredas in the country to enhance market
oriented production so that the country can overcome the problems of poorly developed
agricultural production and marketing. Even though the project has been in place for over five
years its impact has not been evaluated. Therefore, this study evaluates the impact of input and
output market development interventions of the project on institutional and organizational aspect
of markets, input use and productivity, total net income, marketed surplus and market orientation
of the participant households. For quantitative analysis both program participant and nonparticipant respondents were drawn and cross-sectional survey data were collected from 180
households in Mieso woreda. A propensity score matching method was applied to assess the
impact of the project on outcome variables of the treated households. Results show that the
market development interventions have a significant and positive impact on the outcome
variables measured using different indicators. The intervention has resulted in positive and
significant impact on level of input use for onion and goat production of the treated households.
Participants earned more total net income on average from commodities of intervention over
non-participants and also found to be more market oriented and supplied more of their produce
to market over non-participants. However, some outcome variable indicators such as input use
for cattle, net income from goat, land allocated for onion and proportion of goat allocated for
fattening by participant households are positive but statistically insignificant. The sensitivity
analysis also show that results are not sensitive to unobserved selection bias and were robust to
the dummy cofounder. These results reveal that market development interventions of such kind
play an important role for the overall transformation and development activities of the country.
Keywords: Input and Output Market Development Intervention; Propensity Score
Matching; Mieso, Impact
118
118. The Impact of Productive Safety Net Program on Asset Accumulation
and Investment in Sustainable Land Management in the Central Rift
Valley: The Case of Adamitulu Jido Kombolcha and Meskan Districts
Tadele Mamo and Chilot Yirga
Year: 2011
Abstract: The main objective of this study was to assess the impact of productive safety net
program on participants' asset accumulation and investment in sustainable land management
(SLM) and identify factors affecting investment in SLM in Adamitulu Jido Kombolcha (ATJK)
and Meskan districts of Central Rift Valley (CRV). Both primary and secondary data were
collected for this study. The primary data were collected through structured questionnaire from
95 productive safety net program (PSNP) and 91 non PSNP participating sample households of
ATJK and Meskan districts operating 557 farming plots. Propensity score matching (PSM) was
used to assess the impact of participation in PSNP on asset accumulation and investment in SLM
whereas Heckman‟s two-step model was used to identify factors affecting the likelihood of
investment in SLM practices in the first step and the intensity of investment in the second step.
The propensity score matching estimation results show that participation in PSNP had not
brought any significant impact on both investments in SLM and on asset holdings. The
Heckman‟s two-steps regression results show that the likelihood of investing in soil bund was
positively and significantly affected by steepness of slopes whereas the intensity of investment
was positively influenced by steepness of slopes, plot distance, participation in OFSP and
negatively influenced by livestock ownership as well as participation in PSNP. Steepness of slopes
and number of plots owned positively and significantly influenced the likelihood of investing
while land holding had a negative impact on the likelihood of investing in stone bund. Land
holding, plot distance and participation in OFSP influenced the intensity of investing in stone
bund negatively whereas sex of the household head, number of plots owned, plot size, steepness
of slopes and perception to profitability of investing in stone bund had a positive influence on it.
Perception to the profitability of using chemical fertilizer influenced the likelihood of investing in
chemical fertilizer positively while off-farm income had a significant negative effect on it.
Likewise, plot size, soil fertility status, perceived profitability of using chemical fertilizer, visit
frequency of development agents, livestock ownership and being Meskan district had a positive
impact whereas land holding had a negative influence on the intensity of investing in chemical
fertilizer in the study area. Age and education of the household head, soil fertility status,
perceived profitability of using compost and visit frequency of the development agents showed a
significant positive impact while sex of the household head and number of plots owned had a
significant negative effect on the likelihood of investing in compost application. Labor force and
livestock ownership had a significant positive impact whereas land holding, number of plots
owned, plot distance and being Meskan district had a negative effect on the intensity of investing
in compost application in the study area. The results imply that policy makers should be careful
to design social welfare programs such as PSNP in the way that it contributes in asset
accumulation and enhance investment in SLM. They should also give a due attention to different
socio-economic, institutional, farm and plot level factors when designing SLM technologies.
Keywords: PSM; Heckman’s Two-Step; Meskan, Adamitulu Jido Kombolcha; PSNP;
Impact
119
119. Impact of Microfinance on Poverty Reduction of Participating
Women Households: The Case of Dire Microfinance Institution
Yewbdar Tasew and Jema Haji
Year: 2011
Abstract: The main objective of this study is to assess the impact of microfinance on women
clients in poverty reduction. A two-stage random sampling technique was employed to select 5
kebeles and, a total of 160 households from which 80 were treated and 80 were non-treated
women. To achieve its objectives, descriptive statistics, and PSM method were applied. The study
first estimated a logit model to identify factors affecting participation in the microfinance
program and livelihood indicators. The results showed that participation in DMFI and outcomes
are significantly and positively influenced by years of schooling, age, family size, marital status,
and experience in credit use but negatively affected by the amount saved. The study found that,
in general terms, the beneficiaries of the program have gained improvements in their economic
status, which can be reflected in their monthly income, asset value and expenditure. The
intervention has enabled the clients to generate income that could be spent on better facilities,
which in turn have effects on nutritional status, access to education and medical facilities,
employment generation and improved living standard. Therefore, strengthening the existing
operation would be appropriate socio-economic policy by the government.
Keywords: Microfinance; Loan; Saving; Impact Assessment; Poverty; PSM
120
120. Value Chain Analysis of Vegetables in Daro Lebu District of West
Hararghe Zone, Oromia Region, Ethiopia
Tadesse Negash, Berhanu Adenew and Jema Haji
Year: 2011
Abstract: The study was conducted in Daro Lebu district of West Hararghe Zone of Oromia
Regional State where vegetable production is common. The study aim at conducting value chain
analysis on economically important vegetables, identify the determinants of vegetable supply and
to describe problems and opportunities in the production and marketing. The data collection was
conducted in March 2011 using semi-structured questionnaire to collect primary data from 122
producers and 12 traders. Moreover, secondary data were collected from Central Statistical
Agency (CSA), Agricultural and Rural Development Office (ARDO), Trade and Industry Office
of Daro Lebu district. There are Onion, pepper, and potato wholesalers who operate not only in
Daro Lebu district but also in other major producing areas within West Hararghe Zone. Few
traders dominate the vegetable markets, mainly potato and onion markets which affects the
smooth functioning of market forces. On the other hand, vegetable producing farmers, with little
or no market information and acting individually to sell their product are in a disadvantageous
position than any other actor in the market. Farmers sell their vegetables based on visual
judgments rather than using standard unit of measurements. The Tobit model estimated results
determined that out of 12 explanatory variables, three were found to significantly influence on
vegetable marketable surplus. Accordingly, cultivated land, experience in vegetable production
and availability of irrigation with a coefficient of 0.151, 0.362 and -0.250 were identified
respectively.
Keywords: Value Chain; Vegetable; Marketing; Supply; Tobit Model
121
121. Value Chain Analysis of Sugarcane: The Case of Kalu District, South
Wollo Zone of Amhara National Regional State, Ethiopia
Marshal Negussie and Jema Haji
Year: 2011
Abstract: This study was initiated to analyze the value chain of sugarcane in Kalu district. The
value chain analysis has the capacity to increase efficiencies, business integration, responsiveness,
and ultimately market competitiveness. This study, complemented by primary data, investigates
the nature of sugarcane value chain by highlighting the main activities and the sources of
inefficiency along the chain. Primary data were collected from 145 farmers, 7 assemblers, 4
wholesalers, 30 retailers and 60 consumers, based on appropriate statistical procedures.
Accordingly, the value chain activities in the survey period were input supply, production,
marketing and consumption. The study shows that sugarcane producers are faced with lack of
modern input technologies which results in low level of productivity. Sugarcane is found to be a
market oriented product with slight difference between production and marketable surplus.
Result of the conducted econometric model shows that sugarcane supply is significantly affected
by yield, education, lagged price, credit, farm size, quality and successive harvest. It is also found
out that sugarcane passes through several intermediaries with little value being added before
reaching the end users. The main intermediaries involved are assemblers, wholesalers and
retailers. The chain is dominated by few wholesalers who have capital advantage over the other
chain actors. Therefore, farmers are forced to capture a lower share of profit margin. The study
proposes tangible and effective upgrading strategy which can foster the chain competitiveness
generally and the benefit of farmers specifically. The study also conducted a comparative
advantage of sugar to indicate the extent/prospect of the market if upgrading is achieved. The
Domestic Resource Cost (DRC) approach was used to assess the comparative advantage of
sugar. By using the trade information of 2008/09 production period, it was found out that the
country could benefit if it specializes in sugar production. Therefore, policy aiming at increasing
farmers‟ access to modern inputs, credit, human capital formation and inclusion of processing
activity into the chain are recommended to accelerate the chain‟s development.
Keywords: Value Chain; Sugarcane; Business Integration; Market Competitiveness
122
122. Market Chain Analysis of Teff and Wheat Production in Halaba
Special Woreda, Southern Ethiopia
Muhammed Urgessa and Wolday Amha
Year: 2011
Abstract: This research attempted to analyze the market chain of teff and wheat in Halaba with
specific objective of assessing the structure-conduct-performance of teff and wheat marketing, the
various marketing channels, the institutional support services of extension, input supply, and
credit and analyzing the determinants of teff and wheat supply. Primary data were collected from
160 teff and wheat producers and 43 grain traders based on two stage random sampling method.
Multiple linear regression model was employed to estimate the determinants of teff and wheat
supply. The results of the study indicated that out of the total teff and wheat produced by sample
farmers, 86.2% of teff and 49.2% of wheat were marketed. Urban assemblers, regional wholesalers
and regional retailers bought 40%, 37.4% and 16.5% the teff marketed respectively. Likewise,
wholesalers and urban assemblers bought 45.1% and 43.8% of wheat marketed respectively.
Alaba Qulito sample market was inefficient, characterized by oligopolistic market structure. The
major barrier to enter into the market was shortage of capital. Licensing and years of trading
experience did not hinder entry into teff and wheat trading activities. Moreover, the markets were
overwhelmed by information asymmetry with low degree of market transparency. Although
trading of teff and wheat is profitable across all sample farmers and traders, problems like
oligopolistic market structure and information asymmetry made the trading business
uncompetitive and inefficient. Among the different variables hypothesized to determine the
supply of teff and wheat, econometric result showed that four variables such as quantity produced,
access to market information, access to extension service and sex of the household head
significantly affected the volume of teff supplied to the market. Moreover, three variables namely
quantity produced, access to credit and price of other (pepper) crop significantly affected volume
of teff supplied to the market. As hypothesized, all variables took a sign as expected. The study
recommends providing policies that improve teff and wheat production capacity by identifying
new technologies create stable demand for surplus production would enhance farmers‟ decision
in marketable surplus. Strengthening Institutions that convey reliable and timely market
information required by all market participant. Strengthening the existing extension system
through training in a way to serve grassroots level producers in all aspect is important. The
number of farmers and traders who accessed credit is very limited; therefore, financial institutions
should design a mechanism to address the challenges of financial access to smallholder farmers
and traders. Eventually, policies that strengthen the bargaining power of cooperative are vital in
order to reduce the market inefficiency created due to oligopolistic nature of market structure.
Keywords: Market Chain; Teff; Wheat; Production; Multiple Linear Regression
123
123. Households’ Willingness to Pay for Improved Rural Water Supply:
Application of Contingent Valuation Method in Haramaya District
Berhanu Urgessa and Ayalneh Bogale
Year: 2011
Abstract: Water for domestic use problem in rural areas of Ethiopia is two-fold: low coverage
levels and poor quality that require urgent attention to reduce associated health and social
implications. The health problem is increased vulnerability to water-borne diseases. Moreover,
women and children spend hours a day collecting water: time that would be better spent in
education or employment. The government and donor organizations are currently performing a
number of activities to improve the coverage and quality of water supply with operation and
maintenance costs recovery for rural systems. Hence, the affordability and willingness of the
consumers that are supposed to be served need to be examined. The Primary objective of this
study is, therefore, to estimate households‟ WTP and identify determinants of WTP for improved
rural water service by using Contingent valuation method (CVM) in Haramaya district. The study
used primary data obtained from a CV survey conducted on 122 randomly selected rural
households. We used double bounded dichotomous choice elicitation method administered by
in-person interview. The data was analyzed using descriptive statistics and bivariate probit model.
Response to the hypothetical scenario revealed that sampled households expressed their WTP
with a mean WTP of 27.30 cents per 20 liters jearycan. The results of bivariate probit model also
shows that household income, education level of respondent and sex of respondent, time spent
to fetch water from existing source, water treatment practice, quality of water and expenditure of
household for water have positive significant effects on WTP for improved water source. While,
respondent age has a negative and significant effect on WTP for improved water source. From all
explanatory variables used, education has largest marginal effect on WTP for improved water
source in the study area.
Keywords: Water Supply; Rural; Willingness to Pay; Contingent Valuation Method
(CVM)
124
124. Determinants of Income Distribution: Inequality Decomposition
Analysis, Bench Maji Zone Sheko District
Eskindir Yigezu and Beyene Tadesse
Year: 2011
Abstract: Income inequality has an important influence on poverty reduction, both in theory and
in practice. Ensuring fair distribution of income and boosting productivity of limited resources
would go far in alleviating poverty. Bench Maji is one of the cash crop zones, and coffee is the
most popular cash crop in the area. While the largest households‟ income is derived from coffee,
farmers have also other different sources of income. But there is a sizeable income difference
among the farming households. Thus paper attempted to identify the factors that contribute to
the income gap and to indicate policy makers how these factors contribute to unfair income
distribution. The specific objectives of the study are: measuring the income inequality in the study
area, identifying the major income sources and their contribution to inequality, and identifying
the factors that contribute to income inequality at household level. A sample of 120 rural
households were taken in south west Ethiopia and static inequality decomposition approach was
used to examine the drivers of inequality. In addition, a regression-based inequality
decomposition technique was applied. The Gini coefficient of the study area is 0.39, which shows
that the income distribution in the study area is inequitable. The relative contribution each
sources of income to the overall income inequality indicated as: crop production 0.35, livestock
0.01 and nonfarm incomes 0.03. The result shows that much of the income disparity is attributed
to income generated from crop production. It was found out that the other income sources have
an inequality decreasing effect, that is; a raise in income from non-farm income and livestock is
favorable for income distribution. Land holding, land allocated for perennial crops and livestock
are household variables which have higher inequality weight. Increase in education and livestock
variables reduces the income gap whereas land holding, land allocated for perennial crops &
annual crops, and household size widen the gap. Concerned institutions in improving rural equity
should give high attention on nonfarm income generating activities, and improving the
productivity of livestock. In addition, bottom income groups farmers have to be get support to
produce quality and better economic value crops like that of coffee, and in order to enhance the
productivity of their small size of land. Farmer Teaching Centers (FTC) has to be expanded in
order to teach the bottom income groups farmers in improving the labor productivity and hence
to reduce the income disparities.
Keywords: Income; Inequality; Distribution; Decomposition; Gini Coefficient
125
125. Determinants of Rural Households Participation in Non-Farm
Activities and Its Effect on Income Distribution: The Case of Wonchi
District in Central Oromia
Fekadu Assefa and Beyene Tadesse
Year: 2011
Abstract: This study analyzes the determinants of rural households‟ participation in non-farm
activities (NFA) and its effect on overall income inequality in Wonchi district of Oromia Regional
State, Ethiopia. For this study both primary and secondary data were used. Primary data were
collected from 260 households that were selected from six Kebeles through multiple stage cluster
sampling. To identify the determinants of participation in non-farm activities logit model was
employed. Model show that educational level of the household head, number of pack animals
owned, use of family planning, languages spoken by household members , and skill training on
NFA have positive and significant effect on rural household‟s participation in NFA. On the other
hand, sex of headed household, household head‟s farm experience, operational land holdings, and
travel time required to the nearest main market negatively and significantly influence the
household‟s decision to participate in NFA. The Gini coefficient of the study area is estimated to
be 0.37 which means the distribution of income of the sample households is inequitable. The
Gini decomposition analysis indicates that income from nonfarm sources accounts for 25% of
total household income. By decomposing the overall income inequality between farm and nonfarm income, the result shows that farm income as a whole accounts for 61%, while non-farm
income accounts for 36% of total inequality. Farm income decreases the overall income
inequality whereas non-farm income increases the overall income inequality in the study area. The
overall implication of these results is that skill training on NFA, education of head of household,
encouraging family planning utilization, and reducing travel time to the nearest main market will
enhance the household‟s participation in NFA. The fact that more female headed households
participate in NFA than male headed household but with less income from their effort,
compared to their male counterpart, calls for special capacity building training for female headed
households that enable them to get equal income from NFA as their male counterpart.
Moreover, the income inequality which is aggravated by the non-farm income should be
ameliorated by creating opportunity for non-participant households to participate in NFA.
Keywords: Non-farm; Participation; Income Distribution; Income Inequality; Gini
Coefficient; Logit Model
126
126. Rural Labour out Migration and Improved Agricultural Technologies
Adoption: Evidence from Fifteen Peasant Associations in Ethiopia
Zeru Ashine and Degnet Abebaw
Year: 2011
Abstract: A lot has been done on the determinants of improved input technologies adoption in
agriculture regarding demographic, institutional, economic resources and information variables.
But this paper focuses on a factor that has been less well documented and yet highly linked with
agricultural inputs and improved farm technologies adoption; rural labour out migration. This
paper identifies factors that influence the behavior of farmers in the study areas in adopting
chemical fertilizers and improved variety of seeds by estimating logit, probit and ivprobit
regressions. The data for this study comes from Ethiopian Rural Household Survey (ERHS)
conducted in 2004 for the 6th round in fifteen Peasant Associations. The results from this study
indicate that rural labour out migration increases the probability of adopting both technologies in
the study areas. In addition literacy of head, family size, access to credits and extension and
cultivated land and livestock owned at household level influence adoption of chemical fertilizers
and improved seeds positively and significantly.
Keywords: Rural; Labour; Migration; Technology; Adoption; Logit; Tobit Model
127
127. Impact of Resource-Based Conflict on the Livelihood of Pastoral and
Agro-pastoral Households: The Case of Erer District in Somali Regional
State, Ethiopia
Gutema Bati Fedi, Jema Haji and Fekadu Beyene
Year: 2011
Abstract: This study identifies the factors influencing participation in resource-based conflict and
farm income as well as measures the magnitude of the impact of involvement in resource-based
conflict on farm income using cross-sectional data collected from 200 randomly selected
households. The respondents were drawn from both involved and non-involved households of
selected kebeles of Erer district, Shinile Zone of Somali Region. The major research question of
the study was “what would the farm income of the household have been, had they not been
involved in resource-based conflict?” To answer this question, the data collected were analyzed
using descriptive, inferential and econometric tools. The results obtained from logit model show
that involvement in resource-based conflict and farm income of households are significantly
influenced by five explanatory variables. Access to irrigation, household age, and size of irrigable
land were found to have strong and negative relationship with involvement in resource-based
conflict. By contrast, livestock ownership and average distance to basic social service centers have
a strong and positive effect on involvement in resource based conflict. The estimated results
obtained from a propensity score matching (PSM) method show that involvement in resourcebased conflict has a negative and statistically significant impact on farm income of households.
On average, it has decreased about 31% farm income (i.e. 3501 birr per annum) of households
who are involved in resource-based conflict as compared to that of non-involved households.
Overall, the study provides evidence that one should focus on accessing modern irrigation system
and investing in alternative watering points such as wells and ponds (birkas) and easily grown and
drought resistant plant that can be used to feed animal. And also one should focus on size of
irrigable farming land, household age and basic social services to improve livelihoods of the
households‟ in terms of farm income and to reduce resource-based conflict in pastoral and agropastoral areas.
Keywords: Resource Conflict; Propensity Score Matching (PSM); Farm Income; Impact;
Erer
128
128. A Comparative Study of Food Security Status between HIV/AIDS
Affected and Non-affected Households in Dire Dawa Town, Dire Dawa
Administration Region
Melak Yizengaw Tessema and Bamlak Alamirew
Year: 2011
Abstract: Large number of people in Ethiopia is living below poverty line and experience food
insecurity. HIV/AIDS is worsening the problem. Thus, identifying and analyzing those
determinants that are responsible for variation in household food security status are needed to
guide decision makers, to make appropriate program interventions and integrated efforts to
combat food insecurity. In this thesis an attempt was made to assess food security status and its
determinants in Dire Dawa town by using primary and secondary data. The study applied
descriptive statistics, and econometric model. From the 9 urban kebeles, 4 kebeles having large
number of PLHIV were selected purposively. From the total households of selected kebeles 200
households were selected randomly. The survey result revealed that 63.5% of sample households
were below acceptable consumption standard. Considering FCS >35 as threshold between food
secure and insecure, from the total 200 sample households, 13.5% were found to be poor
consumers (<21), 50% were borderline consumers (21.5-35) and 36.5% were found to be in
better consumption standard (>35). In the affected group 16% were at poor food consumption,
54% were at borderline consumption and 30% were food secured. On the other hand, nonaffected households which made up 11% were unable to meet the requirement and grouped as
poor food consumers, 46% were border line consumers and 43% were better consumers. The
ordered logit model results show that among fifteen explanatory variables included, six variables
were found to be significant. HIV status was found to be positively significant at 10% probability
level with food insecurity, while income per adult equivalent, food expenditure and level of
education were found to be negatively significant at 1% probability level with food insecurity.
Similarly, participation in social networks and saving were also negatively significant at 5%
probability level with food insecurity. The study findings suggest that in selecting priority
intervention areas, the food security strategy should consider statistically significant variables as
the most important factors.
Keywords: Food Security; Ordered Logit Model
129
129. The Performance of Hides and Skins Marketing in Gedeo Zone,
Southern Nations, Nationalities and People Regional State, Ethiopia
Liulseged Lemma and Jema Haji
Year: 2011
Abstract: This study investigated the performance of hides and skins marketing systems in
Gedeo zone of SNNPRS using the S-C-P approach and co-integration analysis. To achieve this
objective primary and secondary data were used. Primary data were collected from 100 farm
households and six licensed traders using semi-structured questionnaires. Secondary data on the
volume of hides and skins collected and supplied by each trader were collected from woreda
office of agriculture and based on this information market concentration was calculated using
concentration ratio. In addition, data including a 60 month price series of hides and skins of the
secondary market and Addis Ababa were collected from the respective woredas agricultural office
and from head office of Ethio tannery, respectively. As a result, market integration between
secondary and reference markets were tested by using the co-integration and error correction
models. Furthermore, data on various marketing costs of traders were collected from traders and
concerned government organizations. Based on this information the level of marketing margin
and marketing costs were analyzed. According to the result of this study, out of 100 sampled
farm households 77% produce hides and skins and all the products were supplied to the market.
The result of market concentration analysis revealed that the market was strongly oligopolistic.
Market integration analysis indicates that the study districts and Addis Ababa markets are
integrated in the long-run. The hypothesis of full market integration, however, is rejected. The
result of marketing margin and marketing cost analysis revealed that transportation costs, income
tax, labor cost and interest rate were the significant factor that affects the marketing margin of
hides and skins. Licensing, lack of working capital and credit, information asymmetry and risk
and policy were the major factors explaining market concentration, which prevent potential
competitors from entering into hides and skins market thereby creating high market
concentration. Likewise, imperfect competition and imperfect information were the major factors
for the market to be segmented in the short-run. Hence, high market concentration, barriers to
entry and high marketing margin reveal that hides and skins marketing in the zone were
inefficient. Therefore, improving the licensing procedure, provision of current and
comprehensive information to market participant and provision of credit services for traders and
improving the market infrastructure create favorable conditions for hides and skins marketing.
Keywords: Hides and Skins; Marketing Systems; S-C-P; Co-Integration; Market
Integration
130
130. Impact of Urbanization of Addis Ababa City on Peri-urban
Environment and Livelihoods
Leulsegged Kasa Mekonen, Dawit Alemu, Fitsum Hagos and Gete Zeleke
Year: 2011
Abstract: In the past two decades, Addis Ababa city has been growing at a faster rate of
urbanization. This is manifested by high population concentration in the city and horizontal
physical expansion of the city. A research has been conducted to detect the land use/cover
dynamics of the city, assess peri-urban livelihoods, and evaluate the post-displacement welfare
situation of urbanization - induced displaced peri-urban communities. To detect land use and
land cover changes, Landsat images of 1986, 2000, and 2010 were analyzed using RS and GIS
techniques. For the peri-urban livelihoods and post-displacement welfare situation evaluation,
following a multi-stage sampling techniques, 150 peri-urban sample households were analyzed.
