On the profitability of irrigated fodder production: comparative evidence from smallholders in Koga irrigation scheme, Ethiopia

Irrigated fodder production can be vitalised as a useful strategy to sustainably intensify subsistence livestock production owned and managed by smallholders and to diversify farm income through linkages to commercial livestock systems. However, uncertainty about the production and market environmen...

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Autores principales: Getnet, Kindie, Haileslassie, Amare, Dessalegne, Y., Hagos, Fitsum, Gebregziabher, Gebrehaweria
Formato: Journal Article
Lenguaje:Inglés
Publicado: Commonwealth Scientific and Industrial Research Organisation 2017
Materias:
Acceso en línea:https://hdl.handle.net/10568/78188
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author Getnet, Kindie
Haileslassie, Amare
Dessalegne, Y.
Hagos, Fitsum
Gebregziabher, Gebrehaweria
author_browse Dessalegne, Y.
Gebregziabher, Gebrehaweria
Getnet, Kindie
Hagos, Fitsum
Haileslassie, Amare
author_facet Getnet, Kindie
Haileslassie, Amare
Dessalegne, Y.
Hagos, Fitsum
Gebregziabher, Gebrehaweria
author_sort Getnet, Kindie
collection Repository of Agricultural Research Outputs (CGSpace)
description Irrigated fodder production can be vitalised as a useful strategy to sustainably intensify subsistence livestock production owned and managed by smallholders and to diversify farm income through linkages to commercial livestock systems. However, uncertainty about the production and market environment of such a non-traditional commodity can be a major hindrance against commercialisation and scaling out of irrigated fodder production. This makes ex-ante analysis of profit portfolio and its determinants necessary in order to improve farmers’ investment and risk management decisions. Using a stochastic approach to farm profit analysis to account for business uncertainty, this paper simulated and compared the level and distribution of profit that smallholders in Koga irrigation scheme (Ethiopia) can generate from irrigated Rhodes grass seed and from traditional irrigated crops. The finding shows the absolute and comparative profitability of irrigated Rhodes grass seed. Though 0.19 times less profitable than irrigated onion, irrigated Rhodes grass seed is 4 times, 1.27 times, and 1.25 times more profitable than irrigated barley, irrigated wheat, and irrigated tomato, respectively. Profit from the commodity is robust to adverse business conditions such as yield reduction, cost increase, and price reduction, assuring optimism about positive financial returns from investments to expand production. Long-term business viability can be improved and farm income further stabilised through interventions targeted at fodder agronomy to enhance crop yield and at value chain development to improve market linkages and output price.
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spelling CGSpace781882025-12-08T10:29:22Z On the profitability of irrigated fodder production: comparative evidence from smallholders in Koga irrigation scheme, Ethiopia Getnet, Kindie Haileslassie, Amare Dessalegne, Y. Hagos, Fitsum Gebregziabher, Gebrehaweria irrigation schemes irrigated farming farm income profitability investment smallholders stochastic processes livestock risk management grasslands chloris gayana crop production feed crops onions tomatoes wheat barley Irrigated fodder production can be vitalised as a useful strategy to sustainably intensify subsistence livestock production owned and managed by smallholders and to diversify farm income through linkages to commercial livestock systems. However, uncertainty about the production and market environment of such a non-traditional commodity can be a major hindrance against commercialisation and scaling out of irrigated fodder production. This makes ex-ante analysis of profit portfolio and its determinants necessary in order to improve farmers’ investment and risk management decisions. Using a stochastic approach to farm profit analysis to account for business uncertainty, this paper simulated and compared the level and distribution of profit that smallholders in Koga irrigation scheme (Ethiopia) can generate from irrigated Rhodes grass seed and from traditional irrigated crops. The finding shows the absolute and comparative profitability of irrigated Rhodes grass seed. Though 0.19 times less profitable than irrigated onion, irrigated Rhodes grass seed is 4 times, 1.27 times, and 1.25 times more profitable than irrigated barley, irrigated wheat, and irrigated tomato, respectively. Profit from the commodity is robust to adverse business conditions such as yield reduction, cost increase, and price reduction, assuring optimism about positive financial returns from investments to expand production. Long-term business viability can be improved and farm income further stabilised through interventions targeted at fodder agronomy to enhance crop yield and at value chain development to improve market linkages and output price. 2017 2016-12-07T04:32:19Z 2016-12-07T04:32:19Z Journal Article https://hdl.handle.net/10568/78188 en Limited Access Commonwealth Scientific and Industrial Research Organisation Getnet, Kindie; Haileslasseie, Amare; Dessalegne, Y.; Hagos, Fitsum; Gebregziabher, Gebrehaweria. On the profitability of irrigated fodder production: comparative evidence from smallholders in Koga irrigation scheme, Ethiopia. Animal Production Science, 13p. (Online first). doi: 10.1071/AN15651
spellingShingle irrigation schemes
irrigated farming
farm income
profitability
investment
smallholders
stochastic processes
livestock
risk management
grasslands
chloris gayana
crop production
feed crops
onions
tomatoes
wheat
barley
Getnet, Kindie
Haileslassie, Amare
Dessalegne, Y.
Hagos, Fitsum
Gebregziabher, Gebrehaweria
On the profitability of irrigated fodder production: comparative evidence from smallholders in Koga irrigation scheme, Ethiopia
title On the profitability of irrigated fodder production: comparative evidence from smallholders in Koga irrigation scheme, Ethiopia
title_full On the profitability of irrigated fodder production: comparative evidence from smallholders in Koga irrigation scheme, Ethiopia
title_fullStr On the profitability of irrigated fodder production: comparative evidence from smallholders in Koga irrigation scheme, Ethiopia
title_full_unstemmed On the profitability of irrigated fodder production: comparative evidence from smallholders in Koga irrigation scheme, Ethiopia
title_short On the profitability of irrigated fodder production: comparative evidence from smallholders in Koga irrigation scheme, Ethiopia
title_sort on the profitability of irrigated fodder production comparative evidence from smallholders in koga irrigation scheme ethiopia
topic irrigation schemes
irrigated farming
farm income
profitability
investment
smallholders
stochastic processes
livestock
risk management
grasslands
chloris gayana
crop production
feed crops
onions
tomatoes
wheat
barley
url https://hdl.handle.net/10568/78188
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