1,247
Views
1
CrossRef citations to date
0
Altmetric
General & Applied Economics

Impacts of contract farming on asset accumulation of malt barley farmers in Northwestern Ethiopia

ORCID Icon, , &
Article: 2230724 | Received 09 May 2023, Accepted 25 Jun 2023, Published online: 11 Jul 2023

References

  • Abadie, A. (2003). Semiparametric instrumental variable estimation of treatment response models. Journals of Econometrics, 113(2), 231–34. https://doi.org/10.1016/S0304-4076(02)00201-4
  • Abdulai, Y. A., & Al-Hassan, S. (2016). Effects of contract farming on small-holder soybean farmers’ income in the Eastern corridor of the Northern region, Ghana. Journal of Economics & Sustainable Development, 7(2) Online. www.iiste.org
  • Abera, D., Bijman, J., Slingerland, M., Van Der Velde, G., & Onno Omta, P. (2018). Beer Multinationals Enhance Agricultural Commercialization in Africa: Empirical Evidence from Ethiopia. Available online https://eea-et.org/sites/default/files/forms/Beer%20Multinationals.pdf (accessed on 15 September)
  • Addisu, B. A. (2018). Malt barley commercialization through contract farming scheme: A systematic review of experiences and prospects in Ethiopia. African Journal of Agricultural Research, 13(53), 2957–2971. https://doi.org/10.5897/ajar2018.13071
  • Adego, T., Simane, B., & Woldie, G. A. (2019). The impact of adaptation practices on crop productivity in northwest Ethiopia: An endogenous switching estimation. Development Studies Research, 6(1), 129–141. https://doi.org/10.1080/21665095.2019.1678186
  • Agricultural Transformation Institute. (2022). Increasing agricultural productivity across SSA. Our world in data.
  • Ahmed, M. H., Geleta, K. M., Tazeze, A., & Andualem, E. (2017). The impact of improved maize varieties on farm productivity and wellbeing: Evidence from the east hararghe zone of Ethiopia. Development Studies Research, 4(1), 9–21. https://doi.org/10.1080/21665095.2017.1400393
  • Ahmed, M. H., & Mesfin, H. M. (2017). The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: Empirical evidence from eastern Ethiopia. Agricultural and Food Economics, 5(1). https://doi.org/10.1186/s40100-017-0075-z
  • Alene, D. A., & Manyong, V. M. (2007). The effects of education on agricultural productivity under traditional and improved technology in northern Nigeria: An endogenous switching regression analysis. Empirical Economics, 32(1), 141–159. https://doi.org/10.1007/s00181-006-0076-3
  • Asfaw, S., Shiferaw, B., Simtowe, F., & Lipper, L. (2012). Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia. Food Policy, 37(3), 283–295. https://doi.org/10.1016/j.foodpol.2012.02.013
  • Ayele Anaye, A., & Tarekegn Erkalo, K. (2020). Comparative analysis of technical efficiency of wheat production in row planting and broadcasting methods: Empirical evidence from Southern Ethiopia comparative analysis of technical efficiency of wheat production in row planting and broadcasting methods: empirical evidence from Southern Ethiopia. African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, 14(3), 708–717. https://doi.org/10.21203/rs.3.rs-18162/v1
  • Barrett, C. B. (2008). Smallholder market participation: Concepts and evidence from eastern and southern Africa. Food Policy, 33(4), 299–317. https://doi.org/10.1016/j.foodpol.2007.10.005
  • Beauro of Agriculture. (2020). Annual report.
  • Belete, A. S. (2020). Analysis of technical efficiency in maize production in Guji Zone: Stochastic frontier model. Agriculture & Food Security, 9(1). https://doi.org/10.1186/s40066-020-00270-w
  • Bellemare, M. F. (2012). As you sow, so shall you reap: The welfare impacts of contract farming. World Development, 40(7), 1418–1434. https://doi.org/10.1016/j.worlddev.2011.12.008
  • Bellemare, M. F., & Novak, L. (2017). Contract farming and food security. American Journal of Agricultural Economics, 99(2), 357–378. https://doi.org/10.1093/ajae/aaw053
  • Ben-Akiva, M. E., & Lerman, S. R. (1985). Discrete choice analysis: Theory and application to travel demand. MIT Press.
