Mekelle University College of Business and Economics Departement of Economics
Mekelle University College of Business and Economics Departement of Economics
Mekelle University College of Business and Economics Departement of Economics
DEPARTEMENT OF ECONOMICS
ID.NO: CBE/UR78079/07
JUNE 2017
MEKELLE, ETHIOPIA
Acknowledgement
First and most I would like to thank the ALMIGHTY GOD who helped and support me through
my ups and downs in preparing this paper and my heartfelt gratitude goes to all those that helped
me in preparation of this research paper. My deepest heartfelt thanks expands to my advisor,
GEBREZGHER for his unrevised sparking tight academic schedule in providing me valuable
supervision, comments, guidance, moral support and advance on the essence and content of this
senior essay to be trust full in this form.
I must express a special gratitude to my lovely mother who always stands at my right side
providing every materials and financial help.
Finally I would like to thanks all my respondents who provide available information about the
study honestly.
ACRONYMS
Acknowledgement……………………….…………………………………………….i
Acronomy…………………………………………………………...............................ii
Abstract………………………………………………………………………………iii
List Of Table…………………………………………………………………………iv
Chapter One……………………………………………………….............................1
1. Introdution……..………………………………………………………………….1
Chapter Two……………………………………………………………………………..11
2. Literature Review…………………………………………………………………….11
2.1.1TheConceptofAgriculturalproductivity……………………………………….…1……
1…………
CHAPTER THREE…………………………………………………………………………
DATA ANALYSIS…………………………………………………………………………..
3.1
Abstract
The main constraints for the agricultural productivity arises in lack of credit access, shortage
land, inadequate rainfall, soil erosion, shortage improved seed, lack of pesticide use, lack oxen;
and mostly land management practiced crop rotation.
CHAPTER ONE
INTRODUCTION
The history of agricultural and rural development since the end of World War II in 1945 is
characterized by changing priorities and concerns. Immediately after this war and the widespread
Experience of serious malnutrition, there was a determined effort to increase food production in
developed world (Reimund et al., 2007).
The results of determined effort given for agricultural production in the post-World WarSecond
are, increased habits of various technologies such pesticides, herbicides and fertilizers as well as
new breads of high yield crops were employed after the second World War to greatlyincrease
global food production(FAO,2oo6).
Unlike other regions of the world productivity of agriculture per worker in Africa has declined
during the past twenty years. Rising productivity of agriculture per worker can make critical
contribution to economic growth and alleviation of poverty by generating the surpluses that can
be used for investment on agriculture and non-agriculture activities. Agricultural has been also
level or falling for many crops in many countries of Africa. Significantly yields of most
important food grains, tubers and legumes (maize, millet, sorghum, yams, cassava, ground nuts)
in most countries no higher today than 1980. Africa’s share of total world agricultural trade fell
from 8% in 1965 to 3% in 1996. Low productivity is the result of low investment in all factors
that contribute to agricultural productivity and effective use available resources. To correct the
problem will require Africa to significantly increase investment in agriculture. This in turn
requires that the profitability of agricultural investment be increased and so made attractive
(FAO, 2006).
Rural areas are home to 75 percent of Africa’s people, most of whom count agriculture as their
major source of income. Fortunately, Africa has experienced continuous agricultural growth
during the past few years. However, much of the growth has emanated from area expansion
rather than increases in land productivity. In most countries, future sustainable agricultural
growth will require a greater emphasis on productivity growth, a suitable area for new cultivation
declines, particularly given growing concerns about deforestation and climate change (IFPRI,
2012).
Sub-Saharan Africa is one of the world’s poorest regions. Its population and land area are
approximately three times that of the USA. The region’s economies are heavily dependent on
agriculture, which accounts for two-thirds of the labor force, 35% of GNP and 40% of foreign
exchange earnings. Productivity performance in the agricultural sector is thus critical to
improvement in overall economic well-being in Sub- Saharan Africa (Lilyan et al., 2004).
There are different priorities Africa working with the way forward to improve agricultural
productivity. For example, Comprehensive African agricultural Development Program (CAADP)
of NEPAD is directed at Africa’s policy makers in NEPADS own institutions at national policy
makers in both public and private sectors, at those who influence public opinion through
nongovernmental institutionat academic and think thanks concerned with Africa’s development
and at officials in development cooperation agencies of donor and material bodies. It prepared to
present broad themes of primary opportunity for investment to reverse the crises situation facing
Africa’s agriculture which has made the continent import dependent, vulnerable even small
vagaries of climate and dependent on an in ordinate degree on food aid.Its main contribution is in
sensitizing policy makers that they need that they need to act in selected fronts in order to make
to quick difference to Africa’s agricultural malaise (FAO, 2006).