Multinomial logit regression model and propensity score matching techniques were used to
identify determinate factors of livelihood strategy choices and evaluate the welfare impact of
displacement, respectively. The spatial analysis results witnessed that urbanization is growing at a
fastest rate leaving the peri-urban environment and livelihoods at risk. The built-up area has
increased by 120.93 km2 while nearly 125 km2 forestland was lost within 24 years. In addition,
significant portion of peri-urban crop and grasslands were converted in to built-up areas. Despite
such pressures on the agricultural resource bases in the peripheries, agriculture still provides
employment to about 83% of peri-urban households and takes 58% of the total household
income share. The non-agricultural livelihood strategies were also found contributing nearly 39%
of the total household income. The multinomial logit model analysis results revealed that,
household head‟s sex, educational status, labor endowment, amount of transfer income, farm
size, livestock holding, and amount of credit received were determinants of livelihood strategy
choices of peri-urban communities. The livelihood diversity analysis has shown, fully displaced
households had involved in relatively diverse livelihood strategies (index=0.27). Despite their
diverse livelihood strategy and compensations made, they have failed to establish comparable
means of earning. From the propensity score matching estimation, it has been found that, fully
displaced households had received, on average, a per capita income of Birr 2597 and Birr 1547
lower from partially displaced and non - displaced people, respectively. In contrast, their average
per capita expenditure exceeded by Birr 970 and Birr 742 from partially displaced and nondisplaced households, respectively. This shows fully displaced people are pursuing asset depleting
consumption style. Devising adaptive livelihood skill development programs seems imperative.
Keywords: Environment; Livelihood; Peri-Urban Areas; Impact; Rs/Gis; Multinomial
Models; Propensity Score Matching; Addis Ababa City; Ethiopia
131
131. Impact of Small- Scale Irrigation on Food Security of Rural
Households: The Case of Dire Dawa Administration
Bisrat Yohannes and Jema Haji
Year: 2011
Abstract: Food security issue in Ethiopia is the major concern for government. The government
plans to tackle it by implementing different food security programs where the implementation of
small scale irrigation is the major one. So this study tries to evaluate the impact of small-scale
irrigation on food security of rural households using a cross-sectional survey data collected from
140 randomly selected households of Dire Dawa administration. From both participant and nonparticipant areas. The major research question of the study was “what would the food security
status of the households have been, had the program (small scale irrigation) not been
implemented?” and also tries to determine the factors affecting the participation in irrigation
schemes and outcome variables To answer these questions, the data collected were analyzed
using a number of descriptive and econometric tools. Applying t-test, chi-square test and a
propensity score matching technique, the study found out that the participation in small scale
irrigation is affected by total cultivated land at 10%, use of improved seed at 5%, relative distance
from the source of the water at 1% and use of chemical fertilizer at 1% become statistically
significant. Moreover, results show that the small scale irrigation has increased participating
households‟ calorie intake by an average of 798 calorie and their total income by 3406 Birr. In
addition, participants use more modern farm inputs and produce cash crops. The study discusses
the results in detail and draws policy implications for the government and other concerned
bodies who aim at improving the livelihood of the poor through small-scale irrigation.
Keywords: Small-Scale Irrigation; Food Security; Calorie Intake; Income; Impact;
Propensity Score Matching; Dire Dawa
132
132. Determinants of Farm Household Poverty: The Case of Lay Gayint
District, South Gondar Zone, Amhara National Regional State, Ethiopia
Eshetu Seid and Adam Bekele
Year: 2011
Abstract: This paper analyzes the determinants of farm household poverty in Lay Gayint district.
The paper is built on sample survey data collected in 2010. Descriptive and inferential and
econometric methods were used to analyze data on status and level of poverty of sample farmers
respectively. Results of descriptive and inferential analyses showed that there was a significant
difference between the two groups (poor and non-poor) in terms of age of the head, dependency
ratio, off-farm income, land size, livestock owner ship, extension visit, education, credit access,
fertilizer use, and agro-climate. Further, it was found that 57.1% of the households are poor,
subsisting below the average poverty line of 2305 Birr per adult equivalent per year. In addition,
the poverty gap and severity index of the survey was 58.9 and 22.5%, respectively. Results of
econometric analysis using Heckman two stage model showed that livestock holding, fertilizer
use, agro-climate, access to various services, dependency ratio, gender of the head, educational
status of the head and age of the household head were the significant determinants of poverty in
the study area. In the binary probit model (first stage) households headed by males and
dependency ratio were positively and significantly related to the probability of being poor. On the
other hand, fertilizer use, agro-climate, livestock holding, access to various services, and
educational status of the head were negatively and significantly related to the probability of being
poor. In the second stage estimation (OLS regression), age of the head, educational status of the
head, fertilizer use and agro-climate were found to be positively related to a household‟s
expenditure per adult equivalent (welfare of the poor). However, age square, gender of the head
and dependency ratio were found to be negatively related to the welfare level. This implies that
any development endeavor that aims at improving the welfare of people of the district should
focus on these correlates of poverty and welfare level.
Keywords: Poverty, Lay Gayint; Heckman Two Stage; Binary Probit; OLS regression
133
133. Analysis of Farmers Perception of Land Degradation and Adoption of
Soil and Water Conservation Technologies in Shebedino Woreda, Sidama
Zone, Snnpr
Aselefech Tadesse Hundie, Ayalneh Bogale and Worku Tessema
Year: 2011
Abstract: Land degradation in the form of soil erosion and nutrient depletion in the highlands of
Ethiopia has reached the point where it has become increasingly difficult even to maintain the
present level of production of basic food which is already insufficient in many regions of the
country. In response to this problem, the government has taken some measures to reduce the
problem of soil erosion in some degraded highlands, including the study area. This study tries to
assess the conditions and determinants of physical soil and water conservation practices using
both primary and secondary data. The primary data were generated from 120 sample households
from 6 kebeles in Shebedino woreda using probability proportional to size. Tobit model analysis
at household level was used to analyze physical, socioeconomic and institutional factors that
affect the use of soil and water conservation measures. In addition descriptive statistics were also
used as deemed necessary. The result of this study revealed that out of the total twelve
explanatory variables hypothesized, six variables, namely total farm size, total livestock unit, slope
of the farm, perception of household on SWC, training on SWC and sex of household head
significantly affect the adoption of physical soil and water conservation practices of the
households in the study area. The results of the study suggest that for successful technology
dissemination and adoption, inter-household socio-economic variability should be considered in
soil and water conservation policy formulation. The extension organization should consider all
significant explanatory variables during promotion of SWC practices in the study area. Training
as core factor positively influencing the behavior of household to adopt SWC technologies.
These measures may partly reverse the threatening land degradation due to accelerated soil
erosion by water which is a critical challenge for land dependent Ethiopian agrarian economy.
Keywords: Land Degradation; Perception; Soil and Water Conservation
134
134. Socioeconomic Determinants of Child Nutrition in Central Highland
of Amhara National Regional State: The Case of Menz Mama Woreda
Assefa Tsegaye and Dawit Alemu
Year: 2011
Abstract: This study used data collected from randomly selected six rural keble administrations
and employed both descriptive statistics and econometric analysis in order to identify, analyze
and understand nutrition status of children of age under five years old and its determinants
(socioeconomic). As end result of this analysis it was found that nutrition status of children has
public health significance in that 53.3%, 30.8 % and 9.70 % of index children were stunted (low
height for age), underweight (low weight for age) and wasted (low weight for height) at 95 %
confidence interval respectively. The binary regression using maximum likelihood and estimates
of marginal effect also found significant result that differs across households. Result of chi-square
(χ2) test and logit analysis found, household‟s socio economic characters as family size, household
head education, crop land size, livestock holding, farm income, access to food aid, mother‟s
education, access to health extension service and source of water supply were found significant
(at 1% and 5% level of significance) in determining the dependent variable. Finally, based on the
results of the study, the paper summarized several points of conclusion and policy
recommendations intended improving child nutrition to more effectively address problem of
child malnutrition.
Keywords: Child Nutrition; Logit
135
135. Technical Efficiency of Haricot Bean Seed Production: The Case of
Small Scale Seed Growers in Boricha District, Sidama Zone, Southern
Ethiopia
Abebayehu Girma and Jema Haji
Year: 2011
Abstract: This study aimed at analyzing the technical efficiency of haricot bean seed production
in Boricha district of Sidama zone, southern Ethiopia. It was based on cross-sectional data
collected from 120 haricot bean seed multiplying farmers during 2010/11 production season.
Technical efficiency was estimated and analyzed using the Cobb-Douglas functional form. The
estimated stochastic production frontier model indicates that input variables such as area under
haricot bean, DAP fertilizer, seed, oxen, and amount of pre-harvest labor are found to be
important in increasing the average level of haricot bean output. The result of the study further
showed that there were efficiency differentials among haricot bean seed multipliers of the study
area. The discrepancy ratio γ, which measures the relative deviation of output from the frontier
level due to inefficiency, was about 0.738. This implies that about 74% of the variation in haricot
bean output among the sample respondents was attributed to technical inefficiency effects. The
estimated mean level of TE of haricot bean seed producers was 0.695. This reveals that there
exists a possibility to increase the level of haricot bean output by about 30% through exploiting
the existing local practices and technical knowledge of the relatively efficient farmers. Among the
farm specific socioeconomic and institutional factors hypothesized to affect the level of technical
efficiency, off/non-farm income, intercropping practice, family size, and market distance had
significant negative effect on the level of technical efficiency; whereas, education, livestock
holding, and membership in seed multiplying cooperative affect technical efficiency positively
and significantly. The existing inefficiency in haricot bean seed production calls for improvement
in technical efficiency which gives a greater opportunity for promoting haricot bean seed
production. The aforementioned factors have important policy implications in that development
programs may act upon them so as to mitigate the existing level of inefficiency of farmers in the
production of haricot bean seed.
Keywords: Technical Efficiency; Haricot Bean; Cobb-Douglas
136
136. Market Chain Analysis of Fruits for Gomma Woreda, Jimma Zone,
Oromia National Regional State
Ayelech Tadesse, Moti Jaleta and Jemma Haji
Year: 2011
Abstract: In support of stimulating growth, economic development, food security and alleviating
poverty, the analysis of the marketing performance of fruits plays an important role in an ongoing or future fruit development plan. In spite of the policy options provided by the Ethiopian
government, there is very little empirical evidence on the fruit marketing system to design
appropriate policies for its improvement of fruit marketing in the study area. Therefore, this
study was aimed at analyzing the market chain of fruit for Gomma woreda, Jimma Zone of
Oromia National Regional State with the specific objectives of identifying the major fruit
marketing channels; quantifying the costs and margins for key fruit marketing channels and
identifying factors influencing fruit marketable supply in the study area. In order to attain these
objectives the study made use of primary and secondary data. The data were generated by
individual interview schedules and focus group discussions using pre-tested semi structured
questionnaires and checklists respectively. This was supplemented by secondary data collected
from different published and unpublished sources. Structure, Conduct and Performance (SCP)
approach was used to evaluate avocado and mango market and Multiple Linear Regression Model
was fitted to identify factors influencing the marketable supply of avocado and mango in the
study area. Structure of the market indicates that licensing and years of avocado and mango trade
experience did not hinder entry into avocado and mango trade, but capital, education and market
information were barriers to enter into the trade. Analysis of marketing costs and margins
revealed that processors (juice house) received the highest (88.73%) marketing margin and
producers received the least (11.27%) marketing margins in avocado and mango trade business.
Based on regression model, the study has identified the main determinants of avocado and
mango quantity supply. Quantity of avocado produced, experience, education and price of
avocado in the previous year are factors that significantly affect quantity of avocado supplied to
the market positively at 1%, 5%, and at 10% level, respectively while lack of market access affects
the supply negatively at 10% level. Similarly quantity of mango produced, education and
extension contact are factors that significantly affect quantity of mango supplied to the market
positively. Therefore one of the most important variables influencing the market supply of
avocado and mango is avocado and mango quantity produced due to this, extension work should
focus on encouraging farmers to participate in avocado and mango production. This particularly
includes, capacity building, technological applications, improved extension and plant breeding
activities, there is also a need to increase new varieties that are disease resistant and disseminate
these technologies to potential areas. The findings suggests that, effective market information
service has to be established to provide accurate and timely market information to farmers and
traders on current supply of avocado and mango output, demand and prices at national and
regional levels. Infrastructural development is also a key to support the sub-sector. In this arena,
emphasis should be given to improved storage and transportation system, offering credit and
other services to improve effective production and marketing of avocado and mango.
Keywords: Market Chain; Gomma Woreda; Structure Conduct and Performance;
Multiple Linear Regression
137
137. Impact of Trade Liberalization on the Performance of Ethioipa’s
Agriculture Versus Industry Sector: The Case of Economic Partnership
Agreement between European Union and Africa-pacific- Caribbean
Countries
Martha Yilma and Adimassu Shibru
Year: 2011
Abstract: The thesis is conducted with main objectives of assessing impact of trade liberalization
on GDP, quantity and price of export and import along with labor demand of the agriculture and
industry sectors of the country. The study used SAM data (Social Accounting Matrix) of
Ethiopian Development Research Institute (EDRI) of the 2005/06. The recursive dynamic
computable general equilibrium model was used in the study. The paper generally, considers two
scenarios on two sectors (agriculture and industry) -complete removal and gradual removal (20%
tariff reduction for the five consecutive years 2011-2015) of import tariff for each sectors.
Applying both scenarios on industry sector to see its effect on agricultural export resulted in
reduction while industrial exports increase along strategic commodities (clothing, textile, leather,
tobacco & metal). For gradual reduction of tariff by 20% each year, import level of the strategic
commodities, such as leather & metal decreases while clothing remain constant & tobacco with
textile increases; their level of import for complete removal of tariff increased, it is true for
agricultural imported items too. Labor demand for agriculture sector, which uses semi-skilled and
unskilled labor; and for industry sector which uses additionally skilled labor; shows mixed result
for both shocks. GDP of the economy, both shocks-show increment at market price and factor
cost. Applying the scenarios on the agriculture sector to be liberalized; the results of FTA on
export, import, labor demand and GDP of the economy become similar with the baseline
scenario for industry and agriculture sector‟s export, import, labor demand and GDP. Therefore,
negotiators should consider gradual reduction of tariff rate for EU-EPA so that negative impact
of trade liberalization will be minimum. In addition to tariff existence on strategic products,
government should also consider other alternatives such as development aid to solve supply
constraint problems and promoting increased productivity on each sector.
Keywords: Impact; Trade Liberalization; Economic Partnership Agreement; Social
Accounting Matrix
138
138. Effect of Adoption of Soil Conservation Technologies on Household
Food Security in Central Highlands of the Amhara Region: A Case Study
of Menz Gera District
Tale Hailemariam and Degnet Abebaw
Year: 2011
Abstract: There has been a growing interest in understanding the effect of adoption of soil
conservation technologies on the lives of the rural communities. This study aimed to examine the
effect of adoption of soil conservation technologies on household food security status. The study
was based on a household survey data conducted in 2010 of 150 sample households selected
from Menz Gera District in central Highlands of the Amhara region using three-stage random
sampling procedure. The study employs descriptive statistics and bivariate probit regression
model as analytical tools. Descriptive results show that more food secure (58%) adopted soil
conservation technology than the food insecure (31%) households and the difference was
significant at 1% level of probability. The result, further more indicated that adopter consume
more kilocalorie per day per adult equivalent (mean=2318 kcal/day/AE) than non-adopters
(mean=2070/day/AE) and the mean difference between adopters and non-adopters of soil
conservation technologies was significant at 1% level of probability. The estimated Bivariate
probit model shows that household food security status in the study area was affected by
adoption of soil conservation technologies, age and age2 of the household heads, family size, total
livestock owned ,total farm land cultivated and off-farm/non-farm income of the household
heads. On the other hand, adoption of soil conservation technologies was influenced by age;
education; development agent visit; social position; distance of the plot from residence and credit
access of the household heads. The results of the study imply that there is a need for adoption of
soil conservation technologies to get the households food secure, promoting family planning and
integrated health service to lessen the burden of population pressure on farm land, creation of
non-farm and off-farm employment opportunities, improve the livestock breads and proper
grazing land management and provide extension and credit services to the food insecure
households in the study area and to other locations with similar socio-economic and biophysical
characteristics.
Keywords: Adoption; Soil Conservation; Bivariate Probit
139
139. Farmers’ Willingness to Pay for the Conservation of Wildlife
Resources: The Case of Babile Elephant Sanctuary
Kacha Assefa and Dawit Alemu
Year: 2011
Abstract: Without information about the value that the local communities put on wildlife
conservation, it is difficult to talk about wildlife conservation. National parks and wildlife reserve
areas have great potential for generation of tourism income. However, Ethiopia is losing its
natural resources at an alarming rate as farmers and local residents are frequently clearing forests
and reserve areas such as national parks in search of new farm lands. This study is conducted to
propose participatory conservation strategy to rescue the resources and benefit the local
community through a CVM study. The specific objectives of the study are to estimate WTP of
the farmers for the conservation strategy and identify factors affecting farmers‟ willingness to pay
for the conservation. The study was conducted on farmers living adjacent to Babile Elephant
Sanctuary on 4 selected rural PAs on 120 randomly selected respondents. The result of the CVM
survey indicated that out of the 120 sample respondents 95 of them were willing to pay and
participate in the conservation of wildlife, while 25 respondents were not willing to pay at all for
the conservation. The results from the model indicated that the mean willingness to pay of the
farmers is 57 Birr for the single bounded dichotomous questions and 62 Birr for the open-ended
questions per annum per household. Aggregation of the two WTP values indicated that the total
benefits or values of the sanctuary assuming 10 years of project life at 5 percent discount rate is
9,911,350 Birr and 10,780,767 Birr. The results from the probit model indicated that total income
of the household, tropical livestock unit, total farm income, existence of protection against
wildlife damages, land holding size and training on wildlife conservation and environmental
protection were found to be positively and significantly related to willingness to pay for the
conservation of the wildlife. On the other hand, distance from the sanctuary, past wildlife damage
and initial bid values offered were negatively and significantly related to the probability of
willingness to pay for the conservation of the wildlife in the sanctuary. The result implies that
farmers living adjacent to Babile Elephant Sanctuary are willing to participate in the conservation
of the wildlife despite the various problems they face. This further suggests that programs which
accommodate the interest of the local community and the government may contribute positively
in protecting the wildlife and the sanctuary.
Keywords: WTP; Wildlife; CVM; Elephant; Probit
140
140. Determinants of Smallholder Commercialization of Horticultural
Crops in Gemechis District, West Hararghe Zone, Ethiopia
Aman Tufa Wako, Adam Bekele and Lemma Zemedu
Year: 2012
Abstract: Transforming the subsistence-oriented production system into a market-oriented
production system as a way to increase the smallholder farmer‟s income and reduce rural poverty
has been in the policy spotlight of many developing countries, including Ethiopia. However,
there are no adequate studies in Ethiopia, particularly, in west Hararghe focusing on the
determinants of the smallholder commercialization in horticultural crops. This study has
identified household level determinants of the output side commercialization decision and level
of commercialization in horticultural crops in Gemechis district, West Hararghe zone, Oromia
National Regional State of Ethiopia. The study used cross-sectional data obtained from a sample
of 160 smallholder horticultural farmers selected randomly from four kebeles in the district. A
double hurdle model was applied to analyze the determinants of the commercialization decision
and level of commercialization. In first hurdle, the result of Probit Regression Model reveals that
gender, distance to the nearest market, and cultivated land played a significant role in smallholder
commercialization decision. In the second hurdle, the result of Truncated Regression Model
reveals that household education, household size, access to irrigation, cultivated land, livestock,
and distance to the nearest market were the key determinants of the level of commercialization.
Synthesis of double hurdle model result showed that farm size and distance to the nearest market
were cross-cutting determinants of smallholder horticultural crops commercialization. The study
recommends the need for designing appropriate intervention mechanisms focusing on the
abovementioned factors so as to improve the performance of horticultural crops
commercialization.
Keywords: Smallholder; Commercialization; Market Participation; Double Hurdle
141
141. Determinants of Perceptions and Choice of Adaptation Strategies to
Climate Change among Pastoral Households in Harshin Woreda of
Somali Regional State, Ethiopia
Kader Hassan Obsiye, Fekadu Beyene and Jema Haji
Year: 2012
Abstract: A recent mapping on vulnerability and poverty in Africa put Ethiopia as one of the
most vulnerable country to climate change with least capacity to respond. Pastoralists are far
worse jeopardized because of their geographic exposure, low income, greater reliance on climate
sensitive sectors, and weaker capacity to adapt. Understanding pastoralists‟ response to climatic
changes is crucial for designing appropriate supportive policies to pastoralist adaptation strategies
of climate change in order to enhance their resilience capacity. However, studies on climate
change perceptions and adaptation strategies are rarely conducted in the pastoral areas of the
country in general and particularly in the study area so far. This study was undertaken in Harshin
Woreda of Somali Regional State with the objective of assessing and analyzing determinants of
perceptions and choice of adaptation strategies of the pastoralists to climate change. The data
were collected from 130 randomly selected households in three Kebeles based on probability
proportional to size. Descriptive statistics, mann-kendal trend test, likert rating scale, ordered
logistic regression and Multinomial logistic regression were used to achieve the stated objectives.
Pastoralist‟s perceptions were examined in correspondence with climate data recorded at
meteorological stations in Harshin Woreda. Higher proportion (89%) of the pastoralists
perceived the climate change and had better knowledge on its induced hazards, although there
are still considerable portion of the pastoralists that are yet to perceive for different reasons.
Ordered logit results revealed that factors such as sex, tropical livestock unit, total livestock
income, non-livestock income, access to livestock extension and climate change information were
significantly affecting the climate change perception. Pastoralists in the study area were using
different strategies to adapt the climate change adverse effects which include: herd composition
diversification, herd and feed management improvement, water harvesting and reserving, and
extended mobility patterns. Pastoralists were constrained by different barriers like shortage of
finance, shortage of water, resource conflict, shortage of labor, lack of information, lack of
knowledge and access to market. Multinomial Logit result showed that age, sex, climate change
information, distance to water, total livestock income, access to livestock extension, access to
credit, total non-livestock income and access to social asset redistribution system were
significantly affecting pastoralists‟ choice of adaptation strategies. The study suggests enhancing
climate change awareness among pastoralists, facilitating credit availability and use, strengthening
of climate change-gender-sensitive mainstreaming approaches, facilitating access to livestock
extension service, improving livestock marketing services and facilities, ensuring harmonization
of inter-pastoral mobility and institutionalization of the pastoralist support system so as to
strengthen the local pastoralists‟ resilience capacity to the adverse impacts of climate change.
Keywords: Climate Change; Pastoralist Resilience Capacity; Adaptation Strategies; Likert
Rating Scale; Multinomial Logistic Regression; Ordered Logistic Regression
142
142. Factors Influencing Credit Repayment of Smallholder Farmers in
Lume District, Oromia Regional State
Desta Hordofa and Legesse Dadi
Year: 2012
Abstract: The main aim of this study is focused on the analysis of factors influencing the loan
repayment performance of smallholder farmers for the fertilizer credit provided through Primary
Agricultural Service Cooperatives (PASC) in Lume district, East Shewa Zone. In this study
primary data were collected from 120 randomly selected fertilizer borrower farmers using
structured questionnaires. Furthermore, qualitative data was collected in group discussion with
farmers and PASC and Lume Adama Farmer‟s Union that were involved in fertilizer credit
delivery. A two stage random sampling was adopted to select three Primary Agricultural Service
Cooperatives and six kebele administrations were randomly selected from the three PASC.
Secondary data collected from relevant sources were used to assess the repayment performance
of the study area. Descriptive statistics was used to describe the socio-economic, institutional
behaviors of the respondents and revealed that there exists significant mean difference regarding
cultivated land size, Educational level, age, number of livestock owned, and family size and
savings habits. In economic model Tobit was employed to identify factors influencing loan
repayment performance of the respondents. Thirteen explanatory variables were included in the
model out of which four were found to be significant (age, level of education, cultivated farm size
and number of livestock owned). The results suggest that intensification of the smallholder farm
size good taking care of the livestock asset would facilitate timely repayment, as well as develop
self-reliance of farmers in livestock production.
