Simultaneous estimation of multiple dairy technologies uptake

Deribe, Yared and Tesfaye, Agajie (2017): Simultaneous estimation of multiple dairy technologies uptake. Published in: International Journal of Environmental & Agriculture Research , Vol. 3, No. 5 (1 May 2017): pp. 48-61.

Abstract

The low productivity of the Ethiopian dairy sector has been explained by the genetic potentials and management practices. Milk production and consumption largely rely on the indigenous cows. To enhance the contribution of dairy to household food security, nutrition, and income, the adoption of improved dairy breeds together with the component practices is indispensable. To study the adoption of the dairy technologies and the factors stimulating the choices, a cross-sectional household survey was conducted in the central and eastern Ethiopia. Results declare that the rate of adoption of improved breeds, artificial insemination, and improved forage remained to be limited. The uptake of concentrate feeding is found to be relatively better. As the joint multivariate probit estimation confirmed, there is complementarity and interdependence in the uptake of improved breeds, artificial insemination, concentrate feeds, and improved forages. The utilization of forage lagged behind to complement the adoption of improved cows. Tobit model determination confirmed that the same factors are affecting the adoption decisions. The factors responsible for the joint adoptions, the number of cows owned and intensity of adoption include education status, household wealth, access to markets and district centers, contacts with extension and gender roles. Both the joint and individual analyses highlighted the need for strategies that could overcome the constraints and ensure better uptake of the technologies.

• Item Type: MPRA Paper
• Language: English
• Keywords: productivity; adoption; joint estimation; complementarity; adoption intensity; responsible factors
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q16 - R&D ; Agricultural Technology ; Biofuels ; Agricultural Extension Services; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

References

Ahmed, M.A.M., Ehui, S. and Assefa, Y., 2004. Dairy Development in Ethiopia. International Food Policy Research Institute, Washington, DC.

Alemayehu, M., Amede, T., BÖhme, M., Peters, K.J., 2012. Increasing Livestock Water Productivity under Rain Fed Mixed Crop/Livestock Farming Scenarios of Sub-Saharan Africa: A Review. Journal of sustainable development 5, 1-10.

Ayele, S., Duncan, A., Larbi, A., Khanh, T.T., 2012. Enhancing innovation in livestock value chains through networks: Lessons from fodder innovation case studies in developing countries. Science and public policy 39, 333-346.

Baltenweck, I., Yamano, T., and Staal, S.J., 2006. Dynamic Changes in Dairy Technologies Uptake in the Kenya Highlands. Poster paper prepared for presentation at the International Association of Agricultural Economists Conference, Gold Coast, Australia.

Belderbos R., Carree M., Diederen B., Lokshin B., and Veugelers R. 2004.Heterogeneity in R&D cooperation strategies. International Journal of Industrial Organization. 22: 1237-1263.

Bernard, T., Spielman, D.J., 2009. Reaching the rural poor through rural producer organizations? A study of agricultural marketing cooperatives in Ethiopia. Food Policy 34, 60-69.

Byerlee, D., & Hesse de Polanco, E., 1986. Farmers' Stepwise Adoption of Technological Packages: Evidence from the Mexican Altiplano. American Journal of Agricultural Economics, 68 (3), 519-527.

CSA (Central Statistical Agency), 2015. Report on crop and livestock product utilization. Volume VII. Addis Ababa, Ethiopia.

Delgado, C.L., 2003. Rising Consumption of Meat and Milk in Developing Countries Has Created a New Food Revolution. The Journal of Nutrition 133, 3907S-3910S.

Dercon S., 2008. Fate and Fear: Risk and Its Consequences in Africa. Journal of African Economies. Volume 17, AERC supplement 2.

Dercon S., 1996. Risk, Crop Choice, and Savings: Evidence from Tanzania. Economic Development and Cultural Change, Vol. 44, No. 3, pp. 485-513

Diiro G.M., Sam A.G., 2015. Agricultural technology adoption and non-farm earnings in Uganda: A semiparametric analysis. The Journal of Developing Areas. Volume 49 No. 2.

Duncan, A., Teufel, N., Mekonnen, K., Singh, V., Bitew, A., Gebremedhin, B., 2013. Dairy intensification in developing countries: Effects of market quality on farm-level feeding and breeding practices. Animal: an international journal of animal bioscience 7, 2054.

Ellis, F. and Freeman. H. A., 2004. “Rural Livelihoods and Poverty Reduction Strategies in Four African Countries”. Journal of Development Studies, Vol. 40, No. 4, pp. 1-30.

