Value addition after production would involve enhancements or additions to a product that result in higher returns to the commodity seller, who is often the smallholder farmer. This study was undertaken with the aim of analysing determinants of intensity of value addition to coffee by smallholders. A multi-stage stratified and simple random sampling technique was employed; and a total of 152 smallholder farmers from six kebeles were sampled. Data were collected from primary sources through a semi-structured interview schedule. Tobit econometric model was employed to identify the underlying determinants of coffee value addition. The result revealed that sex, literacy status, coffee farming experience, active family labour force, perception of farmers towards the adequacy of extension service on value addition, access to credit, ownership of sufficient drying facilities, perception of farmers towards price of dry cherry, and non- and off-farm income were significantly affected coffee value addition. The finding stress that policy aiming at offering farmers a fair price, providing adequate credit and other extension services, providing drying facilities, building capacity of farmers with knowledge, improving farmer’s business diversification besides coffee farming, and targeting gender inclusive strategy (paying attention to women) were recommended to increase coffee value addition at farm level.
Trends and determinants of coffee commercialization among smallholder farmers...Premier Publishers
Transforming agricultural output from subsistence to commercial based is being the crucial option for many agriculture dependent developing countries. This study was aimed to assess coffee commercialization trends and factors that affect coffee commercialization level. Primary data was collected from 156 households of three coffee potential districts of Jimma zone through personal interviews. Descriptive statistics and econometric models were used to analyze the data. The result of the study revealed that the mean coffee consumption level was 21.6 % and the overall mean commercialization level was 68 % which is higher at Manna district (74 %). The results of Tobit model also shows distance to main market and distance to marketing cooperatives, transport cost and land allocated for other crops affects level of coffee commercialization negatively and significantly. However, total land holding of the household head, coffee price and volume of coffee produced affects level of commercialization positively and significantly. It is recommended support towards developing institutional sectors like marketing cooperatives and improving physical access to market places could yield positive results towards coffee commercialization by smallholder coffee producers.
This study analyzed the potato value chain in Dedo district of Ethiopia. It identified the key actors as input suppliers, producers, collectors, wholesalers, retailers, small scale processors and consumers. It found that small scale processors capture the largest share of margins (65.01%) and profits (63.52%) in the chain. Producers obtain 12.29% of margins and 15.16% of profits. Major constraints included high seed costs, poor infrastructure, and disease/pests. Recommendations were to strengthen links between actors, support small scale processors, provide training on storage/disease control, and improve producers' bargaining power.
Food processing in developing countries: The case of ready-to-eat staple food...essp2
1. Ready-to-eat staple food markets are rapidly transforming in urban Ethiopia as the population grows and urbanizes. The market for prepared injera, a staple bread, has expanded significantly.
2. Injera-making microenterprises that employ women are proliferating in cities like Addis Ababa to meet demand. These businesses prepare injera using a mix of local teff and imported rice.
3. Large injera export markets are also emerging, with over $10 million in annual exports. The food processing sector in Ethiopia is undergoing significant changes with implications for trade, employment, and food security.
Farmer’s Participation in Irish Potato Marketing in Njombe Urban and Wanging’...Ochuko Siemuri
Irish potato is one of the most important economic crops in Tanzania contributing to household food requirements and income. In order to ascertain the contributions of Irish potatoes to stakeholders involved, this study aimed at determining the factors influencing Irish potato farmers’ decision to participate in the marketing and the extent of participation in Southern Highlands of Tanzania. Multistage sampling technique was used to collect cross section data from 497 Irish potato farmers. Cragg’s two step model was used to analyze data. In the first step Probit model was used to determine the factors that influence decision to participate in the market, while in the second step Truncated regression model was used to determine factors that influence the proportion of output sold. The results showed that socio-economic factors significant in the first stage are not necessarily significant in the second stage. Factors such as farming experience, farm size, price, education, extension service, credit and gender significantly influence the decision to participate in the marketing and the extent of participation. Policies need to enhance capacity of farmers through adult literacy programmes and help farmers to adopt the modern farming techniques that will lead to increased Irish potatoes output and market participation.
The rapid expansion of herbicide use in smallholder agriculture in Ethiopiaessp2
This document summarizes research on the rapid expansion of herbicide use in smallholder agriculture in Ethiopia. The study finds that herbicide use has increased fivefold in the last decade as imports have risen. Herbicides are mainly used on commercial cereals like teff and wheat. The research finds that herbicide application leads to improved crop production and increased labor productivity, especially for weeding. Transportation costs and rural wage levels are the main factors determining farmers' adoption of herbicides. The expanded herbicide use could significantly reduce rural labor needs but also raises issues regarding herbicide quality, safety, and potential health implications that require monitoring.
Trends and determinants of coffee commercialization among smallholder farmers...Premier Publishers
Transforming agricultural output from subsistence to commercial based is being the crucial option for many agriculture dependent developing countries. This study was aimed to assess coffee commercialization trends and factors that affect coffee commercialization level. Primary data was collected from 156 households of three coffee potential districts of Jimma zone through personal interviews. Descriptive statistics and econometric models were used to analyze the data. The result of the study revealed that the mean coffee consumption level was 21.6 % and the overall mean commercialization level was 68 % which is higher at Manna district (74 %). The results of Tobit model also shows distance to main market and distance to marketing cooperatives, transport cost and land allocated for other crops affects level of coffee commercialization negatively and significantly. However, total land holding of the household head, coffee price and volume of coffee produced affects level of commercialization positively and significantly. It is recommended support towards developing institutional sectors like marketing cooperatives and improving physical access to market places could yield positive results towards coffee commercialization by smallholder coffee producers.
This study analyzed the potato value chain in Dedo district of Ethiopia. It identified the key actors as input suppliers, producers, collectors, wholesalers, retailers, small scale processors and consumers. It found that small scale processors capture the largest share of margins (65.01%) and profits (63.52%) in the chain. Producers obtain 12.29% of margins and 15.16% of profits. Major constraints included high seed costs, poor infrastructure, and disease/pests. Recommendations were to strengthen links between actors, support small scale processors, provide training on storage/disease control, and improve producers' bargaining power.
Food processing in developing countries: The case of ready-to-eat staple food...essp2
1. Ready-to-eat staple food markets are rapidly transforming in urban Ethiopia as the population grows and urbanizes. The market for prepared injera, a staple bread, has expanded significantly.
2. Injera-making microenterprises that employ women are proliferating in cities like Addis Ababa to meet demand. These businesses prepare injera using a mix of local teff and imported rice.
3. Large injera export markets are also emerging, with over $10 million in annual exports. The food processing sector in Ethiopia is undergoing significant changes with implications for trade, employment, and food security.
Farmer’s Participation in Irish Potato Marketing in Njombe Urban and Wanging’...Ochuko Siemuri
Irish potato is one of the most important economic crops in Tanzania contributing to household food requirements and income. In order to ascertain the contributions of Irish potatoes to stakeholders involved, this study aimed at determining the factors influencing Irish potato farmers’ decision to participate in the marketing and the extent of participation in Southern Highlands of Tanzania. Multistage sampling technique was used to collect cross section data from 497 Irish potato farmers. Cragg’s two step model was used to analyze data. In the first step Probit model was used to determine the factors that influence decision to participate in the market, while in the second step Truncated regression model was used to determine factors that influence the proportion of output sold. The results showed that socio-economic factors significant in the first stage are not necessarily significant in the second stage. Factors such as farming experience, farm size, price, education, extension service, credit and gender significantly influence the decision to participate in the marketing and the extent of participation. Policies need to enhance capacity of farmers through adult literacy programmes and help farmers to adopt the modern farming techniques that will lead to increased Irish potatoes output and market participation.
The rapid expansion of herbicide use in smallholder agriculture in Ethiopiaessp2
This document summarizes research on the rapid expansion of herbicide use in smallholder agriculture in Ethiopia. The study finds that herbicide use has increased fivefold in the last decade as imports have risen. Herbicides are mainly used on commercial cereals like teff and wheat. The research finds that herbicide application leads to improved crop production and increased labor productivity, especially for weeding. Transportation costs and rural wage levels are the main factors determining farmers' adoption of herbicides. The expanded herbicide use could significantly reduce rural labor needs but also raises issues regarding herbicide quality, safety, and potential health implications that require monitoring.
Analysis of milk production, butter marketing and household use of inputs in ...ILRI
Presented by Berhanu Gebremedhin, Kaleb Shiferaw, AzageTegegne and Dirk Hoekstra at Workshop on the 30th International Conference of Agricultural Economists (ICAE), Vancouver, British Columbia, 28 July-2 August 2018
Community Assets and Crop Diversification: Evidence from Ethiopia's PSNPessp2
Community Assets and Crop Diversification: Evidence from Ethiopia's PSNP analyzes the impact of Ethiopia's Productive Safety Net Program (PSNP) on crop diversity. The study uses panel data from 2006-2012 to estimate fixed effects models. The results show:
1) PSNP irrigation and soil conservation projects significantly increase crop diversity as measured by number of crops, Margalef index, Shannon index, and Simpson index.
2) There is an interaction effect, where the combination of irrigation and roads projects further increases diversity.
3) On average, PSNP projects are estimated to contribute 0.61 to 0.90 additional crops per farmer, depending on the model.
The
Analysis of market participation by rice farmers in southern nigeria.Alexander Decker
This study analyzed factors affecting market participation among smallholder rice farmers in southern Nigeria. A survey was conducted with 150 farmers. Results showed that factors like higher crop production levels, larger land sizes, use of improved seeds, access to market information, group participation, and contractual agreements positively influenced farmers' ability to participate in output markets. However, lack of timely market information, transportation issues, and limited access to extension agents posed challenges. The study concluded that improving smallholder farmers' access to resources, market information, and group participation could help them better commercialize and contribute to economic growth in rural areas.
Household market participation behaviour in small ruminants in the Highlands ...ILRI
Presented by Berhanu Gebremedhin, Dirk Hoekstra, Azage Tegegne, Kaleb Shiferaw and Aklilu Bogale at the International Conference of Agricultural Economists (ICAE), Milan, Italy, 9-14 August 2015
Abstract— The study examined the cost and return of local chicken marketing in Mubi north local government area of Adamawa state. Data were collected from 120 respondents with aid of structured questionnaire using purposive and random sampling technique. Descriptive statistics, net income analysis, marketing efficiency (ME) were the analytical tools employed. The result revealed that local chicken marketing in the study area is mostly undertaken by the male gender (85%) who were in their active age between the age of 30-60 years. Majority of them had one form of formal education or the other and have marketing experience of more than five years. On the profitability of the enterprise a total variable cost ₦7887.00 was estimated using 2014 price of input and output. Cost of transportation accounting for 72.84%. The total revenue from the enterprise was estimated ₦13, 100 given the net income of ₦5213 an indication that the enterprise is profitable. A high marketing efficiency of 160% was computed an indication that the profit maximization motive of local chicken marketing is assured. It is recommended that the marketers should be motivated and encouraged with soft loans so as to expand their production.
Post-harvest losses in Ethiopia: measures and associates essp2
This document summarizes preliminary results from a study on post-harvest losses in Ethiopia conducted by researchers from FAO-MAFAP and IFPRI-ESSP. Some key findings include:
- Around 40-50% of households storing cereal crops reported losses during storage, with losses averaging around 5-7% of stored quantities.
- Factors associated with higher losses included higher household wealth, proximity to urban areas, and higher humidity during storage. Higher seasonal price gaps and temperatures were linked to lower losses.
- Most households stored crops for 3-6 months, and losses generally increased the longer crops were stored. The majority of households reported minor losses of 1-10% of stored quantities.
Ethiopia has a broad genetic diversity among its coffee varieties. Despite high coffee production potential of the
district, the market and marketing system of the area is generally dominated by conventional system of marketing
and producers are forced to sale directly for conventional transaction root that do not provide premium price for their
coffee produce and results low market margins. Both primary and secondary data were used f or this study.