Keywords: Credit; Repayment; Fertilizer Credit; Service Cooperatives; Tobit Model
143
143. Economic Efficiency of Wheat Seed Production: The Case of
Smallholders in West Gojjam Zone of Amhara Region
Solomon Bizuayehu and Jema Haji
Year: 2012
Abstract: There is huge seed supply shortage in Ethiopia, though it is a basic input in crop
production. One way to increase seed supply and crop productivity is through enhancing the
efficiency of seed production, because it is the basic input without which production is
impossible. The aim of the study was to measure the level of technical, allocative and economic
efficiencies of wheat seed production and to identify factors affecting them in the study area. The
study was conducted using cross-sectional data collected in 2010/11 production season from 150
randomly selected farm households from Womberma Woreda of West Gojjam zone, Amhara
National Regional State. Stochastic production frontier model was used to estimate technical,
allocative and economic efficiency levels, whereas Tobit model was used to identify factors
affecting efficiency levels. The results indicate that there was significant inefficiency in wheat seed
production in the study area. Accordingly, the mean technical, allocative and economic
efficiencies of sample households were 79.9%, 47.7% and 37.3%, respectively. Results of the
Tobit model reveal that interest in wheat seed business and total income positively and
significantly affect technical efficiency while total expenditure has a negative and significant
effect. Education level and livestock ownership have a significant positive impact on allocative
and economic efficiencies while participation in share cropping and total cultivated land have a
significant negative effect on allocative and economic efficiencies, respectively. The mean
technical efficiency levels further suggest that wheat seed farmers in the study area could increase
their production by 20% without using extra inputs. Alternatively, farmers can reduce, on
average, their cost of production by 52.3% without reducing the existing level of output. As a
concluding remark, the result of the study indicates that there is a room to increase the efficiency
of wheat seed production in the study area, which is a very limiting input in the production of
wheat. Therefore, policies and strategies of the government should be geared towards the above
mentioned socio-economic and institutional factors to improve farm productivity of wheat seed
in particular and the food security condition in general.
Keywords: Economic Efficiency; Wheat; Seed; Production; Tobit Model
144
144. Magnitudes and Determinants of Food Insecurity among AgroPastoral Households in Jijiga District, Somali Regional State, Ethiopia.
Sadik Abdi, Jema Haji and Lemma Zemedu
Year: 2012
Abstract: An understanding of the major determinants and magnitudes of food insecurity are
important for interventions aiming at minimizing food insecurity. Therefore, this study was
conducted to measure the determinants of food insecurity status among agro-pastoral households
in Jigjiga district. To identify determinants and magnitude of food insecurity which of the rural
agro-pastoral households and find out their coping mechanisms, was the objective of this study.
In order to achieve this objective, the data were analyzed using descriptive statistics like mean,
standard deviation, percentage and frequency distribution. Univariate analysis such as T-test and
Chi-square (x2) test, were also used to describe characteristics of food insecure households. The
survey result showed that 52.9% of the sampled respondents were food insecure, while only
47.1% were food secure. A logit regression model was fitted to identify the variables affecting
household food insecurity in the study area. Among the 14 explanatory variables included in the
logistic model, seven were statistically significant. These were age of household head, education
of the household head, household size in AE, tropical livestock unit, dependency ratio, and
proportions of food expenditure. Dependency ratio, proportion of food expenditure, education
of household head and number of oxen were significant at 5%. The Age of household head and
household size were also significant at 10% where tropical livestock unit was significant at 1%.
The model estimated and predicted correctly 95.7% of the sampled cases; 95.4 % food secure
and 95.9% food insecure. On the other hand, borrowing cash or grain from relatives, sale of
livestock, reducing frequency and amount of meals, food aid and remittances were found to be
more frequently practiced copping strategies by agro¬-pastoralists in the study area. Finally,
curbing family size by implementing national population policy through family planning practices,
giving priority to genetically improve the domestic livestock, and oxen restocking are paramount
aids to prevent food insecurity. Furthermore, to curb the ever increasing dependency ratio, there
should be employment creation and encouragement of micro projects which provide public
works, just like those safety net programs. Reducing household food insecurity, require land
rehabilitation, introduction of fertilizer application small scale irrigation development and
empowering of households‟ purchasing power.
Keywords: Food Insecurity; Magnitude; Agro-Pastoral; Logit Regression
145
145. Impact of Rubber Plantation on Livelihoods and Ecosystem Services
in Gura Ferda Woreda, Bench Maji Zone, Southern Nations Nationalities
and Peoples Regional State, Ethiopia
Melatework Ketema, Aseffa Seyoum and Taddess WoldeMariam
Year: 2012
Abstract: The study was conducted in Gura Ferda Woreda, Bench Manji Zone. Cross-sectional
data were collected from a total of 300 sample households (100 rubber plantation wage laborer
participants, 100 farmer non-participants and 100 coffee plantation wage laborer nonparticipants). This paper evaluated the impact of rubber plantations on income, human, physical,
social and financial capital of households. Moreover, the study has estimated the change in
ecosystem services attributable to the Land Use and Land Cover change due to introduction of
rubber trees. Generalized value coefficients were employed in ecosystem service valuation.
Results suggested that the LULC shift following rubber tree adoption resulted in $ 2.74 million
loss between 2005 and 2011 in ecosystem service. Livelihood asset impact of rubber plantation
was estimated using PSM. Participants were compared with farmer non-participants with respects
to livelihood assets. Results suggested that participation had a positive and significant effect on
non-farm income, health care and education investment, domestic asset value, social capital and
credit service. However coffee plantation wage laborer non-participants were better off in health
care benefits, social capital and credit services compared to participants.
Keywords: Impact; Rubber Plantation; Livelihood; Ecosystem; PSM
146
146. Impact of Productive Safety Net Program on Households’ Food
Security and Asset Holding: The Case of Haramaya District in Oromia
National Regional State, Ethiopia
Lakech Dires, Mengistu Ketema and Lemma Zemedu
Year: 2012
Abstract: Food insecurity is a major problem in developing countries and undermines people in
various regions of the world. Cognizant to this serious problem, various food security programs
are underway. The Productive Safety Net program is one of the largest these operating social
protection programs. This study was carried out to evaluate the impact of productive safety net
program on households‟ food security and asset holding in Haramaya District using survey data
collected from 180 households. The sample respondents were drawn from both program
beneficiary and non-beneficiary households (90 each) randomly, and the data collected were
analyzed using descriptive statistics and econometric tools. On the basis of this analysis, the
results from descriptive statistics indicated that program beneficiary households‟ asset values
increased by Birr 1779, and non-beneficiary households asset values increased by 1391 Birr. This
result indicate that assets value of beneficiary group was increased more than that of nonbeneficiary household by birr 388. However, a mean asset value is significant difference between
them. The findings of the study also showed that 18 percent of the households, in the district are
food insecure. Applying a propensity score matching technique to estimate the econometric
result, the study examined 10 independent variables and it is found out that 5 of them were
important to characterize the participation. The study found that the program beneficiaries had
calorie intake which statistically non-significant from that of non-beneficiaries group. The same
was true regarding asset holding. However, the result indicated there was an improvement on
calorie intake and household asset of participant households due to the program intervention.
Hence, this has an encouraging message for program designers, implementers, and funding
agents to take proper action to achieve the intended goals.
Keywords: Food Security; Score Matching; Productive Safety Net Program; Propensity
(PSM); Household Asset
147
147. Economic Impact of HIV/AIDS on Agricultural Production of the
Rural Households: The Case of Kersa and Gursum Woredas of East
Hararge Zone, Oromiya Region, Ethiopia
Abyote Mulugeta Mesfin, Mengistu Ketema and M. Senappathy
Year: 2012
Abstract: The effects of the HIV/AIDS are largely of an economic nature and go beyond health.
It is worthwhile for the policy makers and decision makers to appreciate the problem of the
pandemic and to counter the spread and the effects of HIV on production units, right from the
household level to the national level. Hence, this study initiated to address productive labour loss,
identifying coping strategies and responses against the shock in affected households and measure
the HIV/AIDS effect on production. The study carried out in Kersa and Gursum woreda and
data were collected from 158 farmer households. Descriptive analysis was used to analyze
effective labour supply and coping mechanisms available at households. Cobb-Douglass
production function and decomposition analysis were used to determine the loss of production
because of HIV/AIDS and to decompose yield difference between affected and non-affected
households in to its constituent parts. The finding of this study showed that the effective labour
supply in affected households was less by 18.3 percent (2.9) man - equivalent day) due to
HIV/AIDS as compared to non-affected households; this resulted in change in composition of
households‟ members, households‟ dependency ratio and women labour workload. Moreover,
due to the reduction of labour supply, cultivated land for agriculture and livestock ownership in
the affected households reduced. The households` financial expenditures were higher for health
and HIV/AIDS related care and support compared to agriculture and education. Moreover,
households‟ financial capacity reduced, dependency on natural resources (wood) was increased
and soil fertility management reduced as compared to non-affected households. In additions,
there were lower participation and access to agricultural extension services by affected
households as compared to the non-affected households. A coping strategies have been utilized
against HIV/AIDS shocks by affected households were: Labour share and community support
during peak production period, renting out of farm land, change in cropping pattern, increased
school dropout rate and women workload, financial expenditure on nonproductive asset,
depletion of financial capital and the use of wood as main source of income. Moreover minimal
soil fertility management practices, late land preparation and planting were one of the most
mentioned household`s responses against HIV/AIDS shock in affected households. The
estimation of Cobb-Douglass production function showed that there is heterogeneity in
production between the affected and non-affected household and the crop yield of affected
households was lower than in the non-affected households by 23.4 percent due to HIV/AIDS
impacts. The difference of output in the two groups of households attributed with the negative
effect of HIV/AIDS is 13.8 percent and input difference 9.6 percent. Therefore, to reverse the
impact of HIV/AIDS in agriculture, local government bodies have to prepare participatory
community HIV/AIDS impact reduction and mitigation strategies. The agriculture sector should
consider and take HIV/AIDS as major development agendas to support and strengthen the
existing capacity of positive response against HIV/AIDS such as community labour support and
share of oxen. In additions, woreda level sectors integration is an important and has to play a
great role to limit further transmissions of HIV/AIDS.
Keywords: Economic; Impact; HIV/AIDS; Production; Cobb-Douglas Function
148
148. Analysis of Market Chains of Ginger (Zingiber Officinale Rosc): The
Case of Boloso Bombe and Kindo Koisha Woredas of Wolaita Zone,
SNNPR, Ethiopia
Alemayehu Asale and Negusie Semie
Year: 2012
Abstract: This study tries to analyze the market chains of ginger (Zingiber Officinale Rosc) in
Boloso Bombe and Kindo Koisha woredas of Wolaita zone in SNNPR with the specific
objectives of investigating marketing costs and margins, market participants and their roles plus
constraints and prospects of ginger production and marketing. Attempts were also made to
identify factors affecting the supply of ginger in Boloso Bombe and Kindo Koisha. Structure
Conduct Performance approach was used to examine marketing costs and margins, market
participants, their roles, and linkages. In addition, the Multiple Linear Regression Model was
employed to see factors that determine the supply of ginger. Results of the study have shown that
the productivity as well as post-harvest management in general, and dry ginger preparation in
particular, was by far poor. However, farmers sold a large amount of dried ginger out of which
the semi-wholesalers and collectors respectively have bought 37.2 % and 24.0 % in 2010/11.
Sample markets were inefficient in Addis Ababa and Bombe characterized by oligopolistic market
structure. The findings of this research have also suggested that developing farmers‟ ability to
negotiate via cooperatives is best way of weakening the oligopoly structure. In Bombe, traders
(semi-wholesalers) first deal each other and set the maximum price limit below which the
negotiation takes place. The structure of markets has shown that capital is a key barrier to entry.
Education level and experience, to some extent, also seem to hinder entry to ginger trading
business. However, license was not barrier to entry. Market information is not evenly
disseminated. High marketing margins and low producers‟ share are also characteristics of the
markets. Moreover, the study has evaluated the main factors affecting the supply of ginger based
on the Multiple Linear Regression Model. Thus, the econometric model has identified the
amount of introduced seed made available for farmers to be the most important variable
affecting (positively) the supply of ginger. As a result, the findings of this work have suggested
Research Institutions, NGOs and other stockholders can play a vital role in addressing the
farmers‟ question of introduced seed. Further, the number of livestock owned significantly and
positively affected the volume of ginger supplied. The results of this manuscript also suggested
building household assets (i.e. livestock) through household asset building programs will remedy
the case. But income from other sources (exclude ginger) adversely affected the amount of ginger
supplied. Thus, the findings pointed out that farmers should compare and contrast between the
two and decide accordingly. Hence, extension workers and other concerned bodies were
expected to play valuable roles in teaching and directing the farmers so as they opt effectively and
efficiently.
Keywords: Market Chain; Ginger, Marketing Costs; Margins; Structure-ConductPerformance
149
149. Assessment on the Performance of Sorghum Seed Supply System: The
Case of Babile District, Eastern Hararge Zone, Oromia Regional State
Dagmawit Bekele, Fekadu Beyene and Mengestu Ketema
Year: 2012
Abstract: This study examines performance of sorghum seed supply system in Babile district,
East Harerge zone of Oromia Regional State. The main objectives of the study were to examine
the performance of sorghum seed supply system, identify factors affecting sorghum seed supply
and farm-level demand for sorghum seed in the study area. Both primary and secondary data
were used and a total of 140 sample households from four potential sorghum producing kebeles
of the district were surveyed using probability proportional size sampling technique. The
performance of sorghum seed supply sector in terms of the proportion of sorghum seed supplied
by the farmers, level of use of improved and local sorghum varieties, and source of seed was
examined. Multiple linear regression model was used to identify factors affecting sorghum seed
supply and a Double hurdle model was also applied to identify factors affecting farmers‟
participation decision in purchasing of sorghum seed and quantity purchased of sorghum seed in
the study area. The descriptive analysis reveals that the major seed supply system in the district is
farmers/informal seed supply system. About 45.7% of the respondent got sorghum seed from
their own saved seed and 29.3% and 17.9% of the respondent get the seed from
relatives/neighbor and inherited from family, respectively. Result of Multiple linear regression
model reveals that out of 12 explanatory variables, 5 of them significantly influenced quantity
supplied of sorghum seed. Double hurdle model result also shows that among 12 explanatory
variables hypothesized to affect quantity supplied of sorghum seed, 7 explanatory variables were
found to be significant. 4 variables were also found to significantly influence the quantity
purchased of sorghum seed. Therefore, raising awareness and capacity building of farmers via
provision of appropriate training on better management practice and incorporate new
technologies, and formation of market linkage and cooperatives to address problems like lack of
access to credit, market information and delivery of improved production inputs are the actions
to be taken to strengthen the seed sector‟s contribution to the district‟s development.
Keywords: Performance; Sorghum Seed; Supply; Double Hurdle Model
150
150. Willingness to Pay for Anti-Retroviral Drugs among People Living
with Human Immunodeficiency Virus: The Case of Kuyyu District-North
Shoa Zone, Oromia Region
Assefa Hailu and Lemma Zemedu
Year: 2012
Abstract: In many of African countries, farming and off-farm rural occupation provide a
livelihood for more than 70 % of the population-84% In Ethiopia and 96.5% in Kuyyu district,
North Shoa Oromia National Regional State. AIDS has seriously affected many nations,
communities and Households. However, with the advent and increasing accessibility of
antiretroviral therapy, the morbidity and mortality rates among the PLHIV has declined
dramatically leaving HIV/AIDS to become a fundamentally chronic treatable disease with far
reaching economic and social consequences. Currently, the provision of ARV drugs is free with
the generous assistance gained from its development partners. However, there are signs of
funding scarcity for AIDS care and treatment globally. The situation therefore calls for the
participation of parties at stake especially the PLHIV to positively engage on their own issues.
This study is therefore aimed to estimate the Willingness to Pay (WTP) amount by the PLHIV
for the ARV drugs. It also aims to identify the factors that affect this willingness and measure
their relative significance. The study is carried out in Kuyyu district of North Shoa Zone, Oromia
National Regional State and data were collected from a total of 123 respondents. Respondents
were randomly selected at the district‟s ART center from 1524 total PLHIV living in the district.
The result of the descriptive statistics shows that married respondents (20 out of 30, 66.7 %) bid
higher WTP amount than single respondents; more educated people (those above 1st cycle of
education) are also willing to pay higher amount than illiterate ones (55 %). Most (117 out of 123,
95%) of the respondents know that the ARV drugs can sustain the life of PLHIV more than 10
years-indefinitely. Estimating the mean WTP is done by using an econometric tool- Tobit
Regression Model and found to be 101.27 Birr per month. Thirteen explanatory variables were
used for the Tobit Model of which 5 of them were found to be significant to affect the
Willingness of PLHIV to Pay for ARV drugs. These are Education level, Disclosure, Annual
Income, Total cost incurred for treatment of Opportunistic Infections (OIs) and Initial Bid
Value. This study also compared the WTP amount between respondents who are on-ART and
Pre-ART and found out that the mean WTP amount for respondents who started taking the
ARV drugs is higher (105.98 Birr) than the mean WTP of the Pre-ART respondents (93.85
Birr).From the study results, it is recommended that much effort is needed to promote
disclosure, enhance the economic status of the PLHIV and devise ways of reducing the cost of
OIs treatment. This calls for all development actors (both state and non-state) to consider the
economic, health, nutritional and social factors of the PLHIV while planning any development
program which promotes positive engagement of the PLHIV on their own issues.
Keywords: HIV/AIDS; PLHIV; ARV; OIs; Morbidity; Mortality; WTP
151
151. Priority Area in Amhara National Regional State, Ethiopia
Yalfal Temesgen Tigabu, Ayalneh Bogale and Mengistu Ketema
Year: 2012
Abstract: Forest represents an important resource base for economic development. If managed
wisely, forest had the capacity to provide a perpetual stream of income and subsistence products,
while supporting other economic activities through its ecological services and functions. Despite
the importance of forest in sustaining livelihood and poverty smoothening in rural communities,
it is highly depleted. Besides, rehabilitation initiatives in Ethiopia to date are rarely participatory.
Even, community forests are poorly conserved and highly degraded. Therefore, to enhance
participatory rehabilitation initiatives for sustainable management, this study examined
households‟ willingness to pay for rehabilitation of degraded forest resources in a hypothetical
market. The study was conducted in Sekella woreda of the Amhara region, northwestern
Ethiopia. A total of 120 households had been surveyed in the study area in November and
December 2011. During the survey, Contingent Valuation Method with double bounded
dichotomous choice with follow up question format was applied to elicit willingness to pay of
rehabilitation of degraded forest resources. Descriptive statistics were used to describe sample
households in terms of some desirable variables and an ordered probit model was employed to
analyze determinants of households‟ willingness to pay for the rehabilitation of degraded forest
resources as well as bivariate probit model uses for the estimation of mean WTP from the double
bounded responses. The study indicates that 75% of the surveyed households showed their
willingness to pay if the rehabilitation of the degraded forest will be carried out. The bivariate
probit model result shows that mean willingness to pay for rehabilitation of degraded forest
resources ranged from ETB 19.18 to 21.02 ETB. The ordered probit model result also revealed
that age, social participation in the kebele, distance of farmland from the forest priority area,
perception of fertility of farm plots and Main market distance from the residence are significant
predictors of WTP for rehabilitation of degraded forest resources. Therefore, in designing the
rehabilitation projects for the woreda policy makers need to take these socio-economic and
institutional factors in to consideration.
Keywords: Forest Resources; Rehabilitation; Willingness to Pay; Sustainability; Probit
Model
152
152. Determinants of Farmers’ Participation in Preventive and Control
Measures of Invasive Species: The Case of Parthenium in Boset Woreda,
East Shewa Zone of Oromiya Region
Abiy Alemu, Dawit Alemu and Adam Bekele
Year: 2012
Abstract: Parthenium is one of the invasive alien weeds that affects agricultural production and
productivity of Ethiopian farmers. Parthenium negatively affects agricultural production and
productivity by infesting crop and pasture lands and being a threat to human health. It is found
widespread in Boset Woreda of Oromyia National Regional State. This study was initiated with
the objective of assessing farmers‟ perception on the different socioeconomic impact of
parthenium and identifying factors influencing farmers‟ participation in the preventive and
control measures of parthenium in the study area. Primary and secondary data were used to study
the participation of farmers in preventive and control measures and the data were analyzed using
descriptive and econometric methods. Results of descriptive analyses indicated that most of the
sample farmers are aware of parthenium, its distribution, and means of dissemination, its negative
impact on crop and livestock production and human health. Despite this it was found out that
farmers‟ awareness on the prevention measure was incomplete. However, they were found to
follow traditional methods of controlling the weed. Control of parthenium weed in the woreda is
entirely based on labour intensive measures such as hand weeding, manual clearing, and oxen
ploughing. About 86% of the farmers plough three times before sawing. This traditional method
of ploughing measures was not an efficient method to control parthenium weed distribution. In
identifying the determinants of farmers‟ probability of participation and intensity of participation
Tobit model was employed. The model result indicated that, both the probability of participation
and intensity of participation appear to be significantly and positively influenced by education
level of the household, livestock ownership, sex of the household head, and existence of
parthenium on farmers‟ plot, Assistance and perception of the farmers‟ about the weed. Age of
the household head influenced the probability of participation significantly but negatively. The
overall finding of the study underlined the crucial importance of building farmers‟ capacity to
own and develop farm assets, awareness creation, developing linkage and collaboration among
concerned stakeholders and implementing integrated weed management and control packages
with full participation of the farmers.
Keywords: Prevent; Control; Invasive Species; Parthenium; Tobit Model
153
153. Performance and Integration of Onion Markets: The Case of
Kombolcha District of East Hararghe Zone, Ethiopia
Dereje Regasa and Lemma Zemedu
Year: 2012
Abstract: This study was conducted to know the performance of onion marketing in Kombolcha
district of Eastern Hararghe Zone and markets integration between secondary and central onion
market. The specific objectives were to analyze S-C-P of onion market and to analyze the degree
of spatial integration between secondary and that of central onion market. To achieve these
objectives, secondary and primary data were collected. Questionnaires were prepared for farmers
and traders. One hundred farmers from five rural kebeles and 33 traders were interviewed with
enumerators fluent in local language. Five year onion price series of Addis Abeba, Harar and Dire
Dawa markets were taken in to consideration to undertake market integration analysis.
Performance and integration of onion market were evaluated using structure, conduct and
performance approach; correlation coefficient, co-integration and error correction model.
According to the results, price setting, unstable price, lack of real information, weighing scale
deception, land shortage and onion seed were the major problems identified. Traders were also
reported constraints like transportation, onion perishability, lack of support from government
and onion supply shortage as a major problem. Concentration ratio for village collectors and
wholesalers depicted concentration of wholesaler than collector accounts 72% and 62% market
share respectively which is strongly oligopolistic market. S-C-P model were also employed and
identified that years of experience on trading and capital were barriers to enter the market.
Integration research also depicted that central market was not integrated with the regional
markets. Improving marketing facilities and services, organizing and supporting producers‟
marketing service cooperatives, improving marketing infrastructure, like road and communication
would create favorable conditions for onion marketing. Moreover, provision of transport, credit
service and reliable information to all market participants need to be given due attention.
Keywords: Onion, Market; Market Performance; Market Integration; Market Margin;
Traders
154
154. Households' Willingness to Pay for Improved Solid Waste
Management in Urban Area: The Case of Addis Abba, Ethiopia
Nigussie Alemu, Dawit Alemu and Negussie Semie
Year: 2012
Abstract: In Addis Ababa, the municipal authorities have been responsible for solid waste
management (SWM) service, however, over the years, lack of participated households in solid
waste management. Due to this problems have led to inefficiency in the provision of services at
different level. Therefore, this study has filled the existing gap of solid waste management
problems in the city. The study employed choice modeling (CM) methods in order to determine
households willingness to pay (WTP) for different service alternatives, to rank of the service
attributes in order of their importance for the households and estimate the implicit price of the
service characteristics. The study found out that households highly value the improvement in
solid waste management. The households WTP for the provision option plan were Birr 37.31 per
month. The households WTP of additional charge for collection frequency and sorting were Birr
7 and 4 per month in the basic and socio-economic model, respectively. The CM reveals that
households drive a positive utility from the services provision in the study plan.