Agriculture is the backbone of Ethiopian economy. There is no disagreement about dire situation
of Ethiopian agriculture. Agricultural output has fallen short of population growth for over two
decade. Despite an increasing productivity through introduction of improved inputs over the past
three decades, due to unavailable provision of those inputs the average output per hector of farm
land has not shown significant increase to warrant optimal about the sector in the foreseeable
future (Seifu, 2004).
Ethiopian agriculture development led industrialization strategy (ADLI) has the basic objective
of increasing agricultural production and productivity. Though agriculture is the crucial sector in
the national economy, its production and productivity in is unsatisfactory because of its
dominance on non-mechanized traditional agricultural system (EEA, 2009).
As agriculture play a dominant role in the economy the real sustainable development of Ethiopia
is any event, unthinkable without the sound progress in the expansion of agricultural output<<it
was in the agricultural sector that the battle for long term economic development has been won
or lost>>(Todaro Smith,2003).
The Northernmost tip of Ethiopia, Tigray region, is generally regarded as the most degraded part
of the country; with erratic and insufficient rainfall, poor soil quality; low availability of
infrastructure like inputs and markets (Fetien et al., 2009). Albeit this, recently in the region,
yield has been increased as a result of composting water and soil conservation activities, agro-
forestry and crop diversification (Kumasi & Asenso-Okyere, 2011). Due to evident
topographical variation of the region, Southern Tigray particularly Raya-Azebo and Raya-
Alamata districts have fertile soil, agriculture conducive though no remarkable production has
yet been registered.
The Emba Alaje woreda is found in Tigray region South zone. The economy of the woreda
mainly depends on agriculture and the majority of the population gains its livelihood directly or
indirectly from agricultural production.
The role of the agricultural sector is the fundamental for food security, because food is the
second in importance only to potable water for the survival of human kind. In rural areas,
agriculture is an important activity, which assures access to both food and a source of income.
Agriculture also can provide formal and informal employment for those with both adequate and
limited education (World Bank, 2009).
Agriculture also plays a major role in the economy of many developing countries, as it is a
significant source of nourishment for citizens and a means of livelihood for the most vulnerable
members of these countries. As a consequence, raising agricultural productivity is an important
policy goal for concerned governments and development agencies (Oni et al. 2009).
Ethiopia, once expected to be the bread basket of Africa is now suffering from a severe shortage
of food for its citizens and chronic poverty. The major reason behind is mainly the backwardness
of the dominant economic sector of the country, agriculture. Land, traditional tools, draft animals
and family labor are still the most important factors of production (Beyene, 2004).
The opportunities and constraints facing Ethiopian agriculture are strongly influenced by
conditions which vary across geographical space. These conditions include basic agricultural
production potentials, access to input and output markets, and local population densities which
represent both labor availability and local demand for food (Jordan et al., 2011).
One important way to increase agricultural productivity is that reducing constraints of agriculture
(physical constraints, economic constraints and institutional constraints) through diffusion of
improved technologies, using chemical fertilizer and land management practices and training
farmers (CSA,2009).
In the country, some researchers have tried the better to identified constraints of agricultural
productivity. For example, researcher(Seifu Ketema, 2004) was undergone a research by
emphasis on environmental degradation decreases productivity of the sector. So, this research is
attempted to investigate and identify on the current issue that related to hindrance like of
agricultural productivity of the Emba Alajeworeda.
1.3. Objective of the Study
The main objective of the study is to identify constraints in enhancing agricultural productivity in
Emba Alaje woreda.
To investigate causes for the constraint on agricultural productivity in the study area.
To identify types of land management practices used to improve soil fertility in the study
area.
To assess how to minimize the constraint of agricultural productivity in the study area.
This study conducts on constraints of agricultural productivity in the case of Emba Alaje woreda.
Hence the significance of the study is to identify the causes, consequences and remedies of
agricultural problem in the study area. It is also suggests the appropriate recommendation and
helpful to improving general idea and information from individuals and officials. In addition to
this the study may serve as a starting point for other further and detailed researches in the future.
One that can be the most limitation factory for the study is that data requirement may not be fully
satisfied due to households’ lack of interest to give ample information. These inadequacies of
reliable data, problem access to information and shortage of time have effect on quality and
coverage of the study. Moreover, due to time, finance and experience constraints, the researcher
took only 2 kebeles of from that of 21 kebeles of Emba Alaje woreda.
