Cost-Benefit Analysis of Small-Scale Onion and Tomato Farming in Melkassa Area: Central Rift Valley of Ethiopia (original) (raw)
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2010
This is to certify that this thesis entitled "Economic Analysis of Smallholder Vegetable Production in Tigary, Ethiopia. A Case of IPMS's Alamata Wereda Pilot learning Project" submitted in partial fulfillment of the requirements for the award of MSC in Economics (Development Policy Analysis) to the college of Business and Economics, Mekelle University, through the department of Economics, done by Mr Gebremeskel Berhane, ID.No FBE/PR0076/00 is an authentic work carried by him/her under my guidance. The matter embodied in this project work has not been submitted earlier for award of any degree or diploma to the best of my knowledge and belief. Name of the student: Gebremeskel Brhane Tesfay. Signature and date ______________ Name of supervisors: 1 Haile Tesfay(PhD). Signature and date ______________ 2. Seid Hasen (MSc).
Journal of Development and Agricultural Economics, 2018
Onion crop is one of the most important commercialized horticultural crops among smallholder farmers because they derive benefits such as income, source of food, health care and rural employment. In developing countries like Ethiopia, most smallholder farmers are characterized by poor market participation due to lack of market information, price volatility related to seasonality of supply, and poor performance of the vegetable market. This study has identified household level determinants of the output side commercialization decision and level of commercialization in onion crops in Fogera district of Amhara Region in Northwestern Ethiopia. A stratified random sampling technique was employed to select 150 onion producers from four sample kebeles in the study area. Both descriptive and econometric methods were used to analyze the data. Heckman's two step sample selection model was applied to analyze the determinants of the commercialization decision and level of commercialization in the onion market. The first-stage probit model estimation results revealed that age of household head, literacy status, distance to nearest urban center, access to training, onion yield, access to extension service and contract marketing affected probability of market participation. Second-stage Heckman selection estimation indicated that livestock holding, literacy status, land allotted to onion, non/off farm income, onion yield, ownership of communication device, contract marketing, agro ecology and marketing group significantly determined volume of onion supply. The results also showed that most of the factors determining decision of participation in onion farm also determine level of participation, suggesting that the two decisions were made simultaneously by onion producers. The study recommends that local and regional government strength formal and informal education, strengthening the existing onion production system, encouraging the use of labour saving technologies, improving extension system, strengthening the existing rural-telecom and rural-urban infrastructure development, and improving crop-livestock production.
Journal of Marketing and Consumer Research, 2021
This study focuses on analysing the factors affecting the decision and the level of onion output market participation among smallholder onion producers at Fentale district. Samples of 180 onion producer households were selected through multi-stage random sampling from three kebeles of Fentale district. The study employed both quantitative and qualitative methods of data collection. Quantitative data collected from sample households were analysed by descriptive and double hurdle model while qualitative analysed by narration. The result from the 1 st phase of the double hurdle, probit regression, revealed that sex of household head, onion farming experience, total farm holding, farm allocated for onion production, credit access, access to extension and market information were statistically significant and influence households onion market participation decision. The finding from the 2 nd phase of the hurdle model, truncated regression, show the age of household head, sex of household head, farm allocated to onion, irrigation access, number of oxen owned and distance to the nearest market were variables influencing smallholder onion market participation level and statistically significant. Finally it is recommended that the Government organizations and other responsible bodies should ensure the equal distribution of irrigation water for both upper and lower streams, strengthen inputs supply chains, and strengthen producers' cooperation.
Developing Country Studies, 2021
This study analyzed value chain analysis of onion market in south Bench Woreda. The data used for the study were obtained from 118 randomly selected samples of households and 65 sample of trader in the study area. The data for the study was collected from both primary and secondary sources. For the primary data collection, questionnaires was designed and pre-tested based on the objective of the study in the study area. The questionnaires schedule was tested at the farm level on 5 randomly selected farm households. The study was employed both descriptive and econometric data analysis methods. Cobb-Douglas production function model was employed to analyze the determinants of onion production supplied to the market by onion producers. Results of econometric model showed that quantity of fertilizer utilized, distance from the nearest market, family size of house hold head, educational level of house hold head, farming experience and Credit access were significantly and positively determined the quantity of onion supplied to the market. The results suggest that these significant variable need to be promoted to boost the amount of the onion market supply. In order to increase the productivity of onion there is need of public, private, research center and farmer themselves working together so as to increase access and disease resistance seed verity.
