Role Of Agricultural Commercialization In The Agricultural Transformation Of Ethiopia Trends Drivers And Impact On Well Being

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ISBN 13 : 9789276129417
Total Pages : pages
Book Rating : 4.1/5 (294 download)

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Download or read book Upscaling the Productivity Performance of the Agricultural Commercialization Cluster Initiative in Ethiopia written by and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Agricultural Commercialization Cluster (ACC) initiative is one of the main policy interventions in the agricultural sector in Ethiopia. It was introduced during the first Growth and Transformation Plan (GTP I, 2010-2015) as a mechanism to integrate the Agricultural Transformation Agenda interventions along specific value chains for a limited number of priority (or high-value) commodities, across the four major agricultural regions of the country: Amhara, Oromia, SNNP and Tigray. According to the Agricultural Transformation Agency (ATA), the ACC initiative aims to increase farmers' income, facilitate market opportunities, enhance agro-processing services, increase the volume of products and create more jobs. The Agricultural Commercialization Clusters are considered to play the role of Centres of Excellence and are being supported in expanding their production and productivity, and in integrating their commercialization activities. Therefore, these areas are meant to serve as 'models for learning' in the process of implementation of the ACC approach and scaling up of best practice across the country. The main aim of this study is to analyze the impacts of this initiative on the performance and livelihood of smallholder farmers in Ethiopia. Specifically, we ex ante assess the impact of scaling up, to the respective regions of Ethiopia, the productivity performance achieved by the 'model farmers' in the areas (clusters) covered by the ACC initiative. This is accomplished using the farm household model FSSIM-Dev (Farm System Simulator for Developing Countries), which is applied to a representative sample of 2,886 individual farm households spread throughout the country, taken from the 2013/14 Ethiopia Socioeconomic Survey. Simulation results show that upscaling the ACC productivity performance to the respective regions would lead to an increase in production of the main products ranging between 1.8% and 62.6%, depending on scenario, region and commodity. The average country-level production increase (across all ACC scenarios considered) for wheat, teff, maize and barley are assessed to be 29.6%, 21.1%, 12.8% and 12.6%, respectively. These impacts are driven by rise in land productivity, rather than area expansion (through putting fallow land into cultivation) and/or area reallocation. The increase in crop yields would also have a positive impact on both income and poverty level of farm households. Across all scenarios at the country level, the average increase in gross income is assessed to be around 14%, and the reduction in poverty gap around 2.1%. The largest income change is experienced by farms specializing in field crops, which is not surprising as the ACC targeted crops considered are field crops, and in medium-large farms (i.e. farms with total production value of larger than ETB 9,000) in view of their high land productivity in comparison to small farms. At the individual farm household level, the average increase in gross income for all farms is assessed to be around 9%, although the impact could be more pronounced for individual farms: for example, 85% of the farms would experience an increase in gross income of up to 17% to 32%, depending on the nature of scenarios considered. The increase in both production and income would raise food consumption, and improve nutritional indicators such as the energy intake, protein intake and Healthy Food Diversity Index (HDFI) by 2.32%, 2.25% and 0.54%, respectively.