Descriptive statistics like: percentage, frequency, mean and standard deviation and econometric model which is
stages least square (2SLS) were used to analyze the data. The result of econometric analysis of 2SLS regression
shows that four variables (which are education level of household head, membership to coffee cooperative, transport
ownership and quantity of coffee produced) positively and significantly affected market supply of coffee. However,
distance to the nearest market affected it market supply of coffee negatively and significantly. Therefore, policy
implication drawn from the findings aimed at strengthening farmers coffee cooperative and enhancing the financial
capacity of cooperative with functional collection center, improving a ccessibility of transport services and
developing infrastructure,improving farmers’knowledge through adult education as well as their experience sharing
with other coffee producing farmers, improving productivity through strengthening supportive institutions(extension
service provider)
Farming with Organic Fertiliser: Crop-Livestock Integration for Sustainable R...SIANI
This study was presented during the conference “Production and Carbon Dynamics in Sustainable Agricultural and Forest Systems in Africa” held in September, 2010.
Profitability Analysis and Adoption of Improved Box Hive Technology by Small ...AI Publications
Beekeeping is common and one of the agricultural activities used as good source of off-farm income to farmers in Ethiopia in generally, and particularly in the study area. The objectives of the study are to identify determinant of adoption of improved box hive technology and profitability of smallholder farmers in study area. Multi-stage sampling was employed to identify sample respondents. The sample respondents were stratified into adopters and non-adopters of improved box hive. Out of 148 total sample respondents 30 adopters and 118 non-adopters were identified. The data were collected using structured interview schedule, key informant discussion and observation. Partial budgeting technique and econometric models were employed. Partial budgeting result reveals that the beekeepers get financial benefits by adopting improved box hive. The first hurdle result of adoption decision indicated that beekeeping experience, distance to woreda town, frequency of extension contact, sex, age, education status, access to input were significant factors. Further, the second hurdle result of intensity of adoption revealed that frequency of extension contact, livestock holding, age, sex, access to input, family size and labor force were found to be significant factors. Thus, the woreda office of agriculture and rural developments, NGO’s and concerned stockholders should give due attention to these significant variables in the study area to boost improved box hive adoption and its intensity use thereby increase profitability of small holder beekeepers.
Factors Influencing the Choice of Promotional Practices of Agricultural Equip...IOSR Journals
The purpose of this study is to identify the factors influencing the choice of promotional practices of agricultural equipment manufacturers and its influence on annual sales of agricultural equipments. The consumer focus, demand creation, exposure, familiarity, encouragement, reputation, existence and value creation are the factors determining the choice of promotional practices of agricultural equipments by the manufactures. Besides, the consumer focus, demand creation, familiarity, reputation and value creation are positively influencing the annual sales of agricultural equipments. The manufacturers should formulate the promotional measures not only attract the farmers and also dealers in order to increase the dealership and also sales. The manufacturers should create demand for their equipments through proper promotion mix strategies in order to make stakeholders familiar with their equipments and also keep their reputations.
Technical Efficiency in Teff (Eragrostis teff) Production: The Case of Smallh...Premier Publishers
- The study aimed to determine the technical efficiency and factors affecting efficiency of smallholder teff producers in Jamma district, Ethiopia.
- A stochastic frontier production analysis was conducted on data from 149 farmers. The mean technical efficiency was found to be 78%, indicating potential to increase output by 22% through efficient use of resources.
- Age, education, use of improved seed, training, and credit access were found to negatively impact technical inefficiency, while larger farm size positively impacted inefficiency. The study recommends that local government support education, training, credit access, and supply of inputs like fertilizer and seed to improve efficiency.
This document analyzes four existing marketing supply chains (SC1-SC4) for brinjal in Allahabad district, India. SC1 involves producers selling directly to consumers. SC2 adds retailers, SC3 adds commission agents, and SC4 adds wholesalers and commission agents. The study found that adding intermediaries significantly increased marketing costs and consumer prices while decreasing producer profits and prices. SC1 had the highest producer profits and lowest consumer prices, while SC4 had the lowest producer profits and highest consumer prices. The researchers conclude the current system can be improved by introducing cooperatives or improving infrastructure, storage, market information and support for producers and intermediaries.
Determinants of Coffee Market Outlet Choices in Gewata District, Kaffa Zone, ...Premier Publishers
Ethiopia has a broad genetic diversity among its coffee varieties. Coffee is one of the cash crop which is highly marketed through world next to petroleum. It has a great contribution in earning foreign currency and it is an income source for around 20 % Ethiopian population either directly or indirectly. Linking small producers to markets are widely recognized as a valuable development route and market outlets choice is one of the most important farm household decisions to sell their produce and has a great impact on household income. Even if the study area has great potential of coffee production, the farmers faced the marketing problem particularly in choice of appropriate coffee market outlets. This study was therefore carried out to analyze determinants of coffee producers’ market outlet choice decisions in Gewata district. Purposive and two stage random sampling technique was used and data was collected from 121 coffee producers. Multivariate probit model (MVP) was used to analyze factors influencing the choice of coffee market outlets choice by coffee producers. The multivariate probit model results indicated that quantity of coffee sold, education level, frequency of extension contacts, household size, years of farming experience, distance to nearest market, off/non-farm income, land under coffee and transport access significantly influenced coffee producers’ choice of market outlet. Therefore, strengthening farmers coffee cooperative and enhancing the financial capacity of cooperative with functional collection center, improving accessibility of transport services and developing infrastructure, improving farmers’ knowledge through adult education as well as their experience sharing with other coffee producing farmers, improving productivity through strengthening supportive institutions (extension service provider).
Findings from the Study on Nutrition-Sensitive Value Chains in the Feed the Future Zone of Influence in Tajikistan by Abduaziz Kasymov, Tajikistan. Presented at the ReSAKSS-Asia - MIID conference "Evolving Agrifood Systems in Asia: Achieving food and nutrition security by 2030" on Oct 30-31, 2019 in Yangon, Myanmar.
Presented Simegnew Tamir, Kinde Getnet and Jema Haji at the Nile Basin Development Challenge (NBDC) Science Workshop–2013, Addis Ababa, Ethiopia, 9 – 10 July 2013
Land constraints and agricultural intensification in Ethiopia: A village leve...essp2
International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI) in collaboration with Ethiopian Economics Association (EEA). Eleventh International Conference on Ethiopian Economy. July 18-20, 2013
This study aims to analyze the technical efficiency of sorghum production by smallholder farmers in Konso district, Southern Ethiopia using cross sectional data collected from a sample of 124 sorghum producing households. Individual levels of technical efficiency scores were estimated using the Cobb-Douglas functional form, which was specified to estimate the stochastic production frontier. The estimated stochastic production frontier model indicated that input variables such as land size, fertilizer (Urea and DAP), human labour, oxen power and chemicals (herbicides or pesticides) found to be important factors in increasing the level of sorghum output in the study area. The result further revealed significant differences in technical efficiency among sorghum producers in the study area. The discrepancy ratio, which measures the relative deviation of output from the frontier level due to inefficiency, was about 90%. The estimated mean levels of technical efficiency of the sample households was about 69%, which shows existence of a possibility to increase the level of sorghum output by about 31% by efficient use of the existing resources. Among the household specific socio-economic and institutional factors hypothesized to affect the level of technical inefficiency, age, education level, family size, off/non-farm activities, extension contact, livestock holding, plots distance and soil fertility status were found to be significant in determining the level of technical inefficiency of sorghum production in the study area. Hence, emphasis should be given to improve the efficiency level of those less efficient households by adopting the practices of relatively efficient households in the study area. Beside this, policies and strategies of the government should be directed towards the above mentioned determinants.
11.marketing of agricultural crops in rural indian economy a case studyAlexander Decker
This document summarizes a study on the marketing of agricultural crops in rural markets in Ambedkarnagar District, India. Some key findings:
1. Vegetables accounted for the highest volume (42%) of crops sold in rural markets, followed by wheat (21%) and rice (17%), due to their perishability.
2. Most farmers prefer selling in local rural markets rather than farther markets due to lack of transportation and storage infrastructure.
3. Prices of crops varied across markets depending on location, demand, supply and transportation costs.
4. Non-producer sellers, including unemployed villagers, accounted for 70% of sellers on average, selling crops to supplement their income.
5
Marketing of agricultural crops in rural indian economy a case studyAlexander Decker
This document summarizes a study on the marketing of agricultural crops in rural markets in Ambedkarnagar District, India. Some key findings:
1. Vegetables accounted for the highest transaction volume (42.46%) due to their perishability. Wheat and rice also had high volumes.
2. Most farmers prefer local rural markets over specialized markets due to lack of transportation and infrastructure.
3. Prices varied across markets depending on location, demand, supply and transportation costs.
4. Non-producer sellers accounted for 69.99% of sellers on average, supplementing their incomes. Producer sellers were mainly marginal and small farmers.
Studies on Economic Efficiency of Coffee Production in Ilu Abbabor Zone, Orom...Premier Publishers
This study analyzed the economic efficiency of coffee production among farmers in Ilu Abbabor Zone, Ethiopia. The average technical, allocative, and economic efficiencies were found to be 71.71%, 14.13%, and 10.12% respectively, indicating very low levels of efficiency. Access to credit, land fragmentation, family size, and total farmland were identified as factors that could improve efficiencies. The study concluded that improving allocative efficiency, in particular, has potential to increase economic efficiency and productivity of coffee farmers in the region. Policy interventions targeting determinants like access to credit are recommended.
Analysis of milk production, butter marketing and household use of inputs in ...ILRI
Presented by Berhanu Gebremedhin, Kaleb Shiferaw, AzageTegegne and Dirk Hoekstra at Workshop on the 30th International Conference of Agricultural Economists (ICAE), Vancouver, British Columbia, 28 July-2 August 2018
Community Assets and Crop Diversification: Evidence from Ethiopia's PSNPessp2
Community Assets and Crop Diversification: Evidence from Ethiopia's PSNP analyzes the impact of Ethiopia's Productive Safety Net Program (PSNP) on crop diversity. The study uses panel data from 2006-2012 to estimate fixed effects models. The results show:
1) PSNP irrigation and soil conservation projects significantly increase crop diversity as measured by number of crops, Margalef index, Shannon index, and Simpson index.
2) There is an interaction effect, where the combination of irrigation and roads projects further increases diversity.
3) On average, PSNP projects are estimated to contribute 0.61 to 0.90 additional crops per farmer, depending on the model.
The
Analysis of market participation by rice farmers in southern nigeria.Alexander Decker
This study analyzed factors affecting market participation among smallholder rice farmers in southern Nigeria. A survey was conducted with 150 farmers. Results showed that factors like higher crop production levels, larger land sizes, use of improved seeds, access to market information, group participation, and contractual agreements positively influenced farmers' ability to participate in output markets. However, lack of timely market information, transportation issues, and limited access to extension agents posed challenges. The study concluded that improving smallholder farmers' access to resources, market information, and group participation could help them better commercialize and contribute to economic growth in rural areas.
Household market participation behaviour in small ruminants in the Highlands ...ILRI
Presented by Berhanu Gebremedhin, Dirk Hoekstra, Azage Tegegne, Kaleb Shiferaw and Aklilu Bogale at the International Conference of Agricultural Economists (ICAE), Milan, Italy, 9-14 August 2015
Abstract— The study examined the cost and return of local chicken marketing in Mubi north local government area of Adamawa state. Data were collected from 120 respondents with aid of structured questionnaire using purposive and random sampling technique. Descriptive statistics, net income analysis, marketing efficiency (ME) were the analytical tools employed. The result revealed that local chicken marketing in the study area is mostly undertaken by the male gender (85%) who were in their active age between the age of 30-60 years. Majority of them had one form of formal education or the other and have marketing experience of more than five years. On the profitability of the enterprise a total variable cost ₦7887.00 was estimated using 2014 price of input and output. Cost of transportation accounting for 72.84%. The total revenue from the enterprise was estimated ₦13, 100 given the net income of ₦5213 an indication that the enterprise is profitable. A high marketing efficiency of 160% was computed an indication that the profit maximization motive of local chicken marketing is assured. It is recommended that the marketers should be motivated and encouraged with soft loans so as to expand their production.