Keywords: Solid Waste Management; Willingness to Pay; Addis Ababa
155
155. Assessment of Food Insecurity, Its Determinants and Coping
Mechanisms among Pastoral Households of Afar National Regional State:
The Case of Zone One, Chifra District
Indris Siraje and Adam Bekele
Year: 2012
Abstract: Influenced by the current vulnerability of pastoral households, this study was carried
out in Chifra district of Afar National Regional State with specific objectives of assessing the
status of food security, identifying the major determinants of food insecurity and the local coping
strategies employed by different food security status groups to cope with food insecurity. In
order to achieve these objectives cross-sectional data on demographic and socio-economic
characteristics, and institutional aspects were collected from 120 households that were drawn by a
multi-stage sampling procedure from 3 randomly selected samples Pastoral Kebeles through
structured interview schedule and focus group discussion during January and February 2011. The
main tools of analysis for this study include descriptive and inferential statistics and binary logit
econometric model. Results of descriptive and inferential statistics indicate that using the calorie
intake approach, 65.8% of sample respondents were food insecure, while 34.2% were food
secure. Results also indicate that there was a significant mean difference at different level of
significance between the food secure and food insecure households in terms of age of household
head, sex of household head, household size in adult equivalent, dependency ratio, livestock
holding, income from livestock sources, non-farm income and livestock disease incidence.
Further analysis showed that sale of small animals (shoats), reducing number and size of meals;
seasonal migration (some of the family members), receiving food aid and borrowing cash or food
from neighbors or relatives were the frequently practiced copping strategies by pastoralists of the
study district. On the other hand, analysis of the logistic regression model resulted in eight
statistically significant variables affecting the food security status of the sampled households in
the district. Family size in adult equivalent, age of the household head, dependency ratio,
livestock disease incidence were causing food insecurity and sex of the household head, livestock
holding, income from livestock and non-farm income were working against food insecurity. In
spite of the magnitudes of food insecurity, this thesis recommends that appropriate policy
measures be taken towards limiting dependent population size through integrated health and
education services, empowerment of the pastoralist women and supporting the livestock sector
with proper forage development as well as expanding veterinary service and disease control
programs.
Keywords: Food Insecurity; Binary Logit; Coping Strategies
156
156. Analysis of Vegetable Marketing in Eastern Ethiopia: The Case of
Potato and Cabbage in Kombolcha Woreda, East Hararghe Zone, Oromia
National Regional State
Yeshitila Alemu and Jema Haji
Year: 2012
Abstract: This study analyzes the performance of vegetable market in Kombolcha Woreda of
east Hararghe zone and four major destination vegetable markets. The specific objectives of the
study are to identify the factors affecting vegetable supply to the market, analyze market channels,
and the role and linkages of market agents and the integration of four destination vegetable
markets. Factors affecting households decision on how much quantity to sale was estimated using
Heckman two stage econometric models. Vegetable market channels, and the role and linkage of
marketing agents were evaluated using structure, conduct and performance approach. Cointegration and error correction model were used to analyze the integration of the selected
vegetable markets for the period from 2002/2003 to 2009/2010. The findings of the study
indicated that out of 140 households surveyed, 48% produce both potato and cabbage while 52%
produce potato only. The share of the four largest traders in Kombolcha, Jijiga and Dire Dawa
market are 34%, 58% and 61% respectively showing weak oligopoly for Kombolcha, but strong
oligopoly for Jijiga and Dire Dawa. Shortage of capital was the main barrier to entry into
vegetable market in all markets. Though both traders and farmers use different source of
information, it was not well organized and established in a transparent manner. Market
information was obtained by farmers from other vegetable producers and brokers which were
not genuine source of information. Producers survey result show weak bargaining power on
prices, lack of standard weighing scale, disease and inadequate input supply as the major
production and marketing problems in the district. The result of the marketing cost and margin
indicates marketing cost for brokers was found to be the least while the marketing cost incurred
by wholesalers was found to be the highest. About nine different market channels were identified
with each channel having different marketing margin. For producers, channel seven, eight and
nine were found to be the more efficient. Factors affecting farmers‟ decision and supply of
vegetables to the market has been analyzed using Heckman two stage models. Variables like
extension contact, access to irrigation, education level, land holding and fertilizer application have
a significant contribution to vegetable production and its supply to the market. The model results
show extension contact, access to irrigation, education level, land holding and fertilizer
application were found to have a significant effect on vegetable supplied to the market. The
Engle and Granger co-integration analysis confirmed the integration of the markets in the long
run. ECM results show that the four markets also have a long run relationship. The finding of the
Granger causality test indicates that with the exception of Dire Dawa and Jijiga there is a unidirectional relationship among other markets with no feedback mechanism in price formation
among them. Establishing and strengthening producers‟ cooperative, introduction of improved
storage system, provision of timely market information, and conducting research on vegetable
diseases are the major recommendations drawn from this study.
Keywords: Vegetable Marketing; Performance; Heckman Two Stage; Market Channels;
Co-Integration; ECM
157
157. Economic Efficiency of Groundnut Production: A Comparative Study
of Local Seed Business Project Participant and Non-Participant Farmers
in Babile District, Eastern Ethiopia
Hareg Gebrezgabher, Jema Haji and Fekadu Beyene
Year: 2012
Abstract: The objective of this study was to assess the economic efficiency of groundnut seed
producing smallholder farmers in Babile district of Oromia zone, eastern Ethiopia. It employed
stochastic efficiency decomposition technique to analyze the technical, allocative and economic
efficiency of farmers. It was based on cross-sectional data collected from 160 groundnut seed
multiplier farmers during 2011/12 production season. Economic efficiency was estimated and
analyzed using the Cobb-Douglas functional form. The estimated mean technical, allocative and
economic efficiency of groundnut seed farmers was 75, 58 and 46 percent, respectively. The
average value indicates the existence of substantial allocative and economic inefficiency in
groundnut seed production in the study area. However, low allocative and economic efficiency
scores reveal that there is a considerable room to increase agricultural output without additional
input, given the existing technology. An allocative efficiency of 58 percent indicates that if these
farmers operate at full allocative efficiency levels, they could reduce on average their cost of
production (or the cost of the purchased inputs) by 42% and produce the same level of output.
Although participant groundnut seed producer farmers more efficient than non-participant the
overall study found considerable inefficiency of groundnut seed production under both group
(participant and non-participant) farmers. Moreover, the participant and non-participant farmers‟
mean economic efficiency was 58 percent and 35 percent, respectively. This means participant
and non-participant farmers can reduce on average their costs of production (or the cost of the
purchased inputs) by 42 percent and 65 percent, respectively, to produce the same level of
output. The variables such as age, age square, total cultivated land, frequency of plowing, ox
ownership, training and use of improved seed were positively and significantly related to
economic efficiency of groundnut seed producers. However, the coefficients of variables such as
age square and extension visit were negatively and significantly related to economic efficiency of
groundnut seed producers. The economic efficiency of Farmers who participated in the local
seed business project in the groundnut seed production was positively and significantly
influenced by age, frequency of plowing, extension visit, training and use of improved seed. On
the other hand, that of non-participant farmers was positively and significantly influenced by
farm size, ox ownership, training and use of improved seed. However, extension visit was
negatively and significantly affected for the non-participant farmers. Overall, this study indicated
that substantial productivity gains can be obtained by improving the economic efficiency of
groundnut seed producers. To meet this objective, the government and its stake holders in
groundnut seed producers should came up with an institutional environment that facilitates
farmer‟s accessibility to use improved seed, training, and land preparation methods as well as
improved extension service.
Keywords: Groundnut; Economic Efficiency; Stochastic Frontier; Babile
158
158. Impact of Resettlement Programme on the Livelihood of Settlers: The
Case of Sassiga District of East Wallaga Zone, Oromia Regional State,
Ethiopia
Adugna Merga Kitila, Jema Haji and Fekadu Beyene
Year: 2012
Abstract: This study evaluates the impact of resettlement programme implemented in the year
2003-2005 on the resettled farmers‟ livelihood in Sassiga district of east Wallaga zone. Towards
this end, cross-sectional survey data were collected from 200 randomly selected households of
which 120 were resettlement program participants selected from three rural kebeles and 80 were
non-programme participants selected from two rural kebeles of the district with similar
geographical and socio-economic characteristics of the resettlers before the programme. This was
to compare programme participants with non-programme participants, in terms of annual
income, consumption expenditure, asset ownership and household‟s food consumption in kilocalorie intake per AE per day. Data were analyzed using descriptive statistics and econometric
model called Propensity Score Matching (PSM). Results from descriptive statistics revealed that
among programme participants and non-participants, 84.2% and 80% were food secure. In
addition, PSM results show that the annual income, consumption expenditure, asset formation
and food consumption in kcal/AE of programme participants are greater by 18%, 15.6%, 20%
and 3.5% respectively than non-programme participants. The results of econometric model also
revealed that resettlement programme had a significant positive impact on kcal intake, annual
income and consumption expenditure. This is because the programme ensured food security by
allowing programme participants to produce marketable surplus to be free from dependency
syndrome. Finally, livelihood diversification, well organized extension service delivery, access to
credit service for the purchase of agricultural inputs and integrated development programme
arrangements are the policy recommendations drawn from this study.
Keywords: Resettlement Programme; Impact; Livelihood; Propensity Score Matching
159
159. Farm Households’ Decision to Invest in Soil Conservation: The Case
of Gozamin District
Biruk Belay and Mengistu Ketema
Year: 2012
Abstract: Land degradation in the form of soil erosion and nutrient depletion presents a threat to
food security and sustainability of agricultural production in many developing countries.
Governments and development agencies have invested substantial resources to promote soil
conservation investment practices as part of an effort to improve environmental conditions and
reduce poverty. However, few rigorous empirical studies have produced mixed results on factors
influencing farmers' decisions to invest in soil conservation investment practices. This study
investigates the factors influencing farm households‟ decisions to invest in soil conservation and
the intensity of investment in the Ethiopian highlands, Amhara region, using cross-sectional data
collected from 140 households managing 432 farm plots in 5 rural kebeles of Gozamin district.
In addition, secondary data were collected from relevant sources such as woreda office of
agriculture and rural development and others. Descriptive statistics such as mean and percentage
were used to describe socio-economic and institutional characteristics of the sample households,
and physical characteristics, in the study areas. This study used a double-hurdle model in the
analysis to investigate the factors influencing farmers' decisions to invest in soil conservation and
intensity of investment practices, with a particular focus on soil bunds and stone bunds. The
results suggest that the decisions to adopt soil conservation investment practices and intensity of
investment appear to be explained by different processes. Livestock holding measured in terms
of tropical livestock unit (TLU) seem to have a mixed effect on both the investment and intensity
of investment decisions. While a farmers‟ investment decision is influenced by distance of the
plot, off farm income, knowledge of conservation practices, perception to security of tenure,
access to extension service of household and total livestock holding, intensity of conservation is
determined by total farm size, plot area, knowledge of the existence of conservation technologies,
perception to security of tenure, access to extension service, participation in training, total
livestock holding and availability of labor force. The study findings suggest that selecting priority
intervention for soil conservation investment practices in the study area should be by considering
various socio-economic, institutional and physical factors. Unfortunately, this implies that major
changes in soil conservation investments will require attention to all of these factors, because no
single factor is controlling enough to be used single-handedly as a major policy leverage
instrument.
Keywords: Land Degradation; Soil Conservation; Double-Hurdle Model
160
160. Technical Efficiency Analysis of Malt Barley Production: The Case of
Smallholder Farmers in Debark Woreda, North Gondar Zone of the
Amhara National Regional State
Endalkachew Yehun and Admasu Shibru
Year: 2012
Abstract: Ethiopia currently imports about 69% of its malt barley requirement. The volume of
import and related hard currency demand increase with the capacity expansion of the existing 6
breweries and beer production operation of the new breweries which are under establishment.
Recent effort has been started in the country to substitute the increasing barley importation
through smallholder farmers‟ domestic production. This study analyzed the technical efficiency of
smallholder farmers growing malt barley in Debark Woreda using cross sectional data collected
from 120 sample households in 2010 cropping season. Cobb-Douglas functional form with
maximum likelihood estimation method was used in a single estimation procedure to estimate the
technical efficiency. The result shows mean efficiency of 0.805 and thus the existence of about
19% technical inefficiency in the production of malt barley. The significant result of the, γ
(gamma) ratio in the analysis also indicates the importance of studying technical efficiency in the
Debark Woreda malt barley production system. The implication of the result is that efficiency
improvement efforts could lead to up to 19% productivity gain with the same level of resource
and technology use. The results also revealed that malt barley area; horsepower in plowing, value
of credit inputs and number of plowing are the determinants of the production level.
Furthermore, the sum of these coefficients is greater than one (i.e. 1.16) showing some increasing
returns to scale in malt barley production. The MLE result has also indicated determinants of
efficiency/inefficiency. The significant negative coefficients of age, education, malt barley
experience, soil fertility, and livestock holding implied that efficiency improves with increased use
of these inputs. On the other hand, family size, age square and plot distance appeared with
positive coefficients, denoting the increment in these factors lead to diminishing technical
efficiency. In conclusion, two important policy implications can be drawn from the study: The
significant determinant variables identified, constitute instruments that can be manipulated to
improve technical efficiency of smallholder malt barley producers. Besides, malt barley farmers
can also take the advantage of scale economies; linked to more than proportional increase in
output to a proportional increase of inputs, in addition to pure technical efficiency improvement
efforts in promoting the started malt barley production in the region.
Keywords: Technical Efficiency; Malt Barley; Cobb-Douglas
161
161. Analysis of Improved Box Hive Technology Adoption by Smallholder
Farmers: The Case of Ahferom Woreda, Central Zone of Tigray Region,
Ethiopia
Belets Gebremichael and Berhanu Gebremedhin
Year: 2012
Abstract: Apiculture is a promising off-farm enterprise, which directly and indirectly contributes
to smallholder farmers‟ income and nation‟s economy; however, it is very traditional. Hence, the
current government has increased its attention to develop the sub-sector as one of its strategies
for poverty reduction. Moreover, NGOs interventions assist the poor smallholder farmers
through the introduction and promotion of improved box hive. This study was initiated to
analyze apiculture promoting services, smallholder beekeepers‟ perceptions regarding the
constraints and benefits of using improved box hive compared to traditional beehive, factors
affecting adoption of improved box hive, and its profitability compared to traditional beehive
among smallholder beekeepers in Ahferom Woreda of Tigray region, Ethiopia. Both primary and
secondary data sources and qualitative and quantitative data types were utilized. Primary data
were collected by interviewing 130 randomly selected smallholder beekeepers during March to
April 2011. Descriptive statistics, econometric models and partial budget technique were
employed to analyze the data. Beekeepers perceived that improved box hive is superior in its
honey quantity and quality, swarm control, durability, avoidance of bee mortality and ease of
inspection and management of hive, however, it is constrained by high price and unavailability of
improved inputs, skilled manpower requirement and low honey market demand compared to
traditional beehive. Probit model results of farmers‟ access to extension service revealed that
number of productive members, beekeeping experience, age, farm size, distance to FTC, number
of bee colonies and ownership of Radio, TV and/or mobile phone were significant factors.
Likewise, other off/non-farm activity, distance to FTC and number of bee colonies significantly
affected farmers‟ access to credit service. Similarly, sex, other off/non-farm activity, distance to
FTC and Woreda town, beekeeping experience, ownership of Radio, TV and/or mobile phone
were significantly associated with farmers‟ access to input supply service. The first hurdle result
of adoption decision of improved box hive indicated that other off/non-farm activity,
beekeeping experience, distance to market and frequency of extension contact were significant
factors. Moreover, the second hurdle result of intensity of improved box hive adoption revealed
that other off/non-farm activity, frequency of extension contact, credit access, livestock holding,
age, distance to all weather roads were found to be significant factors. Partial budget and
sensitivity analyses implied that adoption of improved box hive technology makes smallholder
beekeepers more profitable than traditional beehive and profitable up to 20 percent variability in
inputs cost and output prices. Therefore, these significant factors in apiculture promoting
services and adoption of improved box hive should be considered by policy-makers and planners
of governmental and NGOs in setting their policies and strategies of institutional services
development and honey production improvement interventions in Ahferom Woreda.
Keywords: Box Hive; Adoption; Partial Budgeting; Probit Model
162
162. Gender Differentials in Drought Coping Strategies: The Case of
Smallholder Farmers in Menz Gera Midir Woreda of Amhara National
Regional State, Ethiopia
Mulu Zegeye and Teklu Tesfaye
Year: 2012
Abstract: The study examined the gender differential in drought coping strategies of smallholder
farmers in Menze Gera Midir Woreda of North Shoa Zone, Amhara National Regional State.
Data were collected using key informants interview, focus group discussion and individual
interview. Both descriptive and econometric data analysis techniques were applied. The study
revealed that farmers employed diverse drought coping strategies, including participated in daily
labor, rearing dairy cows, off-farm activities, spinning of sheep wool and planting early maturing
crops and that coping strategies employed by FHHs are highly diverse than MHHs. The majority
of FHHs were engaged in a combination of daily labor, rearing dairy cows, off-farm activity and
planting early maturing crops whereas the majority of MHHs were found to have been engaged
in rearing dairy cow and off-farm activity. Besides, coping strategies held by FHHs are directly
related with their responsibilities in managing their family than activities done around their village
and farmland. The multiple logistic regression model result for determinants of choices of
drought coping strategies revealed that, explanatory variables explained the choice of any given
drought coping strategy. The choice of participated in daily labor as drought coping strategy was
determined by age, education, annual expense and proximity to town whereas the choice of
rearing dairy cow as a drought coping strategy was determined by family size and contact with
development agent. In designing strategies and interventions aimed at enhancing the coping
strategies of farm households, it is therefore imperative that gender differences are taken in to
consideration. It is also of paramount importance that the time tested experience of farmers be
taken in to account while designing drought coping strategies.
Keywords: Gender Differentials; Drought Coping Strategies; Logistic Regression
163
163. Impact of Improved Barley Scale Up/Out Program on Household
Food Security in Meket District, North Eastern Ethiopia
Solomon Tiruneh, Hailu Beyene, Zewdie Bishaw and Yigezu Atnafe
Year: 2012
Abstract: The scaling out program for improved barley varieties, implemented by Sirinka
Agricultural Research Center, was program aimed to widen the dissemination and impact of
technologies through designed farmer-to-farmer extension approach. Lessons learned from the
program are expected to provide good insights for developing effective strategies for further
interventions. This study assessed factors influencing the adoption of improved barley
technologies and the impact of the program on household food security in the study area. Crosssectional survey data were collected from 176 adopter and non-adopter households in Meket
woreda. The propensity score-matching method was employed to analyze the impact of
improved barley scaling out program where the necessary check for covariate balancing with a
standardized bias was conducted. Sensitivity analysis of the estimated participation effect to
unobserved selection bias was also conducted using the Rosenbaum bounds procedure. Results
of the study revealed that the adoption rate reached up to 79.41% indicating that the program has
enhanced the adoption of the technologies. Relative advantage of improved barley varieties and
fertility status of the farmland are positively and significantly influenced adoption of improved
barley varieties. Descriptive statistics results indicated significant difference in food security status
among participation categories i.e. 17.92% and 31.43% for non-participants and participants,
respectively. Propensity score matching model results was also verifies the descriptive result. ATT
for participants was higher than the poverty line. Therefore, scaling out program via farmer-tofarmer extension approach has been effective in filling food gap and improving food security
condition. The approach should be replicated to other technologies. However, due emphasis
given especially to extension services to improve the perception on technology relative advantage
and improving fertility status would be good strategic directions for future interventions.
Keywords: Propensity Score Matching; Scaling out Program; Technology Adoption;
Consumption Expenditure; Food Security
164
164. Determinants of Loan Repayment Performance of Smallholder
Farmers: The Case of Kalu District, South Wollo Zone, Amhara National
Regional State
Zelalem Gebeyehu, Jema Haji and Hassen Beshir
Year: 2012
Abstract: Smallholder farmers require improved agricultural technologies, knowledge and inputs
such as fertilizer, improved seeds, pesticides and others that help to increase production and
productivity thereby transforming their farm structure and capacity. Large investment cannot be
made by the farmers out of their own funds because of their low level of incomes. Even though
there are attempts to solve these rural financial difficulties by the government through extending
rural financial institutions, because of social, economic and institutional factors, a number of
farmers turned out to be defaulters. When such difficulty arises, the lending institution faces a
problem. This study focused on the analysis of determinants of loan repayment performance of
smallholder farmers in Kalu district, Amhara National Regional State. In this study, primary data
were collect from 130 randomly selected borrowers using structured questionnaire. In addition,
secondary data were collected from different organizations and pertinent publications. A twolimit Tobit regression model was employed to identify factors influencing loan repayment and
intensity of loan recovery among smallholder farmers. A total of 12 explanatory variables were
included in the empirical model and out of these, five variables were found to be statistically
significant. These are total land holding size of the family (hectare), total livestock holding (TLU),
number of years of experience in agricultural extension services, purpose of borrowing and
source of credit. These variables have a significant and increasing effect on loan repayment
performance. Variance inflation factor were calculated to detect multicollinearity and association
among all explanatory variables. Therefore, consideration of factors affecting loan repayment
performance is vital because it provides information that would enable to undertake effective
measures with the aim of improving loan repayment performance and hence helped lenders such
as microfinance institution, NGOs and policy makers to have knowledge as to where and how to
channel efforts to minimize loan defaults.
Keywords: Kalu, Loan Repayment; Defaulters; Non-Defaulters; Two-Limit Tobit
165
165. Impact of Domestic Biogas Technology on Rural Household S’
Income and Labor Time: The Case of Arbaminch Zuria and Meskan
Districts in SNNPR, Ethiopia
Workalemahu Tasew and Bezabih Emana
Year: 2012
Abstract: This study evaluated the impact of biogas technology on household income and labor
time saving using cross-sectional data obtained from Arbaminch Zuria and Meskan districts of
Southern Nation Nationalities Peoples (SNNP) Regional State. The primary data used for this
study were collected from 140 households who were biogas technology users and non-users
using semi structured questionnaire to evaluate the impact of using biogas on income of users
and assess the extent to which the technology was successful in reducing the work load of the
household with regard to firewood collection, cooking and cleaning utensils. By applying a
propensity score matching technique, the study found that the program has increased the net
income of user households by 56% (i.e. 2,736 birr) per annum and reduced labor time needed for
cooking and fuel wood collection by 68% per day and 47% per week, respectively, compared to
non-user households. The estimated results revealed that households who owned larger number
of livestock, larger farm size, live nearer to water sources and had small family size were more
likely to benefit from the use of biogas, ceteris paribus. Some of the policy implications
forwarded include giving more emphasis and support to livestock raring, water supply, farming;
searching for ways: like connecting biogas to toilet and constructing biogas plants for two or
three household that benefit poor farmers with less livestock and land holding; putting more
effort to promote and disseminate the technology.
Keywords: Biogas Technology; Household Income; Labor Time Saving; Impact;
Propensity Score Matching.
166
166. Climate Change and Variability: Implications for Household Food
Security in Agropastoral Areas of Jijiga District, Eastern Ethiopia
Yared Lemma, Fekadu Beyene and Bekele Hundie,
Year: 2012
Abstract: Ethiopia is one of the most vulnerable countries of the world to the impacts of climate
change and variability. The impact is even stronger in pastoral areas of the country. However,
studies on the actual climate change dynamics and its effect on food security at local and
household levels is limited. The present study took Jijiga district as a case and analyzed trends in
local climate; status of household food security; the relative significance of climate related causes
of food insecurity; and household level determinants of food security. The study used rainfall and
temperature data from the period 1952 to 2010 and primary data gathered from 140 sample
households and focus groups. Using Mann-Kendall trend test, the study revealed existence of
statistically significant declining trend in rainfall in the rainy season and increasing trend in
temperature at annual and seasonal time scale. Moreover, respondents confirmed the presence of
climate change, with increasing temperature, decreasing rainfall and increasing seasonality of
rainfall in the past two decades. The Rash model estimation result based on the Food Security
Core Module showed high prevalence of food insecurity in the district with 81 percent of food
insecure households consisting of 27 percent food insecure without hunger, 29 percent food
insecure with moderate hunger, and 25 percent food insecure with severe hunger. Respondents
ranked climate factors as their top five most important causes of food insecurity. These are
drought, expansion of unwanted plant species (parthinium), low annual rainfall, high temperature,
and water shortage. The econometric model estimation result revealed the important factors
determining household food security. These are household perception of climate change, use of
soil and water conservation practice, use of livestock feed management techniques, loss of
livestock due to drought and/or disease, literacy level of household head, and dependency ratio.
Among other things, the study suggested improving climate change awareness, strengthening the
existing adaptation measures that have positive food security role and promoting the livestock
sector could help reduce the prevalence of high food insecurity and increase local resilience to
climate change.