The Alaje woreda is situated between 1422710 and1439170 north latitude and 530543 and
560142 east longitude and lies at an altitude of 2,350metres above sea level. Long term
metrological data indicates that the mean annual rainfall for the area is 912 millimeter with a
mean daily temperature ranging between 9-23 . It is bordered by woreda Saharti Samre in the
north, Endamohonito the south Raya Azebo and Hintallo Wajerat to the east and by the Amhara
region to the west. The Woreda comprises 21 kebeles and is dominant highland , medium ,and
lowlands. Rainfall in Alaje is bimodal; short rain called belgi which rains from February to
march and main rain kremti that rains from end June begnnig of September the most intensive
rainfall being between July and august. The total land cover of the woredais estimated 76,722
hecjtares 28,327 hectares of arable land ,2,618 hectares, and19,366hectares of grazing land
26,hectares which fall under the category of others. The population of the woreda is about
118,545 the total cultivated land in the woreda is 28,327 hectares of which 25 709 hectares is
cultivated on rain.
Although crop production is the main activity of farmers engage in mixed farming be,becase
of their integrated crop and livestock production system.
The study would bee use both primary and secondary data. The primary source of data was
collected from household and the concern government officials of the woreda through questioner
and interviews. The secondary data gathered from published and unpublished materials.
The woreda have 21 kebeles from those the researcher would unable to collected the data from
all the kebeles so, this research would be taken two kebeles simret and fanaaccordingly in this
study the researcher was used sample size of 60 respondents 28 of farmers from dejen and 32
from Fana.
For this study descriptive and econometric method of data analysis used inoder to condense data
in to more informative and meaningful manner.The researcher will use simple statistically
technique like simple average, percentage and tabulation for this purpse.
To collect data the researcher used survey research design. This is because the survey design is
preferable to conduct research employing large number of people questioning about their
attitudes and opinions towards the specific issue, events or phenomena (Marczyk&Dematteo,
2005). It also enables the researchers to effectively administer and manage the tasks when the
data collection takes place. Hence, the research questions and objectives have been addressed by
cross-sectional survey data since the study has been done at one point of time and place.
Econometric models were specified and used to identify the determinants of farm income and
off-farm participation; on the basis of dependent variables’ nature.
To identify the determinants of farm income, Ordinary Least Square (OLS) regression model
was employed. The rationale was due to the continuous nature of the dependent variable, farm
income. Furthermore, according to Gujarati (2006), with the assumption of classical linear
model, OLS estimators are with unbiased linear estimators with minimum variance and hence
they are BLUE (Best Linear Unbiased Estimators). Besides, different researchers like
Babatunde&Qaim (2009) and Olujenyo (2008) has had used OLS model in addressing similar
issues. Since this study is similar with different prior researches, it has employed this model.
Hence, its specification is given below.
(parameters)
Where:
CO=binary variable which is compost which takes value 1,copost use and 0,otherwise
Variables type, unit of measures and expected signs were described below
Numbers of workers; is a continuous variable that measured in number. The greater numbers of
works have higher crop production.
AGE: It is a continuous variable measured in number of years that also indicates farm
experience and proper time allocation for farm activities until a certain age limit and thereafter
their farm income would decrease. Hence, negative coefficient was expected from the final
regression result.
Total fertile land: It is a continuous variable measured in hectare. Those with larger farm size
could produce a lot that could potentially increase farm income. Hence, positive sign was
proposed.
PC: This is a categorical variable representing 1 if the farmer uses pesticides and 0 otherwise. As
the famer uses pesticides, insecticides and herbicides can harm crops and the resultant farm
income will also be increased. As a result, positive sign was hypothesized for the final regression
result.
Fertilizer use: This is a continuous variable measured in kg. The farmers those who use
chemical fertilizer were expected to have greater crop yield and there by farm income. Hence,
positive coefficient was expected from the regression.
Compost (CO); it is a categorical variable represent 1if the farmer uses compost and 0
otherwise. If the farmer uses a compost the crop yielding gats greater production. Therefore,
positive coefficient was expected from the regression.
This paper was organized into four chapters. The first chapter is an introduction part that
includes the background of the study, statement of the problem, objective of the study,
significance of the study, scope of the study, limitation of the study and organization of the
study. And also brief description of the study area and a thorough explanation of the
methodologies used for the study are presented. The second chapter elaborates a review of some
theoretical and empirical concepts related to the issues reviews. The findings of the study are
presents with the results and discussions part in chapter three. Finally, chapter four deals with the
conclusions and recommendation that are drawn from the
CHAPTER TWO
2. LITERATURE REVIEW
2.1. Theoretical Literature Review
The major sources of agricultural progress such as technological change and innovation and
appropriate government economic policies discussed blow.
