Entrepreneurship Drivers in the Non-farming Sector: Rural-Urban Contrast

Using data from 5262 households, we explored entrepreneurial drivers in the non-farm sector. Marital status, religion, ethnicity, education type and the size of the household plays different roles for rural and urban households’ engagement in non-farm enterprises. In both urban and rural areas, household size is a driver to non-farm enterprise engagement. Shocks in the household such as illness drive rural households to engage in the non-farm enterprise sector. However, drought restrains the participation of rural households in nonfarm businesses. Divorced households engage more in enterprises. Unmarried households, however, witnessed less involvement in the sector and it is significant for rural households. Urban illiteracy and rural primary education significantly determine households’ involvement in the non-formal sectors. Moreover, the study identified a non-linear relationship between age and enterprise engagement where engagement in non-farm enterprises increases with age up to 58 years and then declines and it is significant for urban households. In the case of urban households, male-headed households are driven to non-farm engagement. Understanding variations in marital status, socio-economic make-ups, entrepreneurial training, and education can be plausible areas of intervention to adequately understand both the entrepreneurial ecosystem and strengthen the non-farming entrepreneurial sector livelihood

The Contribution of Ethiopia Commodity Exchange for Promoting Exports of Agricultural Products

Commodity exchange can play a major role for agricultural development as an instrument to bring efficient agricultural market by providing lower transaction cost, efficient and transparent means for price discovery, managing risks related with prices volatility and provide a forum for exchanging information about supply and demand condition. The objectives of the present study are to examine the contributions of ECX for exports, to identify the respective gainers and losers in using ECX for exporting agricultural products, to assess the effect of ECX for generating foreign exchange and to address the feeling of exporters towards the contribution of ECX. The primary data were collected through distributing questionnaire for exporters and interview with executive officer of the company, while secondary data collected from journals, market bulletin, articles and company website. In order to achieve the stated objectives, the focus of the study was on the contribution of ECX in providing market information, grade and standard, contract enforcement, storage, ordering the market, and price discovery. The study employed cross sectional survey design. Even though 148 structured questionnaires distributed to the exporters, only 84.5% of the questionnaires are returned. The sampling design of the study was census survey. Moreover, semi-structured interview conducted with executive officer of the company. Data collected through questionnaire were analyzed quantitatively using descriptive statistics with the help of SPSS version 16; whereas data collected through interview were analyzed qualitatively. The research result indicated that the grading and sampling system of the company has a problem of bias, lack of knowledge and equipment; there is distrust between the seller, buyer and the exchange; there is high penalty cost imposed by ECX for delaying of withdrawing the commodities on time; problem of intolerable fee for membership seat and also there is a problem of dispute resolution mechanism. Finally, to enhance complete contribution to the exporters the researcher recommended to make grading free from corruption and bias by avoiding the problematic behavior through training and behavioral change of its employees, providing fair  membership seat price, avoidance of  imposing exaggerated penalty cost and creating acceptable dispute resolution mechanism to the exporters. Keywords: Exchange (ECX), contribution, Agricultural Products, Promoting, export

Evaluation of Analgesic Activities of 80% Methanol Leaf Extract of Solanum incanum L. (Solanaceae) in Mice

Solanum incanum Linnaeus is traditionally used for treatment of pain and other ailments. But there is no scientific evidence on its analgesic activity to-date. Thus the aim of this study was to evaluate the analgesic activities of 80% methanol leaf extract of S.incanum in mice. After extraction of the crude using 80% methanol, S.incanum extract was evaluated for analgesic activity in hot plate test and acetic-acid induced writhing test. Mice were randomly assigned to different groups and treated with 100, 200 and 400 mg/kg doses of the extract and reference control groups (morphine 5mg/kg and Aspirin 150 mg/kg) and negative control were treated with 2% tween 80. In the hot-plate method, all doses of the extract and the standard drug of morphine prolonged the reaction time significantly (p<0.05, or p<0.01 or p<0.001) as compared to negative control throughout the observation period. Prolongation of reaction time produced by 100mg/kg of the extract was lower (p<0.01) compared to morphine, 200mg/kg, and 400mg/kg at 90 and 120 min. However, middle and higher dose exerts comparable result at 30, 60 and 90and 120 min in relation to the standard drug. In addition 80% methanol extract of S.incanum showed a significant protection (p<0.05) against acetic acid induced writhing compared to negative control. The extract produced a significant analgesic activity with 55.6, 38.2 and 44.8% inhibition of number of writhing at 100, 200 and 400 mg/kg dose levels, respectively. In conclusion, this study clearly suggests that 80% methanol leaf extract of S. incanum is endowed with central and peripheral analgesic activity. Hence, the findings collectively uphold the traditional use of the plant for pain treatment. Keywords: Analgesic, S.incanum , Hot plate, Acetic aci