Post-harvest losses in Ethiopia: measures and associates essp2
This document summarizes preliminary results from a study on post-harvest losses in Ethiopia conducted by researchers from FAO-MAFAP and IFPRI-ESSP. Some key findings include:
- Around 40-50% of households storing cereal crops reported losses during storage, with losses averaging around 5-7% of stored quantities.
- Factors associated with higher losses included higher household wealth, proximity to urban areas, and higher humidity during storage. Higher seasonal price gaps and temperatures were linked to lower losses.
- Most households stored crops for 3-6 months, and losses generally increased the longer crops were stored. The majority of households reported minor losses of 1-10% of stored quantities.
Ethiopia has a broad genetic diversity among its coffee varieties. Despite high coffee production potential of the
district, the market and marketing system of the area is generally dominated by conventional system of marketing
and producers are forced to sale directly for conventional transaction root that do not provide premium price for their
coffee produce and results low market margins. Both primary and secondary data were used f or this study.
Descriptive statistics like: percentage, frequency, mean and standard deviation and econometric model which is
stages least square (2SLS) were used to analyze the data. The result of econometric analysis of 2SLS regression
shows that four variables (which are education level of household head, membership to coffee cooperative, transport
ownership and quantity of coffee produced) positively and significantly affected market supply of coffee. However,
distance to the nearest market affected it market supply of coffee negatively and significantly. Therefore, policy
implication drawn from the findings aimed at strengthening farmers coffee cooperative and enhancing the financial
capacity of cooperative with functional collection center, improving a ccessibility of transport services and
developing infrastructure,improving farmers’knowledge through adult education as well as their experience sharing
with other coffee producing farmers, improving productivity through strengthening supportive institutions(extension
service provider)
Farming with Organic Fertiliser: Crop-Livestock Integration for Sustainable R...SIANI
This study was presented during the conference “Production and Carbon Dynamics in Sustainable Agricultural and Forest Systems in Africa” held in September, 2010.
Profitability Analysis and Adoption of Improved Box Hive Technology by Small ...AI Publications
Beekeeping is common and one of the agricultural activities used as good source of off-farm income to farmers in Ethiopia in generally, and particularly in the study area. The objectives of the study are to identify determinant of adoption of improved box hive technology and profitability of smallholder farmers in study area. Multi-stage sampling was employed to identify sample respondents. The sample respondents were stratified into adopters and non-adopters of improved box hive. Out of 148 total sample respondents 30 adopters and 118 non-adopters were identified. The data were collected using structured interview schedule, key informant discussion and observation. Partial budgeting technique and econometric models were employed. Partial budgeting result reveals that the beekeepers get financial benefits by adopting improved box hive. The first hurdle result of adoption decision indicated that beekeeping experience, distance to woreda town, frequency of extension contact, sex, age, education status, access to input were significant factors. Further, the second hurdle result of intensity of adoption revealed that frequency of extension contact, livestock holding, age, sex, access to input, family size and labor force were found to be significant factors. Thus, the woreda office of agriculture and rural developments, NGO’s and concerned stockholders should give due attention to these significant variables in the study area to boost improved box hive adoption and its intensity use thereby increase profitability of small holder beekeepers.
Factors Influencing the Choice of Promotional Practices of Agricultural Equip...IOSR Journals
The purpose of this study is to identify the factors influencing the choice of promotional practices of agricultural equipment manufacturers and its influence on annual sales of agricultural equipments. The consumer focus, demand creation, exposure, familiarity, encouragement, reputation, existence and value creation are the factors determining the choice of promotional practices of agricultural equipments by the manufactures. Besides, the consumer focus, demand creation, familiarity, reputation and value creation are positively influencing the annual sales of agricultural equipments. The manufacturers should formulate the promotional measures not only attract the farmers and also dealers in order to increase the dealership and also sales. The manufacturers should create demand for their equipments through proper promotion mix strategies in order to make stakeholders familiar with their equipments and also keep their reputations.
Technical Efficiency in Teff (Eragrostis teff) Production: The Case of Smallh...Premier Publishers
- The study aimed to determine the technical efficiency and factors affecting efficiency of smallholder teff producers in Jamma district, Ethiopia.
- A stochastic frontier production analysis was conducted on data from 149 farmers. The mean technical efficiency was found to be 78%, indicating potential to increase output by 22% through efficient use of resources.
- Age, education, use of improved seed, training, and credit access were found to negatively impact technical inefficiency, while larger farm size positively impacted inefficiency. The study recommends that local government support education, training, credit access, and supply of inputs like fertilizer and seed to improve efficiency.
This document analyzes four existing marketing supply chains (SC1-SC4) for brinjal in Allahabad district, India. SC1 involves producers selling directly to consumers. SC2 adds retailers, SC3 adds commission agents, and SC4 adds wholesalers and commission agents. The study found that adding intermediaries significantly increased marketing costs and consumer prices while decreasing producer profits and prices. SC1 had the highest producer profits and lowest consumer prices, while SC4 had the lowest producer profits and highest consumer prices. The researchers conclude the current system can be improved by introducing cooperatives or improving infrastructure, storage, market information and support for producers and intermediaries.
Determinants of Coffee Market Outlet Choices in Gewata District, Kaffa Zone, ...Premier Publishers
Ethiopia has a broad genetic diversity among its coffee varieties. Coffee is one of the cash crop which is highly marketed through world next to petroleum. It has a great contribution in earning foreign currency and it is an income source for around 20 % Ethiopian population either directly or indirectly. Linking small producers to markets are widely recognized as a valuable development route and market outlets choice is one of the most important farm household decisions to sell their produce and has a great impact on household income. Even if the study area has great potential of coffee production, the farmers faced the marketing problem particularly in choice of appropriate coffee market outlets. This study was therefore carried out to analyze determinants of coffee producers’ market outlet choice decisions in Gewata district. Purposive and two stage random sampling technique was used and data was collected from 121 coffee producers. Multivariate probit model (MVP) was used to analyze factors influencing the choice of coffee market outlets choice by coffee producers. The multivariate probit model results indicated that quantity of coffee sold, education level, frequency of extension contacts, household size, years of farming experience, distance to nearest market, off/non-farm income, land under coffee and transport access significantly influenced coffee producers’ choice of market outlet. Therefore, strengthening farmers coffee cooperative and enhancing the financial capacity of cooperative with functional collection center, improving accessibility of transport services and developing infrastructure, improving farmers’ knowledge through adult education as well as their experience sharing with other coffee producing farmers, improving productivity through strengthening supportive institutions (extension service provider).
Findings from the Study on Nutrition-Sensitive Value Chains in the Feed the Future Zone of Influence in Tajikistan by Abduaziz Kasymov, Tajikistan. Presented at the ReSAKSS-Asia - MIID conference "Evolving Agrifood Systems in Asia: Achieving food and nutrition security by 2030" on Oct 30-31, 2019 in Yangon, Myanmar.
Presented Simegnew Tamir, Kinde Getnet and Jema Haji at the Nile Basin Development Challenge (NBDC) Science Workshop–2013, Addis Ababa, Ethiopia, 9 – 10 July 2013
Land constraints and agricultural intensification in Ethiopia: A village leve...essp2
International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI) in collaboration with Ethiopian Economics Association (EEA). Eleventh International Conference on Ethiopian Economy. July 18-20, 2013
This study aims to analyze the technical efficiency of sorghum production by smallholder farmers in Konso district, Southern Ethiopia using cross sectional data collected from a sample of 124 sorghum producing households. Individual levels of technical efficiency scores were estimated using the Cobb-Douglas functional form, which was specified to estimate the stochastic production frontier. The estimated stochastic production frontier model indicated that input variables such as land size, fertilizer (Urea and DAP), human labour, oxen power and chemicals (herbicides or pesticides) found to be important factors in increasing the level of sorghum output in the study area. The result further revealed significant differences in technical efficiency among sorghum producers in the study area. The discrepancy ratio, which measures the relative deviation of output from the frontier level due to inefficiency, was about 90%. The estimated mean levels of technical efficiency of the sample households was about 69%, which shows existence of a possibility to increase the level of sorghum output by about 31% by efficient use of the existing resources. Among the household specific socio-economic and institutional factors hypothesized to affect the level of technical inefficiency, age, education level, family size, off/non-farm activities, extension contact, livestock holding, plots distance and soil fertility status were found to be significant in determining the level of technical inefficiency of sorghum production in the study area. Hence, emphasis should be given to improve the efficiency level of those less efficient households by adopting the practices of relatively efficient households in the study area. Beside this, policies and strategies of the government should be directed towards the above mentioned determinants.
11.marketing of agricultural crops in rural indian economy a case studyAlexander Decker
This document summarizes a study on the marketing of agricultural crops in rural markets in Ambedkarnagar District, India. Some key findings:
1. Vegetables accounted for the highest volume (42%) of crops sold in rural markets, followed by wheat (21%) and rice (17%), due to their perishability.
2. Most farmers prefer selling in local rural markets rather than farther markets due to lack of transportation and storage infrastructure.
3. Prices of crops varied across markets depending on location, demand, supply and transportation costs.
4. Non-producer sellers, including unemployed villagers, accounted for 70% of sellers on average, selling crops to supplement their income.
5
Marketing of agricultural crops in rural indian economy a case studyAlexander Decker
This document summarizes a study on the marketing of agricultural crops in rural markets in Ambedkarnagar District, India. Some key findings:
1. Vegetables accounted for the highest transaction volume (42.46%) due to their perishability. Wheat and rice also had high volumes.
2. Most farmers prefer local rural markets over specialized markets due to lack of transportation and infrastructure.
3. Prices varied across markets depending on location, demand, supply and transportation costs.
4. Non-producer sellers accounted for 69.99% of sellers on average, supplementing their incomes. Producer sellers were mainly marginal and small farmers.
Studies on Economic Efficiency of Coffee Production in Ilu Abbabor Zone, Orom...Premier Publishers
This study analyzed the economic efficiency of coffee production among farmers in Ilu Abbabor Zone, Ethiopia. The average technical, allocative, and economic efficiencies were found to be 71.71%, 14.13%, and 10.12% respectively, indicating very low levels of efficiency. Access to credit, land fragmentation, family size, and total farmland were identified as factors that could improve efficiencies. The study concluded that improving allocative efficiency, in particular, has potential to increase economic efficiency and productivity of coffee farmers in the region. Policy interventions targeting determinants like access to credit are recommended.
Analysis of Economic efficiency of coffee production technologies in the case...Open Access Research Paper
Coffee is the primary source of income for more than 10 million households in coffee-growing African countries. Coffee also serves as an important source of export revenues and some of these countries rural population depend on this kind income. So, this study was carried to estimate and analyse factors affecting the level of economic efficiency of coffee production and its implication for increased productivity of coffee producers in the selected districts of Hadiya Zone. To achieve the objective, the target sample households were selected in multi-stage sampling techniques. Then, the primary data collected randomly from a sample of 200 households during 2013/14 production season. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate the efficiencies levels, whereas Tobit model is used to identify determinants that affect efficiency levels of the sample smallholder farmers. The estimated results showed that the mean technical, allocative and economic efficiencies were 81.78%, 37.45% and 30.62% respectively. It indicated that there was significant inefficiency in coffee production in the study areas. Among 14 explanatory variables hypothesised to affect the level of efficiencies, education level and extension contact of the sample household was the most important factor that found to be statistically significant to affect the level of technical, allocative and economic efficiency all together. In addition, farm size determined farmers’ technical, allocative and economic efficiencies negatively and significantly. Hence, in order to increase the economic efficiency level in coffee production, all concerned bodies and stakeholders should give due attention in determining coping up mechanism to significant determinants.
