Skip to main navigation menu Skip to main content Skip to site footer
##common.pageHeaderLogo.altText##

Scientific monographs

Livelihood Diversification Strategies by Farm Households in Southern Ethiopia: monograph

DOI
https://doi.org/10.36074/ldsbfhise-monograph.2022
Published
2022-10-18

Abstract

The Livelihood Diversification Strategies are one of the sources of income-generating activities in Rural Development. The farmers should not solely depend on agriculture but must be encouraged to engage in Off-farm and Non-farm activities, which are allied agricultural activities. The thorough research was conducted in Boloso Sore District in Southern Ethiopia.  The major objectives of this study were to identify the existing livelihood strategies adopted by rural households and assess factors that determine households’  decision to choose alternative livelihood strategies. For this study, primary data were collected from randomly selected 149 households. Due to severe land scarcity, high population pressure, and recurrent drought, farm households in the study area widely engage in and pursue diverse, productive economic activities as livelihood strategies. The carrying capacity of agriculture to attain food and livelihood security is extremely declining from time to time. Diversifying livelihood strategies at the current time has become a common phenomenon in the study area.  Descriptive statistics were applied to characterize the sample households’ socioeconomic, demographic and institutional factors. The multinomial logistic regression model was applied to identify the factors determining the choices of rural household livelihood strategies on 15 explanatory variables. The rural households in the study area pursued different livelihood strategies such as on-farm alone, 63 (42.3%); on-farm + non-farm, 55 (36.9%); on-farm+ off-farm, 20 (13.4%); and on-farm+ non-farm + off-farm livelihood strategies, 11(7.4%). On-farm livelihood played a leading role by contributing 72% of the total income of the households, whereas Non-farm and Off-farm activities contributed 20% and 8% of the household incomes, respectively. A total of 15 explanatory variables were included in the empirical model, of which 11 were significant. These variables include age, livestock ownership, market proximity, training, total household income, credit use, dependency ratio, Landholding, number of oxen owned, Sex, and cooperative membership, which determines the significant choice of livelihood strategies. This study suggests that development interventions, policies, and supportive services should be designed to suit different groups of farmers' felt needs and circumstances.

Institutional email ID drsenapathy@wsu.edu.et 

⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯

TABLE OF CONTENTS:

PREFACE
FOREWORD
ABOUT THE AUTHORS
ACKNOWLEDGEMENTS
LIST OF ABBREVIATIONS
LIST OF TABLES
LIST OF FIGURES
LIST OF TABLES IN APPENDICES
ABSTRACT

1. INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
   1.3.1 General Objective
   1.3.2 Specific Objectives
1.4 Research Questions
1.5 Significance of the Study
1.6 Scope and Limitations of the Study
1.7 Organization of the Thesis

2. REVIEW OF PERTINENT LITERATURE
2.1 Origin of the Concepts of Livelihoods
   2.1.1 Sustainable Livelihood Framework
      2.1.1.1 Vulnerability Context
      2.1.1.2 Livelihood Assets
      2.1.2.3 Policy and Institution
      2.1.1.4 Livelihood Strategies
      2.1.1.5 Livelihood Outcomes
   2.1.2 Types of Livelihood Strategies
   2.1.3 Livelihood Approaches to rural poverty
2.2 Empirical Studies on the Determinants of Livelihood Strategies
2.3 Conceptual Framework

3. METHODOLOGY
3.1 Description of the Study Area
3.2 Sampling Procedure
   3.2.1 Sample Size Determination
3.3 Methods of Data Collection
3.4 Data Analysis Techniques
   3.4.1 Factors affecting livelihood strategies of rural Households
      3.4.1.1 Specification of Multinomial Logit Model
   3.4.2 Definitions of Variables and Research Hypothesis
      3.4.2.1 Dependent Variables
      3.4.2.2 Hypothesis of Independent variables