  • Bezabeh, A., Beyene, F., Haji, J., Lemma, T., & Yildiz, F. (2020). Impact of contract farming on income of smallholder malt barley farmers in Arsi and West Arsi zones of Oromia region, Ethiopia. Cogent Food and Agriculture, 6(1), 1834662. https://doi.org/10.1080/23311932.2020.1834662
  • Bidzakin, J. K., Fialor, S. C., Awunyo-Vitor, D., & Yahaya, I. (2020). Contract farming and rice production efficiency in Ghana. Journal of Agribusiness in Developing and Emerging Economies, 10(3), 269–284. https://doi.org/10.1108/JADEE-11-2018-0160
  • Bidzakin, J., Fialor, S., & Yahaya, I. (2018). Production efficiency of smallholder rice farms under contract farming scheme in Ghana. Asian Journal of Agricultural Extension, Economics & Sociology, 25(1), 1–12. https://doi.org/10.9734/ajaees/2018/41057
  • Biggeri, M., Burchi, F., Ciani, F., & Herrmann, R. (2018). Linking small-scale farmers to the durum wheat value chain in Ethiopia: Assessing the effects on production and wellbeing. Food Policy, 79, 77–91. https://doi.org/10.1016/j.foodpol.2018.06.001
  • Bijman, J. (2008). Contract farming in developing countries: An overview Working Paper.
  • Bishaw, Z., & Molla, A. (2020). Deployment of malt barley technologies in Ethiopia achievements and lessons learned.
  • Brockington, D. (2019). Persistent peasant poverty and assets. Exploring dynamics of new forms of wealth and poverty in Tanzania. The Journal of Peasant Studies, 48(1), 201–220. https://doi.org/10.1080/03066150.2019.1658081
  • Business Innovation Facility. (2018). Assessment of the malting barley market system in Ethiopia. http://www.ifpri.org/publication/barley-value-chain-ethiopia
  • Caliendo, M., & Kopeinig, S. (2008). Some practical guidance for the implementation of propensity score matching. Journal of Economic Surveys, 22(1), 31–72. https://doi.org/10.1111/j.1467-6419.2007.00527.x
  • Carletto, C., Kilic, T., & Kirk, A. (2011). Nontraditional crops, traditional constraints: The long-term welfare impacts of export crop adoption among Guatemalan smallholders. Agricultural Economics, 42(SUPPL. 1), 61–76. https://doi.org/10.1111/j.1574-0862.2011.00552.x
  • Carter, M. R., & Lybbert, T. J. (2012). Consumption versus asset smoothing: Testing the implications of poverty trap theory in Burkina Faso. Journal of Development Economics, 99(2), 255–264. https://doi.org/10.1016/j.jdeveco.2012.02.003
  • Central Statistical Agency. (2017). Report on area and production of major crops by private peasant holdings in 2016/2017 meher season.
  • Central Statistical Agency. (2018). Agricultural sample survey. Volume I: Report on area and production of major crops (Private peasant holdings, meher season), Statistical Bulletin 586, .
  • Central Statistical Agency. (2020). Report on area and production of major crops by private peasant holdings in 2019/2020 meher season.
  • Central Statistical Agency. (2021). The federal democratic republic of Ethiopia central statistical agency farm management practices (private peasant holdings, Meher season) statistical bulletin. https://www.csa.gov.et
  • Chakraborty, D. (2009). Contract farming in India. Review of Market Integration, 1(1), 83–102. https://doi.org/10.1177/097492920900100105
  • Coase, R. (1937). The nature of the firm. Economica, 4(16), 386–405. https://doi.org/10.1111/j.1468-0335.1937.tb00002.x
  • DiFalco, S., Veronesi, M., & Yesuf, M. (2011). Does adaptation to climate change provide food security? A micro-perspective from Ethiopia. American Journal of Agricultural Economics, 93(3), 825–842. https://doi.org/10.1093/ajae/aar006
  • Donkor, E., & Owusu, V. (2019). Mineral fertiliser adoption and land productivity: Implications for securing stable rice production in Northern Ghana. Land, 8(4), 1–13. https://doi.org/10.3390/land8040059
  • Dube, E. G. (2019). Analysis of farmers resource use efficiency on malt barley production and its impact on food security in lemuna-bilbilo wereda, Ethiopia.