The purpose of this study is to understand the extent and determinants of smallholders’ technical efficiency under drip and furrow irrigation in dry land agriculture. Stochastic production frontier model with Cobb-Douglas functional form was fitted to a random sample of drip and furrow irrigated plots to understand farmers’ technical efficiencies in onion production. The study was based on cross-sectional data collected from 200 farm households during the 2012 production year; 100 households from each type of irrigation schemes. The test result indicated that there was technical inefficiency in both irrigation schemes and the relative deviation from the frontier due to inefficiency which was about 26.31%. The estimated mean level of technical efficiency of the traditional diversion furrow and modern drip irrigation scheme users were about 78.60 and 82.59%, respectively. The overall mean technical efficiency of the irrigation schemes was 73.69% which indicated that the improvement in technical efficiency was still possible with the current available technology and without increasing the input level. The result also revealed that land related factors such as land size, land ownership, and land fragmentation explain much of the technical inefficiencies in addition to other socio-economic characteristics of farm households. Total land size is inversely related to the technical efficiency. Moreover, it was also observed that land size had negative effect on onion yield, which signified the theory of inverse relationship between farm size and productivity in onion production. All these imply that labor market was still imperfect that caused households to rely on family labor. Farmers were more efficient on owned plots than leased (in the form of sharecropping and fixed rent) plots. Tenure insecurity played significant role for farmers to adopt the available technologies and maximize production on irrigated farms. Likewise, land fragmentation has showed positive effect on technical inefficiency, calling for the need to think about land consolidation at least within farms. Hence, it can be concluded that onion production could further be increased by introducing improved water application technologies like drip and sprinkler suitable for small farmers with appropriate policies aimed at creating tenure security, perfecting labor market and consolidating fragmented plots. Key words: Technical efficiency, stochastic frontier analysis, inefficiency, irrigation, drip, furrow, Kobo, Northeast Ethiopia.
Economic Analysis of the Production of Root-vegetables by Small-Scale Farmers in Mbulu District
Tanzanian Economic Review
The production of vegetables supports farmer’s food security and income generation. Thispaper seeks to analyse the production of root-vegetables by small-scale farmers in MbuluDistrict, Tanzania. The paper applied a cross-section design and a two-stage sampling toobtain 120 farmers producing either carrots or Irish potatoes. Results from the CobbDouglas production function showed that farm area and inputs cost were significantfactors that influenced production of carrots; while farm area, labour, inputs cost, andequipment cost were significant factors that influenced the production of potatoes.Furthermore, results from multiple regression showed that income of root-vegetablesgrowers decreased significantly with the production of potatoes compared to carrots; butincreased significantly with farm area. The findings highlight the need for the Ministryresponsible for Agriculture to offer agricultural extension services regarding optimalproduction of root-vegetables for sustainable incre...
International Journal of Agricultural Economics, 2021
Onion plays a crucial role in enhancing food security and generates income for the smallholder farmers of Ethiopia. This paper was attempted to analyze the determinants of onion supplied to the market in Gemechis District, Oromia Region of Ethiopia. Data for the study were collected from both primary and secondary sources. The primary data were collected by household survey using a pre-tested structured questionnaire and key informant interview using checklists. The data were collected from 176 farmers. The collected data was analyzed using both descriptive statistics and econometric model. The descriptive statistics was used to analyze the socioeconomic characteristics of smallholder farmers and econometric model was used to determine the factors affecting onion supplied to the market. The results of two-stage least square regression model showed that quantity of onion supplied to the market was significantly and positively influenced by the endogenous quantity of onion produced. In addition, distance from nearest market, non/off farming income, land allocated and lagged price significantly affect the onion marketed. The study findings suggest the need to improve rural road infrastructure, intensification of land to compensate through cash crop production and efficient utilization of the existing limited farm land and encourage investment on off/non-farm incomes as well as onion production.