Report on gross margine of smallholder contton productionNtalemu
This study aimed to determine the gross margin of smallholder cotton production in Metema Woreda, Ethiopia. A cross-sectional survey was conducted interviewing 37 lead cotton farming households using a structured questionnaire, as well as key informant interviews. The study found that smallholder cotton farmers generated a gross margin of 39% after accounting for all production costs. The largest costs were weeding at 27% of total costs and harvesting. On average, farmers produced 12.05 quintals of cotton per hectare. However, smallholders face numerous constraints from production to marketing including pests, quality issues, asymmetric price information, and limited buyers. The study recommends improving access to market information and strengthening stakeholder integration to enhance smallholder cotton
Determinants of Teff Market Channel Choice in Abay Chomen District, Western E...Premier Publishers
This study analyzes the determinants of Teff market outlet choices in Abay chomen District of Ethiopia. Survey of one hundred eighty-four (184) household heads was conducted in three kebeles of the district in 2016. Multivariate Probit model was used to identify determinants of households’ teff market outlet choice decisions. Farm gate collectors, retailers and wholesaler marketing outlets were used by teff producing farmers in the study area. The model result revealed that age of the households significantly determined the probability of choosing farm gate, retailers and wholesalers market outlets. The study also revealed that sex, land size and quantity of teff produced in 2016 significantly affected the farm gate outlet choice of the smallholders. Additionally, the retailer outlet choice of farmers was significantly determined by quantity of teff produced. On the other hand, the wholesale market outlet choice of farmers was significantly determined by education level of the farmers. This implies that the need to invest on improving the education status of farmers; improving the production capacity of farmers that would help smallholder farmers to choose the more rewarding market outlet. Therefore, any policy attempting to benefit smallholder farmers to link with fair market outlets should focus on their educational status and their production capacity.
This document analyzes the value chain of sesame in the Bench Maji Zone of Ethiopia. It identifies the major actors in the sesame value chain as producers, wholesalers, rural collectors, cooperatives, brokers, retailers, exporters, and NGOs. It uses survey data and statistical analysis to examine factors that influence farmers' choices of market outlets. The analysis finds that years of experience, cooperative membership, household size, education level, land area under sesame cultivation, quantity supplied, participation in training, and distance to the nearest market significantly impact farmers' decisions on where to sell their sesame. The study recommends strengthening farmers' cooperatives, improving infrastructure and access to transportation, enhancing farmers' knowledge through
This document provides background information on a proposed study of the banana value chain in Mlali Village, Morogoro, Tanzania. It will examine pricing, margins, and losses at different levels of the chain from producers to consumers. Bananas are an important crop in Tanzania, but small farmers face challenges including low prices paid by intermediaries. The study aims to evaluate the chain to help actors improve incomes and livelihoods. It will determine prices, margins, and losses to provide information to support banana farmers and other players in Tanzania and beyond.
The document discusses the role of the Torban Anfillo Cooperative Union in the coffee value chain in Kellem Wollega, Ethiopia. The union plays a weak role due to socio-economic factors, organizational issues, and financing and marketing constraints. The performance of the cooperative union and its ability to support farmers could be improved through greater support from governmental and non-governmental organizations in providing finance, education, training, and consultancy services.
This document presents a thesis research proposal on determining the factors affecting potato production in Goro Muti District, East Hararghe Zone, Ethiopia. The study aims to assess the major socioeconomic, production, and institutional factors limiting potato yields and identify opportunities and constraints facing farmers. Data will be collected through surveys of 196 farm households and secondary sources. The study area has potential for potato farming but current yields of 8 tons/ha are below regional and national averages due to challenges like disease, seed quality, and lack of improved practices and inputs. The research seeks to understand why production is low and provide recommendations to boost yields and incomes for smallholder farmers.
Value Chain Analysis of Banana in Mizan Aman Town of Benchi Maji Zone, Southw...AI Publications
This study was aimed at analyzing value chain of banana in Mizan-Aman town, Bench Maji zone with specific objectives of describing important marketing channels and actors involved on banana value chain, dealing the determinant of supply of banana and identify constraints in value chain of the banana. The data were collected from both primary and secondary sources. The primary data for this study were collected through application of appropriate statistical procedures. The data were analyzed by using both descriptive and Econometric models. Accordingly, the value chain activities in the survey period were production, marketing and consumption. To identify factors affecting farm level marketable supply of banana, OLS regression analysis was employed. About 10 variables were hypothesized to affect farm level of marketable supply of banana in the study area. Age of respondent, experience, family size, education level of the household head, market information and distance to the market affects farm level marketable supply of banana positively and negatively. The study result exhibited also that banana producers are faced lack market, lack of cooperatives and low price of banana. The result revealed that banana passes through several intermediaries with little value being added before reaching the end users. Therefore, farmers are forced to capture a lower share of profit margin. The highest marketing cost is incurred by wholesalers and the highest market profit is shared by retailers. The value chain analysis revealed that the major actors in the area are producers, local collectors, wholesalers, retailers and consumers. The study showed that Input Suppliers, Improved infrastructure and strengthening the linkage/interaction among value chain actors is necessary for good marketing of banana.
Evidence based assessment of scalability of agricultural technologies: The ca...africa-rising
Presented by Girma T. Kassie, Peter Thorne, Kindu Mekonnen, Karen Brooks, Barbara Rischkowsky, Aynalem Haile, Seid A. Kemal, Lulseged Desta, Zenaye Degefa, Mulugeta Yitayih, Fresenbet Zeleke and Azage Tegegne at the Workshop and Exhibition on Promoting Productivity and Market Access Technologies and Approaches to Improve Farm Income and Livelihoods in Ethiopia: Lessons from Action Research Projects, ILRI, Addis Ababa, 8-9 December 2016
53cfc701045db kit case study sesame production and marketing in northwest e...alemu temesgen
Sesame production has significantly increased in Ethiopia over the last two decades, making it one of the largest sesame producers globally. Most sesame in Ethiopia is produced in the Tigray and Amhara regions in the northwest. There are several actors involved in the sesame value chain, with most farmers selling to local traders who bulk and transport the crop to collection points for auction at the Ethiopian Commodity Exchange. Some farmers are members of cooperatives who bulk and market the crop collectively. Inputs are primarily supplied by traders and unions with credit also provided through microfinance institutions and traders. Advisory services are offered but are not well coordinated across different providers.
Commercialization of Smallholder Teff Producers in Ethiopia: Constraints and ...Premier Publishers
This study was designed to assess the smallholder farmers’ teff production and marketing constraints and opportunities in Guduru District, Horro Guduru Wollega Zone, Ethiopia. Two-stages sampling procedure was followed to select 154 teff producer farmers from four randomly selected kebeles. An interview schedule was used to collect household survey data during the 2016/2017 farming season. The Household Commercialization Index was used to assess the levels of market participation. The results revealed that about 78% of sampled farmers sold teff during a production year of 2016/2017. The Kendall’s coefficient of concordance result revealed that production constraints like high cost of fertilizer and delayed delivery, credit problem, shortage of land, unpredictable rainfall, limited improved seed acquisition, insufficient labor, loss of soil fertility and marketing constraints like poor road, limited alternative outlets, fluctuation of teff price, low bargaining power of farmers, inadequate market information and week farmers’ cooperative were pressing constraints of teff production and marketing in study area in order of their importance. The implication of this finding is that promotion of better access to communication facilities and institutional services may significantly contribute to promoting market participation and hence commercialization of teff producer smallholders.
ANALYSING THE SUCCESS OF VERTICAL INTEGRATION THROUGH SMALL COFFEE GROWERS CO...Devesh Shukla
Issues of marketing of and trade in Coffee assumes importance due to its export potential as well as the livelihood dependency of large number of small growers (98% of holdings).To help the small growers move up in value chain, vertical integration becomes a greatest measure. So, we are proposing a research to understand the success of vertical integration through cooperatives and the factors affecting the same.
Assessment of passion fruit orchard management and farmersAlexander Decker
This document summarizes a study that assessed passion fruit orchard management and farmer technical efficiency in central-eastern and north-rift highlands of Kenya. The study found:
1) Technical efficiency varied across counties, with Meru having the highest mean at 65% followed by Uasin Gishu at 57% and Embu the lowest at 47%.
2) Orchard management practices like training vines, pruning, weeding and watering also varied significantly across counties and influenced technical efficiency.
3) Improving management practices could help farmers increase technical efficiency and reduce input costs by 35-53%, improving profits. The study recommends increased farmer training to boost awareness of good management.
The document summarizes the challenges facing the African cotton industry. It notes that world cotton prices collapsed in 2013, endangering the industry in West and Central Africa where cotton is a main export crop. While Asian countries dominate production, cotton is extremely important for some African economies like Mali, where it represents 10% of GDP. However, cotton farmers face volatile prices, competition from subsidies in developed countries, and environmental and health issues from pesticides. The industry is seeking to add value through processing and niche markets like organic fair trade cotton to address these challenges.
Factors Affecting Adoption and its Intensity of Malt Barley Technology Packag...Premier Publishers
Enhancing the probability of adoption and its intensity is not an easy task because there are numerous factors that affect producers’ adoption decision. Hence, the study was aimed to investigate the factors that affect adoption and intensity of adoption among malt barley producers in southern Ethiopia. Using random sampling technique, 251 smallholder malt barley producers were selected to collect primary data through semi-structured questionnaires. Descriptive statistics and econometrics model (Tobit model) methods were used for data analysis. The study identified five major malt barley technology packages in the study area. Such practices are; improved seed, seeding rate, fertilizer rate, plowing frequency and row planting. Thus, non-adopter accounted for 7.5% of total sample, partial adopter (50.2%), fully adopter (42.3%) and intensity ranges from 0.12-0.84 for partially adopter and 0.85-0.96 for fully adopter. The results of Tobit model indicated that factors influencing adoption and its intensity are; education, family size, land size, access to credit, membership to cooperative, access to training, access to demonstration, total livestock unit and distance to nearest market. Which are affected farmers adoption decision and intensity of adoption significantly in one or another way. Therefore, government and any development interventions should give emphasis to improvement of such institutional support system so as to achieve wider adoption, increased productivity and income to small scale.
This document summarizes a study on crop diversification patterns, trends, and determinants among smallholder farmers in eastern Ethiopia. The study analyzed survey data from 167 households in two districts. Crop diversification is an important risk management strategy for farmers in the region due to risks from drought, pests, soil degradation, and input price variations. The study found that farmers with more access to extension services, larger livestock holdings, and market information were less likely to diversify crops, while those with more farm plots, machinery, and irrigation access were more likely to diversify. The document recommends improving access to machinery, market information, and irrigation to promote greater crop diversification in the region.
Similar to Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia (20)
This document analyzes different fraud theories - the fraud triangle, fraud diamond, and fraud pentagon - and their ability to detect corporate fraud in Indonesia. It reviews the literature on each theory and their components (pressure, opportunity, rationalization, capability, arrogance). The study uses secondary data from 310 publicly listed Indonesian companies from 2012-2017 to empirically test if the theories significantly affect corporate fraud. The results of statistical tests show the data supports all the hypotheses, indicating all three fraud theories can be used to investigate corporate fraud based only on publicly available secondary data.
Traditional markets in Indonesia were created so that people from all walks of life can fulfill their needs, especially staple food products, without having to spend a lot of money. However, the prices of food products in different markets vary depending on the consumers of the particular market. The aims of this article were to compare the price difference of staple food products in several traditional markets and to find out the factors that cause the price difference. The data were collected by carrying out a survey to five traditional markets around Jakarta regarding the prices of ten staple food products. The data were analyzed quantitatively using statistical calculation ANOVA from SPSS version 22, and also qualitatively to discuss several factors underlying the price differences. Results revealed that price differences of staple food products were not only caused by market location, but other factors such as pricing strategy and consumer specification. This research implied that traditional markets were still chosen by Indonesian consumers to fulfill their needs because of the competitive price.
Airport enterprise innovation performance is a crucial issue that planners, decision makers and managers should focus in order to drive the airport enterprise performance towards sustainable development. The strategic infrastructure needs, and investments need to include improvements across all major factors that affect the innovation dimension of sustainable development.
