Efficiency and profits of emerging medium-scale farms in Africa: Evidence from Ethiopia’s commercial horticultural sector
We study production practices of larger and more capital-intensive farmers (“horti-preneurs”) in horticultural commercial clusters in the central Rift Valley of Ethiopia. Attracted by profitable vegetable markets, more educated farmers rent in land for vegetable production from a large number of sma...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2021
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/143219 |
| _version_ | 1855528667396964352 |
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| author | Bachewe, Fantu Nisrane Minten, Bart |
| author_browse | Bachewe, Fantu Nisrane Minten, Bart |
| author_facet | Bachewe, Fantu Nisrane Minten, Bart |
| author_sort | Bachewe, Fantu Nisrane |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We study production practices of larger and more capital-intensive farmers (“horti-preneurs”) in horticultural commercial clusters in the central Rift Valley of Ethiopia. Attracted by profitable vegetable markets, more educated farmers rent in land for vegetable production from a large number of smallholders to meet rapidly growing urban vegetable demand. We find that these hortipreneurs obtain more than double the profit per unit of land compared to smallholders. Compared to smallholders, horti-preneurs grow different vegetables – particularly those that require more upfront investments – and in the case that they grow the same crops as smallholders, we find that they use significantly more inputs, such as fertilizer, agro-chemicals, and labor; have higher production costs; and obtain better yields. Moreover, they are also more efficient and able to produce better quality vegetables and obtain better prices. This increasing emergence of more efficient medium-scale farmers in supplying local urban markets challenges the traditional smallholder model in Africa, at least for horticulture. |
| format | Artículo preliminar |
| id | CGSpace143219 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1432192025-12-08T10:11:39Z Efficiency and profits of emerging medium-scale farms in Africa: Evidence from Ethiopia’s commercial horticultural sector Bachewe, Fantu Nisrane Minten, Bart food production farmers vegetable growing vegetables horticultural sector horticulture smallholders irrigation vegetable crops farms food prices prices profit farm size We study production practices of larger and more capital-intensive farmers (“horti-preneurs”) in horticultural commercial clusters in the central Rift Valley of Ethiopia. Attracted by profitable vegetable markets, more educated farmers rent in land for vegetable production from a large number of smallholders to meet rapidly growing urban vegetable demand. We find that these hortipreneurs obtain more than double the profit per unit of land compared to smallholders. Compared to smallholders, horti-preneurs grow different vegetables – particularly those that require more upfront investments – and in the case that they grow the same crops as smallholders, we find that they use significantly more inputs, such as fertilizer, agro-chemicals, and labor; have higher production costs; and obtain better yields. Moreover, they are also more efficient and able to produce better quality vegetables and obtain better prices. This increasing emergence of more efficient medium-scale farmers in supplying local urban markets challenges the traditional smallholder model in Africa, at least for horticulture. 2021-02-01 2024-05-22T12:12:34Z 2024-05-22T12:12:34Z Working Paper https://hdl.handle.net/10568/143219 en https://doi.org/10.2499/p15738coll2.133909 Open Access application/pdf International Food Policy Research Institute Bachewe, Fantu Nisrane; and Minten, Bart. 2021. Efficiency and profits of emerging medium-scale farms in Africa: Evidence from Ethiopia’s commercial horticultural sector. ESSP Working Paper 156. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.134266. |
| spellingShingle | food production farmers vegetable growing vegetables horticultural sector horticulture smallholders irrigation vegetable crops farms food prices prices profit farm size Bachewe, Fantu Nisrane Minten, Bart Efficiency and profits of emerging medium-scale farms in Africa: Evidence from Ethiopia’s commercial horticultural sector |
| title | Efficiency and profits of emerging medium-scale farms in Africa: Evidence from Ethiopia’s commercial horticultural sector |
| title_full | Efficiency and profits of emerging medium-scale farms in Africa: Evidence from Ethiopia’s commercial horticultural sector |
| title_fullStr | Efficiency and profits of emerging medium-scale farms in Africa: Evidence from Ethiopia’s commercial horticultural sector |
| title_full_unstemmed | Efficiency and profits of emerging medium-scale farms in Africa: Evidence from Ethiopia’s commercial horticultural sector |
| title_short | Efficiency and profits of emerging medium-scale farms in Africa: Evidence from Ethiopia’s commercial horticultural sector |
| title_sort | efficiency and profits of emerging medium scale farms in africa evidence from ethiopia s commercial horticultural sector |
| topic | food production farmers vegetable growing vegetables horticultural sector horticulture smallholders irrigation vegetable crops farms food prices prices profit farm size |
| url | https://hdl.handle.net/10568/143219 |
| work_keys_str_mv | AT bachewefantunisrane efficiencyandprofitsofemergingmediumscalefarmsinafricaevidencefromethiopiascommercialhorticulturalsector AT mintenbart efficiencyandprofitsofemergingmediumscalefarmsinafricaevidencefromethiopiascommercialhorticulturalsector |