This is the introduction of labour saving machinery which has a dramatic effect especially where
land is extensively cultivated and labour is scarce. But in the rural areas of most developing
nations were land parcels are small, capital is scarce and labour is abundant and the introduction
of mechanized techniques, is ill suited the physical environment, creation more rural
unemployment and as the beat development and tends to exacerbate the already serious problem
of rural poverty and unemployment.
This is the introduction of hybrid seeds, fertilizers, pesticides, insecticides and etc. They are land
augmenting that improves the quality of existing land by raising yield per hectors. These
measures are technological scale; neutral theoretically, they can be applied equally effectively on
large and small farms.
A developmental innovation is a great potential for alleviating rural poverty and raising
agricultural output. The major improvement in government policies is needed to pricing of food
grains for local markets. With farm prices so low, there was no incentive for farmers to expand
output in new productivity by raising technology. Then local food supplies fell. Therefore, the
government must more appropriate institutional and market adjustment and also provide
incentives for small farmers by implementing pricing policies that truly reflect internal market
condition (Todaro and Smith, 2003).
The physical input constraints include the following (Bill and Melinda, 2011)
Lack of adequate amount of rainfall, the variability and seasonality of rain fall affected
agricultural output in general and cereal crop in particular living the country exposed to
commercial food import and food aids.
B. Land Degradation
C. Land Fragmentation
The increase in the size of rural population coupled with limited area of farming land in the high
land has led to land fragmentation. As the size of farm household increases redistribution of land
has continued reducing the size of land per farmer house hold.
D. Shortage of Fertilizer
Fertilizer specialists emphasizes that fertilizer is the major source of growth in agricultural
output. But due to low unstable domestic production of fernier shortage, fertilizer is a serious
constraint to agricultural productivity growth.
An important institutional constraint is the absence of clear titles to land. Group ownerships of
land Ethiopia have been associated with such problem as limited tenure security, restrictions on
farmer’s mobility and the inevitable fragmentation of holding among future heirs. It may also
limit access to formal credit, since the farmer cannot use lands collateral. These incentives to
invest in land quality maintenance or improvement become poor. Farmers cannot alter
alternative from lands man and do not have customarily access to lands inhabited. They remain
on depleted lands and further degrade these sources. In security of tenure limited the land holder
exercises their land right (Berhanu, 2006).
The critical institutional constraints for the production and flow of cereals in Ethiopia are: tenure
insecurity; weak agriculture research base and extension system; lack of appropriate financial
system; imperfect agricultural markets; lack of appropriate pricing and incentive policies; and
insufficient information dissemination mechanism (MOA, 2012).
In developing countries most of the farmer were uneducated and have no training. They simply
produce by experience they have. Technological advancement is the obvious difference between
farmer in developed and developing countries. Farmer in developing countries still use animal
power to cultivate while their counter parts in developed countries ease their burden by using
machinery and equipment for agricultural production. Low level of technology utilization is one
of the major factors behind the poor performance (Mullat and Geta chew, 2005).
2.2. Empirical Literature Review
The role of agriculture in economic development has been viewed as passive and supportive role
based on the historical experiences of western countries in economic development was seen as
required a rapid structural activities transformations of economy from one predominantly
focused on agricultural activities to more complex modern industrial and service society. As a
result agriculture primary role was providing sufficient low priced man power to expanding in
economy. The major objective of agriculture and rural development in developing nations is
progressive improvement in rural level of living through increasing in small farming income
outputs in productivities (Legese, 2011).
The impacts of investments in road infrastructure on agricultural output and productivity are
particularly important in Sub-Saharan Africa for three reasons. First, the agricultural sector
accounts for a large share of gross domestic product (GDP) in most Sub-Saharan countries.
Second, poverty is concentrated in rural areas. Finally, the relatively low levels of road
infrastructure and long average travel time result in high transaction costs for sales of agricultural
inputs and outputs, and this limits agricultural productivity and growth. Thus, investments in
road infrastructure and related transport services can have a significant impact on rural and
national incomes through their effects on agriculture (Paul et al., 2012).
Agricultural production is dominated by smallholder households which produce more than 90%
of agricultural output and cultivate more than 90% of the total cropped land. Smallholders drive
their income either in cash or through own-consumption from agricultural production. According
to the national accounts, the agricultural sector consists of crop, livestock, fishery and forestry
sub-sectors. Crop production is the dominant sub-sector within agriculture, accounting for more
than 60% of the agricultural GDP followed by livestock which contributes more than 20% of the
agricultural GDP. The contributions of forestry, hunting and fishing do not exceed 10% (Mulat et
al., 2004).
