ENST PRODUCTION EFFICIENCY AND IMPACTS OF PARTICIPATION IN ENSET PRODUCTS MARKETING ON FOOD SECURITY IN GEDEO ZONE, SOUTHERN NATIONS NATIONALITITES PEOPLES REGION, ETHIOPIA

Abstract

Enset is one of the major food crops supporting many people in Southern Nations, Nationalities and Peoples Region. The crop requires intensive management and has high amount of nutrients. However, only limited efforts have been made to improve productivity and marketing of the crop though the demand for the crop increases from time to time. Therefore, this study examines enst production efficiency and impacts of participation in enset products marketing on food security in gedeo zone, southern nations, nationalitites peoples region, Ethiopia. The data for this study were collected from primary and secondary sources. Primary data were collected from 380 randomly selected farm households and 53 traders namely (11 local collectors, 15 wholesalers, 7 processors, 12 retailers and 8 hotels/restaurants). The data were analyzed using descriptive statistics, and econometric models including Cobb-Douglas production function, two limits Tobit, double hurdle, Binary Logit, Endogenous switching regression (ERS) and Seemingly Unrelated Regression models. Results show that, the mean technical, allocative and economic efficiency scores were 72.45, 50.9 and 36.47%, respectively. This indicates the existence of substantial inefficiencies in Enset production in the study area. The total gross marketing margin (TGMM) for kocho was the highest in Channel I (59.18%), followed by channel III, which accounted for (50%), whereas TGMM of bulla was the highest in Channel V (68.08%) followed by channel III (66.66%). Results also show that, 54.47% of the sample households were food insecure and 45.53% were food secure. With an average daily calorie intake of 2,894.08 Kcal, farm households who participated in Enset product marketing could enjoy significantly higher calorie intake than those who did not participate, with an average of 454.86 Kcal. With an average income of 17,268.16 Birr, farm households who participated in Enset product marketing could enjoy significantly higher annual income than those who did not participate, with an average of 8,483.97 Birr. Two-limit Tobit model results revealed that, technical, allocative and economic efficiencies are significantly affected by education level, family size, off/non-farm income, distance to market, frequency of extension contact, and use of improved agricultural input. The results of the first-hurdle for kocho showed that land allocated for Enset farming, age, family size, livestock holding, credit access, extension contacts, non-farm xviii income and amount of kocho produced, influenced households’ decision to participate in kocho marketig positively and significantly whereas distance to market and dependency ratio influenced it negatively and significantly. On the other hand, the results of second-hurdle for kocho indicated that amount of marketing of kocho was influenced by land allocated for Enset, age, family size, livestock holding, credit access, extension contacts, amount of kocho produced, non-farm income, average price of kocho but was influenced by distance to market negatively and significantly. On the other hand, the results of the first-hurdle for bulla showed that sex, land allocated for Enset, age, family size, livestock holding, credit access, extension contacts, amount of kocho produced, non-farming income, the amount of bulla produced positively and significantly whereas distance to the market influenced it negatively and significantly. On the other hand, the results of second-hurdle indicated that amount of marketing of bulla was influenced by land allocated for Enset, age, family size, livestock holding, credit access, extension contacts, amount of bulla produced, non-farm income, average price of bulla but it was influenced by distance to market negatively and significantly. Food security of the farm households was positively and significantly influenced by age, sex, education, productive safety nets program, livestock holding, credit access, extension contacts, non-farm income, amount of kocho produced, amount of bulla produced, whereas it was negatively and significantly influenced by family size, distance to market and dependency ratio. Overall, participation in Enset product marketing has a positive and significant impact on rural farmers’ food security and income. Policymakers, agricultural planners, concerned institutions and organizations should focus on strengthening the provision of formal and informal education, promoting and empowering females and clout policies on improving rural family planning, strengthening the existing extension program, enhancing farmer’s resource endowment, promotion of improved Enset varieties, improving crop-livestock production system and use recommended agronomic practices in Enset farming.