Berhane, Guush

Minten, Bart

Tamru, Seneshaw

Dereje, Mekdim

The uptake of agricultural mechanization in Ethiopia is low with less than one percent of agricultural plots plowed with a tractor. However, in recent years the uptake of agricultural machinery has accelerated. We note an impressive increase in imports of combine-harvesters and of tractors, seemingly associated with the increasing costs of agricultural labor and animal traction, substitutes for agricultural mechanization. We estimate that a quarter of the area in Ethiopia planted to wheat – the fourth most important cereal in the country – is currently harvested by combine-harvesters, and they are widely used in the major wheat growing zones in the southeast of the country in particular. Private mechanization service providers have rapidly emerged. Smallholders in these wheat growing zones rely heavily on agricultural machinery rental services for plowing, harrowing, or harvesting. We find that mechanization is associated with significantly lower labor use, and that the adoption of combine-harvesters – but not tractors – is significantly associated with higher yields, seemingly due to lower post-harvest losses. While further expansion of mechanization in the country is desired, given the environmental and financial cost of holding oxen and the higher yields linked with some forms of mechanization, it appears to be hampered by farm structures, particularly small farm sizes and consequent limits in scale; fragmented plots; crop diversity; physical constraints, such as presence of stones, steepness of fields, and soil types; and economic and financial constraints, including limited access to foreign exchange and credit and the still relatively low wages in less commercialized zones.

The rapid – but from a low base – uptake of agricultural mechanization in Ethiopia: Patterns, implications and challenges

Kuma, Tadesse

Nyarko, Yaw

We study the structure and performance of the coffee export sector in Ethiopia, Africas most important coffee producer, over the period 2003 to 2013. We find an evolving policy environment leading to structural changes in the export sector, including an elimination of vertical integration for most exporters. Ethiopias coffee export earn-ings improved dramatically over this period, i.e. a four-fold real increase. This has mostly been due to increases in international market prices. Quality improved only slightly over time, but the quantity exported increased by 50 percent, seemingly explained by increased domestic supplies as well as reduced local consumption. To further improve export performance, investments to increase the quantities produced and to improve quality are needed, including an increase in washing, certification, and traceability, as these characteristics are shown to be associ-ated with significant quality premiums in international markets.

Structure and performance of Ethiopias coffee export sector

Reardon, Thomas

We study post-harvest losses (PHL) in important and rapidly growing rural-urban value chains in Ethiopia. We analyze self-reported PHL from different value chain agents – farmers, wholesale traders, processors, and retailers – based on unique large-scale data sets for two major commercial commodities, the storable staple teff and the perishable liquid milk. PHL in the most prevalent value chain pathways for teff and milk amount to between 2.2 and 3.3 percent and 2.1 and 4.3 percent of total produced quantities, respectively. We complement these findings with primary data from urban food retailers for more than 4,000 commodities. Estimates of PHL from this research overall are found to be significantly lower than is commonly assumed. We further find that the emerging modern retail sector in Ethiopia is characterized by half the level of PHL than are observed in the traditional retail sector. This is likely due to more stringent quality requirements at procurement, sales of more packaged – and therefore better protected – commodities, and better refrigeration, storage, and sales facilities. The further expected expansion of modern retail in these settings should likely lead to a lowering of PHL in food value chains, at least at the retail level.

Tamru, Seneshaw

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