Research on World Agricultural Economy

Editor-in-Chief
Guido Van Huylenbroeck, Ghent University, Belgium
Cheng Sun, China Branch of World Productivity Federation of Science and Technology; Academic Committee of the
United Nations NGO International Information Development Organization, China

Associate Editors
Jesus Simal-Gandara, University of Vigo, Spain
Filippo Sgroi, University of Palermo, Italy
Yu Sheng, Peking University, China

Editorial Board Members

Man-Keun Kim, Utah State University, United States
Fabian Capitanio, University of Naples Federico II, Italy
G M Monirul Alam, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Bangladesh; University of
Southern Queensland(USQ), Australia
Alberto J. Nunez-Selles, Universidad Nacional Evangelica (UNEV), Dominican Republic
Jiban Shrestha, National Plant Breeding and Genetics Research Centre, Nepal
Zhiguo Wang, China Association for Science and Technology, China
Xiaoyong Huang, International Energy Security Research Center, Chinese Academy of Social Sciences, China
Giuseppe Pulighe, Council for Agricultural Research and Economics (CREA), Italy
Alamgir Ahmad Dar, Sher-e-Kashmir University of Agricultural Sciences & Technology, India
Keshav D Singh, Agriculture and Agri-Food Canada (AAFC), Canada
K. Nirmal Ravi Kumar, Acharya NG Ranga Agricultural University, India
Zhengbin Zhang, Institute of Genetics and Developmental Biology, Chinese Academy of Sciences, China
Rishi Ram Kattel, Agriculture and Forestry University, Nepal
Jianping Zhang, Chinese Academy of International Trade and Economic Cooperation, China
Lin Shen, China Agricultural University, China
Juan Sebastián Castillo Valero, University of Castilla-La Mancha, Spain
Kassa Tarekegn, Southern Agricultural Research Institute, Ethiopia
Shahbaz Khan, National Agricultural Research Centre, Pakistan
Gioacchino Pappalardo, University of Catania, Italy
Alisher Tleubayev, Suleyman Demirel University, Kazakhstan
Ali Darub Kassar, University of Anbar, Iraq
Shaobo Long, Chongqing University, China
Wenjin Long, China Agricultural University, China
 Volume 4 Issue 1 • March 2023 • ISSN 2737-4777 (Print) 2737-4785 (Online)

Research on World
Agricultural Economy

Editor-in-Chief
Guido Van Huylenbroeck
Cheng Sun
 Volume 4 ｜ Issue 1 ｜ March 2023 ｜ Page1-82
Research on World Agricultural Economy

Contents
Research Articles
1 Socioeconomic Assessment of Mandarin Postharvest Loss: A Case of Gandaki Province, Nepal
Yogendra Acharya Namdev Upadhyaya Sudha Sapkota
10 Assessment of Dairy Production System, Handling, Processing and Utilization Practices in South Ari and
Malle District of South Omo Zone, Ethiopia
Demerew Getaneh
25 A Multi-group Analysis of Gender Difference in Consumer Buying Intention of Agricultural Products via
Live Streaming
Bing Zhu Ping Xu Ke Wang
36 Farmer’s Perception on Climatic Factors and Social-economic Characteristics in the Agricultural Sector
of Gujarat
Ajay K. Singh Shah Nawaz Ashraf Sandeep Kumar Sharma
54 Economic Analysis of Locally Produced Aquaculture Feeds with Complements of Plant-based Ingredi-
ents in Kainji Lake Basin, Nigeria
Julius Emeka Omeje Anthonia Ifeyinwa Achike Godfrey O Nwabeze Lenient Mercy O Ibiyo
Samuel Preye Jimmy
62 Cluster-based Improved Sorghum Production and Commercialization in Nyangatom Woreda of South
Omo Zone, Southern Ethiopia
Awoke Tadesse Asmera Adicha Tekle Yosef Anteneh Tadesse
73 The Contribution of Work Experience on Earnings Inequality of Migrant Workers: Decompositions
Based on the Quantile Regression Equation
Jiaqi Peng Jun Li Ling Ma Zhiwang Lv
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Research on World Agricultural Economy

https://ojs.nassg.org/index.php/rwae

RESEARCH ARTICLE
Socioeconomic Assessment of Mandarin Postharvest Loss: A Case of
Gandaki Province, Nepal
Yogendra Acharya1* Namdev Upadhyaya1 Sudha Sapkota2
1. Planning Division, Nepal Agricultural Research Council, Singha Durbar Plaza, Kathmandu, P.O. Box 5459, Nepal
2. Monitoring and Evaluation Division, Nepal Agricultural Research Council, Singha Durbar Plaza, Kathmandu, P.O.
Box 5459, Nepal

Abstract: This study focused on the socioeconomic assessment of mandarin postharvest loss in the Gandaki Province
of Nepal. Two mandarin growing districts Tanahun and Syangja of Gandaki province were selected for study purposes.
A simple random method of sampling was employed to select 45 mandarin farmers from each district making a
total sample size of 90. Primary data were collected with the help of a pre-tested semi-structured interview schedule
along with two focus group discussions and field observation of the mandarin orchard. Data were analyzed by using
both descriptive and inferential statistics. This paper explored the mandarin production status, major post-harvest
practices, marketing channels, and barriers to post-harvest technology adoption. The findings revealed that farmers
were producing 5.4 tons of fresh mandarin each year earning around 50 thousand Nepalese rupees as profit from
mandarin farming. Similarly, the result showed that the post-harvest loss was 8%-9% during the harvesting, grading,
and packaging operation while a loss of 2%-3% was recorded during the transportation of mandarin from the production
site to the wholesaler site. In total, loss ranging from 14%-18% was recorded in all chains of mandarin postharvest
operations. Also, it was found that more than two-thirds (76.7%) of farmers practiced mandarin marketing based on pre-
harvest contracts. The technical know-how of farmers about post-harvest technologies was a major challenge associated
with the low adoption of mandarin post-harvest technologies. The concerned government agency, I/NGOs, and other
organizations need to emphasize post-harvest loss issues by incorporating loss minimization activities in their program
ensuring higher adoption of postharvest technologies by mandarin farmers and traders.

Keywords: Agro-pastoralists perception; Post-harvest; Mandarin; Technology; Adoption

*Corresponding Author:
Yogendra Acharya,
Planning Division, Nepal Agricultural Research Council, Singha Durbar Plaza, Kathmandu, P.O. Box 5459, Nepal;
Email: yogendraacharya9@gmail.com

Received: 2 December 2022; Received in revised form: 3 January 2023; Accepted: 10 January 2023; Published: 12
January 2023

Citation: Acharya, Y., Upadhyaya, N., Sapkota, S., 2023. Socioeconomic Assessment of Mandarin Postharvest
Loss: A Case of Gandaki Province, Nepal. Research on World Agricultural Economy. 4(1), 787. http://dx.doi.
org/10.36956/rwae.v4i1.787

DOI: http://dx.doi.org/10.36956/rwae.v4i1.787
Copyright © 2023 by the author(s). Published by NanYang Academy of Sciences Pte. Ltd. This is an open access article under the Creative
Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License. (https://creativecommons.org/licenses/by-nc/4.0/).

1
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
1. Introduction
Citrus, particularly mandarin fruit (Citrus reticulate
Blanco) is one of the most important and highly commer-
cial fruit crops in Nepal. Mandarin being a sub-tropical
fruit is highly suitable for undulating and marginal topog-
raphy of the country. It is grown widely in mid hills of
Nepal covering 56 districts of Nepal. Mandarin plays a
significant role in the national economy which contributes
0.97% share in AGDP and 0.33% in GDP [1,2]. Production
and marketing of mandarin fruit is an important source
of income not just for mandarin farmers and traders, but
also provides seasonal employment for many agriculture
laborers. Mandarin being a non-climacteric and perishable
fruit, losses of mandarin fruit during harvesting, handling
and marketing are reported to vary between different per-
centages. In Nepal the postharvest loss for citrus fruit was
estimated from 15%-20% [3]. Minimizing postharvest loss
of mandarin fruit is a very effective way to increase fruit
availability and reduce the cost of cultivation for farmers
which ultimately helps increase farmers’ income.
Although mandarin has been grown widely as an im-
portant commercial fruit crop in mid-hilly terrain, farmers
are not fully acquainted with orchard management and
post-harvest practices. Despite the ecological advantage,
the production of mandarin fruits is still insufficient to
meet the domestic demand of the country. Mandarin culti-
vation provides a better profitable farming option to hilly
farmers; however considerable attention has not been
given to increasing post-harvest loss issues. Although the
losses of mandarin fruits differ upon many factors as like
management techniques, topography, climate, and varie-
ties, the shelf life of horticulture production is greatly
influenced by adopted postharvest management practices.
Similarly, in the case of diverse farmers’ economic condi-
tions and the farmers’ involvement in fruit production,
there exist several issues related to production and post-
harvest practices. The adoption of post-harvest technolo-
gies at the farmers’ level demands awareness, knowledge
and thereafter decision process. Mostly men are involved
in decision-making tasks and most commonly those works
which require more physical strength. Unlike this, emale
are more likely expected to do manual and repetitive
works which do not require more physical strength but
encounter a lot of drudgeries [4]. The development of suit-
able post-harvest technologies and their wider adoption
among all mandarin farmers is crucial into reducing post-
harvest losses. Reducing post-harvest losses can bring
more food without bringing additional land in production
and all post-harvest horticulturist need to coordinate their
effort with those involved in production to the marketing
2
system [5,6]. Although post-harvest is a worldwide issue, its
challenge and impact are more prominent in developing
countries like Nepal. Keeping this in view, a socio-eco-
nomic assessment of mandarin post-harvest loss has been
carried out to understand farmers’ knowledge and practice
on post-harvest activities and associated losses in different
stages of mandarin post-harvest operations.
2. Methodology
2.1 Study Area
The research was conducted in two districts of Gandaki
province. Out of eleven, nine districts of Gandaki prov-
ince are somehow popular for mandarin production except
for Manang and Mustang. Both Syangja and Tanahun dis-
tricts were purposively selected for the study purpose as
both districts rank first and second in terms of production
area [1]. In total four locations were identified from two
districts. Mygde and Shuklagandaki rural municipalities
of Tanahun and Putalibazar and Arjunchaupari Munici-
palities of Syangja were selected for study purposes.
2.2 Primary Information
Primary data were collected by using pretested inter-
view schedule administered to the 90 mandarin-growing
farmers. Two focus group discussions were organized to
get surplus and validate the information. Mandarin Or-
chard, collection centers were visited in the study site in
two districts of Gandaki province. Apart from farmers,
AKC and farmers’ super zone program under PMAM-
project was consulted for gathering all mandarin related
information.
2.3 Secondary Information and Data Analysis
Mandarin-related reports, scientific papers and books
were reviewed to get the required secondary information
on mandarin post-harvest-related technology. Data entry
and analysis were done by using Statistical Package for
Social Science (SPSS) and Microsoft excel software pack-
age. Socio-demographic characters, mandarin production,
and post-harvest loss were analyzed by using descriptive
tools such as frequencies, percentages and mean as per
need. Similarly, the barriers to the adoption of postharvest
loss minimization technologies were ranked by using a
five-point scale (Figure 1). The index related to the bar-
rier factor was calculated by using the weightage average
mean. The index of intensity was computed by using the
following formula and ranking scale.
Iprob = ∑Sifi/N,
where, Iprob = Index value for intensity
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Si = Scale value for the ith intensity
Fi = Frequency of the ith intensity
N = Total number of respondent
Iprob= Index ((0<I<1)
Figure 1. Five-point ranking scale.
3. Results and Discussion
3.1 Study on Knowledge, Perception and Adop-
tion of Postharvest Technology along the Supply
Chain
3.1.1 Descriptive Statistics of Variable
The descriptive statistics of variables include the demo-
graphic and socio-economic variables of surveyed house-
holds. Table 1 represents the mean, standard deviation and
minimum maximum value of the given variables. Mainly
age, gender, education, farming experience, migration and
mandarin cultivation status were some major variables
given in the table. Mainly the average age of the respond-
ent was 52 years with an age range from 22 to 79 years. In
the case of gender, the majority of them were male (80%).
The literacy level of the surveyed households was classi-
fied as the number of schooling years. The result indicated
that the average education level was 7 years of schooling.
Also, outmigration for an employment opportunity is an
important variable that indicates the status of household
labor supply and household income status. The result
showed that 43% of households had at least one member
engaged in an overseas job. Similarly farming experience
of respondent households can be considered an important
variable as it is helpful in determining the choice behav-
ior of farmers in adopting production and postharvest
technologies. In this study, it was found that farmers have
been cultivating mandarin for 18 years on average. Farm-
ers have been growing mandarin traditionally since long
ago, however production areas may vary as per land area
availability and interest of farmers. Likewise, on average,
the number of parcels used for mandarin production was
found 2.26 in the study area. The detail of the value is
given in Table 1.
3.1.2 Mandarin Farming
Information regarding total mandarin plants, number
of fruiting plants, sold quantity and annual income from
mandarin was collected during the household survey. The
result showed that farmers have been cultivating mandarin
plants from 30 to 2500 in number. The average holding of
the mandarin plant by farmers was 294 plants per house-
hold while the value decreases to 178 plants if considering
only fruiting mandarin plants per household (Table 2).
Most of the farmers have been cultivating mandarin as a
major farming business and one of the important sources
of household income. In most cases, farmer earned their
income by selling fresh fruit to traders and pre-harvest
contractors. The finding indicated that on average farmers
sold 5.3 tons of mandarin per year. Also, results showed
that mandarin has contributed 50 thousand per year to
farmers’ annual profit by selling fresh mandarin.
3.1.3 Social Class (Caste)-wise Number of Man-
darin Plants
There exists a social class category in most societies.
In this study, three major classes were identified, Brah-
min/Chettri, Janajati and Dalit. Among them majority of
respondents were Brahmin/Chettri (62%), followed by
Janajati (22%) and Dalit (16%) (Table 3). The Brahmins/
Chettri was the dominating caste in the surveyed area as
shown below in the table. The results showed that among

Table 1. Demographic variables.

Variables Value Mean Std. Deviation Minimum Maximum
Age of respondent Year in number 51.58 13.680 22 79
Education Years in number 6.96 4.762 0 17
Outmigration Abroad, yes=1, otherwise=0 0.43 0.498 0 1
Experience in mandarin farming Years in number 18.30 10.883 1 45
Total cultivated land Land area in ropani* 12.51 12.885 0 92
Land allocated for Mandarin Land area in ropani 8.40 9.97 1 80
No. of parcel for Mandarin Number of parcel 2.26 1.32 1 7
2
* Ropani= 508.74 m
Source: Field survey (2020).

3
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Table 2. Mandarin plant and annual income.

Variables Value Mean Std. Deviation Minimum Maximum
Total Mandarin plants (fruiting and non-fruiting) Number of plant 293.53 357.92 30 2500
Fruiting mandarin plants Number of fruiting plants 177.18 275.40 0 2000
Last season mandarin production Production in kg 5481.13 12175 0 75000
Last season sold mandarin Sold mandarin in kg 5380.19 12195.67 0 75000
Total annual profit from mandarin Annual profit in NPR 49475 144818.93 0 950000

Source: Field survey (2020)

Table 3. Caste-wise mandarin plants.

Caste N Mean Std. Deviation Std. Error Minimum Maximum
Brahmin/Chettri 56 317.16 420.799 56.232 30 2500
Janajati 20 277.10 239.271 53.503 30 750
Dalit 14 222.50 189.643 50.684 50 600
Total 90 293.53 357.921 37.728 30 2500

Source: Field survey (2020).

three groups, Brahmins have a higher average holding of
mandarin plants in their orchards than others.
3.1.4 Training Received by Mandarin Farmers
Figure 2 showed that farmers received a different kind
of mandarin training. Among them, most farmers had re-
ceived mandarin production-related training (37.8%) fol-
lowed by orchard management training (32.2%). The per-
centage of farmers getting postharvest training was quite
less as compared to production and orchard management
training. Only 10% of farmers were trained in postharvest
knowledge and skills. Likewise training onthe marketing-
related issue was negligible, and only 3.3% of farmers
were lucky to receive such training. These low percent-
ages indicated that concerned institutions and programs
had given less priority to postharvest and market-related
training.
3.2 Mandarin Postharvest Operation, Farmer’s
Knowledge and Practice
3.2.1 Harvesting Criteria, Time and Collection
Harvesting criteria are considered the beginning step of
the postharvest operation. The different types of harvest-
ing criteria may affect the postharvest quality of mandarin

120.00%
96.70%
100.00% 90%

80.00% 67.80%
62.20%
60.00%
37.80%
40.00% 32.20%

20.00% 10%
3.30%
0.00%
Mandarin production training Orchard management training Postharvest related training Marketing related training

Total Yes
Training received by farmers Total No

Figure 2. Training received by mandarin farmers.

4
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
to some extent. The result showed that most farmers fol-
low mandarin harvesting based on the color of the fruit
(54%) followed by the order of traders (28%). Also some
farmers decide to harvest mandarin as per market price.
The timing of mandarin harvesting could affect the
shelf life of mandarin after harvest. In most cases, farmers
do harvest mandarin fruit in the late morning time (53.3%),
however still many farmers (45.6%) harvest fruits in the
midday time. Higher temperatures during midday time
and subsequent handling practices could affect the post-
harvest quality of mandarin. Similarly, the result showed
that after harvest, the majority of farmers used a plastic
crate to collect the harvested fruits followed by a local bam-
boo bucket (38%) (Figure 3). However, still some farmers
were using jute/plastic sacks to collect the mandarin.
0
1.10%
16.70%
Plastic Crate
44.50% Bamboo bucket/Doko
Jute/Plastic Sacks
37.80%
Other
Figure 3. Collection of mandarin fruits after harvest.
3.2.2 Sorting of Mandarin after Mandarin Harvest
Mandarin sorting after harvesting helps to avoid mixing
fresh and healthy fruits with diseased and damaged fruits.
Generally commercial farmers were more aware of sorting
operations than normal farmers. The result depicted that
almost 89% of farmers performed sorting operations sepa-
rating 2.2% of mandarin as damaged and diseased ones.
3.2.3 Management of Sorted Mandarin
Farmers performing sorting operations were asked
40% 35.60%
35%
30%
25%
20%
15%
10%
5%
0%
Left in orchard
Management of sorted mandarin
Figure 4. Management of sorted mandarin by farmers.
to know what they do with sorted fruits. The findings
showed that more than one-third of farmers (35.6%) did
nothing with sorted fruits and left those decayed fruits in
the orchard. In general, it is not suggested to leave those
affected fruits in the orchard as it helps to spread disease
infection and create a favorable environment for the pest
population (Figure 4). Similarly, the result indicated that
34.4% of farmers were utilizing those sorted mandarin by
making local wine. Among wine-making households, it
became a source of small income for female member by
selling homemade wine to local hotels and neighbors.
3.2.4 Mandarin Grading and Criteria for Grading
Mandarin grading is one of the important and popu-
lar postharvest operations among commercial mandarin
growers. In this case selling purpose-graded mandarin
fetches higher price than non-graded mandarin. Among
surveyed farmers, almost all farmers (96%) had been prac-
ticing grading operations. The common method of man-
darin grading at a local level is a traditional method. The
first choice of a farmer to grade their mandarin is based on
the size and shape of the fruits. Farmers grade their fruits
by deciding on the greater size, middle size and small-
est size (locally called Jethi, Maili and Kanchi). Besides,
some farmers also perform grading operations based on
the color of fruits (24.4%) followed by damage made by
inspecting pests (16.3%) and physical injury (12.8%).
3.2.5 Farmers’ Knowledge on Mandarin Process-
ing Operation
Due to its perishable nature, the processing of hor-
ticultural crops is considered one of the key operations
addressing postharvest loss issues. Further it helps to add
monetary value to the product too. Although processing
operation in mandarin is quite popular, farmers in the
34.40%
20%
10%
Throw in open pit Burry in pit Local wine making and other
5
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
studied area were found to be less aware. Only 45% of
farmers knew it while 43% of farmers were unaware of
it (Figure 5). The reason behind less awareness among
farmers might be due to no surplus production in the main
season. All the products get marketed easily, local and
pre-harvest contractors play the lead role in marketing ac-
tivity.
43.30% 44.40%
Yes Little bit
12.20%
Figure 5. Farmers’ knowledge on mandarin processing
operation.
3.2.6 Packaging Materials for Mandarin
Plastic crate use was highly popular among mandarin
farmers. Almost 98% of farmers had adopted plastic crates
as a means for mandarin packaging. The types of packag-
ing materials use greatly determine the extent of damage
during subsequent handling, storage and transportation.
Among different materials, some farmers (5.6%) were us-
ing a bamboo bucket (doko) followed by paper cartoons
(1.1%) (Figure 6). In the past decade, farmers used to face
significant loss of mandarin annually due to not adopting
proper packaging materials, but the trend of using plastic
create has increased rapidly these days. However, still
some farmers are forced to use a local bamboo bucket and
even jute sacks due to the unavailability of plastic create.
In some cases, carrying mandarin in the plastic crate was
found difficult due to difficult hilly terrain.
120%
97.80%
100%
80%
60%
40%
20% 5.60% 1.10%
0%
Bamboo Doko Plastic crate Paper carton
Packaging materials
Figure 6. Packaging materials use for mandarin.
Although plastic crates are simple and common pack-
6
aging materials, their availability at local a level is ques-
tionable. In general, the cost for one piece of the crate
goes from 400 to 700 Nepali rupees which can hold up
to 20-22 kg of mandarin. However the durability of crate
was reported to be less satisfactory for farmers. Also for a
local contractor, the life span of one crate is no more than
one year and for wholesalers at the national level; one
crate can be used hardly for six months only.
3.3 Mandarin Transportation
Depending upon packaging materials means of trans-
No portation, road condition and temperature a large volume
of loss occurs during mandarin transportation. Figure 6
revealed that pick-up was the most used means of trans-
portation for mandarin. Apart from a pickup, 28% farmers
were using mini trucks and 12% of farmers were trans-
porting mandarin manually (Figure 7). The result sug-
gested that farmers’ preference was higher for pick up and
still some farmers were not connected with vehicle trans-
portation.
60% 56.70%
50%
40%
27.80%
30%
20% 12.20%
10% 1.10% 2.20%
0%
Pick up Mini truck Manual Three wheeler/auto Others
Transportation means
Figure 7. Transportation means for Mandarin.
3.4 Mandarin Marketing
Farmers act as the primary producer of mandarin. In
general, farmers were involved as primary sellers whereas
contractors, traders were primary buyers. Mainly farmers,
and preharvest contractors/traders were the main actors
involved in the marketing of mandarin, however, the role
of traders was always dominating in purchasing mandarin
from producers and supplying it to other districts [7]. The
result showed that more than two third of farmers (76.7%)
preferred mandarin marketing by means of contractors.
2.20% Those pre-harvest contractors usually visit the farmers’
field after a few months of fruiting and negotiate the total
Other
value of the whole orchard with the producers. Different
criteria such as the number of fruit trees, number of fruits
per tree, shape, etc were used by both contractors and pro-
ducers to finalize the monetary value of the orchard. After
contract fixation, farmers were free to look after their
mandarin; all tasks like harvesting, grading, packaging
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

and transporting of fruits were done pre-harvest harvest
contractors. Although the contract basis of marketing was
popular among farmers the profit margin of farmers had
been compromised greatly. Farmers preferred pre-harvest
contracts because of the low risk associated with harvesting
and transportation.
3.5 Post-harvest Loss at Different Stage of Post-
harvest Operation
Since mandarin is a perishable and non-climacteric
fruit, it shows great losses after harvesting. Worldwide
postharvest loss of fruits and vegetables are high, but the
rate is even higher for developing nation. The questions
on perceived postharvest loss at different steps of posthar-
vest operation were asked to mandarin farmers to assess
the loss calculation. The study reported that higher loss
was observed at the harvesting stage (3.14%) followed by
transportation (2.95%) and the lowest loss was found in
the packaging operation (1.2%). In total, mandarin post-
harvest loss from harvesting to transportation stage was
11.41% in the first stage of marketing (Figure 8).
3.6 Barrier to Postharvest Technology Adoption
Nepal faces the great postharvest loss of mandarin an-
nually due to not adopting proper handling practices dur-
ing different stages of postharvest operations. Minimizing
these losses is only possible when farmers start adopting
postharvest loss-minimizing technologies. As farming is
subsistence in nature, the problems of mandarin farmers
are mostly associated with a lack of technical knowledge
related to production and marketing [8,9]. However, at the
field level, farmers hesitate to adopt available postharvest
technology due to technical and other reasons. The study
results showed that a lack of knowledge of postharvest
technology was the most important barrier to adopting
available postharvest technologies (Table 4). Further,
farmers believed that adopting those technologies was
more expensive for them and also lack of reliable exten-
sion service had made farmers more reluctant to technol-
ogy adoption.
3.7 Marketing Channel and Postharvest Loss
Mandarin reaches consumers’ hands through the in-

3.50% 3.14%
2.95%
3.00%
2.50% 2.12% 2.00%
2.00%
1.50% 1.20%
1.00%
0.50%
0.00%
Harvesting Storage Grading Packaging Transportation

Post harvest loass at different stages of postharvest operation

Figure 8. Post-harvest loss at different stages of postharvest operation.

Table 4. Barrier to the adoption of postharvest loss minimization technology.

Score/Frequency
Barrier Index value Rank
1 0.8 0.6 0.4 0.2
Lack of reliable extension service 16 47 10 1 16 0.70 III
Lack of knowledge about PH technologies 38 49 1 0 2 0.87 I
Credit constraint 10 36 29 2 13 0.33 V
Unwillingness to adopt technologies 6 32 31 3 18 0.61 IV
High cost of technology adoption 13 50 22 1 4 0.75 II

Source: Field survey (2020).

