THE STATUS AND CONTRIBUTION OF URBAN AGRICULTURE TO HOUSEHOLD CONSUMPTION, EMPLOYMENT AND INCOME IN BAHIR DAR CITY ADMINISTRATION, AMHARA REGIONAL STATE, ETHIOPIA

Abstract

The study aims at analyzing the status of urban agriculture, its contribution to income and employment at household level, assessing socioeconomic determinants of farming households’ monthly expenditure on food and identifying major opportunities and constraints of urban agriculture in the case of Bahir Dar City. To meet these objectives, primary and secondary data were collected. To analyze these data both descriptive and inferential statistics were applied. Moreover, econometric model was applied to analyze socioeconomic determinants of farming households’ monthly expenditure on food. The result indicated that various forms of urban farming such as; poultry, fattening, dairy, fruit and vegetable, nursery and ornamental crop has been found in the city. The result further indicated that the sector has played multiple roles to the farmers such as; a means of income generation, employment and household food supplement. Some 35.3% of the surveyed households were fully dependent on urban agriculture as a source of employment. The rest 64.7% of the surveyed households had nonfarm employment sources in addition to farm employment. On average, the farming HHs generates 4,316.9 birr net monthly income from farm and nonfarm sources. Net average farm and nonfarm income for the farming HHs was birr 3,119.2 and birr 1,197.8 respectively. Majority (74.2%) of the household level producers covers above 50% of their monthly income from UA sources. Contribution of direct consumption of farm produce on reduction of household monthly food expenditure was minimal and t-test result indicates there was no difference between households who covers some of their expenditure from own produce and those fully depends on market. According to model result, sex of household head, family size, dependency ratio, formal employment status of the household head, Ln of farm and Ln of nonfarm income were socio-economic factors affect households expenditure on food. Despite its contribution, the sector has faced various challenges from which institutional challenges are dominant.