factors affecting adoption of dairy technologies and their impact on farm household income and ...

119 Pages·2017·1.92 MB·English

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FACTORS AFFECTING ADOPTION OF DAIRY TECHNOLOGIES AND THEIR
IMPACT ON FARM HOUSEHOLD INCOME AND ASSET HOLDINGS:
THE CASE OF TEHULEDERE DISTRICT, SOUTH WOLLO ZONE,
AMHARA REGION, ETHIOPIA

M.Sc. THESIS

TEGEGNE FENTAW SHIBESHI

HAWASSA UNIVERSITY
COLLAGE OF AGRICULTURE

HAWASSA, ETHIOPIA
MARCH, 2017
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FACTORS AFFECTING ADOPTION OF DAIRYTECHNOLOGIES AND THEIR
IMPACT ON FARM HOUSEHOLD INCOME AND ASSET HOLDINGS:
THE CASE OF TEHULEDERE DISTRICT, SOUTH WOLLO ZONE,
AMHARA REGION, ETHIOPIA

TEGEGNE FENTAW SHIBESHI

ADVISOR: TEWODROS TEFERA (PhD-Associate Prof.)
CO-ADVISOR: SOLOMON GIZAW (PhD)

A THESIS SUBMITTED TO THE SCHOOL OF ENVIRONMENT, GENDER AND
DEVELOPMENT STUDIES

HAWASSA UNIVERSITY
COLLAGE OF AGRICULTURE

IN PARTIAL FULFILLMENT OF THE REQUIRMENTS FOR THE DEGREE OF
MASTERS OF SCIENCE IN RURAL DEVELOPMENT

MARCH, 2017
HAWASSA, ETHIOPIA
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DEDICATION

I dedicated this thesis manuscript in loving memory to my Families.

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STATEMENT OF AUTHOR
First, I declare that this thesis is my bona fide work and that all sources of materials used for this
thesis have been duly acknowledged. This thesis is submitted in partial fulfillment of the M.Sc.
degree at Hawassa University and to be made available at the University’s Library under the
rules of the Library. I solemnly declare that this thesis has not been submitted to any other
institutions anywhere for the award of any academic degree, diploma, or certificate.
Brief quotations from this thesis are allowable without special permission, provided that accurate
acknowledgement of source is made. Requests for permission for extended quotation from or
reproduction of this manuscript in whole or in part may be granted by Dean of the School of
Graduate Studies when in his or her judgment the proposed use of the material is in the interests
of scholarship. In all other instances, however, permission must be obtained from the author.

Name: Tegegne Fentaw Shibeshi Signature: ……………………
Place: Hawassa University, Collage of Agriculture, Hawassa
Date of Submission: March, 2017

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ACKNOWLEDGEMENTS
First of all; many thanks is directed to our Lord, the Almighty God, the father of everything and
the prince of peace and love for allowing me to make my dream come true after a very difficult
journey and a burdensome effort. Beyond his care in all the micro seconds in life, he endows us
with wisdom to uncover all the necessary mystery of nature.
Secondly, I express my deepest gratitude to my major advisor Dr. Tewodros Tefera for a
continuous and profound commitment and encouragements that I have got throughout my study
period. I would not have been able to complete this routine study to its standard without his
guidance. I could say that no words can express his assistance and supervision throughout my
thesis work. I am also acknowledging to my co-advisor Dr. Solomon Gizaw (from ILRI) for his
immeasurable advice, comments and suggestions throughout the whole work of this thesis.
I am very grateful to the Federal and Regional Ministry of Agriculture in general and ILRI
(LIVES) project in particular for allowing me to join M.Sc. study in Hawassa University. Very
exceptional thanks goes to Dr. Teshome Wale, Dr. Yigzaw Desalegn, Dr. Zeleke Mekuria,
Dr.Mamusha w/Giorgis, Mr. Debebe Admasu, Mr. Ali Tegegne, Mr. Seid Hassen, Mr. Tesfaye
Mekonnone and Mr. Mesfin Tefera, Mr. Tamrat Abate for their direct or indirect support at the
early stage of the study and the research work. Moreover, thanks for Tehuledere office of
agriculture for their assistance at high time when every facility is needed.
I am very glad to acknowledge the sample households for their willingness and patience in
responding to my questionnaire at the expense of their invaluable time. I also extend my grateful
thanks to those enumerators for their effort devoted in collecting the data from the respondents
with full willingness.
Last but not least, I would like to express my heart-felt thanks, gratitude and appreciation to my
beloved once, Mr. Dessalegn Birkneh, Mr. Endris Mohamed and my sister Banchamlak Hailu for
their generous assistance, moral support and helpful encouragement during my graduate study
with all their kindness and affection.