The viability of the agricultural production systems in Ethiopia, as in many areas in developing
countries, is highly constrained by degraded soils and increasing lack of reliability in rainfall
resulting from climate change. There are two main production systems in Ethiopia: the pastoral
nomadic system, and the mixed crop production system. The pastoral livestock production
system dominates the semi- arid and arid lowlands (usually below 1500 meters above sea level).
These regions cover a vast area of lands with a small livestock production. The crop production
system can be classified into smallholders’ mixed farming, producers’ cooperative farms, state
farms, and private commercial farms based on their organizational structure, size, and ownership.
The major objectives of small holder farmers’ production are to secure food for home
consumption and to generate cash to meet household needs such as clothing, farm inputs, taxes
and others (Menale et al., 2010).
The agricultural production trends throughout the 1980’s up to mid-1990’s were characterized by
wide fluctuations in total output and weak growth, with grain production increasing at rate of
1.37% annually compared to population growth of 2.9 % (World Bank, 2004).
Despite large scale extension efforts since mid-1990s, agricultural performance over the past
decade has continued to be weak, with production gains mainly driven by weather and area
expansion, and weak yield gains limited to maize. There are multiplicity of factors explaining
this on limited modern varieties, the lack of animal traction, the lack of mechanization, under
investment in agricultural research, weak rural infrastructure and skills on the demand side, poor
market linkages, high transaction costs, and weak purchasing power leading to thin and volatile
markets, make agriculture more risky and reduce production incentives (World Bank, 2004).
Because of the diverse agro-ecological zones, topography and natural vegetation’s, Ethiopian
small farmers have developed complex farming methods and cropping patterns. Accordingly,
seven different cereal crops, six pulse crops, seven oilseed crops, and a number of different other
and tree crops are grown. Diversification has allowed farmers to cope with the drought or erratic
rains but identifying the right technological package for the various ecologies and crops has been
of considerable challenge to researchers and extension system (Mulat et al., 2004).
The agricultural sector continues to face major challenges. Rural livelihoods remain extremely
vulnerable to meteorological shocks, as food production is mainly rain-fed. Despite
improvements, productivity levels are still very low and the marketing infrastructure is also
weak, leading to high transaction costs. The limited use of improved farming practices by the
majority of smallholders is an important factor contributing to low productivity (AfDB, 2012).
The effects of land tenure and property right on agricultural productivity using Ethiopia as case
study said that the basic problem of low agricultural productivity is the shortage of land and
population pressure. The major focus of the paper is describing all the matters regarding land
tenure system, its rights and effects due to change in climate. The result proved that proper land
ownership policy is important for the majority of rural areas because their quality of life is totally
dependent on farming. Besides that land administration department of Ethiopia should play their
efficient role in enhancing proper land tenure and property rights (Shima, et.al. 2011).
Production in the rural non-farm sector is highly elastic. That is because there is normally a large
supply of underemployed labour, or because labour productivity at very low levels of
productivity can be increased with little or no investment. That contrasts with agriculture, which
because of the land constraint is inelastic in its supply. In agriculture, production is increased by
technological change which shifts the production function. The demand for agricultural output is
highly elastic because agricultural goods are tradable including on international markets. Of
course, other sources of rural income increase may have a similar multiplier effect on the rural
non- farm sector. They are however all very small compared to agriculture (John and Paul,
2010).
Soil erosion is one of the major agricultural problems in the highlands of Ethiopia. Deforestation,
overgrazing, and cultivation of slopes not suited to agriculture together with the farming practice
that do not include conservation measures are the major causes for soil erosion in much of
Ethiopia’s highland areas. Degraded soils are also the major constraints to agricultural
production and food security in the Southern Ethiopian highlands (Abay, 2011).
Land degradation is one of the major causes of low and in many places declining agricultural
productivity and continuing food insecurity and rural poverty in Ethiopia. The major interacting
root causes of land degradation in Ethiopia are the following; the impact of natural conditions
especially periodic drought, inaccessibility of rural areas due to topographic constraints, steady
growth of population and livestock totals without changes in agricultural and other economic
systems, historical patterns of feudal ownership of land followed by government ownership and
despite policy changes uncertain status of land ownership, institutional overlap, duplication of
effort and shortage of financial resources, lack of rural infrastructure and markets, lack of
participation of stakeholders in management decisions especially at the local level, weak
extension services and low technology agriculture, leading to risk aversion and reliance on cattle
as wealth (Berry, 2002).