4. DATA ANALYSIS AND RESULTS
4.1 Livelihood Diversification Strategies
4.2 Descriptive and Inferential Analysis
   4.2.1 Demographic Factors
      4.2.1.1 Age Composition
      4.2.1.2 Sex Composition
      4.2.1.3 Dependency Ratio
      4.2.1.4 Family Size
   4.2.2 Institutional Factor
      4.2.2.1 Proximity to Market
      4.2.2.2 Training
      4.2.2.3 Contact with Agricultural Extension Agents
   4.2.3 Socio Economic Factor
      4.2.3.1 Cultivated Land Size in Hectares
      4.2.3.2 Use of Chemical Fertilizers
      4.2.3.3 Livestock Holding
      4.2.3.4 Number of Oxen Owned
      4.2.3.5 Credit Use
      4.2.3.6 Cooperative Membership
      4.2.3.7 Educational Level of Household Head
      4.2.3.8 Total Income Compositions of the sample households in ETB
4.3 Factors Affecting the Choices of Livelihood Strategies
4.4 Multinomial Logistic Regression
   4.4.1 Significant Explanatory Variables
4.5 Summary of the Qualitative Analysis

5. CONCLUSION AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendations

6. REFERENCES

7. APPENDICES
7.1 Appendix I: List of Tables in the Appendices
7.2 Appendix II : Interview Schedule
7.3 Appendix III: Checklist for the Key informants' Interview
7.4 Appendix IV: Checklist for Focus Group Discussion

8. ETHIOPIA - KEY TECHNICAL TERMS
9. GLOSSARY
10. SUBJECT INDEX

⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯

Year of publication: 2022
Language: English
Authors: Ayele T., Senapathy M.
Translation: No
Translator: -

Type: E-book
Number of pages: 168
Format: PDF (8,4 MB)
ISBN: 979-8-88796-793-6
UDC: -

