Ethiopia is one of the east African countries which produce and exports various spices to other countries. Black cumin (Nigella sativa L.) is an important stiff annual flowering plant which mainly grows by producers for its seeds. An increasing demand of black cumin seed and oil in local, national and international market for medicinal, consumption and commercial purpose makes the best alternative crop for small holder farmers in Ethiopia. In spite of its importance, not much has been done to improve its production and productivity in Ethiopia. Therefore, this research was designed to examining efficiency variations and factors influencing technical inefficiency levels of producers on black cumin production in northwest Ethiopia. Primary data were collected using a semi-structured questionnaire administered on 188 black cumin producers selected using systematic random sampling technique. Moreover, various data analysis methods such as descriptive statistics and stochastic frontier model were used for analyzing the data. The empirical result obtained by applying maximum likelihood estimate of stochastic frontier model revealed that seed (p < 0.01) labor (p < 0.05), chemical (p < 0.01) and land (p < 0.05) were significant input variables in determining black cumin production. The mean technical efficiency level of black cumin producer was generally low, about 53.1%. The mean value of actual yield, potential yield and yield gap was 3.131, 5.832 and 2.701 quintals, respectively. Moreover, the result of stochastic frontier model together with the inefficiency parameters revealed that market price of black cumin (p < 0.01) and access of extension service (p < 0.1) were significant variables and positively influenced the efficiency levels of black cumin producers. Whereas age of producers (p < 0.05) and distance to farm plot (p < 0.01) negatively influenced the technical efficiency levels of black cumin producers. Therefore, the study recommends that adoption of latest agricultural technologies; development of institutions, agricultural extension services and infrastructure are advisable to improve the efficiency and commercial value of black cumin production.
IntroductionMilk production in Ethiopia is done largely by the smallholder farmers in the high lands and in low land areas of the country. However, the Ethiopian dairy production and market systems face severe constraints like poor genetics, insufficient access to proper animal feed and poor management practices all contribute to the low productivity levels. Similarly, dairy producers and downstream actors in the value chains face many challenges in getting milk to market. Hence this study analyzes dairy products value chain. MethodsValue chain analysis framework and financial analysis were used. Result and conclusionThe dairy value chain is complex involving multiple actors and their interaction. The major direct actors include input suppliers, small holder farmers, village collectors, cooperatives, semi processors, hotel and cafés and consumers. Besides indirect actors such as supportive and regulatory service providers are also involved. Though all actors have positive profit margin, the largest share goes to hotel and cafés. The financial analysis along the entire value chain shows that Producing and marketing of dairy products is profitable and creates higher value added. Concerned body should improve access to services and collective actions to enhance local value additions and Smallholder milk producers must be organized into dairy cooperative groups and subsequently into dairy unions.
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