  • Eshetu, F., Haji, J., Ketema, M., & Mehare, A. (2022). Impact of rural out-migration on technical efficiency of wheat and teff producers in Southern Ethiopia impact of rural out-migration on technical efficiency of wheat and teff producers in Southern Ethiopia. https://doi.org/10.21203/rs.3.rs-1870409/v1
  • Ethiopian Agricultural Transformation Agency. (2017). Transforming agriculture in Ethiopia 2016/17. Annual Report,
  • Ferede, M., Demsie, Z., & Tejada Moral, M. (2020). Participatory evaluation of malt barley (Hordium disticum L.) varieties in barley-growing highland areas of Northwestern Ethiopia. Cogent Food and Agriculture, 6(1), 1–15. https://doi.org/10.1080/23311932.2020.1756142
  • Flores, M., & Holtland, G. (2017). Contract farming in Ethiopia: Concept and practice.
  • Food and Agriculture Organization. (2018). FAOSTAT Database, Retrieved Invalid Date 2018 from www.faostat.org.
  • Food and Agriculture Organization. (2021). FAOSTAT Database, Retrieved Invalid Date 2023 from www.faostat.org/.
  • Fuglie, K. O., & Bosch, D. J. (1995). Economic and environmental implications of soil Nitrogen testing: A switching-regression analysis. American Journal of Agricultural Economics, 77(4), 891–900. https://doi.org/10.2307/1243812
  • Ganewo, Z., Balguda, T., Alemu, A., Mulugeta, M., Legesse, T., Kaske, D., & Ashebir, A. (2022). Are smallholder farmers benefiting from malt barley contract farming engagement in Ethiopia? Agriculture & Food Security, 11(1). https://doi.org/10.1186/s40066-022-00396-z
  • Girma, M., & Gardebroek, K. (2015). Impact of contract farming on household income of smallholder farmers: The case of organic honey production in South West Ethiopia, Sheka Zone. [ MSc Thesis], Wageningen University and Research.
  • Global Agriculture Information Network. (2021) . Assessments of commodity and trade issues made by USDA staff and not necessarily statements of official U.S. Government policy.
  • Gondar Malt Factory. (2021). Annual report,
  • Greene, W. (2008). A stochastic frontier model with correction for sample selection. http://ssrn.com/abstract=1120973URLwww.stern.nyu.edu/~wgreene.Electroniccopyavailableat:https://ssrn.com/abstract=1120973Electroniccopyavailableat:http://ssrn.com/abstract=1120973
  • Hannah, R. (2022). Increasing agricultural productivity across SSA. Our world in data.
