Assessment of Agriculture and Industry Linkage in Ethiopia The case of Selected Agro Industries in Ada 'a Woreda
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Date
2010-07
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Addis Ababa University
Abstract
This study was conducted to assess the situation of agriculture and industry linkage
and factors that affect the linkage in Ada 'a Woreda in particular reference to agro
industries and rural farm households. The assessment used production, consumption,
labour, technology, institutions and capital as a pillar to assess the situation. To
generate appropriate data, sample survey, key informant interview and observation
were employed. Using random sampling a total of 115 farm households were drawn
based on their distance fiĀ·om Bishoftu town. Similarly, purposive sampling method was
employed to draw 6 food processing agro industries that are found in the area. A total
of 15 key informants Fom government organizations, agro industries, and business
firms (mainly traders) were also addressed. The data was collected through survey
questionnaires, key informant interviews and observations. This study elicited
important insights in the understanding of agriculture and industry linkages found in
the study area. Accordingly, it was observed that there were long established linkages
between agriculture and industlY. Most of the linkages are also recognized as indirect
in the market process. It is also identified that low agricultural production due to small
land holding and low application of modern agricultural inputs, distance of industrial
establishments Fom farm households, indirect participation of agro industries in the
local agricultural marketing system as well as dominance of wholesalers and brokers
in the local agricultural marketing system are found as the main causes for low
linkages of agriculture and industry in the area. Therefore, considering the existing
situation of individual sectoral development and linkages of the sectors in the study
area, increasing agricultural production and strengthening the agricultural marketing
system are found paramount to enhance the local linkages of agriculture and industry .
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Keywords
Agriculture and Industry, Linkage in Ethiopia.