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Risks in Vegetables Production from the Perspective of Smallholder Farmers: The Case of Kombolcha Woreda, Oromia Region, Ethiopia

Received: 31 March 2014     Accepted: 24 April 2014     Published: 16 July 2014
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Abstract

In Ethiopia, vegetable crops are produced in different agro-ecological zones through commercial as well as smallholder farmers both as a source of income and food. However, due to perishable nature and biological nature of production process, vegetables productions are risky investment activities. In this context, risk perceptions play a key role in the production and investment behaviour of farmers in vegetable production decisions. However, in Kombolcha Woreda, only limited attention has been paid to understand the producers’ risk perceptions in vegetable production. Therefore, in this study, analysis of the major sources of risks in vegetable production, on the basis of farmers’ perceptions, was conducted. For the study, a two-stage sampling technique was used to select 130 sample households from six sample kebeles. Primary data collected through structured questionnaire and secondary data sources were used. A Likert scale, based on farmers’ perception, was used to rank the various sources of vegetable production risks. The mean scores results, derived based on Likert scales, indicated that production and market risks were perceived to be the most important risk sources. Hence, price support mechanisms and inputs subsidy, education and training on formal risk management mechanisms (production contract, marketing contract, etc.); drought tolerant, and pest/disease resistant vegetable varieties and cultural and biological methods, and chemicals should be used to control such risks.

Published in Agriculture, Forestry and Fisheries (Volume 3, Issue 6-1)

This article belongs to the Special Issue Agriculture Ecosystems and Environment

DOI 10.11648/j.aff.s.2014030601.11
Page(s) 1-5
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Risk Perceptions, Vegetables Production, Likert Scale

References
[1] Ali, J. and S. Kapoor, 2008. Farmers’ Perception on Risks in Fruits and Vegetables Production: An Empirical Study of Uttar Pradesh. Centre for Food and Agribusiness Management, Indian Institute of Management, Agricultural Economics Research Review, 21:317-326.
[2] Ayinde, O.E., O.A. Omotesho and M.O. Adewumi, 2008. Risk Attitudes and Management Strategies of Small-Scale Crop Producers in Kwara State, Nigeria: A Ranking Approach. African Journal of Business Management, 2(12):217-221.
[3] Bezabih Emana and Hadera Gebremedhin, 2007. Constraints and Opportunities of Horticulture Production and Marketing in Eastern Ethiopia. Drylands Coordination Group Report No. 46.
[4] CSA (Central Statistical Agency), 2008. Summary and Statistical Report of the 2007 Population and Housing Census of Ethiopia. Addis Ababa, Ethiopia.
[5] Dawit Alemu, Abera Deresa, Lemma Desalegn and Chemdo Anchala, 2004. Domestic Vegetable Seed Production and Marketing. Research Report No 5. EARO, Ethiopia. 17p.
[6] Dercon, 2002. Income Risk, Coping Strategies and Safety Nets. The World Bank Research Observer, 17(2):141.
[7] Dinham, B., 2003. Growing Vegetables in Developing Countries for Local Urban Populations and Export Markets: Problems Confronting Small-Scale Producers. Pest Management Science, 59:575-582.
[8] Douglas, M., and A. Wildavsky, 1982. Risk and culture, An Essay on the Selection of Technical and Environmental Dangers. Berkeley: University of California Press.
[9] EARO (Ethiopian Agricultural Research Organization), 2000. Dry land Crop Research Program. Addis Ababa, Ethiopia
[10] EEA (Ethiopian Economic Association), 2012. Annual Report on Ethiopian Economy. Addis Ababa, Ethiopia.
[11] EHZP (East Hararghe Zone Profile), 2011. Socio-economic Profile of the East Hararghe Zone.
[12] Goodwin, B.K. and A.K. Mishra, 2000. An Analysis of Risk Premia in U.S. Farm-Level Interest Rates. Agricultural Finance Review, 60:1-16.
[13] Harwood, J. L., R.G. Heifner, K.H. Coble, J.E. Perry, and A. Somwaru, 1999. Managing Risk in Farming. Concepts, Research, and Analysis. Agri. Eco. Report 774, USDA-ERS, Commodity Economics Division, Washington D.C. 1999.
[14] Holt, M.T. and J.P. Chavas, 2002. The Econometrics of Risk, in R.E. Just and R.D. Pope (eds.), A Comprehensive Assessment of the Role of Risk in U.S. Agriculture: Kluwer Academic Publishers, chapter 11:214-241.
[15] Kohl, R, L. and J.N. Uhl, 1985. Marketing of Agricultural Product. Fifth Edition. McMillian Publishing Company, New York, USA----p.
[16] KWP (Kombolcha Woreda Profile), 2011. Socio-economic Profile of the Kombolcha Woreda.
[17] Rohrmann, B., 2008. Risk Perception, Risk Attitude, Risk Communication, Risk Management: A Conceptual Appraisal. University of Melbourne.
[18] Rees, M., 2009. What is The Impact of Livelihood Strategies on Farmers’ Climate Risk Perceptions in the Bolivian Highlands? A Thesis Presented to the Faculty of the Graduate School at the University of Missouri-Columbia.
[19] Taiwo, A. and A.B. Ayanwale, 2005. Risk and Risk Management Strategies in Onion Production in Kebbi state of Nigeria. Department of Agricultural Economics, Obafemi Awolowo University, Ille-Ife, Osun State, Nigera.
[20] Tsegay Lubelu, 2010. High Value Agriculture in Eastern and Southern Africa: Increased Regional Trade: Opportunities and Issues, Ethiopian Horticulture Development Agency.
[21] Tveterås, R. and G.H. Wan, 2000. Flexible Panel Data Models for Risky Production Technologies with an Application to Salmon Aquaculture. Econometric Reviews 19(3):367-389.
[22] Weinstein, N. D., 1989. Unrealistic Optimism about Future Life Events. J. Pers. Soc. Psychol., 39(5):806-820.
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  • APA Style