Trader-supplier Coordination in the Agrifood Supply Chains in Northern Ethiopia

There exists a huge agrifood potential in Ethiopia. However, the country's agrifood supply chains are underdeveloped to deliver quality supply to traders and supplement household livelihoods from the sector. The key factors that determine the proper functioning of supplier-trader chains were not rigorously investigated, at least in the case study area. This paper aims at examining the key determinants in choosing vertical coordination for agrifood products in Tigray, Northern Ethiopia. Structured questionnaires were administered to 247 traders in 10 towns in Tigray. Probit model was employed to identify the key determinants of vertical coordination. Model results show that market information, product characteristics, firm characteristics, and product quality were found significant factors in determining the adoption of vertical coordination. An interesting finding is that traders tend to vertically coordinate so as to get credit from suppliers. Based on our findings we suggest that strengthening quality assurance and contract enforcement institutions appears to be an important intervention area to improve the agrifood chain in the study area. Moreover, providing financial support to encourage the private sector to operate in agro-processing is among the efforts that need to be focused so that it facilitates the rural development process in the region.vertical coordination, trader, supplier, agrifood, supply chain, Probit Model, Agribusiness,

ERRATIC VIEWS AND POLICY INCONSISTENCY ON PRIVATISATION MODALITIES IN ETHIOPIA: IMPLICATIONS ON THE PERFORMANCE OF FIRMS IN THE INTERNATIONAL MARKET A SYSTEMATIC REVIEW

Background and objectives: Since 1991, several state-owned enterprises in distinct categories were transferred to the private sector under the privatisation policy in Ethiopia. The process and its modalities vary. The notion behind the implementation was to transfer those inefficient public-owned firms to the private sector with an expectation of improving defects. But, privatisation processes are neither a one-time incidence nor an immediate action. Privatisation processes are inter-linked with various macro and microeconomic and sometimes socio-political policies, and reforms. In this paper, privatisation modalities, inconsistencies, and arguments regarding the Ethiopian privatisation process are analysed. Study Design / Material and Methods: Using a systematic literature review process, 50 papers were found and extracted in a methodical manner from PubMed, Ecobiz, and Google Scholar Databases. The analysis was undertaken following systematic categories after taking heterogeneity articles on Ethiopia’s privatisation process into consideration. Results: The government encompasses large public-owned enterprises in the privatisation process; however, the privatisation modalities and timing are still a point of controversy among scholars. The effective privatisation process required institutional development, and the government’s promises were put to the test. The performance of enterprises was significantly impacted by legal and policy frameworks. The legal framework and consistently unstable nature of Ethiopia’s privatisation history have been observed. It has been observed that the legal framework and consistently unstable nature of Ethiopia’s privatisation history. Practical implications: This study has a practical contribution and input by giving insights for researchers, practitioners and policy makers for providing alternative privatisation modalities, appropriate for the Ethiopian context. Conclusion and Summary: The mode of privatisation must be pre-examined and carefully selected by considering important success factors including public interest, objectives of endeavour, and the sustainability of firms. The techniques must consider the nature and characteristics of the firms studied, clarity and well-prepared privatisation options

Smallholders’ Access to Agricultural Markets and Technology, Role of Agricultural Cooperatives and Contracts in Africa: Evidence from Dairy farmers in Ethiopia