Ergano K., 2015. Understanding factors affecting technology adoption in smallholder livestock production systems in Ethiopia: The role of farm resources and the enabling environment. PhD thesis, Wageningen University.

Fafchamps, M., 2004. Market institutions in sub-Saharan Africa: Theory and evidence. MIT Press Books 1.

FAOSTAT, 2014. FAOSTAT database. Food and Agriculture Organization of the United Nations, Rome, Italy.

Feder, G., and Umali, D.l., 1993. The Adoption of Agricultural Innovations A Review. Technological Forecasting and Social Change 43, 215-239.

Feder, G., Richard, E.J, and David, Z., 1985. Adoption of agricultural innovations in developing countries: a survey. Economic development and cultural change, 33: 255-298.

Foster, A and M. Rosenzweig., 1995. Learning by Doing and Learning from Others: Human Capital and Farm household Change in Agriculture. Journal of Political Economy 103(6): 1176-1209.

Gebremedhin, B., Ahmed, M., Ehui, S., 2003. Determinants of adoption of improved forage technologies in crop-livestock mixed systems: Evidence from the highlands of Ethiopia.

Gebremedhin, B., Hirpa, A. and Berhe, K., 2009. Feed marketing in Ethiopia: Results of rapid market appraisal. Improving Productivity and Market Success (IPMS) of Ethiopian farmers project Working Paper 15. ILRI (International Livestock Research Institute), Nairobi, Kenya. 64 pp.

Gebremedhin, B., Tegegne, A., Hoekstra, D., Jemaneh, S., Shiferaw, K., Bogale, A. and Getahun, Y., 2014. Developing the butter value chain in Ethiopia. LIVES Working Paper 1. Nairobi, Kenya: International Livestock Research Institute.

Godfray, H.C.J., Beddington, J.R., Crute, I.R., Haddad, L., Lawrence, D., Muir, J.F., Pretty, J., Robinson, S., Thomas, S.M., Toulmin, C., 2010. Food Security: The Challenge of Feeding 9 Billion People. Science 327, 812-818.

Gollin, D., Morris, M., Byerlee, D., 2005. Technology adoption in intensive post-green revolution systems. Am. J. Agric. Economics 87 (5), 1310–1316.

Greene, W.H., 1990. Econometric Analysis. 2nd Edn. (Macmillan Publishing Company: New York, USA). 783 pp.

Greene, W.H., 2003. Econometric Analysis. Prentice Hall, New Jersey.

Jalleta, M., Gebremedhin, B., Tegegne, A., Jemaneh, S., Lemma, T., Hoekstra, D., 2013. Evolution of input supply and service hubs in dairy development at Ada'a milk shed in Ethiopia. Development in Practice 23, 249-263.

Jayne, T.S., Mather, D., Mghenyi, E., 2010. Principal Challenges Confronting Smallholder Agriculture in Sub-Saharan Africa. World Development 38, 1384-1398.

Just, R. E. & Zilberman, D., 1983. Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture. Oxford Economic Papers, Oxford University Press, 35 (2), 307-328.

Kebede, Y., Gunjal, K., & Coffin, G., 1990. Adoption of New Technologies in Ethiopian Agriculture: The Case of Tegulet-Bulga District Shoa Province. Agricultural Economics, 4 (1), 27-43.

Kebede, Y.M., John, G., and Garth, C., 1993. Strategic Decision-Making: Adoption of Agricultural Technologies and Risk in a Peasant Economy. MPRA Paper No. 387

Kondylis, F., Mueller, V. and Zhu, J., 2017. Seeing is believing? Evidence from an extension network experiment. Journal of Development Economics 125 1–20.

Koundouri, P., Nauges C.E. and Tzouvelekas V., 2006. Technology adoption under production uncertainty: Theory and application to irrigation technology. American Journal of Agricultural Economics. 88(3): 657–670.

Leathers, H. D., and Smale, M., A, 1991. Bayesian Approach to Explaining Sequential Adoption of Components of a Technological Package, American Journal of Agricultural Economics 68, 519-527.

Legese, G., Langyintuo, A.S., Mwangi, W., Jaleta, M., and Rovere, R.L., 2009. Household Resource Endowment and Determinants of Adoption of Drought Tolerant Maize Varieties: A Double-hurdle Approach. Contributed Paper prepared for presentation at the International Association of Agricultural Economists Conference, Beijing, China.