Keywords: Climate Change; Food Security; Rash model; Mann-Kendall
167
167. Determinants of Adoption of Improved Wheat Varieties by
Smallholder Farmers: The Case of Angacha Woreda, Kembata Tembaro
Zone of Southern National Nationality People Region
Abera Abebe Dolaso and Lemma Zemedu
Year: 2013
Abstract: Adoption of improved technologies is one of the most promising ways to reduce food
insecurity in Ethiopia. However, adoptions of these technologies are constrained by various
factors. This study examined the main determinants of farmer adoption decision of improved
wheat varieties and its intensity using 120 sample households (106 male and 14 female) selected
from 6 kebeles in Angacha Woreda, Kembata Tembaro zone of SNNPR. In this area, wheat is an
important crop, which serves as a source of both food and cash. Qualitative data were collected
using group discussion and field observation. The results of descriptive analysis indicated that
among 12 identified explanatory variables 7 of them significantly determined adoption of
improved wheat varieties; such as farming experience, household head age, cultivated land size,
number of oxen and livestock, input delivery institutions (market distance) and extension contact.
The results of the econometric model indicated that the relative influence of different variables
on probability and intensity of adoption of improved wheat varieties. Cultivated land size of the
household, extension contact, farming experience of the household, were affected adoption
positively: whereas market distance and age of the household head, negatively influenced
adoption and intensity of adoption of improved wheat varieties. Farmers‟ evaluation and
selection criteria of improved wheat varieties in the study area in order of importance were high
yielding, market demand, time of maturity, grain color, grain size, disease resistance and
storability. The overall finding of the study underlined the high importance of institutional
support in the areas of extension contact service to insist farmer-to-farmer knowledge sharing
and market to enhance adoption of improved wheat varieties. There is also need to consider road
construction; new weather roads and improving the existing one which connect kebele to kebele.
Keywords: Adoption; Wheat; Improved Varieties; Intensity
168
168. Adoption of Improved Sorghum Varieties and Farmers’ Varietal Trait
Preference in Kobo District, North Wolo Zone, Ethiopia
Ermias Tesfaye Teferi, Adam Bekele and Alastair Orr
Year: 2013
Abstract: Agricultural productivity should be improved if food security status of the majority of
rural farmers who depend on farming is to be enhanced. Wider diffusion of improved crop
varieties such as sorghum would, therefore, play vital role in reversing the present situation of
chronic food insecurity in many parts of Ethiopia. Various research and development endeavors,
such as HOPE project, have been working in sorghum technology development and
dissemination of improved sorghum varieties in the study area. The main objective of this study
was therefore, to identify factors that determine adoption and intensity of use of improved
sorghum varieties and farmers‟ choice of most preferred sorghum varietal traits. The study used a
primary data collected from 150 randomly selected sorghum grower farmers from five randomly
selected “Kebelles” (or villages) in Kobo District. Moreover, regular statistical reports from
different sources like the Ministry of Agriculture and CSA were reviewed. Descriptive statistics,
Tobit and multinomial logit (MNL) were used to analyze the data. Results of descriptive analysis
showed that adopters of improved sorghum varieties as compared to non-adopters were
characterized by better agricultural extension experience and educational status, higher livestock
assets ownership, less total cultivable farm but higher irrigable farm size, and most of them are
located nearer to FTCs. In the Tobit model, nine variables were found to significantly determine
adoption and intensity of use of improved sorghum varieties either positively or negatively. They
are active labor ratio (-), tropical livestock unit (+), farm size (-), farmers‟ perception of yielding
capacity and taste preference for improved sorghum varieties (+), irrigated farm size (+), striga
infested farm size (+), proportion of sorghum farm from the total cultivated farm (-) and distance
from farmers‟ training centre to home (-). Thus, there is a need to target smallholder farmers with
low labour force in sorghum technology outreach programs. Targeting should also take Striga
threat, accessibility of technology information and irrigation facilities into consideration to fasten
the acceptance and dissemination of improved sorghum varieties. High yielder sorghum varieties
with good “Injera” and “Tella” making qualities should be given special priority in sorghum variety
scaling out programs. The MNL model also suggested that adoption status of improved sorghum
varieties, level of vulnerability to potential income shocks, age of the household head, experience
of the household head in using extension service, perception on soil fertility status, labor
constraint, frequency of important sorghum pests occurrence, and location of the household
residence were important variables that significantly explained choice of sorghum attributes in
general. Thus, it will not be wise and acceptable to perform sorghum variety improvement from
only single attribute perspective such as yield performance and unanimously disseminate across
all farmers. Sorghum variety development should entail a wider set of technology users‟
characteristics, priorities and production constraints.
Keywords: Varieties; Attributes; Adoption; Multinomial Logit; Tobit
169
169. Adaptation Strategies of the Communities Surrounding Haramaya
Lake towards Its Disappearance, East Hararghe Zone Ethiopia
Siraj Jewaro, Jema Haji and Lemma Zemedu
Year: 2013
Abstract: This study was designed to assess the adaptation strategies mostly used by the farm
households and factors affecting the choices of their adaptation strategies against the impacts of
water shortage due to the dried Lake employing both descriptive statistics and econometric
model. Data was collected from 120 farm households who were randomly selected from four
kebeles surrounding the dried Lake during 2012 production season. The results show that 30.8%
of the sample farm households didn‟t use any adaptation strategies due to lack of knowledge,
information, training, money and shortage of labor. The remaining 23.3%, 19.2%, 15% and
11.7% of the sample households use ground water, ground water and rain water harvesting,
ground water, rain water harvesting and importing water from other places, and diversifying from
farm to non-farm income sources as the main strategies against the impact of the dried Lake
respectively. The MNL model was fitted to twelve explanatory variables of which eleven were
found to be statistically significant. Results indicate that variables like; age of household head, sex
of household, education, distance of water source, farmer group membership, extension contact,
membership in iddir, participation on natural resource conservation and different field day
trainings, credit access, average size holding and family size affects households adaptation
strategies significantly. However, Livestock ownership was found to be insignificant with
adaptation strategies of the farm households. This calls for differential intervention to increase
the adaptation strategies of farm households in the study area in order to reduce the impacts of
water shortage due to the dried Lake on their livelihood. Therefore, due attention has to be given
to expansion of extension programs, improving farmers‟ access to credit use and increasing
household capacity through various training to cope to the shocks and impacts of water shortage.
Thus, designing and implementing development interventions with respect to the above potential
variables are crucial to enhance adaptation strategies of the farm households
Keywords: Adaptation Strategies; Haramaya Lake; Multinomial Logit Model
170
170. Competitiveness and Comparative Advantage of Haricot Bean and
Onion Production: A Study in Dugda District of East Showa, Ethiopia
Zemed Deggu Mengesha and Dawit Alemu
Year: 2013
Abstract: The study was conducted with the main objectives of examining the profitability,
comparative advantage and extent of government intervention on haricot bean and onion
production in Dugda district of Oromia National Regional State. The study used a cross-sectional
data collected from a total of 122 sample rural households and ten traders. Moreover, secondary
data were also collected. The Policy Analysis Matrix (PAM) methodology was employed in which
basic policy indicators (the nominal and effective protection coefficients, private cost ratio and
domestic resource cost ratio] were derived. The results of the study revealed that the financial and
economic profits for both products were positive indicating that both haricot bean and onion
production in the study area were profitable for the producers in particular and for the country at
large. The divergence between private and social values, which showed the net effect of policy
distortion and market failure, was negative indicating that households of both products were
implicitly taxed on their output while subsidized on the use of tradable inputs. On the other
hand, households producing haricot bean and onion were implicitly subsidized and taxed on the
use of domestic resources, respectively. The effective protection coefficient (EPC), taking into
account both the output and tradable input markets together, revealed a net disincentive for both
products as their EPCs were 0.8489 and 0.7426, respectively. The domestic resource cost (DRC)
ratio values, which were 0.4066 and 0.4363, for haricot bean and onion production, respectively,
confirmed the comparative advantage of producing both crops in the study area given the present
inputs used and outputs produced with their associated prices, production technologies, existing
policies and market failures. Furthermore, sensitivity analysis with various scenarios was carried
out in order to assess the effect of different strategies on the production of haricot bean and
onion. In this study, in order to sustain and further improve the competitive and comparative
advantage of producing both haricot bean and onion products, possible policy implications were
made.
Keywords: Comparative Advantage; DRC, Economic; EPC; Private; PAM; Sensitivity
171
171. Impact of Small-Scale Irrigation on Farm Households’ Technical
Efficiency: The Case of Chulul Irrigation Schemes, Girawa District, East
Hararghe Zone of Oromia National Regional State, Ethiopia
Beyan Ahmed Yuya, Endrias Geta and Jema Haji
Year: 2013
Abstract: Irrigation is one means by which agricultural production can be increased to meet the
growing food demands in the world. This study evaluated the impact of small-scale irrigation on
farm household technical efficiency in production. The specific objectives of this study are to
analyze factors influencing participation in small-scale irrigation and its impact on farm
households‟ technical efficiency in Girawa district, Eastern Hararghe zone of Oromia region.
Both primary and secondary data were collected for the study. Primary data were collected from
200 sample respondents drawn from both participant and non-participant households.
Preliminary statistics and econometric models were employed for data analysis. The results of
Stochastic frontier model applied to assess the determinants of technical efficiency revealed that
education, cultivated area, livestock holding, access to irrigation, training and social status
significantly determined technical efficiency. The logistic regression estimation of factors
affecting participation and technical efficiency revealed that age of household head, non-farm
income, livestock size, size of cultivated land, distance between plot and irrigation scheme,
frequency of extension contact, means of transportation and participation of household heads in
social organization significantly affected the participation decision of households in irrigation
farming and technical efficiency. Propensity score matching method was applied to analyze the
impact of small-scale irrigation on the technical efficiency. In matching processes, kernel
matching with band width of 0.5 was found to be the best matching algorism. This method was
also checked for covariate balancing with a standardized bias, t-test, and joint significance level
tests. The results revealed that households that participate in irrigation practice have got an
improvement of 8.85 percent in technical efficiency than those households that were not
participated in irrigation practice. Results showed that participation in irrigation has a significant,
positive and robust impact on the outcome variables. The sensitivity analysis also showed that the
impact estimates are insensitive to unobserved selection bias. All results obtained from different
models revealed the positive impact of irrigation on farm household technical efficiency.
Therefore, policy makers should give due emphasis to the aforementioned variables to increase
participation in irrigation farming and improve the livelihood of rural households.
Keywords: Irrigation; Technical Efficiency; Propensity Score Matching; Stochastic
Frontier Model.
172
172. Wheat Production Efficiency on Small Farms: The Case of Gedeb
Hasasa District, West Arsi Zone, Oromia Regional State of Ethiopia
Dawit Moges Mamo and Endrias Geta
Year: 2013
Abstract: This study used a cross sectional data obtained from a field survey using structured
questionnaire from a random sample of 138 smallholder wheat producers in Gedeb Hasasa
district, west Arsi zone of Oromia Regional State. The objectives of the study were to measure
technical efficiency in resource use and identify determinant factors that cause efficiency
variation. A Cobb-Douglas Stochastic frontier production analysis approach with the inefficiency
effect model was used to simultaneously estimate resource use efficiency and identify
determinants of efficiency variations among wheat farmers. The maximum likelihood parameter
estimates showed that wheat output was positively and significantly influenced by fertilizer, area,
human labor, and oxen power. Resource use efficiency analysis was estimated by the partial
elasticity coefficients of the input variables entered into the production function based on wheat
output responsiveness relative to a unit increase in each input. The maximum likelihood
parameter estimate result showed that wheat output in the study area was positively and
significantly influenced by fertilizer, area, human labor, and oxen power. The results also revealed
that fertilizer has the highest elasticity, followed by area, oxen power and human labor,
respectively. The technical Returns to Scale obtained from the summation of estimated
production function parameter coefficients showed that resource use efficiency in the study area
is subject to decreasing returns to scale of about 0.89. Based on the magnitude of their partial
elasticity coefficients, all the inputs were used inefficiently. The mean technical efficiency level of
86.6%, suggests that wheat production in the study area could be increased by 13.4% through
better use of existing resources, given the current level of technology. The inefficiency variables
off-farm income, family size, size of livestock owned and farmers‟ membership in cooperative
organizations were found to determine efficiency significantly. Accordingly, off-farm income, size
of livestock owned and farmers‟ membership in cooperative organizations were found to
enhance resource use efficiency. However, family size was found to reduce farmers‟ level of
efficiency. As a recommendation, emphasis should be given to improve the efficiency level of
those less efficient farmers in the in study area, through expansion and promotion of off-farm
activities, strengthening of farmer related associations (agricultural cooperative organization) and
through a better integrated livestock and crop production system.
Keywords: Stochastic Frontier Analysis; Resource Use Efficiency; Smallholders; Ethiopia
173
173. Economic Efficiency of Sesame Production in Selamago District of
South Omo Zone, Southern Ethiopia
Ermiyas Mekonnen, Endrias Geta and Belaineh Legesse
Year: 2013
Abstract: The aim of the study was to measure the levels of technical, allocative and economic
efficiencies of sesame producers and identify factors affecting them in Selamago district of south
Omo zone, Southern Ethiopia. The study was based on the cross-sectional data collected in
2011/12 production season from 120 randomly selected farm households. Stochastic production
frontier model was used to estimate technical, allocative and economic efficiency levels, whereas
Tobit model was used to identify factors affecting efficiency levels. The results indicated that
there was substantial amount of inefficiency in sesame production in the study area. Accordingly,
the mean technical, allocative and economic efficiencies of sample households were 67.1%,
67.25% and 45.14%, respectively. Labor and seed were the variables that positively affected the
production of sesame. Results of the Tobit model revealed that soil fertility, non-farm income
and credit access positively and significantly affected TE. Soil fertility had positive and significant
effect on AE. On the other hand experience in sesame production, distance of sesame farm from
residence, non-farm income and extension contact affected AE negatively and significantly. Soil
fertility, non-farm income and credit access had positive and significant impact on EE. However,
extension contact affected EE negatively and significantly. These indicate that there is a room to
increase the efficiency in sesame production of the study area. Therefore, government authorities
and other concerned bodies should take into consideration the above mentioned socioeconomic
and institutional factors to improve productivity of sesame in the study area.
Keywords: Economic Efficiency; Sesame; Production; Tobit Model
174
174. Economic Efficiency of Smallholder Farmers in Maize Production:
The Case of Arsi Negelle District, Oromia National Regional State,
Ethiopia
Musa Hasen Ahmed, Lemma Zemedu and Endrias Geta
Year: 2013
Abstract: Though agriculture remains to be the most important sector of the Ethiopian
economy, its performance has been disappointing and food production has been lagging behind
population growth. This gap between demand for and supply of food can be reduced by
improving productivity either through introduction of modern technologies or improving the
efficiency of production. However, as the potential to increase production by bringing more
resources into use became more and more limited, the efficiency with which the farmers use
available resources has received the utmost attention. As maize is a significant contributor to the
Ethiopian economy, increasing productivity and efficiency of maize production could be taken as
an important step in attaining food security. Therefore, this study was aimed at analyzing the
economic efficiency of maize production of smallholder farmers in Arsi Negelle district using
cross sectional data collected from randomly selected 138 sample households during 2011/12
production season. Cobb-Douglas production function was fitted using stochastic production
frontier approach to estimate technical, allocative and economic efficiency levels, whereas tobit
model was used to identify factors affecting efficiency levels of the sample farmers. The
estimated results showed that the mean technical, allocative and economic efficiencies were
84.87%, 37.47% and 31.62% respectively which indicates the significant inefficiency in maize
production in the study area. The discrepancy ratio (γ), which measures the relative deviation of
output from the frontier level due to inefficiency, implied that about 79.06% of the variation in
maize production was attributed to technical inefficiency effects. Among factors hypothesized to
determine the level of efficiencies, education was found to significantly determine allocative and
economic efficiencies of farmers positively while frequency of extension contact had positive
relationship with technical efficiency and it was negatively related to both allocative and
economic efficiencies. Credit was also found to significantly influence technical and economic
efficiencies positively and distance to market significantly affects technical efficiency negatively.
The model output also indicated that soil fertility was among significant variables in determining
technical efficiency of farmers in the study area. The result indicated that there is a room to
increase the efficiency of maize producers in the study area. Hence, emphasis should be given to
improve the efficiency level of those less efficient farmers by adopting the practices of relatively
efficient farmers in the area. Beside this, policies and strategies of the government should be
directed towards the above mentioned determinants.
Keywords: Maize; Efficiency; Cobb-Douglas; Stochastic Frontier; Tobit
175
175. Determinants of Technical Efficiency in Maize Production: The Case
of Smallholder Farmers in Dhidhessa District, Illubabor Zone, Ethiopia
Wondimu Tesfaye, Hassen Beshir and S.P.R.Chaurasia
Year: 2013
Abstract: This study was conducted in Dhidhessa district of Illubabor zone during the
production year of 2011 to measure the level of technical efficiency and identify its determinants
in maize crop. A two-stage sampling technique was employed to select 162 maize growing sample
households. Descriptive statistics, inferential statistics and stochastic production functions were
employed to achieve and interpret the results pertaining to objectives of the study. The results of
the study indicated that the minimum, maximum and average yields of the maize production in
the sample households were 10, 63 and 23.6 quintals per hectare, respectively. The Stochastic
Production Frontier (SPF) result revealed that area allocated under maize and chemical fertilizers
appeared to be significantly influencing maize production at 1 percent probability level. The
estimated gamma parameters indicated that 73% of the total variation in maize output was due to
technical inefficiency. The average technical efficiency was 86% while return to scale (RTS) was
0.96 %. Based on the results, it was concluded that there existed scope for increasing maize
output by 14 percent through efficient use of existing resources. Hence if the experience and
knowledge off farm household heads who attained higher technical efficiency were shared among
other farmers in the district, an additional output of 2060 quintals of maize could have been
produced given 7550 hectares of land allocated to maize production during the study period in
the district. Thus, ample scope existed to realize higher maize output with existing resources and
level of production technology. The socio-economic variables that exercised important role for
variations in technical efficiency were age, education, improved seed, training on maize
production and labor availability in the household. Nevertheless, participation in off farm income
earning activities, interaction of off farm income and education, distance to market, and number
of livestock were found to increase inefficiency significantly among farm household. Moreover,
damage caused by wild animals has been raised as a critical maize production constraint by
farmers which call for revision of current wildlife management policy. Hence it becomes
mandatory to maintain their populations below the economic threshold level to safeguard the
livelihood of smallholder farmers in the study area. Therefore, intensive farmers training,
education, experience sharing among farmers and innovative wildlife management accompanied
with more access to fertilizer and improved seed were likely to enhance production efficiency in
the study area.
Keywords: Technical Efficiency; Maize Production; Stochastic Frontier; Dhidhessa
District
176
176. Utilization of Small-Scale Irrigation Scheme and Its Contribution to
Food Security: The Case of Gorogutu Woreda, East Hararghe Zone,
Oromia Regional State
Abdulwafik Kelilo, Adem Kedir and Mengistu Ketema
Year: 2013
Abstract: Understanding determinants of farmer‟s participation in irrigation practice is crucial for
designing appropriate supportive policies to promote the irrigation system of the country.
Therefore, this study was undertaken in Gorogutu Woreda of Oromia Regional State with the
objective of identifying determinants of farmer‟s participation decision and intensity of small
scale irrigation water use. The study was also concerned with assessing the contribution of smallscale irrigation to food security. Primary data were collected from 180 sample households in two
selected Kebeles through random sampling technique based on probability proportional to size.
The two kebeles were selected considering the existence of small scale irrigation schemes,
schemes years of operation, irrigation capacity and their accessibility. Heckman two step
estimation procedure for irrigation participation decision, intensity of irrigation water use and
Logistic regression model for contribution of irrigation to food security were employed. The
result from Heckman first stage estimation procedure showed that age and education level of
household head, access to improved agricultural technology, family labour availability, size of
farm land, dependency ratio, market distance, financial constraint, plot distance from residence,
access for training on irrigation and non/off farm income were found significantly influencing
farmers irrigation participation decision. The result of Heckman second stage estimation
procedure indicated that distance of farm plot from irrigation water source, age of household
head and access to improved agricultural technology were found to significantly affect intensity
of irrigation water use. On the other hand, the result from the logistic regression model indicates
that use of irrigation water, family size, dependency ratio, off/non-farm income, farm income,
and livestock holding were found significantly influencing households food security. The finding
of this study indicated that irrigation has a great contribution to food security and taking the
specific characteristics of farmers into account in planning irrigation projects may help policy
makers to expand irrigation projects for more number of farmers.
Keywords: Irrigation Scheme; Small-Scale; Food Security; Contribution; Heckman Two
Stage Model
177
177. Determinants of Food Insecurity and Coping Strategies of Rural
Households: The Case of Shalla Woreda, West Arsi Zone, Oromia Region,
Ethiopia
Ahmed Kasim Dube, Jema Haji and Lemma Zemedu
Year: 2013
Abstract: Even though the struggle to achieve food security at the household level in the rural
areas of Ethiopia dates back a long before, it has remained a challenging goal until today. The
design and implementation of effective measures to reduce household food insecurity needs an in
depth understanding of its covariates. As a result, this study was conducted with the specific
objectives of estimating the situation, extent and severity of food insecurity, identifying factors
affecting food insecurity situation and the traditional coping mechanisms used by farm
households during food shortage in Shalla woreda of west Arsi zone, Oromia region. In order to
achieve these objectives, data on demographic, socio-economic and institutional characteristics of
the households were collected from 150 randomly selected households in three randomly selected
kebeles of the woreda. Relevant secondary data were also gathered. Data were analyzed using
both descriptive statistics and econometric method. The results from descriptive statistics
showed that of the total surveyed households, 62 percent were food insecure. In addition, results
revealed that there was statistically significant difference between food insecure and food secure
households with regard to different demographic, economic and institutional factors.
Furthermore, the self-reported months of food shortage of the surveyed households was on
average 3.5 months for which they have used different traditional coping strategies. These
include, reduced adults meals for children to eat, reduced number of meals, reduced meal size,
receiving relief food and child labor supply as the most commonly practiced coping strategies.
The food insecurity gap and severity of the sampled households computed using FGT indices
were 8.5 and 1.4 percents respectively. The results of binary logit model showed that family size
in AE, age and dependency ratio had significant and positive effect on food insecurity while sex,
cultivated land, livestock ownership in TLU, oxen ownership, fertilizer use and income from
safety net had a significant and negative effect on food insecurity. Finally based on the findings of
the study, important recommendations were made which may be used to tackle the food
insecurity problems of the households in the study area if implemented appropriately.
Keywords: Food Insecurity; Logit; FGT Indexes; Shalla
178
178. Dimensions and Determinants of Food Security among Female
Headed Households: The Case of Dire Dawa City Administration,
Ethiopia
Samson Girma W/Mariam and Lemma Zemedu
Year: 2013
Abstract: The objective of this study is to measure the status and severity of household food
security, to identify the determinants that led female headed households to food insecurity and to
investigate how female headed households cope with food shortages in Dire Dawa
Administrative city. The primary data for this work was collected by undertaking a survey on 125
female headed households in Dire Dawa city. Descriptive statistics and binary logit model were
employed for analyses to meet the above stated objectives. In this study, three-stage sampling
procedure and PPS was employed to select 5 kebeles and 125 sample female headed households,
respectively in the study area. The survey result revealed that 44% of the sample households were
food secured. A total of twelve explanatory variables consisting 7 continuous and 5 dummy, were
included in the empirical model. Out of these, six were found to be statistically significant. These
were non-food expenditure, employment status, dependency ratio, health status, credit and
education. FGT index output for the incidence of food insecurity, food insecurity gap and
severity of food insecurity were found to be 52 percent, 12 percent and 4.4 percent, respectively.
Coping strategies identified in the study area included switching to less preferred and less
expensive food, Borrow money to buy food and food items in time of food crises, purchasing
food on credit from nearby shops and from consumers‟ associations and reduction in number of
meals in a single day. It is important to encourage female-headed households to engage in income
generating activities to enhance their purchasing power. Besides, improving their productivity
through the promotion of adult education, access to credit, creation of employment opportunity
and improving their health status are thus vital to ensure household food security.