References

  1. Abu Girma, (2013). The Challenges and Policies of Poverty Reduction in Ethiopia, Institute of Humanities and Social Sciences, University of Tsukuba, Japan. Vol. 5, No. 1 (2013) pp.94-117, Special Issue on the Ethiopian Economy.
  2. ADB (African Development Bank), (2007). Accelerating Africa’s Development through Diversification by the Economic Commission for Africa. Economic Report on Africa 2007, Addis Ababa, Ethiopia.
  3. Adugna Eneyew, (2008). Livelihood Strategies and food security in Wolaita, Southern Ethiopia: The Case of Boloso Sore District. Unpublished M.Sc. Thesis, October 2008. Haramaya University.
  4. Adugna Eneyew, (2010). Review of Literature on Ethiopian Food Security Strategy and its Linkage to other Policies. Journal article available at: http://www.preservearticles.com/2011112117669/review-of-literature-on-ethiopian-food-security-strategy-and-its-linkage-to-other-policies.html. (Accessed on February 8, 2016)
  5. Adugna Lemi, (2005). The Dynamics of Livelihood Diversification in Ethiopia Revisited: Evidence from Panel Data. Department of Economics University of Massachusetts, Boston.
  6. Alwang, J., G.P. Hans. Jansen, Paul Seigel, B., (2005). Geographic Space, Assets, Livelihoods and Wellbeing in Rural Central America: Empirical Evidence from Guatemala Honduras and Nicaragua.
  7. AOC (Acts of Compassion) (2015). Improving the fruit value chain by the promotion of dried mango and banana in Boloso Sore woreda of Wolayta Zone, Ethiopia.
  8. Ashley, C., and Carney, D., (1999). Sustainable Livelihoods: Lessons from Early Experience.London, UK.
  9. Ashley, C., (2000). The Impacts of Tourism on Rural Livelihoods: Namibia’s Experience. Working Paper 128.
  10. Ayele Tesema, (2008). Livelihood Adaptation, Risks and Vulnerability in Rural Wolaita, Ethiopia. Department of International Environment and Development Studies, Noragric.
  11. Ayele Tessema, (2005). Household livelihood adaptation in a high population density area in Ethiopia: The case of Wolaita Zone. Norwegian University of Life Sciences.
  12. Babatude, R.O. and Qaim, M (2010). Impact of off-farm income on food security and nutrition in Nigeria. Food policy 35: 303-311.
  13. Barrett, C. B., Reardon, T., Webb, P., (2001). Non-farm Income Diversification and Household Livelihood Strategies in Rural Africa: Concepts, Dynamics, and Policy Implications. Food Policy, 26: 315-331.
  14. Barrett, C.B., Bezuneh, M., Clay, D. and Reardon, T. (2005). Heterogeneous constraints, incentives and income diversification strategies in rural Africa. Quarterly Journal of International Agriculture, 44(1), 37-60.
  15. Berehanu Eshete, (2007). Livelihood Strategies of Smallholder Farmers and Income Poverty in drought-prone areas: The case of Gena- Boloso woreda, SNNPRS. Thesis Presented to the School of Graduate Studies of Haramaya University. (Unpublished Thesis)
  16. Beyene Tadesse, Assefa Admassie and Andre, C., (2000). The Impact of Agricultural Extension on-farm Productivity. Ethiopian Journal of Agricultural Economics, 4 (1&2): 23-45.
  17. Bezemer, D. J. and Lerman, Z., (2002). Rural Livelihoods in Armenia: The Centre for Agricultural Economic Research, the Department of Agricultural Economics and Management Discussion Paper No. 4.03.
  18. Brown, D.R., Stephens, E., C., Okoro, M.J., Murithi, F.M., Barrette, C.B, (2006). Livelihood Strategies in the Rural Kenyan Highland.
  19. CARE, (2001). Participatory Livelihoods Assessment, Kosovo. CARE International UK Urban Briefing Notes. London, UK.
  20. Carswell, G., (2000). Livelihood Diversification in Southern Ethiopia. IDS Working Paper, 117, Institute of Development Studies
  21. Carney, D., M. (1999). Livelihoods Approaches Compared: A Brief Comparison of the Livelihoods Approaches of the UK.
  22. Chambers, R., and G.R. Conway, (1992). Sustainable Rural Livelihoods: Practical Concepts for 21 st Century. Institute of Development Studies Discussion Papers, 296, Cambridge.
  23. CSA (Central Statistical Authority), (2013). Population Estimates. Ethiopia, Addis Ababa.
  24. CSA (Central Statistical Authority), (2014). Population Estimates. Ethiopia, Addis Ababa.
  25. Davis, R., (2003). The rural non-farm economy, livelihoods and their diversification: Issues and options. Natural Resource: London.
  26. DEAT, (2009). Guidelines developed by DEAT, GTZ Transform and co-sponsored by USAID.
  27. Degefa Tolossa, (2005). Rural livelihoods, poverty and food insecurity in Ethiopia: A case study at Erenssa and Garbi Communities in Oromiya Zone, Amhara National Regional State, Trondheim: Norwegian University of Science and Technology (NTNU).
