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Emerging Medium-Scale Tenant Farming, Gig Economies, and the COVID-19 Disruption: The Case of Commercial Vegetable Clusters in Ethiopia

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  • Bart Minten

    (International Food Policy Research Institute)

  • Belay Mohammed

    (International Food Policy Research Institute)

  • Seneshaw Tamru

    (International Growth Center)

Abstract

Driven by the fast spread of private irrigation pumps, there has been a rapid expansion of intensive vegetable cultivation in the central Rift Valley in Ethiopia, making it the most important commercial vegetable production cluster in the country. Supporting that “quiet revolution” has been an inflow of migrant laborers—paid through daily, monthly, or piecemeal contracts, with few employment benefits attached to them—and a gig economy as widely used contractors organize, among others, mechanized land preparation, the digging of wells and ponds, seedling propagation, and loading of trucks. Almost 60% of the irrigated area is cultivated by medium-scale tenant farmers relying on short-term rental contracts. It seems that gig economies characterized by flexible contract arrangements implemented by outside contractors, which are increasingly fueling sophisticated sectors in developed countries, are important in these commercial agrarian settings in Africa as well. We further find that the COVID-19 pandemic has led to significant disruptions of this model, as seen by more limited access to services and the unavailability or high price increases in factor markets, especially for labor, and large but heterogenous price changes in output markets.

Suggested Citation

  • Bart Minten & Belay Mohammed & Seneshaw Tamru, 2020. "Emerging Medium-Scale Tenant Farming, Gig Economies, and the COVID-19 Disruption: The Case of Commercial Vegetable Clusters in Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(5), pages 1402-1429, December.
    • Handle: RePEc:pal:eurjdr:v:32:y:2020:i:5:d:10.1057_s41287-020-00315-7
    DOI: 10.1057/s41287-020-00315-7
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    Cited by:

    1. Kalle Hirvonen & Bart Minten & Belay Mohammed & Seneshaw Tamru, 2021. "Food prices and marketing margins during the COVID‐19 pandemic: Evidence from vegetable value chains in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 407-421, May.
    2. Hiroyuki Takeshima & Ian Masias & Myat Thida Win & Phoo Pye Zone, 2023. "Effects of COVID‐19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 323-351, February.
    3. Martin Paul Jr Tabe‐Ojong & Guyo Godana Dureti, 2023. "Are agro‐clusters pro‐poor? Evidence from Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 100-115, February.
    4. Altanshagai Batmunkh & Maria Fekete-Farkas & Zoltan Lakner, 2022. "Bibliometric Analysis of Gig Economy," Administrative Sciences, MDPI, vol. 12(2), pages 1-15, April.
    5. Thomas Reardon & Lenis Saweda O. Liverpool-Tasie & Bart Minten, 2021. "Quiet Revolution by SMEs in the midstream of value chains in developing regions: wholesale markets, wholesalers, logistics, and processing," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1577-1594, December.
    6. Rafi Amir-ud-Din & Sameen Zafar & Muhammad Muzammil & Rabia Shabbir & Summaira Malik & Muhammad Usman, 2022. "Exploring the Relationship Between Maternal Occupation and Under-Five Mortality: Empirical Evidence from 26 Developing Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2373-2399, October.
    7. Spencer Henson & Uma Kambhampati & Tewodaj Mogues & Wendy Olsen & Martin Prowse & Raul Ramos & John Rand & Rasjah Rasiah & Keetie Roelen & Rebecca Tiessen & O. Fiona Yap, 2020. "The Development Impacts of COVID-19 at Home and Abroad: Politics and Implications of Government Action," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(5), pages 1339-1352, December.
    8. Johan Swinnen & Rob Vos, 2021. "COVID‐19 and impacts on global food systems and household welfare: Introduction to a special issue," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 365-374, May.
    9. Reardon, Thomas & Liverpool-Tasie, Saweda & Minten, Bart, 2022. "IFAD Research Series 78: The Small and Medium Enterprises’ quiet revolution in the hidden middle of food systems in developing regions," IFAD Research Series 321998, International Fund for Agricultural Development (IFAD).
    10. Thomas Daum & Hans Konrad Biesalski & Nikola Blaschke & Christine Bosch & Denise Güttler & Jakob Heni & Juliet Kariuki & Roseline Katusiime & Anna Seidel & Zinsou‐Narcisse Senon & George Woode & Regin, 2023. "Nutrition‐sensitive lockdowns: Conceptual framework and empirical insights from Africa during COVID‐19," Development Policy Review, Overseas Development Institute, vol. 41(3), May.
    11. Kaat Van Hoyweghen & Anna Fabry & Hendrik Feyaerts & Idrissa Wade & Miet Maertens, 2021. "Resilience of global and local value chains to the Covid‐19 pandemic: Survey evidence from vegetable value chains in Senegal," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 423-440, May.
    12. Zezza,Alberto & Mcgee,Kevin Robert & Wollburg,Philip Randolph & Assefa,Thomas Woldu & Gourlay,Sydney, 2022. "From Necessity to Opportunity : Lessons for Integrating Phone and In-Person Data Collectionfor Agricultural Statistics in a Post-Pandemic World," Policy Research Working Paper Series 10168, The World Bank.

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