The impact of saving and credit cooperatives on food security in the West Amhara Region of Ethiopia

In rural Ethiopia, among other things, lack of adequate financial service is considered as the basic problem to alleviate rural poverty and to solve the problem of food insecurity. Commercial banks are restricted to urban centres. Providing rural financial service through RUSACCO to the poor has been proposed as a tool for economic development and for achieving food security. Evidence from research in this regard has been so far scanty, especially in rural Ethiopia. The aims of this study are to analyze the determinants of membership, to identify socioeconomic and demographic factors that influence members’ participation in RUSACCOs and to quantify the impact of RUSACCOs on member households’ food security. The study was conducted in two purposely selected woredas in the Amhara region one from food insecure (Lay Gayint woreda) and the other from food secure (Dejen woreda). Six RUSACCOs were selected randomly from these two woredas. Both qualitative and quantitative data were collected. Key informant interviews, focus group discussions and survey techniques were used to collect primary data. Collected data was then analyzed using mixed methods depending on the nature of data. For quantitative data analysis appropriate statistical models were used. The study result reveals that the number of members in each RUSACCO is very small. However, the majority of non-member respondents are willing to join RUSACCO. Lack of information about the benefits of RUSACCO membership is the main problem why many rural poor do not join RUSACCOs. Members participate in different aspects of the cooperatives, starting from attending general assembly up to board membership. They also participate actively in saving and borrowing activities of RUSACCO. The majority of the respondents believe the RUSACCO is a vital instrument in combating food insecurity. The empirical findings indicate that gender, marital status, occupation, educational level, participation in local leadership and participation in other income generation means determine the decision of rural poor to join a RUSACCO or not. The amount of saving is determined by household head occupation, farming experience and income level. While age of household head, primary occupation, farming experience, date of membership, annual total consumption expenditure, amount of saving and participation in other income generation activities influence members’ amount of borrowing by RUSACCO members. Finally, the study confirms that RUSACCO participation improves household food security. RUSACCO membership has made positive impact on household total consumption expenditure and food expenditure

April 9, 1948

The Breeze is the student newspaper of James Madison University in Harrisonburg, Virginia

Determinants of Wheat Commercialization among Smallholder Farmers in Debre Elias Woreda, Ethiopia

Even though wheat commercialization has got great emphasis, smallholder farmers face challenges to participate in the wheat market. As a result, understanding the intensity of smallholder farmers’ wheat commercialization and factors affecting wheat commercialization has vital importance to tackle the problem. Consequently, this study was undertaken in northwestern Ethiopia to measure smallholder farmers’ wheat commercialization and analyze factors that hamper wheat commercialization in the study area. For this purpose, a systematic sampling technique has been employed to select a total of 154 smallholder wheat producer household heads. A semistructured questionnaire has been used as a principal primary data collection method. Similarly, the output commercialization index and the beta regression model have been employed for data analysis. The result of the study showed that 23.4%, 51.9%, and 24.7% of smallholder farmers were subsistence, semicommercialized, and commercialized, respectively. The result indicated that the majority of smallholder farmers are semicommercial wheat producers. Moreover, the beta regression result indicated that educational status, number of oxen, land size allocated to wheat production, farming experience in wheat production, extension service, and market distance are major factors for smallholder farmer’s wheat commercialization. Therefore, an attempt to increase smallholder farmers’ wheat commercialization should give special priority for significant explanatory variables

Characterization of fruit production and market performance in northwest Ethiopia

Abstract Background In Ethiopia, fruits pose a significant production and marketing challenge for farm households that significantly affect their farm profitability due to their perishability and unpredictable seasonal pricing. For instance, seasonally, market prices vary depending on the quality and quantity of fruit products available on the market. Stemming from this logical ground, this study is initiated with the objective of characterizing production systems and market performance of fruits in Ethiopia, focusing on apple and mango crops. Methods A random sampling approach was used for producers and snowball sampling for traders when selecting survey participants. A pre-tested survey questionnaire was used for data collection. Descriptive statistics and market margins were used for statistical analysis. Results Post-harvest wastage is preventing farmers from receiving anticipated revenue, implying that approximately 31.8 and 26.1% of the total mango and apple produce was lost, respectively. According to the survey results, there was no measurement consistency among farmers, local collectors, and small retailers. District level collectors received a higher margin share (42.66 and 40.18% of apple and mango, respectively) than other actors in the chain, which was unjustified given their contribution to the market chain. Farmers were comparatively hampered by the market since they earned the lowest share (33.34 and 15.08% of apple and mango, respectively) of consumer prices indicating that the apple and mango market chain performance is poor. As a consequence, these all deter farmers from producing in large quantities, quality, and also uncertainty (fair failure in the mind of farmers) in the marketing of apples and mangoes. Conclusions The awareness of small-scale farmers about most of the agronomic practices including insect pests and diseases were very low. Hence, this study recommended that there is an urgent need from district agricultural offices to improve mango and apple production and marketing systems in the study districts

Cost-benefit analysis of Purdue Improved Crop Storage bags for maize storage among smallholder farmers in northwest Ethiopia