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LIST OF ABBREVATIONS AND ACRONYMS

ATT Average Treatment Effect on Treated
AI Adoption Index
AIS Artificial Insemination Services
ANRS Amhara National Regional State
BOA Bureau of Agriculture
CSA Central Statistical Authority
DAs Development Agents
DTs Dairy Technologies
ESAP Ethiopian Society of Animal Production
ETB Ethiopian Birr
FGD Focus Group Discussion
GDP Gross Domestic Product
ha hectares
IGAD Inter Governmental Authority on Development
ILRI International Livestock Research Institute
KAs Kebele Administrations
KII Key Informants Interview
Km kilometer
LPM Limited Probability Model
LIVES Livestock Irrigation Value chain for Ethiopian Smallholders
MOA Ministry of Agriculture
NGO Non Governmental Organization
TASHEVAFT Total Asset Holding Estimated Value After Technology
TLU Tropical Livestock Unit
TOTAFICM Total Annual Farm Income
PADETES Participatory Agricultural Demonstration and Training Extension System
PSM Propensity Score Matching
T&V Training and Visit
VIF Variance Inflation Factors
TWOA Tehuledere Woreda Office of Agriculture
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TABLE OF CONTENTS
DEDICATION .......................................................................................................................................... I
STATEMENT OF AUTHOR ................................................................................................................II
ACKNOWLEDGEMENTS .................................................................................................................. III
LIST OF ABBREVATIONS AND ACRONYMS .............................................................................. IV
LIST OF TABLES ................................................................................................................................ IX
LIST OF FIGURES ................................................................................................................................ X
LIST OF TABLES IN THE APPENDIX ............................................................................................ XI
ABSTRACT .......................................................................................................................................... XII
1. INTRODUCTION ............................................................................................................................ 1
1.1 Back ground of the study ................................................................................................................... 1
1.2. Statement of the problem ................................................................................................................. 2
1.3 Objectives of the Study ...................................................................................................................... 4
1.3.1 General objectives ......................................................................................................................... 4
1.3.2 Specific objectives ......................................................................................................................... 4
1.4 Research questions ............................................................................................................................. 4
1.5 Significance of the study .................................................................................................................... 4
1.6 Scope and limitation of the study ...................................................................................................... 5
1.7 Organization of the paper ................................................................................................................. 5
2. LITRATURE REVIEW ................................................................................................................... 6
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2.1 Over view of dairy production in Ethiopia and worldwide ........................................................... 6
2.2 Dairy production systems in Ethiopia .............................................................................................. 6
2.2.1 Rural highland smallholder dairy farming .................................................................................... 7
2.2.2 Urban and peri-urban small scale dairy farming ........................................................................... 7
2.2.3 Large scale dairy farming .............................................................................................................. 8
2.3 Feed resources and nutrient requirement of dairy cattle ............................................................... 8
2.3.1 Feed resources ............................................................................................................................... 8
2.3.2 Nutrition requirement of dairy cattle ............................................................................................. 8
2.4 The prospects of dairy farming in Ethiopia ..................................................................................... 9
2.5 Definition of Adoption related concepts ........................................................................................... 9
2.5.1 Theoretical Perspectives of Adoption ......................................................................................... 11
2.5.2 Innovation Decision Model ......................................................................................................... 12
2.6. Empirical study of adoption ........................................................................................................... 13
2.7 Definition of livelihood assets related concept ............................................................................... 14
2.8 Impact evaluation ............................................................................................................................. 16
2.9 Impact of dairy on household assets ............................................................................................... 17
2.9.1 Impact on financial assets of households .................................................................................... 17
