Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia

Shewaye Abera; Abebaw Assaye

doi:doi:10.11648/j.ijae.20210603.13

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Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia

Shewaye Abera, Abebaw Assaye

Published in International Journal of Agricultural Economics (Volume 6, Issue 3)

Received: 9 April 2021 Accepted: 7 June 2021 Published: 16 June 2021

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Abstract

Cultivation of rice in Ethiopia is a recent phenomenon and the crop provides advantages to rice farmers in regarding productivity basis compared to other cereal crops and contribute a lot towards ensuring food security in the country. With the advantage related to the higher productivity, the ever-increasing of domestic demand as a result of urbanization and population growth, rice production under smallholder farmers is expanding very fast. The study was designed to determine the cost of production and profitability of rice under smallholder farmers in the rain fed upland production ecosystem. Descriptive statistics and enterprise budget were used to analyze data collected from selected farmers. Descriptive analysis result reveals labor cost was the main cost item in rice production which took about 74% of the total variable cost, of which weeding cost took about 37%. The enterprise budget analysis reveals sampled farmers obtained gross margin of ETB 12,084.46 per hectare from rain fed upland rice production with benefit cost ratio of 1.44 and break even price and yield of 6.45 ETB per kg and 2157 kilogram per hectare, respectively and the gross margin was more sensitive for price and yield fluctuations. Thus, upland rice production is a profitable enterprise. Moreover, in order to make the enterprise more attractive, it is important to promote productivity-improving and labor-saving modern technologies and strengthen the market information delivery system and collective action by farmers.

Published in	International Journal of Agricultural Economics (Volume 6, Issue 3)
DOI	10.11648/j.ijae.20210603.13
Page(s)	111-115
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Upland Rice, Smallholder Farmer, Gross Margin Analysis, Sensitivity and Break even Analysis

References

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[5]	Addis D, Alemu D, Assaye A, Tadesse T, Tesfaye A, Thompson J, (2018). A Historical Analysis of Rice Commercialization in Ethiopia: The Case of the Fogera Plain, Agricultural Policy Research in Africa (APRA). Working Paper 18, Future Agricultures Consortium.
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[7]	Kay, R. D., (1986). Farm Management, Planning, Control and Implementation. Second Edition. McGraw-Hill, inc.
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[9]	Nikolaos T, Sophocles P, Michael Z, Cristopher Z., (2014). Break Even Analysis. 1st ed.bookboon.com.
[10]	Federal Democratic Republic of Ethiopia Central Statistical Agency (2016) Agricultural Sample Survey Report on Area and Production of Major Crops Private Peasant Holdings, Meher Season, Volume I.
[11]	Bwala M. A. and John A. U., (2018). Profitability analysis of paddy production: A case of agricultural zone 1, Niger State Nigeria. J Bangladesh Agril Univ. 16 (1): 88–92,
[12]	Shewaye Abera, Adam Bekele, Abebaw Assaye, Adane Melak, (2019). International Journal of Research Studies in Agricultural Sciences. 5 (3): 30-35.
[13]	Ohen S. B. and Ajah E. A., (2015). Cost and return analysis in small scale rice production in Cross River State, Nigeria. International Research Journal of Agricultural Science and Soil Science. 5 (1): 22-27.
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[15]	Uche Nkechi, Donatus, Jane and N. Uchenwachi, Margaret, (2020). Assessment of the Profitability of Rice Production in Afikpo North L. G. A. Journal of Agriculture and Ecology Research International. 21 (7): 21-29.

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APA Style

Shewaye Abera, Abebaw Assaye. (2021). Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia. International Journal of Agricultural Economics, 6(3), 111-115. https://doi.org/10.11648/j.ijae.20210603.13

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ACS Style

Shewaye Abera; Abebaw Assaye. Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia. Int. J. Agric. Econ. 2021, 6(3), 111-115. doi: 10.11648/j.ijae.20210603.13

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AMA Style

Shewaye Abera, Abebaw Assaye. Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia. Int J Agric Econ. 2021;6(3):111-115. doi: 10.11648/j.ijae.20210603.13

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@article{10.11648/j.ijae.20210603.13,
  author = {Shewaye Abera and Abebaw Assaye},
  title = {Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia},
  journal = {International Journal of Agricultural Economics},
  volume = {6},
  number = {3},
  pages = {111-115},
  doi = {10.11648/j.ijae.20210603.13},
  url = {https://doi.org/10.11648/j.ijae.20210603.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20210603.13},
  abstract = {Cultivation of rice in Ethiopia is a recent phenomenon and the crop provides advantages to rice farmers in regarding productivity basis compared to other cereal crops and contribute a lot towards ensuring food security in the country. With the advantage related to the higher productivity, the ever-increasing of domestic demand as a result of urbanization and population growth, rice production under smallholder farmers is expanding very fast. The study was designed to determine the cost of production and profitability of rice under smallholder farmers in the rain fed upland production ecosystem. Descriptive statistics and enterprise budget were used to analyze data collected from selected farmers. Descriptive analysis result reveals labor cost was the main cost item in rice production which took about 74% of the total variable cost, of which weeding cost took about 37%. The enterprise budget analysis reveals sampled farmers obtained gross margin of ETB 12,084.46 per hectare from rain fed upland rice production with benefit cost ratio of 1.44 and break even price and yield of 6.45 ETB per kg and 2157 kilogram per hectare, respectively and the gross margin was more sensitive for price and yield fluctuations. Thus, upland rice production is a profitable enterprise. Moreover, in order to make the enterprise more attractive, it is important to promote productivity-improving and labor-saving modern technologies and strengthen the market information delivery system and collective action by farmers.},
 year = {2021}
}

