IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/246023.html
   My bibliography  Save this article

Market Incentives, Farmers’ Response And A Policy Dilemma: A Case Study Of Chat Production In The Eastern Ethiopian Highlands

Author

Listed:
  • Tefera, TL
  • Kirsten, JF
  • Perret, S

Abstract

This paper discusses the reasons for and effects of the dramatic expansion of chat production as a cash crop in the Hararghe Highlands of Ethiopia. Despite the Ministry of Agriculture’s deliberate attempt to discourage chat production, farmers continue to shift their scarce resources into chat production. Using data generated by a rural livelihood survey from 197 randomly selected households, economic and non-economic factors contributing to the expansion of chat production are identified and its food and nutritional security impact analysed. The case study confirms once more the power of market incentives in encouraging agricultural activity of peasant farmers even in the absence of functional research and extension systems. The case study shows that households producing chat have good food security status and thus the situation presents a policy dilemma: Should the government promote or discourage chat production?

Suggested Citation

  • Tefera, TL & Kirsten, JF & Perret, S, 2003. "Market Incentives, Farmers’ Response And A Policy Dilemma: A Case Study Of Chat Production In The Eastern Ethiopian Highlands," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 42(3).
    • Handle: RePEc:ags:agreko:246023
    DOI: 10.22004/ag.econ.246023
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/246023/files/42_3_3.%20chat%20article%2002031.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.246023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:idb:brikps:21138 is not listed on IDEAS
    2. Garrett, James L. & Ruel, Marie T., 1999. "Are Determinants of Rural and Urban Food Security and Nutritional Status Different? Some Insights from Mozambique," World Development, Elsevier, vol. 27(11), pages 1955-1975, November.
    3. World Bank, 2000. "The World Bank Annual Report 2000," World Bank Publications - Books, The World Bank Group, number 13935.
    4. Kennedy, Eileen & Bouis, Howarth & von Braun, Joachim, 1992. "Health and nutrition effects of cash crop production in developing countries: A comparative analysis," Social Science & Medicine, Elsevier, vol. 35(5), pages 689-697, September.
    5. Blanken, Juergen & Haen, Hartwig de & von Braun, Joachim, 1991. "Commercialization of agriculture under population pressure: effects on production, and nutrition in Rwanda," Research reports 85, International Food Policy Research Institute (IFPRI).
    6. Unknown, 2000. "Annual Report On Cotton Economics Research 1999/00," Cotton Economics Research Institute CER Series 31253, Texas Tech University, Department of Agricultural and Applied Economics.
    7. Unknown, 2001. "Annual Report On Cotton Economics Research 2000/2001," Cotton Economics Research Institute CER Series 31252, Texas Tech University, Department of Agricultural and Applied Economics.
    8. World Bank, 2000. "The World Bank Annual Report 2000," World Bank Publications - Books, The World Bank Group, number 13936.
    9. Garrett, James L. & Ruel, Marie T., 1999. "Are determinants of rural and urban food security and nutritional status different?," FCND discussion papers 65, International Food Policy Research Institute (IFPRI).
    10. anonymous, 2000. "Annual report highlights the Atlanta Fed at work," Financial Update, Federal Reserve Bank of Atlanta, vol. 13(Jul), pages 1-5.
    11. Johann Kirsten & Robert Townsend & Chris Gibson, 1998. "Determining the contribution of agricultural production to household nutritional status in KwaZulu-Natal, South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 15(4), pages 573-587.
    12. World Bank, 2001. "The World Bank Annual Report 2001," World Bank Publications - Books, The World Bank Group, number 13934.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Gaskin & Juergen Attard & Karen Caruana, 2017. "Household finance and consumption survey in Malta: the results from the second Wave," CBM Working Papers WP/02/2017, Central Bank of Malta.
    2. repec:dau:papers:123456789/4294 is not listed on IDEAS
    3. Wardle, D. A., 2003. "Global sale of green air travel supported using biodiesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 7(1), pages 1-64, February.
    4. Nagesh Kumar, 2005. "Towards a Broader Asian Community : Agenda for the East Asia Summit," Macroeconomics Working Papers 22107, East Asian Bureau of Economic Research.
    5. Bocquier, Philippe & Nordman, Christophe J. & Vescovo, Aude, 2010. "Employment Vulnerability and Earnings in Urban West Africa," World Development, Elsevier, vol. 38(9), pages 1297-1314, September.
    6. Atta Ullah & Chen Pinglu & Saif Ullah & Noman Aslam & Mubasher Zaman, 2020. "Role of Microfinance in Poverty Alleviation in the Least Developed Area of Pakistan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(12), pages 1430-1452, December.
    7. Sanford, Jonathan E., 2002. "World Bank: IDA Loans or IDA Grants?," World Development, Elsevier, vol. 30(5), pages 741-762, May.
    8. Nomita P. Kumar & Achala Srivastava, 2021. "Measuring the Employment Vulnerability Among Female Workers in Uttar Pradesh," Indian Journal of Human Development, , vol. 15(2), pages 307-322, August.
    9. Phang, Sock-Yong & Wong, Wing-Keung & Chia, Ngee-Choon, 1996. "Singapore's experience with car quotas : Issues and policy processes," Transport Policy, Elsevier, vol. 3(4), pages 145-153, October.
    10. David Pottebaum & Ravi Kanbur, 2004. "Civil war, public goods and the social wealth of nations," Oxford Development Studies, Taylor & Francis Journals, vol. 32(4), pages 459-484.
    11. Barron, Andrew & Pereda, Asier & Stacey, Stephen, 2017. "Exploring the performance of government affairs subsidiaries: A study of organisation design and the social capital of European government affairs managers at Toyota Motor Europe and Hyundai Motor Com," Journal of World Business, Elsevier, vol. 52(2), pages 184-196.
    12. Marianna Neupauerová & Ján Vravec, 2007. "Monetary Strategies from the Perspective of Intermediate Objectives," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 54(2), pages 219-233, June.
    13. Sanford, Jonathan E., 2004. "IDA Grants and HIPC Debt Cancellation: Their Effectiveness and Impact on IDA Resources," World Development, Elsevier, vol. 32(9), pages 1579-1607, September.
    14. Mykel R. Taylor & Gary W. Brester, 2005. "Noncash Income Transfers and Agricultural Land Values," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(4), pages 526-541.
    15. Celine Sunny, 2005. "Domestic Violence Aganist Women In Ernakulam District," Working Papers id:99, eSocialSciences.
    16. Nkegbe, Paul Kwame & Abdul Mumin, Yazeed, 2022. "Impact of community development initiatives and access to community markets on household food security and nutrition in Ghana," Food Policy, Elsevier, vol. 113(C).
    17. Ning Zhu, 2002. "The Local Bias of Individual Investors," Yale School of Management Working Papers ysm272, Yale School of Management, revised 01 Sep 2009.
    18. Rafael de Sousa Camelo & Priscilla Albuquerque Tavares & Carlos César Santejo Saiani, 2009. "Alimentação, Nutrição e Saúde em Programas de Transferência de Renda: Evidências para o Programa Bolsa Família," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 10(4), pages 685-713.
    19. Pangaribowo, Evita Hanie & Tsegai, Daniel W., 2011. "Food Demand Analysis of Indonesian Households with Particular Attention to the Poorest," Discussion Papers 116748, University of Bonn, Center for Development Research (ZEF).
    20. Francesco Burchi, 2012. "Whose education affects a child’s nutritional status? From parents' to household's education," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 27(23), pages 681-704.
    21. Fanaye Tadesse & Headey, Derek, 2011. "Urbanization and Fertility Rates in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 19(2), November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:246023. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.