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Integrating Small Scale Farmers into Bread Wheat Marketing Chain through Contract Farming in Ethiopia

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  • Getaneh, Wubalem
  • Bekabil, Fufa

Abstract

The treatment effect censored regression model results of this study showed that educational level, value of agricultural equipment and number of oxen owned affected the participation decisions of the farmers in bread wheat contract farming significantly. The most important factors that determine gross margin obtained from bread wheat production were contract farming experience, the number of oxen owned and participation in contract farming. However, technical efficiency differences and management practices followed were not the reasons for differences in gross margin between the participant and non-participant farmers.

Suggested Citation

  • Getaneh, Wubalem & Bekabil, Fufa, 2008. "Integrating Small Scale Farmers into Bread Wheat Marketing Chain through Contract Farming in Ethiopia," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52101, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae07:52101
    DOI: 10.22004/ag.econ.52101
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    1. Ani L. Katchova & Mario J. Miranda, 2004. "Two-Step Econometric Estimation of Farm Characteristics Affecting Marketing Contract Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 88-102.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Nigel Key & William McBride, 2003. "Production Contracts and Productivity in the U.S. Hog Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 121-133.
    4. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February.
    5. D'Haese, Marijke F.C. & Verbeke, Wim & Van Huylenbroeck, Guido & Kirsten, Johann F. & D'Haese, Luc, 2003. "Institutional Innovation To Increase Farmers' Revenue: A Case Study Of Small Scale Farming In Sheep: Transkei Region, South Africa," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25888, International Association of Agricultural Economists.
    6. Dessalegn, Gebremeskel & Jayne, Thomas S. & Shaffer, James D., 1998. "Market Structure, Conduct, and Performance: Constraints of Performance of Ethiopian Grain Markets," Food Security Collaborative Working Papers 55597, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:

    1. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.

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