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2019 (8)

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Dissertation
The initiation and performance of agricultural cooperatives in Tigray, Ethiopia

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Abstract The agricultural sector in Ethiopia generates over 30% of GDP and about 80% of the population works within the agricultural sector. In an attempt to induce pro-poor growth and stimulate the agricultural sector, the Ethiopian government is promoting cooperatives. Cooperative Promotion Offices (CPOs) are active throughout the country to help initiate cooperatives. There is a lot of literature available on the impact of cooperatives on their members. Much of this literature indicates the positive effects of cooperatives on marketing, technical efficiency and welfare, but some of the research indicates the negligible or negative effects on members. Less literature is available on which cooperative characteristics help with the creation of cooperatives which perform well. The main objective of this thesis is describing the differences in performance between cooperatives and explaining the impact of specific cooperative characteristics. There is a focus on initiation methods and whether there is a difference in performance between initiation methods. A distinction is made between bottom-up cooperatives, initiated by the members themselves, top-down cooperatives, initiated by the CPOs and a third category initiated by an NGO or community organisation. In order to do this, data was analysed from a cooperative level survey, including 511 cooperatives in Tigray region, Ethiopia. This data was collected within the framework of a VLIROUS funded project. From this data, relevant variables are identified, comprehensive performance measures are created and OLS regression and andOrdered Probit model are used to estimate the impact of the different explanatory variables on performance. Significant differences between initiation methods are observed, with higher levels of trust, less incentive and horizon problems and less dependency on foreign capital in bottom-up cooperatives. The involvement of external actors during the establishment of cooperatives can be beneficial by providing training, inputs and credit. The involvement should, however, not go too far and be more in a supportive role rather than taking charge of management. Other variables outside of initiation method like the offered services, levels of heterogeneity among members and the policies regarding new and non-members are also significant.

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Dissertation
Bio-economic potential of agroforestry-based biofuel systems
Authors: --- --- --- ---
Year: 2019 Publisher: Leuven KU Leuven. Faculty of Bioscience Engineering

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Liquid biofuels are considered as a strategy for achieving energy security, stimulating rural development and mitigating climate change. Low-income countries largely focus on biofuel production from non-food crops and trees grown on underutilized lands, in order to minimize food, fuel and environmental trade-offs. Unfounded claims on the potential of such alternative biofuel crops led to large-scale investments, especially in jatropha (Jatropha curcas) monoculture plantations. Productivity and economic outcomes proved to be poor, however, which subsequently led to a global downturn in research and investment, leaving the potential of other species and approaches unexplored. In Chapter 1, we hypothesize that agroforestry-based approaches that carefully integrate a mix of native biofuel tree species into the existing farming system, offer unique opportunities in comparison with jatropha monocultures, including limited risk, increased by-product valorization, and expanded ecosystem services provision. This PhD study aims at evaluating the bio-economic potential of agroforestry-based biofuel systems by quantifying three critical success factors: farmer perception and adoption, oilseed yield, and economic impact. The in-depth empirical analysis is based on a mature agroforestry-based biofuel program in Hassan district, South India. Since 2007 this program stimulates the cultivation of native oilseed tree mixtures on farms through a range of extension and implementation activities.In Chapter 2 we assess farmer perception and adoption of oilseed trees and the biofuel value chain in Hassan district. To this end, cross-sectional survey data of 396 farm-households in Hassan district are collected. We find that although 60% of the farmers cultivate oilseed trees, oilseed collection rates are generally low (13%), as are oil expeller use (<1%) and biofuel marketing (<1%). To examine the impact of the biofuel program on adoption, we use regression analyses addressing various forms of selection bias. We find that various activities of the biofuel program stimulate oilseed tree cultivation but not oilseed collection. Low seed prices, high opportunity costs of labour, and value chain underdevelopment are major factors impeding households to collect seeds from planted or wild oilseed species.In Chapter 3 we use a labelled choice experiment to assess the same farmers' preferences for alternative production systems, value chain organisations and market developments. This allows predicting the extent to which hypothetical changes in these characteristics could change the likelihood of adoption. Our results demonstrate that biofuel programs can benefit from ex ante analyses to improve their design. We find that most farmers (71%) are likely to adopt biofuel trees in most scenarios, especially species with relatively high yields, low labour requirements and high oilseed prices. Nevertheless, value chain reorganization through contracting and labour provision proves to be the key lever to stimulate adoption. This calls for further research on effective contract design and implementation, and for developing alternative business models.Chapters 2 and 3 indicate that pongamia (Millettia pinnata) is the species with highest adoption potential. However, yield levels and dynamics of this undomesticated species remain poorly understood, despite of the fundamental role they play for its biofuel potential. In Chapter 4 we address the critical lack of scientific evidence by collecting primary seed and oil yield data from 81 pongamia trees in South India, and explore which factors might determine yields using empirical models. Our results indicate that annual seed and oil yields for pongamia trees vary widely, but generally remain below 2500 kg/ha and 1000 liter/ha, respectively. This current field performance is substantially lower than commonly reported figures in the literature. Furthermore, our results suggest that a complex interplay between genotype, environment and agronomy leads to large spatiotemporal variation in yields, and that this interplay remains poorly understood. Long-term yield monitoring is required to get better insights into yield mechanisms, and to assess the actual potential of pongamia as a reliable and significant source of biofuel feedstock.In Chapter 5 we address common methodological shortcomings in the literature on profitability of novel biofuels, by developing a sound framework for quantifying the long-term financial performance of agroforestry-based biofuel value chains. The framework is applied to calculate profitability of pongamia cultivation and processing in Hassan district. The results show that pongamia cultivation has limited financial potential, and is only profitable in small-scale settings, in the middle to long term and for a subset of farmers. If biodiesel is envisaged as the end product, the value chain requires substantial fiscal and marketing support to be economically viable. For current prices, financial performance is much higher if the seed oil is marketed instead of processed to biodiesel. These findings are case-specific, while the developed framework opens the door to comprehensive investigation of the financial performance of other oilseed tree species and in other regions.The interdisciplinary framework allows concluding that the potential of agroforestry-based biofuel systems as sources of energy, income and employment is currently very limited. The program in South India succeeds as an agroforestry program but not as a biofuel program. Low profitability impedes local farmers to collect oilseeds, while processors have no financial incentive to convert oil to biodiesel. We find that similar challenges pertain to small-scale agroforestry systems as to jatropha-based plantation systems, although the former are a Low-Risk High-Diversity approach to build feedstock for the future. The wider validity of our findings should be further explored to determine in which niches alternative biofuel crops may still have potential.