7
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
volvement of different actors like producers, preharvest
contractors, wholesalers and retailers. The route through
which mandarin from orchard to consumers is marketed
is commonly called a marketing channel. In the study
site, the majority of mandarin farmers preferred contract-
based marketing to preharvest contractors or local traders.
A postharvest loss of 8%-9% was recorded for harvest-
ing, grading and packaging operation. A loss of 2%-3%
was noted during the transportation of mandarin from the
production site to the wholesaler site. The study showed
that the total postharvest loss of mandarin within the chain
goes up from 14% to 18% (Figure 9). The study done by
Gangwar [10] in India also found that aggregate post-har-
vest losses of kinnow mandarin from orchard to consumer
in two different market ranges from 14.87% in Delhi mar-
ket to 21.91 in Banglore market.
Figure 9. Marketing channel and postharvest loss.
3.8 Economic Gain
The observed postharvest loss of mandarin was 14% to
18% within the chain from production to consumer site.
As per production data, the country had produced 0.17
million MT of mandarin with productivity of 10.30 MT/
Ha [11]. The the loss of mandarin in different stages of post-
harvest operations indicates not only the loss of fresh pro-
duce but also loss of money in importing mandarin from
a foreign country. The two ways loss caused by a higher
rate of postharvest loss can be minimized is by increasing
the adoption of postharvest loss minimization technol-
ogy at the farmer’s level. In general, it was estimated that
reducing postharvest loss by at least 7% would be a direct
gain of 620 million annually. If it was the case, it would
also check Nepalese currency to go out of the country for
importing mandarin.
8
4. Conclusions
Mandarin contributes as a high-value fruit crop in the
hilly area of Nepal from east to west helping cash earning
for marginalized and poor farmers. The study indicated
post-harvest loss ranges from 13%-18% in different stages
of post-harvest operation. Although various that post-
harvest technologies have been recommended, farmers
face a great loss of mandarin annually due to not adopting
proper post-harvest technologies during different stages of
post-harvest operation. Most farmers had adopted plastic
crates as one of the viable means of post-harvest technolo-
gies. Uses of the plastic crate have increased rapidly these
days playing an important role in minimizing post-harvest
loss of mandarin to some extent. Promoting postharvest
technologies within farmers’ and traders’ practices could
be the best solution to reduce the direct loss of fresh man-
darin fruits which ultimately minimizes the import quan-
tity of mandarin from a foreign country. Similarly, there
exist issues of higher price spread in the mandarin value
chain. Poor marketing systems and weak institutional
mechanisms could be major reasons behind it. Reliable
extension service should be made easily available and
extensional personnel should be regularly trained with
recent postharvest management technologies. To make
an impact, concerned programs and organization need to
incorporate postharvest management activities in their
programs ensuring that mandarin farmers and traders can
be better involved in reducing postharvest loss.
Author Contributions
The corresponding author took the lead in writing the
manuscript while all other co-authors provided critical
feedback and helped in analysis, interpretation, and manu-
script preparation.
Acknowledgments
We acknowledge the VCDP/KOICA project for fund-
ing this research. Similarly, our sincere appreciation
goes to Nepal Agricultural Research Council and to all
respondent farmers and traders for their valuable time and
suggestions.
Data Availability
All data are available in the main text or in the support-
ing materials, whereas raw data can be obtained from the
corresponding author upon request.
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
Conflict of Interest
The authors disclosed no any conflict of interest.
References
[1] MoALD, 2020. Statistical information Nepalese Ag-
riculture, Kathmandu: Government of Nepal.
[2] Rokaya, P., Baral, D., Gautam, D., et al., 2016. Effect
of postharvest treatments on quality and shelf life of
mandarin (Citrus reticulata Blanco). American Jour-
nal of Plant Sciences. 7, 1098-1105.
DOI: https://doi.org/10.4236/ajps.2016.77105
[3] Bhattarai, D.R., 2018. Postharvest horticulture in Ne-
pal. Horticulture International Journal. 2(6), 458-460.
DOI: https://doi.org/10.15406/hij.2018.02.00096
[4] Tripathi, P C , Shukla, A.K, Babu, N., et al., 2016.
Role of women in horticulture and women friendly
technologies. Directorate of Research on Women in
Agriculture: Bhubaneswar, India. pp. 9-11.
[5] Gautam, D.M., Bhattarai, D.R., 2012. Postharvest
horticulture. Bhawani Printers: Chabahil Kathmandu,
Nepal.
[6] Bhattarai, R.R., Rijal, R.K., Mishra, P., 2013.
Post-harvest losses in mandarin orange: A case study
of Dhankuta District, NepalAfrican Journal of Agri-
cultural Research. 8(9), 763-767.
[7] Shrestha, D., 2015. Production cost and market
analysis of mandarin in Dhading district of Nepal.
The Journal of Agriculture and Environment. 16,
112–119.
[8] Pokhrel, C.N., 2011. Analysis of market chain of
mandarin in Nepal: A case of Lamjung district Nepal
[Master’s thesis]. The Netherlands: Van Hall Laren-
stein University of Applied Sciences Wageningen.
[9] Bastakoti, R.C., 2002. Production and marketing ef-
ficiency of mandarin orange in western hills of Nepal
[Master’s thesis]. Nepal: Institute of Agriculture and
Animal Science.
[10] Gangwar, L.S., Singh, D., Singh, D.B., 2007. Esti-
mation of post-harvest losses in Kinnow Mandarin in
Punjab using a modified formula. Agricultural Eco-
nomics Research Review. 20(347-2016-16644), 315-
331.
[11] NCRP, 2020. Annual progress report. National Citrus
Research Program. Paripatle,Dhankuta: Nepal Agri-
cultural Research Council (NARC).
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Research on World Agricultural Economy

https://ojs.nassg.org/index.php/rwae

RESEARCH ARTICLE
Assessment of Dairy Production System, Handling, Processing and
Utilization Practices in South Ari and Malle District of South Omo
Zone, Ethiopia
Demerew Getaneh*
Southern Agricultural Research Institute, Jinka Agricultural Research Center, P.O. Box 96 Jinka, Ethiopia

Abstract: Milk is produced, processed and utilized in different parts of Ethiopia and the majority in rural areas is
processed at the household level into milk products using traditional technologies and marketed through informal
channels. This study was initiated to assess and describe the traditional knowledge of milk production, handling,
processing and utilization practices in South Ari and Malle district. Three dairy potential Kebeles from each district
were selected via a purposive sampling procedure. Then, 196 households were selected through a systematic random
sampling procedure. Data were collected using a semi-structure questionnaire and analyzed by SPSS (Version 23)
software. There was a significant difference (P < 0.05) in livestock composition across the study districts. About 75%
in South Ari and 72.9% in Malle have their own grazing land. Feed shortage (73%) and improved breed access (26%)
in South Ari, and feed shortage (52.1%), drought (44.8%) in Malle were among the main constraints affecting dairying.
About 65% of South Ari used plastic buckets for milking and clay pots for fermentation and churning. In Malle
88.5% used calabash containers for milking, accumulation and churning. The average days of raw milk fermentation
before churning in South Ari and Malle were 4.2 ± 0.1 and 2.9 ± 0.0 days. The average butter-making time was
63.4 ± 1.8 minutes in both districts. The amount of milk fermented and butter produced from this fermented milk is
significantly different (P < 0.05) across districts. Nearly 95% of South Ari milk is traditionally processed into yogurt,
butter, buttermilk and cheese; and used for home consumption and marketing. However, in Malle 72.9% of yogurt and
buttermilk processing is used for home consumption; and 26% of butter processing is only used for marketing. It is
possibly concluded that dairy production was commonly practiced and it was a good source of income in both districts.
Therefore, it is vigorous to support the dairy linkage with extension services by enhancing the input provision.

Keywords: Milk production; Handling; Processing; South Omo; Utilization practices

*Corresponding Author:
Demerew Getaneh,
Southern Agricultural Research Institute, Jinka Agricultural Research Center, P.O. Box 96 Jinka, Ethiopia;
Email: getademe12@gmail.com

Received: 16 November 2022; Received in revised form: 10 January 2023; Accepted: 30 January 2023; Published: 16
February 2023

Citation: Getaneh, D., 2023. Assessment of Dairy Production System, Handling, Processing and Utilization Practices
in South Ari and Malle District of South Omo Zone, Ethiopia. Research on World Agricultural Economy. 4(1), 773.
http://dx.doi.org/10.36956/rwae.v4i1.773

DOI: http://dx.doi.org/10.36956/rwae.v4i1.773
Copyright © 2023 by the author(s). Published by NanYang Academy of Sciences Pte. Ltd. This is an open access article under the Creative
Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License. (https://creativecommons.org/licenses/by-nc/4.0/).

10
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
1. Introduction
Agriculture is the lifeblood and the main economic
backbone of Ethiopia and livestock is an essential share of
the agricultural sector [1]. Ethiopia has the huge livestock
population in Africa and the estimated livestock popula-
tion in Ethiopia were 70 million head of cattle, 42.9 mil-
lion sheep, 52.5 million goats, 2.15 million horses, 10.80
million donkeys, 0.38 million mules and about 8.1 million
camels [2]. Livestock husbandry in Ethiopia is an essential
and integral sector of agriculture and rural livelihood con-
tributing about 17%-25.3% of the national gross domestic
product (GDP) and 39%-49% of agricultural GDP and
over 50% of household income [3], 12%-15% of the export
earnings and 60%-70% provide for employment [4]. The
livestock in Ethiopia is amended to different agroecolo-
gies of the highlands (mixed livestock farming system)
to the lowlands (extensive nomadic farming system) [5].
Despite the current immense potential for the dairy sector
due to vast livestock resources and promising environ-
mental conditions, the potential of the dairy industry in
Ethiopia has not been boosted [6]. Now a day, the dairy
sector has persisted constrained by multi-faceted produc-
tion and reproduction-related constraints among which
feed sources and feeding systems, poor genetic potential,
poor health follow-up, poor access to services and inputs,
low adoption and limited access to improved technologies,
marketing and other factors are listed [7]. Currently, Ethio-
pia has a deficiency of dairy products and due to this im-
ports these products from other countries [8]. Furthermore,
to increase dairy production from each animal, it is better
to increase the productivity of these animals in terms of
improved management practice because the current milk
production per cow is relatively low even with fairly some
potential for improvement. This low production potential
of milk needs to further improve the productivity of dairy
cattle through improving animal health, particularly udder
and reproductive health [9].
In Ethiopia, the huge majority of milk produced and
processed in rural areas is at the home level into milk
products such as yogurt, Butter, Ghee, and Cheese using
old-style technologies and marketed through informal
channels [10]. Diversified fermented milk products are
made and consumed in many parts of the country. As it is
known that milk is exceedingly perishable by nature, con-
sequently it requires emphasizing care starting from pro-
duction up to consumption particularly in handling during
milking, collection and succeeding storage and transporta-
tion. In the fact that, milk is fairly perishable and a high
percentage of it is consumed in a relatively natural state
due to this, milk and its products handling to preserve its
natural characteristics are very vital [11]. The less perish-
ability of milk products, the longer the smallholders can
preserve it to gain a good price and the surplus—made
during the milk production season can be also stored for
consumption during the season of the products in short
supply. In different parts of the country the milk produc-
ers add different spices to butter as a preservative way to
enhance its natural flavor for cooking [11].
Storage stability problems of dairy products are intensi-
fied by ambient temperatures and distances that producers
have to travel to bring the products to market places mak-
ing it necessary for smallholders to seek products with a
better shelf life. The first step that the product handlers
can take to ensure a high-quality product is to make as-
sured that the production and industrialized process are
should be hygienic [11]. The southern nation is the highest
and second region in milk production potential next to
Oromia region in Ethiopia [12]. Though the kinds of materi-
als utilized for milking, storage and processing differ from
place to place, about 50% of milk producers used tradi-
tional clay pots for churning milk, about 25% used plastic
vessels, 6.3% aluminum cans and 18.3% used calabash
in the southern part of Ethiopia [13]. Additionally, a clay
pot or calabash is used as a churner to make butter in the
Gurage zone [14] and also the clay pot is used for churning
milk (100%) in West Shewa Zone, Oromia Region [15].
Therefore, the aim of this study was to assess and describe
the traditional knowledge of milk production, handling,
processing and utilization practices in South Ari and Malle
district.
2. Materials and Methods
2.1 Study Areas
The study was conducted in milk-producing potential
areas in and around South Ari and Malle district (Table 1).
Table 1. Study areas.
Districts
Parameters
South Ari Malle
2
Areas 1520 km 1432 km2
850-2800 m above sea 600-1500 m above sea
Altitude
level level
Mean annual rainfall 100-1600 mm 800-1200 mm
Temperature 15 and 35°C 18-35°C
[5]
Sources: Demerew, G. .
2.2 Sampling Procedure and Data Collection
A rapid pre-study survey was conducted at the zone
level with the help of Agricultural Development Offices
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

to identify milk producers who reared dairy cattle and The sampling unit in this study was households and the
milk production potential areas in both district’s agro- sampling frame was all the six Kebeles household lists
ecological zones; for this current study South Ari and that were available in the Kebeles. Therefore, based on the
Malle district were purposively selected depend on the above formula the number of households to be sampled
potential of milk production and from the total Kebeles in was determined.
the two districts in the first phase potential sites (Kebeles)
in milk production was purposely selected with the assis-
2.4 Statistical Analysis
tance of the office of agriculture information. In the sec- The data collected were coded and analyzed qualitatively
ond phase, from the potential Kebeles six Kebeles were and quantitatively using SPSS version 23.0 (IBM, USA)
selected randomly each three Kebeles from a district. In software for all the statistical analyses to compute descriptive
the third phase, the numbers of sampled households from statistics for the variables. Descriptive statistics, like means,
each sampled site were determined from the lists of these percentages and standard error of the means were used to
households by using proportional to the size. Hence, the present the results. The Chi-square (χ2) test was used to com-
relative homogeneity of households based on their so- pare proportions of categorical variables among the districts.
cioeconomic features and living style sample was drawn A t-test was used to compare means. The differences were
through a simple random sampling technique from each considered significant at p < 0.05.
selected Kebele.
Accordingly, a total of 196 households (100 households 3. Results and Discussion
from South Ari and 96 households from Malle) represent- 3.1 Livestock Composition
ing the two districts and who had at least one dairy cow
and were interested to participate in the study were selected The study indicated that there was a statistical differ-
through a systematic random sampling procedure and indi- ence (P < 0.05) in livestock composition across study
vidually interviewed using a semi-structured questionnaire. districts (Table 2). The numbers of goats, cattle, sheep
The questionnaire was designed based on how to get infor- and chickens were higher in (P < 0.05) the Malle district.
mation related to milk production and its utilization which There was no significant difference in the numbers of
includes milk product types, methods of handling, process- cross-breed cattle reared between the two studied districts.
ing and marketing. Furthermore, to validate the survey in- The current results for the number of goats and sheep
formation a semi-structured questionnaire was prepared and were higher than Ayeneshet [17] who reported 6.66 and
information on their status was collected from key inform- 5.59 goats and sheep, respectively in North Gondar Zone.
ants or producers who were found within the two districts. The cattle holdings in the Malle district are higher than
Primary and secondary data were used for the analysis. those reported by Girma [18]. This indicates that following
Different age and gender groups such as elders, youth and goat, cattle holding per household are the second highest
women were involved in the study. proportion in the Malle district. The high numbers of cat-
tle followed by goats, particularly in the lowlands may be
2.3 Sample Size Determination due to the local culture and cattle are considered sources
of wealth and social pride, often given off as dowry; these
The basic factors to be considered to determine the ap- show cattle play various roles in the livelihood of their
propriate sample size are the level of precision required keepers [5].
by users, the confidence level desired and the degree of
variability. It is determined by using a simplified formula Table 2. Livestock species (mean ± SE).
provided by Kothari [16]. Districts
Livestock species
2   South Ari Malle Overall
n= 2 −1 +2  Cattle (local) 5.8 ± 0.3b 12.2 ± 0.9a 9.0 ± 0.5
Cattle (cross) 3.6 ± 0.3 2.5 ± 0.3 3.4 ± 0.2
where, n is the sample size for a finite population; n is the
Goats 1.7 ± 0.4b 13.6 ± 1.7a 11.2 ± 1.4
size of the population which was the number of house- b a
Sheep 3.7 ± 0.3 5.5 ± 0.9 4.4 ± 0.4
holds in the districts; p: population reliability (or fre-
Chicken (local) 3.7 ± 0.3b 5.5 ± 0.9a 4.4 ± 0.4
quency estimated for a sample of size n); p was 0.5 which
was taken for all developing countries population and p + Chicken (cross) 6.5 ± 0.5 6.6 ± 0.6 6.5 ± 0.3

q= 1. e: margin of error considered was 7%. Zα/2: normal n = number of respondents; SE = standard error; a;b = values
reduced variable at 0.05 level of significance and z 1.96. with different superscripts in a row differ significantly P < 0.05.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

3.2 Feed Source and Feeding Practices
Feed resources and feeding practices in the studied
areas are presented in Table 3. The accessibility of feed
resources in the study districts depends on the seasons. As
respondents revealed, crop residues and natural pasture
are the major sources of feed in the study areas with 55%
and 53.1% for South Ari and Malle district, respectively.
However, most of the research studies reported that natu-
ral pastures are dominant as a source of animal feed [19-21].
It has been also reported that the pasture quality has
been declining over time. This can be ascribed to bush
encroachments, overgrazing and other many anthropo-
genic factors. The majority in South Ari (75%) and Malle
(72.9%) districts have grazing land for their livestock.
This result was similar to the report of CSA [2] which
reported grazing is the major type of feed (54.54%) fol-
lowed by crop residue which is 31.13%. Nearest to the
current result, in the central highlands of Ethiopia, the
dominant sources of dairy cattle feed resources were crop
residues, hay, communal pasture, private pasture, concen-
trates and improved forage [22,23]. About 61% of South Ari
district private grazing holders and about 39.6% of Malle
district communal grazing landholders were observed as
the main sources of green fodder. The current result is also
comparable with the result of Ayeneshet [17] in the Alefa
district North Gondar Zone. Free grazing is reported to
predominate in the Malle district (63.5%). Overstocking
livestock in one place may excessively lead to overgraz-
ing and there may be fights among the bulls, particularly
during the mating (breeding) season. However, keeping cat-
tle together has numerous merits as it requires less labor, it
provides safety to the cows and their calves. Demerew et al. [5]
reported that feeding cattle through rotational grazing is
better than continuous grazing to improve natural graz-
ing pastures in terms of quantity and quality. On the other
hand, the zero-grazing feeding technique will also in-
crease productivity compared to rotational grazing [17].
3.3 Major Problems Related to Dairy Cattle Pro-
duction
3.3.1 Seasonal Feed Shortage and Supplementary
Practice
Seasonal feed shortage is a common phenomenon in
South Ari (97%) and Malle (94.8%) districts, respectively
Table 4. The main season of feed shortage in South Ari
(82%) and Malle (96.9%) districts was during prolonged
seasonal fluctuation. During the short rainy season in both
districts frequent feed shortages are common particularly
in Malle the duration of the rainy season shortens and the
drought is persistent. The common seasons of feed short-
age in South Ari district were starting from the beginning
of December to the end of February. In Malle district
feed shortage starts from the middle of December to the
end of April. The majority of the respondent in South Ari
(92%) district practiced supply of supplementary feed to
their dairy cow and while in Malle district only 33.33%
were having experience giving supplementary feed. The
rest 66.7% of respondents in this area have not practiced

Table 3. Feed resources and feeding practices (%).

Districts
Activities South Ari Malle Overall X2
Have you grazing land for your animals? 0.44
Yes 75 72.9 74
No 25 27.1 26
What type of grazing land do you use? 0.04*
Communal 27 39.6 33.2
Private 61 37.5 49.5
What is feed sources for your animals? 0.09
Natural pasture 33 39.6 36.3
Crop Residues 12 73 48.5
Both (natural pasture & crop residues) 55 53.1 81.5
Grazing/feeding methods animals? 0.00**
Stall feeding 3 0 1.5
Zero grazing (cut and carry system) 4 0 2
Open grazing (Herding) 13 63.5 38.2
Tethering 80 36.5 58.2

The values observed between the two Districts were significantly different at (X < 0.05); (X < 0.01); X2 = Pearson Chi-square.
* 2 ** 2

13
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
any supplementation. The reason for this is that the area
is infected by prolonged drought and most of the time the
animal used free grazing due to a shortage of fodder. In
South Ari district 61.9% of forage that is frequently used
as subsidized feeds was a mixture of Arkinti and Girawa
(Figure 2a), white banana leaf or Gumiza (local name)
(Figure 1b), Arkinti (local name) (Figure 1c), Girawa
(Figure 1d), coffee leaf and crop residues. Particularly,
the white banana variety is better in terms of resistance to
drought, so it is fodder for cattle. The remaining supple-
mentary feeds were improved forage (21.6%), gruel (muk)
with salt (15.4%) and Atela (1.1%) whereas in Malle
district 47.5% of respondents supplemented their dairy
cow banana leaf (white) or Gumiza (local name), crop by
product and coffee leaf (in some instance). In Malle Atela
(37.5%), improved forage (12.5%) and Gruel (muk) with
salt (2.5%) were used as supplementary feeds for the dairy
cow during the dry season.
According to respondents, Arkinti (grass type) and gi-
rawa (leaf) by mixing together and boiled or mixed with
boiling/steaming water and salt are added to it to increase
milk yield when given to dairy cattle. The reason why it
is boiled in boiling water is to reduce the bitterness of the
milk from girawa. The respondents assumed that, when
the animals eat girawa leaves it makes their blood bit-
ter so that the flies and insects do not land on them and
protected themselves. Because girawa has a bitter effect
on milk, it is given to dairy cattle in small amounts or by
mixing with Arkinti (grass type).
3.3.2 Constraints Related to Dairy Cattle Produc-
tion
According to Sintayehu et al. [24] constraints and prob-
lems related to dairy production differ from one produc-
tion system to another and from location to location. The
current findings revealed that grazing land/feed shortage
(73%) and limited access to improved breed (26%) are the
major constraints limiting dairy cattle production in South
Ari whereas feeding/grazing land shortage (52.1%) and
prolonged drought and seasonal fluctuation (44.8%) are
a b
Figure 1. Mixture of Arkinti and Girawa (a), Arkinti (c), Banan leaf (Gumiza) (b), Girawa leaf (d).
14
the main factors contributing for low production in dairy-
ing Table 4. A parallel result was noticed by Tsedey and
Bereket [13] who reported that feed shortage (71%), low
milk yield (69%) and unavailability of improved breed
(68%) are listed as the main dairy production constraint
in Dilla and Hawassa districts of Southern Ethiopia. The
study of Jiregna et al. [25] reported that feed shortage in ad-
dition to diseases and poor genetic makeup of indigenous
animals are also the main cause for lower production in
Western Oromia. Similarly, Minale and Yilkal [26] in Chen-
cha and Kucha Districts stated that feed shortage for dairy
cattle was the central problem.
3.4 Type of Milk Storage and Processing Materials
The respondents across the two districts used differ-
ent milking equipment for storage, milking and churning
(Table 5). Among the interviewed respondents 65% and
88.5% used clay pot (Figure 2a) and calabash (Figure 2b)
containers for milk storage/fermentation before process-
ing in South Ari and Malle district, respectively. A com-
parable result to the current study by Shewangizaw and
Addisu [27] was reported who used clay pots and a plastic
bucket for milk storage and fermentation in Wolayita
Sodo. Another report by Minale and Yilkal [26] showed the
majority of about 92.5% and 97% of the milk producers in
Chencha and Kucha districts used clay pots for milk stor-
age, respectively. This result disagrees with different find-
ings in the country [28,29,6] they reported that about 80%-
100% were mostly used plastic containers. This result was
also in contrast with Befekadu et al. [30] who reported all
of the respondents reported to used equipment made from
animal skin for milking in Borena zone. The finding by
Pandey and Voskuil [31] reported the use of plastic vessels
can be a potential source for milk contamination because
it is difficult to remove all residual milk from such milk
storages due to its soft nature, thus increasing the micro-
bial load of milk.
The majority of respondents in South Ari district used
clay pots (82%) and plastic baths (16%) for churning/
processing milk. This finding was parallel to Tsedey and
c d
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Table 4. Major problems related to dairy cattle production (%).

Districts
Activities South Ari Malle Overall X2
Is there seasonal feed shortage? 0.33
Yes 97 94.8 95.9
No 3 5.2 4.1
Season of feed shortage 0.01**
Dry season 82 96.9 89.3
Rainy season 18 3.1 10.7
Do you supply supplementary feed to your cows? 0.00**
Yes 92 33.3 63.3
No 8 66.7 36.7
What are the feeds you supplemented? 0.00**
White banana leaf & Coffee leaf, Crop by product, Arkinti and Girawa 61.9 47.5 54.7
Gruel (muk) with salt 15.4 2.5 8.9
Improved forage 21.6 12.5 17.0
Atela 1.1 37.5 19.3
What are the major problems related to milk production?
Feed or grazing land shortage 73 52.1 62.8
Prolong drought and seasonal Fluctuation 1 44.8 22.4
Diseases 0 3.1 1.5
Access to improved breed 26 0 13.3
* 2 ** 2 2
The value observed between the two Districts significantly different at (X < 0.05); (X < 0.01); X = Pearson Chi-square.

Bereket [13] who reported that about 50% of dairy produc- 72.9% of respondents processed only yogurt, butter, and
ers used clay pots for churning and 25% plastic vessels buttermilk and the remaining 26% processed only butter
in southern Ethiopia. The other reports showed that clay for marketing. In Malle culture, dairy products such as
pot or calabash is used as a milk churner to make butter in butter, buttermilk, and yogurt (rarely) are used for home
the Gurage zone [14]. In South Ari, the plastic pitcher was consumption while, cheese, whey and fresh milk are not
used for milking and the plastic bucket was used for stor- commonly used or consumed at home; the study was able
age and transportation of milk sales. In the Malle district to notice that no dairy product is sold in the market except
almost all respondents (100%) used calabash for milk butter in Malle due to cultural restriction. According to the
churning/processing and clay and plastic containers are Malle community perception selling raw milk and cheese
not commonly used this result is comparable with Sisay [32]. is considered as shame and they believe that selling these
A comparable report was noticed by Onyango et al. [33] products reduces fertility, brings drought and is a manifes-
who reported the dried calabash, used as fermentation tation of poverty.
gourd. This result goes against the findings of FAO [15]
who reported that the clay pot was used for milk churning
and fermented milk (100%) in West Shewa Zone, Oro-
mia Region. The present result was also consistent with
the reports of Tigist [34] she observed Jerrycan, Calabash
(Qill) and Mazzican were the materials used for milk-
ing and milk handling. A significant number (95%) of
the respondents in South Ari district processed different
milk products and used them for home consumption and
marketing (yogurt, butter, buttermilk, cheese, and whey).
Similar findings reported by Abraha [35] find that in the
Southern Highlands of Tigray raya, 93.6% fresh milk, a b
yogurt, buttermilk, butter, whey and cheese were among Figure 2. The two major churning materials clay pot (a)
the common dairy products. Whereas in the Malle district, and calabash (b).

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Milk processing reason different from district to district
even from place to place (Table 4). In South Ari 79% of
respondents practice milk processing reason to increase
household income via sales of processed products, 10% of
respondents processed milk to have a variety of products,
9% of respondents assume that processed milk gives better
income than fresh milk sales, the rest 2% processed milk
for home consumption. The milk processing reason for this
finding is comparable with the result of Befekadu et al. [30]
that 72.73% of respondents in Borena zone processed the
milk to diversify the products and for income generation.
The result is also similar to Ayantu [36] who reported that
milk is processed to increase the household’s income, to
diversify the product type for home consumption and to
increase the shelf-life of the dairy products in Delbo water
shed Wolayta zone. In Malle district, 62.5%, 28.1% and
9.4% of respondents’ milk processing reason to have a va-
riety of products, to increase household income via sales of
processed products and processed milk give better income
than fresh milk sales, respectively. This result agreed with
Abraha [35] who reported that reason for processing milk is
to diversify the products. Unless the milk producers could
not produce a diversity of milk products, they could not ac-
quire the expected value-added milk products.
3.5 Milk Processing and Utilization Practices
The system of milk production, milk processing and
utilization varies according to the tribes and culture of
the region. This makes the indigenous knowledge of milk
production, milk processing and utilization practice pecu-
liar to the specific area [37,30]. Cows are the foremost source
of milk and which is the focus for processing many prod-
ucts in Ethiopia [38]. In the study districts, milk production
and processing are carried out most often in the family
households, and all operations in milk processing are done
manually. Processing milk into varying products is an im-
portant measurement for the preservation of the product as
a source of income and nutrients for consumption. Abebe
et al. [38] stated that, milk is traditionally preserved into dif-
ferent products like butter, ghee and cheese. Meanwhile,
preserved milk and its products are more stable than raw
milk due to they are more acidic and comprise moisture.
Befekadu et al. [30] indicated that milk that is naturally fer-
mented is the base for processing the milk into more shelf-
stable and, consumer preferences for fermented dairy
products. According to Ethiopian culture, the common
milk products that are produced in these study districts are
raw whole milk, yogurt (Ergo), butter (Kibe), buttermilk
(Arera), cheese (Ayib) and whey (Aguat). Traditional fer-
mented milk products observed in this study were similar
to Tsedey, A.[13] , Befekadu, T.[30], Kefyalew, G.[39]. Milk
processing and utilization of these products varied in dif-
ferent parts of the country; from one area to another area
and from household to household based on experience,

Table 5. Type of milking container, processing and storage materials in the study districts (%).
Districts
Activities
South Ari Malle Overall X2
What are milk storage materials before processing? 0.00**
Clay pot 65 7.3 36.7
Metallic containers 30 0 15.3
Plastic materials or improved churner 5 4.2 4.6
Calabash 0 88.5 43.4
Which milk product you processed? 0.00**
Yogurt 2 0 1
Cheese 1 0 0.5
Butter 2 26 14
Yogurt, butter, butter milk 0 72.9 36.45
Yogurt, butter, butter milk, cheese, whey 95 1 48.05
What is your reason to process milk? 0.00**
To increase household income via sales of processed product 79 28.1 53.55
Preference for home consumption 2 0 1
Processed milk gives better income than fresh milk sales 9 9.4 9.2
To have variety of product 10 62.5 36.25
What kind of milk churning materials you used? 0.00**
Clay pot 82 0 41.8
Calabash 2 100 50
Plastic bath 16 0 8.2
* 2 ** 2 2
The value observed between the two Districts significantly different at (X < 0.05); (X < 0.01); X = Pearson Chi-square.