Key objective of the paper is to highlight the challenges in airport enterprise management towards sustainable development in terms of innovation improvement. A performance evaluation towards innovation and sustainable development framework is adopted and a case study application highlights the crucial role of airport enterprise management performance innovation dimension towards sustainable development. Conventional wisdom is to stimulate the interest on topic and promote a framework addressing to evaluate airport enterprise management performance towards innovation and sustainable development.
In the business world, companies need high performance. Performance is the result or overall success rate of a person over a period of time in carrying out tasks compared to various possibilities, such as predetermined standards of work, targets, or criteria. The purpose of the study was to analyze the influence of intellectual intelligence, emotional intelligence, and spiritual intelligence on employee performance. The population in this study were 63 employees of PT PLN (Persero). This study uses quantitative associative, with data analysis used is multiple linear regression analysis. The results showed that both intellectual intelligence, emotional intelligence, and spiritual intelligence had a positive and significant effect on employee performance. Intellectual intelligence has the greatest influence on employee performance, followed by spiritual intelligence and emotional intelligence. Intellectual intelligence, emotional intelligence and spiritual intelligence together have an effect of 52.4% on employee performance, and the remaining 47.6% is influenced by other factors not explained in this study.
The main purpose of the research study is to analyze the effect of organizational commitment, job satisfaction and work insecurity as well as their impact on the performance of Bank Aceh Syariah. The samples of the research are 209 employees which are selected with survey methods. Data was collected by using questionnaire, and then the data was analyzed with statistical methods of structural equation model (SEM). The study found that the organizational commitment and job satisfaction have a negative effect on turnover intention, but positive effect on the performance of Bank Aceh Syariah. The work insecurity has a positive effect on turnover intention, but negatif effect on the performance of the bank.
This study aims to test the effect of employee engagement and organization trust on organization citizenship behaviour and its impact on organization Effectiveness. The object of this research is the government organization of Pidie Jaya with Echelon IV Officers as a respondent. The number of sample is determined by using proportional sampling technique and Slovin equation, and it provides 171 respondents. Data is analyzed using the path analysis with the SPSS program assistance. The findings describes that employee engagement, organization trust, organization citizenship behaviour and organization Effectiveness have been going well. For the verification test of direct effect provides: employee engagement effects organization citizenship behaviour; organization trust effects organization citizenship behaviour significantly; employee engagement effects organization Effectiveness significantly; organization trust effects organization effectiveness significantly, and; organization citizenship behaviour effects organization Effectiveness significantly. These all findings prove that the previous theories are still applicable, and these also apply in Government organization of Pidie Jaya District. The originality of this research is in its novelty in term of the object, time, and statistic approach. This result contributes to academic and research area in order to develop the next model and method. For the practical, this has verified that the variables in this research need more attention from the managers especially in organization related.
This paper is an analysis on the impact machine learning, Artificial Intelligence, and robotics has on the supply chain management. The analysis covers the basis of AI in the SCM mechanisms while defining it from the ground up. Later on, to shed a true light on supply first the paper zooms in on the effects of machines in marketing. From what particular methodologies are deployed in today’s environment extending all the way to its anticipated outcomes. As the reader progresses he/she will find valuable studies on the main segments of machine learning within the supply chain itself. Certain novelties and innovations are scrutinized regarding SCM alongside these studies. These innovations are exemplified by certain cases presented in Part 3. The penultimate section briefly examines the possible drawbacks of the surge in machine application in SCM. The final section compiles the ideas presented in the paper as a whole and gives a glimpse of an estimate for the near future.
Huang (2018) decomposes the differences in quantile portfolio returns using distribution regression. The main issue of using distribution regression is that the decomposition results are path dependent. In this paper, we are able to obtain path independent decomposition results by combining the Oaxaca-Blinder decomposition and the recentered influence function regression method. We show that aggregate composition effects are all positive across quantiles and the market factor is the most significant factor which has detailed composition effect monotonically decreasing with quantiles. The main decomposition results are consistent with Huang (2018)
In Kenya, the newly promulgated constitution of 2010 (CoK, 2010), provides the basis of monitoring and evaluation as an important tool for operationalizing National and County Government projects to ensure projects success, integrity, transparency and accountability. The county governments are responsible for delivering basic services in collaboration with other agencies and partners to enhance quality of life: however, the county government projects has been marred by lack of integrity, transparency, accountability and litany of other monitoring and evaluation weakness which has undermined the impacts and success of projects including Regional Economic Blocs. Lake Region Economic Bloc (LREB) which comprised of fourteen counties bordering Lake Victoria Basin is not sparred either. The study was conducted in six LREB Counties namely, Migori, Homabay, Kisumu, Siaya, Kakamega and Vihiga chosen in a random manner. This study specifically assessed the effectiveness of Monitoring and Evaluation methods on the Performance of County Governments Projects. The study was guided by the theory of change. The research was carried out using descriptive survey design which entails both qualitative and quantitative data collection procedures. The researcher used stratified random sampling techniques to draw a sample from the study population. The qualitative method focused on group discussion and in-depth interviews. The quantitative techniques employed questionnaires to 398 purposively selected subjects from the county projects. Data collection was from two main sources; primary and secondary. Secondary sources included relevant county documents, constitution, legislations, policy documents and reports among others. The Study employed questionnaires, Focus group discussion and Interview guide as its primary data collection method. Statistical Package for Social Science (SPSS) version 18.0 was used for analysis. Data was analyzed using descriptive and inferential statistics techniques and presented in tables and figures. The study findings indicated thatM&E methods, indicated by the coefficient of effectiveness (R2) which is also evidenced by F change 109.403>p-values (0.05). This implies that this variableis significant (since the p values<0.05) and therefore should be considered as part of effectiveness of M&E systems on the performance of County Governments projects. The study concludes that there are no effective and adequate projects monitoring and evaluation methods in place for County Government Projects, which can facilitate the achievement of desired projects performance and outcomes. The study recommends that the County Government should develop a clear M&E methods for each project with clear data collection, analysis, reporting and implementation methods. This Study recommends further research to be conducted in the other Regional County Economic Blocs.
This document summarizes a study on trust among Igbo businessmen in Nigeria. It finds that Igbo businessmen predominantly practice affective-based trust (70%) over cognitive-based trust (18%) in business dealings. Affective trust is built through personal relationships and past experiences, while cognitive trust relies more on general beliefs. The study also explores the role of trust in Igbo culture and business, finding trust is important for negotiations, relationships, and future dealings. Dependability, quality, timeliness, and reputation were key factors that build trust among Igbo businessmen. The impact of trust is that it encourages more business and a peaceful environment.
This study is directed to determine the role of government treasurer in state university in tax compliance. With the spirit of the state apparatus, especially the Civil Servant, in reporting the taxes, it is expected to become a continuously growing and infectious snowball to the taxpayers to report their taxes correctly, completely and clearly as well as to avoid administrative sanctions that are subject to such non-compliance. This study method used is qualitative, the source of this study is government treasurer. The use of this qualitative approach is based on the concept of natural setting, grounded theory, descriptive, more concerned with the process than the outcome, temporary design, and research results are negotiated and agreed upon. The results show that treasurers have a big role in tax compliance, but however, there are still many obstacles that must be faced in fulfilling their financial obligations. this research was conducted only in one state university, so that data that could be processed was very limited.
The corporate governance is a popular topic within two last decade, and the emerging economies are practicing &enhancing their performances. The review is conducted to assess the effectiveness of the corporate governance implications on firm’s performances. The study followed the deductive approach and the journal articles, and the reports have used the source of the review. As per the literature findings, the researcher developed a conceptual design for the case review. The independent variable is the corporate governance mechanism, and the dependent variable is organizations performances. Both independent and dependent variables comprise the different type of corporate governance practice and the different function of the organizational performances. The review found that all the types of corporate governance practices are influenced to the organizational performance and the better corporate governance mechanism can enhance all type of performances.
Innovative work behavior is likely to be an important need for the increasing performance of the hospital to provide the health public services. Theoretically and empirically, the behaviors be related to employee perception on management support, information technology and employee empowerment. The study aims to determine the effect of management supports and information technology on employee empowerment as well as their impact on the innovative work behaviors of the employee of dr. Zainoel Abidin District Hospital Banda Aceh. The study conducted of 302 employees of the hospital. The data collected by questionnaire and then the data is analyzed by statistical means of structural equation model (SEM). The study found that management support and information technology have a positive and significant effect on the employee empowerment and innovative work behavior. The employee empowerment mediates the effect of management supports and information technology on the innovative work behavior.
This research deals with an insight and analysis of the economy projectification in a smaller country, here represented by Croatia. The study was inspired by similar research conducted in Germany, Island and Norway and it is based on similar but partly adapted methodology. The objective of this study is to measure level of economy projectification in a smaller country, and to provide relevant data related for the level of project work. The random sample of 250 companies, from both public and private sectors, was selected across nine sectors of the economy. A stratified random sampling was drawn and interviews were conducted via telephone, so as on-line survey. While analysing collected data and considering the objectives of this paper, only basic statistical analyses were applied for calculating averages and mean values. This study confirmed that projectification trends and figures in a smaller country are similar to those in larger or developed countries. During the period of last five years, the projectification level of the Croatian economy was increased from 27% (in 2013.) to33% (in 2018.). The results show significant difference in projectification among the different sectors of economy, so as changes and trends over the recent time period.
This paper is designed to show how integrated process planning and cross employee planning can be a vital part to any business operation. It will also uncover how different integrated processes and employee relations will help a business to grow. Various topics ranging from enterprise resource planning, integrated planning in supply chains, the non-linear approach, innovation and digitalization coupled with cross training and empowerment, Human resources, and Manager Employee relations complement each other and could bring an organization together. Various thought processes and intellectual reasoning skills were instrumental in all consideration of this project. Many antiquated processes were changed over the years to update operations in the business world where conventional means were not effective. Integrating product planning and employee planning optimized operations both in the product and service industry and I will accent many of these optimizations. With recent technological advances and human relations tactics, project management and organization has been streamlined and works more productively than its predecessors. Regardless of the industry, integrated process planning, and cross employee planning could possible turn a dinosaur into a competitive part of the economy.
One of the problems in big cities are transportation.They solve this problem by providing mass transportation such bus or train. People use this facility to travel between surrounding cities or within the city. Jakarta recently has a new public transportation called TransJakarta which serving people travelingfrom nearby cities and in the city.In order to move or doing business between places people in Jakarta use TransJakarta This research aims to analyse ticket price, service quality and customer value toward customer satisfaction. We conducted a research by using questionnaires given to thepassangers and developed a model using a multiple regression to process the result from questionnaires. Samples were taken from The number of sample for this reseach was 130 customers taken from one bus stop which passengers traveled from BSD City to Grogol and Slipi. The results from partial testing showed that customer value andservice quality have effect on customer satisfaction while ticket price does not have effect on customer satisfaction.
This document summarizes a research study that examined the relationships between perceived website quality, perceived benefits, electronic word of mouth (eWOM), trust, and consumer attitudes toward online shopping in Indonesia. The study used a survey of 118 online shopping consumers and structural equation modeling to analyze the data. The results showed that perceived website quality positively influences perceived benefits and trust. Perceived benefits and trust positively impact consumer attitudes toward online shopping. Additionally, perceived website quality indirectly influences consumer attitudes through its effect on trust.
Dairying is one of the livestock productions practiced almost all over Ethiopia, involving a vast number of small, medium, or large-sized, subsistence or market-oriented farms. However, the structure and performance of dairy sectors and its products marketing both for domestic consumption and for export is generally perceived poor in Ethiopia due to different challenges. These challenges vary across different production system to another and/or from one location to another. Among other challenges seasonality of production, spoilage (lack of milk collecting facilities), poor animal health and management, inadequate supply of quality feed, low productivity and genetics ,quality problem, weak vertical integration, absence processing plant, inadequate permanent trade routes and other facilities like feeds, water, holding grounds, lack or non-provision of transport, lack of access to land, ineffectiveness and inadequate infrastructural and institutional set-ups, prevalence of diseases, lack of credit and inadequate market information are dominant in Ethiopia. Therefore, market infrastructure facilities, producers cooperative, feed quality and quantity provision system need to be strengthen for effective dairy value chain development.