    Kumilachew Alamerie, Mengistu Ketema, Fekadu Gelaw. (2014). Risks in Vegetables Production from the Perspective of Smallholder Farmers: The Case of Kombolcha Woreda, Oromia Region, Ethiopia. Agriculture, Forestry and Fisheries, 3(6-1), 1-5. https://doi.org/10.11648/j.aff.s.2014030601.11

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    ACS Style

    Kumilachew Alamerie; Mengistu Ketema; Fekadu Gelaw. Risks in Vegetables Production from the Perspective of Smallholder Farmers: The Case of Kombolcha Woreda, Oromia Region, Ethiopia. Agric. For. Fish. 2014, 3(6-1), 1-5. doi: 10.11648/j.aff.s.2014030601.11

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    AMA Style

    Kumilachew Alamerie, Mengistu Ketema, Fekadu Gelaw. Risks in Vegetables Production from the Perspective of Smallholder Farmers: The Case of Kombolcha Woreda, Oromia Region, Ethiopia. Agric For Fish. 2014;3(6-1):1-5. doi: 10.11648/j.aff.s.2014030601.11

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  • @article{10.11648/j.aff.s.2014030601.11,
      author = {Kumilachew Alamerie and Mengistu Ketema and Fekadu Gelaw},
      title = {Risks in Vegetables Production from the Perspective of Smallholder Farmers: The Case of Kombolcha Woreda, Oromia Region, Ethiopia},
      journal = {Agriculture, Forestry and Fisheries},
      volume = {3},
      number = {6-1},
      pages = {1-5},
      doi = {10.11648/j.aff.s.2014030601.11},
      url = {https://doi.org/10.11648/j.aff.s.2014030601.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.aff.s.2014030601.11},
      abstract = {In Ethiopia, vegetable crops are produced in different agro-ecological zones through commercial as well as smallholder farmers both as a source of income and food. However, due to perishable nature and biological nature of production process, vegetables productions are risky investment activities. In this context, risk perceptions play a key role in the production and investment behaviour of farmers in vegetable production decisions. However, in Kombolcha Woreda, only limited attention has been paid to understand the producers’ risk perceptions in vegetable production. Therefore, in this study, analysis of the major sources of risks in vegetable production, on the basis of farmers’ perceptions, was conducted. For the study, a two-stage sampling technique was used to select 130 sample households from six sample kebeles. Primary data collected through structured questionnaire and secondary data sources were used. A Likert scale, based on farmers’ perception, was used to rank the various sources of vegetable production risks. The mean scores results, derived based on Likert scales, indicated that production and market risks were perceived to be the most important risk sources. Hence, price support mechanisms and inputs subsidy, education and training on formal risk management mechanisms (production contract, marketing contract, etc.); drought tolerant, and pest/disease resistant vegetable varieties and cultural and biological methods, and chemicals should be used to control such risks.},
     year = {2014}
    }
    

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  • TY  - JOUR
    T1  - Risks in Vegetables Production from the Perspective of Smallholder Farmers: The Case of Kombolcha Woreda, Oromia Region, Ethiopia
    AU  - Kumilachew Alamerie
    AU  - Mengistu Ketema
    AU  - Fekadu Gelaw
    Y1  - 2014/07/16
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    N1  - https://doi.org/10.11648/j.aff.s.2014030601.11
    DO  - 10.11648/j.aff.s.2014030601.11
    T2  - Agriculture, Forestry and Fisheries
    JF  - Agriculture, Forestry and Fisheries
    JO  - Agriculture, Forestry and Fisheries
    SP  - 1
    EP  - 5
    PB  - Science Publishing Group
    SN  - 2328-5648
    UR  - https://doi.org/10.11648/j.aff.s.2014030601.11
    AB  - In Ethiopia, vegetable crops are produced in different agro-ecological zones through commercial as well as smallholder farmers both as a source of income and food. However, due to perishable nature and biological nature of production process, vegetables productions are risky investment activities. In this context, risk perceptions play a key role in the production and investment behaviour of farmers in vegetable production decisions. However, in Kombolcha Woreda, only limited attention has been paid to understand the producers’ risk perceptions in vegetable production. Therefore, in this study, analysis of the major sources of risks in vegetable production, on the basis of farmers’ perceptions, was conducted. For the study, a two-stage sampling technique was used to select 130 sample households from six sample kebeles. Primary data collected through structured questionnaire and secondary data sources were used. A Likert scale, based on farmers’ perception, was used to rank the various sources of vegetable production risks. The mean scores results, derived based on Likert scales, indicated that production and market risks were perceived to be the most important risk sources. Hence, price support mechanisms and inputs subsidy, education and training on formal risk management mechanisms (production contract, marketing contract, etc.); drought tolerant, and pest/disease resistant vegetable varieties and cultural and biological methods, and chemicals should be used to control such risks.
    VL  - 3
    IS  - 6-1
    ER  - 

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Author Information
  • School of Agricultural Economics and Agribusiness, Haramaya University, Ethiopia

  • School of Agricultural Economics and Agribusiness, Haramaya University, Ethiopia

  • School of Agricultural Economics and Agribusiness, Haramaya University, Ethiopia

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