16
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
purpose, cultural reason and preference. Milk processing
is typically deliberated to eliminate water from milk and/
or minimize the moisture content of the products [38].
Raw milk (whole milk): This is milk that is milked or
collected directly from the cow before being coagulated.
In the study areas, especially in South Ari district raw
milk was used as a source of income by selling it to city
dwellers of milk suppliers. Others earn income by renting
milk to their neighbors. In South Ari, raw milk is used as
a supplement for children and orphaned pets (calf, kid and
lamb). Raw milk is collected and comes from early morn-
ing before 8 a.m. or early evening after 6 p.m.
Yogurt (Ergo): The milk that is milked from the cow
turns thick (naturally fermented) after a period of hours
and days through the bacterial process (Figure 3). Accord-
ing to Desalegn [40] yogurt is the most common tradition-
ally prepared fermented milk product in Ethiopia and yo-
gurt is prepared through the natural fermentation of milk
under the ambient temperature without the addition of
appetizer cultures using traditional vessels under non-hy-
gienic. Yogurt is nutritious, and palatable and it comprises
all the milk components in a concentrated form. In the
study areas, when the farmer is tired after work it gives
great strength and it can be also used as a stable food for
injured persons and children. In many Ethiopian parts,
culturally yogurt is an important part of the traditional diet
and is considered a big invitation when a distinguished or
special guest received it at a home. It is further processed
into more stable fermented milk products. According to
respondents, preparing yogurt for home consumption can
take two to three consecutive days, but it should be kept
for three to six consecutive days to prepare other milk
products like cheese and butter. The present result was
equivalent to the result of Befekadu et al. [30] who reported
96% of the respondents described that the yogurt fermen-
tation time for immediate usage is three days and the rest
a b
Figure 3. Locally fermented Yogurt ready for agitation in South Ari and Malle district.
for long-term preparation takes six days. There is no sure
length for the fermentation it is the visual appreciation
of the gel that determined the finish of the processing [41].
The variation of fermentation time to prepare yogurt de-
pends on the local environmental condition, on its purpose
whether it is for home consumption or for the production
of other products and hygiene of milking or storage equip-
ment. In warmer climates, milk will curdle faster and in
colder climates, it may take longer time to be curdled. If
it is used for home consumption it needs a short day but,
if it is to get other products it will be kept for a day. On
the other hand, if milk storage is regularly cleaned and
smoked it helps the milk to ferment quickly. To increase
the taste of the yogurt and to improve its palatability the
practice of adding local leaves called Tena Adam has been
seen in many study areas.
Butter (Kibe): This is the result of the churning of
fermented milk after days of raw milk accumulation. The
fresh milk that is milked every day is added to the previ-
ously curdle milk until the required amount is accumulat-
ed. Butter can be extracted by hand pushing or rotating the
churn on its base from 30 to 64 minutes. As respondents
stated, the milk churning time to make butter would be de-
termined by different factors such as the amount of milk,
type and size of churner, cleanliness of churner, breed
of cow and temperature of the local environment. The
churning equipment used to churn the curd to make butter
varies from place to place. After churning is completed,
the butter grains are collected together by hand finally
they wash the butter with cold water. The reason why it
is washed with water is so that the butter become hardens
and thickens. The other reason for adding water to the
butter is if want it to last for a long time, particularly dur-
ing fasting. This result was consistent with the reports of
Befekadu et al. [30]. Apart from being a source of income
and its nutritional value, butter has many functions in the
17
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
rural community. Among its benefits, it is used for cook-
ing food in the form of Ghee (adding it to the stew), hair
lubrication/cosmetics (hair cream) and remedy for head-
aches. Ghee is a very popular dairy product for making
traditional chicken stew (Ethiopian doro wot) in Ethiopia,
particularly during New Year and other festivals. Ghee is
the butter-fat prepared chiefly from butter. As observed in
the study areas, before processing butter different spices
are added to improve its flavor and to add market or con-
sumer attractive appearance of yellowish color.
Buttermilk (Arera): This is made after the butter is
removed or separated from churned milk. It is a slightly
thick milk product that remains after butter making. It
is used in different forms for home consumption either
directly or processed in to other cooked products (cheese
and whey). Most of its characteristics and tasty are alike
to those of ergo. According to Abebe et al. [38], Arera con-
tains 91.5% moisture, 3.1% protein, 1.4% fat, 3.4% carbo-
hydrate, and 0.6% ash. In both districts, it was possible to
see that it is the most preferred milk-type product in both
districts. It is often used as the main food in the home
with a large family and it is often eaten with Fosesi (locally
favorite food). On the other hand, in South Ari district
cheese is sold, instead of using it as it is they convert it
into cheese and use the cheese for market and domestic
consumption. Zelalem and Inger [42] stated that buttermilk
is directly consumed within the family or is changed to
cheese (Ayib).
Cheese (Ayib): This is prepared by boiling or heating
the remaining buttermilk after the butter is separated. The
buttermilk is cooked or heated on a clay pot and kept for
a few minutes, in order for the quality of the cheese to be
good the heating fire should be moderate and not too much.
For the making of this traditional Ethiopian cheese (Ayib),
buttermilk is heated by a clay pot on a low fire to about
50 °C [43]. As stated by FAO [44], an average of 8 liters
of Arera are required to yield one kilogram of Ayib and
which having on an average of 20.42% total solid, 2.25%
fat and 1.23% ash and an average moisture percentage be-
ing 79.58%. In South Ari, cheese is highly sought by con-
sumers during the festivity season, so it is sold and used
as an income source for the family just like butter. Ac-
cording to the culture of Malle community selling cheese
is considered shameful, so the community does not have a
culture of selling or buying cheese this cheese is not pre-
pared by the community nor is it sold to the market. Some
respondents have experience in adding spices to give the
cheese a desirable aroma and extend its shelf life. This
is applied after the cheese was drained sufficiently. The
spices mainly used were Ruta chalepensis (Tena Adam),
Zingiber officinalis (Zigibl) and Turmeric (Erd).
18
Whey (Aguat): This is the final by-product of milk
that remains after the cheese has been removed from the
heated buttermilk. It is the liquid form that leftovers after
most of the fat and the protein in the milk are detached
during the cheese making [43]. In South Ari whey have
many functions which are used as food for humans and
supplementation to animals such as milking cow, and
calves and plowing ox by mixing with other feedstuff. As
stated by Abebe et al. [38], it holds important nutrients such
as proteins, minerals and carbohydrates.
3.6 Butter Making Practices
Butter-making and manipulation practices are present-
ed in Table 6. In South Ari district 68% and 32% of the
respondents processed and make butter from indigenous
and cross-breed cattle, respectively. In Malle district,
91.7% and 8.3% of households processed and make butter
from indigenous and cross-breed cattle respectively. The
average days of raw milk fermentation before churning in
South Ari and Malle district were 4.2 ± 0.1 and 2.9 ± 0.0
days, respectively. Approximate this result was reported
by [37,6] milk deposited to produce fermented milk for three
and five days in Mekelle milk shed, northern Ethiopia and
Borana plateau, respectively. The average butter-making
time from starting to finishing up was 1.05 hours (63.4 ±
1.8 minutes) in both districts. The average churning time
in the current study is lower than the result of Befekadu
et al. [30] in Borena plateau of Ethiopia which indicated 1.2
hours (72 minutes). In South Ari district 76%, 22%, and
2% of the respondents make butter in the evening, after-
noon and morning, respectively (Figure 4a). In the mid
and highland areas of the country, it is common to churn
milk in the evening which is used to participate all the
family members in churning when get together after work.
On the other hand, in Malle district, almost all (99%) of
respondents make butter in the morning (Figure 4b) and
only 1% in the evening. It is not possible to churn milk
and make butter during the daytime in the lowland areas
because butter becomes melts. Because the environment
is warm enough in the daytime to churn in the evening the
heat of the day does not dissipate, so the butter melts or
mixes with milk butter.
The amount of milk fermented and butter produced
from this fermented milk is a significant difference (P <
0.05) across districts. This variation may be due to feed-
ing availability and other management practice between
the districts. From indigenous cows, the average amount
of milk churned in one session (liter) and the average
amount of butter produced from all this fermented milk
(kg) was 7.3 ± 0.3l liters and 0.6 ± 0.0 kg butter in South
Ari district. The amount of milk fermented for one churn
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

a b
Figure 4. Butter preparation practice in South Ari and Malle district.

in this study was lower than the result of Befekadu et al. [30]
who reported the average volume of milk processed at
each processing time is 7.82 liters in Borena zone. On the
other hand, from the cross cow, the churned milk amount
and butter produced from this fermented milk in this
district were 6.9 ± 0.5 liters and 0.7 ± 0.0 kg butter. In
Malle district, the result showed that, the average amount
of milk churned in one session (liter) and the average
amount of butter produced from all this fermented milk
(kg) from indigenous and cross cows were 5.7 ± 0.1 liters;
4.6 ± 0.1 liters and 0.4 ± 0.0kg and 0.4 ± 0.0 kg milk and
butter, respectively. This milk amount difference may be
the feeding behavior and feed conversion efficiency of the
two breeds. On the other hand, it is an area where frequent
drought occurred, due to this it may not suitable for hy-
brid cattle. The purpose of the processing of butter across
the two districts was a statistical difference difference
(X2 < 0.05). In South Ari district, most (75%) of butter is
used for sale and some for consumption; most (20%) but-
ter is used for consumption and some for sale; 3% used all
butter for home consumption and 2% used butter for the
purpose of sale only. On the other hand, in Malle district,

Table 6. Amount of fermented milk churned and amount butter from this fermented milk at a time (%).
Districts
Activities
South Ari Malle Overall X2
Which cow breed do you use to process butter? 0.00**
Indigenous 68 91.7 79.6
Cross 32 8.3 20.4
At what time do you make butter? 0.00**
Morning 2 99 49.5
Afternoon 22 0 11.2
Evening 76 1 39.3
Butter making or churning time (minute) 62.9 ± 2.3 64.2 ± 2.7 63.4 ± 1.8
a b
Raw milk accumulation (day) 4.2 ± 0.1 2.9 ± 0.0 3.6 ± 0.0
Milk amount churned and butter product from local cow
Amount of milk churned in one session (liter) 7.3 ± 0.3a 5.7 ± 0.1b
a
Amount of butter produced from all this milk (kg) 0.6 ± 0.0 0.4 ± 0.0b
Milk amount churned and butter product from cross cow
Amount of milk churned in one session (liter) 6.9 ± 0.5a 4.6 ± 0.1b
a
Amount of butter produced from all this milk (kg) 0.7 ± 0.0 0.4 ± 0.0b
Purpose of processing butter? 0.00**
All for sale 2 8.3 5.1
All for home consumption 3 0 1.5
Most of it for sale and some for consumption 75 86.5 80.6
Most of it for consumption and some for sale 20 5.2 12.8

The value observed between the two Districts significantly different at * (X2 < 0.05);** (X2 < 0.01); X2 = Pearson Chi-square, a,b =
values with different superscripts in a row differ significantly P < 0.05.

19
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

86.5% of respondents used butter for the purpose of most
of it for sale and some of it for consumption the rest 8.3%,
5.2% used butter all for sale and most of it for consump-
tion and some for sale, respectively.
3.7 Type of Milk and Milk Product Marketing
Types of milk product selling practices by the house-
holds are presented in Table 7. Milk is naturally perish-
able and it needs special handling to ensure better quality
and extended shelf-life. Due to perishability and special
requirement, milk and its products in the country are
marketed at different places in safe and unsafe ways [13].
In South Ari district, 65% and 69% of households have
experience selling raw milk and cheese; the rest 35% and
31% of respondents do not have the practice of selling
it, respectively. Similar to this study Getabalew et al. [45]
noticed that in Ethiopia, fresh milk, butter, fermented
whole milk (ergo), cottage cheese and buttermilk are sold
through both formal and informal marketing channels.
Regarding cheese marketing the current finding agreed
with Tesfaye [46] who stated that household was not selling
traditional cottage cheese (Ayib) in all the surveyed areas
of Metema district rather it was consumed by the family
members and given to calves and pet animals together
with the whey (Aguat). The study revealed that, 96% and
100% of the household experienced selling of butter in
South Ari and Malle district, respectively. In contradiction
to the current result Ayeneshet et al. [17] noticed that the
majority (76.0%) of households’ in Alefa district had no
practice of selling milk and its products in North Gondar
Zone. Similarly, Abebe et al. [38] in Gurage Zone noted
that, cultural restrictions (taboos), inefficient milk produc-
tion and poor market access were the main constraints to
selling milk products.
About 72% and 95% of surveyed households have not
experienced adulteration in South Ari and Malle district,
respectively. The remaining 28% in South Ari and 5% in
Malle district confirmed that they have practices of adul-
teration. Among these to be adulterated milk products
were raw milk with water, butter with banana, cheese and
yogurt. This result agreed with the report of Mekonen and
Mengistu [47] who reported that 76.7% of milk samples
collected from farmers around Bair Dar were free from
adulterants. In the same way Asrat and Zelalem [48] report-
ed that about 95% of the respondents in Boditti town and
its surrounding areas agreed that there is an adulteration
of milk and milk products. In line with this study Amistu
et al. [49] noticed that the major type of adulteration re-
ported by consumers was 67 and 33% of the butter they
purchase is adulterated with banana and ‘sheno lega’ re-
spectively in Damot Woyde Woreda, Southern Ethiopia.
Adulteration is often implemented to purposely reduce
the quality (increase the quantity) of milk to gain profit
dishonestly. It is the intentional substitution, addition and
abstraction of substances that adversely affect nature,
substances and quality of milk and its products [50]. Adul-
teration is also the central medium to reduce the nutritive

Table 7. Types of milk products sold by the respondents in the study area (%).
Districts
Activities
South -Ari Malle Overall X2
Do you sale fresh milk? 0.00**
Yes 65 0 33.2
No 35 100 66.8
Do you sale butter? 0.06
Yes 96 100 98
No 4 0 2
Do you sale cheese? 0.00**
Yes 69 0 35.2
No 31 100 64.8
Is there adulteration practice in the communities? 0.00**
Yes 28 5 16.5
No 72 95 83.5
Methods of transportation to sale the products? 0.00**
On foot 67 95.8 81.1
Through vehicle 6 0 3.1
Motorbike 27 4.2 15.8
* 2 ** 2 2
The value observed between the two Districts significantly different at (X < 0.05); (X < 0.01); X = Pearson Chi-square.

20
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
value of milk due to the dilution effect and which is di-
rectly affecting the further processing of milk to produce
other dairy products such as yogurt and cheese [50].
Nearly 67% and 95.8% of respondents’ milk delivery
and transportation to sell milk products were by foot in
South Ari and Malle district, respectively. The rest 27% in
South Ari and 4.2% in Malle used motorbikes for trans-
portation to sell their products. A similar study by For-
tunate [51] revealed the most common means of transport
used by farmers in delivering milk was on foot in Tanza-
nia. In the rural areas of the country, the milk production
system accounts for about 97% of the total milk production
in the country where it is difficult to transport the raw milk
to the marketing places due to poor infrastructure [52]. The
current findings are also in line with the view of Sintayehu
et al. [24] and Yousuf [53] they reported that the distance from
market centres mainly to urban sites had a major prohibiting
effect on producers from selling raw milk to consumers of
urban resident and other dairy producers who live a distance
from urban centres it could fetch a comparatively lower sell-
ing price than farmers in close to urban areas. For increasing
milk production the provision of assured marketing channels
is the primary condition that is sufficiently profitable to milk
producers [54].
4. Conclusions and Recommendation
The study was conducted in South Ari and Malle dis-
trict of South Omo Zone, to assess and describe the indig-
enous knowledge of milk production, handling, processing
and utilization practices. The majority of the respondents
in South Ari (75%) and Malle (72.9%) districts have their
own grazing land. Seasonal feed shortage is common in
South Ari (97%) and Malle (94.8%) districts, respectively.
About 92% in South Ari district practiced supply of sup-
plementary feed and 33.33% in Malle district had the ex-
perience of giving supplementary feed for their dairy cow.
Grazing feed shortage (73%) and limited access to im-
proved breed (26%) in South Ari; and grazing land short-
age (52.1%), prolonged drought and seasonal fluctuation
(44.8%) in Malle were identified as constraints of dairy-
ing. Major milking and milk-handling utensils were clay
pot (65%) and calabash (88.5%) in South Ari and Malle
district, respectively. Milk is typically stored to produce
ergo for either short-term (three days) fermented milk
for home consumption or making butter and production
of other products longer-term (up to six days) fermented
milk. The milk products are separated by traditional hand
churning. For making butter, fresh milk is collected over
a period of three to six days in a traditional clay pot ves-
sel. About 95% of the respondent in South Ari processed
different milk products such as yogurt, butter, buttermilk,
cheese and whey. All these milk products were used for
home consumption and marketing. However, in Malle
district, 72.9% of respondents processed only yogurt,
butter, and buttermilk and 26% processed only butter for
marketing. Therefore, it is concluded that supporting the
dairying extension services in the areas via enhancing the
input provision system for dairy producers is vital. More
efforts are required to improve milking, milk handling and
processing by creating awareness and standard utensils
utilization. The majority of the dairy producers followed
inadequate milk sanitary practices hence the milk sanitary
practices of the study areas should be improved.
Funding
This research activity was conducted funds from the
Pastoral, Agro-pastoral and special support requiring
regions Research and Capacity building (PAP) and Ethio-
pian Institute of Agricultural and Research (EIAR) col-
laboration with Jinka Agricultural Research Center (JARC)
to improve livestock through assessing dairy husbandry
practices in South Omo.
Acknowledgements
This research has been made possible through the fi-
nancially support of Pastoral, Agro-pastoral and special
support requiring regions Research and Capacity build-
ing (PAP) and Ethiopian Institute of Agricultural and
Research (EIAR) collaboration with Jinka Agricultural
Research Center (JARC). Sincere appreciation also goes
to the South Ari and Malle district dairy cattle keeper.
Data Availability
All data are available in the main text or in the support-
ing materials, and raw data can be obtained from the cor-
responding author upon request.
Conflict of Interests
The authors have not declared any conflict of interests.
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[49] Amistu, K., Afwork, Z., Meshesha, D., 2016. Assess-
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Research on World Agricultural Economy

https://ojs.nassg.org/index.php/rwae

RESEARCH ARTICLE
A Multi-group Analysis of Gender Difference in Consumer Buying
Intention of Agricultural Products via Live Streaming
Bing Zhu1 Ping Xu2* Ke Wang2
1. Department of Marketing, Assumption University, Bangkok, 10210, Thailand
2. Department of Educational Psychology, Guangzhou Sport University, Guangdong, 510500, China

Abstract: This study tries to understand the determinants of Chinese consumers’ purchase behavior and reveal the role
of gender in shaping consumers’ buying decisions for agricultural products from live-streaming platforms. For this
purpose, an online survey was carried out to collect data in Southern China. Partial least squares structural equation
modeling (PLS-SEM) was employed for path analysis and multi-group analysis. The results confirm the substantial
influences of consumer attitude, subjective norms and perceived behavioral control on consumer buying intention. Next,
gender difference only exists concerning the effect of perceived behavioral control on consumer intention. However, the
gap between male and female consumers on this point is small. Furthermore, as each factor affects consumers’ purchase
intention differently, corresponding implications are provided.

Keywords: PLS-SEM; Permutation test; Live-streaming commerce; Gender differences; Agriculture marketing

1. Introduction
Agricultural products refer to “any agricultural com-
modity or product, whether raw or processed, including
any commodity or product derived from livestock for
human or livestock consumption” [1]. Generally, fresh
products like vegetables and fruits are easily perishable [2].
In this case, an effective agricultural product supply chain
is critical. For example, if perishable products can be
sold and quickly delivered to consumers in the shortest
possible time, the losses of farmers can be significantly
reduced [2]. Hence, live-streaming commerce plays a cru-
cial role. Yu and Zheng (2022) [2] defined live streaming as
“an emerging online social and commerce tool”, and live
streaming commerce emerged when many anchors used
live streaming as a means of real-time interaction with
customers to sell products [3]. Therefore, live-streaming
commerce is deemed the latest trend in e-commerce [4,5].
The emergence of COVID-19 has given birth to new

*Corresponding Author:
Ping Xu,
Department of Educational Psychology, Guangzhou Sport University, Guangdong, 510500, China;
Email: xupprivate@hotmail.com

Received: 26 December 2022; Received in revised form: 11 February 2023; Accepted: 15 February 2023;
Published: 27 February 2023

Citation: Zhu, B., X u , P., Wang, K., 2023. A Multi-group Analysis of Gender Difference in Consumer Buying
Intention of Agricultural Products via Live Streaming. Research on World Agricultural Economy. 4(1), 789. http://
dx.doi.org/10.36956/rwae.v4i1.789

DOI: http://dx.doi.org/10.36956/rwae.v4i1.789
Copyright © 2023 by the author(s). Published by NanYang Academy of Sciences Pte. Ltd. This is an open access article under the Creative
Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License. (https://creativecommons.org/licenses/by-nc/4.0/).

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
business models and formats, such as “live streaming of
agricultural products” [6], which stands out among many
agricultural product online marketing models with its unique
advantages, showing huge development potential [7]. Live-
streaming commerce has effectively activated the stale-
mate in the sales of agricultural products in the region and
has been widely practiced by farmers and concerned by
society in China. The sales of agricultural products on the
live broadcast e-commerce platform have skyrocketed,
which not only lifted many farmers out of poverty and
promoted the development of the local economy but also
popularized knowledge about agriculture and agricultural
products to the public [8]. For instance, the sales of agricul-
tural products achieved 6 billion yuan, and over 500 coun-
ty magistrates became live-streaming anchors, assisting
farmers in increasing their income [6,9]. More interestingly,
as revealed by the “2022 China Agricultural Products E-
commerce Development Report”, digital transformation
and innovation become the new hot spots for the expan-
sion of agricultural products in 2021, which has triggered
different ways to promote agricultural products in online
settings [10]. In this context, the prevalent live streaming
of agricultural products will likely shorten the distance
between farmers and the market and allow the unique
agricultural products in rural areas to be sold farther and
better. In addition, the promotion cost of live streaming is
relatively low. Due to market supply and demand informa-
tion asymmetry, many unique agricultural products often
need to be discovered. Compared with advertising, live
streaming has lower operating costs and broader coverage
and is not limited by the market, time, and space. There-
fore, live streaming has gradually become an essential
means of agricultural product sales [11].
As an emerging trend of marketing, live streaming
commerce is still in its’ infant stage [12], which conse-
quently has attracted attention from mainstream scholars
who have emphasized consumer behavior in a general
context, including Sun et al. (2019) [13], Sohn and Kim
(2020) [14], Wongkitrungrueng and Assarut (2020) [15], and
Molinillo et al. (2020) [16], etc. However, two research
gaps require more attention. First, there still needs to be
more evidence to reveal how consumers respond to live
streaming in the context of agri-food marketing [17]. The
use of live-streaming for agricultural product marketing is
a relatively new form to promote agriculture in the digital
age, and research on how consumers respond to this type
of agricultural product marketing is still limited. Further
research is needed to understand the effectiveness of live
streaming as a marketing tool for agricultural products and
to identify the most effective strategies for reaching con-
sumers through live streaming. Second, it is meaningful to
26
discover the role of gender in the live-streaming setting.
Gender is a universal characteristic independent of culture
and time period [18]. Generally, male and female consumers
have different motivations, views, reasons, and concerns
about shopping [19]. Various studies [20-22] have revealed
the effect of gender in e-commerce; still, similar studies
are limited to live-streaming commerce [23]. Thus, further
research is needed to understand the impact of gender on
consumer behavior and purchase decisions in the context
of live commerce. This information may be useful to
marketers and businesses looking to effectively target and
engage audiences through live streaming. For this reason,
we intend to apply the theory of planned behavior (TPB)
to reveal how consumers’ attitudes, subjective norms, and
perceived behavior control influence consumers’ buying
intention for agricultural products in live streaming. Fur-
ther, we attempt to understand how male and female con-
sumers react to buying agricultural products through live-
streaming platforms.
This study is structured as follows. The literature re-
view will be discussed in the second section followed by
the research method in the third section and the findings
in the fourth section. Discussion and conclusion are pro-
vided in the fifth section, and the managerial implication
is discussed in the sixth section.
2. Literature Review
2.1 Theory of Planned Behavior (TPB)
The theory of planned behavior developed by Ajzen
(1991) [24] is an essential social psychological model that
aims to illuminate differences in the voluntary behavior of
consumers [25]. TPB model has been widely acknowledged
and applied because of “its strong predictive power and
high validity” [26].
In the TPB model, individual behavioral intention is
directly affected by individual attitude, subjective norm
(SN), and perceived behavioral control (PBC) [24,27]. As
an endogenous variable, intention implies an individual
consumer’s readiness to engage in a specific behavior,
such as purchasing [28,29]. According to Roseira’s study [30],
the higher level of purchase intention that consumers
generate, the more possibility that consumers will make
an actual purchase. Thus, purchase intention is deemed
the most critical step for the food industry [2]. The first an-
tecedent is the personal attitude, a willingness generated
from past experience that influences a person’s response
to a particular object or situation [27,31]. Regarding attitude
toward a particular behavior, it is about a person’s assess-
ment of performing a particular behavior [26]. If an indi-
vidual possesses a positive attitude towards a behavior, his
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
or her intention to engage in a particular action tends to be
more robust [24,32]. Previous studies, including Gidaković
et al. (2022) [33], Shihab and Putri (2018) [34], and Singh &
Banerjee (2018) [35] have also proved the significant role
of attitude in influencing consumer purchase intention.
The second antecedent is perceived behavioral control,
which relates to “personal control over the internal re-
source, such as confidence, skills or ability” [36]. Perceived
behavioral control manifests how difficult or easy it is to
perform a behavior [24,37]. Various studies have confirmed
perceived behavioral control’s significant role in predict-
ing an individual’s behavioral intention [37-39]. For the
third antecedent, the subjective norm is described as the
perception of general social pressure [36] regarding how
behavior is viewed by references such as friends, parents,
relatives, and colleagues [26,27]. Prior studies have shown
the substantial effect of subjective norms on behavioral
intention [37,40,41]. Accordingly, the following hypotheses
are developed:
H1: Attitude towards buying agricultural products sig-
nificantly affects purchase intention.
H2: Perceived behavioral control significantly affects
purchase intention.
H3: Subjective norm significantly affects purchase in-
tention.
2.2 Gender
Gender strongly influences consumers’ cognitive thinking,
emotional feelings, and purchasing behavior [42-44]. Gender
differences are assessed based on a constellation of factors
that crucially affect consumer behavior, including “per-
ception, attitude, motivation, preferences, perceived risk
and satisfaction” [45]. More importantly, gender is associat-
ed with psychological and sociocultural behavioral traits
in men and women [46,47] who present different states when
processing information and making decisions [48]. For in-
stance, women tend to be influenced by the surrounding
environment [49]. Women spend more time shopping and
evaluating relevant product information [50,51] than men,
who perceive shopping as a mission and pay attention to
the items they need [52]. Thus, to develop more accurate
strategies and campaigns to effectively and efficiently re-
veal the preferences of male and female consumer groups,
an exploration of the similarities or differences between
the two consumer groups becomes desirable [46].
In recent years, gender differences have prevailed
in understanding consumer behavior and attitude in the
e-commerce milieu. There are significant gender differ-
ences in cognitive, affective, and behavioral attitudes
toward online shopping [19], online purchase intention [53],
and loyalty intention [54], etc. Notably, gender serves as
a moderator in various previous studies. For example,
gender is treated as a moderator when applying UTAUT
and UTAUT2 [21,55]. Gender moderates the association be-
tween consumers’ online shopping motivations and their
shopping intentions [56], between consumers’ perceptions and
trusts to trigger users’ intention to use electronic payment [57],
and between consumers’ perceived benefits and online re-
purchase intention [58]. However, the impact of gender on
live e-commerce remains to be explored. For this reason,
this study focuses on gender differences in consumers’
buying intention of agricultural products in live streaming.
Consequently, the following hypotheses are developed:
H4: The strengthening of the relationship between at-
titude towards buying agricultural products and purchase
intention will differ between male and female consumers.
H5: The strengthening of the relationship between per-
ceived behavioral control and purchase intention will be
different between male and female consumers.
H6: The strength of the relationship between subjective
norm and purchase intention will vary between male and
female consumers.
3. Research Design
The data collection was conducted online in Southern
China from January to April 2020. G*Power was applied
to verify the least possible sample size for the study. The
results showed that at least 77 respondents should be re-
cruited to ensure the study had a power level of 80% with
a small effect size of 0.15 at a significant level of 5%.
Eventually, 400 sample sizes were obtained with valid
information; thus, the sample size of this study was con-
sidered sufficient for further data analysis.
Regarding questionnaire design, there are four items
measuring attitude towards buying agricultural products,
four assessing subjective norm, three measuring perceived
behavior control, and three evaluating purchase intention.
A 5-point Likert scale developed by Rensis Likert [59] was
applied to evaluate to what extent respondents agree or
disagree with a given statement [60]. The items were derived
from the manual “Constructing a Theory of Theory of
Planned Behavior Questionnaire” developed by Ajzen (htt-
ps://people.umass.edu/aizen/tpb.html) (see also Xu et al.,
2022) [28].
More importantly, partial least squares structural equa-
tion modelling (PLS-SEM) was utilized in this study. In
the study of Xu et al. [28], the impacts of consumer atti-
tudes, subjective norms, and perceived behavioural con-
trol on consumers buying intention were tested by struc-
tural equation modelling to provide a general scenario
of consumers’ responses to live shopping. In this study,
based on existing findings, we not only further examined
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

the structural relationship between the proposed structures
via PLS-SEM, but also specifically examined multigroup
analysis based on permutation tests [61]. Consquently,
more accurate and up-to-date consumer information will
be obtained, such as how are male and female consumers
similar or different in live shopping, particularly for ag-
ricultural products. Firms and scholars can develop more
precise market strategies for different customer groups in
more detail. For this purpose, Partial Least Squares Multi-
group Analysis (PLS-MGA) was conducted.
4. Results
4.1 Evaluation of Measurement Model
Construct reliability and validity
Table 1 shows this study’s construct reliability and va-
lidity, consisting of the factor loading, Cronbach’s alpha,
Dijkstra–Henseler’s rho_A, Composite Reliability, and
Average Variance Extracted (AVE).
Regarding factor loadings, all loading values are more
significant than 0.7. Also, the AVE values of all constructs
are more than the cutting-off point of 0.5 suggested by
Hair et al. (2017) [62]. Therefore, the convergent validity
is confirmed. Next, Cronbach’s alpha values varied from
0.827 to 0.861, over 0.7 advised by Nunnally and Bern-
stein (1994) [63]. As for composite reliability (C.R), all values
are more significant than a recommended value of 0.7 [64].
Besides, Dijkstra–Henseler’s rho_A [65] is a vital measure
of internal consistency reliability for PLS-SEM, and all
values should be greater than 0.7 [66,67]. Hence, since all
values fulfil the criteria, internal consistency is confirmed.
Discriminant validity
Heterotrait-Monotrait (HTMT) ratio of correlation is
applied to evaluate discriminant validity [66]. HTMT is “the
ratio of the between-trait correlations to the within-trait
correlations” [62]. The thumb of rule is that if the value of
HTMT is above 0.9, we failed to verify the existence of
discriminant validity [62,64,67]. Table 2 reveals that all values
of HTMT are smaller than 0.9; consequently, discriminant
validity is proved.
4.2 Evaluation of Structural Model
Table 3 shows the outcomes of hypothesis testing in
which all the hypotheses are supported. Subjective norm
(β = 0.400, t = 7.398) affects consumers’ purchase inten-
tion most followed by attitude towards buying agricultural
products (β = 0.283, t = 4.810) and perceived behavior
control (β = 0.126, t = 3.166). In addition, the multicol-
linearity issue is not detected as all values of VIF are less
than 3 [62,64]. Figure 1 visualizes the path analysis by pre-
senting both path coefficient and t values.