This research paper examines customer intention to reorder in respect to delivery service and product satisfaction. Our research model includes delivery service, satisfaction and reorder intention. Satisfaction in this research model work as mediating variable. A survey method was adopted to collect data, collected data were analysis using SPSS to see the correlation between variables. A significant relationship was found between delivery service and reorder intention as well as moderating role was also note with satisfaction and reorder intention.
This paper examines the impact of internet use on student performance. In this cross-sectional study, one hundred twenty survey responses were collected from plus two-level students from BirendranagarSurkhet. The respondents were selected from class 11 and 12 students randomly. Frequency of internet use, location of internet use, cooperation from teachers for internet learning and peer group influence on internet use for academic purpose has been analyzed with their academic performance.one sample t test was used to analyze the data. The finding concludes all these variables have positive impact if the student use internet for learning process. Similarly, the analysis shows that the student who used internet at home for learning purpose has found highest academic achievement.
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
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The International Journal of Business Management and Technology, Volume 2 Issue 4 July-August 2018
ISSN: 2581-3889
Research Article Open Access
Determinants of Coffee Value Addition by Smallholder
Farmers in Jimma Zone, Ethiopia
Bizualem Assefa Gashaw1*
, Degye Goshu Habteyesus2
, Zekarias Shumeta Nedjo3
1. Department of Agribusiness and Value Chain Management, Wolkite University, Ethiopia; P.O. Box: 07, Wolkite, Ethiopia
2. Department of Economics, Kotebe Metropolitan University, Ethiopia; P.O. Box: 76, Addis Ababa, Ethiopia
3. Department of Agricultural Economics and Extension, Jimma University, Ethiopia; P.O. Box: 307, Jimma University, Ethiopia;
Abstract: Value addition after production would involve enhancements or additions to a product that result in higher returns to
the commodity seller, who is often the smallholder farmer. This study was undertaken with the aim of analysing determinants of
intensity of value addition to coffee by smallholders. A multi-stage stratified and simple random sampling technique was employed;
and a total of 152 smallholder farmers from six kebeles were sampled. Data were collected from primary sources through a semi-
structured interview schedule. Tobit econometric model was employed to identify the underlying determinants of coffee value
addition. The result revealed that sex, literacy status, coffee farming experience, active family labour force, perception of farmers
towards the adequacy of extension service on value addition, access to credit, ownership of sufficient drying facilities, perception of
farmers towards price of dry cherry, and non- and off-farm income were significantly affected coffee value addition. The finding
stress that policy aiming at offering farmers a fair price, providing adequate credit and other extension services, providing drying
facilities, building capacity of farmers with knowledge, improving farmer’s business diversification besides coffee farming, and
targeting gender inclusive strategy (paying attention to women) were recommended to increase coffee value addition at farm level.
Key words: - Coffee, Value Addition, Drying, Hulling, Tobit model
I. INTRODUCTION
Background and justification: The emerging trend for processed agricultural products in the global market
creates opportunities for smallholder farmers in the developing countries to benefit from such opportunities by linking
their activities to value chains through vertical and horizontal linkages (Vermeulen et al., 2008). While high-income
countries add nearly US $185 of value by processing one ton of agricultural products, developing countries add
approximately US $40. Furthermore, while 98 % of agricultural production inhigh-income countries undergoes
industrial processing, barely 38 % is processed in developing countries (Freeman, 2013). However, the prospects that
lead firms such as brand owners, innovators and system integrators may appropriately increase shares of rent and
therefore further widen the gap is very real (Altenburg, 2006).
Value addition can be broadly stated as the process of economically adding values to products (raw commodities) that
possess intrinsic value in their original state by changing their current place, time, and form characteristics to improve
their economic value and preferred by consumers in the market place (Fleming, 2005). According to these authors, value
addition can be achieved in two ways; innovation and coordination. Value addition through innovation focuses on
improving the existing processes, procedures, products, and services or creating new ones, while value addition
through coordination involves arranging partnership among the value chain actors that produce and market farm
products, changing the distribution of value in the chain which in turn through direct marketing, vertical integration,
producer alliances, and cooperative efforts. By producer alliances is to mean individuals/companies from the same level
of the chain consolidate in order to produce and market a superior product whereas by cooperative effort is to mean
individuals or companies pool their products in order to increase bargaining power.
Despite coffee’s economic and social importance for the Ethiopian economy, the performance smallholder farmers in the
coffee sub-sector have remained unsatisfactory. Coffee farmers had very limited power when it came to securing their
adequate share of the market price from coffee (IFPRI, 2003). According to Desse (2008), coffee quality defects in Jimma
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
is common mainly due to improper post-harvest processing and handling practices such as drying on bare ground,
rainy weather particularly during drying season, improper storage and transportation. In the study area, it is thus
customary that coffee farmers have been promoted to harvest and deliver the red cherry to wet processing stations than
being encouraged to farm level value addition considering coffee defect is relatively high in dry cherry coffee.
Furthermore, Abasanbi (2010) by his study recommended as wet processing is relatively a better approach to avoid
common earthy and musty coffee defects. Because of this and other policy recommendations, farmers in the area have
been encouraged to sell red cherry coffee without further farm level value addition improvements there by decreasing
their competitiveness and bargaining power which in turn is leading to low earning than the income that would have
been derived from dry cherry. However, farmers bargaining power while selling coffee in red cherry form is also very
limited and gradually shifted to dry coffee than selling red cherry.
Value addition is very important for farmers as it can transform unprofitable agriculture into a profitable one (Fleming,
2005). Value addition after production would involve enhancements or additions to a product that result in higher
returns to the commodity seller, who is often the farmer. From preliminary survey conducted prior in the study area, it
is observed that selling value added coffee after drying would result in more earnings/profit than that of red cherry
form. Yet, unlike their interest for value addition, farmers are challenged with many problems largely because of
marketing environment, supportive services,resources, processing technologies, infrastructure, and economic and
socio-demographic factors. There were farmers who didn’t add value on coffee while others add value. Besides, there
was variation between the intensity of value addition between those farmers who were involved in adding value on
coffee. Farm level coffee value additions vary across socioeconomic and demographic characteristics of farm households
and also in relation to factors associated with market access and institutional support services. Thus, to put value
addition as an alternative and formulating strategies in line with it, it was pertinent to first analyse the underlying
determinants of intensity of coffee value addition by smallholder farmers.
II. METHODOLOGY
Description of the study area: Jimma zone is located in the South-Western part of Ethiopia between Latitude 6o and 9o
North and Longitude 34o and 38o East, and between altitude ranges of 880 to 3340 meters above sea level (ORG, 2003).
The Zone is one of the coffee growing zones in the Oromia Regional State, Ethiopia which has a total area of 1.1 million
hectares of land. Currently, the total area of land covered by coffee in the zone is about 0.1 million hectares, which
includes small-scale farmers’ holdings as well as state and private owned plantations. Jimma zone covers a total of 21%
of the export share of the country and 43% of the export share of the Oromia Region (JZARDO, 2008). There are
favourable climatic conditions, variety of local coffee types for quality improvement and long history of its production
in the Zone. In Jimma zone, coffee is produced in the eight districts namely, Gomma, Manna, Gera, Limmu Kossa,
Limmu Seka, Seka Chokorsa, Kersa and Dedo, which serves as a major means of cash income for the livelihood of coffee
farming families (JZARDO, 2008). From among Limmu-Kossa and Gomma districts were selected.
Limmu-Kossa district is geographically located between 70 50’ to 80 36’ North and 360 44’ to 370 29’ East (ORG, 2003).
The total surface area of the district is 1355 km2. Agro-climatic condition of the district comprises of highland (25%),
midland (65%) and lowland (10%) with annual rain fall varying between 1200 to 2000 mm and altitude ranging between
1450 to 1950 masl while annual temperature is 10oC to 25oc. The total population of the district is 187,815 out of which
50.5% are male. There are about 29,138 households (92.3% male-headed) living in 40 kebeles and 3 towns (Limmu Genet,
administrative center of district, Ambuye, and Babu). The average land holding size per house hold is 2.39 hectare out of
which 24.6% is covered with annual crops.
Gomma is one of the known coffee growing districts of Jimma Zone. It is located 397 km Southwest of Addis Ababa and
about 50 km west of Jimma town (ORG, 2003). Its area is 1,230.2 km2. The annual rainfall varies between 800-2000 mm,
while the mean minimum and maximum annual temperatures of the district vary between 7oC-12oC and 25oC-30oC,
respectively (ARDO, 2008). Based on 15 years weather data obtained from Gomma district, the average annual rainfall is
1524 mm. Altitudinal range of the district is between 1387-2870 masl. The three dominant soil types in the district are
Eutric Vertisols, Humic Alfisols and Humic Nitosols. Nitosols are the most abundant covering about 90% of the district,
which is dark reddish brown in colour, slightly acidic and suitable for coffee production. Agro-ecologically, this district
is divided into highland (8%), midland (88 %), and lowland (4%) (Figure 1).
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
Figure 1: Map of the study area
Source: Adopted and manipulated from Ethiopian map
Sampling Techniques and Sample Size Determination: Stratification in the first and second; and simple random
sampling technique in the third stage was employed for the study. In the first stage districts were stratified in two as
potential and non-potential areas for coffee production. From among the eight potential districts, two districts namely
Gomma and Limmu-Kossa districts were sampled randomly. Production potential of kebeles was again assumed to be
important criteria to stratify kebeles for deriving representative sample kebeles. However, since it was difficult to get the
estimated volume of coffee production in each kebeles, considering the agro-ecology was an alternative and best proxy
for production potential in the study area. Thus, in the second stage, kebeles in the two districts were stratified into three
by their agro-ecology as lowland, midland and highland. The lowland agro-ecology covers less than 10% in both
districts while the highland agro-ecology covers only 8% in Gomma district. Accordingly, kebeles were sampled
randomly and proportionately from midland and highland category in Limmu-Kossa district and from midland
category in Gomma district. After screening out non-producing kebeles, proportionately four kebeles from Limmu-Kossa
district (three from midland and one from highland) and two midland kebeles from Gomma district were randomly
selected to obtain a total of six sample kebeles.
In the third stage, to consider the target populations (to avoid probability of including non-producers of coffee in the
sample), only list of coffee farmers from sample kebeles were considered. Then, based on the number of coffee farmers
available, proportional size of sample coffee farmers were selected from each sample kebeles using simple random
sampling technique. Since adequate size of sample is needed for the purpose of econometric analysis (Israel, 1992),
following the above sampling procedure, a total of 152 sample farmers were selected using Cochran (1963) sample size
determination formula.
Data Types, Sources and Method of Collection: The data, both quantitative and qualitative type of this study were
collected from primary source (from smallholder farmers) through a semi-structure interview schedule with the help of
trained enumerators.
Method of Data Analysis: Descriptive statistics for testing the significance differences (by χ2 or t tests) of farmers’
characteristics across participation in value addition; and Tobit Econometric model to analyse the socio-economic factors
affecting value addition were used.
Specification of the Tobit model: A household add value on some of its coffee, while another did not add at all. The
data collected tend to be censored at the lower limit of zero. If only probability of participation in value addition was to
be analysed, probit/logit models would be adequate techniques for addressing probability questions. However, the aim
here was to look at the socioeconomic factors that affect intensity of coffee value addition. On the other side, ideally,
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
multiple linear regressions (MLR) model would be applicable if all households participated in coffee value addition
through drying but in this study some of the households did not participate in coffee value addition through drying.
Some households preferred to participate in selling red cherry in favour of drying (adding value). Therefore, it was
interesting to identify factors that Where yi - is the monetary valuation of value added in thousands of birr, yi* is the
latent variable which is not observable; o is an intercept; i is
coefficient of the ith independent variable; The xi is vector of variables determining value addition of coffee; and i is 1, 2,
3.... m; and ii is the error term error/disturbance term that are independently and normally distributed
with mean zero and a common variance σ2.