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Dissertation
Adapting to a changing climate: potential role for intra- African agricultural trade?

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The African continent is expected to face a pronounced impact of climate change on its food production system. Food security in the region is threatened by climate change induced decline in food production. The impact of climate change varies spatially across the region, creating opportunities for some countries with an increased crop productivity while others may experience adverse effects from a decline in crop productivity. Intra-regional trade may be a possible mechanism for nations expecting a decline in crop productivity to cope with climate change induced impacts on their food production system. Increasing intra-regional trade may provide resilience of food supplies in the region without increasing its dependence on imports from other continents. This thesis investigates the potential of intra-African trade as a climate change adaptation mechanism to buffer negative impacts on crop productivity in Africa. A descriptive analysis of the historical trade flows between 2000 and 2014 for maize, millet, sorghum and wheat between and within ECOWAS and SADC was done to determine significant bilateral trade flows in the study region. Changes in crop yield by 2030 and 2050 were estimated for the climate change scenario RCP8.5 without CO2 fertilisation for the crops. A descriptive and econometric analysis of two gravity models were done to determine the effect of crop productivity and tariffs on intra-African trade. Lastly, predictions of trade flows were estimated and analysed for the expected yield changes to obtain results for the research questions. The results show that a significant difference in changes in yield is expected between ECOWAS and SADC for all four crops, as well as an expected maize yield increase in Burkina Faso and decrease in South Africa. In addition, we find that maize productivity in the exporting country significantly affects trade flows, whereas imposed tariffs do not have a significant effect on intra-African trade flows. The predicted changes in trade flows show a large significant decrease for certain scenarios of negative climate-induced changes in the exporter’s maize yield, when all other factors remain constant. Findings in this thesis indicate that inter-REC trade for maize, millet and sorghum can potentially mitigate climate-induced yield decreases in certain countries in ECOWAS and SADC. Intra-REC trade has the potential to act as an adaptation mechanism for millet within SADC and maize within ECOWAS. The results reveal that there is no potential for intra-African trade to buffer negative impacts on wheat productivity in Africa. In order to cope with a changing climate, ECOWAS and SADC will have to rely on several adaptation mechanisms. This study reveals that Intra-African trade may be a possible mechanism to buffer the climate-induced impacts for maize, millet and sorghum supply in the region.