Table 1. Construct reliability and validity.

Factor loading Cronbach’s Alpha rho_A Composite Reliability AVE
Attitude toward buying agricultural food (ATT) 0.827 0.828 0.885 0.658
ATT1 0.790
ATT2 0.819
ATT3 0.829
ATT4 0.807
Perceived behavioral Control (PBC ) 0.838 0.850 0.902 0.754
PBC1 0.895
PBC2 0.847
PBC3 0.863
Subjective Norm (SUB_N) 0.843 0.844 0.895 0.680
SN1 0.825
SN2 0.826
SN3 0.824
SN4 0.823
Purchase Intention (INT) 0.861 0.863 0.915 0.782
INT1 0.883
INT2 0.875
INT3 0.895

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Table 2. Heterotrait-Monotrait ratio (HTMT).

ATT INT PBC SUB_N
ATT
INT 0.626
PBC 0.128 0.212
SUB_N 0.701 0.671 0.071

Table 3. Hypothesis testing.

Path VIF Path Coefficient T Values 95% Confidence Intervals P Values Decision
H1 ATT -> INT 1.534 0.283 4.810 [0.172, 0.297] *** Support
H2 PBC -> INT 1.011 0.126 3.166 [0.047, 0.204] ** Support
H3 SUB_N -> INT 1.523 0.400 7.398 [0.290, 0.494] *** Support

*** p<0.001 ** p< 0.01

Figure 1. Path coefficient.

4.3 Multi-group Analysis
Before proceeding to multi-group analysis, model fit
was proved including Standardized Root Mean Square Re-
sidual (SRMR) = 0.054, Normed Fit Index (NFI) = 0.962,
Exact fit criteria d_ULS = 0.310 and d_G = 0.152. Then,
a power analysis was conducted to ensure that the num-
ber of observations in each group would meet the mini-
mum sample size [68]. The results derived from G*Power
showed that 64 observations in each group were required
to reach a power level of 80% at a significant level of 5%.
Thus, the group-specific sample size for both males (N =
155) and females (N = 245) was regarded as sufficient.
Next, measurement invariance was evaluated, which
was a vital step before the multigroup analysis [68]. If in-
variance cannot be proved, it will result in the “low power
of a statistical test, the poor precision of estimators, and
misleading results” [68,69]. In this context, the measurement
invariance of composite models (MICOM) procedure
developed by Henseler et al. (2016) [66] was introduced,
which consists of three steps: 1) Evaluating configural in-
variance, 2) establishing compositional invariance, and 3)
assessing equality of a composite’s mean value and vari-
ance across groups [68-70]. Accordingly, the permutation test
was applied [61].
Table 4 presents the results of MICOM using the per-
mutation test. Firstly, in general, configural invariance is
automatically established at step 1. Next, in step 2 correla-
tions between the composite scores are compared with a
5% quantile for all variables (ATT, INT, PBC and SUB_
N). The results show that only the quantile of PBC was

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

smaller than its correlation, indicating that compositional
invariance was only established for the construct of PBC.
Consequently, partial measurement invariance of PBC
was confirmed. In step 3, the equality of mean (3a) and
variance (3b) were tested. The original difference between
male and female groups is compared with 95% confidence
intervals. At step 3a, the mean of ATT and PBC fell “within
the 95% confidence interval of the lower (2.5%) and up-
per (97.5%) boundaries” [70] At the same time, INT and
SUB_N did not, meaning that there were no significant
differences between mean values of two groups (male Vs.
female) for ATT and PBC constructs. At step 3b, only the
variance of PBC fell within the 95% confidence interval,
concluding that full measurement invariance was estab-
lished only for PBC construction.
Further, Henseler’s MGA (PLS-MGA) [66] was applied
to analyze group-specific differences [68,71]. Henseler's
MGA is a nonparametric test that generates boostrapping
results for each group [66,68,69]. By using PLS-MGA, “a p-
value of differences between path coefficients lower than
0.05 or higher than 0.95 indicates a 5% level of significant
difference between specific path coefficients across two
groups” [70,72]. Table 5 reveals that gender difference exists
regarding the effect of PBC on INT while no differences
are found in the paths from ATT and SUB to INT. How-
ever, male and female have little difference in the impact
of PBC on INT as the path coefficient difference is 0.002.
5. Discussion and Conclusions
The hypothesis testing results confirm the significant
influences of attitude towards buying agricultural products
(H1), perceived behavior control (H2), and subjective
norm (H3) on consumers’ intention to buy agricultural
products. Interestingly, the subjective norm is the most
influential factor, which shows the importance of group
influence in Chinese society. Under the influence of group
consciousness and norms, social groups can produce com-
mon and consistent behaviors at any time. In this paper,
consumers’ purchase intention is influenced by the group
they belong to and the people around them, that is, the
preference of the people around them (family members,
relatives, friends, or colleagues, etc.) for a particular prod-
uct or a brand will influence their purchasing decision.
Next, in terms of multi-group analysis of gender dif-
ference, through measurement invariance of composite
models (MICOM) procedure, full measurement invariance
was established only for perceived behavioural control.
Further, the multi-group analysis results reveal gender
differences in predicting perceived behavioral control on
consumer intention, indicating that the relationship be-
tween perceived behavior control and intention is slightly
stronger for female consumers. It can be said that female
respondents did not perceive buying agricultural products
from a live-streaming commerce platform as complex.

Table 4. Results of measurement invariance assessment based on a permutation test.

Configural Compositional Partial Equal Equal Full

invariance invariance Measurement Mean (step Variance Measurement
(step 1) (step 2) Invariance 3a) (step 3b) Invariance

Original Original Confidence Original Confidence

5%
Korrelation Difference Interval Difference Interval

ATT Yes 0.989 0.996 No –0.089 [–0.173, 0.183] 0.765 [–0.397, 0.450] Yes/No

INT Yes 0.998 0.999 No –0.176 [–0.176, 0.163] 0.777 [–0.392, 0.407] No/No

PBC Yes 0.977 0.971 Yes –0.154 [–0.168, 0.159] 0.159 [–0.166, 0.180] Yes/Yes

SUB_N Yes 0.990 0.996 No –0.377 [–0.158, 0.172] 0.949 [–0.386, 0.416] No/No

Table 5. Results of the structural equation model multi-group analysis.

Female Male

Confidence Intervals Path Confidence Intervals Path coefficient Henseler’s PLS-

Path Coefficient
(Bias Corrected) Coefficient (Bias Corrected) difference MGA

ATTINT 0.319 [0.169, 0.486] 0.159 [–0.298, 0.242] 0.160 0.064

PBC INT 0.124 [0.041, 0.203] 0.122 [–0.154, 0.252] 0.002 0.971**

SUB_N INT 0.409 [0.259 0.540] 0.310 [0.141, 0.503] 0.099 0.205

*** p < 0.01; ** p < 0.05

30
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
This phenomenon may be related to the increasing num-
ber of female anchors on live broadcast platforms. As
pointed out by Chen (2021) [73], by 2020, female anchors
in China’s live-streaming commerce industry accounted
for 65.3%, and among the three platforms of Taobao,
Kuaishou, and Douyin, female anchors account for 71.5%
in Kuaishou. 68.3% in Taobao and 57.5% in Douyin.
Compared to male consumers, female anchors are more
able to resonate with female consumers. In Chinese so-
ciety, women usually spend more energy and time caring
for their families. For example, they care about what their
family eats, how to eat healthily, etc. The positioning of
this traditional role also makes female consumers more
willing to take the time to understand the agricultural
products sold in the live broadcast room and actively
interact with anchors seeking (predominantly female an-
chors) more relevant information. Therefore, they will
feel that it is easy to buy agricultural products via live-
streaming commerce platforms.
This article also has its limitations. First, limited to quan-
titative research, it is impossible to obtain rich descriptive
data on specific phenomena of consumers’ behavior in pur-
chasing agricultural products. Therefore, future studies us-
ing mixed methods studies are encouraged. Furthermore, in
addition to gender differences, intergenerational differences
can also be used for future research. Generation Y and Z’s
consumption behaviors, characteristics, and patterns in on-
line shopping are a good focus.
6. Implications
6.1 Theoretical Implications
This study contributes to the existing literature in sev-
eral ways. First, it confirms the validity of the Theory of
Planned Behavior (TPB) in the context of agricultural
marketing. Second, the study reveals the importance of
gender differences in promoting agricultural production
in a digital setting. Therefore, this study can be used as
a reference to explain the role of gender in encouraging
consumers’ choice of agricultural products.
6.2 Managerial Implications
At a practical level, managerial implications are pro-
vided to increase consumer intention to buy agricultural
products.
As far as subjective norms and attitudes are concerned,
the “Family Coupon” program can be implemented in the
live-streaming room of agricultural products to provide
different degrees of discount. Consumers can apply for
“parent-child coupons” in the live broadcast room or plat-
form to share with relatives and friends. With more partic-
ipation of relatives and friends, consumer attitude towards
buying agricultural products will be more positive. This
will trigger consumers’ willingness to buy agricultural
products.
As far as perceived behavior control is concerned,
mainly when gender difference is considered, it is sug-
gested that the live-streaming room or commerce plat-
form should make purchasing more convenient and more
manageable. In e-commerce, male consumers are gener-
ally more intuitive than female consumers. They tend
to get information directly to make better comparisons;
therefore, the convenient and time-saving live-streaming
shopping experience is more favored by male consum-
ers. Consequently, if live-streaming anchors or platforms
provide more detailed product information while promot-
ing agricultural products, it will reduce ambiguity. The
policy to claim for the product return, to redeem to get
gifts or discounts should be clear to reduce the risk. In ad-
dition, live-streaming platforms should conduct regular
reviews of agricultural products quality and production
qualifications to reduce consumer concerns about such
issues. These practices will benefit both female and male
consumers. Live broadcast platforms and anchors should
strive to provide consumers with a safe, simple, and intui-
tive consumption experience while promoting agricultural
products to increase consumers’ intention to purchase and
ultimately promote actual purchase behavior.
Author Contributions
Bing Zhu: writing, methodology, data analysis and
conceptualization; Ping Xu is writing, data collection,
conceptualization.
Funding
This work has received funding from the Guangdong
Provincial Education Department of China. It is a part of
the 2021 Guangdong Province Key Scientific Research
Platform and Project “Research on the Economic Effects
of Vocational Education Innovation Supply in Guang-
dong-Hong Kong-Macao Greater Bay Area Based on the
Rural Revitalization Strategy” (2021ZDZX4070).
Data Availability
Raw data are from China. The questionnaire and de-
rived data supporting the findings of this study are avail-
able from the first author, Bing Zhu, upon request.
31
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
Conflict of Interest
The authors report that there are no competing interests
to declare.
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Research on World Agricultural Economy

https://ojs.nassg.org/index.php/rwae

RESEARCH ARTICLE
Farmer’s Perception on Climatic Factors and Social-economic
Characteristics in the Agricultural Sector of Gujarat
Ajay K. Singh1* Shah Nawaz Ashraf 2 Sandeep Kumar Sharma1
1. School of Liberal Arts and Management, DIT University, Dehradun, Uttarakhand, 248009, India
2. Entrepreneur Academy, Mohammed VI Polytechnic University, Ben Guerir, 43150, Morocco

Abstract: This study investigated the implication of various factors, including climatic conditions, social-economic
variables, agricultural inputs, technological development, institutional support, and adaptation strategies in the
agricultural sector of Gujarat. A confirmatory factor analysis (CFA) was used to analyse the farm-level data from 240
randomly selected farmers across eight districts. The study found that farm income per hectare is influenced by climate
adaptation strategies, appropriate technology, annual income, education level, family size, fertilizer application, farm
income from cash crops, financial support from the government, and access to credit. The study recommends the use of
appropriate technology and adaptation strategies to mitigate the negative impact of climate change, as well as increase
farmers’ access to credit, diversify crops, and encourage technological development in the agricultural sector. In
addition, agricultural extension and development agencies should train farmers regularly to improve their understanding
of climate adaptation practices and other inputs.

Keywords: Agricultural sector; Appropriate technology; Climate change; Farm income; Adaptation strategies

climatic conditions at various stages of production [8]. Rice

1. Introduction
Climatic factors, geographical location and ecosystem
services have a significant contribution to increasing the
farmer’s choice to cultivate a particular crop [1-7]. For
instance, wheat, mustard and gram crops need minimum
temperature during sowing time, and high temperature
during harvesting time. Sugarcane crop needs different
crop needs high temperature and an abundance of water
during sowing time; moderate temperature and high rain-
fall during plant growth; and high temperature, minimal
precipitation and no rainfall during harvesting time [9].
The growth and production of other crops like groundnut,
sesame, soybean, cotton, sorghum, millet, etc. also depend
on different climatic conditions [9]. Agricultural production

*Corresponding Author:
Ajay K. Singh,
School of Liberal Arts and Management, DIT University, Dehradun, Uttarakhand, 248009, India;
Email: a.k.seeku@gmail.com; kumar.ajay_3@yahoo.com

Received: 22 December 2022; Received in revised form: 24 February 2023; Accepted: 1 March 2023;
Published: 6 March 2023

Citation: Singh, A.K., Ashraf, S.N., Sharma, S.K., 2023. Farmer’s Perception on Climatic Factors and Social-
economic Characteristics in the Agricultural Sector of Gujarat. Research on World Agricultural Economy. 4(1), 788.
http://dx.doi.org/10.36956/rwae.v4i1.788

DOI: http://dx.doi.org/10.36956/rwae.v4i1.788
Copyright © 2023 by the author(s). Published by NanYang Academy of Sciences Pte. Ltd. This is an open access article under the Creative
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
activities, therefore, primarily depend on climatic factors [8,9].
Whereas, high variability in climatic factors in various
seasons may reduce the productivity of crops [2,3,9-12].
Extreme climatic events such as drought, floods, cyclones
and heat waves may also produce a negative impact on
the agricultural production system [13,14]. Findings of
previous literature have concluded that climatic factors
are fluctuating due to the rising quantity of GHGs
emissions in the atmosphere [3,9,15]. Moreover, ecosystem
services such as water and land resources are useful
inputs for agricultural production activities. While, the
quantity of ecosystem services is declining due to rising
population, urbanization, industrialization, infrastructural
development, production activities of industries and
agriculture and climate change [1,3,14]. Also, the excessive
use of pesticides and fertilizer in the agricultural sector
also reduces soil fertility, quality of water and air [9,16].
It is stated earlier that agricultural production and its
allied activities are adversely affected due to climate
change and ecosystem services. Therefore, the sector
needs technological advancement, appropriate technology,
climate adaptation strategy (CAS) and institutional
support to reduce the vulnerability of crops due to
climate change [3,5,6,12,17,18]. Technological advancement
and appropriate technology will bring significant
changes in this sector to cope with climate change [1,5,6,9].
Adaptation strategy is a practice or action which reduces
or mitigates the negative consequences of any event in a
production process. It can be divided into two categories
i.e., autonomous and planned adaptation. Autonomous
adaptation is an involuntary and regular incidence that
creates a capacity to adjust to climate change impact in
a system without taking any action. Planned adaptations
strategy is associated with farmers’ practices in a system
to reduce the negative impacts of human and natural
activities in it [19]. Mitigation means all human interven-
tions which abate greenhouse gas emissions from various
sources [6,9]. Institutional support also helps to increase
the farmer’s understanding to apply different practices
to reduce the uncertainty of climate change impacts on
crop production [20]. Public policies, adaptation practices
and climate action policies support to reduction the nega-
tive consequences of climate change in the agricultural
sector [4,5,14,19,21].
India is a developing and highly agricultural-intensive
country. Thus, the agricultural sector has a greater contri-
bution to sustaining the social-economic development of
a farming community in India. As India is located at low
latitudes, therefore, its agricultural sector is highly vul-
nerable due to climate change [9,14,15,22,23]. In India, numer-
ous studies have examined the climate change impact on
agricultural production, food-grain yield and commercial
crops, agricultural productivity and agricultural GDP at
district, state and national levels [1,2,8-10,16,24-33]. Previous
findings reported that yield, production and cropped area
of cash crops decline due to climate change in India. Ac-
cordingly, climate change produces a negative impact on
sustainable food security (SFS), livelihood security, the
income of farmers, rural development and environmental
factors and sustainable agricultural development (SAD)
in India [12,34,35]. SFS is a state in which the agricultural
sector meets the food security of all people to ensure their
physical and mental health, and provide fodder to all live-
stock as sustaining the quality and quantity of ecosystem
services [35]. At present India’s population is around 1.37
billion and its population is projected to be 1.53 billion by
the year 2030 [9]. Hence, India would be required to pro-
duce 70% more food grains to meet the food security of
future generations [36]. Moreover, high population growth,
industrialization, urbanization and labour migration
would increase the extensive burden on natural and capi-
tal resources, and the agricultural sector in India [9]. Most
developing countries including India would be unable to
maintain irrigation systems and ecosystem services which
further hamper sustainable agricultural development [37,38].
India, therefore, needs to protect ecosystem services by
using technological advancement, appropriate technology
and CAS in the agriculture sector [5,6,10,16]. The use of new
technologies, scientific techniques, climate resilient tech-
nologies and appropriate technology will reduce the nega-
tive impact of climate change [3,5,39-41]. CAS would be use-
ful to reduce the risk, and increase the economic capacity
of farmers to manage the climate change impact on the
agricultural sector. Education level, access to information,
electricity for irrigation, agricultural subsidies, water and
land management practices, farm income, training, social
capital, agroforestry, bio-diversification, and communication
are also detected as the most CAS influencing factors [5,12,18].
Changes in planting time, water and nutrient management
practices, fertilizer, irrigation management and technology
also would work as a CAS [9,13]. Water conservation and
management, heat tolerance crops, high yielding of seed,
change in cropping pattern, mixed cropping pattern, crop
diversification, tree planting, late sowing of seed and ap-
plication of green fertilizer can be used as CAS [3,16,19,25].
Crop rotation, drip irrigation, local farming techniques,
green technologies and green fertilizer are the various
practices of CAS [42].
In addition to the above, agricultural technologies
would be positive to increase crop productivity and reduce
the negative consequences of socio-economic activities
on natural resources; decreases the use of water, fertilizer
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
and pesticides in farming; reduce chemicals in the rivers
and groundwater [3,5,6,41,43]. It can be used for ploughing,
planting seeds in soil, watering, irrigation, and fertilizer
and others [6,44]. Subsequently, technological development
and agricultural technologies have a positive and signifi-
cant impact on the growth of the agricultural sector in
India [5,6,44,45]. Applications of traditional technologies have
also provided numerous benefits in agricultural activities
in India [46-50]. Furthermore, appropriate technology will
bring several alternatives to increase the sustainability of
ecosystem services as its practices in production activi-
ties will abate the GHGs emission in the atmosphere [5,6].
Appropriate technology may be conducive to maintaining
economic, social and environmental conditions of avail-
able resources [6,51]. The use of appropriate technology in
the agricultural sector is helpful to increase the productiv-
ity, efficiency and profitability of farmers [5,6,39]. Appropri-
ate technology is a new technology or idea or knowledge
or knowledge-know-how which reduces the negative
impact of social and economic development on the en-
vironment [5,6]. Most specifically, appropriate technology
and technological development will improve land pattern
and management, recovery of surplus land, maintain the
cropping pattern in various crop seasons, a technique of
farming, marketing facilities, seed germination and seed
viability, soil quality and fertility, and land productivity in
the agricultural sector [5,6,39,52-54].
Agricultural production activities depend upon differ-
ent types of indicators such as climatic factors, ecosystem
services, technological advancement, appropriate tech-
nology, Agri industries, irrigated area, physical assets,
farm management practices, government policies, credit
accessibility, geographical location, institutional support
and others. Therefore, it is indispensable to assess the
most valuable factors which enhance the growth of the
agricultural sector. Hence, there is a requirement to apply
a confirmatory factor analysis (CFA) to examine the con-
tribution of the above-mentioned indicators to mitigate the
adverse impact of climate change in the agricultural sec-
tor. Moreover, few studies could observe the significance
of mentioned variables in farming activities using CFA.
Hence, it is essential to examine the role of highlighted in-
dicators to mitigate the negative impact of climate change
in the agricultural sector. Accordingly, this study achieved
the answer to the following research questions:
● What is the significance of climatic and non-climatic
factors, & climate adaptation strategies (CAS) in the
agricultural sector?
● How social-economic factors, agricultural inputs,
38
technological advancement, and institutional
supports related activities can be used as CAS in the
agricultural sector?
This present study realized the following objective:
● To examine the latent variables in five different cat-
egories of variables (i.e., climate change, social-eco-
nomic, agricultural input, technological change and
appropriate technology, and institutional support and
CAS) in the agricultural sector using a confirmatory
factor analysis (CFA).
2. Research Methods and Materials
2.1 Study Area
Gujarat is located on the western coast of India and it
is bounded by the Arabian sea in the west and southwest.
Figure 1 shows the geographical and administrative loca-
tion of Gujarat. The state touches the international border
of Pakistan; and Rajasthan, Madhya Pradesh and Maha-
rashtra states and the Dadra, Diu and Nager Haveli union
territories of India. Geographically, the state is located
at a latitude and longitude of 23.00 north and 72.00 east,
respectively. The state has a 1,659-kilometre coastline
which is the largest among the other Indian states. It oc-
cupied a total 196,244 square kilometer geographical
area that has a significant share of forest area, grazing
land and arable land total geographical area of Gujarat.
The state is located in a peninsular region which can be
divided into four sub-regions. Administratively, the state
has 33 districts that have high diversity in agricultural,
industrial and service sector, and social-economic activi-
ties of the population. Gujarat is a highly industrialized
state and it has appropriate start-ups and entrepreneurship
ecosystem among the Indian states [55]. It has a dominant
position in the production of many industrial goods such
as diamonds, petrochemical, medical devices, medical
engineering goods and services, drugs, dairy products, etc.
The state also has a significant share of the agricultural
sector in India’s gross domestic product. The agricultural
and its allied sector meet the requirement of raw materi-
als for agro-industrial development in Gujarat. Sugarcane,
mustard, groundnut, soybean, cotton, potato, rice, sor-
ghum, wheat and maize are the major crops of this state [6].
Gujarat is a climate-sensitive state due to its geographical
location, and it has high diversity in ecosystem services,
availability of natural resources, demographical change
and social-economic development of farmers. Climate
change has a diverse negative impact on the livelihood
security of farmers in Gujarat [5,6,35,56]. Therefore, this state
was considered a study area for the proposed research.
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Figure
Figure 1.
1.Geographical
Geographical location
location of
of Gujarat.
Gujarat.
Source:
Source: Author’s
Author’s formation.
formation.

2.2 Collection of Primary Data

2.2 Collection of Primary Data blocks were considered for a field visit. One village from
each block was selected randomly. Thus, 16 villages were
A total of 8Adistricts
total of out 8of districts out of
33 (i.e., Anand, Banas33 Kan-
(i.e., Anand,
considered Banas
in thisKantha, Bharuch, Bhavnagar,
study. Subsequently, 15 farmers from
tha, Junagadh, Kheda, Surat,
Bharuch, Bhavnagar, Junagadh, andKheda,
Vadodara)
Surat, and were each
selected based on their contribution
village were identified randomly to the
for a personal inter-
agricultural
Vadodara) sector
were selected based(Figure 2). Theseto districts
on their contribution the view.collectively contribute around
Hence, 240 farmers were interviewed. 46% of
agricultural
agricultural labour,2).36%
sector (Figure These ofdistricts
agricultural district domestic
collectively The personal product,
interview36.6% of gross
of selected croppedwas
respondents
area, around
contribute 31% of46% netofarea sown and
agricultural 44%
labour, 36%gross irrigated
of agri- area of Gujarat. Also, these districts
conducted from 1st October 2019 to 31st December have2019.
a high share in arable land, agricultural workforce,
cultural district domestic product, 36.6% of gross cropped croppingquestionnaire
A well structural intensity, survey
irrigated
was area, and for
conducted
area,cropped
31% of net area under
area sownfood-grain
and 44% gross andirrigated
cash cropsarea inthe
Gujarat.
personalThese districts
interview are highly
of selected farmers.vulnerable
The question-
due to climate change as compared to other districts
of Gujarat. Also, these districts have a high share in arable of Gujarat
naire was filled up by the. Two
[14,35]
blocks
research team from
duringeach
the per-
land,district wereworkforce,
agricultural chosen purposively,
cropping intensity, and irrigated
16 blockssonal
wereinterview
considered for a The
of farmers. fieldquestionnaire
visit. One wasvillage
divided
area,from each block was selected randomly. Thus, 16 villages were considered in this study.
and cropped area under food-grain and cash crops in into four broad sections. The 1st section includes the in-
Subsequently,
Gujarat. These districts15 arefarmers from each
highly vulnerable due village
to climatewere identified
formation randomly
associated forsocial-economic
with the a personal interview.
structure of
change as compared
Hence, to other were
240 farmers districts of Gujarat [14,35]. Two farmers, gender, age, family size, annual income, educa-
interviewed.
blocks from each district were chosen purposively, and 16 tional level and income-generating occupations. The 2nd

39

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
section includes information on the gross cropped area,
irrigated and non-irrigated area, production of all crops,
number of livestock and agricultural inputs. The 3rd sec-
tion comprises information on the cost of technologies,
appropriate technology, financial support from the gov-
ernment and credit accessibility from banks, farmer’s as-
sociation with Agri-entrepreneurs, skill supports, farmer’s
adaptation strategy and agricultural development agencies.
The 4th section contains open-ended questions on various
aspects such as government policies, marketing, and pric-
ing of products, etc. of the agricultural sector. Qualitative
and quantitative information was collected from the farm-
ers to achieve the specific objectives of the study.
2.3 Collection of Secondary Data
Information related to climatic factors such as actual
Figure 2. Location of districts.
Source: District wise statistics of CMIE (2019-2020).
40
annual average evapotranspiration, annual average maxi-
mum temperature, annual average minimum temperature,
annual average precipitation and annual actual rainfall
were derived from the India Meteorological Department
(IMD), Ministry of Earth Sciences (Government of India)
and official website of International Crops Research Insti-
tute for the Semi-Arid Tropics. The statistics of mentioned
climatic factors were used during 1991-2015. Since the
statistics were available in time series. Hence, the coef-
ficient of variation (CV) in mentioned climatic variables
was included in the statistical analysis. The farm harvest
price of each crop was taken from the annual report (2019-
2020) of farm harvest prices of principal crops in India
published by the Directorate of Economics and Statistics,
Department of Agriculture, Cooperation and Farmers Wel-
fare, Ministry of Agricultural and Farmers Welfare, GoI,
New Delhi.
8.49
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
2.4 Data Analysis
Analysis of Qualitative and Quantitative Data
CFA is a statistical technique that identifies the latent
and constructed variables in production activities [57].
The technique is helpful to describe the role of climatic
and non-climatic factors in the agricultural sector [57-60].
It makes the group of indicators into constructs or fac-
tors and observes the interrelationship among them [38,61].
Hadrich and Olson [58] examined the correlation coeffi-
cients between farm size and farm performance, and the
role of latent variables in farm performance in the USA
using a CFA. Hosseini and Eghtedari [59] detected the fac-
tors affecting the development of nanotechnology in the
agricultural sector of Iran using CFA. Karakas et al. [62]
have determined the factors which were useful to increase
the farmer’s knowledge and skills regarding bureaucratic
procedures using CFA. Syan et al. [63] applied the CFA
technique to examine the farmer’s intention to adopt sus-
tainable agriculture practices in Punjab (India). Narmilan
et al. [41] used CFA to estimate the relationship between
factors with regard to precision agricultural techniques
and farmers’ adoption capacity in Sri Lanka. Pakmehr
et al. [60] used CFA to determine the factors affecting farm-
ers’ adaptation to climate change-induced water pressure
in Iran. Laurett et al. [38] examined the SAD-affecting
factors in Brazil using exploratory factor analysis. Singh
et al. [64] also applied PCA to examine the performance of
indicators associated with sustainable livelihood security
in Indian states. This study also used the CFA technique to
inspect the performance of climatic and non-climatic fac-
tors in the agricultural sector.
Rationality of Confirmatory Factor Analysis (CFA)
The authors of this study collected information on nu-
merous factors which were essential for the growth of the
agricultural sector. These variables have diverse contribu-
tions to the agricultural production system. Therefore, this
study used CFA to identify the latent variables which can-
not be observable [63]. A latent variable can be decided as
per its variance and covariance in the set of variables. For
this, CFA helps to reduce the dimensionality of a set of
variables and further it may be useful to develop a math-
ematical model for different statistical and empirical anal-
yses. If the variance of a variable in a specific category of
factors is less than 40%, then the variable can be dropped
from the statistical analysis [57]. The estimate infers that
the variable has an insignificant contribution among the
set of variables. In the agricultural sector, there are many
variables that can be used as dependent and independent
variables. Therefore, it is expected that the contribution of
some variables may be latent in farming activities. Hence,
CFA was used to examine the latent variables among the
selected set of variables.
Validity of CFA Results
Cronbach’s alpha score was estimated to check the reli-
ability of the scale coefficient of individual and group fac-
tors [59,65]. If the statistical value of Cronbach’s alpha score
is less than 0.50, then undertaken variables cannot con-
sider for CFA. Furthermore, Kaiser-Meyer Olkin (KMO)
test was also used to check the perfection of the sample
and consistency of CFA [38]. If the KMO value is detected
as more than 0.5, the sample has adequacy for CFA [57].
Finally, the Chi2 value was also considered to check the
viability of CFA.
Description of Variables Included for CFA
This study applies the CFA technique to observe the la-
tent and construct factors in the agricultural sector. There-
fore, 31 factors in five categories: (i) Climate change, (ii)
Social-economic, (iii) Agricultural input, (iv) Techno-
logical development and appropriate technology, and (v)
Institutional support and CAS-related variables were used
(Table 1). Previous studies have used climatic and non-
climatic factors to observe the impact of climate change in
the agricultural sector [1,2,8,16,22,32]. Few studies have consid-
ered only climatic factors to assess the impact of climatic
factors on production, yield and cropped area of food-
grain and cash crops [26,28]. As district-level information on
climatic factors was available during 1991-2015. Since,
the coefficient of variation in climatic factors measures
their long-term variability [1,5]. Thus, the coefficient of
variation (CV) in a particular climatic factor captures its
integrated influence in the agricultural sector. Therefore,
CV in climatic factors was considered to examine the
significance of climatic factors in the agricultural sector.
Kumar et al. [15]; Singh et al. [66] also used CV in climatic
factors to observe the climate change impact on sugarcane
production in Indian states. A farmer’s social-economic
profile also plays a significant role to increase farm in-
come [67]. Thus, gender, age, family size, education level,
main occupation, annual income, family size and a num-
ber of livestock were also included in the statistical analy-
sis of this study [3,12,68-71]. Here, education level was used to
capture the influence of technical skills, and livestock was
used to analyze the impact of physical assets of farmers in
the agricultural sector.
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Table 1. Summary of the variables.