A change in explanatory variables has two effects. It affects the conditional mean of Yi* in the positive part of the
distribution, and it affects the probability that the observation will fall in that part of the distribution.
Influence the intensity of value addition leading to a need for an appropriate model which is the Tobit model that uses
Maximum Likelihood estimation (MLE) (Tobin, 1958). A Tobit model answers both of the following questions: What
factors influence the probability of value addition? What factors determine intensity of value addition? The results
obtained from the Tobit procedure were the MLE or as well as the marginal effects. The marginal effects indicate the
amount of coffee value addition in monetary value (birr) resulting from a unit change in the explanatory variables. The
change in probability, on the other hand, indicates the likelihood for the farmers to participate in value addition through
dry processing approach. Using Tobit to determine factors affecting coffee value addition while controlling for other
factors, the econometric model is expressed as:
m
1) The marginal effect of an explanatory variable on the expected
value of the dependent variable is:
E(Yi )
F (z)
i
X i
i X i
Where, z represents
(Maddala,
1997).
2) The change in intensity of value addition with respect to a change in an explanatory variable among participants of
value addition through drying coffee is:
E(Y / Y * 0)
Z
f (z) f (z) 2
i
1
i
X i F (z) F (z)
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
Where, F (z) is the cumulative normal distribution of z, ƒ (z) is the value of the derivative of the normal curve at a given
point (i.e., unit normal density), z is the Z-score for the area under normal curve, βi is a vector of Tobit maximum
likelihood estimates and σ is the standard error of the error term.
3) The change in the probability of participation in value addition as independent variable Xi changes is
F (z)
f (z)
i
X i
Definitions and Hypothesis of
Variables
Dependent variable
Coffee value addition: It is a continuous variable represented by monetary valuation of total value added in thousands
of birr by a farmer after drying red cherry coffee in 2013/2014 fiscal year.
Independent variables: Value addition was hypothesized to be influenced by a combined effect of various factors such
as household characteristics, socio-economic and physical environments in which farmers operate. The following
variables (both continuous and discrete) were defined and hypothesised accordingly.
Sex of the household head: It is a dummy variable taking 1 for male and 0 for female coffee farmers. This variable has
something to affect intensity of value addition in that male headed households are assumed to participate in coffee
value addition more than female headed one as more men are supposed to have better access to drying facilities,
extension services, information and even credit than women. In Mamo et al. (2014), being male headed household was
related to volume of milk value added positively.
Therefore, being male headed household was hypothesised to affect intensity of value addition positively.
Literacy status of the household: It is a dummy variable considering the farmers’ education status and taking 0 for
illiterate and 1 for literate household. Households who are more educated are close to adopt processing and value
adding technologies relative to those illiterate farmers there by affecting the probability to participate and then level of
value addition positively. Ngore et al. (2011) found that improving literacy levels among rural entrepreneurs would
increase meat value addition in the rural agribusiness sector. Therefore, literacy status was expected to affect value
addition positively.
Coffee farming experience: This is a continuous variable referring to the number of years since the start of coffee
farming and assumed to affect intensity of coffee value addition positively.
Farmers with longer production experience are expected to be more knowledgeable and skilful and then would most
probably increase the amount of coffee value added. Therefore, it is hypothesized to affect value addition positively.
Active family labour force: It is a continuous variable measured in adult equivalent (Strock et al., 1991) that is the
number of active labour force available in the household. Since production, processing (value adding activities) and
other marketing activities are the function of labour, availability of labour was assumed to have positive relation with
value addition. A study by Berhanu et al. (2011) revealed that availability of family labour force affected the level of milk
value addition by the smallholder farmers positively at 1% significance level. Thus in this study, active family size was
hypothesized to have positive impact on value addition.
Ownership of drying facilities: It is a dummy variable taking 1 if farmers replied that drying facilities are not a
problem (have sufficient facilities) and 0 if they replied that it is a problem (don’t have sufficient facilities). In the study
area the practice of farm level value addition activities are greatly depend on the availability of drying facilities. Thus,
the ownership of sufficient drying facilities create the opportunity to increase value addition in that it was expected to
have positive influence on farm level coffee value addition.
Contractual agreement on red cherry: It is a dummy variable which takes 1 if the household head made contractual
agreement before with any buyer to supply red cherry coffee during the harvesting time of 2013/2014. The agreement is
considered to bind farmers to dry little coffee or even not to dry at all if not enough for supplying the red cherry coffee
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
as per the contract before. Farmers who get in to such a contract is expected to dry less amount of red cherry than those
farmers have no any contractual agreement to provide coffee in red cherry form. Thus, it was hypothesised to affect
amount of coffee value addition negatively.
Urgent need of the household: It is a dummy variable taking 1 if a household faced urgent need of money during coffee
harvesting/picking time and 0 if not. In the study areas, there is a situation that red cherry coffee is last option for
farmers in that farmers would be forced to sell red cherry coffee which otherwise impossible to meet the urgent need at
that time. This in turn decreases the volume of coffee planned to be dried. Therefore, this variable was expected to affect
the intensity of coffee value addition negatively.
Distance to urban centre: It is a continuous variable measured in kilometres of distance from the farmers’ residence to
the nearest woreda towns. urban center. In this study, the variable is assumed as a proxy for access to information
assuming that urban centres are sources of market and other information. The advantage is that as farmers are close
(near) to urban centers, they would have more interaction with informative peoples and get awareness about value
addition, price information, its costs and benefits and overall market condition. The study of Berhanu et al. (2011)
showed that participation decisions and intensity of farm level milk value addition was negatively related with distance
from urban centers. Hence, it was expected to influence intensity of coffee value addition negatively.
Access to credit: This is a dummy variable taking the value 1 if the household takes loan for coffee value adding
activities and/or marketing and other activities related to coffee and 0 if otherwise. Credit is a key financial instrument
to break low level of value addition and marketing problem. It is critical in financing investment and purchase of new
inputs (Ellis, 1992 cited in Shimelis, 2004). Ngore et al. (2011) found that enhancing access to credit would result in high
meat value addition in the rural agribusiness sector. In Mamo et al. (2014), access to credit was also related with volume
of milk value added positively. Hence, in this study access to credit was hypothesized to influence farmers’ coffee value
addition positively.
Perception of farmers towards extension service on value addition: It is defined as whether farmers have got an
extension services related to farm level coffee processing (value addition). The aim of the extension service considered
in this case is introducing farmers with new and improved agricultural inputs for better methods of increasing farm
level processing. The variable was considered as dummy taking 1 if the farmers perceived that they got
relevant/adequate extension service and 0 if otherwise. Ngore et al. (2011) found that extension service increase meat
value addition in the rural agribusiness sector. So, the more the adequacy of extension service the more the farmer
would be decisive on value addition and affect the quantity of coffee to be value added positively.
Perception of farmers towards current price of red cherry coffee: It is a dummy variable taking 1 if farmers assumed
that it is attractive and relatively profitable and 0 if not. If the price of the red cherry is considered to be low
(unattractive), it wouldn’t encourage selling red cherry rather is drying and adding value on coffee than when price of
red cherry is attractive. Therefore, it was hypothesised that price of red cherry affects coffee value addition negatively.
Perception of farmers towards current price of dry cherry coffee: It is a dummy variable taking 1 if farmers assumed
that price of dry cherry is relatively profitable and 0 if not. If the price of the dry cherry is considered to be low
(unattractive) for farmers, farmers would hoard it (if already dried) or even wouldn’t be encouraged to add value on
coffee (dry) rather would sell in red cherry form compared to the case when price of dry cherry is attractive. Hence,
perception of farmers about the price of dry cherry coffee was hypothesized to have a direct relationship with intensity
of value addition.
Consideration of coffee drying for saving and/or bargaining mechanism: This is a dummy variable taking 1 if farmers
believe or consider that drying coffee is a saving/bargaining mechanism and 0 if not. The need to coffee value addition
or to use dry cherry coffee as a aving mechanism is another very important factor there in the study areas in that drying
a red cherry coffee and storing in dry cherry form is a saving mechanism and a way of increasing bargaining power of
the smallholder farmers. Thus, this variable was expected to affect intensity of coffee value addition positively.
Membership to coffee cooperative: It is a dummy variable taking the value of 1 if the household was tied in coffee
cooperatives and 0 if otherwise. Cooperatives can develop members’ understanding about market and strengthen the
relationship among the members. Moreover, membered households can get an opportunity to receive training on value
addition, exchange ideas and learn better about the benefits of value addition and are thus willing to take the extra steps
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
of adding value to more of their coffee. Berem et al. (2010) found that the decision to add value on honey is positively
and significantly influenced by group membership. On the other hand, there is also an experience in the study area that
cooperatives are advocating their members to supply red cherry than that of dry cherry because of the fear (doubt) that
coffee quality would be deteriorated relatively when dried at the farm level. Therefore, this variable was expected to be
associated with coffee value addition either positively or negatively.
Log of Non- and/ or off-farm income: It is a continuous variable which refers to part of the total amount of income
measured in birr that is received from business activities (fire wood gathering, charcoal trading, agricultural trading,
local drink selling, service provision, pension, aid from relative etc.) other than farm activities by the household. If
earning from non/off-farm income is higher than income from coffee, farmers would mostly shift towards the non/off-
farm income activities due to the fact that farmers with better non/off-farm income would not tend to generate cash
from sell of agricultural commodities rather is from their non/off-farm activity. Similarly if households earn more
non/off-farm income, they could wait for higher price of coffee (by drying and store for the future) than selling
currently. In these ways, it has positive effect on value addition. Again this variable increases the financial strength of
the farmers to invest more on the purchase of facilities and incur labour cost for value adding activities. In this way, this
variable is assumed to affect value addition positively. In Mamo et al. (2014), income from non-dairy source was related
with volume of milk value added positively. Berem et al. (2010) also found that amount of hours spent on off-farm
activities increased the honey value addition. Thus, it was hypothesised to affect intensity of coffee value addition
positively.
III. RESULT AND DISCUSSION
Farmers’ characteristics by participation in value addition: Drying and hulling (dry processing) were
practices through which farmers add value on the commodity itself besides other handling practices. An average of 10.1
and maximum of 65.28 quintals of value added coffee was obtained through farm level value addition by smallholder
farmers. 86.8% of total respondents engaged in coffee value addition through dry processing (either by drying and/or
further hulling processes). The remaining 13.16% of them did not practice value addition by dry processing. However,
90.78% of all farmers are not engaged in hulling dry cherry coffee in to sundried coffee. Only 9.2% of farmers are
engaged in hulling process. From among 132 farmers who engaged in value addition, only 14 (10.61%) practiced further
value additions through hulling process too, whereas the rest 118 (89.39%) of the 132 practiced only drying red cherry
coffee but not further hulling practices. It implied that majority of the farmers were limited to undertake further hulling
process beyond drying. On the other way, from those who did not hull (138), 19 (13.77%) were those who did not
already dry the red cherry coffee and the remaining 119 (86.23%) were from those who dry coffee. However it is obvious
that all (100%) of those who hull coffee are from those who already practiced drying red cherry coffee. It is because
hulling is not expected unless red cherry coffee is dried first.
Table 1 presents mean/proportion comparison of demographic and socio-economic characteristics of sample farmers
across participation in value addition (by dry processing). The study
indicated that demographic characteristics like sex, literacy status, and age of sample farmers have significant difference
among the participation in value addition at 1%, 1% and 10% significance level respectively. It was revealed that 90.91%
and 86.36% of those farmers who participate in value addition were those who are male headed and literate households
respectively. With regard to price and value addition, 89.39% of those farmers who engaged in value addition were
those who perceive price of dry cherry is attractive. 90% of those who did not engage in value addition were those who
perceive price of dry cherry is low. On the other hand, 60.61% of those who did participate in value addition were those
who perceive price of red cherry is unattractive. The result of chi square tests also revealed that the two price
components, price of dry cherry and price of red cherry have significance difference among participation in value
addition at 1% and 5% significance level respectively.