Smallholders in Ethiopia are constrained in their access to markets, input and technology. This paper investigates the role of cooperatives and contracts in promoting smallholders’ access to markets and technology with particular reference to smallholder dairy farmers. A rural household survey was administered for randomly selected dairy farmers in Northern Ethiopia. The descriptive statistics reveal that the distance to market and the distance to rural development offices where technology and extension services are provided, differ for cooperative and contracting dairy farmers. Poor transport infrastructure and lower household wealth drive dairy farmers to cooperative engagement. The result suggests that cooperatives and contracts promote market access, credit, small-scale dairy processing technology and that cooperatives specifically attract resource-poor households. Policy makers and development partners are recommended to strengthen cooperative societies and contract arrangements

Agricultural Marketing and Rural Incomes: Drivers and Impacts of Vertical Coordination in Food Supply Chains in Tigray, Northern Ethiopia

The agricultural marketing system in the Northern Highlands of Ethiopia is not performing well, which defeats the large potential for agriculture-based income growth in the region. Absence ofinstitutions to control quality, enforce contracts and provide market information exposes farmers to high transaction costs and limits their market participation. Moreover, the dominant traditional spot market transactions fail to offer standardized products and result in information asymmetry which limitsthe free flow of goods in the market. The traditional spot market transactions also fail to supply credit, input and technology to resource constrained smallholders. Buyers face high risk of quality variability, adulteration and high searching costs when procuring agricultural produce in traditional spotmarkets from a large number of smallholder producers. Theories and empirical studies suggest that better coordination in food supply chains, e.g.through contracts and cooperatives, can address these challenges faced by smallholder farmers (producers) and buyers. This has been extensively documented for modern supply chains involving international buyers and high-value produce. Such chains are often coordinated through contract farmingand these contracts have been shown to be beneficial for smallholder farmers.Empirical studies on supply chains have paid little attention to local food supply chains in developing countries and to other coordination mechanisms beyond contract farming. This thesis aims at contributing to filling that gap in the empiricalagricultural economics literature by examining alternative coordinationmechanisms, contract farming and cooperative marketing in the honey and dairysupply chains in Northern Ethiopia. In the first part (chapter 2), the keydrivers to engage in contracts and cooperatives are analyzed, from theproducers as well as the buyers perspective. In the second part (chapters 3 and 4), the impact of participating incontracts and cooperatives on agricultural productivity and producers incomeis assessed. These empirical analyses are based on data from structured surveysamong 827 farming households (412 honey producers and 415 dairy farmers), and193 buyers (103 honey and 90 milk buyers) in Northern Ethiopia. The driving forces for vertical coordination arrangements are investigated inthe first part. First, the key determinants of producers participation in contracts and cooperatives are analyzed through descriptive statistics and multinomial logit regression models. Second, the key drivers for coordination from the buyers side are analyzed using descriptive statistics and Probit models. The descriptive statistics indicate that more than 80 percent of honey producers and buyers rely on spot market transactions. More than 45 percent of dairy producers are found to engage in cooperatives for marketing their produce while nearly 20 percent participate in contracts. More than 75 percent of the dairy buyers rely on contracts. A possible explanation for the observed differences in vertical coordination between the dairy and the honey sector is that dairy products are more perishable, more frequently transacted and vulnerable to adulteration and therefore require tighter supply chain coordination. The results of the multinomial logit models indicate that the need for a secure market drivessmallholder dairy farmers to contracts while the need to acquire better technology drives them to participate in cooperatives. The perishability of milk and the absence of individual investments in processing infrastructure and technology drive dairy farmers to form cooperatives to jointly manage post-harvest storage, cooling and processing of milk. Dairy farmers located further from the market are more likely to contract while farmers closer to the market are more likely to marketmilk through cooperatives. Farmers proximity to ARDO, which facilitates the access to credit, inputs and extension services for constrained households, is found to reduce the likelihood of contracting. Larger farmers, with more land and livestock, have a higher propensity to contract and a lower propensity to engage in cooperatives. Larger farms likely supply larger volumes to the market, which makes it easier to make contractual arrangements with buyers who are interested in large and consistent volumes. Smaller famers, on the other hand, might be excluded from contracting directly with buyers because they supply small volumes, and therefore rely on cooperatives to collectively market and increase sales volumes and bargaining power. Resource poor farmers may also be driven to cooperatives because of their desire to get credit andinput support from the government and non-governmental organizations which collaborate with cooperatives to distribute subsidized inputs and technical support. Buyers also stimulate poor smallholders to collectively supply produce through cooperatives so as to minimize searching and inspection costs. Honey producers participation in contracting depends on both market and actor characteristics which specifically include distance tothe market, administrative participation of the household head, land size, number of beehives and the age of the household head. Honey producers propensity to engage in cooperatives is influenced by distance to market, distance to an asphalt road, and resource constraints. Moreover, membership in a farmer s association is found to have a positive influence on cooperative engagement.The results of the Probit models indicate that it is mainly the search for quality and large volumes that drives buyers to contract with suppliers. Also buyers are faced with a lack of access to market information. More specifically, we find that buyers choice of contractual engagement is significantly influenced by quality differentiation, information asymmetry, firm size, age, sex and experience of the buyer. Inthe second part, the impact of vertical coordination in the dairy and honey sector on production and household income is investigated. The impact analysis was done using regression on observables, regression on propensity scores and propensity score matching techniques. The results from the three models show a positive contribution of contract participation to honey production, hive productivity and to the welfare of honey producing households. More specifically, we find that honey contracting increases beehive productivity with 37 percent, the volume of honey production with 76 percent, the income from honey sales with 85 percent, and total household income with 28 percent. However, the study does not get strong evidence regarding cooperatives impact on honey production and income of honey producers. Findings differ for the dairy sector. Cooperative engagement is found to significantly increase cow productivity, milk production and the welfare of dairy farmers. More specifically, results indicate that cooperative membership increases the production of milk per cow with 32 percent, the total milk production with 62 percent, the revenues from milk sales with 60 percent, and total household income with 48 percent. Regardless of the widespread use of contracts, the study does not find an effect of contract farming on milk production and dairy farmers welfare. To improve and upgrade the dairy and honey supply chains, policies should help improve the shelf life of the perishable products either by facilitating credit and technology access or by expanding private sectorparticipation in the dairy and honey processing firms and related agro-industries and link them with producers. Establishment and strengthening of information provision, standardizing and enforcement institutions will be actions to be taken to improve the marketing system. Establishment and enhancement of institutions for collective action and smallholder participation is a key strategy to improve the contribution of constrained dairy and honey producers in the country s economy. Additional effort is also required to improve the management practice of the cooperatives.<w:latentstyles deflockedstate="false" defunhidewhenused="true"  <w:lsdexception="" locked="false" priority="0" semihidden="false"  status: publishe