Category Variables Symbol Unit
CV in actual annual average evapotranspiration cvaaea mm
CV in annual average maximum temperature cvaamaxtem °C
Climate change related
CV in annual average minimum temperature cvaamintem °C
variables
CV in annual average precipitation cvaapre mm
CV in annual actual rainfall cvaarf mm
Gender (Male =1; Female =0) genres Number
Farmer’s age ageres Years
Family size famsizres Number
Social-economic Types of family (Joint = 1; Single = 0) typfamres Number
related variables Farmer’s education level (years spent in school) edulevres Years
Farmer’s main occupation (Farming = 1; Farming and others = 0) maioccres Number
Farmer’s annual income annincfam Rs.
Number of livestock (Cow, goat, buffalo) nlf Number
Farm income/Ha. fiph Rs./Ha.
Gross cropped area tagla Ha.
Irrigated area irrare Ha.
Agricultural input
Non-irrigated area nonirrare Ha.
related variables
Crop diversification index cdi %
Use of agricultural labour/Ha. ualph Number/Ha.
Farm income from cash crops farming/Ha. ficcph Rs./Ha.
Fertilizer application/Ha. faph Kg./Ha.
Cost of technology/Ha. cotepeha Rs./Ha.
Technological Economic viability of technology (Yes = 1; No = 0) ecoviatec Number
development and
Social viability of technology (Yes = 1; No = 0) socviatec Number
appropriate technology
related variables Environmental viability of technology (Yes = 1; No = 0) envviatec Number
Appropriate technology (Yes = 1; No = 0) apptec Number
Financial problem of farmers (Yes = 1; No = 0) finpro Number
Financial support from government and credit accessibility from banks (Yes = 1;
Institutional support finsupgov Number
No = 0)
and
Farmer’s association with various stakeholders (i.e., Agri-entrepreneurs,
climate adaptation
agricultural universities, agricultural extension offices, coo-operative societies, farassstahol Number
strategies related
Agri industries) (Yes = 1; No = 0)
variables
Skill and technical support from technology developers (Yes = 1; No = 0) skitecsupfar Number
Farmer’s adaptation strategy to climate change (Yes = 1; No = 0) adstfa Number

Source: Author’s compilation based on primary and secondary data.

Agricultural output was valued as the monetary value
of food grain and cash crops which were cultivated by
farmers during the survey year. The monetary value of
each crop was estimated as per farm harvest price. Ag-
gregate economic values of all crops were considered as
gross agricultural production. Accordingly, per hectare
farm income was assessed as a ratio of gross agricultural
production with the gross cropped area. While, per hec-
tare farm income from cash crops was also estimated
separately. Gross cropped area, irrigated and non-irrigated
area, use of agricultural labour per hectare, farm income
from cash crops farming, fertilizer application per hectare,
number of livestock and crop diversification index (CDI)
were considered as agricultural inputs [4,5,22,45]. Cash crop
farming is also useful to increase farmers’ income and
economic capacity [1]. Subsequently, farmers can apply
various inputs to get a better return in the cultivation of
crops in the next season. Crop diversification measures
how many crops can be cultivated in a specific area in a
year. Agricultural production and income of farmers are to
be increased as crop diversification increases. Moreover,
crop diversification is also a vital driver to familiarizing

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
the climate change impact on cultivation [5,2,72,73]. Hence,
CDI was used to examine the influence of crop diversifi-
cation on per hectare farm income. While, the crop diver-
sification index (CDI) was estimated as:
 2
(CDI)i =  (1)
=1
Here, CDI is the crop diversification index of ith farm-
ers; CA is the cropped area of a crop (in percentage) under
1 to nth crops during the survey year in Equation (1).
Any agricultural technology may have multiple prac-
tices in the agricultural sector. Therefore, the impact of
technological change in the agricultural sector cannot
be observed easily. Prior researchers used the time trend
factor, new varieties of seeds and crop diversification as
proxy variables to capture the impact of technological
development in the agricultural sector [1,12,42,45,74]. Irrigation
facilities, fertilizer and high-yielding verities of seeds also
reflect the overall technological development in farming
activities. In this study, the cost of technology/hectare was
used to capture the impact of technological development
on farm income. This study assumes that technological
development needs more financial resources to bear the
cost of the latest technology. Further, it also accepts that
if the cost of technology increases then it infers the tech-
nological development in the agricultural sector. Cost of
technology is the gross amount which is paid by farmers
to bear the cost of tractors and another mechanical devices
during various stages of crop production, i.e., land prepa-
ration, seed planting, electricity or fuel charge for irriga-
tion and harvesting. Accordingly, the cost of technology/
hectare was used to examine the significance of techno-
logical development in the agricultural sector. Ashraf and
Singh [6] also used a similar variable to capture the impact
of technological development on the farm income of the
agricultural sector.
Appropriate technology ensures the economic, social
and environmental viability of the resources in the pro-
duction process [5,6,39,40,51]. Most studies claimed that an
appropriate technology maintains sustainability in the
economic, environmental and social aspects [6]. In the
context of the agricultural sector, technology can be ap-
propriate when it meets said aspects. The economic aspect
of technology is concerned with purchasing power of
farmers and the social aspect of technology is associated
with its acceptability and usability by farmers. Economi-
cally viable technology also provides a better return to the
farmers. The environmental viability of technology helps
to ensure the protection of ecosystem services (i.e., soil
fertility, and air and water quality) and natural resources.
This aspect of technology is useful to reduce GHG emis-
sions from the production sector and it may be highly
conducive to reducing more existence of climate change.
Hence, the measurement of appropriate technology is not
easy [5,6]. Also, the scientific research community could
not provide a universally acceptable indicator and develop
a model to examine the impact of appropriate technology
in the agricultural sector. Therefore, existing researchers
could not assess the influence of appropriate technology
on the production, yield, and growth of the agricultural
sector. Though, previous studies used different variables
such as time trend factor, cost of technology, fertilizer in-
tensity, tractor, ICT, transplant technique, etc. to perceive
the significance of appropriate technology and technologi-
cal development in this sector [39,45]. Accordingly, it was
difficult to observe the viability of appropriate technology
and its components. The authors of this study used some
proxy questions to include the farmer’s view on appropri-
ate technology and its other aspects. For instance, whether
applied technologies are economically feasible for you or
not (if yes then 1 otherwise 0)? whether applied technolo-
gies are socially acceptable to you or not (if yes then 1
otherwise 0)? whether applied technologies are environ-
mentally sound or not (if yes then 1 otherwise 0)? Hence-
forth, in this study, farmers’ judgments on economic, so-
cial and environmental aspects of appropriate technology
were used as proxy variables. In CFA, it uses binary data
for mentioned aspects of appropriate technology in men-
tioned ways [5].
Financial restrictions of farmers, financial support from
the government and credit accessibility from banks, farm-
er’s association with different institutions (i.e., Agri-entre-
preneurs, agricultural universities, agricultural extension
offices, agricultural cooperative societies, Agri industries),
skill and technical support from technology developers’
industries, and farmer’s CAS were used as institutional
support related variables in CFA. Agricultural extension
offices and developmental institutions provide training
and technical support to the farmers to increase their un-
derstanding of various climate adaptation strategies and
new technologies in the agricultural sector [5,6,12,63,75].
3. Main Results
3.1 Statistical Summary of the Variables
Table 2 shows the statistical properties (i.e., minimum,
maximum, mean, standard deviation and skewness) of
climatic and non-climatic factors. The values of standard
deviation (SD) of most variables (except ageres, anninc-
fam, fiph, ficcph, faph, cotepeha, edulevres, tagla, irrare,
ualph, famsizres, cdi and nlf) were appeared less than 1.
Thus, these factors have an insignificant diversity in the
sample. The statistical value of skewness describes the
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

normality of the respective factor. The skewness values
of most factors (excluding cvaapre, cvaarf, genres, nlf,
ficcph, faph, socviatec and fiph) appeared between –1 to + 1.
Thus, these factors were found in normal form. Moreover,
Cronbach’s Alpha score measures the internal viability of
individual variable. The Cronbach’s Alpha (α) score of
a variable also measures its internal viability for further
consideration in CFA [57]. Cronbach’s α score for all factors
was found more than 0.70. Hence, the estimates infer that
undertaken variables have internal consistency to apply
CFA.
3.2 Results Based on CFA
The eigenvalues, proportion share and cumulative
contribution of all factors were estimated through simple
factor analysis, principal-component factors analysis,
iterated principal-factor analysis and maximum likelihood
factor analysis. As principal-component factor analysis
produces better results as compared to other forms of
CFA. In the CFA method, the significance of a factor in
the group of factors was observed based on eigenvalue,
percentage variance and cumulative variance. Thereupon,
factor loading and the uniqueness value of a specific
variable explain their aggregate variation in the group of
variables. This study used five categories of variables to
examine latent and construct variables. The CFA results
for climate change, social-economic, agricultural input,
technological development and appropriate technology,

Table 2. Descriptive statistics of factors

Variables Min Max Mean SD Skewness Cronbach’s α score
cvaaea 0.081 0.221 0.145 0.051 0.351 0.7614
cvaamaxtem 0.011 0.012 0.012 0.002 0.592 0.7608
cvaamintem 0.021 0.021 0.023 0.003 –0.043 0.7643
cvaapre 0.241 0.391 0.291 0.041 1.124 0.7630
cvaarf 0.340 0.481 0.382 0.043 1.990 0.7803
genres 0.001 1.002 0.981 0.142 –6.712 0.7643
ageres 22.001 65.002 39.982 10.644 0.331 0.7524
famsizres 2.00 12.001 5.831 1.831 0.801 0.7515
typfamres 0.00 1.001 0.631 0.48 –0.55 0.7407
edulevres 7.00 17.00 12.59 3.09 –0.11 0.7338
maioccres 0.00 1.00 0.65 0.48 –0.65 0.7575
annincfam 140000 912000 531692 159320 –0.021 0.7535
nlf 5.00 34.00 12.40 4.17 1.40 0.7483
fiph 10821 23420 12053 1757 3.68 0.7668
tagla 1.00 25.00 9.27 5.57 0.67 0.7507
irrare 0.50 20.00 6.16 4.12 0.88 0.7527
nonirrare 0.00 10.00 3.15 2.00 0.79 0.7529
cdi 2.00 8.00 6.00 1.43 –0.55 0.7649
ualph 40.00 78.00 54.24 6.37 0.39 0.7693
ficcph 7214.17 9816.00 7865.46 597.24 1.48 0.7707
faph 102.00 435.00 167.38 50.58 2.59 0.7623
cotepeha 1765.00 2986.00 2536.39 287.22 –0.68 0.7674
ecoviatec 0.00 1.00 0.64 0.48 –0.59 0.7454
socviatec 0.00 1.00 0.89 0.31 –2.52 0.7619
envviatec 0.00 1.00 0.63 0.48 –0.55 0.7431
apptec 0.00 1.00 0.72 0.30 –0.51 0.7358
finpro 0.00 1.00 0.69 0.46 –0.83 0.7567
finsupgov 0.00 1.00 0.44 0.50 0.25 0.7640
farassstahol 0.00 1.00 0.51 0.50 –0.05 0.7644
skitecsupfar 0.00 1.00 0.32 0.47 0.77 0.7717
adstfa 0.00 1.00 0.46 0.50 0.15 0.7351

Source: Author’s estimation using primary and secondary data.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

and institutional support and CAS-related variables are
given in Table 3, Table 4, Table 5, Table 6 and Table 7,
respectively. The KMO values of most variables (except,
a few) were observed more than 0.5 and the overall KMO
value was reported more than 0.72. Also, the Chi2 value
was found statistically significant at a 1% significance
level in each category. Thus, estimates infer that all fac-
tors have consistency for the application of CFA. In the
category of climate change-related variables, the first 3
factors were found retained factors that contribute 87.83%
variation among the five different climatic factors (Table
3). The variation in an individual factor loaded onto 3
retained factors (i.e., factor1, factor2 …, factor3) and the
uniqueness of each factor in farm income/hectare detect
the category of latent variables. If the value of a factor
loaded is less than 0.40, then the factor cannot be used in
the statistical explanation [57,75]. The estimates reveal that
cvaaea, cvaamaxtem, cvaamintem, cvaapre, and cvaarf
have high loaded on factor1. Hence, actual annual average
evapotranspiration, annual average maximum temperature,
annual average minimum temperature, annual average
precipitation and annual actual rainfall appeared as
latent variables in the category of climate change-related
variables.
For the social-economic related variables, CFA results
infer that the first 3 factors seemed retained variables.
These first 3 factors have a 60.10% variation in the 8 so-
cial-economic related variables (Table 4). As per the fac-
tor loading and uniqueness, agrees, famsizres, typfamres,
edulevres and nlf have highly loaded on factor1. There-
fore, the farmer’s age, family size, type of family, educa-
tion level and number of livestock seemed latent variables
in the category of social-economic variables.
In the category of agricultural inputs related-variables,
the first 3 factors were detected as retained factors (Table
5). The first 3 factors have a 72.5% variation among the
7 variables in this category of variables. The results also
suggested that gross cropped area, irrigated area, crop
diversification and fertilizer application were found latent
variables in the category of agricultural input-related
variables.
Appropriate technology and its other components have
highly loaded on factor1 (Table 6). Thus, these variables
were found latent variables in the category of techno-
logical change and appropriate technology related vari-
ables. While, the cost of technology has highly loaded on
factor2. Cost of technology, therefore, was also found as a
hidden variable for factor2.
As the eigenvalue and proportion share of individual
factors, the first 3 factors were reported retained fac-
tors and these variables have 65.10% variation among
the 5 factors in the category of institutional support and
CAS-related variables (Table 7). The estimates infer that
government financial support, farmers’ association with
different stakeholders, skilled and technical support for
farmers and CAS have highly loaded on factor1. Hence,
these variables were observed as latent variables in this
category of variables.

Table 3. Proportion of factors, factors loading and unique variances in climatic factors.
Eigenvalue and proportion of factors
Number of obs. 240 Number of params 15
Retained factors 3 Chi2 1271.20*
Factor Factor1 Factor2 Factor3 Factor4 Factor5 Factor6
Eigenvalue 2.8221 1.4432 1.0043 0.47505 0.24555 0.0099
Difference 1.3789 0.4389 0.52925 0.2295 0.23569 .
Proportion 0.4703 0.2405 0.1674 0.0792 0.0409 0.0016
Cumulative 0.4703 0.7109 0.8783 0.9574 0.9984 1
Factor loadings (pattern matrix) and unique variances
Variable Factor1 Factor2 Factor3 Uniqueness KMO Value
fiph 0.0757 0.0298 0.9952 0.0030 0.3234
cvaaea 0.6750 0.6250 0.0487 0.1514 0.6960
cvaamaxtem 0.9470 –0.2733 –0.0280 0.0278 0.4087
cvaamintem 0.7376 –0.6019 0.0009 0.0937 0.3263
cvaapre 0.4589 0.7785 –0.0921 0.1750 0.2578
cvaarf 0.8422 –0.0933 –0.0476 0.2796 0.3985

Source: Author’s estimation using primary and secondary data.

*: show that Chi2 value is statistically significant at 1% significance level.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Table 4. Proportion of factors, factors loading and unique variances in social-economic related variables.
Eigenvalue and proportion of factors
Number of obs. 240 Number of params 24
Retained factors 3 Chi2 708.33*
Factor Factor1 Factor2 Factor3 Factor4 Factor5 Factor6 Factor7 Factor8 Factor9
Eigenvalue 3.092 1.261 1.057 0.945 0.921 0.761 0.589 0.254 0.122
Difference 1.832 0.204 0.112 0.024 0.160 0.172 0.335 0.131 .
Proportion 0.344 0.140 0.117 0.105 0.102 0.0845 0.065 0.028 0.014
Cumulative 0.344 0.484 0.601 0.706 0.808 0.893 0.958 0.986 1.000
Factor loadings (pattern matrix) and unique variances
Variable Factor1 Factor2 Factor3 Uniqueness KMO Value
fiph –0.056 0.4837 –0.270 0.6901 0.5759
genres 0.2998 0.4328 –0.203 0.6816 0.6023
ageres 0.5178 –0.185 –0.510 0.4378 0.7304
famsizres 0.7837 0.3793 0.1331 0.2242 0.6237
typfamres 0.7836 –0.155 0.0827 0.3553 0.7476
edulevres –0.823 0.2842 0.0977 0.2332 0.6942
maioccres 0.285 –0.278 0.7126 0.3336 0.7002
annincfam –0.314 0.5749 0.3421 0.4543 0.6714
nlf –0.804 –0.385 –0.155 0.1806 0.6258

Source: Author’s estimation using primary.

*: show that Chi2 value is statistically significant at 1% significance level.

Table 5. Proportion of factors, factors loading and unique variances in in agricultural inputs related variables.
Number of obs. 240 Number of params 21
2
Retained factors 3 Chi 1529.94*
Factor Factor1 Factor2 Factor3 Factor4 Factor5 Factor6 Factor7 Factor8
Eigenvalue 3.070 1.722 1.004 0.866 0.695 0.350 0.288 0.005
Difference 1.348 0.718 0.138 0.170 0.346 0.061 0.284 .
Proportion 0.384 0.215 0.126 0.108 0.087 0.044 0.036 0.001
Cumulative 0.384 0.599 0.725 0.833 0.920 0.963 0.999 1.000
Factor loadings (pattern matrix) and unique variances
Variable Factor1 Factor2 Factor3 Uniqueness KMO Value
fiph –0.092 0.915 0.091 0.147 0.5051
tagla 0.966 0.101 –0.015 0.056 0.4980
irrare 0.913 0.102 –0.007 0.157 0.4669
nonirrare 0.851 0.059 –0.005 0.272 0.4284
cdi 0.427 –0.080 0.177 0.780 0.9448
ualph –0.019 –0.082 0.981 0.030 0.1017
ficcph –0.077 0.917 0.011 0.153 0.5035
faph 0.618 –0.088 –0.036 0.609 0.8100

Source: Author’s estimation using primary data.

*: show that Chi2 value is statistically significant at 1% significance level.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Table 6. Proportion of factors, factors loading and unique variances in technological development and appropriate tech-
nology related variables.
Number of obs. 240 Number of params 11
2
Retained factors 2 Chi 4607.75*
Factor Factor1 Factor2 Factor3 Factor4 Factor5 Factor6
Eigenvalue 2.451 1.159 0.996 0.918 0.477 0
Difference 1.292 0.163 0.077 0.441 0.477 .
Proportion 0.408 0.193 0.166 0.153 0.080 0
Cumulative 0.408 0.602 0.768 0.921 1.000 1
Factor loadings (pattern matrix) and unique variances
Variable Factor1 Factor2 Uniqueness KMO Value
fiph 0.1880 –0.4966 0.7180 0.8867
cotepeha –0.1853 0.4202 0.7891 0.6819
ecoviatec 0.6622 –0.4557 0.3538 0.1695
socviatec 0.4683 0.7181 0.2651 0.1013
envviatec 0.8589 0.0939 0.2535 0.2394
apptec 0.9927 0.0565 0.0114 0.3225

Source: Author’s estimation using primary data.

*: show that Chi2 value is statistically significant at 1% significance level.

Table 7. Proportion of factors, factors loading and unique variances in institutional support and CAS related variables.
Number of obs. 240 Number of params 15
Retained factors 3 Chi2 101.57*
Factor Factor1 Factor2 Factor3 Factor4 Factor5 Factor6
Eigenvalue 1.586 1.310 1.009 0.917 0.677 0.500
Difference 0.277 0.300 0.092 0.240 0.177 .
Proportion 0.264 0.218 0.168 0.153 0.113 0.083
Cumulative 0.264 0.483 0.651 0.804 0.917 1.000
Factor loadings (pattern matrix) and unique variances
Variable Factor1 Factor2 Factor3 Uniqueness KMO Value
fiph 0.214 0.3195 0.8651 0.1037 0.4627
finpro –0.2867 0.7604 0.1311 0.3224 0.4488
finsupgov 0.7983 0.1583 –0.2062 0.2951 0.5042
farassstahol 0.4452 –0.1179 0.0245 0.7873 0.6882
skitecsupfar 0.6013 0.5667 –0.2841 0.2365 0.4713
adstfa 0.5111 –0.5186 0.3463 0.3499 0.5606

Source: Author’s estimation using primary data.

*: show that Chi2 value is statistically significant at 1% significance level.

4. Discussion on Findings variables may be worked as CAS in the cultivation. The

The results based on CFA indicate that climatic factors,
social-economic variables, CAS and institutional support
have an important contribution to the agricultural sector.
However, the roles of different categories of variables
were found to differ in the cultivation. Social-economic
factors such as the farmer’s age, family size, type of fam-
ily, education level and the number of livestock can be
applied as CAS in the cultivation. Gross cropped area,
irrigated area, crop diversification and application of
fertilizer are reported as vital agricultural inputs. These
government’s financial, skilled and technical support by
agricultural development agencies may be helpful for the
farmer to increase their intention toward CAS. Thus, most
social-economic and institutional support-related variables
work as CAS in the cultivation.
Evapotranspiration, maximum temperature, minimum
temperature, precipitation and rainfall were reported as
hidden variables in the group of climatic factors (Table
3). As these variables cannot be controlled by farmers,
thus, climatic factors can be considered exogenous vari-

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
ables in the agricultural production system. Here, it can be
argued that climatic factors work as crucial inputs during
various phases, i.e., sowing, growing and harvesting time
of a crop [1,9,16,20]. The plant growth of a crop can toler-
ate the impact of certain climatic factors up to a certain
extent. Subsequently, there is expected a non-linear and
hilly-shaped relationship between land productivity and
climatic factors [14]. Thus, the production of most crops
may decline due to high variability in climatic factors.
Accordingly, farm income per hectare may be declined
due to changes in climatic factors. The mentioned results
are consistent with previous studies like Singh et al. [5];
Angom et al. [14]; Singh and Issac [35]; Singh et al. [75] have
also reported the negative impact of climatic factors in
the agricultural and its associated activities in Gujarat.
Therefore, at present agricultural production activities are
in a vulnerable position due to climate change. Therefore,
there is indispensable to apply CAS to mitigate the nega-
tive impact of climate change in the agricultural sector.
Farmer’s age, family size, education level, annual
income and livestock seemed as latent variables in the
category of the social-economic profile of farmers (Table
4). Hence, the estimates demonstrated that productivity
and production of crops may be increased as the social-
economic status of farmers improves. Previous studies
also reported significant implications of mentioned vari-
ables in farming activities [5,12,19,68,73]. Age, family size
and education level of farmers have a substantial role in
farming activities. Educated farmers have more skills to
apply various CAS, inputs and farm practices in the culti-
vation to increase yield. Farm management practices and
productivity are to be improved as the involvement of
experienced farmers increase in the cultivation. The result
of the study also found a significant role of farmers’ age
in cultivation. Most family members of the farming com-
munity generally engaged in agricultural production ac-
tivities. Hence, land productivity increases up to a certain
level as the family size of farmers increases. Otherwise,
land productivity may be declined due to the applicabil-
ity of the law of diminishing returns in the agricultural
sector [1,16]. Farmers can use various inputs like new seeds,
fertilizer, pesticides and technology as their annual in-
come increases. Moreover, literate and experienced farm-
ers use different techniques of cultivation to increase farm
income [16]. Availability of physical assets (i.e., number
of livestock) also helps farmers to apply various CAS.
The mentioned findings are similar to existing studies
like Singh et al. [5]; Mitra et al. [12]; Basu [19]; Dhanya and
Ramachandran [68]; Singh [73]. Briefly, the farmer’s family
size, education level, annual income, family type and live-
stock seemed useful to mitigate the climate change impact
48
on farming activities.
Gross cropped area, agricultural labour, irrigated area,
crop diversification and fertilizer were noticed as latent
variables in the group of agricultural inputs (Table 6).
Therefore, these variables appeared as significant inputs
for the agricultural sector. Earlier studies like Ashraf and
Singh [5]; Kumar [9]; Kumar et al. [16]; Chandio et al. [22];
Ashraf and Singh [45]; Singh [73] have also noticed a posi-
tive impact of mentioned inputs in the agricultural sector.
Thereafter, income from cash crops farming also showed a
positive impact on farm income. Income from cash crops
farming is necessary to increase the economic capacity
of the farmers for purchasing new technologies, new va-
rieties of seed, irrigation resources, green fertilizers and
other inputs in cultivation. Hence, income from cash crop
farming may be beneficial for farmers to apply a climate
adaptation approach to avoid the risk of climate change
in the agricultural sector. Cash crop farming may be fa-
vorable to creating an agri-entrepreneurial ecosystem.
Farmers, therefore, should grow cash crops to get a better
return and increase CAS.
All components of appropriate technology appeared as
latent variables in the group of technological development
and appropriate technology-associated variables (Table
7). The estimates can be defensible that the application of
agricultural technologies is helpful to increase productiv-
ity and production of crops [6,13,44,46,50]. Cropping patterns
and crop diversification also improve as the use of tech-
nology increases in cultivation. Moreover, the application
of appropriate technology helps to save water, and human
resources, germination of seeds, seed fertility and increase
plant growth. The use of appropriate technology may also
reduce the fertilizer and pesticides, and waste materials in
the cultivation. Land management practices also improve
as the application of technology increases in the agricul-
tural sector. Furthermore, the use of appropriate tech-
nology enhances soil quality and fertility, water and air
quality, and other ecosystem services [5]. Subsequently, the
use of appropriate technology would increase sustainable
agricultural development. The CFA results of this study
proposed that appropriate technology and its dimensions
have a positive impact on the farming activities. The men-
tioned findings are consistent with previous studies [5,45].
Financial support from the government, farmer’s as-
sociation with stakeholders, skill and technical support
from technology developers and adaptation practices
seemed as latent variables among the institutional support
and CAS-associated variables. The abovementioned find-
ings are consistent with Naidu et al. [48]. The government
should provide subsidies on seeds, fertilizer, pesticides,
electric engines and irrigation sprinkler machines to the
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
farmers. The government also announced the minimum
support price (MSP) of food-grain and cash crops before
their sowing time. MSP will motivate the farmers to grow
a crop that provides them with better benefits. Moreover,
credit accessibility for farmers would also increase their
purchasing power to buy different inputs (i.e., seed, ferti-
lizer, pesticides, etc.) during the sowing time of crops. Ap-
propriate credit accessibility for the farming community
would also enhance the production and productivity of
crops. Kumar et al. [16] also found that credit accessibility
was a vital driver to increasing agricultural productivity in
Indian states. Agricultural development agencies, agricul-
tural cooperative societies, technology developers’ agen-
cies, and research institutions and agricultural universities
should provide training and organize various programs
for farmers to increase their awareness of new varieties
of seeds, fertilizer, technology and scientific methods of
cultivation. Therefore, institutional support has a positive
involvement to increase farm income [5,47]. It is consist-
ently accepted that climate change is highly responsible
to reduce the farm income and productivity of food-grain
and crops in India [1,8-10,15,22,23,25-29,32,36,59]. Therefore, CAS
may be effective to mitigate the climate change impact in
the Indian agricultural sector. Previous studies like Singh
et al. [5]; Mitra et al. [12]; Angom et al. [14]; Dhanya et al. [68];
Singh [73] have also observed a positive and significant role
of CAS in the Indian agricultural sector.
5. Conclusions and Recommendations
The prime aim of this study was to examine the im-
plication of climatic factors, social-economic variables,
agricultural inputs, technological advancement and ap-
propriate technology and institutional support and climate
adaptation strategy in the agricultural sector of Gujarat
using CFA. The CFA was run on 31 factors which were
divided into five different categories. Farm income per
hectare was treated as a dependent variable in every group
of variables. Subsequently, this study could find latent
variables in each category of a variable. These variables
can be used as a CAS by farmers to mitigate the adverse
impact of climate change.
The results based on CFA, demonstrate that the coeffi-
cient of variation in annual actual evapotranspiration, an-
nual average maximum temperature, annual average mini-
mum temperature, annual actual precipitation and annual
actual rainfall have a significant influence on farm income
per hectare. In the category of social-economic variables,
the farmer’s age, family size, type of family, education
level and a number of livestock have a vital contribution
to increasing farm income per hectare. Gross cropped
area, irrigated area, crop diversification and fertilizer
application seemed important agricultural inputs. Farm
income was also significantly linked with technological
development and appropriate technology. The govern-
ment financial support, farmer’s association with different
stakeholders, skilled and technical support for farmers
and CAS were also found vital determinants to increasing
farm income.
The study suggests policy recommendations such as
improving soil and seed quality, adopting green fertilizers,
implementing appropriate farm management practices,
and utilizing irrigation methods to mitigate the negative
impact of climate change on agriculture. Further, the study
recommends that future researchers consider the factors
that have minimal negative effects on the environment
and ecosystem services. Additionally, future studies could
investigate the categorization of appropriate technologies
and develop universally accepted indicators to determine
which technologies are most suitable for the agricultural
sector. Finally, replicating this study with larger samples
from different states in India could yield more robust find-
ings.
Author Contributions
The proposal for this article was prepared by Dr. Ajay
K. Singh and Shah Nawaz Ashraf. Dr. Shah Nawaz Ashraf
collected primary data from the selected respondents
through field surveys. Dr. Sandeep Kumar Sharma col-
lected the secondary data from various sources. Dr. Ajay
Kumar Singh completed the formulation of empirical
models and statistical inferences. Review of literature
was undertaken by Dr. Sandeep Kumar Sharma and Shah
Nawaz Ashraf. The final draft of this article was written
by all authors jointly.
Funding
No funding received.
Acknowledgments
The authors are thankful to the local farmers for giv-
ing their valuable time and support to provide the desired
feedback during field survey. The authors are also thankful
to the anonymous reviewers for giving their valuable time
and suggestions to increase the quality of this manuscript.
The authors also give their gratitude to the editorial team
of the journal for providing their valuable feedback and
comments to maintain the strength of this article.
Data Availability
The data presented in this study are available on re-
quest from the corresponding author.
49
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
Conflict of Interest
The authors declare no conflict of interest.
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Research on World Agricultural Economy

https://ojs.nassg.org/index.php/rwae

RESEARCH ARTICLE
Economic Analysis of Locally Produced Aquaculture Feeds with
Complements of Plant-based Ingredients in Kainji Lake Basin, Nigeria
Julius Emeka Omeje1* Anthonia Ifeyinwa Achike2 Godfrey O Nwabeze1
Lenient Mercy O Ibiyo3 Samuel Preye Jimmy4
1. Division of Socio-economics and extension services, National Institute for Freshwater Fisheries Research, P.M.B.
6006, New Bussa, Niger State, Nigeria
2. Department Agricultural Economics, University of Nigeria, Nsukka, 410105, Nigeria
3. Fish Nutrition Unit, National Institute for Freshwater Fisheries Research, P.M.B. 6006, New Bussa, Niger State, Nigeria
4. Department of Agricultural Economics, Extension and Rural Development, Niger Delta University, Bayelsa State,
560103, Nigeria