  • Heckman, J. J., Vytlacil, E., Avelino, R., Robin, J.-M., Urzua, S., & Kilenthong, W. (2005). Structural equations, treatment effects, and econometric policy evaluation 1. Econometrica, 73(3), 669–738. https://doi.org/10.1111/j.1468-0262.2005.00594.x
  • Hobbs, J. E. (1996). A transaction cost approach to supply chain management. Supply Chain Management: An International Journal, 1(2), 15–27. https://doi.org/10.1108/13598549610155260
  • Imbens, G. W. (2004). Nonparametric estimation of average treatment effects under exogeneity: A review. The Review of Economics and Statistics, 86(1), 4–29. https://doi.org/10.1162/003465304323023651
  • Imbens, G. W., & Angrist, J. D. (1994). Identification and estimation of local average treatment effects. Econometrica, 62(2), 467–475. https://doi.org/10.2307/2951620
  • International Center for Agricultural Research in the Dry Areas. (2019). Seed Info: Official newsletter of West Asia and North Africa (WANA) seed network. Issue No. 56, Seed Section, ICARDA, P. O. Box 114/5055. https://hdl.handle.net/20.500.11766/12906
  • International trade Administration. (2022). Ethiopia- a country commercial guideline. https://www.trade.gov/country-commercial-guides/ethiopia-market-overview
  • Jaleta, M., Kassie, M., Marenya, P., Yirga, C., & Erenstein, O. (2018). Impact of improved maize adoption on household food security of maize producing smallholder farmers in Ethiopia. Food Security, 10(1), 81–93. https://doi.org/10.1007/s12571-017-0759-y
  • Kassie, M., Teklewold, H., Marenya, P., Jaleta, M., & Erenstein, O. (2015). Production risks and food security under alternative technology choices in Malawi: Application of a multinomial endogenous switching regression. Journal of Agricultural Economics, 66(3), 640–659. https://doi.org/10.1111/1477-9552.12099
  • Khanal, A. R., Mishra, A. K., Finance, A., & Marley, E. (2018). Impacts of contract farming decisions on high value crop production of smallholder Nepalese farmers: A multinomial endogenous switching regression approach.
  • Khanal, U., Wilson, C., Lee, B. L., & Hoang, V. N. (2018). Climate change adaptation strategies and food productivity in Nepal: A counterfactual analysis. Climatic Change, 148(4), 575–590. https://doi.org/10.1007/s10584-018-2214-2
  • Khonje, M., Manda, J., Alene, A. D., & Kassie, M. (2015). Analysis of adoption and impacts of improved maize varieties in Eastern Zambia. World Development, 66, 695 706–706. https://doi.org/10.1016/j.worlddev.2014.09.008
  • Little, P., & Watts, M. (1994). Living under contract: Contract farming and agrarian transformation in sub-Saharan Africa. The University of Wiscousin Press.
  • Lokshin, M., & Sajaia, Z. (2004). Maximum likelihood estimation of endogenous switching regression models. Stata Journal, 4(3), 282–289. https://doi.org/10.1177/1536867X0400400306
  • Louhichi, K., Temursho, U., Colen, L., Gómez, Y., Paloma, S., & Kommission Gemeinsame Forschungsstelle, E. (2019). Upscaling the productivity performance of the agricultural commercialization cluster initiative in Ethiopia an assessment using a farm household level model.
  • Louviere, J. J., Hensher, D. A., Swait, J. D., & Adamowicz, W. (2000). Stated choice methods. Cambridge University Press. https://doi.org/10.1017/CBO9780511753831
  • Maddala, G. S. (1983). Limited dependent and qualitative variables in econometrics. U K, Cambridge University Press. https://doi.org/10.1017/CBO9780511810176
  • Maddala, G. S. (1986). Switching regression models and estimation.