Keywords: Food Security; Female Headed Households; Binary Logit; FGT Index
179
179. Factors Affecting Household Food Security: The Case of AbichuGnea District, North Shewa Zone, Oromia National Regional State
Eshetu Demissie, Lemma Zemedu and Mengistu Ketema
Year: 2013
Abstract: Despite considerable efforts of government and development partners, still now food
security is a big challenge to the country. So, clearly knowing of the factors that affect the
households‟ food security at grass root level is required for the government, development
partner, local NGOs, and research organization for shaping the direction of action for food
security. Therefore, the major concern of this study is to empirically examine the major factors
affecting households‟ food security in the study area. This study was undertaken in Abichu-Gnea
district of North Shewa Zone, Oromia National Regional State. A two stage sampling procedure
was used to select 6 kebeles and 120 sample respondents from a total of 19 rural kebeles in the
district. Both primary and secondary data were gathered and used for the study. These data were
analyzed using both descriptive statistics and econometric method to describe the household
food security status. Furthermore, binary logistic model was used to identify the determinants of
food security and extents to which the determinants affect the household food security status.
The survey result revealed that of the total sampled households, about 34.2% were food secured
in the district. Results from the logit model showed that dependency ratio and distance from the
nearest market where negatively and significantly related to the probability of farmers‟ to be food
secured. On the other hand, age of the household head, educational status of the household head,
livestock holding in TLU and frequency of extension contact were found to be positively and
significantly related to the food security status of the household in the study area. Among the
major policy recommendations are the needs to construct new weather roads and to improve the
existing ones which connect kebele to kebele, to construct DA‟s residential and FTC in each
kebele where these are not yet constructed. Beyond the current efforts made, due attention
should have to be given to adult education, parallel to youth education. Finally, the government
has to work towards restricting the number of children per household proportional to income
level.
Keywords: Food Security; Kcal; Abichu-Gnea; Binary Logit Model
180
180. Impact of Microfinance on the Livelihood of Stallholders Farmers:
The Case of Oromia Credit and Saving Share Company, Grawa Branch,
East Hararghe Zone, Oromia National Regional State, Ethiopia
Asfaw Tilahun and Jema Haji
Year: 2013
Abstract: The economy of Ethiopia is predominantly agriculture. The performance of the
economy depends to a greater extent on the performance of the agricultural sector. One of the
economic policies of the country is introduction of MFIs to provide credit services to the poor
people in the rural economy The study evaluates the impact of micro-finance on household
expenditure on food, health, education, asset building and income. Moreover, the study has
examined factors affecting access to credit. For quantitative analysis both program participant
and non-participant respondents were drawn and cross-sectional data were collected from 160
users and non-users households in Giraw woreda. Propensity score matching method was
employed to analyze the impact of the project interventions quantitatively. This method was
checked for covariate balancing with a standardized bias, t-ratio, and joint significance level tests.
Furthermore, sensitivity analysis of the estimated participation effect to unobserved selection bias
was checked using the Rosenbaum bounds procedure. Findings revealed that participation in
micro-finance interventions has a significant, positive and robust impact on the outcome
variables. A binary logit model was employed to examine factors influencing credit use. In this
regard, a total of eleven explanatory variables were included in the empirical model of which age,
family size, education, land size, loan size, distance lending institution and livestock holding were
significant. The sensitivity analysis also shows that the impact result estimates are insensitive to
unobserved selection bias. The thesis finally discusses these results in detail and draws some
recommendations.
Keywords: Propensity Score Matching; Grawa; Microfinance-Finance Intervention;
Impact
181
181. Impact of Land Fragmentation on Small Farm Households’ Income:
The Case of Boloso Sore District, Wolayita Zone, Southern Nations
Nationalities and People’s Regional State, Ethiopia
Amanuel Anjulo, Jema Haji and Lemma Zemedu
Year: 2013
Abstract: Of Ethiopia‟s total land area of 123 million hectares, 47 million hectares, or 38% of the
total, are arable land, while the remaining 77 million hectares or 62%, are classified as marginal
and non-arable land. The main objective of this study was to identify factors affecting land
fragmentation and measure its impact on farm households‟ income in the Boloso Sore district,
Wolayita Zone, SNNPR. Both primary and secondary data were employed for this study. The
primary data were collected using semi-structured questionnaire from 160 randomly selected
sample households of Boloso Sore district. Descriptive statistics and an econometric model called
Propensity Score Matching (PSM) were used to analyze the data. Descriptive statistics results
showed that of the sampled households, 15% owned fragmented lands while 85% owned nonfragmented lands. Moreover, results show that there were significant mean and proportion
differences among fragmented and non-fragmented land households in terms of own cultivated
land, rented in land, land certificate, education, extension and migration. The logit estimation
results showed that the probability of involvement in land fragmentation was positively and
significantly affected by land certificate, rented in land, access to extension service and migration
whereas own cultivated land affected it negatively. The PSM estimation results showed that
involvement in land fragmentation brought about negative and significant impact on net farm
income and net crop income and a significant positive impact on net non-farm income. It was
explored that fragmented land households experienced a significantly higher non-farm income as
compared to non-fragmented land households. This implies that fragmented land households are
unable to support their family with income from crop production and livestock production and
look for other sources of income for their livelihood. Therefore, policy makers might be able to
facilitate non-farm activities in the rural areas and also infrastructures such as road, electricity,
telecommunication and others must be able to be developed. Intervention strategies are necessary
and needs to be focused on improving land use policy so that farmers can be able to use the
resource (land) in efficient way. Policy makers can facilitate fragmented land to be exchanged by
farmers willingly and by providing clear system of land rental market are crucial to minimize
income difference between fragmented land and non-fragmented land households.
Keywords: Land Fragmentation; Impact; PSM; Boloso Sore
182
182. Impact of Fairtrade Certification on Smallholder Coffee Producers’
Income: The Case of Gimbo District
Tium Gebrehiwet, Lemma Zemedu and Chala Erko
Year: 2013
Abstract: Increased awareness among coffee consumers of the impact of their consumption
habits on the people and environment in coffee producing countries has resulted in
implementation of certification programs in the coffee sector as an assurance of good practices in
production and marketing of coffee. This study examined the impact of fair trade certification on
smallholder coffee producers‟ income in Gimbo district. Specifically, the study assessed the
impact of certification on households‟ annual income, asset holding and identified determinants
of participation in fair trade at household level. Descriptive statistics and econometric model
were used for analyzing the data. For quantitative analysis both fair trade participant and nonparticipant respondents were drawn and cross-sectional data were collected from a total of 200
sample households. Propensity score matching method was used to analyze the impact of fair
trade certification quantitatively. The result indicated that participation in the program was
determined by a combination of factors. Logistic regression model estimation revealed that fair
trade participation was significantly influenced by age of household head, education of household
head, extension visit frequency, training, distance to reach farthest plot and market information.
Overall, the study found that the program has increased participating households‟ annual coffee
income by 17% (i.e., 4618 birr), total annual cash income by 15% (4229 birr) and asset owned of
farm equipment by 47% (725 birr) compared to that of non-participating households. As
observed from the results of the study participating in fair trade certification has brought a
positive impact on the farm income and asset holdings of smallholder coffee producers. The
study recommends that it is highly advisable to further extend fair trade certification to a wider
range in area coverage.
Keywords: Impact; Fairtrade; Certification; Gimbo; Asset; Propensity Score Matching
183
183. Impact of Cassava Production in Ensuring Food Security of Farm
Households: The Case of Amaro Woreda in Southern Nations,
Nationalities and Peoples Regional State of Ethiopia
Zemach Lemecha Legesse and Endrias Geta
Year: 2013
Abstract: This study assessed the extent of cassava production and evaluated its impact on the
household food security in Amaro Woreda, Southern Ethiopia. Both primary and secondary data
were used for the study. Primary data were collected from the sample of 156 respondents drawn
from both cassava producer and non-producer households. Descriptive statistics and
econometric model were employed for data analysis. A multiple linear regression model was
employed to assess the determinants of total production of cassava by farm households. The
study employed the propensity score matching method for evaluating the impact of participation
in cassava production on household total income and food energy intake. The result indicated
that age of household head, family size and educational level of the household head were
important factors influencing the extent of cassava production in the study area. The logistic
regression estimation of propensity score matching revealed that education level, land
fragmentation, distance to the local market, annual expenditure of the households, training
support for cassava production and access to agricultural credit services were the variables that
significantly affected the participation decision of households in cassava production. The result of
impact evaluation model revealed that households that participated in cassava production have
got 466 kilo calorie per adult equivalent per day of food intake and Birr 45,533 income higher
than those households that did not participated in cassava production. The result showed that
cassava production had a significant and positive impact on income and food security and the
impact estimates were found to be insensitive to unobserved selection bias.
Keywords: Cassava, Food Security; Multiple Linear Regression; Propensity Score
Matching; Logistic Regression
184
184. Performance of Poultry Marketing and Determinants of Market
Participation: The Case of Smallholder Poultry Producers in Rural Kebeles
of Dire Dawa Administration, Ethiopia
Tilahun Fekadu, Endrias Geta and Lemma Zemedu
Year: 2013
Abstract: As key components of livestock products, poultry products have long been a pathway
for income generation for the poor. Rapidly growing and changing markets in the developing
world provide not only real opportunities but also significant threats to participation of the poor
in production and marketing of poultry products. Therefore, the general objective of this study
was to analyze poultry marketing system and identify the determinants of poultry market supply
in rural areas of Dire Dawa Administration. The specific objectives were to analyze the structure,
conduct and performance of poultry market, to identify factors determining smallholder farmer‟s
participation in poultry market as well as total sales value from poultry product marketing. A total
of 160 sample of producers and 30 sample traders were interviewed by trained enumerators using
semi structured questionnaire to collect the data required for the study. Heckman two stage
model and descriptive statistics were used for the analysis of the data gathered. According to the
results of the study, the structure of the markets revealed absence of considerable entry and exit
barrier. Market participants in the area experienced almost perfectly competitive market structure.
The main market participants for poultry market were found to be farmer traders, rural
assemblers, urban retailers and urban mini-shops. The result of marketing margin analysis
indicated that the price paid by consumers being fairly distributed among producers and
respective poultry products market actors. Out of the 14 variables entered into the Probit model,
eight were found to have a significant influence on the decision of the smallholder farmers to
participate in poultry marketing. These are sex of the respondent, age of the respondent, level of
education, access to extension service, family size, feed availability, and access breed type. While,
the OLS regression result indicated that, access to market information, access to micro credit
services, access to extension service, size of poultry herd owned and level of education being
significant factors. Generally, the finding of this study indicated that educational status, access to
supplementary feed, access to improved poultry breed, access to extension service and access to
market information being factors influencing poultry production for marketing. Therefore, all
rural development actors need to focus on the ways of intervention mechanism that take into
account the determinants of farmers‟ participation on poultry marketing and value of total sales
to improve the skill of producing and market participation for better return.
Keywords: Poultry, Smallholder Farmer; Market Participation; Traders; Marketing
Margin
185
185. Sheno Butter Market Chains Analysis: The Case of Kimbibit District
in North Showa Zone of Oromia National Regional State, Ethiopia
Dirriba Idahe Gemeda, Lemma Zemedu and Endrias Geta
Year: 2013
Abstract: This study assessed the determinants of participation decision, level of participation
and the structure, conduct and performance of Sheno butter market as well as major production
and marketing constraints in Kimbibit District. 126 butter producer households were selected by
multi-stage sampling procedure. In addition, 31 butter traders were selected by simple random
sampling techniques. Both primary and secondary data were used for the study. Descriptive and
inferential statistics were computed to describe demographic, socioeconomic and institutional
characteristics and livelihoods of sample households and traders. The Heckman two-stage
econometric estimation procedure was employed to identify factors that determine butter market
participation decision and volume of participation. The result of descriptive statistics revealed
that there were significant mean and proportional difference among between participant (79%)
and non-participant (21%) households in terms of livestock holding, total food crop yield, nondairy farm income and edible oil and vegetable butter consumption. Likewise, the result of the
Heckman first stage (probit) showed that butter market entry decision was significantly affected
by age, education level and distance to nearest butter market as well as access to market
information of households. The second stage estimation result revealed that total butter output,
total butter consumption, number of cross breed milking cows, edible oil and vegetables butter
consumption and market information were found to be significantly affected the volume of
butter sale. Following the market structure criteria of concentration ratio (CR), Sheno butter
market showed competitive nature in the Aso, Sheno and Addis Ababa market with CR of
18.44%, 22% and 32.41%, respectively. The maximum total gross marketing margin in the chain
was 42.71% and Producer‟s share of the consumer‟s price was found to be highest along
producers – consumers‟ market channel (channel I). However, it was found that Sheno butter
market were positively and significantly influenced by total butter output, number of milking
cows, edible oil and vegetables oil consumption and access to market information.
Keywords: Structure; Conduct and Performance; Market Participation; Determinants;
Heckman’s Procedure
186
186. Market Chain Analysis of Koka Reservoir Fish in Ethiopia
Abebe Cheffo Batti, Lemma Zemedu and Endrias Geta
Year: 2013
Abstract: This study analyzed the fish market chain of Koka reservoir in Ethiopia which is found
in Oromia Region, East Shoa and Arsi zones. The objectives of the study were to assess the
structure, conduct and performance of fish marketing as well as identify factors affecting fish
market supply. The study was based on the data obtained from a sample of 104 fishers and 36
traders in the fish market chain. Both descriptive and econometric methods were employed to
analyze the data. About 65% Tilapia (Coroso), 21% Catfish (Ambanza) and 14% Carp
(Abasamuel) were the type of fish which dominantly appear in the day to day marketing activities
of the fishers. The major determinant factors of market supply were estimated by using multiple
linear regression models. The fish market performance was also measured using indicators of
marketing margins. According to the results, there were three kinds of fish marketing channels
i.e. fishers to consumers, fishers to retailers then consumers, fishers to fishery cooperatives,
wholesalers then consumers. The result showed that transportation and filleting costs were the
largest costs of marketing followed by gutting cost. The price of a kilogram of filleted tilapia
varied from 18 birr at landing site to 75 birr at Atiklt Tera in Addis Ababa. The Ordinary Least
Square results indicated that education level, availability of credit facility and ownership of fishing
license significantly affected the amount of fish supplied to market by fishers in the study area.
Expanding adult education in fishery community, facilitating access to credit facility and
encouraging fishers to be legal is very important for better harvesting and marketing of fish.
Keywords: Tilapia; Catfish; Carp; Marketing Channels; Marketing Cost
187
187. Analysis of Onion Marketing: The Case of Fentalle Woreda, East
Shewa Zone, Oromia National Regional State, Ethiopia
Debela Adugna, Lemma Zemedu and Endrias Geta
Year: 2013
Abstract: This study was conducted in Fentalle Woreda, East Shewa Zone of Oromia region.
The overall objective of the study was to analyze onion supply chains in the study area. A total of
140 sample households and 42 traders were selected using simple random sampling method for
interview. Both descriptive and econometric methods were used to analyze the data. The study
result showed that only 20.5% of producers had the power to set price for their produce and
24.8% of the price was set by the expediency of market demand and supply, while above the
average 54.7% of price was set through negotiation with assemblers and traders. There were
seven identified onion market channels. Wholesalers and rural assemblers take the largest share,
purchasing 1084 quintals and 693 quintals of the production, respectively. Wholesalers obtained
the highest profit, which accounted for 111.65 Birr per quintal per day. The four-firm
concentration ratio implied that onion market was characterized by a weak oligopolistic market
structure. The result of the econometric analysis indicated that all the significant variables had a
positive effect on households‟ decision to sell onion except total number of family size of the
household which influenced marketable supply of onion negatively. And among the explanatory
variables included in the econometric model only five variables significantly influenced
marketable supply of onion. These were family size of the household, non-farm income of the
household, total land size of the household, total quantity of onion produced and access to credit
services significantly affected the quantity of onion supplied to the market. As identified,
producers were not benefited from the production of onion. Because, Markets are characterized
by low producers‟ share and high marketing cost. Therefore, government attention is needed in
improving the inefficiency in marketing through strengthening institutions like cooperatives. The
finding suggests that, effective market information service has to be established to provide
accurate and timely market information to producers on market forces. Moreover, emphasis
should be given to improve storage and transportation systems, credit and other services access
such as training to improve the efficiency of onion marketing.
Keywords: Onion, Market Chain; Structure-Conduct-Performance; Marketing Margin
188
188. Analysis of Cow Milk Market Chain: The Case of Sululta District,
Oromia Special Zone Surrounding Finfinne, Ethiopia
Meryem Kuru, Jema Haji and Endrias Geta
Year: 2013
Abstract: The study was conducted in Sululta district of Oromia Special Zone Surrounding
Finfinne with the specific objectives of identifying the key milk marketing channels, analyzing
structure, conduct and performance of cow milk market and identifying factors affecting milk
market participation decision as well as marketed surplus. A total of 120 sample household heads
from six kebeles of the district and 28 milk traders were interviewed to collect the data. The study
used both primary and secondary data. Descriptive statistics, SCP approach and Heckman twostep econometric estimation procedure were used to analyze the data collected. The market chain
analysis revealed that the major actors of milk marketing in the district were producers, semiwholesalers, dairy cooperative unions, milk processing industries and retailers. Thus, six main
market channels were identified. The important milk marketing chains have been identified and
much of the marketed surplus was channeled through Produce–Semi-wholesaler–Processers–
Retailer–Consumer channel and through Producer–Processes–Retailer–Consumer channel. The
result showed that the top four milk traders controlled 64.2% of the total volume of milk
purchased. This revealed the existence of strong oligopolistic market structure of milk in the
study area. Analysis of marketing costs and margins indicated that total gross marketing margin
was highest (62.5%) in Producer–Semi-wholesaler–Retailer–Consumer channel. Processors have
got the highest gross marketing margin in channel IV which was 43.5%. The net marketing
margin of the retailers and processors was highest in channel-I and IV that was 32.3% and 31%,
respectively. The results of Heckman two-step econometric estimation procedure shows among
thirteen explanatory variables hypothesized to affect milk market participation and sales volume,
households‟ participation decision in milk market was significantly affected by sex of the
household head, number of local and cross breed milking cows owned, number of children under
five years of age, non-dairy income, access to credit and market information. Similarly, in the
second step of Heckman, volume of milk marketed was significantly affected by number of local
and cross breed milking cows owned, number of children under five years of age, non-dairy
income and extension contact. The results suggest that milk market participation and volume of
marketed surplus would be improved through strengthening the access to services such as
efficient market information, responsive agricultural extension and family planning. Furthermore,
availing improved agricultural technologies and diversification of alternative sources of income is
very crucial for sustaining dairy production and marketing.
Keywords: Milk; Market Chain; Cow; Structure-Conduct-Performance; Heckman Two
Step Model
189
189. Performance of Micro Enterprise and Its Determinant Factors: The
Case of Hosanna Town, Hadiya Zone, Ethiopia
Abraham Ababiya and Endrias Geta
Year: 2013
Abstract: This study examined the benefit cost ratio of micro enterprise as related to financial
flow and its management to measure the performance and identified the factors that influence
the performance of micro enterprise in Hosanna town. All 174 micro enterprises from three subtowns of Hosanna were included in the study and key informants from relevant government
office were interviewed to collect necessary data on enterprises performance and determinant
factors. Descriptive analyses of the data were computed to assess various characteristics of micro
enterprises in the study area. According to the result obtained from benefit cost ratio analysis
71.8% of enterprises found in the study area survived whereas 28.2% failed. In addition, a
regression model was used to identify the determinant factors that affected the performance of
the enterprises. The results of the regression analysis showed that age of enterprises, age of
operators, education level, number of employees, amount of initial capital, entrepreneurial skill,
experience of manager, access to training and access to market were statistically significant at less
than 1% significance level and had positive relationship with the performance of enterprises.
Recommendations emanating from the study are to build up the performance of micro
enterprises not only to survive in the business but also to transform into small, medium and
higher level of enterprises. To improve the performance of enterprises beyond the impact of
challengeable constraints, all concerned bodies should give high attention to update and initiate
entrepreneurial skill by applying innovative training, ensure experience and best practice sharing
system, allocate sufficient capital, upgrade education level attained and create alternative market
demand, monitoring and evaluation of all benefit generated and costs incurred as well as effective
utilization of employees to ensure successful operational performance of the enterprises.
Keywords: Benefit Cost Ratio; Performance; Determinant Factors
190
190. Determinants of Growth and Diversification of Micro and Small
Enterprises: The Case of Dire Dawa, Ethiopia
Fikite Wolde, Endrias Geta and A.G. Ravi
Year: 2013
Abstract: This research was aimed at identifying factors affecting growth and diversification of
micro and small enterprises with a special emphasis on construction, manufacturing, and service
sectors in Dire Dawa Administration. The study used a stratified random sampling method to
select 190 micro and small enterprises. To achieve the objectives of this study, data were
collected using questionnaire through face-to-face interview and observation, and analyzed using
descriptive and inferential analyses as well as econometric models. The descriptive result showed
that the source of finance at the start-up were mainly personal saving and the major constraints
of the enterprise engaged in construction, manufacturing, and service at this time were lack of
sufficient capital, marketing and working place. The next major problems, which affected the
growth and diversifications of the three sectors in the study areas, were right advices,
opportunities, technology, and legalization. Majority of the respondents of construction and
manufacturing agree with opportunities and technological problems. But, respondents of the
three sectors agreed with the right advice and legalization problems. The average start-up capital
of enterprise engaged in construction, manufacturing, and service was Birr 6909.47 with an
average of 6.48 employees and at the time of the study, the average employment was 7.23
employees. About 85.8% of survey respondents sold their products/services in the local market
and 14.2% of them sold their products/services external market inside the country. However, no
firms were participating in export markets. The econometrics result indicated that age of
owners/managers and enterprises engaged in construction were negatively related to growth of
enterprises. Previous work experience, enterprise engaged in manufacturing, access to market,
access to working and selling premises, amount of initial capital, access to finance, social
networks, and vertical linkage were important factors which affected the growth of MSEs
positively. Similarly, diversification of MSEs was positively influenced by opportunities,
information and communication technology, strengthening the household asset basis, and
availability of key assets. Genders and age of owners/managers were also found to be significant
factor, which affect diversification of MSEs negatively. The findings of the study verified the
importance of micro and small enterprises in employment creation. The Dire Dawa
Administrative city has to promote the growth and diversification of micro and small enterprises
by facilitating necessary credit services, working premises, market, and experience sharing to
update their knowledge. In this regard, creation of awareness of the owners/managers to follow a
related diversification strategy through using opportunities, ICT and key assets that is
underutilized within the enterprises. And also it is advisable to give special attention and support
for enterprises that are owned/managed by female.
Keywords: Micro and Small Enterprises; Employment Growth; Related Diversification
191
191. Smallholder Farmers' Participation in Microfinance Program and Its
Impact on Their Income and Asset Holding: The Case of Ocssco in Robe
District, Arsi Zone, Oromia Region, Ethiopia
Sisay Yefru, Lemma Zemedu and Endrias Geta
Year: 2013
Abstract: This study was carried out to assess the determinants of participation in OCSSCO
microfinance program and its impact on income and asset holding of smallholder farmers in
Robe District. The study took a sample of 80 participant and 80 non-participant households
using multi-stage sampling procedure employing systematic and simple random sampling
technique, respectively based on probability proportional to sample size. Both primary and
secondary data were used for the study. Descriptive and test statistics were computed to describe
demographic, socioeconomic and institutional characteristics and living conditions of the sample
households. A propensity score matching (PSM) method was employed to analyze both
determinants of participation in microfinance program and its impact on income and asset
holding of participant households. The result of descriptive statistics revealed that there were
significant mean and proportional difference among participant and non-participant households
in terms of livestock holding in 2008, change in livestock holding from 2008-2012, extension
contact, distance of households‟ residential home from OCSSCO, non-farm income, food
expenditure, sex of household head, improving houses and amount and quality of food
consumed. Likewise the result of the propensity score (logit model) showed that family size,
participation in non-farm activity and extension contact were the statistically significant factors
influencing participation of households in microfinance program positively whereas dependency
ratio, size of loan and procedure of application for credit were factors that significantly and
negatively influenced the participation of households in microfinance program. The impact
estimate of the PSM showed that there was a positive but statistically insignificant impact of
OCSSCO microfinance program on farm income, total income and value of non-livestock asset
holding of participant households. On the other hand, non-farm income and change in livestock
holding (2008-2012) of participant households were positively and significantly affected. In
general, it can be concluded that OCSSCO microfinance program in study area played a
promising role in improving the livelihood of smallholder farmers. Therefore, in order to benefit
the rest of non-participants, OCSSCO should make an effort to address much number of
smallholder farmers.