Abstract: Optimization through cost minimization is a key strategy aquaculture feed producers adopt to ensure a
continuous supply of fish in the global market. In light of this consideration, the study analyzed the economics of locally
produced aquaculture feeds by complementing fishmeal with plant-based sources of ingredients. Specifically, the study
estimated the cost and returns, socio-economic determinants of net income, and challenges of local feed production. Using
a survey design, a case study approach was used to collect data from 36 aquaculture feed producers/millers. The data were
presented using descriptive statistics, budgetary techniques, and two-stage least squares regression analysis. Key findings
established that the majority (78.12%) of aquaculture local feed producers were men, and 43.75% had tertiary educational
qualifications with a good number of years of experience. The profitability indicators show that aquaculture local feed
production is profitable with 3.24% net returns on investment. The result further indicates that the incorporation of plant-
based sources of ingredients reduced the utilization of Fishmeal (Clupeids) by 50%. Also, the regression analysis shows
that the years of experience and initial capital investment were statistically significant (p < 0.05) determinants of net
income while the major challenges in aquaculture local feed production were lack of perfect substitute for Fishmeal (x =
2.94), government regulations on the harvest of Clupeids used for Fishmeal (x =2.91), poor access to capital (x = 2.88) and
high cost of machine spare parts (x =2.88). Based on the findings, it is recommended that fish nutritionists should intensify
research on the production of fish feeds with a sole plant source of ingredients.

Keywords: Aquaculture; Feed; Plant; Fishmeal; Economics

*Corresponding Author:
Julius Emeka Omeje,
Division of Socio-economics and extension services, National Institute for Freshwater Fisheries Research, P.M.B. 6006, New Bussa,
Niger State, Nigeria;
Email: juliusomeje@gmail.com

Received: 6 December 2022; Received in revised form: 3 March 2023; Accepted: 10 March 2023; Published: 17 March 2023

Citation: Omeje, J.E., Achike, A.I., Nwabeze, G.O., et al., 2023. Economic Analysis of Locally Produced Aquaculture
Feeds with Complements of Plant-based Ingredients in Kainji Lake Basin, Nigeria. Research on World Agricultural
Economy. 4(1), 785. http://dx.doi.org/10.36956/rwae.v4i1.785

DOI: http://dx.doi.org/10.36956/rwae.v4i1.785
Copyright © 2023 by the author(s). Published by NanYang Academy of Sciences Pte. Ltd. This is an open access article under the Creative
Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License. (https://creativecommons.org/licenses/by-nc/4.0/).

54
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
1. Introduction
The contribution of aquaculture to fish-food production
has been on a steady increase over the past decades while
capture fisheries production has remained stagnated [1-3].
This is because fish is a primary source of protein, essen-
tial amino acids, fats, minerals and vitamins which neces-
sitates the increase in demand for fish in response to a ris-
ing population growth [1]. It is estimated that this demand
will continue to rise by more than 20 million tons over the
next few decades in order to keep a constant per capita
consumption [4]. According to FAO [1], aquaculture is seen
as the solution to the rising demand for fish. However,
the success of aquaculture depends on the availability, af-
fordability and formulation of aquafeeds (fish feeds) that
contain the required level of protein and energy necessary
for the growth of stocked fish [5].
It is estimated that approximately 70% of farmed fish in
Asia is raised with feed while the remaining 30% is raised
through traditional unfed systems which rely on fertili-
zation [1,3]. Fishmeal (FM) tends to be the most reliable
source of feed for cultured fish because it is considered to
be a highly digestible source of bioavailable nutrients for
cultured fish. However, the exploitation of Fishmeal poses
a serious economic and environmental concern. In Kainji
lake basin, Nigeria, the use of beach seine nets for the har-
vest of Clupeids, a major fishmeal ingredient in fish feed
has attracted both national and international condemnation
because of the obnoxious method used by fishers in its
harvest. Furthermore, from the an economic point of view,
the rising cost of Fishmeal as a result of an increase in the
demand for fish has made the cost of feed for aquaculture
a concern for the industry [1]. For example, the harvests of
marine ingredients by foreign vessels in West Africa have
limited the access and affordability of marine resources
for local consumption by the poor and vulnerable commu-
nities [6,7]. For this reason, an alternative source of protein
and energy mainly from the plant was proposed. Soybean
meal combined with other sources such as rice bran,
wheat bran and corn flour along with fish waste to produce
low-cost pelleted fish feeds using indigenous machinery
(pelletizer, crusher, mixer, etc.), was found to be a close
substitute for Fishmeal. However, such an alternative is
known to have a lower nutritional value than Fishmeal [8].
Plant-based sources of feeds for cultured fish are read-
ily available in the global market and have shown to have
suitable nutritional profiles as they possess the ability to
compete with Fishmeal [9-12]. This is because the availabil-
ity of local ingredients attracts labour from the household
at a lower opportunity cost, thus reducing the overall cost
of production and increasing the resulting profit margins [5].
This was supported by Mmanda et al. [13] that in an attempt
to reduce the cost of production, fish farmers relied on
locally available feed ingredients to supplement the diets
of farmed fish. Hence, the identification and use of cheap,
locally available ingredients would improve the long-
term sustainability of aquaculture. However, Blanchard
et al. [14], Froehlich et al. [15], Malcorps et al. [16], Roberts
et al. [17] reported that the transition towards the use of
plant resources in combination with the rise in aquaculture
output could potentially add more pressure on the necessary
agricultural resources with resultant socioeconomic and
environmental impacts. For example, according to World
Bank [18], the exploitation of soya beans for both human
and animal needs has resulted in a two-fold increase in the
global market price for soya beans between 2000 and 2018.
However, irrespective of this resultant price surge, the use
of plant sources for fish feed formulation remains the clos-
est alternative to the high cost of Fishmeal.
The cost related to fish feed remains a major issue, es-
pecially among small-scale fish farmers in the aquaculture
industry [19]. This is because feed accounts for over 70%
cost of producing a table-size fish [20,21]. However, to maxi-
mize profit through cost minimization, there has been a
substantial improvement in the technology of processing
locally pelleted fish feeds in recent years. The use of hand
mixing has been replaced with a well-modernized model
of indigenous machinery comprising a crusher, pelletizer,
mixer, etc. This technology can be set up at the fish farm
sites, while the composition of the mixed ingredients and
the size of the pelleted feed can be changed considerably
depending on the age and specie of farmed fish.
In light of these considerations, this study is limited
in economic analysis of locally produced aquaculture
feed used in Kainji Lake Basin. Jewel et al. [5] analysed
the economic return among different low-cost feed types
while Rashid and Kurt [19] carried out a techno-economic
analysis of extruded aquafeeds. Nwabeze et al. [22] on the
other hand, analysed the profitability of fish production in
Kainji Lake Basin; hence, the need to evaluate the socio-
economic determinants of net income by this study used
a two-stage least square technique. It is based on this
background the study analysed the economics of locally
produced aquaculture feeds in Kainji Lake Basin Nigeria.
Specifically, the study:
i. Examined the socio-economic characteristics of the
local fish feed producers;
ii. Estimated the cost and returns in local fish feed pro-
duction;
iii. Evaluated the effects of the socio-economic factors
on net income; and
iv. Identified the challenges of local fish feed production.
55
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

2. Materials and Methods nary least-squares regression to give consistent parameter

estimates. The failure is a result of the violation of an es-
2.1 Study Area sential condition of regression analysis, i.e. the error term
Kainji lake basin is situated within Latitudes 9°50’ and must be uncorrelated with the independent variables.
1°55’ North and Longitudes 4°23’ and 4°51’ East Niger The structural equation is specified thus:
and Kebbi State, Nigeria [23]. The area has huge potential for Y= βo+ β1X1 +b2X2 + β3X3 + β4X4 + β5X5+ε  (4)
aquaculture development with Catfish and Tilapia species where, Y = net income (N), X1 = Years in school (Years), X2
the dominant aquaculture species cultured in the area [23,24]. = Experience (Years), X3 = age (Years), X4 = initial capital
Kainji lake comprises about 316 fishing communities (N), X5 =household size (Number) and ε = error term.
demarcated into 3 strata namely: upper stratum (northern However, X1 is endogenous because it correlates with
basin), middle stratum (central basin) and lower stratum an immeasurable variable “ability” that is accounted for
(southern basin). However, aquaculture activities actively by ε. An instrumental variable “parents’ income” was
take place in the lower stratum (southern basin) which in uncorrelated with ε; hence, used for the estimation of the
turn, promotes the activities of other value chains such as reduced form of the equation using two-stage least square
feed milling, processing and marketing. regression analysis as specified thus:
2.2 Procedure for Data Collection and Analysis X1= πo + π1Zi + π2X2 + π3X3 + π4X4 + π5X5  (5)
where, Zi = parents’ income and π1 ≠ 0.
A case study approach was used in this study. Due to
the limited number of feed millers in the area, a census 2.5 Liker-type Rating Scale
was conducted and 36 feed producers or millers formed
the population of the study. These feed millers were con- A 4-point Likert-type scale rating technique was em-
centrated in three (3) communities which include Wara, ployed to achieve part of objective (iv) in this study. Re-
New Bussa and Monai communities. From the communi- spondents gave qualitative responses which were rated as
ties identified, 18 feed millers from New Bussa, 16 feed Very Serious Challenge (VSC), Serious Challenge (SC),
millers from Monai and 2 feed millers from Wara Com- Mild Challenge (MC) and Not Serious Challenge (NSC)
munities made up the respondents of the study. Primary with corresponding values of 4, 3, 2, and 1 respectively.
data were collected with questionnaires that were admin- The mean score of the respondents based on the 4-point
istered through an interview rating scale was computed as specified below:
mean, percentages
mean, percentages and barschedule.
and bar charts.
Databudgetary
charts. The
The collected technique
budgetary technique was used
was used toto estimate
estimate thethe profitability
profitability
were presented using descriptive statistics such as mean, 4 + 3 + 2 +1
= 2.50
indices in
indices
percentagesin and
thebar
the feed
feed while
while
charts. Theaabudgetary
two-stage
two-stage least square
least
technique square
was regression analysis
regression analysis waswas
4 used to
used to evaluate
evaluate thethe
used to estimate the profitability indices in the feed while
socioeconomic determinants
socioeconomic determinants of of net
net income.
income. TheThe models are cut-off
A 2.50 specified
pointas thus.
using the interval scale of 0.05 was
a two-stage least square regression analysis was used tomodels are specified as thus.
adopted; the upper limit cut-off point was 2.50 + 0.05 =
evaluate the socioeconomic determinants of net income.
2.55 while the lower limit cut-off point was 2.50 – 0.05 =
2.3 Profitability
2.3
The Profitability
models Indices
Indices
are specified as thus.
2.45. Based on this, any score below 2.45 (MS < 2.45)
2.3 Profitability Indices was taken as a weak factor and not considered while those
Net Income
Net Income after
after Tax
Tax (NIAT)
(NIAT) with a mean score of above 2.55 (MS > 2.55) were taken
Net Income after Tax (NIAT) as strong factors and considered.
Revenue-Total expenses
NIAT= Revenue-Total
NIAT=
NIAT= Revenue-Total expenses(1)
expenses ((1)
1)
NetProfit
Profit Margin 3. Results and Discussion
Net
Net Profit Margin
Margin

Net Profit Margin= 

Profit Margin=
    
 3.1 Socio-economic Characteristics
(2)
of Aquaculture
Net ∗∗100
100 (2) (2)
   Local Feed Producers
where, Revenue=Unit
where, Revenue=Unit Price*
Price*Quantity
Quantity sold
sold
sold. The result of the socio-economic characteristics of
Return
Return on
onInvestment
Return on Investment
Investment aquaculture local feed producers is presented in Table 1.
(3) From the results of the analysis, 53% ((3)
of the feed produc-
   
Return
Returnon
Return Investment ==   
on Investment
 

 

*100 
*100 3)
 ers were within the age bracket of 31-40 years, while
43.75% and 3.13% were between the age of 41-50 and 21-
2.4Two-stage
2.4
2.4 Two-stageLeast
Two-stage Least
Least Square
Square
Square Regression
Regression Analysis
Analysis
Regression Analysis 30 years respectively. The mean age was 39.78, which in-
A two-stage least-square regression analysis was used dicates that the majority of the feed producers were within
AA two-stage
two-stage least-square
least-square regression
regression analysis
analysis was
was used
used toto address
address the
the failure
failure ofof the
the
to address the failure of the structural equation in ordi- the economically active age group that a good sign for
structural equation
structural equation in
in ordinary
ordinary least-squares
least-squares regression
regression to
to give
give consistent
consistent parameter
parameter estimates.
estimates.
56
The failure
failure isis aa result
result of
of the
the violation
violation of
of an
an essential
essential condition
condition of
of regression
regression analysis,
analysis, i.e.
i.e. the
the
The
error term
error term must
must be
be uncorrelated
uncorrelated with
with the
the independent
independent variables.
variables.
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

the further development of the fish in the feed producing- sented in Table 2 and Table 3. The result showed that an
industry. Omeje, Sule and Aguihe [20] reported that entre- estimated initial cost of N5,482,644 was incurred by the
preneurs within the economically active age possess the local feed producers with a total operational expense of
potential to expand their businesses for higher income. N11,686,580.9 per month while the average revenue was
This result is similar to the result of Nwabeze et al. [22] that N12,065,455 per month. The net income received was
fish feed producers in Kainji Lake Basin had a mean age N378,874.1 per month which indicates that the local aqua-
of 41 years. Hence, one can see that the aquaculture local culture feed producers receive a higher return in excess of
feed producing industry has witnessed an influx of young operation cost. This indicates that the business of local fish
people who have taken up the responsibility of investing feeds production is profitable as supported by the result of
in local feed production. Nwabeze et al. [22] that fish feed enterprises make profits
The result shows that the majorities (78%) of the feed per unit Kg of fish feed produced. Also, profitability indi-
millers were men, 3.13% were women and 18.75% were cators show that the net profit margin was 3.14% which
male youths. This clearly shows that the feed-producing implies that for every N1 received as revenue, the aqua-
industry in Kainji Lake Basin is dominated by men. This culture feed producers received 3.14 kobo as profit while
is in consonance with the result of Nwabeze et al. [22] that the Return on Investment (ROI) of 3.24% indicates that
the majority (89.7%) of fish feed producers were male. for every N1 invested in the local fish feed business; 3.24
Although the representation of the youths in the industry kobo was received as Return on Investment. The Benefit
is quite commendable, the women on the other hand, had Cost Ratio (BCR) was 1.03, indicating that the business of
a low representation in the industry probably due to the local fish feed production is viable. Jewel et al. [5] affirmed
high capital and labour-intensive nature of the operation. that a BCR of > 1 is an indication of viability in fish feed,
The result for experience shows that 56.25% of the thus implying that local fish feed producers operate a vi-
feed producers had an experience of 1-5 years, 34.38% able business through innovation and utilization of local
and 9.37% had been in the aquaculture feed-producing ingredients for feed formulation and production.
business for 6-10 and 11-15 years respectively. It’s inter-
esting to note that feed producers with longer years of ex- Table 1. Socio-economic characteristics of aquaculture
perience will capitalize on their wealth of knowledge and local feed producers (N = 36).
skills gained for the sustainability of their enterprise and Variable Percent Mean
profitability. This supports the report of Onyekuru et al. [21] Age (years)
that a long year of experience is a necessary prerequisite 21-30 3.13
for high productivity. Also, good years of experience in 31-40 53.12
41-50 43.75 39.78
networking with other actors in the value chain can be an
>50 0.00
added advantage with respect to participation and benefit-
ing from any form of intervention in the value chain. Gender
The result for years in school and level of education Men (male > 35 years) 78.12
shows that the majority (59.38%) of the feed produc- Women (female > 35 years) 3.13
Youths (male/female < 35 years) 18.75
ers spent between 11-15 years in school with 40.63%
and 43.75% attaining the secondary and tertiary level Experience (years)
of education respectively (Table 1). This shows that the 1-5 56.25
feed producers have attained a good level of education 6-10 34.38
to read, understand and take an informed decision which 11-15 9.37
>15 0.00 6.41
can be a positive factor in adopting new techniques in the
feed-producing industry. This agrees with the statement Years in School (Years)
of Ogunmefun and Achike [25] on the relevance of a high 6-10 25.00
level of education in the adoption of new techniques. In 11-15 59.38
addition, a good level of education is an asset to support 16-20 15.62
learning and training to acquire technical knowledge and >20 0.00 12.58

skills to improve the efficiency of production.

Level of Education
Primary 15.62
3.2 Estimation of Cost and Returns in Aquacul- Secondary 40.63
ture feeds Tertiary 43.75

The result for the estimates of cost and returns is pre- Source: Field survey, 2020.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

In addition, the analyzed data show that the use of
plant-based sources of ingredients as complements of
Fishmeal has reduced the cost of using Fishmeal as the
sole protein source of ingredients by 50%. This means that
there is a trade-off between the use of these ingredients in
order to ensure the sustainability of aquaculture as well
as the protection of natural bio-resources. Hence, giving
credence to Hassaan et al. [9], Davies et al. [10], El-Husseiny
et al. [11], Goda et al. [12] that plant sources of ingredients
have suitable nutritional profiles as they possess the abil-
ity to compete with Fishmeal.
3.3 Socio-economic Determinants of Net Income
in Aquaculture Local Feed Production
The socio-economic determinants of net income are
presented in Table 4. The OLS estimates showed that the
variables: years in school, experience and Initial capital
investment were positive and statistically significant de-
terminants of net income at a 5% level of significance.
However, due to the presence of endogeneity with the
variable “Years in School” which was assumed to be cor-
related with an immeasurable variable “ability”, a two-

Table 2. Fixed cost schedule in aquaculture local feed production.

Item Average quantity Cost (N) Lifespan (Years) Salvage Value (N) Depreciation (N)
Land 887878.79 -
1 plot - -
Building 2545454.55 89772.73
1 bungalow 20 750000
Hammer Mill 489393.94 18855.22
1.03 18 150000
Crusher 375757.58 15050.51
1.15 15 150000
Pelletizer 1148456.06 39897.07
1.21 15 550000
Bowls 3727.27 645.45
5.23 5 500
Spreading Mats 28727.27 9075.76
4.16 3 1500
Rakes 3248.48 916.16
2.54 3 500
Total 5482644 174212.90

Source: Computation from field survey, 2020.

Note: Straight Line Method of Computing Depreciation= (Total Cost-Salvage Value)/Lifespan

Table 3. Cost and return analysis of aquaculture local feed production.

Mean Unit Price/
Item Mean Number Total Price/Cost (N) Share of Total Cost (%)
ton (N)
Revenue (N)
a. Working days/Month 24.00
b. Tons/day 2.1
c. price/Ton 239393.94
TR/M=(c*b*a) 12065455.00

Expenses/Month
Groundnut cake (GNC) 50.4 34000.00 1713600.00 14.66
Soybean 50.4 35500.00 1789200.00 15.31
Fishmeal(Clupeids) 50.4 114545.45 5823490.68 49.83
Energy (maize or millet) 50.4 34212.12 1724290.85 14.75
Ascorbic 50.4 1936.36 97592.54 0.84
Methionine 50.4 2293.94 115614.58 0.99
Premix 50.4 3000 151200.00 0.04
Electricity bill 1 5151.52 5151.52 0.004
Levy 1 515.15 515.15 0.02
Water 50.4 218.18 2520.00 1.49
Depreciation 1 174212.90 174212.9 1.29
Labour 4.2 21236.36 89192.71 0.76
Total 11686580.93 100

Net income=Revenue-Total expenses 378874.07

Net Profit Margin 3.14%
Return on Investment (ROI) 3.24%
Benefit Cost Ratio (BCR) 1.03

Source: Computation from field survey, 2020.

Note: Total price=Mean unit price * Mean numbers

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

stage least square (2sls) regression analysis was conducted
with an instrumental variable (IV) “parent’s income”. This
is because the higher the income of the respondents’ par-
ents, the more likely they will spend more years in school
ceteris paribus. The resultant analysis of the 2sls shows
that experience was positive and statistically significant
(p < 0.05) on net income. This means that an increase in
the years of experience will increase the net income of
aquaculture local feed producers. Similarly, Onyekuru,
Ihemezie and Chima [21] reported that individuals with
long years of experience are expected to be more produc-
tive than those with shorter years of experience. This is
because exposure to product management through the
years is an indication of mastery, technology adoption and
utilization of scarce resources for profitability.
Also, the variable for Initial Capital investment was
positive and statistically significant (P < 0.05) on the net
income of aquaculture local feed producers. This implies
that the higher amount invested in fixed and variable as-
sets will result in an increase in the net income of aquacul-
ture local feed producers. The amount invested as initial
capital is an indication of the level of capacity the firm
can manage at a specific period of time. Eke and Effiong [26]
posited that capital accumulation is a positive determinant
of output, hence implying that enterprises with a higher
investment in initial capital will generate more revenue
with a resultant net income than firms with lower invest-
ment in initial capital.
The R-square was 0.8022 which means that the socio
economic variables used in this analysis account for about
80% of the variation in the net income of aquaculture lo-
cal feed producers.
3.4 Challenges in Aquaculture Local Feed Production
The challenges in aquaculture local feed production are
presented in Figure 1. From the result of the Likert-type
scale analysis, the lack of a perfect substitute for Fishmeal
(x =2.94), government regulations on the harvest of Clu-
peids used as Fishmeal (x =2.91), poor access to capital

Table 4. Socio-economic determinants of net income.

OLS estimates 2sls estimates
Variable Coefficients T Coefficients T
Years in schools 0.2175 2.19* 0.4123 1.56
Experience 0.2584 3.80** 0.2602 3.60**
Age 0.3326 1.40 0.2373 0.88
Initial Capital 0.1671 2.71* 0.1500 1.97*
Household size 0.0221 0.42 –0.0731 –1.05
Constant 8.1339 8.4701
R-squared 0.8091 8.51** 0.8022 8.76**
Prob>F 0.000 0.000

Source: Computation from field survey, 2020.

*significant at 0.05, **significant at 0.01.

Figure 1. Challenges of aquaculture local feed production.

Source: Computation from field survey, 2020.
Note: >2.5 = serious challenge.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
(x =2.88) and high cost of machine spare parts (x =2.88)
were found as serious challenges in aquaculture local feed
production. Although the use of plant sources has been
largely used in local feed production, the feed producers
still consider the incorporation of Fishmeal (Clupeids) a
very important ingredient in aquaculture local feed pro-
duction. This is because of the nutritional components of
Fishmeal and fish oil in addition to its high level of digest-
ibility for cultured fish [1]. Furthermore, regulations by the
government in the conservation of fish species in Kainji
Lake Basin have placed local feed producers in disarray
of finding a perfect substitute for Clupeids. This calls for
extensive research on the production of fish feed with
plant sources as sole ingredients. Also, Nwabeze et al. [22]
reported that poor access to credit facilities and the high
cost of replacing worn-out machine parts were among the
leading challenges encountered by fish-feed producers.
Generally, significant capital is required to operate a feed
mill [27], this is because the feed mill components such as
pelletizers, silos, crushers, hammer mills, etc are quite
expensive to procure. In addition, these implements are
mostly imported, hence necessitating the need for local
fabrication of worn-out parts for the sustainability of aq-
uaculture local feed production.
4. Conclusions and Recommendations
The study established that the majority of aquaculture lo-
cal feed producers were men, who had tertiary educational
qualifications with a good number of years of experience.
The profitability indicators show that aquaculture local feed
production is profitable with high net returns on invest-
ment. Also, the result shows that the use of plant-based
sources of ingredients reduces the utilization of Fishmeal
in feed production by 50%. Furthermore, the results of the
regression analysis indicate that the years of experience
and initial capital investment were significant determinants
of net income while the major challenges in aquaculture
local feed production were the lack of a perfect substitute
for Fishmeal, government regulations on the harvest of
Clupeids used for Fishmeal, poor access to capital and high
cost of machine spare parts. From the findings of this study,
it is recommended that fish nutritionists should intensify
research on the production of fish feeds with a sole plant
source of ingredients. Also, local fabrication of feed mill
components should be encouraged through the training of
technical engineers and local fabricators.
Authors Contributions
Omeje, J.E. (35%): Conceptualization, Research Design,
Data Collection and reporting. Achike, A.I. (20%): Supervi-
sion. Nwabeze, G.O. (15%): Data Collation. Ibiyo, L.M.O.
60
(15%): Supervision. Jimmy, S.P. (15%): Data analysis.
Funding
This study was funded by the research and technical divi-
sion of National Institute for Freshwater Fisheries Research.
Data Availability
The data used for this study are available on request
from the corresponding author.
Conflict of Interest
There was no conflict of interest at every stage of this
research.
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Research on World Agricultural Economy

https://ojs.nassg.org/index.php/rwae

Cluster-based Improved Sorghum Production and Commercialization

in Nyangatom Woreda of South Omo Zone, Southern Ethiopia
Awoke Tadesse1* Asmera Adicha2 Tekle Yosef1 Anteneh Tadesse1
1. Crop Research Directorate, Jinka Agricultural Research Center, P.O.Box 96, Jinka, Ethiopia
2. Agricultural Economics and Gender Research Directorate, Jinka Agricultural Research Center, P.O.Box 96, Jinka,
Ethiopia

Abstract: Cluster-based improved sorghum (Melkam variety) production and commercialization was demonstrated
in Nyanghtom Woreda of the South Omo Zone for one year (2021) to improve agro-pastoralists’ awareness, enhance
the adaptation of full-package production technologies, and increase the economic visibility of improved sorghum
cultivation. The production was started in a single kebele with a 7-hectare area of coverage. Twenty-five purposively
selected direct beneficiaries and twenty-five randomly selected indirect beneficiaries from a neighbor were involved
in the production. Direct beneficiaries cultivated sorghum on 0.28 hectares of land. At various stages of crop growth,
monitoring, evaluation, and fieldwork were done by both beneficiaries and indirect beneficiaries. Face-to-face interviews
with sorghum producers and non-producers were undertaken. Simple descriptive statistics were used to examine
quantitative data, like grain yield, whereas the Likert scale was used for qualitative data such as agro-pastoralists
perceptions. The result revealed that 30 quintal sorghum grain yield per hectare was obtained from improved sorghum
(Melkam variety). The average return obtained from the sale of sorghum grain per hectare was 120,144 ETB. Agro-
pastoralists’ perception result revealed that the “Melkam” variety is a higher yielder, and early matured as compared to
local. Therefore, cluster-based sorghum production should be promoted for local sorghum growers in order to improve
sorghum production sustainability and also seed system should take into account the provision of improved Melkam
variety seed.

