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Crop‐Level Supply Response by Agro‐Climatic Region in Ethiopia

Author

Listed:
  • Suleiman Abrar
  • Oliver Morrissey
  • Tony Rayner
Abstract
Using farm‐level survey data from Ethiopia, this paper estimates a quadratic restricted profit function to assess the supply response of smallholder farmers. All major crops are identified in the analysis and variations in agro‐climatic and farming systems are accounted for. Peasant farmers, at least in the more commercial Central and Southern zones, do respond positively and significantly to price incentives. Farmers in the Northern zone are least commercial and least responsive to prices, and in fact the model based on profit maximisation does not adequately capture their behaviour. In general, non‐price factors, especially rainfall and market access, are more important than prices in affecting poduction, and which factors are most important varies depending on the crop and region in question. We conclude with suggestions regarding which crops appear most suitable to each agro‐climatic region, and identify the most relevant policy interventions in each case.

Suggested Citation

  • Suleiman Abrar & Oliver Morrissey & Tony Rayner, 2004. "Crop‐Level Supply Response by Agro‐Climatic Region in Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(2), pages 289-311, July.
    • Handle: RePEc:bla:jageco:v:55:y:2004:i:2:p:289-311
    DOI: 10.1111/j.1477-9552.2004.tb00097.x
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    References listed on IDEAS

    as
    1. Thiele, Rainer, 2000. "Estimating the aggregate agricultural supply response: a survey of techniques and results for developing countries," Kiel Working Papers 1016, Kiel Institute for the World Economy (IfW Kiel).
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    Cited by:

    1. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.
    2. Kamel Louhichi & Umed Temursho & Liesbeth Colen & Sergio Gomez y Paloma, 2019. "Upscaling the productivity performance of the Agricultural Commercialization Cluster Initiative in Ethiopia [Élargissement des performance de productivité de l'Initiative des grappes de Commerciali," Working Papers hal-02790390, HAL.
    3. Liverpool-Tasie, Lenis Saweda O. & Omonona, Bolarin T. & Sanou, Awa & Ogunleye, Wale O., 2017. "Is increasing inorganic fertilizer use for maize production in SSA a profitable proposition? Evidence from Nigeria," Food Policy, Elsevier, vol. 67(C), pages 41-51.
    4. World Bank, 2005. "Ethiopia : Well-Being and Poverty in Ethiopia, The Role of Agriculture and Agency," World Bank Publications - Reports 8707, The World Bank Group.
    5. Shukri Ahmed & Craig McIntosh & Alexandros Sarris, 2020. "The Impact of Commercial Rainfall Index Insurance: Experimental Evidence from Ethiopia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1154-1176, August.
    6. Di Zeng & Jeffrey Alwang & George W. Norton & Bekele Shiferaw & Moti Jaleta & Chilot Yirga, 2015. "Ex post impacts of improved maize varieties on poverty in rural Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 46(4), pages 515-526, July.
    7. Johnson, Michael E. & Takeshima, Hiroyuki & Gyimah-Brempong, Kwabena, 2013. "Assessing the potential and policy alternatives for achieving rice competitiveness and growth in Nigeria:," IFPRI discussion papers 1301, International Food Policy Research Institute (IFPRI).
    8. Donato, Romano & Carraro, Alessandro, 2015. "Modelling Acreage, Production and Yield Supply Response to Domestic Price Volatility," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207278, Italian Association of Agricultural and Applied Economics (AIEAA).
    9. Tesfamicheal Wossen & Thomas Berger & Salvatore Di Falco, 2015. "Social capital, risk preference and adoption of improved farm land management practices in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 81-97, January.
    10. Kassie, Menale & Yesuf, Mahmud & Köhlin, Gunnar, 2008. "The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands," RFF Working Paper Series dp-08-15-efd, Resources for the Future.
    11. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.

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