The Productivity & Profitability of Wheat and Teff Technologies in Selected Villages of Ethiopia
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Date
2001-06
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A.A.U
Abstract
This study examines the productivity and profitability of teff and wheat technologies in selected
villages of Ethiopia, namely sribana-Goderi, Eteya, Shashemene and Yetmen using Cobb-
Dauglass production function model. The paper indicated improved seed varieties,
recommended rate of DAP and Urea, farming management (practices) and environmental
factors have a significant positive impact on productivity. In addition, land under new extension
system resulted in better yield responses than farmers' practices.
The study showed that most farmers did not use improved seed varieties and recommended rate
of Urea and DAP which enhance productivity and profitability. High costs of improved seeds
and fertilizer, lack of money for down payment, lack of credit and loans etc were reasoned out as
the major one.
the paper also established that the existing technology package was profitable if land cost was
not considered. If land cost was included most of the farmers earned profit less than the market
wage rate except Sirbana-Godeti farmers. Thus, hiring-out labor is more preferable than
renting-in for landless farmers. This paper concluded that emphasis should be directed towards
the transformation of the agricultural sector through application of more productive
technologies.
agricultural development Unit (CADU, later called Arssi regional development unit, ARDU).
It was established in 1967 through a cooperation agreement between Ethiopian government and
the swedish international development authority (SIDA). The second was the Wellamo
Agricultural Development Unit (WADU) that was .established in 1970 through World Bank
assistance. WADU was followed by the Ada district development Project (ADDP), which
began operation in 1972 and was assisted by United States Agency for International
development (US AID).
however, the experience gained from CADU' and to some extent from WADU as early as 1970
proved that the intensive package programs were too costly in terms of manpower and financial
resources for large-scale expansion. An alternative strategy, more commensurate with the
resources of the nation, had to be Oesigned. This alternative strategy was called the Minimum
Package Project (MPP) and was launched in 1971 with technical assistance from SIDA.
The MPP was designed to reach a large number of farmers with few "proven" innovations that
have been developed or tested by intensive package projects and/or agricultural research
institutes of the nation. The proven innovations essentially consisted of fertilizer, improved
varieties of cereals, and the accompanying cultural practices i.e. method and rate of application
of fertilizer, sowing rate and sowing dates of the improved varieties of seeds. The approach
employed in MPP was supposed to be less costly on per farmer bases than CADD, WADU, or
ADDP. But evaluation of the project proved that its objectives was not achieved since the
expansion of commercial farming seriously constrained the impact of the projects on
smallholders agriculture [Mulat, 1989; Dejene 1999].
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Keywords
Ethiopia, Profitability, Productivity