Keywords: Robe District; OCSSCO Microfinance; Impact; Income; Asset Holding; PSM
192
192. Determinants of Farmers Participation in Farmers Research Group
and Its Contribution on Their Income from Rice: The Case of Fogera
District, Amhara National Regional State, Ethiopia
Yazie Chanie Tegegne, Lemma Zemedu and Tilaye Teklewold
Year: 2013
Abstract: Farmers Research Group which is one of the participatory agricultural research
approaches being implemented by Adet Agricultural research center in Fogera and other districts,
is an approach aimed to improve the conventional top-down research approach that doesn‟t fully
address the needs of subsistence and smallholder farmers. This study described current status and
identified determinants of farmers‟ participation decision in Farmers Research Group approach
and assessed contribution of the approach on farmers‟ gross margin earning level from rice
production. The study was conducted in Fogera district of Amhara Region on four kebeles by
collecting cross-sectional survey data from a total of 120 approach participant and nonparticipant households in 2012/13. The Heckman two step procedure of the treatment effect
model was employed to analyze factors of participation as well as to measure contribution of the
approach on gross margin earning level of participant farmers from rice production. The study
has also computed the gross margin earning level from rice. Results of the study revealed that
age, sex, education, access to research, access to training and access to credit affected positively
and significantly the probability of farmers participation in the approach while family size was
affected negatively and significantly probability of participation. The second stage estimation
results of the treatment effect model showed that family size in adult equivalent, access to
research, use of improved rice variety and dummy participation in farmers research groups
approach have significant relation to gross margin earnings from rice. The gross margin analysis
indicated that a farmer could generate additional gross margin of Birr 5,378.97 per hectare of rice
being participating in the approach than being non-participant while this figure was Birr
5,772.065 in the econometric model analysis that indicates the profitability of the approach.
Therefore, implementing FRG research approach by improving the associated problems could
lead to the increment of rice production and productivity that would in turn enhance income of
farmers.
Keywords: Rice; Farmers Research Groups; Gross Margin; Heckman Two Step; Fogera
193
193. Dimensions and Determinants of Poverty in Agro- Pastoral
Households of Jigjiga District, Somali National Regional State, Ethiopia
Abdikadir Mohamed Ali, Jema Haji and Lemma Zemedu
Year: 2013
Abstract: Poverty mitigation is one of the global challenges that ever faced mankind and
stimulated global action exemplified by the millennium development goals. In Ethiopia, several
economic reform programs and initiatives have been conducted to fight poverty but little
progress has been made to overcome the situation at the household level. Especially the struggle
to reduce poverty at household level in Somali pastoral and agro-pastoral areas, which have been
relegated in the waiting room of development by the successive governments, has continued as a
challenge. Agro-pastoral households in Jigjiga district have faced multidimensional and persistent
poverty. The design and implementation of effective measures to reduce household poverty in
the district depends on in-depth understanding of dimension, covariates and intensity of poverty.
This study is sought to address these issues by assessing location specific demographic, socioeconomic and institutional factors that influence poverty of agro-pastoral households in the
district. The analysis is based on survey data gathered from randomly selected 160 sampled agropastoral households. Consumption expenditure and Cost of Basic Need methods were used to
measure poverty and construct poverty line, respectively. Accordingly, the food poverty line was
2255.59 Birr and the total poverty line was 3821.74 Birr per AE per year. The FGT poverty index
was employed to examine the extent and severity of poverty. It reveals that nearly 43.75% of the
sample households live below poverty line with poverty gap and poverty severity index of 0.1345
and 0.0443, respectively. Fifteen explanatory variables were included in the binary logit model to
identify factors influencing household poverty. Among the fifteen explanatory variables included
in the empirical model, number of livestock (TLU/AE), oxen ownership, farm size, farm income,
non-farm income, income from sell of milk, expenditure on improved seed and expenditure on
veterinary service showed theoretically consistent, statistically significant and negatively affecting
poverty. Family size (in AE), sex, and dependency ratio have positive and significant effect on
poverty. The findings imply that emphasis should be given to the following issues with a view to
reduce poverty prevalence in the study area. Accordingly, building basic livelihood assets,
improving institutional services (extension, veterinary, market, attitude change on credit
utilization), and improving the labor market and gender equality could provide entry points for
policy making and intervention.
Keywords: Poverty, FGT; Logit; Agro-pastoral; Jigjiga
194
194. Magnitude and Determinants of Rural Household Poverty in Gursum
District of Somali Regional State, Eastern Ethiopia
Lemma Kiftaga, Abebaw Shimeles and Endrias Geta
Year: 2013
Abstract: Poverty is complex, multidimensional and dynamic in nature. The concept of poverty
is used to cover a wide ranging set of interrelated life chances that are valued differently in the
diverse cultures and traditions of the world. The present study was carried out at Gursum district
of Somali Regional State, Eastern Ethiopia with specific objectives of exploring the magnitude
and determinants of rural households‟ poverty. The study used primary data collected from three
kebels which were selected randomly out of four rural kebles and probability proportional to size
sampling technique was employed to draw a total of 120 sample households through personal
interview using structured questionnaire. The data collected were analyzed using FGT poverty
index, descriptive statistics and tobit regression model. The FGT poverty index was employed to
examine the extent and severity of rural poverty and revealed that about 43.33% of the sample
households live below poverty line with 8.08% poverty gap and 2.3% poverty severity. In
addition, the computed results of the tobit model revealed that poverty status of rural households
have positive association with total family size, and farming system. On the other hand, cultivated
land holding size, livestock ownership, land productivity, age of household head, sex of
household heads, adoption of technology and educational status of household heads were found
out to have strong negative association with the household's poverty. The result of this study
could contribute towards attainment of improved perception of the extent of poverty, its
distribution and underlying feature so as to assist in preclude poverty in the study area and for
similar socio economic environment. Policy which aims at enhancing family planning awareness
scheme, increasing the productivity of land, encouraging ownership of asset like land and
livestock will exert positive effect for reducing rural poverty in the study area.
Keywords: Rural; Poverty; Magnitude; FGT Poverty Index; Tobit Model
195
195. Analysis of Demand for Biogas Technology Using Contingent
Valuation: The Case of Dugda District, Eastern Shewa Zone, Oromia
National Regional State, Ethiopia
Derese Getachew and Belaineh Legesse
Year: 2013
Abstract: The present study was aimed at analyzing household demand for biogas technology in
Dugda District, Eastern Shewa Zone of Oromia National Regional State. The specific objectives
of the study were to determine household demand for biogas technology and to identify factors
affecting households‟ willingness to install biogas plant and amount they are willing to pay. Data
was collected from 124 randomly selected sample households in 4 selected rural “kebeles”. A
contingent valuation method was used to elicit households‟ amount are willing to pay. The main
findings from this analysis are that demand for biogas technology at both market and highly
discounted or subsidized prices is very low. For instance, about 40% discounts in the installation
price only led to 8.9% increase in the demand for biogas technology. Demand for the technology
at full installation cost is found to be negligible as only 0.8% of households became willing to pay
for biogas plant installation. Heckman two-stage econometric model was employed to analyze
factors affecting households‟ willingness to install decision and maximum amount they are willing
to pay for biogas plant. Based on the model result, number of tropical livestock unit, proximity to
water sources, access to extension services related to biogas technology and perceptions of
households about quality of biogas plant installed were significant in determining households‟
decision to install biogas plant while annual cash income, number of tropical livestock unit, type
of house a household own, educational level of head of household, access to credit, perception of
households about quality and attributes of biogas technology were significant variables in
explaining maximum amount they are willing to pay. Giving more emphasis and support to
livestock rearing, water supply, extension services, improving the quality and attributes of biogas
technology, improving the households‟ income and minimizing cost of installation by using
locally available materials are the main implications of this research. These considerations may
allow scaling-up of biogas technology effectively for the next consecutive phases.
Keywords: Biogas Technology; Contingent Valuation Methods; Demand Analysis;
Heckman Two-Stage; Willingness to Pay
196
196. Determinants of Willingness to Pay for Conservation and
Rehabilitation of Bamboo Forests: The Case of Bambasi Woreda,
Benishangul Gumuz Regional State, Ethiopia
Adugna Lake Tiruneh, Mengistu Ketema and Fekadu Gelaw
Year: 2013
Abstract: Bamboo forests in Bambasi Woreda are facing a mass flowering challenge which leads
to mass death of bamboo. Thus, conservation and rehabilitation measures which consider the
participation of the local people are necessary to save the bamboo forests from being vanished.
Therefore, the study was conducted to assess communities‟ willingness to participate in the
conservation and rehabilitation of bamboo forests in Bambasi Woreda. The main objectives of
the study were to assess households‟ WTP in cash and/or contribute in labor; and to identify
factors that determine households‟ WTP for the conservation and rehabilitation of bamboo
forest. The study used primary data obtained from a survey conducted on 130 randomly selected
rural households. DBDC elicitation format of contingent valuation method was employed. The
data were analyzed using descriptive statistics and bivariate probit model. The response of
households' for scenario indicated that the mean WTP for the conservation and rehabilitation of
bamboo forest was found to be Birr 5.59 and 2.74 man-days per month per household in cash
and labor, respectively. The annual aggregate WTP of rural households was estimated to be Birr
683266 in cash and 336534 in man-days in labor. The results of the model revealed that
household's literacy status, origin, gross income from agricultural activities, nearness of plots to
bamboo forests, total cultivable land owned, total livestock in TLU, contact with extension
agents and training had positive and significant effects on WTP, while age of the respondent had
a negative and significant effect on WTP. The study revealed that the local households have
already recognized the existing degradation of the bamboo forests and are willing to participate in
the conservation and rehabilitation of the resource. Furthermore, policy implications were made
to sustain the participation of community in conservation and rehabilitation of bamboo forests
and other environmental resources.
Keywords: Mass Flowering; Bamboo; DBDC; Bivariate Probit Model; WTP
197
197. Farmers’ Willingness to Pay for Locally Produced Potato Seed Tubers
and Groundnut Seed: The Case of Haramaya and Babile Districts of East
Hararghe Zone, Oromia Regional State, Ethiopia
Reta Wegary and Mengistu Ketema and Nigussie Dachassa
Year: 2013
Abstract: In Ethiopia, access to quality seed is still constrained by many factors. A major reason
for the low use of quality seed by smallholder farmers is the inability of formal, centralized seed
production system to meet the complex and diverse seed requirements of farmers. Consequently,
the government has increased its efforts to develop Seed Producers‟ Cooperatives (SPCs) and/or
smallholder seed enterprises approaches, which provide a valid alternative for the production and
distribution of quality seeds for food security crops and help as a bridge between the formal and
informal seed system. However, the successful implementation of such schemes requires
understanding of determinants of farmers‟ willingness to pay. Therefore, the study was conducted
to analyze farmers‟ willingness to pay for quality potato seed tubers and groundnut seeds locally
produced by SPCs and to identify factors determining the level of use of the seeds. The data were
collected from 240 sample respondents drawn randomly from seed potato producing farmers
from Haramaya district and groundnut seed producing farmers from Babile district (120 from
each districts) using a closed ended contingent valuation methods (CVM) format followed by
open ended follow up questions. The double hurdle model was employed to analyze the farmers‟
willingness to pay and factors affecting the intensity of premium willingness to pay (PWTP) for
quality seeds on top of grain prices. Tobit model was employed to analyze factors determining
the level of quality seed used by farmers. The results of the double-hurdle model revealed that
level of education, land holding, and seed quality were factors that significantly influenced both
farmers‟ decisions to pay and the intensity of WTP for quality potato seed tubers. The results also
showed that farmers‟ willingness or unwillingness to pay for quality groundnut seed and the
intensity of PWTP for the seed of the crops were significantly affected by family size, land
holding, seed availability and seed quality. The results of the Tobit model showed that level of
education, land holding, use of irrigation, access to credit, seed quality and availability significantly
determined the level of use of quality potato seed tubers. Similarly, farmers‟ experience, tropical
livestock unit, shocks due to environmental calamities, seed replacement, and seed aid
significantly affected the level of use of quality groundnut seed. Drawing from this result,
responsible organizations need to give emphasis to improve farmers‟ knowledge and awareness
about the potential benefits of using quality seed through various training, demonstration, and
promotion activities. In addition, research efforts should focus on more client-oriented research
systems to meet the actual demand of farmers, both in terms of needs and varietal preferences.
Furthermore, it is advisable to design a sustainable seed system and encourage NGOs to no
longer distort seed demand by distributing subsidized seed; and the policy makers need to focus
on sustainable development rather than giving some aid at the time when disaster occurred.
Keywords: Potato Seed; Groundnut Seed; Willingness to Pay; Contingent Valuation
Method (CVM)
198
198. Farmers’ Willingness to Pay for Weather Index Crop Insurance: The
Case of Adiha, Central Tigray, Ethiopia
Ataklti Techane Teame and Fitsum Hagos
Year: 2013
Abstract: As smallholder farmers in Ethiopia face recurrent drought and lower productivity due
to inadequate use of farm inputs, the need to develop risk transfer mechanisms and use of
modern agricultural inputs becomes an important and challenging task for farmers and policy
makers. This study explores the willingness to pay for weather index insurance of smallholder
farmers and the impact of weather index insurance on farm input investment in Adiha tabia of
Tigray, Ethiopia using sample households of 182. The main research questions were: First do
smallholder farmers willing to pay for weather index insurance? Second, what are the factors that
affect the willingness to pay for weather index insurance of smallholder farmers? Third, is there
any difference in farm input use between farm households that are participating in weather index
insurance and that did not? The first 2 questions were empirically investigated via survey based
on the Contingent Valuation Method. 182 smallholder farmers were surveyed throughout Adiha
tabia of Tigray region where willingness to pay for weather index insurance was elicited. With
respect to the first hypothesis, results show that the mean willingness to pay for weather index
insurance based on double bounded model is Ethiopian Birr 3145.28 ($USD 174.7) for four years
and Birr 786 ($USD 43.7) per annum. With respect to the second question the bivariate probit
model results revealed that the household head being male, education level, plot size, awareness
of weather index insurance, risk preference, access to credit and total asset value affects positively
to the willingness to pay for weather index insurance while household size, age of the household
head and distance to meteorological station affects negatively. The third component of this
research was to investigate how participation in weather index insurance affects farm investment
as measured by per capita input cost per tsimdi. To this end, we used the Propensity Score
Matching (PSM) using three matching algorithms. The Average Treatment Effect for the treated
results revealed that participants in weather index insurance have higher and significant per capita
input cost than their counterparts. The results of the nearest, kernel and calliper matching
indicated that participants in weather index insurance have higher and significant per capita input
cost per tsimdi amounting Ethiopian Birr 229, 205 and 201 than their counterparts. The study
concluded with the recommendation that farmers‟ willingness to pay for weather index insurance
need to be strengthened by educating farmers and devising fair premium levels so as to sustain
the product market and realize the intended impact of weather index insurance in the face of
drought.
Keywords: Weather Index Insurance; Willingness to Pay; Bivariate Probit Model; PSM;
Adiha; Ethiopia
199
199. Coffee Value Chain Analysis: The Case of Meta District, East
Harereghe Zone of Oromia Regional State, Ethiopia
Jemal Hashim Ali, Lemma Zemedu and Endrias Geta
Year: 2013
Abstract: The study was conducted to analyze the coffee value chain in Meta District of East
Hararghe Zone of Oromia Region. East Hararghe coffee has highest distinctive quality that
deserves premium high prices at both local and international markets. The specific objectives of
the study were to map coffee value chain, to assess coffee value chain actors‟ marketing margin
and marketing cost and their net share, identifying opportunities and constraints in the coffee
value chains and to analyzing factors influencing market supply of coffee. The study was based
on data generated from one hundred twenty coffee producers, twenty collectors, six suppliers,
and 2 exporters and one union. Descriptive statistics, value chain mapping and econometric
methods were employed to analyze the data. Result obtained indicated two coffee value chain
channels. One of which consists of farmer, coffee collectors, suppliers and exporters and the
other consists of farmers, cooperatives and union. Gross marketing margin for producers in
conventional coffee market and faire-trade were 68.90% and 69.75% respectively. Result from
econometric analysis using multiple linear regression model indicates that four variables are
significantly affecting market supply of coffee. These are experience in coffee farming, extension,
market information, and land holding size. Absence of hulling machine was the most critical
problem that affects the whole value chain. Therefore, the findings of the study underscore
strengthening extension service, sharing experience among farmers, increase production and
productivity and strengthening input supply, increase the proportion of coffees selling at
significant premiums, timely updated and sustainable market information services, coffee quality
improvement, solving existing problems of hulling machine, and cooperatives expansion as
important policy issues to improve coffee value chain the study area.
Keywords: Coffee; Value Chain; Actors; Mapping; Linear Regression Model; Premium
200
200. Analysis of Cattle Value Chain: The Case of Wolaita Zone of
SNNPRS, Ethiopia
Shambel Bekele and Dawit Alemu
Year: 2013
Abstract: This study was initiated to analyze cattle value chain with special emphasis to Wolaita
Zone of SNNPR of Ethiopia. The main objectives of the study were, to examine the level of
cattle keeper market participation and determinants of value of cattle marketed. In the study area,
to analyze the structure, conduct and performance of cattle markets, to identify the cattle value
chain actors, activities, the distribution of costs and benefits among them and to examine the
level of integration between sample markets. Both primary and secondary data sources were used
and a total of 150 cattle keeper sample households from two potential cattle producing Woredas
of the Zone were surveyed. In addition 60 cattle traders were interviewed on the status of cattle
marketing in the study area. Heckman two stage models was applied to identify factors affecting
the cattle keeper‟ participation decision in cattle marketing and value of cattle marketed in the
study area. The study results reveal that the major actors in the cattle value chains being cattle
keeper, farmer traders, rural collectors, fulltime trader and butchers. The cost margin indicate that
farmer trader obtained on average 394.8 Birr per head, Amateur trader, 494.6 Birr/head, fulltime
trader 570.65 Birr per head, and butcher 1126.65 Birr per head. Strong oligopolistic market
structure is observed in Sodo cattle market with 50.4 percent concentration ratio. Results from
Heckman‟s two stage shows among eighteen explanatory variables hypothesized to affect cattle
market participation decision age of the household head, number of cattle owned, access to
grazing land, access to market and lagged price as significant. Access to credit, total number of
cattle owned, lagged price of cattle, access to market information and number of new born calves
were also found to be significant variables influence the value of cattle marketed. Results of the
Granger causality test indicate that Sodo and Boditi oxen market have bidirectional relationship.
On the other hand, Addis Ababa oxen market has unidirectional relationships with both Sodo
and Boditi market. The findings suggests that, effective market information service has to be
established to provide accurate and timely market information to cattle keeper and traders on
current supply, demand and prices of cattle at national and regional levels.
Keywords: Cattle; Marketing; Value Chain; Structure-Conduct-Performance; Heckman
Two Step Model
201
201. Comparative Analysis of Direct and Multilevel Hybrid Maize Seed
Marketing and Distribution Systems in Southern Ethiopia: The Case of
Bona and Bensa Woredas
Eleni Bisrat, Endrias Geta and Jema Haji
Year: 2014
Abstract: This study was initiated to evaluate the comparative analysis of direct and multilevel
hybrid maize seed marketing and distribution systems in southern Ethiopia with special emphasis
at Bona and Bensa woredas. The objectives of the study were to identify the stakeholders‟
participation in seed market, to analyze comparative performance of direct and multilevel
marketing and distribution system, and to identify factors affecting utilized volume of hybrid
maize seed purchased in direct market and through multilevel distribution system in the study
area. The study was mainly based on the data collected from 156 sample maize farmers.
Moreover, data were obtained from focus group discussants across seven kebeles of two
woredas, key informants‟ interview with public sector stakeholders in the hybrid maize seed
market and NGOs. Descriptive statistics, such as mean and percentage as well as t-test, and chisquare test were employed to characterize the hybrid maize seed market participants in both
marketing systems. Moreover, Strength, Weakness, Opportunity and Threat (SWOT) analysis was
used as an instrumental framework in seed marketing system. An ordinary least squares (OLS)
regression model was used to identify factors affecting farmers' utilized volume of seed
purchased in the study area. The comparative market performance analysis carried out in terms of
major stakeholders‟ participation in seed market system in two woredas and their linkage with
farmers, the supply and demand trend and factors which affect farmers' seed utilization. Results
from OLS showed that among eighteen explanatory variables hypothesized to affect volume of
hybrid maize seed purchased from the market system nine variables such as family size, amount
of annual income, commercial fertilizer used, total land product access to right seed variety,
experience in use of hybrid maize, market information, tropical livestock unit and market channel
significantly affected the volume of seed purchase in market system. Formal seed system
production and distribution is highly dominated by public sector organization and few private
sectors were participating in the production and marketing. This study recommends to establish
effective marketing system which bridges the gaps between seed producer and consumer,
increases access to the right variety seed among smallholder farmers and enhances the delivery of
required quantity and better quality of seed on time to increasing crop productivity and making
the beneficiaries users of improved seed.
Keywords: Direct Market System; Multilevel Distribution System; Hybrid Maize Seed
202
202. Socio-Economic Determinants of Under Five Child Malnutrition in
Rural Dire Dawa Administration, Ethiopia
Abduljebar Abdusemed, Jema Haji and Wegayehu Bekele
Year: 2013
Abstract: This study was undertaken with the objectives of determining the prevalence of under
five children malnutrition and to identify the socio- economic risk-factors determining under five
children malnutrition in Dire Dawa rural kebeles. In order to achieve this objective 460 children
and 160 households were selected by using two-stage cluster sampling technique to investigate
the association between the selected risk factors explaining under five children malnutrition
through three malnutrition indicators namely stunting, underweight and wasting. The data used in
this study were collected by using structured questionnaire from the selected respondents. In
addition to this, focus group discussions were held with key informants such as community
leaders, health extension workers, agricultural extension agents and head of Dire Dawa
agriculture office and health Bureau workers. Descriptive statistics and logistic regression model
were used to analyze the data. The result shows that 36.9%, 40% and 23.1% children of the
sample respondents were stunted, underweight and wasted respectively. The model result has
shown that, among 11 explanatory variables that were hypothesized to explaining under five child
stunted malnutrition ,only two variables namely, length of food secure months and, distance to
the nearest health center were significant at 5% significance level. In the same fashion, among the
explanatory variables explaining wasting of under-five child malnutrition, , the only variable
found to be significant at 5% significance level was total family size where as sex of household
head turned out to be significant at (P<0.01) significance level. A separate logistic regression
analysis on determinants of underweight malnutrition indicated that father‟s education, duration
of breast feeding and age of the child resulted to be significant at 5% significance level. In the
same token length of food secure months and total frequency of feeding were turned to be
significant at 1% significance level. The result of this study has revealed that intervention
measures that aim at chronic malnutrition would have a multiplier effect in alleviating the root
cause of chronic malnutrition which in turn results in substantial reduction of acute malnutrition.
So the regional government should focus on measures that aim at chronic malnutrition.
Keywords: Under Five Child; Malnutrition; Stunting; Underweight and Wasting; Binary
Logistic Regression
203
203. Choices of Varieties and Demand for Improved Rice Seed in Fogera
District of Ethiopia
Afework Hagos and Lemma Zemedu
Year: 2014
Abstract: The Agriculture sector in Ethiopia in general and at Fogera district in particular is
characterized by the use of inadequate production technologies, fluctuations in crop yields,
uncertainties, and food insecurities. To solve these problems, the study has duly focused to assess
the nature of demand for improved rice seeds in Fogera district of Ethiopia. It particularly
focused on the structure conduct and performance of rice seed market, the major constraints and
opportunities of seed production and marketing, the main determinants of participation and
choice among improved varieties, and the demand for improved varieties. For this study purpose
151 households were randomly drawn from three randomly selected Kebele in probability
proportional to size method. Analysis of the market structure reveals that several factors favor
imperfect competition in the rice seed marketing, including unequally distributed shares of
transactions among traders and barriers to entry. The distribution, with a Gini Coefficient of
0.18, which indicates that there is less inequality in the marketing of rice seeds among rice seed
suppliers in the district. This means that the rice seed trade is evenly distributed among different
agencies in rice seeds trade in the district, and the concentration ratio indicates that 100 % of the
market share going to the 4 largest firms and shows imperfect competition in the rice seed
market. The demographic and socio economic factors that determine the participation in
improved varieties were households labor availability, education level of the household head, land
holding, distance to the nearest village market, proximity to the main market, distance to
agricultural extension service, access to the source of rice seeds, access to new cultivars of rice
and off-farm income. However determinants of choice decision varied from cultivar to cultivar.
