Urban proximity, access to value chains, and dairy productivity in Ethiopia

This article analyzes how urban proximity introduces spatial heterogeneity in farm productivity within the high-value dairy sector in one of the poorest countries in Africa, Ethiopia. We look at how urban proximity—measured as travel time—affects the decisions and productivity of milk farmers locate...

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Autores principales: Vandercasteelen, Joachim, Minten, Bart, Tamru, Seneshaw
Formato: Journal Article
Lenguaje:Inglés
Publicado: John Wiley & Sons 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/142284
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author Vandercasteelen, Joachim
Minten, Bart
Tamru, Seneshaw
author_browse Minten, Bart
Tamru, Seneshaw
Vandercasteelen, Joachim
author_facet Vandercasteelen, Joachim
Minten, Bart
Tamru, Seneshaw
author_sort Vandercasteelen, Joachim
collection Repository of Agricultural Research Outputs (CGSpace)
description This article analyzes how urban proximity introduces spatial heterogeneity in farm productivity within the high-value dairy sector in one of the poorest countries in Africa, Ethiopia. We look at how urban proximity—measured as travel time—affects the decisions and productivity of milk farmers located in rural production zones serving fresh milk to the capital Addis Ababa. Using an instrumental variable approach, we find that with each additional hour of travel time, farmers’ milk productivity per cow is reduced, on average, by almost 1 L per day or by 26%. When trying to disentangle the underlying mechanisms (and controlling for transaction costs), we find that farmers’ inclusion in “modern” value chains and their access to commercial milk buyers and milk processing companies drive the urban proximity effect. As only a limited number of farmers have access to such value chains in developing countries, measures to make dairy value chains more inclusive to remote—often poorer—farmers can, therefore, have important benefits for them, for the performance of the dairy sector in Ethiopia, and for the process of agricultural transformation as a whole.
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spelling CGSpace1422842025-12-08T10:11:39Z Urban proximity, access to value chains, and dairy productivity in Ethiopia Vandercasteelen, Joachim Minten, Bart Tamru, Seneshaw value chains milk production dairies urban areas agricultural transformation productivity time use patterns This article analyzes how urban proximity introduces spatial heterogeneity in farm productivity within the high-value dairy sector in one of the poorest countries in Africa, Ethiopia. We look at how urban proximity—measured as travel time—affects the decisions and productivity of milk farmers located in rural production zones serving fresh milk to the capital Addis Ababa. Using an instrumental variable approach, we find that with each additional hour of travel time, farmers’ milk productivity per cow is reduced, on average, by almost 1 L per day or by 26%. When trying to disentangle the underlying mechanisms (and controlling for transaction costs), we find that farmers’ inclusion in “modern” value chains and their access to commercial milk buyers and milk processing companies drive the urban proximity effect. As only a limited number of farmers have access to such value chains in developing countries, measures to make dairy value chains more inclusive to remote—often poorer—farmers can, therefore, have important benefits for them, for the performance of the dairy sector in Ethiopia, and for the process of agricultural transformation as a whole. 2021-07-01 2024-05-22T12:10:16Z 2024-05-22T12:10:16Z Journal Article https://hdl.handle.net/10568/142284 en https://doi.org/10.2499/p15738coll2.133437 https://doi.org/10.2499/p15738coll2.134764 Open Access John Wiley & Sons Vandercasteelen, Joachim; Minten, Bart; and Tamru, Seneshaw. 2021. Urban proximity, access to value chains, and dairy productivity in Ethiopia. Agricultural Economics 52(4): 665-678. https://doi.org/10.1111/agec.12641
spellingShingle value chains
milk production
dairies
urban areas
agricultural transformation
productivity
time use patterns
Vandercasteelen, Joachim
Minten, Bart
Tamru, Seneshaw
Urban proximity, access to value chains, and dairy productivity in Ethiopia
title Urban proximity, access to value chains, and dairy productivity in Ethiopia
title_full Urban proximity, access to value chains, and dairy productivity in Ethiopia
title_fullStr Urban proximity, access to value chains, and dairy productivity in Ethiopia
title_full_unstemmed Urban proximity, access to value chains, and dairy productivity in Ethiopia
title_short Urban proximity, access to value chains, and dairy productivity in Ethiopia
title_sort urban proximity access to value chains and dairy productivity in ethiopia
topic value chains
milk production
dairies
urban areas
agricultural transformation
productivity
time use patterns
url https://hdl.handle.net/10568/142284
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