Fish Value Chain and Its Impact on Rural Households’ Income: Lessons Learned from Northern Ethiopia

These days, one of the global challenges is the growing demand for food. To be more specific, seafood bases play a key role in filling the nutritional requirements of human beings. In Africa (Ethiopia) the public expenses to improve productive capacity in aquatic food are increasing. Additionally, the expenses in dams and in fishers&rsquo; capacity building have increased households&rsquo; engagement in the fishery sector in Ethiopia. Cooperatives&rsquo; productive capacity has been strengthened by the government and other non-government organizations with the supply of fishing boats, refrigerators, fish nets and other office supplies. However, the effect of such public expenses in bringing changes in the households&rsquo; livelihood and welfare has never been assessed in this study area. This paper aims to investigate what motivates the households to fish and assess the effect of fisheries on the households&rsquo; livelihood and welfare. A structured survey consisting of 313 rural households was administered using trained enumerators in two kebeles located close to the Tekeze dam, Northern Ethiopia. The result indicates that socioeconomic characteristics, such as age (young), sex, education, and active family size were driving the households to fishing. Access to market and access to support are driving farmers to fisheries. There is a significant difference in fishing households&rsquo; income which is higher than non-fishing households. The results also indicate that there are lesser income inequalities among fishery households operating in cooperatives compared to private fishery households