  • Maddala, G. S., & Nelson, F. D. (1975). Switching regression models with exogenous and endogenous switching, Proceedings of the American Statistical Association, Business and Economics Section, Atlanta, Georgia, (5), 423–426. Atlanta,Georgia, August 25- 28, 1975
  • Maertens, M., & Vande Velde, K. (2017). Contract-farming in staple food chains: the case of rice in benin. World Development, 95, 73–87. https://doi.org/10.1016/j.worlddev.2017.02.011
  • Mathewos, T., Temesgen, D., Hamza, D., Fesseha, H., & Tang, Y. (2021). Determinants of smallholder farmers’ participation in improved sheep production: The case of Doyogena District, Kembata Tembaro Zone, Southern Ethiopia. Advances in Agriculture, 2021, 1–17. https://doi.org/10.1155/2021/5514315
  • Minot, N. (2011). Food security in Africa: Market and trade policy for staple foods in Eastern and Southern Africa. European Review of Agricultural Economics, 38(2), 289–291. https://doi.org/10.1093/erae/jbr019
  • Minten, B., Randrianarison, L., & Swinnen, J. F. M. (2009). Global retail chains and poor farmers: Evidence from madagascar. World Development, 37(11), 1728–1741. https://doi.org/10.1016/j.worlddev.2008.08.024
  • Mishra, A. K., Kumar, A., Joshi, P. K., D’Souza, A., & Tripathi, G. (2018). How can organic rice be a boon to smallholders? Evidence from contract farming in India. Food Policy, 75, 147–157. https://doi.org/10.1016/j.foodpol.2018.01.007
  • Mpeta, D. ; J, K. ; B, S. (2018). Analysis of contract farming effects on efficiency and productivity of small-scale sunflower farmers in Tanzania – a propensity score method approach. Acta Scientiarum Polonorum Oeconomia, 17(1), 75–84. https://doi.org/10.22630/ASPE.2018.17.1.9
  • Mulatu, G., Haji, J., Legesse, B., & Ketema, M. (2017). Impact of participation in vegetables’ contract farming on household’s income in the central rift valley of Ethiopia. American Journal of Rural Development, 5(4). https://doi.org/10.12691/ajrd-5-4-15490–96
  • Mutonyi, S. (2019). The effect of collective action on smallholder income and asset holdings in Kenya. World Development Perspectives, 14, 100099. https://doi.org/10.1016/j.wdp.2019.02.010
  • National Bank of Ethiopia. (2017). National Bank of Ethiopia 2016 2017 annual report. http://www.nbe.gov.et
  • Nguyen, A. T. (2020). Does contract farming enhance income of farmers? Evidence in tea production of Vietnam. Journal of Agricultural Sciences – Sri Lanka, 15(1), 37–49. https://doi.org/10.4038/jas.v15i1.8670
  • Nguyen, A. T., Dzator, J., & Nadolny, A. (2018). Contract farming, agriculture productivity and poverty reduction: Evidence from tea estates in Viet Nam. Asia-Pacific Sustainable Development Journal, 25(1), 109–145. https://doi.org/10.18356/b18dd784-en
  • NGZ (north Gondar Zone). (2020). Annual agricultural production performance report.
  • NMA (National Meteorological Agency). (2011) . Annual climatic bulletin for the year 2011. National Metrological Agency of Ethiopia.
  • NPC (National Planning Commission). (2016). Federal democratic republic of Ethiopia Growth and Transformation Plan II (GTP II). https://www.cmpethiopia.org/content/download/2305/9763/file/GTP%20II%20Policy%20Matrix%20(English)%20Final%20_August%202016-2.pdf
  • Olounlade, O. A., Li, G. C., Kokoye, S. E. H., Dossouhoui, F. V., Akpa, K. A. A., Anshiso, D., & Biaou, G. (2020). Impact of participation in contract farming on smallholder farmers’ income and food security in rural Benin: PSM and LATE parameter combined. Sustainability (Switzerland), 12(3). https://doi.org/10.3390/su12030901123901
  • Ragasa, C., Lambrecht, I., & Kufoalor, D. S. (2018). Limitations of contract farming as a pro-poor strategy: The case of maize out-grower schemes in upper West Ghana. World Development, 102, 30–56. https://doi.org/10.1016/j.worlddev.2017.09.008
  • Rao, E. J. O., & Qaim, M. (2011). Supermarkets, farm household income, and poverty: Insights from Kenya. World Development, 39(5), 784–796. https://doi.org/10.1016/j.worlddev.2010.09.005
  • Rashid, S., Abate, G., Lemma, S., Warner, J., Kasa, L., & Minot, N. (2015). The barley value chain in Ethiopia. International Food Policy Research Institute (IFPRI). http://ebrary.ifpri.org/cdm/ref/collection/p15738coll2/id/130012
  • Rondhi, M., Aji, J. M. M., Khasan, A. F., & Yanuarti, R. (2020). Factors affecting farmers’ participation in contract farming: The case of broiler sector in Indonesia. Tropical Animal Science Journal, 43(2), 183–190. https://doi.org/10.5398/TASJ.2020.43.2.183
  • Seba, S. T. (2016). Impact of contract farming on smallholders in Ethiopia: The case of chickpea growers.
