SMALLHOLDER HOUSEHOLDS’ TECHNOLOGY ADOPTION, EFFICIENCY AND WELFARE EFFECT OF IMPROVED WHITE HARICOT BEANS PRODUCTION IN EAST SHEWA ZONE OF SOUTH-EASTERN ETHIOPIA

Abstract

White haricot bean is the major source of cash in domestic and international markets and serves as the cheapest source of protein diet for the rural households. Despite the contribution, its adoption is so low; and the efficiency status and welfare contribution of the crop is not well documented. In light of this, this research was meant to study adoption, efficiency and welfare effect of white haricot beans in the study area. A multi-stage sampling procedure was used to select three districts (nine villages) from east Shewa zone. A total of 394 sample households were randomly selected proportional to size at each sample unit. Both descriptive statistics and econometric models were used to analyze the data. Double hurdle model and parametric stochastic frontier model of Cobb Douglass type production and cost functions were used to analyze the determinants of adoption and estimate production and cost efficiency scores, respectively. The determinants of efficiency differentials among the households were analyzed using a two limit Tobit model. Endogenous Switching Regression model was employed to analyze the effect of improved white haricot beans adoption on the welfare of sample households. Adoption study revealed that the two decision tiers are independent and same or different factors affected the two tiers. The decision to adopt is positively and significantly influenced by frequency of extension contacts, land holding size, agricultural income, perception of the household heads (about price, contribution to soil fertility and nutritional importance), training, and crop diversification; and negatively by distance to market and form of possession of haricot bean plot (tenure). Intensity of adoption is positively affected by non-farm income, contact with NGOs, and negatively with the number of dependents and form of possession of haricot beans plot (tenure). The mean level of technical, allocative and economic efficiency of haricot bean is 0.94, 0.92 and 0.87 percent, respectively. Technical efficiency is significantly and positively influenced by sex (male=1), membership in farmers cooperatives, education of the family, experience in haricot beans farming, use of certified seeds, income from the farm sector and crop diversification; and negatively affected by age of the households. Allocative efficiency differential is significantly and positively influenced by farming experience and household size; and negatively influenced by sex, distance to market and fragmentation of land. Economic efficiency is significantly and positively affected by the education of the family and household size, and negatively by distance to market and fragmentation of land. Adoption of white haricot bean was positively and significantly influenced by crop income with mixed results on food consumption expenditure of the households. Provision of improved extension services, enhancing the perceptions on the important attributes of the crop, training, and better access to market are proposed for first hand adoption of white haricot beans while works on the creation of alternative sources of income (non-farm activities) contributes more to the intensity of adoption. Supply of certified seeds, education of the households and family members, and access to resources (credit and other inputs, in particular for female headed households) are proposed to improve the technical efficiency. Allocative and Economic efficiencies could be improved through better access to markets, better education of the households and discouraging fragmentation of land. Adoption of improved white haricot bean variety positively contributed to the income (welfare) of the households, even though the effect on households’ food consumption was unclear. A continuous research on the use of new crop varieties that are adaptable to a changing environment is necessary to improve the welfare of the households.