PRODUCTION EFFICIENCY, POST-HARVEST LOSSES AND MARKETING OF SESAME: THE CASE OF KAFTA HUMERA DISTRICT, WESTERN ZONE OF TIGRAY, ETHIOPIA

Abstract

This study analyzed production efficiency, post-harvest loss and marketing of sesame in Kafta Humera district of Tigray region, Ethiopia. It was specifically aimed to address the research gaps by measuring technical, allocative and economic efficiencies and their determinants, measuring post-harvest loss and analyzing its determinants and market performance of sesame in Kafta Humera District. For addressing these objectives the study used primary and secondary data obtained from field survey and desk review. Multistage random sampling technique was used to draw 128 and126 small and large-scale sesame producers respectively. Besides, a total of 44 assemblers, 5 cooperatives, 13 exporters and one processor were interviewed. Applying the Cobb-Douglas functional form of one step procedure the average, technical, allocative and economic efficiencies found are 62%, 84% and 52% for small-scale and 71%, 90% and 64% for large-scale producers, respectively. Regarding the small-scale producers, education level, farm distance, frequency of farm visit, training and credited amount obtained are found to be significant sources of technical, allocative and economic inefficiencies. Besides, membership in cooperative and number of extension contact are significant sources of technical and economic inefficiencies. Household age for allocative inefficiency and sesame production experience in technical inefficiency are also significant variables. Regarding large-scale producers; education level, frequency off-arm visit, sesame production experience, type of road and amount of credited received are found to be significant sources of technical, allocative and economic inefficiencies. Farm distance, ownership of living home, livestock and membership in cooperative are also significant sources of technical and economic inefficiencies. The percentages of sesame grain post-harvest loss were during harvesting (16.41%, 13.5%), drying (50.44%, 51.5%), un-threshed left over (11.55%, 17.4%), piles transportation (9.9%, 7%), storage (6.73%, 4.62%), cleaning (3.2%, 1.8%) that leads to the total loss of 23.7% and 24.6% of total production by small and large-scale producers respectively. The significant determinants of post-harvest loss for small and large-scale farms were total sesame produced, weather condition, mode of transportation, distance of piles transported, stacking days, educational level, distance of farm and sesame land size. Extension contact for small-scale; while amount of credit obtained, off-sesame farm income, road access, storage weeks and harvesting and threshing management for large-scale producers had significant effect on post-harvest loss. The major sesame market chain actors are producers, assemblers, cooperatives, exporters and processors. The concentration ratios of the first four large traders indicated weak oligopoly market structure. It is also found that there are entry barriers, information asymmetry and collusion in price setting; indicating that sesame market deviating from competitive market structure norms. Considering free on board of hulled sesame price; gross marketing margins of 5%, 12% and 45%and net marketing margins of 1%, 3% and 17% obtained by assemblers, exporters and processors, respectively. All these are indicating that the sesame market being inefficient. Depending on the results found this study recommend strengthening the introduction of improved seed, mechanized labor substituting technologies and fertility enhancing inputs. For improving efficiency and reducing post-harvest loss capacitating small and large-scale producers through strengthening education, strengthening credit access at affordable interest rate, nearby farm follow up and frequently visiting of their farm with effective farm management are better. Strengthening extension service so as to improve efficiency and reduce post-harvest loss for small-scale producers. For improving the farm level efficiency of large-scale producers, it is also important to hire certified managerial experts, strengthening different utilities of livestock and livestock products and house ownership. For minimizing post-harvest loss it is also better if harvesting and drying technologies are introduced. Regarding the market performance, it will be better if focus is given to value added product export, securing competitive market through minimizing entry barriers, strengthening timely updated market information and formal credit access, hiring marketing experts at market centers to control collusion of traders in price setting.