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Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia

Received: 27 April 2023    Accepted: 25 May 2023    Published: 15 June 2023
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Abstract

Contract farming (CF) has been one of the strategies employed to improve the commercialization of malt barley and substitute imported malt barley in Ethiopia, in addition to addressing production and marketing challenges. Additionally, the anticipated results include meeting domestic malt barley demand, enhancing the welfare of smallholder farmers, and conserving the nation's foreign exchange. However, there is a relatively low rate of participation in CF, that has yet to be thoroughly studied. Accordingly, the purpose of this study was to identify the variables influencing the level of participation in CF among malt barley farmers in Northwestern Ethiopia. A semi-structured interview schedule was used to collect data from 398 (189 CF participants and 209 non-participants) malt barley farmers randomly selected from 9 kebeles in 2 districts selected by multistage sampling procedures. The inferential statistics highlighted marked differences and associations between malt barley CF participants and non-participants. According to the results of a probit model, CF participation of malt barley farmers was positively correlated with the frequency of extension contact, field day and training participation, cooperative membership, access to credit, and household size. To strengthen and enhance the CF participation of malt barley farmers, the government and non-governmental organizations, and other concerned bodies should improve cooperative and financial performance and the agricultural extension system.

Published in American Journal of Theoretical and Applied Business (Volume 9, Issue 2)
DOI 10.11648/j.ajtab.20230902.14
Page(s) 44-56
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Malt Barley, Contract Farming, Participation, Probit, Ethiopia

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Cite This Article
  • APA Style

    Abebe Dagnew, Degye Goshu, Lemma Zemedu, Million Sileshi. (2023). Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia. American Journal of Theoretical and Applied Business, 9(2), 44-56. https://doi.org/10.11648/j.ajtab.20230902.14

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    ACS Style

    Abebe Dagnew; Degye Goshu; Lemma Zemedu; Million Sileshi. Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia. Am. J. Theor. Appl. Bus. 2023, 9(2), 44-56. doi: 10.11648/j.ajtab.20230902.14

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    AMA Style

    Abebe Dagnew, Degye Goshu, Lemma Zemedu, Million Sileshi. Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia. Am J Theor Appl Bus. 2023;9(2):44-56. doi: 10.11648/j.ajtab.20230902.14

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  • @article{10.11648/j.ajtab.20230902.14,
      author = {Abebe Dagnew and Degye Goshu and Lemma Zemedu and Million Sileshi},
      title = {Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia},
      journal = {American Journal of Theoretical and Applied Business},
      volume = {9},
      number = {2},
      pages = {44-56},
      doi = {10.11648/j.ajtab.20230902.14},
      url = {https://doi.org/10.11648/j.ajtab.20230902.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20230902.14},
      abstract = {Contract farming (CF) has been one of the strategies employed to improve the commercialization of malt barley and substitute imported malt barley in Ethiopia, in addition to addressing production and marketing challenges. Additionally, the anticipated results include meeting domestic malt barley demand, enhancing the welfare of smallholder farmers, and conserving the nation's foreign exchange. However, there is a relatively low rate of participation in CF, that has yet to be thoroughly studied. Accordingly, the purpose of this study was to identify the variables influencing the level of participation in CF among malt barley farmers in Northwestern Ethiopia. A semi-structured interview schedule was used to collect data from 398 (189 CF participants and 209 non-participants) malt barley farmers randomly selected from 9 kebeles in 2 districts selected by multistage sampling procedures. The inferential statistics highlighted marked differences and associations between malt barley CF participants and non-participants. According to the results of a probit model, CF participation of malt barley farmers was positively correlated with the frequency of extension contact, field day and training participation, cooperative membership, access to credit, and household size. To strengthen and enhance the CF participation of malt barley farmers, the government and non-governmental organizations, and other concerned bodies should improve cooperative and financial performance and the agricultural extension system.},
     year = {2023}
    }
    

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  • TY  - JOUR
    T1  - Determinants of Participation in Contract Farming Among Malt Marley Farmers in North-Western Ethiopia
    AU  - Abebe Dagnew
    AU  - Degye Goshu
    AU  - Lemma Zemedu
    AU  - Million Sileshi
    Y1  - 2023/06/15
    PY  - 2023
    N1  - https://doi.org/10.11648/j.ajtab.20230902.14
    DO  - 10.11648/j.ajtab.20230902.14
    T2  - American Journal of Theoretical and Applied Business
    JF  - American Journal of Theoretical and Applied Business
    JO  - American Journal of Theoretical and Applied Business
    SP  - 44
    EP  - 56
    PB  - Science Publishing Group
    SN  - 2469-7842
    UR  - https://doi.org/10.11648/j.ajtab.20230902.14
    AB  - Contract farming (CF) has been one of the strategies employed to improve the commercialization of malt barley and substitute imported malt barley in Ethiopia, in addition to addressing production and marketing challenges. Additionally, the anticipated results include meeting domestic malt barley demand, enhancing the welfare of smallholder farmers, and conserving the nation's foreign exchange. However, there is a relatively low rate of participation in CF, that has yet to be thoroughly studied. Accordingly, the purpose of this study was to identify the variables influencing the level of participation in CF among malt barley farmers in Northwestern Ethiopia. A semi-structured interview schedule was used to collect data from 398 (189 CF participants and 209 non-participants) malt barley farmers randomly selected from 9 kebeles in 2 districts selected by multistage sampling procedures. The inferential statistics highlighted marked differences and associations between malt barley CF participants and non-participants. According to the results of a probit model, CF participation of malt barley farmers was positively correlated with the frequency of extension contact, field day and training participation, cooperative membership, access to credit, and household size. To strengthen and enhance the CF participation of malt barley farmers, the government and non-governmental organizations, and other concerned bodies should improve cooperative and financial performance and the agricultural extension system.
    VL  - 9
    IS  - 2
    ER  - 

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Author Information
  • School of Agricultural Economics and Agribusiness, Haramaya University, Dire Dawa, Ethiopia

  • Ethiopian Economics Association, Addis Ababa, Ethiopia

  • Ethiopian Institute of Agricultural Research, Addis Ababa, Ethiopia

  • School of Agricultural Economics and Agribusiness, Haramaya University, Dire Dawa, Ethiopia

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