IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/348008.html
   My bibliography  Save this article

Welfare effects of small-scale farmers' participation in apple and mango value chains in Ethiopia

Author

Listed:
  • Mossie, Mengistie
  • Gerezgiher, Alemseged
  • Ayalew, Zemen
  • Nigussie, Zerihun

Abstract

This study examines the effects of participation in the fruit value chain on small-scale farmers' economic welfare in Ethiopia's Upper-Blue Nile Basin, focusing on apple and mango crops. This household economic welfare is measured by the consumption expenditure approach. Primary data were collected from a random sample of 384 households, 211 of which are fruit value chain participants and the rest are non-participants. The endogenous switching regression model was used to control for selection bias and unobserved heterogeneity. The study finds that the more apple and mango farmers join the value chain, the higher their consumption expenditure becomes. On average, the apple and mango value chain participation increased household consumption expenditure by about 17% and 18.5%, respectively. Overall, the results indicate a positive economic welfare effect of small-scale farmer participation. Hence, supporting small-scale farmers is imperative and a reasonable policy approach to improve their economic welfare in rural Ethiopia.

Suggested Citation

  • Mossie, Mengistie & Gerezgiher, Alemseged & Ayalew, Zemen & Nigussie, Zerihun, 2021. "Welfare effects of small-scale farmers' participation in apple and mango value chains in Ethiopia," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 60(2), May.
    • Handle: RePEc:ags:agreko:348008
    DOI: 10.22004/ag.econ.348008
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/348008/files/Welfare%20effects%20of%20small-scale%20farmers%20%20participation%20in%20apple%20and%20mango%20value%20chains%20in%20Ethiopia.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.348008?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. Edward Martey & Prince M. Etwire & Alexander Nimo Wiredu & Benjamin D. K. Ahiabor, 2017. "Establishing the link between market orientation and agricultural commercialization: Empirical evidence from Northern Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(4), pages 849-866, August.
    2. Kebede Manjur Gebru & Maggi Leung & Crelis Rammelt & Annelies Zoomers & Guus van Westen, 2019. "Vegetable Business and Smallholders’ Food Security: Empirical Findings from Northern Ethiopia," Sustainability, MDPI, vol. 11(3), pages 1-28, January.
    3. Joseph Clougherty & Tomaso Duso, 2015. "Correcting for Self-Selection Based Endogeneity in Management Research: A Review and Empirical Demonstration," Discussion Papers of DIW Berlin 1465, DIW Berlin, German Institute for Economic Research.
    4. Raoul Herrmann & Ephraim Nkonya & Anja Faße, 2018. "Food value chain linkages and household food security in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 827-839, August.
    5. Nyein Nyein Kyaw & Soojung Ahn & Sang Hyeon Lee, 2018. "Analysis of the Factors Influencing Market Participation among Smallholder Rice Farmers in Magway Region, Central Dry Zone of Myanmar," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    6. Enock Warinda & Dickson M. Nyariki & Stephen Wambua & Reuben Muasya, 2020. "Impact of smallholder farmers’ welfare through participation in on-farm regional projects in East Africa," Agrekon, Taylor & Francis Journals, vol. 59(1), pages 16-29, January.
    7. Seng, Kimty, 2016. "The Effects of Market Participation on Farm Households’ Food Security in Cambodia: An endogenous switching approach," MPRA Paper 69669, University Library of Munich, Germany.
    8. Luitfred Kissoly & Anja Faße & Ulrike Grote, 2017. "The integration of smallholders in agricultural value chain activities and food security: evidence from rural Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1219-1235, December.
    9. Reardon, Thomas & Echeverria, Ruben & Berdegué, Julio & Minten, Bart & Liverpool-Tasie, Saweda & Tschirley, David & Zilberman, David, 2019. "Rapid transformation of food systems in developing regions: Highlighting the role of agricultural research & innovations," Agricultural Systems, Elsevier, vol. 172(C), pages 47-59.
    10. Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
    11. David Tschirley & Thomas Reardon & Michael Dolislager & Jason Snyder, 2015. "The Rise of a Middle Class in East and Southern Africa: Implications for Food System Transformation," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 628-646, July.
    12. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    13. Steve Wiggins, 2014. "African Agricultural Development: Lessons and Challenges," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(3), pages 529-556, September.
    14. Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
    15. Abro, Zewdu Ayalew & Alemu, Bamlaku Alamirew & Hanjra, Munir A., 2014. "Policies for Agricultural Productivity Growth and Poverty Reduction in Rural Ethiopia," World Development, Elsevier, vol. 59(C), pages 461-474.
    16. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, April.
    17. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    18. Frank Mmbando & Edilegnaw Wale & Lloyd Baiyegunhi, 2015. "Welfare impacts of smallholder farmers’ participation in maize and pigeonpea markets in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1211-1224, December.
