Arbeitspapier

Sugarcane outgrowers in Ethiopia: 'Forced' to remain poor?

Contract farming is often seen as a panacea to many of the challenges faced by agricultural production in developing countries. Given the large heterogeneity of contract farming arrangements, it is debatable whether all kinds of contract farming arrangements offer benefits to participating smallholders. We apply matching methods to analyze the effects of a public sugarcane outgrower scheme in Ethiopia. Participation in the outgrower scheme significantly reduces the income and asset stocks of outgrowers who contributed irrigated land to the outgrower scheme, while the effect was insignificant for outgrowers who contributed rain-fed land. We provide several explanations and discuss policy implications.

Language
Englisch

Bibliographic citation
Series: IFRO Working Paper ; No. 2015/06

Classification
Wirtschaft
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Agricultural Markets and Marketing; Cooperatives; Agribusiness
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
General Welfare; Well-Being
Subject
Productivity
Outgrower scheme
contract farming
sugarcane
propensity score
genetic matching
Ethiopia

Event
Geistige Schöpfung
(who)
Wendimu, Mengistu Assefa
Henningsen, Arne
Gibbon, Peter
Event
Veröffentlichung
(who)
University of Copenhagen, Department of Food and Resource Economics (IFRO)
(where)
Copenhagen
(when)
2015

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Wendimu, Mengistu Assefa
  • Henningsen, Arne
  • Gibbon, Peter
  • University of Copenhagen, Department of Food and Resource Economics (IFRO)

Time of origin

  • 2015

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