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Dissertation
The Economic Impact of the EU Cadmium Regulations on the Ecuadorian Cocoa Industry

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On the first of January 2019, new European regulations concerning maximum Cadmium (Cd) concentrations in chocolate came into effect. It is to be expected that these regulations will impact the different stakeholders in the cocoa industry. Agronomic research in different regions of Ecuador demonstrated the occurrence of various high Cd concentration zones. Since Ecuador exports about 30% of its cocoa to the European Union, the new EU regulations might affect Ecuador’s cocoa industry. In light of this, a survey-instrument was developed to collect and study socio-economic data on Ecuadorian cocoa farmers. In order to assess the magnitude of the possible impact of the new regulations, the value of cultivating cocoa to the Ecuadorian farmer was estimated. This estimation was performed by including a contingent valuation section in the survey. The estimated value of cultivating cocoa to the Ecuadorian cocoa farmer was estimated at US$ 4,249 per hectare with two explanatory variables, namely gender and stated importance of cultivating cocoa being significant. This amount was then extrapolated to a nationwide value of the cultivation of cocoa in Ecuador of US$ 2,251,970,000. To put the calculated figure into perspective, this value corresponds to the value of 3.17 years of Ecuador’s cocoa exports. Based on our sample, 71 percent of this figure can be attributed to smallholder cocoa farmers. Finally, as to safeguard the reputation and quality of the Ecuadorian cocoa industry, a policy-making measure to compensate all farmers situated in high Cd zones in order to stop producing cocoa and switch to cultivating other crops was proposed. Our calculations suggest a one-time cost of US$ 1,013,386,500 combined with a yearly cocoa export loss of US$ 319,500,00 to implement this policy. This measure could possibly prevent a potential total economic loss up to US$ 2,251,970,000. The latter would occur in a worst-case scenario where all cocoa-importing countries stop importing cocoa beans that are produced in Ecuador.

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Dissertation
Technology adoption in smallholder cassava production: insights from a choice experiment in Tanzania

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Ever since the onset of the Green Revolution, large efforts have been made towards spreading new agricultural technologies to sub-Saharan Africa, in order to increase crop productivity also in this part of the world. To improve the efficiency of such extension services, choice experiments are sometimes used as a tool to estimate the stated preferences of farmers on certain technology traits. As the African Cassava Agronomy Initiative (ACAI) is setting up decision support tools which recommend farmers on staggered planting and fertilizer use, we analyze farmers’ preferences on six attributes related to these recommendations. The attributes are planting month, number of months leaving cassava in the field, fertilizer investment, average expected yield, yield variability, and the market type. As Tanzania is the first target country of ACAI together with Nigeria, the research is set in the rural areas of the Lake Zone, the Eastern Zone, and the Southern Zone of the Tanzanian mainland. The respondents are small-scale cassava farmers who are linked to an extension agent of ACAI or of one of its development partners. The ultimate goal of this paper is to ascertain whether certain recommendations should be adapted to the farmer due to heterogenous preferences among the target group, and, if necessary, how the adaptation should be done to increase adoption rates. A total of 333 farmers’ responses have been collected from our choice experiment, and were linked with survey data and insights from group discussions. The data from the choice experiment are analyzed with a mixed multinomial logit model, followed by a latent class model. The socio-economic characteristics of the different classes are then compared using a two-sided t-test. The results show that there is significant preference heterogeneity for all attributes except planting month. The agronomic practice of staggered planting and harvesting does not necessarily need a personalized approach, but it is predicted that the highest adoption rates will be among the wealthiest farmers. The preference for fertilizer investment for cassava has shown to be very heterogenous. The largest aversion for fertilizer use is among the farmers who have the smallest cassava fields and the least experience with fertilizers on cassava. Yet, among the two other classes with a higher preference for fertilizer use, is the class of the least wealthy farmers. Hence, it is expected that these farmers will have low fertilizer adoption rates too, unless credit is made available for them. Considering that the preferences for a guaranteed market are the largest among the same least wealthy class, we recommend policy makers and large cassava buyers to look into the possibility of combining contracts with credit access. To conclude, it is clear that a certain degree of personalization is necessary to maximize the impact of extension services in general, and of ACAI’s extension services in particular.

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Dissertation
Optimizing productivity of maize in the Northern Nigerian savanna : Influence of nutrient limitations and imbalances
Authors: --- --- --- ---
Year: 2019 Publisher: Leuven KU Leuven. Faculty of Bioscience Engineering

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Nigeria's annual maize (Zea mays L.) production has increased from 2.4 million metric tons in 1961 to about 10.4 million metric tons in 2013 which placed Nigeria as the 11th largest producer of maize in the world. However, yield levels have remained very low and far below the potential of the crop. Aside water, soil nutrient depletion and poor nutrient management have been reported to be one of the most important abiotic constraints contributing to a stagnant low yield of maize in Nigeria. Therefore, to optimize the productivity of maize in Nigeria, evaluation of site-specific nutrient-related constraints reducing yield and viable ways to counteract such constraints become imperative. A minimum of 90 on-farm nutrient omission trials (NOT) will be conducted in three states of Nigeria falling within the maize belt in the Nigerian Savanna ecological zone. The nutrients content in the soil (prior to the establishment of the NOT) and in the plant tissue will be analyzed. Viz-à-viz agronomic and yield data will also be taken. The data generated will be used for the determination of nutrient limitations and balances using Diagnosis and Recommendation Integrated System (DRIS) and Compositional Nutrient Diagnosis (CND). An algorithm for the determination of nutrient requirement to achieve an optimal yield will be evaluated using Quantitative Evaluation of the Fertility of Tropical Soils (QUEFTS). At the end, as a follow-up, demonstration of adapted fertilizer advices will be installed and evaluated by farmer groups and extension services.