As seen in below Table 1, 63.64% and 69.7% of those farmers who participated in value addition are those who were
member of primary cooperatives and those who received credit. The result of chi square test indicated that membership
in cooperative and access to credit showed significance difference among those who add value and those who did not
add value on coffee through dry processing at 5% and 1% significance level. Other variables like adequacy of extension
service on value addition, contractual agreement, consideration of dry cherry for saving/bargaining mechanism,
farming experience, non/off-farm income and volume of coffee harvested revealed significance difference among
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
participation in value addition at 1% significance level (except at 10% for adequacy of extension service on value
addition and at 5% for non/off-farm).
Table 1: Mean/proportion comparison of variables by participation in coffee value addition
Participation in value addition Pearson
Variables No Yes Total χ2/ t
(N= 20) (N=1322) (N =152)
District (Gomma, %) 80 44.7 49.34 8.66***
Sex (male, %) 55 90.91 86.18 18.81***
Literacy status (literate) 55 86.36 82.24 11.7***
Cooperative (yes, %) 40 63.64 60.53 4.06**
Credit (yes, %) 20 69.7 63.16 18.44***
Extension on value addition (yes, %) 30 15.15 17.11 2.7*
Price of dry cherry coffee (attractive, %) 10 89.39 78.95 65.87***
Price of red cherry coffee (attractive, %) 15 39.39 36.18 4.48**
Ownership of drying facility (yes, %) 70 63.64 64.47 0.31
Contractual agreement on red cherry (yes, %) 85 24.24 32.24 29.35***
Dry cherry for saving/bargaining (yes, %) 0 32.58 28.29 9.09***
Age (year) 39.9 44.23 43.66 -1.85*
Farming experience (year) 10.65 17.52 16.62 -3.3***
Active family labour force (number) 2.2 3.17 3.05 -2.34**
Non/off-farm income (birr) 305 6566.52 5742.63 -2.19**
Volume of coffee harvested (qtl) 8.15 48.07 42.82 -4.17***
***, **, and * significant at 1%, 5% and 10% significance level, respectively, N=sample size
Source: Survey result, 2014
IV. Econometric results
Determinants of Value Addition: Tobit’s mmaximum likelihood estimates, marginal effects and change in probability
of participation in value addition are presented below Table 2. The likelihood function of the model is significant (LR
chi2 (15) = 261.27, Prob chi2= 0.0000) indicating the model is adequate because coefficients are jointly significant. Sex,
literacy status, coffee farming experience, active family labour force, extension service on value
addition, credit access, perception of farmers towards current price of dry cherry coffee, ownership drying facilities, and
non- and/or off-farm income were significantly affected intensity of coffee value addition (Table 2).
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
Table 2: Maximum likelihood estimates of Tobit model of coffee value addition
Variable Coefficient Standard Marginal Marginal Change in
Error effect1 effect2 probability
Sex 4.98*** 1.55 4.80*** 4.21*** 0.0952**
Literacy status 2.18** 1.07 2.10** 1.84** 0.0417*
Coffee farming experience 0.17*** 0.04 0 .16*** 0.14*** 0.0032***
Active family labour force 1.31*** 0.29 1.26*** 1.11*** 0.0250***
Extension service on value addition 7.90*** 1.28 7.62*** 6.68*** 0.1510***
Distance to urban center 0.01 0.10 0 .01 0.01 0.0002
Access to credit 1.78** 0.84 1.72** 1.51** 0.0341*
Ownership of drying facility 2.36*** 0.84 2.28*** 2.0*** 0.0451**
Price of red cherry 0.21 0.94 0 .20 0.18 0.0040
Price of dry cherry 2.92*** 1.06 2.81*** 2.47*** 0.0558**
Membership in coffee cooperative 0.83 0.76 0 .80 0.70 0.0158
Non- and/or off-farm income (log) 5.93*** 0.35 5.72 *** 5.02*** 0.0492***
Consideration of drying as saving 1.41 1.13 1.36 1.19 0.0269
and/or bargaining mechanism
Contractual agreement on red -0.95 0.95 -0.92 -0.81 -0.0182
cherry coffee
Urgent need to sell red cherry -0.07 0.85 -0.07 -0.06 -0.0014
Constant -31.14*** 3.07
Sigma 4.14 0.25
Pseudo R2 = 25.5% Number of observations = 152
Log-likelihood = -382.54 Left-censored observations = 20
LR chi2(15) = 261.27 Uncensored observations = 132
Prob > chi2= 0.0000 Right-censored observations = 0
1 The effects of change in the explanatory variables on the expected value of the dependent variable among the whole
sample
2 The change in intensity of value addition with respect to a change in an explanatory variable among participants
NB: - Dependent variable is represented by monetary valuation of value added on coffee (thousands of birr)
***significance at 1% level, ** significance at 5% level, and *significance at 10% level Source: Own computation from
survey, 2014
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
Sex of the household: As expected, sex affected coffee value addition negatively at 1% significance level. The marginal
coefficient values for this explanatory variable were found to be 4.8 and 4.21 implying that being male-headed
household against that of female-headed would increase the intensity of value addition by 4800 birr among the whole
sample and by 4210 birr among the participant group. The result supports the study of Mamo et al. (2014) in that being
male headed household was related with volume of milk value added positively. This variable would also increase the
probability of value addition significantly by 9.52%. These implied that conditions of coffee value addition activities are
favorable for male headed than female headed farmers.
Literacy status: It was positively related with value addition at 5% significance level. The computation of marginal
effects showed that while all other variables in the model held constant, being literate than illiterate would increase
coffee value addition by amount coffee value addition by 2100 birr among the whole sample and by 1840 birr among the
participant group. Being literate household also led to an increase in the probability of coffee value addition by 4.17%.
Households who have better education are likely to understand importance of value addition through drying coffee. It
is probably due to the reason that more educated farmers are close to adopt processing and value adding technologies
relative to those illiterate farmers there by increasing the intensity of value addition positively. This result agrees with
the findings of Ngore et al. (2011) who found that improving literacy levels among rural entrepreneurs would increase
the level of meat value addition in the rural agribusiness sector.
Coffee farming experience: This variable affected the intensity of value addition significantly and positively at 1% level.
It implied as farmers stay longer in coffee farming business, it is expected to increase value addition through drying
and/or further processing. All other factors being unchanged, a one year increase in farming experience leads to an
increase in coffee value addition by 160 birr among the whole sample and by 140 birr among the participant group. As
experience increased by a year the likelihood of value addition would also increase significantly by 0.32%. This is
probably due to the reason that as farmers are experienced with coffee farming, they would be aware of the benefits of
drying coffee and engages in value addition than those famers with few years of farming experience.
Active family labour force: In line with the expectation, labour force affected coffee value addition positively at 1%
significance level. Other factors being constant, a one person labour force availed in the family increased the coffee
value addition by 1260 birr among the whole sample and by 1110 birr among the participant group. As the number of
labourer in the family increased by one, the probability to participate in value addition would increase by 2.5%. This
result was in confirmation with Berhanu et al. (2011) who revealed that availability of family labour force affected level
of milk value addition by the smallholder farmers positively at 1% significance level.
Extension service on value addition: As expected, this variable was found to be positively associated with coffee value
addition at 1% significance level. The marginal effects of this variable showed that as farmers are addressed with
extension service, value addition increased by 7620 birr among the whole sample and by 6680 birr among the
participant group. Extension service on value addition increases the probability of adding values on coffee by 15.1%.
This result was in line with the study of Berhanu et al. (2011) who revealed that negative livestock extension services
decreased milk value addition.
Access to credit: This variable affected the intensity of coffee value addition positively at 5% significance level. The
marginal effects for this variable revealed that those who have got credit access would increase value addition by 1720
birr among the whole sample and by 1510 birr among the participant group. Credit access increases the likelihood to
participate in value addition by 3.41%. These explain that credit is a key financial instrument to break the low level of
value addition and marketing problem. This result supports the study of Ngore et al. (2011) who revealed that
enhancing access to credit would result in high meat value addition in the rural agribusiness sector. In Mamo et al.
(2014), access to credit was also related with volume of milk value added positively.
Ownership of sufficient drying facilities: As hypothesised, intensity of coffee value addition was related with the
availability of drying facilities for farmers positively at 5% significance level. The marginal effects for this explanatory
variable were found to be 2.28 and 2 implying that for those who assumed that they had enough drying facilities, the
value added on coffee would increase by 2280 birr among the whole sample and by 2000 birr among the participant
group. Having enough coffee drying facilities increased the likelihood of value addition by 4.51%.
The result indicated that practice of farm level coffee value addition activities were greatly depending on the availability
of drying facilities.
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Determinants of Coffee Value Addition by Smallholder Farmers in Jimma Zone, Ethiopia
Perception of farmers towards current price of dry cherry: This variable also affected coffee value addition positively at
1% significance level. As farmers perceived that price for dry cherry is attractive, value addition would increase by 2810
birr among the whole sample and by 2470 birr among the participant group. Consideration of price of dry cherry as
attractive would increase the probability of participation in value addition by 5.58%. The results, therefore, suggested
that farmers to be encouraged to coffee value addition through drying, increasing price of dry cherry would be a
strategy. Thus, let alone other factors constant, the higher attractive the price of dry cherry, the better would be the
participation in and intensity of value addition.
Log of non- and/or off-farm income: It affected intensity of coffee value addition positively at 1% significance level. The
marginal effects revealed that, on average, a one percent increase in non-and/or off-farm income would result in an
increase in value addition by 57.2 birr among the whole sample and by 50.2 birr among the participant group. This may
be explained by the fact that farmers with a better non-and/or off-farm income would diversify their coffee business
like value addition since the financial strength of farmers to invest more on the purchase of facilities and disbursing on
labour cost for value adding purpose and/or to wait for future higher prices from coffee would increase. This finding
coincided with the results of Mamo et al. (2014) who revealed non-dairy income source affected milk value added
positively and Berem et al. (2010) that amount of hours spent on off-farm activities increased the honey value addition.
V. CONCLUSION AND RECOMMENDATION
The result indicate that female headed households were not in a better position in adding value to coffee compared to
the male headed households indicating that giving due attention by improving access to credit and other extension
facilities for female headed is mandatory. Women should be targeted while providing training and other extension
service for farmers. Literacy status is another significant variable that affect intensity of value addition positively.
Building education capacity of rural farmers through arranging consecutive trainings and experience sharing sessions
among smallholder farmers or arranging other formal way of education should be designed to increase farm level coffee
value addition. The adequacy of extension service provided and ownership of drying facilities to farmers have also
something to do with enhancing value addition. It is, therefore, important to serve farmers with appropriate extension
service provisions and offering drying facilities for farmers so that they would be encouraged to value addition.
Assigning professional development agents and upgrading their knowledge and skills to provide adequate extension
services is recommended. The study also finds that access to credit enables farmers to increase value addition. Thus,
strengthen the financial capability of farmers by providing adequate size of credit is the necessary strategy to increase
intensity of value addition. It is must to finance coop/unions sufficiently to solve severe financial problems of farmers.
Modern value chain financial products (more importantly warehouse receipt finance) as an alternative for credit
provision should be established.
Non-and/or off-farm income is another important factor affected value addition positively. Hence, encouraging farmers
to diversify their business besides coffee is an alternative way to enhance coffee value addition at the farmer level. On
top of these, price of dry cherry coffee affects value addition positively. Therefore, there should be a system for which
suppliers couldn’t fix price below some threshold limit. As farmers are the pro-poor groups who need to be prioritized
in any intervention, legal tactics and conditions (for instance prevailing price ceiling and price floor) under which such
practices of offering unfair price would not likely to prevail should be implemented.
In general policy aiming at offering farmers a fair price, providing adequate credit and other extension
services, improving marketing infrastructures, building capacity of farmers, encouraging farmer’s business
diversification besides coffee farming, targeting gender inclusive strategy (paying attention to female headed
households) are recommended to increase coffee value addition at farm level.
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