  28. Dejene Negassa, (2001). Socioeconomic Responses to Peasant Households to Resource Pressures at Kamme, Bate, Oromiya Zone of Amhara Region. Unpublished Research Report to BASIS Horn of Africa Program/OSSREA, Addis Ababa.
  29. Dercon, S and P. Krishnan, (2005). Income Portfolios in Rural Ethiopia and Tanzania: Choices and constraints. Journal of Development Studies, Vol. 36(2).
  30. Destaw Berhanu, (2003). Non-farm Employment and Farm Production of smallholder Farmers: A Study in Edja District of Ethiopia. A Thesis Submitted to the School of Graduate Studies Alemaya University.
  31. Devereux, S., (2000). Food Insecurity in Ethiopia: a discussion paper for DFID, IDS Sussex.
  32. DFID, (1999). Natural Resources Systems Programme: Annual Report 1998/99, RNRKS.
  33. DFID, (1999). Sustainable Rural Livelihoods Guidance Sheet, London, UK.
  34. DFID, (2000). Sustainable Rural Livelihoods Guidance Sheet, London, UK.
  35. DFID, (2001). Sustainable Rural Livelihoods Guidance Sheet, London, UK.
  36. DFID (Department for International Development), (2002). The Role of Agriculture. Better Livelihoods for Poor People, A Paper on Agriculture. 1-32.
  37. Dilruba Khatun and B.C. Roy, (2012). Rural livelihood diversification in West Bengal: Determinants and Constraints. Agricultural Economics Research Review Vol. 25(No.1) January-June 2012 pp 115-124.
  38. Ellis, F., (2000). Rural Livelihoods and Diversity in Developing Countries. Oxford University Press Inc. New York.
  39. Ellis, F. (2004). Occupational Diversification in Developing Countries and implications for Agricultural Policy. December 2004, Hot Topic Paper.
  40. Ellis, F., and Allison, E., (2004). Livelihood Diversification and Natural Resource Access: Overseas Development Group Working paper 9. University of East Anglia UK.
  41. FAO, (2009). Analyzing and responding to the impact of the disaster on the livelihoods of people Volume1, page 15.
  42. Farrington, J., T. Ramasut, J. Walker, (2002). Sustainable Livelihoods Approaches in Urban Areas: General Lessons, with Illustrations from Indian Cases. ODI, London, UK.
  43. FDRE, (2002). Government of Ethiopia (GOE): Food Security Strategy, Addis Ababa.
  44. Fekadu Beyene and Mequanent Muche (2010). Determinants of Food Security among Rural Households of Central Ethiopia: An Empirical Analysis. Quarterly Journal of International Agriculture 49(4), 299-318
  45. Fikadu Mitiku Abdissa, (2011). Dynamics of Households On-farm and Off-farm Diversification: The Case of Coffee Producing Farm Households in Southern Ethiopia. M. Sc. Thesis, Wageningen University, the Netherlands.
  46. Fitsum, H. and Holden, S., (2003). Rural Household Poverty Dynamics in Northern Ethiopia (1997-2000): Analysis of Determinants of Poverty. Department of Economics and Social Sciences, Aas Norway.
  47. Galab, S., Fenn, B., Jones, N., Raju, D. S. R., Wilson, I., and Reddy M.G., (2002). Livelihood Diversification in Rural Andhra Pradesh: Household Asset Portfolios and Implications for Poverty Reduction. Working Paper No. 34.
  48. Gebrehiwot Weldegebrial and Fekadu Kebede, (2012). Rural household livelihood strategies in drought-prone areas: The case of Gulomekeda District, Eastern Zone of Tigray National Regional State, Ethiopia.
  49. Greene, W., (2003). Econometric Analysis. Fifth Edition, Prentice-Hall, USA.
  50. Greene, W. (2000). Econometric analysis. Englewood Cliffs, NJ: Prentice-Hall.
  51. Gujarati, D. N., (1995). Basic Econometrics. 3rd ed. McGraw - Hill Co. New York.
  52. Hart, G., (1994). The Dynamics of Diversification in an Asian Rice Region. Ch. 2 in Koppel B et al (eds.) Development or Deterioration: Theories, Experiences and Policies. Oxford and New York: Oxford University Press.
  53. Hussein, K., and J. Nelson, (1999). Sustainable Livelihoods and Diversification. IDS Working Paper 69. London: Institute of Development Studies
  54. Isaac, B. (2009). Poverty and income diversification among households in rural Nigeria: A Gender Analysis of Livelihood Patterns. Oluwatayo Conference Paper No 41.
  55. Jansen, H., Damon, P., A., John, P., Wielemaker, W., and Schipper, R.,(2004). Policies for Sustainable Development in the Hillside Areas of Honduras: A Quantitative Livelihoods Approach. International Food Policy Research Institute (IFPRI), Central America Office, Washington, DC, USA.
  56. Judge, G.E., Griffiths. R., Cartry, H., Lutkepoh and Lee, T., (1985). The Theory and Practice of Econometrics. Whiley Series in Probability and Mathematical Statistics. New York. 756-778.