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Dissertation
Can mothers' off-farm employment improve child welfare? - Evidence from rural Malawi and Tanzania

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Participation in off-farm employment has become an important livelihood strategy in Sub-Saharan Africa. Female off-farm employment has also significantly increased, but women are still facing economic disadvantages and limited economic opportunities. Economic diversification and a reduction of these persistent gender gaps in opportunities and participation rates are often addressed as possible mechanisms for poverty reduction and development. As child welfare is still lagging behind in Sub-Saharan Africa, female off-farm employment in particular has also been heralded as a possible mechanism for improving child welfare, given that women are the primary caregivers for children and might have stronger preferences for child welfare compared to men. It is hypothesized that female off-farm employment can affect child welfare through three different effects, a positive income effect, a negative substitution effect and a potentially positive empowerment effect. The outcome is also likely to be influenced by the specific household, employment and contextual characteristics. Therefore, this thesis assesses off-farm employment as possible mechanism for improving welfare in general and child welfare in particular. We use nationally representative, multi-topic panel data from rural Malawi and Tanzania, disaggregate off-farm employment by gender and type, and apply fixed effects estimations to analyse the causal effect on income, education and nutrition, using multiple indicators. The results confirm that off-farm employment is an important livelihood strategy and that female off-farm employment is non-negligible in rural Sub-Saharan Africa. In addition, the results suggest that off-farm employment in general in Malawi, and female off-farm employment in Tanzania, rather serve for income smoothing than income boosting. We find that the positive income effect is the most important channel through which off-farm employment influences education and nutrition in both countries. After controlling for income, female off-farm employment does not affect education and nutrition in Tanzania, implying that substitution and empowerment effects play a smaller role or cancel each other out. In Malawi, on the other hand, female ganyu labour reduces the share of children enrolled, whereas female self-employment increases it. Female wage employment and ganyu labour negatively affect nutrition. These results suggest an increased substitution effect and a reduced or missing empowerment effect for wage employment and ganyu labour compared to self-employment. Based on the results, we can conclude that promoting off-farm employment could be a good strategy to increase household and child welfare. However, promoting qualitative, high-return off-farm activities and guaranteeing access for the asset-poor and women, while addressing the work-childcare conflicts faced by working mothers, are important requirements for these policies to turn off-farm employment’s welfare-increasing potential to reality.

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Dissertation
Site-specific nutrient management advice and agricultural intensification in maize-based systems in Nigeria

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Maize is an important staple food and feed crop widely grown in Sub-Saharan Africa (SSA). However, the yield of maize is often below the best yield that can be obtained on-farm with current technology. Specifically in Nigeria, the average yield of maize was 1.8 tons/ha in 2014 compared to the world average of 5.6 tons/ha which indicates a maize yield gap of 3.8 tons/ha. Thus, there is the need for intensification of maize production through the use of innovative approaches to close the maize yield gap in Nigeria and SSA at large. To close the attainable yield gap of the smallholder maize-based farmers' using innovative approaches geared towards increasing their maize productivity and income, improving their food security and addressing the challenge of rural poverty, a Bill and Melinda Gates Foundation (BMGF) supported project known as Taking Maize Agronomy to Scale in Africa (TAMASA) is developing decision support tools for nutrient and crop management amongst other products and services of the project in Nigeria, Ethiopia and Tanzania. One of the decision support tools of particular interest to this doctoral research project is known as Nutrient Expert (NE) decision support tool. The tool is meant for use by extension service providers in generating fertilizer recommendations for specific fields or growing environments of maize-based farmers' which will help increase their maize yield and produce positive welfare benefits. Beyond the geospatial soil and agronomic research inputs in the tool development, a socioeconomic research is necessary to accompany the development, evaluation and dissemination process of the tool. This doctoral research includes an ex-ante and an ex-post components and focuses on both farmers'(ultimate beneficiaries of the tools) and extension agents' (target users of the tools) in order to effectively bridge the knowledge gap necessary for the successful uptake and continuous utilization of NE decision support tools. The ex-ante component seeks to obtain empirical information on preferences and behavioral responses (choice behavior) of farmers' and extension agents' to NE decision support tools through implementing choice experiment for farmers' and extension agents'. The ex-post component aims to empirically establish the potential of the tools in enhancing fertilizer use, yield and income of maize farmers' through implementing a randomized controlled trial.

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