The contribution of agriculture to food security both through its direct impact on food production
and indirect effect on farm incomes (i.e. through improving entitlement capacity) has failed to
recover even after the economic reforms of the 1990s. Despite some short-lived successes in
some areas and years, the impact of the country’s new development strategy that is commonly
known as ADLI and its main instrument, PADETES (the agricultural extension system that was
designed based on ADLI strategy) was too little to affect per capita agricultural production or
productivity at national level or in a sustainable manner (Samuel, 2003).
In 2011, Ethiopia was ranked 174th out of 187 countries, with a GDP per capita adjusted with the
Purchasing Power Parity of USD 971 (compared to almost USD 2000 average for Sub-Saharan
countries). After a significant contraction in 2003/04 due to a severe drought that affected
agricultural production, the Ethiopian economy has experienced a broad-based and steady
growth of real GDP. In general, the main determinants of the sustained economic growth are the
good performance of agricultural production, with significant contribution of manufacturing and
services as well as the expansion of the construction sector mainly housing, roads and
hydroelectric dams (UNDP, 2011).
Ethiopia continued to maintain the double digit growth rate which averaged 11.4 percent over the
last eight years. In the fiscal year 2010/11, real GDP growth was 11.4 percent moderately higher
than the previous year’s growth of 10.4 percent. Regarding sectoral development, agriculture
grew by 9 percent, industry 15 percent and services 12.5 percent. Consequently, agriculture and
allied activities accounted for 41 percent of GDP, industry 13.4 and services 45.6 percent.
Similarly, agriculture contributed 4.7, industry 1.5 and service 5.3 percentage points to the 11.4
percent real GDP growth in 2010/11. Although, the share of agriculture in GDP tended to decline
over time, it still remains the largest employer, the main source of foreign exchange, and supplier
of raw materials and market to domestic industries (NBE, 2011).
The growth in agricultural outputs was largely attributed to improved productivity aided by
favorable weather condition and conducive economic policy. Cultivated land expanded by 4.6
percent and reached 12 million hectares in 2010/11. Production is estimated to have increased by
about 8.8 percent while productivity rose from 15.7 quintal/hectare in 2004/05 to 16.3 quintal per
hectare in 2010/11. Cereal production accounted for about 87.7 percent of the total production
estimated for 2010/11. Meanwhile, the 15 percent annual growth in industry was largely due to
expansion in electricity and water subsectors. Manufacturing grew by 12 percent with mining
and quarrying expanded by 57.7 percent. The 12.5 percent growth in service sector which has
gained momentum in recent years was attributed to growth in financial sector, real estate and
hotel and tourism sectors (NBE, 2011).
Much of the increase in crop production in the past decade has been due to increases in area
cultivated. To what extent the area cultivated can continue to expand remains an important
question. It seems that in the highland areas, expansion of cultivated area will have to come
almost exclusively from reduction in pasture land. In most instances, this land is likely to be less
fertile than existing crop land. Increased use of inter-cropping or double cropping may allow
some expansion of area cultivated as well. Expansion of area cultivated outside of the highland
regions will require major investments in infrastructure and might involve reductions in forest
areas, with important negative environmental implications. As a consequence, it seems that
obtaining higher yield rates is the challenge of Ethiopia’s agricultural system (Alemayehu et al.,
2011).
Building on successful experience with model farmers, the GTP seeks to transform agriculture
by providing incentives for the commercialization of agriculture while continuing to support
smallholders to raise productivity. Thanks to the incentives that the government is providing,
foreign investment in commercial farming is expanding, which is expected to boost food
production and exports of commercial crops. Weather conditions remain a critical factor but
prospects for the agricultural sector to perform well in 2012 and 2013 are favorable in view of
the recent strides in commercialization and the positive response of smallholder farmers to
support services (AfDB
CHAPTER THRE
DATA ANALYSIS
This chapter presents the results from the descriptive and economic analysis. The descriptive
analysis made up of tools such as mean, maximum, standard deviation, minimum, percentage,
frequency and cumulative frequency. Econometric analysis was carried out to identify the most
important factor that determines agricultural productivity and to measure relative importance of
significant explanatory variables on agricultural productivity.
3.1. Descriptive result
This section is mainly concerned with descriptive analysis of the survey data and interpretation
of analytical finding of the constraints of agricultural productivity in Emba alaje woreda.
Therefore, this paper only considers those constraints that hinder agricultural productivity in the
study area based on the response potential households of the woreda.
Female 18 30
Male 42 70
Total 60 100
Illiterate 27 45 45
Total 60 100.00
The educational status of a society, particularly literacy level, is among the key factors
determining development and growth (Todaro and Smith, 2009). Survey results indicate that the
education level of the respondents is low: 45% are illiterate; 6.67% can read and write without
attending any formal schooling; 8.33% by religious education, 18.33% are attended in primary
(1- 8), while the remaining 21.67% attained in secondary school. This may indicate some
incapacitation in their ability to adopt new ideas and technologies in agricultural production in
the study.