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TY  - JOUR
T1  - Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia
AU  - Shewaye Abera
AU  - Abebaw Assaye
Y1  - 2021/06/16
PY  - 2021
N1  - https://doi.org/10.11648/j.ijae.20210603.13
DO  - 10.11648/j.ijae.20210603.13
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 111
EP  - 115
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20210603.13
AB  - Cultivation of rice in Ethiopia is a recent phenomenon and the crop provides advantages to rice farmers in regarding productivity basis compared to other cereal crops and contribute a lot towards ensuring food security in the country. With the advantage related to the higher productivity, the ever-increasing of domestic demand as a result of urbanization and population growth, rice production under smallholder farmers is expanding very fast. The study was designed to determine the cost of production and profitability of rice under smallholder farmers in the rain fed upland production ecosystem. Descriptive statistics and enterprise budget were used to analyze data collected from selected farmers. Descriptive analysis result reveals labor cost was the main cost item in rice production which took about 74% of the total variable cost, of which weeding cost took about 37%. The enterprise budget analysis reveals sampled farmers obtained gross margin of ETB 12,084.46 per hectare from rain fed upland rice production with benefit cost ratio of 1.44 and break even price and yield of 6.45 ETB per kg and 2157 kilogram per hectare, respectively and the gross margin was more sensitive for price and yield fluctuations. Thus, upland rice production is a profitable enterprise. Moreover, in order to make the enterprise more attractive, it is important to promote productivity-improving and labor-saving modern technologies and strengthen the market information delivery system and collective action by farmers.
VL  - 6
IS  - 3
ER  -

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Author Information

Shewaye Abera

Ethiopian Institute of Agricultural Research, Fogera National Rice Research and Training Center, Woreta, Ethiopia
Abebaw Assaye

Ethiopian Institute of Agricultural Research, Fogera National Rice Research and Training Center, Woreta, Ethiopia

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APA Style

Shewaye Abera, Abebaw Assaye. (2021). Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia. International Journal of Agricultural Economics, 6(3), 111-115. https://doi.org/10.11648/j.ijae.20210603.13

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ACS Style

Shewaye Abera; Abebaw Assaye. Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia. Int. J. Agric. Econ. 2021, 6(3), 111-115. doi: 10.11648/j.ijae.20210603.13

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AMA Style

Shewaye Abera, Abebaw Assaye. Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia. Int J Agric Econ. 2021;6(3):111-115. doi: 10.11648/j.ijae.20210603.13

Copy | Download

@article{10.11648/j.ijae.20210603.13,
  author = {Shewaye Abera and Abebaw Assaye},
  title = {Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia},
  journal = {International Journal of Agricultural Economics},
  volume = {6},
  number = {3},
  pages = {111-115},
  doi = {10.11648/j.ijae.20210603.13},
  url = {https://doi.org/10.11648/j.ijae.20210603.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20210603.13},
  abstract = {Cultivation of rice in Ethiopia is a recent phenomenon and the crop provides advantages to rice farmers in regarding productivity basis compared to other cereal crops and contribute a lot towards ensuring food security in the country. With the advantage related to the higher productivity, the ever-increasing of domestic demand as a result of urbanization and population growth, rice production under smallholder farmers is expanding very fast. The study was designed to determine the cost of production and profitability of rice under smallholder farmers in the rain fed upland production ecosystem. Descriptive statistics and enterprise budget were used to analyze data collected from selected farmers. Descriptive analysis result reveals labor cost was the main cost item in rice production which took about 74% of the total variable cost, of which weeding cost took about 37%. The enterprise budget analysis reveals sampled farmers obtained gross margin of ETB 12,084.46 per hectare from rain fed upland rice production with benefit cost ratio of 1.44 and break even price and yield of 6.45 ETB per kg and 2157 kilogram per hectare, respectively and the gross margin was more sensitive for price and yield fluctuations. Thus, upland rice production is a profitable enterprise. Moreover, in order to make the enterprise more attractive, it is important to promote productivity-improving and labor-saving modern technologies and strengthen the market information delivery system and collective action by farmers.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Profitability Analysis of Rain Fed Upland Rice Production Under Smallholder Farmers in Libokemkem District, North Western Ethiopia
AU  - Shewaye Abera
AU  - Abebaw Assaye
Y1  - 2021/06/16
PY  - 2021
N1  - https://doi.org/10.11648/j.ijae.20210603.13
DO  - 10.11648/j.ijae.20210603.13
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 111
EP  - 115
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20210603.13
AB  - Cultivation of rice in Ethiopia is a recent phenomenon and the crop provides advantages to rice farmers in regarding productivity basis compared to other cereal crops and contribute a lot towards ensuring food security in the country. With the advantage related to the higher productivity, the ever-increasing of domestic demand as a result of urbanization and population growth, rice production under smallholder farmers is expanding very fast. The study was designed to determine the cost of production and profitability of rice under smallholder farmers in the rain fed upland production ecosystem. Descriptive statistics and enterprise budget were used to analyze data collected from selected farmers. Descriptive analysis result reveals labor cost was the main cost item in rice production which took about 74% of the total variable cost, of which weeding cost took about 37%. The enterprise budget analysis reveals sampled farmers obtained gross margin of ETB 12,084.46 per hectare from rain fed upland rice production with benefit cost ratio of 1.44 and break even price and yield of 6.45 ETB per kg and 2157 kilogram per hectare, respectively and the gross margin was more sensitive for price and yield fluctuations. Thus, upland rice production is a profitable enterprise. Moreover, in order to make the enterprise more attractive, it is important to promote productivity-improving and labor-saving modern technologies and strengthen the market information delivery system and collective action by farmers.
VL  - 6
IS  - 3
ER  -

Copy | Download