Keywords: Cluster-based; Sorghum; Grain; Agro-pastoralist preference

It emerged in semi-arid tropical Africa and is now one of

1. Introduction
“Sorghum (Sorghum bicolor (L.) Moench) is a member
of the Poaceae family and is the fifth most significant ce-
real in the world, behind wheat, maize, rice, and barley”.
the most significant cereal crops farmed in arid and semi-
arid regions of the world. Sorghum is a crop that is best
suited for arid climates and countries with unpredictable
rainfall because of its tolerance to drought. It may be cul-

*Corresponding Author:
Awoke Tadesse,
Crop Research Directorate, Jinka Agricultural Research Center, P.O.Box 96, Jinka, Ethiopia;
Email: awoketadese3@gmail.com

Received: 6 February 2023; Received in revised form: 19 March 2023; Accepted: 27 March 2023; Published: 30 March 2023

Citation: Tadesse, A., Adicha, A., Yosef, T., et al., 2023. Cluster-based Improved Sorghum Production and Commer-
cialization in Nyangatom Woreda of South Omo Zone, Southern Ethiopia. Research on World Agricultural Economy.
4(1), 809. http://dx.doi.org/10.36956/rwae.v4i1.809

DOI: http://dx.doi.org/10.36956/rwae.v4i1.809
Copyright © 2023 by the author(s). Published by NanYang Academy of Sciences Pte. Ltd. This is an open access article under the Creative
Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License. (https://creativecommons.org/licenses/by-nc/4.0/).

62
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
tivated in a variety of ecological circumstances, including
ones that are adverse for most cereals [1]. Various domestic
uses exist for sorghum grain such as making porridge, Ne-
fro, baby food, syrup, and regional drinks like Tella and
Areke for humans. “Moreover, its leaf and stalk are also
used for animal feed and further the stalks are used for the
construction of houses and fences and as fuel food”.
South Omo Zone is one of the arid and semi-arid areas
of Ethiopia and sorghum is the major crop produced in the
area. The area coverage of sorghum in the zone is around
15,739.02 ha, the total production is 33,686.6 tons and the
average productivity of sorghum is 2.1 t·ha–1 [2]. However,
the productivity achieved is a lower yield that can be ob-
tained under ideal management conditions (4.5 t·ha–1 to
5.0 t·ha–1) [3]. This yield gap needs research to improve
production and productivity in the area. In response to
this Jinka agricultural research center has conducted sor-
ghum varieties and agronomic management experiments
at Nyangatom and Dasenech woreda of the south Omo
zone (2019 and 2020) cropping seasons and Melkam sor-
ghum variety and its agronomic management which gave
higher yield (3.3 t·ha–1 to 5.4 t·ha–1) were recommended
for further production in the area. And other previous
works by different scholars (Tekle and Zemach [4]; Fuad
et al. [5]; Abebe et al., [6]; Melese [7]) focused on perfor-
mance evaluation of sorghum varieties in arid and semi-
arid areas to enhance productivity. However, less emphasis
has been given to commercializing sorghum production as
compared to other cash crops like cotton and banana. This
might be due to a lack of awareness about the importance
of producing sorghum at the commercial level. Therefore,
the present study was conducted (1) to demonstrate im-
proved sorghum variety and create awareness of a cluster-
based approach along with its improved package and (2)
to determine the profitability of Melkam sorghum variety
production under irrigation conditions in South Omo
zone, Ethiopia.
2. Materials and Methods
2.1 Study Area
The study was carried out in Nakriaman kebele,
Nyanghtom district of South Omo Zone. The district is
bordered on the south by Omo Kuraz, on the west by the
Ilemi Triangle (claimed by Ethiopia, Kenya, and Sudan),
on the northwest by the Bench Maji Zone, on the north by
Salamago, and on the east by Hamer. The Omo River is
flowing along the northern and western border of Nyang-
htom. The district is located at 5°05’-5°21’ North latitude
and 35°55’-36°14’ East longitude and the altitude lies
between 380 and 497 meters above sea level. The total
population of the district is estimated to be 11375 of those
11187 were male and 22562 were female [8]. “The majority
of economic activity that has prevailed in the study area is
low-input/low-output livestock and small-scale sorghum,
maize, and banana production using flood irrigation from
the Omo River”. Cattle, sheep, donkeys, and goats are the
main indigenous livestock species that have been kept in
the study area.
2.2 Agro Pastorals Selection and Cluster-based
Approach
A basic criterion to select a host kebele was land ac-
cessibility, irrigation facility, and agro-pastoral interest in
growing sorghum for home consumption and seed produc-
tion for future use. Consequently, Jinka agricultural re-
search center established one improved sorghum-producing
pastoral and agro-pastoral research and extension groups
(PAPREGs), which contained about 25 direct beneficiar-
ies and 25 indirect beneficiaries from Nakriaman kebele in
collaboration with the district Pastoral and Agro Pastoral
Affairs Office and Agriculture and Natural Resource Man-
agement Office. Of the total fifty agro-pastoralists, twenty-
five were selected purposively as they were experimental
units on which the experiment was conducted whereas the
rest twenty-five were randomly selected from a neighbor
so as to share experiences with direct beneficiaries.
Cluster farming represents horizontal and vertical
interactions between related and neighboring farmers/
agro-pastorals in agricultural production, processing, and
marketing, and these interactions promote institutional in-
novations in support to reinforce farmers/agro-pastoralist
in facing constraints; hence they achieve productivity im-
provement and are key for creating brand identities [9,10].
And also, cluster farming is important for smallholder
farmers to use agricultural mechanization, supply inputs
collectively, and create output market linkage, and has
effects on some agricultural crop’s commercialization in
terms of productivity [11].
2.3 Site Selection and Agronomic Management
Each member of the pastoral and agro-pastoral research
and extension group has allocated 0.28 ha of land, and
a total of 7 ha of land per group were cleaned, plowed,
disked, harrowed, and ridged 75 cm using tractors and
corrected by laborers of the members. Sorghum seed was
sourced from Jinka Agricultural Research Center and
sown by drilling with a seeding rate of 15 kg/ha at a 25
cm interval between rows. The use of improved input is
one means of increasing agricultural production and pro-
ductivity such as seeds, fertilizer, and chemicals. Thus,
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
50 kg/ha of NPSB and 50 kg/ha Urea at planting and 50
kg/ha Urea at knee height, 4 liters of Diaznole @5%, and
1 liter of Karate @5% were used for this demonstration
activity. Besides, agronomic management such as thin-
ning, weeding, irrigating, pest management, harvesting
time, and post-harvest handling was conducted timely
by the pastoral and agro-pastoral research and extension
group with intensive follow-up of researchers and experts.
2.4 Training and Awareness Creation
Practically, on-farm training was given to agro-pasto-
ralists, members of PAPREGs, and development agents
of kebeles to create awareness and improve the associated
skill gap on improved sorghum production. Mainly was
provided on proper site selection, land preparation, sow-
ing/drilling the seed, chemical application, fertilizer rate,
irrigation frequency and time of application, and all agro-
nomic practices.
2.5 Monitoring and Evaluation
Monitoring was conducted starting from land prepara-
tion till up to the final yield harvesting. During monitoring
frequent contact with participant agro-pastoralists and
kebele development agents, getting feedback, and provid-
ing technical advice were done. “A discussion was held
among the stakeholders on the way forward, and some
additional roles might be identified, and roles and respon-
sibilities were shared for the next contributions along the
production chain of improved sorghum production and
cluster-based demonstration”.
2.6 Field Day and Agro-pastoralist’s Perception
At the end of the field activity (crop maturity stage)
was conducted to further promote the sorghum production
technology. As field day is means of agricultural extension
events to accelerate the popularization of new or improved
agricultural technologies to agro-pastorals, develop-
ment agents, and key stakeholders. “A total of 148 agro-
pastoralists (44 men and 104 women), 6 development
agents and 19 experts from woreda agricultural offices,
12 researchers, and 37 different stockholders from federal
and regional offices participated in field day”. Besides, the
field day program was transmitted on the news program
by Debub television to disseminate information to the
wider public. “A total of 250 leaflets were distributed to
the participants which describe the production, agronomic
practices, and overall management of improved sorghum
varieties”. Finally, at the end of the field day, a group
discussion was held to grasp agro-pastoralists’ feedback
on the strength and weaknesses of the improved sorghum
64
variety (Melkam variety). Besides, the demand for the
Melkam sorghum variety has been created and most of
the agro pastorals raised a timely supply of seeds. Moreo-
ver, the perception of participant agro-pastoralists was
collected to know their awareness towards the improved
sorghum production. Accordingly, agro-pastoralists’ inter-
est in the production of the Melkam sorghum variety was
high mainly because of its uniformity, yield advantage,
and early maturity characteristics. Data were collected by
face-to-face interviews with 25 PAPREGs members who
produced sorghum and 25 non-producers or research ex-
tension group using structured questionnaires prepared for
this purpose.
2.7 Method of Data Analysis
Both qualitative and quantitative data were collected
from early plantation to final seed harvesting and thresh-
ing. Qualitative data such as the agro-pastoral perception
towards improved sorghum production and their varietal
preference was collected. Quantitative data such as the
cost of input items used and the amount of seed produced
were collected. “The collected data were analyzed using
simple descriptive statistics (percentage and mean) and
the Likert scale. A benefit and cost ratio was used to ana-
lyze the cost of production and profit from the business
enterprise”.
3. Results and Discussion
3.1 Household and Socio-economic Characteris-
tics of Pastoral and Agro-pastoral Research Ex-
tension Members (PAPREGs)
The household and socioeconomic characteristics of
PAPREGs in the study area are presented in Table 1. The
result on household characteristics revealed that the ma-
jority (52%) of sorghum producers were female-headed,
while about 48% were male-headed agro-pastoralists.
“It is obvious that in agro-pastoral areas of South Omo,
the females are more involved in agricultural activities
like planting, weeding, harvesting, and threshing than the
males, aside from house routine activities such as prepar-
ing dishes, clearing house and barn, caring for children,
fetching water and firewood”. “This is because, culturally,
males were paid more money during marriage time than
female families, and they were considered slaves, allow-
ing females to be more involved in agricultural activities
than males”. “They reported that most of the time, males
were involved in plowing land and herding cattle rather
than planting, weeding, and harvesting”. “Similarly, the
studies reported by Hidosa & Ayele [12] from pastoral and
agro-pastoral areas of Hamer and Bena-Tsemay districts
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

in South Omo have shown that most of the time, females
were involved in agricultural activities like planting,
weeding, and planting, in addition to house routine activi-
ties, while the cattle were herded by males”.
Concerning education level, the mean grade the sam-
pled PAPREGs attained was grade two with minimum
illiterate and a maximum grade of nine. This indicates that
the education level of sampled PAPREGs is low and there
is a dominance of illiteracy in the area as the study is a
remote area. The minimum and maximum family sizes of
households were three and nine. The average mean fam-
ily size of the respondents who were involved in sorghum
production in the study area was 6. The minimum was
3 and the maximum was 12. The maximum family size
might be due to the polygamy practice of marriage in the
area. Large family size in a family household contributes
significantly to labor contribution during sorghum produc-
tion and there is no labor shortage problem in the study
area. The study by Adane et al. [13] reported that the aver-
age family size of 6.19 persons per agro-pastoral house-
hold in the Bena-Tsemay district of the South Omo zone.
production practices and other experiences. Whereas about
24% replied that being in a cooperative is vital to share
seed with other agro-pastorals or with each other and be-
come seed sources for further sorghum production in the
area. The remaining 16% of agro-pastoralists said that
cultivating sorghum in PAPREGs gives them access to
irrigation and other new technological access like chemi-
cals and fertilizer inputs. “Several empirical studies have
shown that agricultural cooperatives raise farm output by
encouraging the use of productivity-enhancing technologi-
cal options and thereby enhancing their collective bargain-
ing power, which reduces the market risks they may face.
Furthermore, they provide member farmers/pastoralists
with financing options that raise productivity ceilings and
are essential for the distribution of agricultural products
like chemical fertilizers, seeds, and other inputs” [14,16,17].
Table 1. Household and socioeconomic characteristics of
PAPREGs.
Characteristics of
Minimum Maximum Mean Std. Dev.
respondents

“Regarding sorghum production experience in the area, Age of household (year) 25 50 36.08 8.02
the findings of this study indicated that the minimum year Family size (number) 3 12 6.44 2.18
of experience for agro-pastorals who have been involved Education level (grade) 0 9 2.24 3.31
in sorghum production was two years, while the maxi- Experience in sorghum
2 20 4.32 3.67
mum was 20 years, and on average about 4 years”. production(year)
According to the study’s findings, agro-pastoralists are Member of household
not new to the production of sorghum, but successful pro- engaged in sorghum 2 5 3.22 1.08
production (number)
duction and getting profit from the production may depend
Frequency Percent
on the availability of training and vigorous promotion.
Sex of household Male 26 52
There could be up to five family members working to-
Female 24 48
gether to produce sorghum, with two being the minimum
and three being the norm. In order to conduct various farm Source: Own survey, 2022.
management operations like irrigation, weeding, and har-
vesting to share among them, family participation in the
Imprtance of PAPREGs membership
production of sorghum is essential. The participation of
family members in the sorghum production process is also High income source
crucial to expand employment options for unemployed
Seed source
household members, producing money, and reducing the 28% 32%
number of unemployed family members, improving their Work experience and idea sharing

means of livelihood. Access to irrigation and other

3.2 Benefit of PAPREGs-based Sorghum Produc-
tion
The advantages of being cluster-based sorghum-pro-
ducing PAPREGs members are revealed by the response
of beneficiaries. As indicated in Figure 1, about 32% of
respondents said that growing sorghum, belonging to a
cooperative, or being a member of PAPREGs allows them
to earn a high income, while about 28% said that joining
a cooperative is essential to exchange irrigated sorghum
24% 16% technologies
Figure 1. Importance of PAPREGs membership.
3.3 Status of Improved Sorghum (Melkam Vari-
ety) Production
Even though agro-pastorals had a long year experience
of in sorghum production, they hadn’t used improved
sorghum (Melkam) variety and only cultivate local sor-

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

ghum variety which did not give better yield compared
to improved variety. Recently Jinka agricultural research
center introduced improved sorghum (Melkam variety)
to enhance sorghum productivity thereby benefiting agro-
pastorals in the area and the initial slow expansion of pro-
duction now becomes accelerated. As from key informant
discussion with woreda experts improved sorghum pro-
duction had spread in the area and were incorporated into
development plans by local governments (Agriculture and
Natural resource management), Research Center (Jinka
Agricultural Research center), NGOs (LLRP and FAO)
and other development projects. PAPREG members who
were involved in sorghum production were asked to re-
veal the lack of seed and about 52 percent of respondents
revealed there are occurrences of lack of seed for produc-
tion but not now. On the other hand, 8 and 40 percent of
respondents reported lack of seed occurs sometimes and
is not recently solved. Overall, it indicates lack of seed
is not a problem now for the PAPREG members for their
sorghum production but they revealed there is a yield re-
duction from year to year. Moreover, the main source of
improved sorghum seed was Jinka Agricultural Research
Center (76%), NGOs such as LLRP, FAO, and others who
are working in the area (12%), and the rest 12% improved
seed was supplied by Woreda Agriculture & Natural re-
source management office. This implies that Jinka agri-
cultural research center is a highly contributing seed for
agro-pastorals besides the demonstration of the improved
sorghum variety in the area.
As seen in Table 2 below, all respondents have an
awareness of the importance of improved sorghum and
produce on their farmland. Agro-pastorals consider im-
proved sorghum production as food for household con-
sumption, livestock feeds mainly biomass and a source
of income. About 80 percent of respondents reported that
the benefits of producing sorghum were highly improving
whereas 20 percent reported benefits slowly improving.
This implies that the majority of respondents realized the
importance of sorghum production as their livelihood
improvement activity and food security. In addition, the
Jinka Agricultural Research Center, Lowland Resilient
Project, and Woreda Agriculture & Natural resource man-
agement office gave different training for the PAPREGs
members and others on planting, irrigating, harvesting,
threshing, and post-harvest handling. This awareness crea-
tion training helped agro-pastorals to produce sorghum
and realized benefits. All PAPREGs members reported
that they were taken training from Jinka Agricultural Re-
search Center whereas about 40, 48, and 72 percent of re-
spondents reported that they got training from Woreda Ag-
riculture & Natural resource management office, pastoral
field days, and LLRP, FAO, and other NGOs respectively.
This indicates that agro-pastorals in the area are getting
different pieces of training from different stakeholders.
3.4 Agro-pastoralists’ Trait Preference
In the evaluation process at a different stage of the
crop, both direct and indirect beneficiaries have partici-
pated. The selected traits of the sorghum variety for evalu-
ation by agro-pastoralists were early maturity, high yield-
ing, stalk palatability, panicle length, seed size, seed color,
birds attack and plant height (Table 3). As indicated in the
result, all agro-pastoralists confirmed that the improved
Melkam variety is best in grain yield as compared to the

Table 2. Sorghum (Melkam) production status.

Attributes Freq Percent
Lack of seed Yes it occurs often but not now 26 52
Yes it occurs sometimes 4 8
No, recently solved 20 40
Source of improved sorghum (Melkam) Jinka Agricultural Research Center 38 76
NGOs 6 12
Woreda Agriculture & Natural resource mgmt. 6 12
Awareness of improved sorghum cultivation Yes 50 100
No 0 0
The benefit of cultivating sorghum Highly improving 40 80
Slowly improving 10 20
Training on sorghum production Woreda Agriculture & Natural resource mgmt. 10 40
Pastoral field days 12 48
Jinka Agricultural Research Center 25 100
LLRP, FAO, and other NGOs 18 72

Source: Own survey, 2022.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Table 3. Preference of agro-pastorals on improved sorghum (Melkam) with compare to local variety.
Relative
Grain Yield Panicle length Seed color Seed size Plant height Early maturity Bird attack Salk palatability
weight
Varieties 3 2 3 2 2 3 3 3
Melkam 4(100%) 3(100%) 4(80%) 3(80%) 3(96%) 4(100%) 0(80%) 3(88%)
Local 1(100%) 1(100%) 1(100%) 2(100%) 3(88%) 1(100%) 0(80%) 2(88%)

The total number of participants = 25 (5M & 15F). Rating of performance of a variety for selection criteria: Score for criteria 0 up
to 4, 0 = similar, 1 = poor, 2 = good, 3 = better, 4 = best; Relative weight of selection criteria: 3 = very important, 2 = important
and 1 = less important. The numbers in the parenthesis indicate the product of the relative weight of the selection criterion and the
performance of a variety given by agro-pastoral.

local variety which has a poor grain yield. Moreover, all
agro-pastoralists confirmed that an improved Melkam
variety is best in early maturity while the local variety is
too late and takes a long time to mature. Besides, all agro-
pastoralists revealed there is no difference between im-
proved Melkam and local variety on bird attack. This is in
line with the findings of Hailemariam et al. [18], who used
the same selection criteria to indicate farmers’ preference
for sorghum varieties traits.
with its positive effect on yield attributes”. The minimum
and maximum yield attained by each agro-pastorals from
a plot area of 0.28 ha were 7.73 and 9.17 quintals whereas
the mean yield was 8.4 quintals.
3.6 Economic Returns and Costs of Sorghum Pro-
duction in the Study Area
Biomass

3.5 Performance of Sorghum Technology’s Yield
and Yield Components
The result of the study revealed that the productivity of
improved sorghum (Melkam variety) with its technology
packages was better than the local variety with existing
agro-pastoralist practice. Thus, the mean grain yield of
improved sorghum was 30 quintals per hectare and the
mean grain yield of the local variety was 10 quintals per
hectare in similar production years in the study area (Table
4). This implies that improved sorghum (Melkam variety)
had a yield advantage of 200% over the local variety. This
greater yield advantage was achieved through the proper
use of recommended technology packages such as the use
of the improved variety, appropriate fertilizer, chemicals,
seed rates, and good management practices. This yield
result was in agreement with the study by Abady et al. [19],
Kinfe & Tesfaye [20], and Birhane et al. [21]. The result also
conformity with EIAR [22] “suggesting the positive effects
of improved technology demonstrations over the existing
farmer’s practice towards enhancing the yield of sorghum
The biomass of sorghum was used for a different pur-
pose by agro-pastorals in the study area. For instance, the
fresh biomass of sorghum was used for livestock feed in
the study area whereas the dried biomass of sorghum is
important for house and fence construction, and is also
used as firewood wood. However, it is not an easy task to
value the biomass of sorghum to monetary value. Besides,
there is no uniform amount of biomass produced by each
PAPRG member and different usage form makes it not
easy to value. So its monetary value was not added to the
economic return of sorghum production in this study.
Grain Yield
During the demonstration season, researchers made
regular observations and monitoring of agro-pastoral
fields which motivated them to actively monitor, weed,
and irrigate their sorghum plot. All recommended agro-
nomic management including sowing and weeding was
done at the right periods of the season. As illustrated in
Table 4, the mean grain yield of the Melkam variety was
30 quintals, which was far greater than the grain yield of

Table 4. Yield data of sorghum produced by PAPREGS.

Beneficiaries Land coverage (ha) Average yield Q/ha Total yield (Q/ha)
25 agro-pastorals 7 30 210
Per agro-pastorals 0.28 8.4 8.4
Min Max Mean
Per agro-pastorals plot of 0.28 ha
7.73 9.17 8.4
Local variety per ha 1 10 10

Source: Own result, 2022.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
the local variety (10Q) mostly because of the early matur-
ing period and its productivity.
Input Items and Costs
Starting from land preparation, all input items utilized
on farm plots and costs were recorded by researchers on
a prepared data record sheet. Input items identified for
analysis were the amount of seed (Melkam), type and
amount of fertilizer (NPBS and Urea), land preparation
cost by tractor, fuel for tractor and water lifting from the
river, chemicals (Diaznole @5% and Karate @5%) and
other of costs related to labor. Labor costs such as plant-
ing, irrigating, weeding, harvesting, and threshing were
included in the analysis. However, labor costs spent on
storing or other post-harvesting costs were not included in
this study.
Consequently, cultivating sorghum from land prepa-
ration to harvesting and threshing or until getting grain
yield costs incurred were seed (15 kg/ha), NPSB (50 kg/
ha), Urea (100 kg/ha), land preparation cost by tractor in-
cluding fuel and operator Perdium (8000 birr/ha), fuel for
water lifting from the river (9956 birr/ha), Diaznole @5%
(2400 birr/ha), Karate @5% (1200 birr/ha), first and sec-
ond weeding (900 birr/ha) and harvesting and threshing
(750 birr/ha) (Table 5). This substantial amount of tractor
operator and fuel costs for both tractor and water lifting
from Omo River reflect the increased cost of production
in the area. They simply practice sorghum production
when the Omo river overflows and they call this system
of production Omo shesh. The study also revealed that the
agro-pastoralist in the study area did not practice sorghum
production with improved agronomic and recommended
doses of fertilizers. While urea was applied in two splits—
the first half during planting and the second half a month
later at the height of tillering NPSB was applied all at
once during the sorghum sowing. Where there is an abun-
dance of land to cultivate but the problem with sorghum
production is how to get water from Omo river or the
lifting water (fuel cost) which is currently too expensive
in the country. It is without a doubt a great idea to boost
yield per unit area, but yield in and of itself should only be
a goal if it can be sustained by an acceptable gross margin
and profit to remain competitive and continue in the farm-
ing industry.
Thus, variable and fixed costs were recorded by re-
searchers on the prepared data record sheet with the col-
laboration of producer agro-pastorals. To that end, the
mean projected variable cost per hectare was 27856 birr.
The greatest costs out of this ranged from 9956 birr/ha for
fuel to pull water from the river to 9000 birr/ha for tractor
68
fuel and operator, which account for 36% and 32% of the
overall cost, respectively. Increased usage of better in-
puts is one way to provide greater agricultural output and
productivity. In order to increase agricultural output, it is
crucial to look into the cost structure of the inputs. Hence,
seeds, chemicals, laborers, and fertilizers were relatively
the lowest input items. For instance, since it only makes
up 2.7% of the overall cost, the seed of the enhanced sor-
ghum variety was a low-cost input. Due to the lower sor-
ghum seed rate of 15 kg/ha, the contribution of seed to the
total variable cost is incredibly low. The lowest costs were
also incurred in planting, weeding, irrigating, harvesting,
and threshing. This demonstrates that easy water listing
technologies or solar systems need to be the focus of fu-
ture research to boost sorghum output. This could be pos-
sible through the use of the effective solar system which
has been practiced in other areas of Ethiopia or adopted
from elsewhere.
Gross Margin or Revenue
A gross margin of a farm business is the difference be-
tween gross revenue which is the price multiplied by the
yield obtained and the costs of variable inputs used. Gross
margins and profit offer agro-pastoral the encouragement
to admit new technologies and improve crop production
and productivity. Greater gross margins and profit are
the results of greater yield and better productivity, while
the lesser costs per unit of products could most likely be
realized through a mixture of farm input, and improved
operation of inputs. Any modifications to technologies or
practices depend on the financial benefit realized. Agro-
pastorals who easily don’t realize the innovative technolo-
gies are frightened of the financial threat that might be
faced while investing in any business environment. To
determine the financial feasibility of the innovative tech-
nologies in sorghum production, Melkam improved varie-
ties along with its agronomic practices were verified and
their gross margins were calculated. The amount of grain
produced per hectare was one of the criteria used to calcu-
late gross margins. All pastoral and agro-pastoral research
groups confirmed that the Melkam sorghum variety gave
greater grain yields and greater revenues per hectare than
their local variety because it is the short maturing crop
and short in size that it could be easily managed from bird
attacks and minimize its costs of labor. Melkam sorghum
variety gave a higher yield which is 3000 kg/ha. Thus, the
result suggests that Melkam sorghum productivity in this
area is a good and further expansion and availing water
lifting devices to agro-pastorals are important.
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Return
Return is simply the difference between the total in-
come value of yield at normal market prices and total
costs (total variable and fixed cost). In this study, variable
costs included are the price of seeds, fertilizers, herbicides
real amount used and the real amount of labor, fuel used
for water lifting from Omo river and the fuel used for
tractor and Perdium cost for tractor operator during plan-
tation costs from the whole planting season were taken
into consideration. Regular expenses known as “fixed
costs” stay largely constant regardless of output level. In
this study cost of land, and renting were only considered
but it was not easy to calculate as other variable costs.
However, we used the average current market land renting
price per hectare for one year in a fixed term. Accordingly,
estimated the current average market price of land in the
study area is 2000 birr/ha/year. This cost estimate is 7% of
total variable costs and the estimate falls out of adequate
bounds of further lessons that inveterate. That fixed cost
contributes 10%-15% of variable costs in smallholder
farmers who operate at a low level of performance [23,24].
This might be due to ample land resources in the area and
there is no land shortage problem in the area as it is a pas-
toral area. The mean return, which included the fixed cost,
was 120,144 EB/ha. Farmers adopt new technologies and
innovations, lower costs per unit of production, preserve
soil fertility, and look for better marketing strategies as a
result of rising farm profits [25].
Benefit to Cost Ratio
This study used benefit to cost ratio to confirm that new
sorghum production technologies are appropriate and fi-
nancially safe. Accordingly, the system of the input-output
investigation indicates the benefit to the ratio of sorghum
production technology as a beginning for its appropriate
valuation and choice. The mean revenue from the sale of
grain seed was 150000 birr/ha and the mean production
cost was 29856 birr/ha. This implies that each household
that engaged in sorghum production would get a profit
of 120,144 birr/ha. Moreover, the benefit-to-cost ratio of
sorghum production was 4.02:1, which demonstrates that
each household gets a benefit from sorghum production
nearly four times the cost of production. This result would
encourage new agro-pastoralists to tend to start with sor-
ghum production and area expansion to evaluate the costs
and benefits of this profitable initiative.

Table 5. Economic returns and costs of sorghum production.

