Simeon K. Ehui

Livestock to 2020: The Next Food Revolution

A revolution is taking place in global agriculture that has profound implications for human health, livelihoods and the environment. Population growth, urbanization and income growth in developing countries are fuelling a massive increase in demand for food of animal origin. These changes in the diets of billions of people could significantly improve the well-being of many rural poor. Governments and industry must prepare for this continuing revolution with long-term policies and investments that will satisfy consumer demand, improve nutrition, direct income growth opportunities to those who need them most, and alleviate environmental and public health stress.

Strategies for sustainable agricultural development in the Ethiopian highlands

This paper investigates the impacts of population growth, market access, agricultural credit and technical assistance programs, land policies, livelihood strategies and other factors on changes in land management, natural resource conditions and human welfare indicators since 1991 in the northern Ethiopian highlands, based on a survey of 198 villages. We find that population growth has contributed significantly to land degradation, poverty and food insecurity in this region. In contrast, better market access and some credit and technical assistance programs were associated with improvement (or less decline) in land quality, wealth and food security; suggesting the possibility of “win-win-win” development outcomes with appropriate interventions. Land redistribution was associated with adoption of inorganic fertilizer, but also with declining use of fallow and declining soil fertility. We find also that different land management practices are adopted where different livelihood strategies are pursued, suggesting the importance of considering livelihood strategies in technical assistance programs. Development strategies should be tailored to the different comparative advantages of different locations; no “one-size-fits-all” strategy will work everywhere.

Policy options promoting market participation among smallholder livestock producers: a case study from the Phillipines

We investigate the factors precipitating market entry where smallholders make decisions about participation (a discrete choice about whether to sell quantities of products) and supply (a continuous-valued choice about how much quantity to sell) in a cross-section of smallholders in Northern Luzon, Philippines, in a model that combines basic probit and Tobit ideas, is implemented using Bayesian methods, and generates precise estimates of the inputs required in order to effect entry among the non-participants. We estimate the total amounts of (cattle, buffalo, pig and chicken) livestock input required to effect entry and compare and contrast the alternative input requirements. To the extent that our smallholder sample may be representative of a wide and broader set of circumstances, our findings shed light on offsetting impacts of conflicting factors that complicate the roles for policy in the context of expanding the density of participation.

Measuring the production efficiency of alternative land tenure contracts in a mixed crop-livestock system in Ethiopia

In this paper, we test the hypothesis that land held under varying configurations of property rights will be farmed at different levels of production efficiency. Production data were collected from 477 plots in a fairly productive, mixed farming system in the Ethiopian highlands. Interspatial measures of total factor productivity, based on the Divisia index, were used to measure the relative production efficiency of three informal and less secure land contracts (rented, share-cropped and borrowed) relative to lands held under formal contract with the Ethiopian government. Although the informally-contracted lands are farmed 10-16% less efficiently, the analysis indicates that farmers of such lands actually apply inputs more, rather than less, intensively (i.e., more inputs per unit of land). The gap in total factor productivity thus results from the inferior quality of inputs (or lack of skills in applying them) rather than a lack of incentive to allocate inputs to mixed crop-livestock farming. For this reason we find no empirical basis to support the hypothesis that land tenure is a constraint to agricultural productivity.

Policies for Livestock Development in the Ethiopian Highlands

Since 1991, there have been significant changes in utilization of feed resources in the Ethiopian highlands: while use of communal grazing lands and private pastures has declined, use of crop residues and purchased feed has increased. In addition, although use of animal health services and adoption of improved livestock breeds and modern management practices have increased, ownership of various types of livestock has declined. Rapid population growth has contributed most to the declining trends in grazing resources and ownership of livestock, showing the negative effects of increasing pressure on already degraded resources in the Ethiopian highlands. Land redistribution, increased participation in credit and extension programs targeting livestock, and improvement in access to markets, on the other hand, have had significant positive impacts on adoption of improved livestock technologies and ownership of livestock. Thus, reducing population growth and improving access to markets and credit and extension programs targeting livestock can enhance the role of livestock in improving food security and reducing poverty, especially in the mixed crop-livestock farming systems as exist in the East African highlands.

