Optimizing Livelihood and Environmental Benefits from Crop Residues in Smallholder Crop-Livestock Systems in Southern Africa. Series Paper Number 11

Sustainable forms of intensification are needed to address the low and stagnant production of farming systems in southern Africa. More efficient use of crop-livestock interactions can contribute to this; in this context the effective use of crop residues is becoming increasingly important and also contested. Crop residues left on the field for mulching are expected to bring long-term environmental benefits but when fed to livestock they provide farmers with short-term livelihood benefits. This study aims at better understanding the diversity of farming systems and uses of crop residues, in particular the trade-offs in using the residues for soil amendment versus livestock feed. It is part of a global comparison with sites along a human and livestock population density gradient across sub-Saharan Africa and South Asia. This southern Africa study represents the most extensive case of semi-arid areas with lowest biomass production. Three sites were compared, at different levels of agricultural intensification, extent of crop-livestock integration and use of crop residues. 1. Mzimba in Northern Malawi – intensified crop oriented production. 2. Nkayi in southwest Zimbabwe – integrated crop-livestock systems. 3. Changara in Tete province in Central Mozambique – extensive crop-livestock farming. Across the three sites, crop residues are clearly needed as livestock feed. In Nkayi and Changara low crop yields and low biomass production against the existing demand from livestock prevents farmers from using residues for purposes other than livestock feed. The practice of collecting and kraal feeding residues in Nkayi illustrates that the pressure on residues is at a level where farmers start privatizing residues in order to ensure their individual benefits. When feeding crop residues in the kraal, farmers also increase the amount of manure for soil fertility improvement. Even in Mzimba, with higher residue production and lower livestock ownership, very few farmers retain the residues to achieve real impact on soil health. Although farmers see soil fertility as a critical constraint, they have limited residues to spare for mulching. The trade-offs of reallocating crop residues from livestock feed to mulching for soil amendment will be high as long as alternative feed technologies and access to input and output markets are not developed. The trade-offs will be lower in areas with higher biomass production and less competition with livestock. Technical options need to increase biomass on existing croplands, addressing feed shortages and the need for soil amendment concurrently. Viable institutional structures and appropriate policies need to support this intensification processes through better access to inputs, knowledge and markets. The pathways for sustainable intensification and more efficient crop residue utilization need to be developed within the local context. We found strong growth potential for livestock-oriented agricultural development in extensive areas (Changara), strengthening crop and livestock integration to support intensification in areas like Nkayi, and enhancing crop-livestock integration for more efficient resource utilization where biomass is less limiting (Mzimba)

Livestock production in Ethiopia

PRIFPRI4DSG

Non-farm income and labor markets in rural Ethiopia

Ethiopia’s economy is rapidly transforming. However, the extent to which this is affecting off-farm income and labor markets in rural areas is not well understood. Based on a large-scale household survey in high potential agricultural areas, we find that total off-farm income (defined as wage and enterprise income) makes up 18 percent of total rural income. Wage income in both the agricultural and non-agricultural sectors accounts for 10 percent of total household income, equating in importance to livestock income. We show off-farm income and wage income to be relatively more important for the poor and female and youth-headed households. We further find that real rural wages increased by 54 percent over the last decade, mostly driven by high agricultural growth. While this wage increase is good news for the poor, it also induces adjustments in agricultural production practices, including increased adoption of labor-substituting technologies such as herbicides and mechanization. However, it also relaxes liquidity constraints in the off-season for some households, consequently leading to higher productivity.Non-PRIFPRI2; CRP2; ESSPDSGD; PIMCGIAR Research Program on Policies, Institutions, and Markets (PIM

Evolving livestock sector

Chapter 5, “Evolving Livestock Sector,” shows that livestock is important in Ethiopia’s agricultural economy as almost all farmers own some livestock. Overall livestock output is shown to have grown rapidly over the past decade, estimated at almost 6 percent per year, but about 80 percent of that growth came from increases in the number of livestock. The stock of different livestock species was about 50 percent higher in 2015 than a decade earlier, while modern input use and improvements in production methods contributed little to growth in the livestock sector. Linked to improved access to extension and markets, adoption of improved breeds and improved feeding practices increased, but such adoption patterns started from a very low base. Within the livestock sector, cattle are dominant, making up an estimated three-quarters of the value of livestock stock. However, the share of cattle in total livestock output is declining, and small ruminants are on the rise, especially in pastoralist areas. Given the rapid growth in livestock numbers and the increasing Structural Transformation and the Agricultural Food System: An An Introduction 13 livestock density per unit of land, the authors find that feeding practices are changing. Grazing land is declining in availability, so reliance on commercial feed markets is increasing. Access to vaccinations and veterinary service provision have improved, and livestock death rates declined slightly over the past decade. However, the number of livestock lost to deaths is still more than twice the number sold for meat production, indicating important challenges remaining for the development of the livestock sector in Ethiopia.PRIFPRI1; ESSP; CRP2; Feed the Future Innovation Lab for Livestock Systems (LSIL)DSGD; PIMCGIAR Research Program on Policies, Institutions, and Markets (PIM

Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia

Livestock markets influence income generation for producers, but also accessibility and affordability of highly nutritious animal-sourced foods for consumers. Despite their importance, the functioning of livestock markets in lower-income countries is poorly understood and rarely studied compared to more developed countries. This study analyzes wholesale cattle markets in Ethiopia using a uniquely rich large-scale dataset covering both prices and cattle characteristics in 39 markets (in both highland and lowland areas) over a 10-year period, and hedonic regression models structured to understand both cattle price formation and seasonal and secular price dynamics. We show that cattle prices are influenced by a wide range of factors, including proxies for meat quality, religious fasting practices, climate-based seasonality but also climate shocks and availability of grazing land, competition from animal traction services, and rising consumer incomes. However, the implied effects of these factors are often significantly different in highland mixed crop-livestock areas compared to agro-pastoralist lowland areas, emphasizing the dualistic nature of cattle markets in Ethiopia. The analyses help inform the systemic challenges that Ethiopia will need to overcome to meet rising demand for beef products in the face of sustained income and population growth, as well as the adverse effects of climate change.PRIFPRI3; ISI; 1 Fostering Climate-Resilient and Sustainable Food Supply; 2 Promoting Healthy Diets and Nutrition for all; 4 Transforming Agricultural and Rural Economies; IFPRIOADSGD; PHN

Agricultural transformation in Africa?: Assessing the evidence in Ethiopia

PRIFPRI3; ISI; ESSP; CRP2DSGD; PIMCGIAR Research Programs on Policies, Institutions, and Markets (PIM

Farmers’ grain storage and losses in Ethiopia: Measures and associates

PRIFPRI3; CRP2; ESSP; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food IndustryDSGD; PIMCGIAR Research Program on Policies, Institutions, and Markets (PIM

Agricultural growth in Ethiopia (2004-2014): Evidence and drivers

Ethiopia’s agricultural sector has recorded remarkable rapid growth in the last decade. This paper documents aspects of this growth process. Over the last decade, there have been significant increases - more than a doubling - in the use of modern inputs, such as chemical fertilizers and improved seeds, explaining part of that growth. However, there was also significant land expansion, increased labor use, and Total Factor Productivity (TFP) growth, estimated at 2.3 percent per year. The expansion in modern input use appears to have been driven by high government expenditures on the agricultural sector, including agricultural extension, but also by an improved road network, higher rural education levels, and favorable international and local price incentives.Non-PRIFPRI2; CRP2; ESSP; D Transforming AgricultureDSGD; PIMCGIAR Research Program on Policies, Institutions, and Markets (PIM

Supply response of smallholder households in Ethiopia

A large proportion of the poor in Africa south of the Sahara (SSA) reside in rural areas where smallholder agriculture is the dominant activity. Smallholder farms account for more than 90 percent of the cultivated area and output in Ethiopia, with about 80 percent of the total population living in rural areas (Bachewe et al. 2015). Smallholder farmer–focused policies, which derive from the Agricultural Development Led Industrialization (ADLI) framework, were predominant in Ethiopia over the past two decades. This includes the current Growth and Transformation Plan (GTP). Furthermore, considerable resources are used through a number of national and multilateral supported programs aimed at increasing smallholders’ productivity and marketed supply (Ethiopia, MoA 2015). The success of such efforts crucially depends, among other factors, on how smallholders respond to changes in prices and policy interventions. This chapter examines supply responses of smallholder farmers to recent price changes.PRIFPRI1; ESSP; CRP2DSGD; PIMCGIAR Research Program on Policies, Institutions, and Markets (PIM

Prices of vegetables and fruits in Ethiopia: Trends and implications for consumption and nutrition

We study price behavior of vegetables and fruits in Ethiopia over the 15 year period from 2005 to 2019 based on large-scale retail and producer price datasets. This is an important topic given the importance of prices for consumption decisions for these nutritious crops. A number of notable findings come from the analysis. First, prices are rapidly increasing both in real terms and when compared to cereals. At the end of the study period in 2019, vegetables and fruits in real terms were significantly more expensive than 15 years earlier. Especially green leafy vegetables show a significant price rise, likely because few high-yielding varieties of these vegetables have been made available and adopted by producers. Second, part of the rise in prices is explained by increased marketing margins. To understand what accounts for these increases in the marketing margins for fruits and vegetables requires more research, as they contrast with stable or declining margins seen for other food crops over the study period. Third, we see significant seasonality in vegetable prices that is mostly driven by supply factors, but also by demand shifts due to increased demand in fasting periods. Fruit prices do not show such high seasonal variation, however. Fourth, there is significant spatial price variation in the country – vegetable prices are 60 percent more expensive in lowland regions than in the Amhara region, where vegetables are cheapest. Fruit prices in the lowlands are double the prices in the major producing area, the Southern Nations, Nationalities, and Peoples' (SNNP) region.Non-PRIFPRI1; CRP2; ESSP; 2 Promoting Healthy Diets and Nutrition for all; 3 Building Inclusive and Efficient Markets, Trade Systems, and Food IndustryDSGD; PIMCGIAR Research Program on Policies, Institutions, and Markets (PIM