    19. Andre Devaux & Maximo Torero & Jason Donovan & Douglas Horton, 2018. "Agricultural innovation and inclusive value-chain development: a review," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 8(1), pages 99-123, March.
    20. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
    21. Asfaw, Solomon & Shiferaw, Bekele & Simtowe, Franklin & Lipper, Leslie, 2012. "Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia," Food Policy, Elsevier, vol. 37(3), pages 283-295.
    22. Julius Manda & Makaiko G. Khonje & Arega D. Alene & Therese Gondwe, 2017. "Welfare impacts of improved groundnut varieties in eastern Zambia: A heterogeneous treatment effects approach," Agrekon, Taylor & Francis Journals, vol. 56(4), pages 313-329, October.
    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. Tufa, Adane Hirpa & Alene, Arega D. & Manda, Julius & Akinwale, M.G. & Chikoye, David & Feleke, Shiferaw & Wossen, Tesfamicheal & Manyong, Victor, 2019. "The productivity and income effects of adoption of improved soybean varieties and agronomic practices in Malawi," World Development, Elsevier, vol. 124(C), pages 1-1.
    2. Backson Mwangi & Ibrahim Macharia & Eric Bett, 2021. "Ex-post Impact Evaluation of Improved Sorghum Varieties on Poverty Reduction in Kenya: A Counterfactual Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(2), pages 447-467, April.
    3. Song, Chunxiao & Liu, Ruifeng & Oxley, Oxley & Ma, Hengyun, 2018. "The adoption and impact of engineering-type measures to address climate change: evidence from the major grain-producing areas in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), October.
    4. Negash, Martha & Swinnen, Johan F.M., 2013. "Biofuels and food security: Micro-evidence from Ethiopia," Energy Policy, Elsevier, vol. 61(C), pages 963-976.
    5. Garbero, A. & Marion, P., 2018. "IFAD RESEARCH SERIES 28 - Understanding the dynamics of adoption decisions and their poverty impacts: the case of improved maize seeds in Uganda," IFAD Research Series 280077, International Fund for Agricultural Development (IFAD).
    6. Tezera W. Meskel & Mengistu Ketema & Jema Haji & Lemma Zemedu, 2021. "Welfare Impact of Moringa Market Participation in Southern Ethiopia," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 9(3), pages 1-98, December.
    7. Hambulo Ngoma, 2018. "Does minimum tillage improve the livelihood outcomes of smallholder farmers in Zambia?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(2), pages 381-396, April.
    8. Beatrice W. Muriithi & Kassie Menale & Gracious M. Diiro & Michael N. Okal & Daniel K. Masiga, 2023. "Effect of use of tsetse repellant collar technology on the farm performance and household welfare of small-scale livestock farmers in Kenya," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(3), pages 751-770, June.
    9. Huma Neupane & Krishna P. Paudel & Qinying He, 2023. "Impact of cooperative membership on market performance of Nepali goat farmers," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 805-830, September.
    10. Musa Hasen Ahmed & Hiwot Mekonnen Mesfin, 2017. "The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: empirical evidence from eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.
    11. Dadan Wardhana & Rico Ihle & Wim Heijman, 2020. "Farmer cooperation in agro‐clusters: Evidence from Indonesia," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 725-750, October.
    12. Khonje, Makaiko & Mkandawire, Petros & Manda, Julius & Alene, Arega, 2015. "Analysis of adoption and impacts of improved cassava varieties," 2015 Conference, August 9-14, 2015, Milan, Italy 211842, International Association of Agricultural Economists.
    13. Federico Antonioli & Simone Severini & Mauro Vigani, 2023. "Visa for competitiveness: foreign workforce and Italian dairy farms’ performance," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(1), pages 115-150.
    14. Mohammad Mahbubur Rahman & Jeffry D. Connor, 2022. "Impact of Agricultural Extension Services on Fertilizer Use and Farmers’ Welfare: Evidence from Bangladesh," Sustainability, MDPI, vol. 14(15), pages 1-16, July.
    15. Feng Xiao & Meng Weidong & Huang Bo, 2021. "Research on Innovation Signals and Feedbacks between SMEs and the Government," Entrepreneurship Research Journal, De Gruyter, vol. 11(2), pages 71-98, April.
    16. Gao, Yang & Niu, Ziheng & Yang, Haoran & Yu, Lili, 2019. "Impact of green control techniques on family farms' welfare," Ecological Economics, Elsevier, vol. 161(C), pages 91-99.
    17. Tambo, Justice A. & Wünscher, Tobias, 2016. "Beyond adoption: welfare effects of farmer innovation behavior in Ghana," Discussion Papers 235297, University of Bonn, Center for Development Research (ZEF).
    18. Doris Läpple & Thia Hennessy & Carol Newman, 2013. "Quantifying the Economic Return to Participatory Extension Programmes in Ireland: an Endogenous Switching Regression Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 467-482, June.
    19. Tanimonure, Victoria Adeyemi, 2021. "Impact of Climate Adaptation Strategies on the Net Farm Revenue of Underutilized Indigenous Vegetables’ (UIVs) Production in Southwest Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315903, International Association of Agricultural Economists.
    20. Issahaku, Gazali & Abdulai, Awudu, "undated". "Adaptation to Climate Change and its influence on Household Welfare in Ghana," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259938, Agricultural and Applied Economics Association.

    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:348008. 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.