  • Shiferaw, S., Haji, J., Ketema, M., & Sileshi, M. (2022). Technical, allocative and economic efficiency of malt barley producers in Arsi zone, Ethiopia. Cogent Food and Agriculture, 8(1), 1–17. https://doi.org/10.1080/23311932.2022.2115669
  • Slangen, L., Loucks, L., & Slangen, A. (2008). Institutional economics and economic organisation theory: An integrated approach. Wageningen Academic Publishers.
  • Sosina Bezu, G. K. B. S., J, R.-G., Shiferaw, B., & Ricker-Gilbert, J. (2014). Impact of improved maize adoption on welfare of farm households in Malawi: A panel data analysis. World Development, 59(c), 120–131. https://doi.org/10.1016/j.worlddev.2014.01.023
  • Swinnen, J., & Kuijpers, R. (2019). Value chain innovations for technology transfer in developing and emerging economies: Conceptual issues, typology, and policy implications. Food Policy, 83(c), 298–309. https://doi.org/10.1016/j.foodpol.2017.07.013
  • Tadesse, D., & Derso, B. (2019). The status and constraints of food barley production in the North Gondar highlands, North Western Ethiopia. Agriculture & Food Security, 8(1), 1–7. https://doi.org/10.1186/s40066-018-0248-3
  • Tefera, D. A., & Bijman, J. (2021). Economics of contracts in African food systems: Evidence from the malt barley sector in Ethiopia. Agricultural and Food Economics, 9(1), 1–21. https://doi.org/10.1186/s40100-021-00198-0
  • Ton, G., Desiere, S., Vellema, W., Weituschat, S., & D’Haese, M. (2017). The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: A systematic review. Campbell Systematic Reviews, 13(1), 1–131. https://doi.org/10.4073/csr.2017.13
  • Verpoorten, M. (2009). Household coping in war- and peacetime: Cattle sales in Rwanda, 1991-2001. Journal of Development Economics, 88(1), 67–86. https://doi.org/10.1016/j.jdeveco.2008.01.003
  • Wang, H. H., Wang, Y., & Delgado, M. S. (2014). The transition to modern agriculture: Contract farming in developing economies. American Journal of Agricultural Economics, 96(5), 1257–1271. https://doi.org/10.1093/ajae/aau036
  • Wendimu, M. A., Henningsen, A., & Gibbon, P. (2016). Sugarcane Out-growers in Ethiopia: “Forced” to Remain Poor? World Development, 83, 84–97. https://doi.org/10.1016/j.worlddev.2016.03.002
  • White, H. (1982). Maximum likelihood estimation of mis-specified models. Econometrica, 50(1), 1–25. https://doi.org/10.2307/1912526
  • Wiggins, S., & Keats, S. (2013). Leaping and learning linking smallholders to markets. Agriculture for impact Imperial College London 15 Princes Gardens. SW7 1NA. www.stevendickie.com/design
  • Williamson, O. E. (1989). Chapter 3 transaction cost economics. Handbook of Industrial Organization, 1. https://doi.org/10.1016/S1573-448X(89)01006-X
  • Wilson, J. (1986). The political economy of contract farming. Review of Radical Political Economics, 18(4), 47–70. https://doi.org/10.1177/048661348601800403
  • Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data.
  • World Bank. (2021) . World bank data. Retrieved from GDP per capita (current US$) - Ethiopia. Data (worldbank.org).
  • Yami, M., Tesfaye, T., & Bekele, A. (2013). Determinants of farmers’ participation decision on local seed multiplication in Amhara region, Ethiopia: A double hurdle approach. International Journal of Science and Research, 2(1), 2319–7064.
  • Yeshitila, M., Isriya, B., Prapinwadee, S., & Auttapol, S. (2020). The impact of contract farming on technical efficiency in Ethiopia’s smallholder sesame production. Journal of the Austrian Society of Agricultural Economics, 16(4), 57–66.