Cities, value chains, and dairy production in Ethiopia

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cg.authorship.typesCGIAR single centreen
cg.contributor.crpPolicies, Institutions, and Markets
cg.contributor.donorUnited States Agency for International Developmenten
cg.contributor.donorDepartment for International Development, United Kingdomen
cg.contributor.donorEuropean Unionen
cg.contributor.donorInternational Livestock Research Instituteen
cg.contributor.donorUniversity of Floridaen
cg.coverage.countryEthiopia
cg.coverage.iso3166-alpha2ET
cg.coverage.regionEastern Africa
cg.coverage.regionAfrica
cg.coverage.regionSub-Saharan Africa
cg.creator.identifierBart Minten: 0000-0002-2183-1845
cg.identifier.doihttps://doi.org/10.2499/p15738coll2.133437en
cg.identifier.projectIFPRI - Development Strategy and Governance Division
cg.identifier.projectIFPRI - Ethiopia Strategy Support Program
cg.identifier.publicationRankNot ranked
cg.number137en
cg.placeWashington, DCen
cg.placeAddis Ababa, Ethiopiaen
cg.reviewStatusInternal Reviewen
dc.contributor.authorVandercasteelen, Joachimen
dc.contributor.authorMinten, Barten
dc.contributor.authorTamru, Seneshawen
dc.date.accessioned2024-06-21T09:07:36Zen
dc.date.available2024-06-21T09:07:36Zen
dc.identifier.urihttps://hdl.handle.net/10568/146578
dc.titleCities, value chains, and dairy production in Ethiopiaen
dcterms.abstractThis paper explores the spatial heterogeneity in dairy production in the highland production area around the capital of Ethiopia, Addis Ababa. We look at how urban proximity – defined as the travel time from the farm to the central market of Addis Ababa – affects the production decisions of Ethiopian dairy farmers. We sampled 870 households from the major rural production zones around Addis Ababa, where villages were stratified according to their distance to Addis Ababa. Using an instrumental variable approach, we find evidence of strong spatial heterogeneity in dairy milk productivity in Ethiopia. With each additional hour of travel time, the milk productivity per cow is reduced by almost 1 liter per day, a reduction by 26 percent on average. This spatial heterogeneity in milk productivity reflects a pronounced spatial variation in dairy production decisions (producing liquid milk or processed dairy products), the application of modern inputs, and marketing. When trying to disentangle the mechanisms through which urban proximity affects dairy productivity, we show that the effect of travel time mainly runs through farmers’ inclusion into ‘modern’ value chains and more specifically through their access to commercial milk buyers. This finding holds when we control for prices, indicating that access to commercial value chains are an important determinant of dairy productivity. However, as only a limited number of farmers now have access to such value chains in these settings, measures to make dairy value chains more inclusive to remote farmers can have important economic development benefits for them.en
dcterms.accessRightsOpen Access
dcterms.bibliographicCitationVandercasteelen, Joachim; Minten, Bart; and Tamru, Seneshaw. 2019. Cities, value chains, and dairy production in Ethiopia. ESSP Working Paper 137. Washington, DC; Addis Ababa, Ethiopia: International Food Policy Research Institute (IFPRI); Federal Democratic Republic of Ethiopia Policy Studies Institute. https://hdl.handle.net/10568/146578en
dcterms.extent39 pagesen
dcterms.isPartOfESSP Working Paperen
dcterms.issued2019-10-11
dcterms.languageen
dcterms.licenseCC-BY-4.0
dcterms.publisherInternational Food Policy Research Instituteen
dcterms.publisherFederal Democratic Republic of Ethiopia Policy Studies Instituteen
dcterms.relationhttps://doi.org/10.1111/agec.12641en
dcterms.relationhttps://doi.org/10.2499/p15738coll2.134764en
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll2/id/133437en
dcterms.subjectmilk productionen
dcterms.subjectsupply chainsen
dcterms.subjectmilk productsen
dcterms.subjectrural-urban food supply chainsen
dcterms.subjecturban areasen
dcterms.subjecturbanizationen
dcterms.subjecttownsen
dcterms.subjectfood pricesen
dcterms.subjectdairy industryen
dcterms.typeWorking Paper

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