In Ethiopia, post-harvest losses caused by insects are a major challenge in crop production systems. Dried maize is particularly susceptible to insects during storage. Storage loss affects the livelihoods of small-scale farmers leading to food insecurity and loss of income. Therefore, the objective of this study was to assess the cost-benefit analysis of Purdue Improved Crop Storage (PICS) bags on maize storage in Northwest Ethiopia. Cross-sectional data was collected from 392 randomly selected households from both users and non-users of PICS bags, using stratified sampling technique. A structured questionnaire, key informant interviews, focus group discussions, individual in-depth interviews, and field observations were used to gather the data. A cost-benefit analysis was computed to evaluate the viability of PICS bags for maize storage. The binary logistic regression model was used to identify factors that affect the use of PICS bags. Descriptive statistics (percentage, mean, and standard deviation) and inferential statistics (t-test and chi-square test) were employed to analyze the data. The benefit-to-cost ratios (BCRs) of insecticide with both ordinary and PICS bags were greater than one, but PICS bags resulted in more than two-fold higher values as compared to insecticide with ordinary bags. The net present value (NPV) at 15% discount rate in 2018 was 20.73 USD and 25.35 USD per 100 kilograms of stored maize when insecticide was applied to ordinary and PICS bags, respectively. Sensitivity analysis with a 10% cost increment and up to 50% price discount showed that both technologies would still be viable for maize storage. However, PICS bags had higher NPV and BCR; making the technology more viable than insecticide with ordinary bags. The results of binary logit model indicated that educational level, gender, awareness, training, accessibility of the technology, perception of the technology, involvement in leadership activities in the community, and total income of the household positively influenced farmers’ decisions to use PICS bags, whereas price negatively affected the use of the PICS bags. PICS bags had clear economic advantage over insecticide with ordinary bags for maize storage in Northwest Ethiopia. Efforts should be made to disseminate and improve access to PICS bags for strengthening food security and increasing incomes of maize farmers in Northwest Ethiopia

Exploring Drivers of Livelihood Diversification and Its Effect on Adoption of Sustainable Land Management Practices in the Upper Blue Nile Basin, Ethiopia

Land degradation poses a major threat to agricultural production and food security in Ethiopia, and sustainable land management (SLM) is key in dealing with its adverse impacts. This paper examines the covariates that shape rural livelihood diversification and examines their effects on the intensity of adoption of SLM practices. Household-level data were collected in 2017 from 270 households in three drought-prone watersheds located in northwestern Ethiopia. We used the Herfindahl–Simpson diversity index to explore the extent of livelihood diversification. A stochastic dominance ordering was also employed to identify remunerative livelihood activities. A multivariate probit model was employed to estimate the probability of choosing simultaneous livelihood strategies, and an ordered probit model was estimated to examine the effect of livelihood diversification on the adoption intensity of SLM practices. In addition to mixed cropping and livestock production, the production of emerging cash crops (e.g., Acacia decurrens for charcoal, and khat) dominated the overall income generation of the majority of farmers. Stress/shock experience, extent of agricultural intensification, and agro-ecology significantly affected the probability of choosing certain livelihood strategies. Livelihood diversification at the household level was significantly associated with the dependency ratio, market distance, credit access, extension services, membership in community organizations, level of income, and livestock ownership. A greater extent of livelihood diversification had a significant negative effect on adopting a greater number of SLM practices, whereas it had a positive effect on lower SLM adoption intensity. Overall, we found evidence that having greater livelihood diversification could prompt households not to adopt more SLM practices. Livelihood initiatives that focus on increasing shock resilience, access to financial support mechanisms, improving livestock production, and providing quality extension services, while also considering agro-ecological differences, are needed. In addition, development planners should take into account the livelihood portfolios of rural households when trying to implement SLM policies and programs

Determinants of farmers' level of interaction with agricultural extension agencies in northwest Ethiopia

This research identifies critical determinants for interactions between farmers and extension agencies. Cross-sectional farm household-level data from three hundred household heads were collected between September 2019 and March 2020 and triangulated with data from workshops with farmers and extension agents. The data were analyzed using Spearman's correlation coefficient, Kruskal-Wallis analysis of variance and the ordered probit model. Farmers' socio-economic characteristics significantly affect their degree of interaction with extension agencies. Recognition of the determinants of the level of farmers' interactions can inform policymakers about how to formulate and improve the effectiveness of extension programs, enhance information and knowledge dissemination and facilitate development in collaboration with local communities by focusing on a better interaction between farmers and extension agencies. The level of a farmer's interactions is based on a systematic decision-making process. Although personal and demographic characteristics are important, farmers' interaction levels require conducive institutional and household assets, groups/social capital and access to extension agents' contexts. These contexts will differ by household, country and region. Therefore, extension agencies should create and design contextually appropriate strategies for substantial interactions with farmers for the dissemination of farm information. This research is original and valuable in identifying the factors associated with the level of farmers' interactions with extension agencies in the Amhara region, Ethiopia. It also provides a new pathway for operationalizing farmer-oriented agricultural extension policies and strategies and to help agricultural policymakers formulate extension service programs

Agricultural technical efficiency of smallholder farmers in Ethiopia : a stochastic frontier approach

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers' TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers' livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers' output