The evidence of the study from the interdependence among the decision of adoption of
improved rice varieties suggests that the need to launch a progressively developing package and
scheme of rice technology generation, and points to the importance of mobilizing additional
resources to augment households‟ efforts at popularization and promotion of improved rice
cultivars will accelerate technology adoption. The findings from LA/AIDS model showed that
compelling evidence for small proportion changes in own prices and cross price of improved rice
varieties lead to greater than unitary proportionate changes in their purchases. The results
generally show that farmers are very sensitive to changes in improved rice seed prices and
incomes. The major implication of the findings is that any intervention to improve farmers‟ seed
purchases should take into account efforts to increase farmers‟ purchasing power.
Keywords: Rice Seed; Structure; Conduct and Performance; Multivariate Probit;
LA/AIDS
204
204. Economic Efficiency of Rain-Fed Wheat Producing Farmer’s in
North Eastern Ethiopia: The Case of Albuko District
Awol Ahmed Esheite, Hassen Beshir and Lemma Zemedu
Year: 2014
Abstract: An increase of agricultural production is very important to achieve the goal of food
security. An efficient use of the existing resources by farm households improves their
productivity and thereby increases their output. Wheat is one of the dominant crop and its
productivity is low in the study area. This means that it is possible to obtained additional output
from existing inputs used, if resource are properly used and efficiently allocated. This study was
aimed to estimate overall efficiency and identifying the factors that explain variation in efficiency
of wheat producing farmers in Albuko district of northern eastern Ethiopia using cross-sectional
data obtained from randomly chosen 120 farmers in 2012 production yea. The Maximum
Likelihood Estimates of Cobb-Douglas stochastic frontier production function was used to
predict the TE of farmers. The use of self-dual Cobb-Douglas production frontier functions
allows the cost frontier to be derived and used to estimate EE. The coefficients of the CobbDouglas production function are interpreted as elasticity and summing the individual elasticity
yields a scale elasticity of 0.956. This indicates that farmers are facing decreasing returns to scale.
This means that a 1% simultaneous increase in all inputs at the sample mean will increase wheat
output by about 0.956%. The analysis of resource productivity revealed statistically significant
positive elasticity of land, labour, fertilizer and oxen and implying that increase in each of these
inputs will increase wheat output. The study also found that mean indices of TE, AE and EE
were 72.49%, 42.7% and 31.65% respectively. The study found that sex of the household heads,
land fragmentation, fertility status of land, slope, credit use, training obtained and oxen numbers
contributed significantly and positively to TE, while it has inverse related with farm size. The AE
and EE of the farm household was positively and significantly affected by sex of the household
heads, frequency of extension use, oxen number, family size, slope and training shows that these
variables determine the level of efficiency positively. On the contrary, age of the household heads
and number of livestock unit have inverse related with AE and EE level. A policy implication of
this study is that there is enough potential for farmers to increase wheat production by increasing
of ploughing oxen ownership and by considering the positive impacts of livestock market besides
crop production, livestock raring should get more attention. Enhance women‟s farming skills and
increase their awareness about family planning. The study recommends that the access to credit,
increasing the frequency of extension contact, improving farmers‟ capacity and capability to use
modern inputs along with recommended rate, improving soil fertility, expanded education and
extension training services about efficient resource allocation which helps to improve efficiency
and productivity.
Keywords: Cobb-Douglas Function; Efficiency; Frontier; Parametric; Ethiopia
205
205. Mushroom Value Chain Analysis in Addis Ababa, Ethiopia
Dagne Getachew Woldemedhin, Lemma Zemedu and Abeje Eshete
Year: 2014
Abstract: In this study mushroom value chain analysis was conducted in Addis Ababa, Ethiopia.
The general objective of the study was to understand the mushroom value chain which helps to
identify what interventions will be needed in order to make the sector more competitive in the
domestic and export markets and thereby improve the livelihood of the urban people. Primary
and secondary data were collected from 120 producers, 5 traders, 8 spawn suppliers, 6
supermarkets, 7 hotels and restaurants and 40 end users. For analysis descriptive and inferential
statistics, alternative specific conditional logit and Cobb-Douglas production function were
applied. On average about 13,477.5 kg mushroom was produced per month by sampled
producers with the productivity of 4.4 kilogram per bed. The average price of mushroom was
range from 30.7 to 64 ETB per kilogram. Mushroom value chain actors are input suppliers,
producers, traders, processors and consumers. There are eight mushroom market channels in the
study area. The highest and the lowest amount of the total value added were 171.87 and 20.77
ETB per kilogram, respectively. Spawn suppliers play the greatest role in the distribution of input
and output along the value chain. The structural conduct performance of mushroom producers
revealed the characteristics of both monopolistic and perfect competitions. Whereas the
structural conduct performance for spawn suppliers had shown the characteristics of oligopolistic
market structure. Alternative specific conditional logit model estimates showed that alternative
specific variables, volume of mushroom purchased and mode of payment are significantly
determining the choice of alternative market. Case specific variables such as sole proprietor
business type, marketing experience, primary and tertiary education level, continuous production,
being licensed and the amount of credit are significantly affecting the choice of alternative
markets relative to the base alternative market. Cobb-Douglas production function result also
shows that chemical pasteurization and the quantity of spawn were significant at 1% level. Cost
of spawn was also significant at 5%, while being partner business type; extension access and
experience were significant at 10% level. Based on the results it can be concluded that,
demographic, cultural, socio- economic and institutional factors influence mushroom value chain.
Higher educational and research institutes release of suitable mushroom production technologies
and scale up may contribute for the commodity development. Relevant governmental bodies
need to create awareness about the nutritional and medicinal values of mushroom, generate
market information, to facilitate licensing, to establish standard and quality control mechanisms
and link producers to potential market.
Keywords: Mushroom; Alternative Specific Conditional Logit; Cobb-Douglas Production
Function; Market Structure; Conduct and Performance
206
206. Determinants of Recreational Demand of Abijata-Shalla Lakes
National Park in Ethiopia: A Travel Cost Approach
Fisseha Seyoum Tullu, Mengistu Ketema and Lemma Zemedu
Year: 2014
Abstract: Abijata-Shalla Lakes National Park is one of the Ethiopian national parks found in the
Ethiopian and well recognized for its tourism amenities at the world level. It was established
mainly for conservation of birds and other wildlife biodiversity species. Because of its tourism
amenities large number of visitors from different parts of the world visits the park. However, the
park is under serious threat of competition for subsistence agriculture by local people. To allocate
the park resource efficiently in the absences perfect market, policy and decision makers need
recreation visit demand and based on its number of visit and determinants of the park visitor‟s
information. The objective of this thesis was to estimate recreational visit demand of the park
and estimate visitors use value and identify recreational determinants using individual travel cost
method. The data was collected from 99 visitor samples at the park using structural questionnaire
and analysis was made using count data Poisson model. Based on the analysis per person on
average visit was found to be 1.79. Average visitor's consumer surplus was found to be Birr 3,107
per visit. Total annual on-site visitors recreational demand was estimated to be Birr 40.4 million
during the study period. The net present non-market recreational demand of ASLNP was Birr 0.6
billion in 20 years period. The regression analysis result showed that visitors travel cost, visitors
family size and existence of substitute site were found to negatively while visitors‟ family after tax
monthly income, visiting experience and visitors‟ attitude toward the park were found to
positively affect the recreation demand of the park positively. The identified factors affecting the
Park should be considered during park recreation policy development. In addition, annul revenue
collected by park was only 3% visitors' use value. Therefore, it is possible to further increase the
revenue of the park. To do that strengthen the park conservation activates are important.
Keywords: Recreational Demand; Travel Cost Method; Poisson Regression; Ethiopia
207
207. Factors Affecting Community Participation in Managing Drinking
Water Supply Facilities: The Case of Sofi Woreda, Harari Region,
Ethiopia
Lily Mersha Abebe, Belaineh Legesse and Jema Haji
Year: 2014
Abstract: Access to safe drinking water supplies and sanitation services in Ethiopia are among
the lowest in Sub-Saharan Africa. While governmental and nongovernmental organizations have
been implementing water supply and sanitation projects in recent years, many failed shortly after
construction due to improper management. Community participation in managing rural drinking
water supply is considered important in ensuring sustainability of community water supply.
Therefore, the major objective of this study is to identify factors influencing community
participation in managing drinking water supply facilities in the study area. In the course of this
study primary data were collected from 156 households out of which 103 were participants while
the rest 53 sampled households were non-participant in water resource management. In this
study multistage sampling technique was employed. Descriptive statistics such as percentage,
mean, frequencies and other tests of significance were used to describe sampled respondents in
terms of some desirable variables. The double-hurdle model was applied to determine factors
influencing the decision of households to participate in water resource management. Moreover,
the study has examined factors that affect intensity of participation in water resource
management using multiple regression analysis. A total of 12 explanatory variables were included
in the model of which two explanatory variables were found to be significantly affecting both the
decision to participate and intensity of participation at less than 1% and 5% probability level.
While households‟ participation decision is influenced by family size, water committee
membership, and participation in water management training whereas household income,
leadership status of the household head in the community and involvement in non/off-farm
activity were found to be statistically significant in influencing the intensity (level) of
participation. Thus, for drinking water supply schemes to be sustainable it requires inclusion of
all these factors in planning of water supply projects.
Keywords: Double-Hurdle; Community Participation; Drinking Water Supply; Harari
Region
208
208. Determinants of Commercialization of Teff and Its Factor
Productivity Outcome: The Case of Tahtay Qoraro Woreda, Northwest
Zone of Tigray Regional State, Ethiopia
Mebrahatom Medhane, Dawit Alemu and Belaineh Legesse
Year: 2014
Abstract: This research attempts to contribute to the understanding of smallholder
commercialization of teff production with the specific objectives of assessing the present level of
commercialization, investigating total factor productivity of teff production among households
operating at different levels of commercialization as well as to identify and analyze factors
determining the extent of smallholders‟ participation in output market. The study was mainly
based on the cross-sectional data collected from 120 sample households which were randomly
selected from three rural kebeles, that were stratified based on their distance from market center.
For the data analysis, both descriptive statistics and econometric analysis were used to meet the
stated objectives. Accordingly, the one way ANOVA, which was employed to find out if there is
a statistically significant variation in total factor productivity among sample households at the
different levels of commercialization, confirmed existence of statistically significant difference
between the considered groups. Moreover, OLS econometric model was used to identify and
analyze factors that determine the extent of smallholders‟ participation in output market.
Accordingly, out of the included 14 variables; 9 were found to significantly influence the volume
of teff sold. Of which, Ownership of equine, cash expenses for farming, specialization in teff (% of
land allocated to teff) and total factor productivity, market price of teff and ownership of oxen
were those explaining the variation of teff output sale positively as evidenced by the OLS model
while distance from homestead to the nearest market place and distance from homestead to allweather road found to affect negatively. Thus, the significant TFP mean difference between the
three degrees of teff commercialization, the significant high explanation power of; TFP, cash on
farm inputs expenditure and specialization in teff production, all suggest the necessity of
interventions to promote production and productivity. Similarly, road and market infrastructure
as well as ownership of oxen and equine are the other critical issues that need intervention
emphasis to increase the level of commercialization of teff production.
Keywords: Commercialization; Total Factor Productivity; Teff; Smallholders; Market
Participation
209
209. Economic Efficiency in Barely Production: The Case of Chole
District, East Arsi Zone, Oromia National Regional State, Ethiopia
Mustefa Bati Geda and Jema Haji.
Year: 2014
Abstract: As the world‟s population grows and the potential to increase production by bringing
more resources into use becomes more limited, it is natural that the efficiency with which farmers
use available resources would become more important as a topic of investigation. Therefore, this
study aimed at analyzing the economic efficiency of barley production in Chole district using
cross sectional data collected from 150 randomly selected sample households during 2012/13
production season. Cobb-Douglas production function was fitted using stochastic production
frontier approach to estimate technical, allocative and economic efficiency levels, whereas Tobit
model was used to identify factors affecting efficiency levels of the sample farmer. The results
indicated that there was a significant inefficiency in barley production in the study area.
Accordingly, the mean technical, allocative and economic efficiencies of barley producer farmers
were 78.20, 46.05 and 35.26 percent, respectively. This implies that output can be increased by
21.8 percent or cost can be reduced by 53.95 percent given the existing level of technology and
resources. This inefficiency however, can be improved if factors that determine efficiency level of
farmers in the production of barley in the study area are identified and targeted. Results of the
Tobit model revealed that age, education, total cultivated land, extension contact, family size, soil
fertility, off/non-farm income, sex, crop rotation and livestock ownership positively and
significantly affected technical efficiency while land fragmentation and total expenditure had
negative and significant effect. Result of the Tobit model also revealed that age, education, total
cultivated land, training, crop rotation and livestock ownership positively and significantly
affected allocative efficiency while extension contact, land fragmentation, distance of the farm
from homestead, and total expenditure were found to have negative and significant effect.
Among the factors hypothesized to affect the level of economic efficiency, age, education,
training, family size, off/non-farm income, crop rotation and livestock ownership were found to
have positive and significant effect on economic efficiency in barley production. The results of
the study indicated that there was a room to increase the efficiency of barley producers in the
study area through policies and strategies directed towards the above mentioned determinants.
Keywords: Cobb-Douglas; Stochastic Frontier; Tobit
210
210. Impact of Productive Safety Net Program on the Livelihood and Food
Security of Rural Households: The Case of Sofi District of Harari Region,
Ethiopia
Nesreddin Abdurehman, Jema Haji and Belaineh Legesse
Year: 2014
Abstract: This study evaluated the impact of productive safety net program on the livelihood and
food security of rural households of Sofi district, Harari people national regional state. Towards
this end, cross-sectional survey data were collected from 160 randomly selected households of
which 80 were program participants and 80 were non-programme participants selected from four
kebeles of the woreda, where the productive safety net program was implemented. Data were
analyzed using descriptive statistics and Propensity Score Matching (PSM model). Results from
descriptive statistics revealed that among programme participants and non-participants, 88.5%
and 50.25% were food secure, respectively. Applying a propensity score matching technique, it
was found that the program has significantly increased participating households‟ calorie intake by
2.99%, the consumption expenditure by 11.38%, the total income by 15.31% and livestock asset
by 31.8% compared to non-participating households. The estimated results also revealed that,
households in the program where more likely to have large dependent families, more engaged
income from off/non-farm activity, less on access to credit, small land size and better access on
agricultural extension, access to aid and irrigation. Finally, physical and biological conservation
measures should be widely incorporated, integrated formal and informal education as a one
component of PSNP, access to credit service for the purchase of agricultural inputs and
integrated family planning program implementation were recommended for policy concern.
Keywords: Productive Safety Net; Impact; Livelihood; Food Security; Propensity Score
Matching; Ethiopia
211
211. Impact of Artificial Insemination of Dairy Cows on the Livelihoods of
Smallholder Households: The Case of Haramaya District, Ethiopia
Raey Yohannes, Belaineh Legesse and Jemma Haji
Year: 2014
Abstract: Artificial insemination (AI) is widely used for improvement of cattle production in
developed countries. Its use in developing countries is less widespread and the results obtained
are far from satisfactory. If the major constraints are identified and resolved, this technology
would contribute to an increased production of milk, leading to better livelihoods. This study
evaluates the ex-post impact of dairy cows AI service on the livelihood of smallholder
households of Haramaya district. Moreover, the study has assessed factors that affect usage of AI
service. For this study both artificial insemination user and non-user households were drawn and
cross-sectional survey data were collected from 200 households. Out of 11 variables included in
the model, four variables are identified as factors affecting usage of AI service. These are
timeliness of AI service, Access to grazing land, perception about the importance of AI and
having mobile phone. Propensity score matching method was employed to analyze the impact of
AI interventions on the livelihood of smallholder households of the study area. Milk income,
livestock income and total household expenditure were used as an indicators or outcome
variables of livelihoods of smallholder households. This method was checked for covariate
balancing with a standardized bias, t-ratio, and joint significance level tests. Furthermore,
sensitivity analysis of the estimated participation effect to unobserved selection bias was checked.
Using the service has resulted in a statistically significant impact on milk income of the treated
households. AI intervention has no significant impact on remaining outcome variables livestock
income and household expenditures. The sensitivity analysis shows that the impact result
estimates are insensitive to unobserved selection. Therefore, development interventions should
give emphasis to the improvement of such institutional and farmers behavioral factors to achieve
wider usage of the service and better livelihoods.
Keywords: Artificial Insemination; Livelihoods; Propensity Score Matching
212
212. Climate Change Adaptation Strategies of Agro-Pastoral Households:
The Case of Babile Woreda, Somali Regional State, Ethiopia
Redwan Getachew, Endrias Geta and Jema Haji
Year: 2014
Abstract: This study was conducted to identify the most commonly used major adaptation
strategies that agro-pastoral households pursue among set of options to withstand the effects of
climate change and factors that affect choice of adaptation strategies to climate change in Babile
Woreda of Somali Regional State, Ethiopia. For this study, both primary and secondary data were
used. Primary data were collected from a randomly selected 130 sample households interviewed
through a semi-structured questionnaire, key informants‟ interview and focus group discussion.
Descriptive statistics and econometric methods were used to analyze the data. Descriptive results
show that of the total sample households, 33.85%, 16.15%, 18.46%, 31.54% mainly adapt to
climate change effect, among the set of options as the most commonly used major adaptation
strategy; through adjusting planting date and/or adopting early maturing drought resistant crop
varieties, herd diversification, herd mobility and off/non-farm activities, respectively. Multinomial
logistic regression model was employed to identify factors influencing households‟ choice of the
most commonly used adaptation strategy to climate change. Results show that the probability to
choose among the different adaptation strategies compared to the base category (Adjusting
planting date/adoption of early maturing drought tolerant crop varieties) was significantly
affected by age of the household head, dependency ratio, distance to the nearest market, access to
extension service, credit, climate change awareness, livestock holding and farm income.
Therefore, policy aiming at increasing agro-pastoralists‟ access to improved/hybrid drought
tolerant seeds, developing and improving infrastructures, climate change awareness creation,
expansion of microfinance institutions for microcredit facilities and improving extension system
supported by improved crop varieties and livestock species suitable to the ecosystem through
strengthening the local research centers are recommended to accelerate the adoption of climate
change adaptation strategies.
Keywords: Climate Change; Agro-Pastoralist; Adaptation; Somali Regional State; Babile
213
213. Market Chain Analysis of Honey in Sodo Zuria District, Southern
Ethiopia
Samuel Sarka Sanna and Degye Goshu
Year: 2014
Abstract: The analysis of marketing performance of honey plays an important role in future
beekeeping development plan. This study aimed at analyzing the market chain of honey in Sodo
Zuria district, Wolaita Zone of Southern Nations, Nationalities and Peoples Regional State with
the specific objectives of assessing the honey marketing channels, structure-conduct-performance
of honey marketing and factors affecting volume of honey marketed in the study area. The study
used both primary and secondary data. A total of 197 honey producing sample households from
six honey producing kebeles of the district and 44 honey traders from four honey marketing
town were surveyed. The structure, conduct and performance approach was used to evaluate
honey market chain. In addition, a multiple linear regression model was employed to identify
factors that determine volume of honey marketed by the sample households. The structure of the
market indicated that licensing procedure, honey trade experience and access to credit were
barriers to enter into honey trade. Analysis of marketing margins revealed that processors (tejhouses) received the highest (50%) marketing margin, rural assemblers (15.56%) and retailers
(24%) received the least marketing margins in honey trade business. The econometric model
results indicated that volume of honey marketed was significantly affected by age of the
household head, family size, beekeeping training, previous year price, literacy status of household
heads, agro-ecology, livestock holding, and number of modern hives used. Improving access to
services, providing training and education to household head and promoting family planning
need to be taken inconsideration to strengthen development of the sub-sector.
Keywords: Market Chain; Honey; Multiple Linear Regression
214
214. Climate Change Adaptation Strategies of Smallholder Farmers: The
Case of Assosa District of Benishangul Gumuz Regional State, Western
Ethiopia
Seid Sani Asfir, Jema Haji and Degye Goshu
Year: 2014
Abstract: Climate change affects agriculture and agriculture also affects climate change. Its
impact on agricultural activities in developing countries has been increasing. Higher temperature
and decreasing precipitation levels caused by climate change depresses crop yields. This is
particularly true in low-income countries where adaptive capacities are perceived to be low. This
could be due to their weak institutional capacity, limited engagement in environmental and
adaptation issues, and lack of validation of local knowledge. A better understanding of the local
dimensions of adaptation is therefore essential to develop appropriate adaptation measures that
can mitigate these adverse consequences. The main aim of this study was to identify farmers‟
adaptation strategies to climate change in the Assosa district of Benishangul Gumuz Regional
State, western Ethiopia severely affected by climate change stresses. Both primary and secondary
data sources were used for the study. Primary data were collected from a randomly selected 140
sample households through interview and focus group discussion. Relevant secondary data were
also obtained from NMSA, other governmental offices, internet and reports. Descriptive
statistics were used to provide insights into farmers‟ perception of climate change, types of
adaptation strategies to climate change and to explain factors affecting farm level climate change
adaptation strategies. Multivariate probit model was estimated to identify the factors influencing
households‟ use of adaptation strategies to climate change. The result of multivariate probit
model shows that the likelihood of households to adopt irrigation, improved varieties of crops,
adjust planting date, crop diversification and soil conservation practices were 52.3%, 45.8%,
49.5%, 46.9% and 34.1%, respectively. The result also shows that the joint probability of using all
adaptation strategies was only 1.5% and the joint probability of failure to adopt all of the
adaptation strategies was 3.5%. Multivariate probit model results also confirm that sex, literacy
status, farming experience, family size, land holding, access to credit, access to media, extension
contact, farmer to farmer extension, farm income, off/non-farm income, livestock ownership,
market distance and access to training have a statistically significant impact on climate adaptation
strategies. Therefore, future policy should focus on awareness creation on climate change
through different sources such as mass media and extension, facilitating the availability of credit,
enhancing research on use of new crop varieties that are more suited to drier conditions.
Moreover, encouraging informal social net-works and introducing adaptive technologies to drier
condition from other areas with similar socio-economic and environmental settings enhance the
adaptive capacity of smallholder farmers.
Keywords: Climate Change; Adaptation Strategies; Multivariate Probit
215
215. Market Chain Analysis of Coffee Indale District of Southern Ethiopia
Wendmagegn Belete Debele and Jema Haji
Year: 2014
Abstract: This study was initiated to analyze coffee market chains in Dale district, Sidama zone
of Southern Nations Nationalities and peoples‟ region. The objectives of the study were to
identify coffee marketing channels, to analyze structure, conduct and performance of coffee
market and identify the determinants of household coffee supply in Dale district. Data were
generated by individual interview using pre-tested semi-structured questionnaires. Secondary data
were collected by reviewing documents from different sources, so as to back up the primary data.
Multiple linear regression econometric model was used to analyze the determinants of coffee
market supply. The channel analysis of the commodity identified five marketing routes. The main
market participants for coffee marketing of the district were coffee producers, coffee producer
cooperatives, coffee producer‟s cooperatives union, coffee collectors, retailers, wholesalers, ECX
and consumers. Result from analysis of degree of market concentration in Yirgalem and Hawassa
towns indicates that the coffee markets were characterized as strongly oligopolistic markets with
the buyers‟ concentration values 69% and 65.3%, respectively. The coffee marketing performance
result reveals that 36.9% and 34.13% of total gross marketing margin were added to coffee price
in channel I and channel II respectively. Out of the total gross marketing margin, 9.6% was
captured by coffee collectors, while 27.3% goes to wholesalers in channel I and out of the total
gross marketing margin in channel II, 34.13% goes to wholesalers. The results of econometric
analysis using OLS model shows that sex of the household head, education level of the
household head, coffee productivity, extension contact, price of coffee in 2011/12 E.C., and
access to market information were found to be the significant variables influencing coffee
marketable supply of the district positively. Whereas, distance to the nearest market and
households non-farm income were found to be the significant variables affecting coffee market
supply negatively. Major problems of production and marketing in the study area were coffee
disease, traders market power, lack of packing materials, poor infrastructure, poor marketing
information, lack of drying bed, presence of informal traders, land scarcity, lack of credit service,
lack of pesticides, lack of coffee seedlings and poor extension services. Based on the study
results, policy interventions required to raise marketable supply of coffee in the study area are
recommended.
Keywords: Market Chain; Coffee; Multiple Regression; Marketing Channels; Structure;
Conduct and Performance
216