International Food Policy Research Institute/ Ethiopia Strategy Support Program (IFPRI/ ESSP)and Ethiopian Development Research Institute (EDRI) Coordinated a conference with Agriculutral Transformation Agency (ATA) and Ministry of Agriculutrue (MoA) on Teff Value Chain at Hilton Hotel Addis Ababa on October 10, 2013.
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Cooperatives, urban proximity, and efficiency in teff production
1. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Cooperatives, urban proximity, and efficiency in
teff production
Getu Hailu 1 and Bart Minten 2
1University of Guelph, Food, Agricultural and Resource Economics
2International Food Policy Research Institute, Ethiopia Strategy Support Program
Conference on improved evidence towards better policies for the
teff value chain
Thursday October 10th, 2013, Hilton, Addis Ababa
2. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Motivation
Motivations
Food security
Trade and competitiveness
Cooperatives and community groups
Investment in road construction, R&D
Benefits of urban proximity - agglomeration economies
Mechanisms
Technology adoptions
Increase in scale of operation
Improvement in efficiency or management of technology
3. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Research questions
Does co-operative membership have effect on technical
efficiency of teff producers?
Does proximity to urban areas have effect on technical
efficiency of teff producers?
Do participation in teff producer community meetings have
effect on technical efficiency of teff producers?
4. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Data and method
Survey of teff producers in major producing areas: 1,200 teff
farmers were selected, 240 farmers per zone (i.e., East Gojjam,
West Gojjam, East Shoa, West Shoa, South West Shoa)
Teff inputs (e.g., seed, fertilizer) and output
Plot and farmer characteristics
Land (plot) productivity is measured as teff yield per hectare
productivity =
Teff output
land input
(1)
Technical efficiency is measured using stochastic frontier: a
measure of best management practice for a given technology
5. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Land productivity distribution (Quintal per ha)
6. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Seed variety and land productivity (Quintal per ha)
East
Gojjam
West
Gojjam
East
Shoa
West
Shoa
S.West
Shoa
All
Quncho 17 13 16 10 9 14
Traditional 14 10 11 9 7 10
Diff (%) 18 37 44 7 24 35
7. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Co-operatives, community meetings and land productivity
Agricultural
Cooperatives
East
Gojjam
West
Gojjam
East
Shoa
West
Shoa
S. West
Shoa
Member 13.94 11.67 12.20 9.14 7.86
Not member 13.86 8.26 11.16 8.46 7.88
Diff(%) 0.57 41.28 9.31 7.99 -0.26
Community
meetings
< 5meetings 13.73 9.77 11.62 8.87 7.69
≥ 5meetings 14.68 13.67 12.91 8.63 8.89
Diff(%) 6.96 39.95 11.10 -2.68 15.58
8. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Proximity to market and productivity
Market
East
Gojjam
West
Gojjam
East
Shoa
West
Shoa
S. West
Shoa
< 100min 14.05 11.43 12.48 9.43 7.71
≥ 100min 13.65 6.27 10.53 8.27 8.27
Diff(%) 2.89 82.46 18.53 14.12 -6.72
All
Weather
East
Gojjam
West
Gojjam
East
Shoa
West
Shoa
S West
Shoa
< 100min 14.76 11.66 11.76 8.86 7.77
≥ 100min 11.08 7.30 10.80 8.67 8.61
Diff(%) 33.17 59.61 8.91 2.15 -9.79
9. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Factor affecting teff land productivity
Seed: variety (Quncho) and color (Magna) (+)
Fertilizer: DAP and UREA (+)
Location: east Gojjam higher yield per hectare (+)
Ploughing: ease and frequency (+)
Producer club: participation in teff related community
meetings (+)
Urban proximity: proximity to market and all weather road
(+)
Mobile phone ownership (+)
Transport: donkey ownership (+)
Household head age (−)
10. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Teff producers’ technical efficiency distribution
11. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Cooperatives, community meetings and technical efficiency
Coop
Member
East
Gojjam
West
Gojjam
East
Shoa
West
Shoa
S West
Shoa
member 72.37 72.93 73.83 77.45 74.23
Not member 69.13 67.12 73.80 77.60 75.55
Diff(%) 3.24 5.81 0.03 -0.15 -1.31
Club
Member
East
Gojjam
West
Gojjam
East
Shoa
West
Shoa
S West
Shoa
≥ meetings 76.00 76.47 78.80 79.22 79.23
< 5meetings 70.79 69.66 73.58 77.08 73.90
Diff(%) 5.21 6.81 5.22 2.15 5.34
12. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Proximity and technical efficiency
Market
East
Gojjam
West
Gojjam
East
Shoa
West
Shoa
S West
Shoa
≥ 100 72.79 65.03 73.44 75.74 75.55
< 100 71.33 72.25 74.08 79.53 74.24
Diff(%) 1.46 -7.22 -0.64 -3.79 1.31
All weather
≥ 100 65.98 65.84 70.10 77.05 73.96
< 100 73.33 72.81 74.12 77.65 74.66
Diff(%) -7.35 -6.97 -4.03 -0.60 -0.70
13. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Factors affecting technical efficiency
Producer Club: participation in teff related community
meetings (+)
Urban proximity: proximity to market and all weather road
(+)
Mobile phone ownership (+)
Transport: Donkey ownership
Household head age (−)
Being a model farmer (+)
14. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Major findings
Potential gains from improvement in land productivity
On average, Teff land productivity is 10% higher for improved
variety (i.e., Quncho)
Grains from efficiency of resource management is also
important, on average, approximately 25% inefficiency
Farm community discussion groups - clubs - have important
implication for improvement in productivity
Proximity to market, all weather road, and input suppliers
enhance productivity
Ownership of communication technology (i.e., mobile phone)
On farm transportation means (i.e., donkey)
15. Introduction Results 1: Land productivity Results 2: Technical efficiency Summary of major findings and conclusions
Take-home message
Enhancing timely access to improved seeds and chemical
fertilizer in land productivity
Providing technical support on best management practices of
the existing production technologies or processes
Encouraging the formation and providing support for farm
community discussion groups- producer clubs
Continued investment in R&D, road and other communication
infrastructures