Measuring the sustainability and economic viability of tropical farming systems: a model from sub-Saharan Africa

New technologies must be developed in sub-Saharan Africa which are sustainable and economically viable. This paper discusses a methodology for measuring the agricultural sustainability and economic viability of tropical farming systems for new technology evaluation. The approach is based on the concept of interspatial and intertemporal total factor productivity, paying particular attention to valuation of natural resource stock and flows. Agriculture is a sector which utilizes natural resources (e.g. soil nutrients) and the stock and flows of these resources affect the production environment. However, in many cases, the stock of these resources is beyond the control of the farmer and must be accounted for in an agricultural sustainability and economic viability measurement. For example, soil nutrients are removed by crops, erosion or leaching beyond the crop root-zone, or other processes such as volatilization of nitrogen. Agricultural production can also contribute to the stock of some nutrients by leguminous plants such as agroforestry systems. Using a data set available at the International Institute of Tropical Agriculture, we compute the intertemporal and interspatial total factor productivity indices for four cropping systems in southwestern Nigeria using stock of major soil nutrients as the natural resource stock. Results show that the sustainability and economic viability measures are sensitive to changes in the stock and flow of soil nutrients as well as the material inputs and outputs. Where the contribution of natural resource stock and flows are important (such as in the case of alley cropping), the measures provide markedly different results from conventional TFP approaches. The advantage of this approach is that interspatial and intertemporal total factor productivity measures are computed using only price and quantity data, thus eliminating the need for econometric estimation.

Resource Degradation in Africa and Latin America: Population Pressure, Policies, and Property Arrangements

Degradation of renewable natural resources in the developing world is taking a serious toll. Deforestation threatens biological diversity and could alter global climate. Soil erosion reduces the capacity of many countries to satisfy expanding demands for agricultural commodities. It also jeopardizes the benefits of water resource development. Deposition of eroded soil in reservoirs, for example, diminishes hydroeletricity production and reduces irrigation water supplies. In spite of widespread concern over these environmental problems, analysis of resource degradation in poor countries is rudimentary. Simple Malthusian explanations, in particular, are widely circulated. Other than the general recommendation that human fertility be controlled, these explanations offer little guidance for the design of conservation strategies. In this paper, a broader perspective is taken on the causes of depletive human interaction with the natural environment in Africa and Latin

Measurement and sources of technical efficiency of land tenure contracts in Ethiopia

The degree to which prevailing land tenure arrangements constrain agricultural productivity, and the sources of inefficiency associated with land tenure systems in sub-Saharan Africa are unresolved. Using a stochastic frontier production function, this paper examines the economic efficiency and the determinants of inefficiency of alternative land tenure arrangements in Ethiopia. The results show that sharecropping and borrowing are less technically efficient than owner-cultivation or fixed rentals due to restrictions imposed on them by landowners and the interactions of the land market with other imperfect and absent input markets. Thus, a policy to facilitate more efficient transactions of land between farmers and functioning of input markets are expected to reduce inefficiencies associated with these tenure systems.

Demand, Supply and Willingness-to-Pay for Extension Services in an Emerging-Market Setting

Although it may be wholly inappropriate to generalize, the most important resource available to a subsistence household is the total amount of time that its members have available to spend in productive enterprises. In this context, services that minimize the time that it takes to perform productive activities are valuable to the household. Consequently the household is willing to relinquish quantities of other resources in exchange for quantities of the time-saving service. These simple observations motivate a search for the values that subsistence households place on time-saving services. This search is especially important when it is realized that extension services promote productivity, enhance the surplus-generating potential of the household and can, as a consequence, promote immersion into markets that are currently constrained by thinness and instability. In this capacity, extension visitation has the potential to overcome one of the principal impediments to economic development, namely lack of density of market participation. In this article, we consider this issue in the context of a rich data set on milk-market participation by small-holder dairy producers in the Ethiopian highlands.

Supply and Demand for Livestock Credit in Sub-Saharan Africa: Lessons for Designing New Credit Schemes

Abstract Based on analysis of credit supply in Ethiopia, Kenya, Uganda and Nigeria, it is shown that public credit institutions do not have sufficient funds to meet the demand for livestock credit and cannot mobilize savings from their clients or other commercial sources for one reason or another. In addition, available credit does not reach those who need it the most and with whom it could have the greatest impact due to the application of inappropriate screening procedures and criteria to determine creditworthiness. The analysis of demand based on borrowing and nonborrowing sample households using improved dairy technology, it is shown that not all borrowers borrowed due to liquidity constraint while some borrowers and some nonborrowers had liquidity constraint but did not have access to adequate credit. Logistic regression analysis show that sex and education of the household head, training in dairy, prevalence of outstanding loan and the number of improved cattle on the farm had significant influence on both borrowing and liquidity status of a household, though the degree and direction of influence were not always the same in each study country. Based on the findings it is suggested that combining public and commercial finance could solve the problem of inadequate credit supply while inventory finance to community level input suppliers and service providers might help in getting credit to worthy and needy smallholders at lower cost than providing credit to smallholders directly.