Factors Affecting Tomato Productivity in Western Oromia, Ethiopia: Evidence from Smallholder Farmers
International Journal on Food, Agriculture and Natural Resources, 2022
Tomato is one of the most important fruit vegetable crops in Ethiopia supporting the livelihood and improving the economic life of many farmers. However, the productivity of the crop is low due to poor production management practices, limitations in the availability of pesticides and fungicides, limitations to access information, market fluctuation, and shelf life of the crop. The study was undertaken in western Oromia to understand major factors affecting the tomato productivity of smallholder farmers. It was based on the cross-sectional data collected from 135 randomly selected farmers during the 2019/20 cropping season. The data were analyzed using descriptive statistics and an econometric model. The result depicted that the productivity of tomatoes was significantly affected by inputs like labor, oxen power, fertilizer, and pesticides. From the OLS result, gender, education, family size, off/non-farm activities, farm experience, livestock holding, extension access, credit access, and market/traders information positively affected tomato productivity, while age and field distance was affected negatively. The variety and biotic factors affected the tomato productivity of smallholder farmers positively and negatively, respectively. The findings will be helpful for tomato producers, private companies, and other sectors that participated in crop production by solving the above important variables.
African Journal of Agricultural Research, 2015
This study investigated the determinants of technical, allocative and economic efficiencies among small-scale onion farmers in North Wollo zone of Amhara National Regional State, Ethiopia. Structured questionnaires were used to collect data from 200 respondents randomly selected from designated locations in the study area. A stochastic production frontier function was fitted to the sample households. The findings revealed that land related factors such as land distance, ownership, and fragmentation explained much of the technical inefficiencies in addition to other socioeconomic characteristics of farm households (age, market access, training access, years of experience in onion production, farm income, responsibility and field visit) were found to be significant at different levels of significance for technical efficiency. The variables that explained allocative efficiency were plot distance, market access, sources of irrigation water, extension visit, farm income and field visit. Major determinants for economic efficiency were age of the household, plot distance, fertility, source of irrigation water, extension visit, experience in onion production, land fragmentation and farm income. It is therefore suggested that any development intervention program through irrigation should consider the aforementioned socioeconomic characteristics and determinants of efficiency for success. Tenure insecurity and land fragmentation also play significant role for farmers to adopt the available technologies and maximize production on irrigated farms. Likewise, it has shown positive effect on production inefficiency, calling for the need to think about policies targeting land consolidation at least with in farms, improving institutional services (extension, market, training, attitude change on credit utilization), soil management options and increased investment in irrigation services could jointly contribute to the improvement in efficiency of onion farmers in the study area.
Agriculture Forestry and Fisheries, 2014
In Ethiopia, vegetable crops are produced in different agro-ecological zones through commercial as well as smallholder farmers both as a source of income and food. However, due to perishable nature and biological nature of production process, vegetables productions are risky investment activities. In this context, risk perceptions play a key role in the production and investment behaviour of farmers in vegetable production decisions. However, in Kombolcha Woreda, only limited attention has been paid to understand the producers' risk perceptions in vegetable production. Therefore, in this study, analysis of the major sources of risks in vegetable production, on the basis of farmers' perceptions, was conducted. For the study, a two-stage sampling technique was used to select 130 sample households from six sample kebeles. Primary data collected through structured questionnaire and secondary data sources were used. A Likert scale, based on farmers' perception, was used to rank the various sources of vegetable production risks. The mean scores results, derived based on Likert scales, indicated that production and market risks were perceived to be the most important risk sources. Hence, price support mechanisms and inputs subsidy, education and training on formal risk management mechanisms (production contract, marketing contract, etc.); drought tolerant, and pest/disease resistant vegetable varieties and cultural and biological methods, and chemicals should be used to control such risks.