Married 47 78.33
Single 4 6.67
Divorced 5 8.33
Widowed 4 6.67
Total 60 100
Source: own survey, 2017
With regard to the marital status, from the total sample respondents 78.33%, 6.67%, 8.33%,
6.67% were married, single, divorced and widowed respectively.
Table3.4 Age and family size characters of the respondent
Item Observation Mean Standard Minimum Maximum
deviation
Family size 60 5 2 10 1
The above table shows that age and family size distribution of the respondents. Age and family
size were demographic factors thus affects the productivity of the farmer.
AGE;-the age of sample respondents are 42 year on average and standard deviation is 10.7
which shows the variation of households on age. The maximum age of the household in the
study area is 65 and minimum age of the respondent is 22 but doesn’t mean there is no individual
whose age is above 65 years rather it shows the maximum age of the productive farmers.
Family size of respondent (FMS); the average family size the respondent almost 5 and 2
standard deviation that shows the variation on numbers of family size in the given respondent.
And also the minimum and maximum is 1and10 respectively.
Pesticide 60 .7 .46 0 1
use
Improved seed (IS);-According to the study the average use of improved seed is 30.5kg, 34
standard deviation and 100 kg of maximum use of improved seed and there are households not
use improved seed. Based on the finding there is high variation of use of improved seed among
households in the study area.
Pesticide (PS); it is dummy variable that represents 1 if the respondent use a pesticide and 0 for
the respondents that cannot ,and the survey show that, the averages of the respondent are almost
1 that means they use a pesticide and .46 standard deviation the variation of pesticide use among
the respondent. The maximum of 1 show the household use a pesticide and minimum 0 farmers
have not use pesticide in the study area.
Compost (CO);-compost is a natural fertilizer used by households without incurring much more
cost. It is categorical variable in the study represents 1 if the respondent uses compost and 0
otherwise. The mean 0.7shows almost the respondents use compost, 0.45 shows the variation of
respondent in the compost use, and the minimum and maximum was 0and1 respectively it
represent the farmers have both compost user and thus have not use compost in the study area.
3.1.2.1 Access to Agricultural land and size of land holding
As far as land is the asset ownership of rural household is concerned. It is the most important
source in which the livelihood of rural community is highly dependent. Thus, its unavailability or
scarcity is among the major constraints of agricultural productivity.
-------------+--------------------------------------------------------
RL | 60 0.89 0.48 0 2
The table reveals that the access to farm land per household.
TFL; the mean, standard deviation, minimum, and maximum total fertile land of the farm house
hold in the survey is 1.1, 0.50, 0.25, and 2.5 in hectare respectively. The standard deviation the
variation of land size own in hectare between the sample of the house hold.
IRL; the farm house hold of the sample have 0.222, 0.31 , 0,and1 hectares of the irrigated land
mean, standard deviation, minimum, and maximum respectively.
RL; in the survey rain fail land’s of respondents is 0.89, 0.48, 0, and 2 hectares of mean, standard
deviation, minimum ,and maximum respectively among the respondents.This shows that
irrigated land is low and rain fed land is high in the woreda. Therefore, the majority of the farmer
households were depends on rain fed for agricultural productions in the study area.
The above figure shows sources of land for farmers. The percentage of the household get land
for production by inheritance, fixed rent, and share cropping were 57%, 18%, and %25,
respectively. And also the averages of land in hector household get for production were 1.5, 0.5,
and 0.75 by inheritance, fixed rent, and share cropping respectively. Therefore, ways to get land
for production may hinder productivity of the sector in the woreda.
Low application of 33 55 27 45
pesticides
Soil erosion 21 35 39 65
Lack of oxen 25 41.66 35 58.34
From the above table the survey result shows that in the in the study area the productivity of the
sector mainly affected due to shortage of land, shortage of fertilizer, shortage of improved seeds,
low application of pesticides, soil erosion, lack of oxen, and inadequate rainfall rather than
others. From the figure the percentage of shortage land, shortage of fertilizer, shortage of
improved seeds, low application of pesticides, soil erosion, lack of oxen, inadequate rainfall, and
lack of credit access were 46.67%, 51.67%, 48.33%,5 5%, 35%, 41.66% and71.66%
respectively. In general, the survey results indicated that shortage of improved seeds (58.33%),
inadequate rainfall (71.66%), low application of pesticides (55.5%), lack of credit access
(53.33%),were the major hinders productivity of the sector in the study area .
