Linking small-scale farmers to the durum wheat value chain in Ethiopia: assessing the effects on production and wellbeing

Biggeri, Mario / Francesco Burchi / Federico Ciani / Raoul Herrmann
External Publications (2018)

in: Food Policy 79 (August), 77-91

DOI: https://doi.org/10.1016/j.foodpol.2018.06.001
Information

Food security and agricultural-led industrialisation are pivotal development objectives in Ethiopia. One of the main challenges this country faces is increasing agricultural productivity by integrating smallholder farmers into a high-value agricultural commodity supply chain. This paper examines an integrated project—the Agricultural Value Chains Project in Oromia (AVCPO)—that aims to improve the livelihoods of smallholders in the Bale Zone by involving them in the production of high-quality durum wheat and linking them to the pasta industry via farmers’ cooperatives. Using primary data collected in 2014 and retrospective information, this paper investigates the AVCPO’s effects on the quantity of cereal production, the share of cereals that have been sold through cooperatives, food security, and education. In order to account for potential violations of the exclusion restriction assumption, an instrumental variable approach is applied, together with three additional estimation strategies. 
The results suggest that the project has had a large and positive effect on gross and net values of cereal production per hectare, as well as on the share of production sold to pasta makers through cooperatives. These benefits accrue equally to land-rich and land-poor farmers. Furthermore, our analysis suggests that the AVCPO has improved educational outcomes and reduced food insecurity, without affecting crop rotation practices. Overall, our findings point to the effectiveness of the project. Before replicating or scaling up this intervention, however, it is necessary to understand how to better involve poorer farmers and which adjustments are needed if the areas selected have a lower potential than Bale Zone.

About the author

Burchi, Francesco

Development Economy

Burchi

Further experts

Balasubramanian, Pooja

Social Economics 

Brüntrup, Michael

Agricultural Economy 

Dick, Eva

Sociologist and Spatial Planner 

Donnelly, Aiveen

Politcal Science 

Faus Onbargi, Alexia

Political Science 

Gubbini, Emily

Social Science 

Malerba, Daniele

Economy 

Mudimu, George Tonderai

Agricultural policy economics 

Rukundo, Emmanuel Nshakira

Development Economics 

Sakketa, Tekalign Gutu

Agricultural / Development Economics