  57. Kollmair, M., and Gamper, S., (2002). The Sustainable Livelihoods Approach: Input Paper for the Integrated Training Course of NCCR North-South Aeschiried, Switzerland.
  58. Lasse Krantz, (2001). The Sustainable Livelihood Approach to Poverty Reduction.
  59. Lipton, M, (1977). Why poor people stay poor: urban bias in world development.'(Cambridge: Harvard UP, 1977).
  60. Lautzke, S., Aklilu, Y., Raven-Roberts, R., Young, H., Kebede, G. and Learning, J., (2003). Risk and Vulnerability in Ethiopia: Learning from the Past, Responding to the Present, Preparing for the Future. A Report for the US Agency for International Development.
  61. Meser, N. and Townsley P., (2003). Local Institutions and Livelihoods: Guideline for Analysis. Rural Development Divisions, FAO of the United Nations, Rome.
  62. Moti Jaleta and Gardebroek, C., (2008). Crop and Market Outlet Choice Interactions at Household Level. Ethiopian Journal of Agricultural Economics, 7 (1): 29-49.
  63. Mucopa, C., V.M. Manyong, and L.M. Sibanda, (2004). Agricultural policy priorities for improving rural livelihoods in southern Africa. Regional synthesis. Food Agriculture Natural Resources Policy Analysis Network (FANRPAN). Harare, Zimbabwe. 20pp.
  64. Mujib Urrehman, Jehanzeb and Mubina F. Rana, (2008). Five Livelihood Strategies of different categories of households in rural areas of Abbottabad, Pakistan. Sarhad J. Agric. Vol.24, No.4, 2008
  65. Rahman M. H., Firdissa T., Bwalya B., Lund T. and Ghulam R. (2007). Livelihood Diversification in Rural Uganda: Impact of Africa’s Development Activities on the Livelihoods of Nyabyumba Community. International Journal of Sustainable Crop Production, 2(6): 36-43.
  66. Rajadel, T., (2003). The Engagement in the Non-Agricultural Sector as a Risk-Mitigating Strategy in Rural Pakistan. Paris, France.
  67. Reardon, T. (1992). Determinants and Effects of Income Diversification among Farm Households in Burkina Faso. Journal of Development Studies, Vol.28 No.2, pp. 264-296.
  68. Rao, J., Niehof, A., Price, L., and Moerbeek, H., (2004). Food Security through the Livelihoods Lens: An Integrative Approach (the case of less-favoured areas in the Philippines); / http://www:slswau.nl/mi/response/Rao.pdf./ date accessed, December 2008.
  69. Scoones, I., (1998). Sustainable livelihoods, a framework for analysis, IDS working paper
  70. Solesbury, W., (2003). Sustainable Livelihoods: A Case Study of the Evolution of DFID Policy, London, UK.
  71. Soussan, J. Blaikie, P., Springate-Baginski, O. and Chadwick, M., (2000). Understanding Livelihood. Processes and Dynamics: Livelihood Policy Relationships in South Asia. Working Paper 7, DFID, UK.SPSS Statically Package for Social Since Version 20.
  72. Storck, H., Bezabih Emana, Berhanu Adnew, A. Borowiccki and Shimelis W/Hawariat, (1991). “Farming System and Farm Management Practices of Smallholders in the Hararghe Highland.” Farming Systems and Resource Economics in the Tropics, vol. 11, Wissenschaftsverlag Vauk, Kiel, Germany.
  73. Tesfaye Lemma, (2003). Diversity in livelihoods and farmer strategies in Hararghe highlands, Eastern Ethiopia, University of Pretoria, South Africa.
  74. Topalova, (2007). Trade Liberalization, Poverty and Inequality: Evidence from Indian Districts, Globalization and Poverty, pages 291-336 National Bureau of Economic Research, Inc.
  75. Warren, P., (2002). Livelihoods Diversification and Enterprise Development: An Initial Exploration of Concepts and Issues. Rome: FAO.
  76. Winters P, B. Davis, L Corral. (2002). Assets, Activities, and Income Generation in Rural Mexico.
  77. Woinishet Asnake, (2010). Participation in off-farm activities in rural Ethiopia: who earns more? MA research Paper submitted to Institute of Social Studies, Hague, The Netherlands.
  78. World Food Program, (2011). Ethiopia: Overview. ETHIOPIA EXTN/0, menu PK: 295942~pagePK:141132~piPK:141105~theSitePK:295930,00.html.
  79. WZFEDD, (2015). Wolaita Zone Socio-Economic Information. Wolaita Zone Finance and Economic Development Department, May 2015.
  80. www.ethio.gis.com, (2014)
  81. Yamane, Taro. (1967). Statistics: An Introductory Analysis 2nd Edition. New York: Harper and Row
  82. Yishak Gecho, Gezahegn Ayele, Tesfaye Lemma, Dawit Alemu. (2014) Rural Household Livelihood Strategies: Options and Determinants in the Case of Wolaita Zone, Southern Ethiopia. Social Sciences. Vol. 3, No. 3, 2014, pp. 92-104. DOI: 10.11648/j.ss.20140303.15