Economic Performance and Development of State Farms: A Case Study of the Middle Awash Cotton Producing State Farms
No Thumbnail Available
Date
1988-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
This thesis reports on a case study of the middle Awash cotton ..
producing farms conducted with the objective of assessing the economic
performance of Ethiopia’s state farms as well as identifying the
factors affecting such performance. The financial rate of return
of the farms as calculated in the study confirms the result of
aggregative studies conducted earlier that state farms are heavy
financial loosers.However it is also the study,s finding that the
same farms have consistently generated ret economic returns over
the post seven years.This is experessive of the farm,s contribution
to the economy by meeting rat material requirements of domostinc
industries and engaging elements of the actively job seeking rural
underempoved.
The contrast between the farms positive economic returns and
Their poor financial performance is mainly expiained by market dis
tortions due to the government pricing policy. It also indicates
the conflicting nature of the objectives that the government wishes
to attain throug!l state farms .
It is a second finding of the study that in spite of the current
pricing policy: the farms I financial as well as economic rate of
return figures would :lave been higher ':hall is the case at present
with a more rational use of resources.The current farm management
policy is 0ne of excessive centralization and stands in the way of
such rational use.
The findings of the study should not suggest that state farms
understudy are necessarily be the least cost means of obtaining the
benefits the farms are current’y generating.
Description
Keywords
Development, State