Lenné, J.M., Wood, D., 2004. Is there a ‘logic of fodder legumes’ in Africa? Food Policy 29, 565-585.

Lindner, R.K., 1987. Adoption and diffusion of technology: an overview. In: Champ, B.R., Highly, E., Remenyi, J.V. (Eds.), Technological Change in Postharvest Handling and Transportation of Grains in the Humid Tropics. ACIAR Proceedings Series, Australian Centre for International Agricultural Research, No. 19, pp. 144–151.

Marenya, P.P. and Barrett, C.B., 2007. Household-level determinants of adoption of improved natural resources management practices among smallholder farmers in western Kenya. Food Policy 32, 515–536.

Marra, M., Pannell, D.J., and Ghadim, A.A., 2003. The economics of risk, uncertainty and learning in the adoption of new agricultural technologies: where are we on the learning curve? Agricultural Systems 75 (2003) 215–234.

Pitt, M. M., and Sumodiningrat, G., 1991. Risk, Schooling and the Choice of Seed Technology in Developing Countries: A Meta-Profit Function Approach. International Economic Review 32, 457-473.

Poirier D. J. and Kapadia D., 2012. Multivariate versus multinomial probit: when are binary decisions made separately also jointly optimal? University of California, Irvine.

Reardon, T., 1997. “Using Evidence of Household Income Diversification to Inform Study of the Rural Nonfarm Labor Market in Africa”, 1997, World Development, Vol. 25, No. 5, pp. 735-738.

Rogers, E. M. 2003. Diffusion of Innovation. 5th Edition ed. New York: Free Press.

Rogers, E.M., Shoemaker, F.F., 1971. Communication of Innovations: A Cross-Cultural Approach. New York: Free Press.

Sattler, C. and Nagel, U.J., 2006. Factors affecting farmers’ acceptance of conservation measures. Leibniz-Centre for Agricultural Landscape Research (ZALF) e.V., Institute of Socio-economics, Müncheberg.

Schindler, 2009. 'Credit for What? Informal Credit as a Coping Strategy of Market Women in Northern Ghana', Journal of Development Studies, 46: 2, 234 — 253.

Semgalawe Z.M. and Folmer H., 2000. Household adoption behaviour of improved soil conservation: the case of the North Pare and West Usambara Mountains of Tanzania. Land Use Policy 17, 321-336.

Smit, B. and Smithers, J., 1992. Adoption of soil conservation practices: an empirical analysis in Ontario, Canada. Land degradation and Rehabilitation. VOL. 3, 1-14.

Smith, P., 2013. Delivering food security without increasing pressure on land. Global Food Security 2, 18-23.

Spielman, D.J., Byerlee, D., Alemu, D., Kelemework, D., 2010. Policies to promote cereal intensification in Ethiopia: The search for appropriate public and private roles. Food Policy 35, 185-194.

Staal, S.J., 1995. Peri urban Dairying and Public Policies in Ethiopia and Kenya: A comparative Economic and Institutional Analysis, Dept of Food and Resource Economics. Univ. of Florida, Gainesville, Florida.

Staal, S.J., Nin Pratt, A., Jabbar, M., 2008. Dairy development for the resource poor. Part 2: Kenya and Ethiopia. Dairy development case studies, Pro-Poor Livestock Policy Initiative, Rome, 1-67.

Stifel, D. & Minton, B., 2004. Isolation, Welfare, and Agricultural Productivity. Cornell University Working Paper.

Teklewold H., Kassie M., and Shiferaw B., 2012. Adoption of Multiple Sustainable Agricultural Practices in Rural Ethiopia, Journal of Agricultural Economics 64(3): 597-623.

Thirtle, C. G., and Ruttan, V. W., 1987. The Role of Demand and Supply in the Generation and Diffusion of Technical Change, Harwood Academic Publishers, London.

Verbeek M., 2008. A guide to modern econometrics, John Wiley and Sons Ltd, England.

Weir, S. & Knight, J., 2004. Externality Effects of Education: Dynamics of the Adoption and Diffusion of an Innovation in Rural Ethiopia. Economic Development and Cultural Change, 53, 93-113.

Wozniak, G. 1987. Human Capital, Information, and the Early Adoption of New Technology. The Journal of Human Resources, 22 (1), 101-112.

Yigezu, Y.A., Tizale C.Y., and Aden Aw-Hassan A.A, 2015. Modeling Farmers’ Adoption Decisions of Multiple Crop Technologies: The Case of Barley and Potatoes in Ethiopia. International Conference of Agricultural Economists. Milan, Italy.