Generally, the reason behind constraints of agricultural productivity in the study area were high
price of agricultural inputs, late delivery of inputs, limited experience in the use of extension
methods and materials, late coming, erratic and low amount of rainfall particularly in lowland
areas, shortage of working capital (credit) to purchase modern inputs, and low level of farmers to
adopt new technology.
Management
Practice
Mixed cropping 6 10
Tree planting 3 5
Fallowing 9 15
Terracing 7 11.67
Total 60 100
In this estimation the most familiar test of detecting the problem of multcollinearity has been
used. Accordingly, the result clearly shows that there is no problem of multcollinearity among
variables since the value of VIF for all variables is below the rule of thumb value (10). If the
value of VIF for any variable is greater than 10, then we would say there is a serious problem of
multcollinearity. However, the VIF value is far less than 10, implying that no danger or there is
no sever multicollinerity
.Table3.9
The value of vif is 2.82 which is less than 10 so that we can concluded that there is no problem
of Multicollinearity which means there is no correlation among explanatory variables in the
model.
standard error.
Table 3.10
The result shows there is problem of heteroskedasticity so we have to use the detection
mechanism which is robust standard error test.
TABLE3.11
4.1 CONCLUSION
The study includes eight explanatory variables in the econometric analysis. Based on the result
among the eight explanatory variables included in the model ,compost, fertilizer, pecticide, and
improved seed, are significant and positively related with the dependent variable farm income. In
addition to these variables as the respondents responded the farm income is constrained by the
availability of credit, inadequate rainfall, lack of oxen, erosion, and land shortage. Furthermore
the households in the study area get accesses to land through inheritance mostly, practice crop
rotation land management system, and farmers depend on rain fed agriculture. Generally the
study result shows the above listed factors constrained the farm income and force to get low level
of its productivity in the study area.
4.2 RECOMANDATION
As an access to fertilizer is one of the main problems of the farmers in the study
area the government should provide adequate fertilizer in timely manner.
To improve the farm income of the households
Furthermore farmers depend on rain fed so that government should expand irrigation
facility that farmers produce two ways of a year.
Finally the government should provide modern technical inputs,droght resistance crop,
providing infrastructural facility, and set efficient pricing policy that equally benefit both
producers and consumers.
REFERENCE
MEKELLE UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ECONOMICS
Questionnaire for Farmer households
Dear Respondents
The researcher is to conduct the research on the topic known as constraints of agricultural
productivity in Emba Alaje Woreda for partial fulfillment of requirement of BA degree in
Economics. The purpose of this questionnaire is to gather relevant information regarding the
main objective of the study; to identify constraints of agricultural productivity in Emba Alaje
Woreda. Therefore, to make the work easy the researcher prepared some questionnaires papers,
so the researcher asks you politeness to fill each questionnaire patiently because each of your
response is very useful for the study.
Instruction
No need of write your name
Put mark in the boxes provided for you for close ended question
and write the idea that related to the question at the space
provided to you for open ended questions
I am a 3rd year Economics students at Mekelle University and I am conducting a research for
partial fulfillment of requirement of BA degree in Economics. The purpose of this questionnaire
is to gather relevant information regarding the objective of the research; constraints of
agricultural productivity in woreda. It is used for academic research. So believe that there is
nothing behind the study and all your response will be kept secret. Hence, you are kindly
requisition listed below, use in the box.
1. Sex: male Female
2. Age.........................
3. Kebele....................
4. Family size....................
5. Marital status......................
1. Married 3. Divorced
2. Single 4. Widowed
6. Education status
1. Illiterate 5. Primary (5-8)
2. Religious education 6. Secondary (9-10)
3. Read and write 7. Preparatory (11-12)
4. Primary (1-4) 8. Above grade12
7. Do you have a land for production?
1. Yes 2. No
8. If yes what type?
Types of land Land in hector
Irrigated
Rain fed
12. If your answer for fertilizer in question 10 how much do use in kg……………
13. If your answer is yes in quastio.n10 for improved how much do use in kg………………
14. Did you face production failure due to the the following reasons in the past five years?
Major constraints Yes No
Land shortage
Soil erosion
Fertilizer shortage
Shortage of Improved seeds
Lack of oxen
Inadequate rainfall
Lack of credit access
Lack applicable pesticide
Other specify
15. What types of land management practices you used to improve soil fertility?
A. Mixed cropping C. Crop rotation E. Tree planting
B. Terracing D. Fallowing
16. Estimate your production in 2008 E. C.
No Crop Kg Unit price (kg) Total
1 Wheat
2 Teff
3 Barley
4 Sorghum
5 Bean
6 Others
Total