2.9.2 Impact on physical assets of households ..................................................................................... 17
2.9.3 Impact on human assets of households ....................................................................................... 18
2.10 Conceptual Framework of the Study ........................................................................................... 18
3. RESEARCH METHODOLOGY .................................................................................................. 20
3.1 Description of the study area .......................................................................................................... 20
3.2 Research design ................................................................................................................................ 24
3.3 Sampling techniques ........................................................................................................................ 24
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3.4 Data sources, types and collection methods ................................................................................... 25
3.5 Methods of Data Analysis ................................................................................................................ 26
3.6 Definition of variables and working hypothesis ............................................................................ 36
3.6.1 Dependant Variable ..................................................................................................................... 36
3.6.2 Outcome Variables ...................................................................................................................... 37
3.6.3 Independent (Explanatory) Variables .......................................................................................... 38
3.6.4 Definition of independent variables and their hypothesized relations with adoption ................. 38
4. RESULT AND DISCUSSION ....................................................................................................... 42
4.1 Result of Descriptive and Inferential Statistics ............................................................................. 44
4.1.1 Age of the respondent (AGE) ...................................................................................................... 44
4.1.2 Sex of the respondent (SEX) ....................................................................................................... 45
4.1.3 Educational level of the households (EDUCLEV) ...................................................................... 46
4.1.4 Farm land size holding of respondents (FRMLSZ) ..................................................................... 47
4.1.5 Labor availability (LABRAV) .................................................................................................... 47
4.1.6 Market distance of respondents household (MRKDIS) .............................................................. 48
4.1.7 Respondents Contact with the extension services (EXTCON) ................................................... 48
4.1.8 Livestock ownership of respondent household (TLU) ................................................................ 50
4.1.9 Participation in co-operative (FPACOO) .................................................................................... 51
4.1.10 Access to technology/Input availability (INPUACC) ............................................................... 52
4.2 Current level of adoption of dairy technology components ......................................................... 53
4.2.1 Adoption of breed component ..................................................................................................... 54
4.2.2. Adoption of feeding technology component .............................................................................. 55
4.2.3. Adoption of recommended housing technology component ...................................................... 56
4.2.4 Adoption of regular vaccination technological components ....................................................... 57
4.2.5 Adoption of AIS technological components ............................................................................... 58
4.2.6 Current Productivity of local and crossbred cows across sampled households .......................... 59
4.3. Result of Tobit Econometric Model............................................................................................... 60
4.3.1 Marginal effects of explanatory variables on improved dairy technology adoption ................... 63
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4.4 Result of Econometric analysis of PSM ......................................................................................... 65
4.4.1 Estimation of propensity scores................................................................................................... 65
4.4.2 Matching of technology participant and non-participant households ......................................... 70
4.4.3 Testing of balance of propensity score and covariates ................................................................ 74
4.4.4 Impact of improved dairy technology on income and asset holdings ......................................... 76
4.4.5. Sensitivity analysis ..................................................................................................................... 78
4.5 Constraints/factors affecting adoption of dairy technologies....................................................... 78
5. SUMMARY, CONCLUSSION AND RECOMMENDATIONS ................................................... 82
5.1 Summary and conclusion ................................................................................................................ 82
5.2 Recommendations ............................................................................................................................ 84
6. REFERENCES ................................................................................................................................... 87
7. APPENDICIES ................................................................................................................................... 93

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