Cost items per ha Unit Quantity Unit cost (ETB) Total cost (ETB)
Seed kg 15 50 15*50 = 750
NPSB kg 50 15 50*15 = 750
Urea kg 100 13.5 100*13.5 = 1350
Diaznole @5% Liter 4 600 4*600 = 2400
Karate @5%) Liter 1 1200 1*1200 = 1200
Land preparation by tractor Operator & fuel 1 80000 1*8000 = 8000
Planting Labor per day 6 50 6*50 = 300
Irrigation (2 times per week) Labor per week 1 50 15days/3month*1*100 = 1500
Water lifting cost from the river Fuel per liter 400 24.89 400*24.89 = 9956
1st weeding Labor per month 10 50 10*month*50 = 500
2nd weeding Labor per month 8 50 8*month*50 = 400
Harvesting/threshing Labor per harvest 15 50 15*50 = 750
Total variable cost 27856
Fixed cost Land cost per ha 1 2000 2000
Total cost 29856
Benefits (birr/ha)
Grain yield Quintal (mean) 30 5000 150000
Total revenue 150000
Gross margin 122144
Profit (birr/ha) 120144
Benefit-cost ratio 120144/29856 = 4.02:1

Source: Own survey data, 2021.

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3.7 Lessons Learned and Suggestions Forward
As it is true that the PAPREGs organized in the area
were rarely practicing sorghum production in the area and
the selected area for sorghum production at the time was
bare land. But the formations of PAPREGs make them
work together and learn from each other. This helped the
PAPREGs members to undertake all the crop management
activities. The other is the use of improved technologies
such as fertilizer and row planting which were not com-
mon in the area. So the PAPREGs team spirit and the
influence of group members on one another made a sense
of competition between members. So, the formation of the
PAPREGs group is a main to for technology adoption in
the area. And now PAPREGs members were expanding
their production as well as other agro-pastorals nearby are
adopting the technology (Figure 2).
Sorghum production in agro-pastoral areas has a dual
purpose as feed for livestock and human consumption for
food with high productivity. So, the production should
be scaled out widely at every time without a season limit
since there are opportunities for fertile land in every flow-
ing Omo River in the area and also a provision of a skill
gap training in practicing the technology.
A ally supply the seed of the Melkam variety and to ensure
B
C Funding
Figure 2. Cluster-based improved (Melkam variety)
sorghum production at Nakriaman kebele, Nyanghtom
woreda.
70
4. Conclusions and Future Implication
The result from this study revealed that the demonstra-
tion of sorghum (Melkam variety) had offered superior
performance in grain yield compared with the agropasto-
ral practices and has highly improved agro-pastoralists’
livelihoods as it was used for further seed production and
home consumption. Pastoral and agro-pastoral groups in-
volved in improved sorghum production are currently able
to consume and use the seed for further expansion. The
result also justified that the improved sorghum variety has
shown a 200% of yield increment over the local variety
which agro-pastoralists practicing using Omo shesh (use
of water when Omo river overflows). Besides, the mean
profit from sorghum production using irrigation per hec-
tare was 120,144 EB/ha which would inspire new agro-
pastorals to have a tendency to start with improved sor-
ghum production. The host agro-pastoralists of the cluster-
based demonstration also played a crucial role as a source
of knowledge and high-quality seeds in order to distribute
the improved variety of sorghum (Melkam) to other local
agro-pastoralists. Therefore, the district’s agriculture and
rural development offices should scale out the Melkam
variety to agro-pastorals and it is advisable that organize
seed producer’s cooperatives/groups in order to continu-
sustainable production.
Author Contributions
Mr. Awoke T. wrote and edited the entire manuscript in
addition to writing the proposal, securing the funding, and
conducting the research and data collection. Mr. Asmera A.
took part in gathering socio-economic data, analyzing it,
drafting the manuscript, and formatting it following jour-
nal guidelines. Dr. Tekle Y. and Mr. Anteneh T. took part
in land acquisition, preparation, planting, and monitoring
activities.
The Lowland Livelihood Resilience Project (LLRP)
provided funding for this research project to enhance re-
silience in Ethiopia’s pastoral regions by enhancing food
security and reducing poverty in South Omo.
Acknowledgments
The author thanks the pastoral livelihood improvement
project component of the Lowland Livelihood Resilience
Project (LLRP) of the Regional Bureau of Pastorals in
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
Southern Nation, Nationality and People Regional State.
We highly appreciate LLRP experts in Hawassa and South
Omo LLRP coordinating office for timely budget release
and other logistical supports. Finally, we would like to ex-
press our appreciation to Nyangatom Woreda stakeholders
for the cooperation and participation in the field work.
Data Availability
The accompanying materials or the main text contain
all the data, and upon request, the corresponding author
will provide the raw data.
Conflicts of Interest
The authors pronounce that there are no encounters of
interest regarding the publication of this paper.
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lands of Eastern Hararghe. International Journal of
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Research on World Agricultural Economy

https://ojs.nassg.org/index.php/rwae

RESEARCH ARTICLE
The Contribution of Work Experience on Earnings Inequality of
Migrant Workers: Decompositions Based on the Quantile Regression
Equation
Jiaqi Peng Jun Li Ling Ma Zhiwang Lv*
College of Economics and Management, China Agricultural University, Beijing, 100107, China

Abstract: This paper aims at excavating the influence factors of earning inequality, due to the increasing contribution of
earning inequality to income inequality in a rural region. The authors examine the contribution of work experience on
earning inequality using survey data. Employing the quantile regression, they estimate the Mincer equation of migrant
workers’ earnings and decompose earning inequality by the regression-based decomposition. It has been found that the
effects of work experience had been one of the most important contributors to earnings inequality, and its contribution
is close to 20%. Furthermore, the authors use the same method to examine the effects on male migrant workers. The re-
sults show that work experience had a steady contribution to earning inequality.

Keywords: Earnings inequality; Work experience; Quantile regression; Shapley value

occupied in migrant workers’ total income, the earning

1. Introduction
According to the Migrant Workers Monitoring Survey
Report, released by the National Bureau of Statistics, the
number of migrant workers was 242 million in 2010, 274
million in 2014 and 288 million in 2018. In addition, the
per wage of migrant workers in 2014 and 2018, was 2864
yuan and 3721 yuan respectively. Based on the statistics,
the proportion of migrant workers’ earnings in family in-
come rose from 29.9% in 2010 to 39.6% in 2014, and to
41.1 in 2019. With the increasing percentage of earnings
inequality has a greater impact on the overall income
inequality. Therefore, the earnings difference among mi-
grant workers should be considered carefully.
Since the American economist Mincer [1] put forward
the income determination equation which links personal
income with education level and work experience, the
Mincer equation has become the most commonly used
method for scholars to research earnings and rate of return
on education. Theoretically, the factors affecting earnings
or income will also have a certain impact on income in-

*Corresponding Author:
Zhiwang Lv,
College of Economics and Management, China Agricultural University, Beijing, 100107, China;
Email: lvzhiw@cau.edu.cn

Received: 20 February 2023; Received in revised form: 27 March 2023; Accepted: 31 March 2023; Published: 7 April 2023

Citation: Peng, J.Q., Li, J., Ma, L., et al., 2023. The Contribution of Work Experience on Earnings Inequality of Mi-
grant Workers: Decompositions Based on the Quantile Regression Equation. Research on World Agricultural Economy.
4(1), 819. http://dx.doi.org/10.36956/rwae.v4i1.819

DOI: http://dx.doi.org/10.36956/rwae.v4i1.819
Copyright © 2023 by the author(s). Published by NanYang Academy of Sciences Pte. Ltd. This is an open access article under the Creative
Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License. (https://creativecommons.org/licenses/by-nc/4.0/).

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
equality, while, these two effects are not proportional. For
example, the level of education has a significant impact
on the absolute level of earnings, but if the difference in
education level between individuals is not large, then the
impact of education on income inequality is small.
However, a large number of previous literature have
shown that due to the difference in the quality of human
capital, the nonagricultural probability and earnings may
vary among migrant workers.
Education and work experience make up the most
important part of human capital in classical theories. Be-
cause everyone’s level of human capital varies, the differ-
ence in returns from education and work experience may
bring about earnings inequality.
In recent years, the structure of migrant workers has
also changed, and the proportion of new-generation mi-
grant workers has steadily increased. Compared with the
middle-aged and elderly migrant workers, the new genera-
tion is aggressive, and the level of education is often high-
er than the former, but they lack experience. The impact
of these factors on earning inequality needs to be verified.
2. Literature Review
How human capital affects income distribution is an
essential theme in the economy, with a large amount of lit-
erature accumulated. Zhang et al. [2] found the demand for
skilled labor increased the contribution of schooling, while
differences in human capital exacerbate income inequal-
ity. Gao and Yao [3] used China’s rural panel data from
1987-2002 to discuss whether human capital or physical
capital is more likely to affect income inequality among
rural residents. They found in different income groups, the
return on human capital was significantly higher than that
of physical capital. While, they focused on the income
inequality of rural households, and because the sources of
income among rural households are varied, it needs more
detailed research concerned with the impact of individual
human capital on income and income inequality. Zhang [4]
paid attention to the relationship between the change in
human capital return and income inequality earlier, he
grouped by education level and used quantile regression
for comparison, which found that the return on education
in high-income earners is higher than that in low-income
earners. This Matthew effect of the rate of return to edu-
cation deteriorated the income inequality. While, Patrinos
et al. [5] believed education will reduce income inequality
in mature economies and increase them in less developed
economies.
A review of the previous literature reveals that human
capital is an important cause of income growth and in-
come distribution, with education and work experience
74
being very important indicators of human capital [6]. Most
of the current literature focuses on the impact of returns to
education on income inequality [7], but there is still some-
thing to add about the path of the impact of work experi-
ence on wage growth and wage income inequality among
migrant workers. In the long run, the returns to work
experience of migrant workers in China have changed
considerably and have not received a uniform conclusive
conclusion [8]. Based on this, exploring the impact of work
experience on wage income inequality needs to be further
expanded and supplemented.
Work experience, an important component of human
capital, has been further explored by many scholars for
its impact on income inequality and many attempts have
been made to decompose its contribution to income in-
equality [9-11]. Bartlett [12] decomposed the contribution of
education and work experience to male wage inequality
between 1939 and 1969. He found that the contribution
of education was declining while the contribution of work
experience was increasing, possibly due to the rise in un-
employment. They found that the contribution of work ex-
perience was declining while the contribution of education
and job opportunities was increasing. Chen et al. [13] used
China Health and Nutrition Survey (CHNS) to measure
labor earnings inequality from 1990 to 2005, proving that
the contribution of work experience to earnings inequality
will decline due to economic transformation and wage
system reforms. Lu [14] used Chinese Household Income
Project (CHIP) to study changes in urban labor income
inequality from 1995 to 2013, and found that the return of
experience declines continuously. The above studies all
use multi-period data and compare the contributions of
work experience, education and other factors in different
periods to examine long-term trends. However, due to
data limitations, the work experience among those studies
is calculated by subtracting years of education from age.
If the micro-data can obtain more effective indicators that
reflect the work experience, the impact of factors such as
work experience on income inequality can be more accu-
rately examined.
It is worth noting that Xing [15] pointed out that quantile
regression is different from the OLS regression based on
income grouping. Using the difference in the regression
results of different quantiles is not rigorous enough to ex-
plain income inequality.
3. Methodology and Data
3.1 Methodology
Due to the limitations of the classical Mincer equation,
as in most studies, this paper uses the extended Mincer
 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
equation for regression testing, with earnings as the ex-
plained variable and logarithmic processing. The for-
mula is as follows:
LnY = β 0 + β1Edu + β 2Exp + β3Exp 2 + ∑i λi xi +ε
Among them, LnY is the logarithm of the monthly sala-
ry of migrant workers. Edu and Exp represent the knowl-
edge gained from education and experience gained from
work respectively. The coefficients β1 and β2 represent the
ratio of personal earnings increased by increasing edu-
cation and work experience, which are the return rate of
education and experience. Considering the non liner rela-
tionship of experience on earnings, the square term of the
experience is introduced into the model, and the coeffi-
cient β3 is usually a negative number. In addition, in order
to analyze the impact of other factors on earning, control
variables such as gender and location can be introduced.
Taking the estimation of the rate of return on education
as an example, if the OLS is used to estimate the Minc-
er equation, which is mean regression, the obtained rate
of return on education reflects how the average earning
changes with the level of education under other conditions
maintained. However, due to the skewed distribution of
earnings, the estimation results from the conditional mean
model are often biased. Different from OLS, quantile
regression estimates how the earnings at different quan-
tile points are determined under other conditions. Since
regression estimation can be estimated on any quantile,
comprehensive information about the conditional distri-
bution of the explained variable can be obtained [16]. This
article also uses quantile regression to estimate the work
experience rate of return.
To verify the contribution of various factors to the
overall earnings inequality, a regression based on Shapley
value inequality decomposition method is needed. The
development and research application of this method is
mainly attributed to Shorrocks [17] and Wan [18]. The basic
idea of this method is the contribution of a certain vari-
able to inequality can be seen as the change in overall
inequality when the variable is eliminated. Excluding this
variable can be understood as assuming that it is equally
distributed among all people. On the basis of the estimat-
ed results of the income equation, the JAVA program de-
veloped by the World Institute of Development Econom-
ics (UNU-WIDER) can be used to perform the Shapley
value decomposition of the income inequality on fitted
per capita income. In addition, this article also uses the
method proposed by Wan [18,19] to deal with the influence
of residuals and calculates the contribution of residuals by
calculating the difference between the total earnings in-
equality index and all other explanatory variables. On this
basis, simple mathematical operations are used to obtain
the percentage of contribution of all explanatory variables
and residuals to the inequality indicator.
This method has been widely used. Yu [20] used this
method to study the impact of foreign direct investment
(FDI) on China’s agriculture and regional disparities in
the national economy. Zhao [21] examined the impact of
relationship networks as social capital on income inequal-
ity among farmers and the author decomposed that the
contribution of relationship networks to income inequality
among farmers reached more than 10%. Furthermore,
Chen [13] also used the Shapley value decomposition to
analyze the impact of education and work experience on
income inequality.
3.2 Data Source
The data used in this paper come from a field survey
conducted by the National Agricultural Rural Develop-
ment Research Institute of China Agricultural University
in 2014 on the influx of migrant workers into provinces
and cities, which include Beijing, Zhejiang, Guangdong
and etc. The content of the survey involves the work, in-
come, life, and food consumption of rural migrant work-
ers, forming cross-sectional data for studying the issues
of migrant workers. A random sample was used in this
research, which greatly avoided sample bias. In order to
focus on the research on the human capital and earnings
of migrant workers, the number of samples is 2187 after
removing some outliers. The statistical characteristics of
the variables are shown in Table 1.
Experience is the human capital accumulated by the la-
bor force in the process of work. Unlike general research
that uses the difference between age and age when com-
pleting education to express experience, we use the time
the migrant worker enters the current industry. In the field
questionnaire survey, the respondents are required to an-
swer the time they are engaged in the current work and in-
dustry, and the number of years they have worked outside.
Through comparison, it has been found that the time spent
by the labor force in the industry best reflects the im-
provement of their own skills, which will more effectively
reflect their experience in the industry. Simultaneously,
the square term of experience has been introduced to ex-
amine whether the experience has diminishing returns.
Regarding education level, the number of years of ed-
ucation is not directly used in the survey, but is assigned
to different levels of education, in which illiterate literate
is rarely assigned to 1, primary school is assigned to 2,
junior high school is assigned to 3, senior high school is
assigned to 4, and so on. The statistical characteristics of
the main variable are as follows:
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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

Table 1. Statistical characteristics of variables.

Monthly Salary (yuan) Work Experience (year) Education Level
Region Sample Size Standard Standard Standard
Mean Mean Mean
Deviation Deviation Deviation
Beijing 722 4260 1886 6.38 6.44 3.24 1.30
Zhejiang 765 3927 1983 6.73 6.54 3.36 1.42
Guangdong 700 3113 1443 5.71 4.58 3.55 1.17
Total 2187 3776 1854 6.28 5.96 3.38 1.31

The earnings inequality of the sample data is reported
not only by Gini but also Theil index. Because the Theil
index includes earnings inequality within and between
groups, this article is grouped according to regions and
industries, which can reflect the impact of regions and in-
dustries on overall income inequality.
First, it has been calculated that the overall Gini is
0.2416. In addition to removing outliers will definitely
reduce the Gini, it is also necessary to understand that this
relatively low Gini only reflects the earnings inequality of
individual workers. This is not a concept with the Gini of
the per capita income of rural households calculated by
other data. Because the source of per capita household in-
come is more diversified, the influencing factors are more
complex. For example, the Gini of national residents’
income in 2014 released by the National Bureau of Sta-
tistics is 0.469, which is not only the gap in household in-
come per capita, but also the gap between urban and rural
areas. Therefore, this value is higher than the calculation
result in this article. What’s more, some research institu-
tions have given higher Gini estimates, which will not be
repeated here. We believe the Gini of migrant workers’
earnings calculated in this paper is acceptable.
Then, we group by gender, industry and region, and use
the Theil index, including the zero-order Theil index GE
(0) and the first-order Theil index GE (1) to measure the
earning inequality. As shown in the result, whether group
by gender, industry or region, the contribution of the in-
equality between groups to the overall inequality is far
less than that of the inequality within the group.
From the results in Table 2, it can be seen that gender
group has the largest contribution to the inequality be-
tween groups, and the calculation results of GE (0) and
GE (1) both illustrate that their contribution is close to
20%, and the contribution of the industry group is slight-
ly less than that of the former. The inequality between
groups by region is within 10%, which indicates that there
is no obvious regional difference in the income of migrant
workers as a whole. Theoretically, when the labor market
is well developed and labor mobility is sufficient, regional
differences in earnings or income will become smaller and
smaller. Therefore, the contribution of inequality between
the regional group is smaller.
In the following econometric analysis, we will still
consider the impact of migrant workers’ gender, industry,
and region on earnings in the model.
4. Quantile Regression Estimation and In-
equality Decomposition
A large number of previous studies have shown that
there is a positive correlation between work experience,
education level and earnings. Considering that health is
also an important attribute of human capital, the labor
intensity that can be endured is used as an indicator of
health. From low to high, it can be divided into five levels.
Those who can bear the highest intensity are considered

Table 2. The result of GE (0) and GE (1).

GE (0) GE (1)
Contribution to the overall Contribution to the overall
Degree of Inequality Degree of Inequality
Inequality (%) Inequality (%)
Between Within Between Within Between Within Between Within
Grouped by
0.01850 0.07582 19.61 80.39 0.01818 0.08284 18.00 82.01
gender
Grouped by
0.01679 0.07753 17.80 82.20 0.01764 0.08337 17.46 82.54
industry
Grouped by
0.00868 0.08564 9.20 90.80 0.00844 0.09257 8.36 91.64
region
Total 0.09432 100 0.10101 100

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

the healthiest, and vice versa. Like Liu [22], the index of
marriage was added to the income determination equation.
This variable has no clear economic meaning, but rather
represents personal characteristics.
The model also controls regional factors and industry
factors. In order to reduce the number of variables, we do
not use dummy variables representing regions or indus-
tries. Instead, we use the logarithm of the province’s per
capita GDP as a proxy variable for the region. We use the
logarithm of the average income of various industries in
2014 released by the Migrant Workers Monitoring Survey
Report as the industry proxy variable.
In order to further study the difference in the expe-
rience rate of return under different earning levels and
its changing trend in the income distribution, this paper
uses the quantile regression method to regress the Mincer
equation. We use Stata and bootstrap (self-service meth-
od) technology to estimate the Mincer equation 10% of
low income, 25% of low income, 50% of medium income,
75% of high income and 90% of high income through 400
repeated sampling. The results are shown in Table 3.
The estimated results in Table 3 show that the coeffi-
cient representing the rate of return of work experience
is relatively stable in the first four quantiles, and it has
declined at the highest quantile. The results also show that
as the quantile rises, gender, education level, health status,
and job position have an increasing influence on income.
The coefficient of the square term of experience and age is
negative, except that the square term of experience is not
significant at the highest quantile, the others are signifi-
cant.
This article uses the per capita GDP of the region to
represent the different effects of the region. The results
show that, except for the highest quantile, as the quantile
increases, the impact of the regional per capita GDP be-
comes greater, that is, higher earnings can better reflect
the degree of regional development. However, the influ-
ence of industry characteristics shows the opposite trend,
which is also easy to understand. Because we use the
average income of the industry to represent the character-
istics of the industry. Naturally, there are differences be-
tween high-earing people and the average income level of
the industry, and the differences keep a growing tendency.
More quantiles are selected for quantile regression in
order to provide more information. For the two variables
that this article focuses on, work experience and educa-

Table 3. Quantile regression results of Mincer equation.

Q=10% Q=25% Q=50% Q=75% Q=90%
0.2130*** 0.2300*** 0.2062*** 0.2546*** 0.3435***
Gender
(0.0325) (0.0186) (0.0172) (0.0276) (0.0393)
–0.0095*** –0.0076*** –0.0074*** –0.0057*** –0.0055***
Age
(0.0014) (0.0014) (0.0010) (0.0014) (0.0019)
0.0036 0.0133 0.0182** 0.0204** 0.0266**
Education Level
(0.0106) (0.0088) (0.0080) (0.0083) (0.0115)
0.1238*** 0.0926** 0.0931*** 0.0784*** 0.0909***
Marital Status
(0.0304) (0.0264) (0.0236) (0.0282) (0.0340)
0.0243*** 0.0264*** 0.0243*** 0.0248*** 0.0163**
Work Experience
(0.0063) (0.0047) (0.0039) (0.0050) (0.0073)
0.0133 0.0139 0.0302*** 0.0323*** 0.0432***
Health Status
(0.0115) (0.0095) (0.0094) (0.0101) (0.0143)
0.0700*** 0.0686*** 0.0823*** 0.1113*** 0.1246***
Job Position
(0.0155) (0.0114) (0.0098) (0.0165) (0.0143)
–0.0006* –0.0005** –0.0004** –0.0004* 0.0001
Square term of Experience
(0.0003) (0.0002) (0.0002) (0.0002) (0.0004)
Regional per 0.3012*** 0.4739*** 0.5279*** 0.5651*** 0.5113***
capita GDP (0.0725) (0.0520) (0.0442) (0.0559) (0.0753)
Other Variables
Industry Average 1.0185*** 0.9311*** 0.8645*** 0.6808*** 0.2936
Income (0.1569) (0.1308) (0.1100) (0.1613) (0.1794)
–3.8850** –5.0495*** –5.0013*** –3.9005*** –0.1395
Constant
(1.502) (1.0884) (1.1034) (1.4362) (1.7717)
Pseudo R2 0.1540 0.1954 0.2241 0.2609 0.2451

Note: ***, **, * indicate significance at the significant level of 1%, 5%, and 10%, respectively, and the values in parentheses are
self-service standard errors.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023

tion, the coefficient of return on each quantile is demon-
strated in Figure 1. Intuitively, as the quantile rises, the
return on experience shows a downward trend, while the
return on education, on the contrary, has some fluctua-
tions, but generally shows an upward trend.
Figure 1. Experience and education return of each quantile.
The conclusion that people with higher quantiles can
obtain higher education returns is similar to that of Gao
and Yao [3]. Regarding the return rate of experience, con-
trary to the research of Liu [22], in addition to the difference
in the external environment, different ways of expressing
experience may also be the reason for the difference.
In order to more accurately express the contribution
of various variables including professional experience to
the overall earnings inequality, we use the JAVA program
developed by UNU-WIDER to perform Shapley value
decomposition. This article takes the decomposition result
of Gini as an example to show more intuitive results.
The corresponding value to each variable is the in-
equality degree of the contribution of the variable ob-
tained by decomposition. After these values are added, the
overall Gini, and thus the degree of contribution of each
variable to the overall earning inequality is obtained. See
the brackets in the table, the value within. Among them,
the contribution of the square term of the experience item
is negative, indicating that this item has the effect of re-
ducing earnings inequality.
As demonstrated in Table 4, as a whole, with the in-
crease of the quantile, various factors such as education
level, health status, and job position also contribute more
and more to the earnings inequality (few low quantiles
have higher contributions than high quantiles).
The contribution of work experience and the contribu-
tion of the square term of experience need to be consid-
ered comprehensively. Because the former’s contribution
to earnings inequality is positive and the latter is negative,
the overall contribution of experience factors to earnings
inequality is stable at around 20%.
As the quantile rises, the contribution of regional vari-

Table 4. Decomposition result of earnings inequality: Taking the decomposition of Gini as an example.
Q=10% Q=25% Q=50% Q=75% Q=90%
0.03390 0.03622 0.03363 0.04339 0.06392
Gender
(27.17) (26.28) (23.57) (27.36) (36.05)
0.00825 0.00448 0.00387 0.00201 0.00137
Age
(6.61) (3.25) (2.71) (1.27) (0.77)
0.00040 0.00163 0.00228 0.00272 0.00403
Education Level
(0.32) (1.18) (1.60) (1.72) (2.27)
0.00658 0.00469 0.00468 0.00399 0.00497
Marital Status
(5.28) (3.40) (3.28) (2.51) (2.81)
0.02787 0.03615 0.03345 0.03717 0.02783
Work Experience
(22.33) (26.23) (23.45) (23.44) (15.69)
0.00323 0.00344 0.00810 0.00834 0.01150
Health Status
(2.59) (2.50) (5.68) (5.26) (6.49)
0.01106 0.01075 0.01342 0.02130 0.02614
Job Position
(8.86) (7.80) (9.41) (13.43) (14.74)
–0.00643 –0.00721 –0.00617 –0.00594 0.00530
Square term of Experience
(–5.15) (–5.23) (–4.33) (–3.75) (2.99)
Regional Per 0.01172 0.02253 0.02645 0.02893 0.02579
Capita GDP (9.39) (16.34) (18.54) (18.24) (14.54)
Other Variables Industry
0.02821 0.02515 0.02295 0.01667 0.00649
Average
(22.60) (18.25) (16.09) (10.51) (3.66)
Income
Residual (%) 48.35 42.96 40.96 34.38 26.61

Note: The degree of contribution to the inequality of estimated value is in parentheses.

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 Research on World Agricultural Economy | Volume 04 | Issue 01 | March 2023
ables (represented by regional per capita GDP) increases
first and then decreases, showing an inverted U shape.
While, the contribution of industry variables (represented
by industry average income) presents a declining ten-
dency. This decomposition result does not show that the
contribution of industry factors to earnings inequality is
significantly greater than that of regional factors, which
seems to be inconsistent with the previous calculation of
Theil index. It should be noted that the decomposition
here is based on the Gini, and because of the residual con-
tribution, it is impossible to make an intuitive comparison.
In addition, we can also find that in the regression model,
the coefficient of the square term is negative, and the
contribution decomposition is also negative, that is, the
square term of experience plays a role in reducing income
inequality.
At the same time, the Shapley value is decomposed
according to the estimated value of earnings, which does
not include the contribution of the residual in the model,
or that is the unexplained part. Generally speaking, the
smaller the residual, the better the decomposition. At the
0.1 quantile point, the contribution of the residual is close
to half, which means that there are factors not included in
the model that affect the earnings inequality of migrant
workers.
According to some typical studies in China, the model
based on Mincer equation often has a low degree of fit
(pseudo R2 in quantile regression). In a general regression
model, a small degree of fit is not acceptable. In this arti-
cle, because the decomposition is based on the regression
equation, in most cases, the degree of fit affects the expla-
nation degree of earnings inequality. In other words, the
smaller the fit, the greater the contribution of residuals to
earnings inequality.
5. Further Analysis
From all samples, it can be seen that there is a signifi-
cant difference in the earnings of migrant workers, which
is consistent with most of the studies. The decomposition
result of the Shapley value also shows that gender can
explain at least 20% of the earnings inequality. At the
0.9 quantile point, gender can even contribute 36% of
the earnings inequality. In all five quantiles, gender is the
most important factor affecting earnings inequality.
The contribution of gender to earnings inequality is
large, which reflects the phenomenon that men’s earn-
ings are significantly higher than that of women. It needs
further analysis to tell whether it is discrimination in the
labor market or the gender gap in human capital and oth-
er factors. According to the research of Liu[22], the return
rate of education and experience of men is lower than
that of women. In order to further investigate the contri-
bution of work experience and other factors to earnings
inequality, we need to test the male sample and female
sample respectively. In the preliminary regression, multi-
ple variables of the model among the female sample are
not significant. In this case, we do not conduct an intui-
tive comparative analysis of gender. However, increasing
women’s earnings is an effective way to reduce earning
inequality. The incompleteness in the labor market brings
gender discrimination, which leads to the possibility that
the work experience of female migrant workers does not
have a significant impact on wage growth. Therefore, in
order to better clarify the path of work experience on the
wage earnings inequality, this paper further explores it
only for the male sample. In this part, we only select a
sample of male migrant workers and use the same method
to analyze. On the basis of the original quantile regression
model, the gender variable is eliminated, and other vari-
ables are used for regression. Because the female sample
is excluded, there are 1119 remaining samples. The quan-
tile regression results of the Mincer equation about earn-
ings are presented in Table 5 as follows:
The regression results show that the explanatory vari-
able of experience is significant, and at the highest quan-
tile, the return on experience has dropped sharply. But the
education variable is no longer significant, except at the
highest quantile. The square term of experience is sig-
nificant in the middle three quantiles, and its coefficient
is negative. Compared with the regression results of all
samples, the coefficients of work experience variables
are higher except for the lowest quantile. Although it is
not a direct comparison between the male sample and the
female sample, the higher return to experience in the male
sample can still reflect that the return to experience men is
higher than that of women, which is different from previ-
ous studies. On the one hand, it may exist a change in the
economic situation, or it may be a difference in the micro
indicators used to express work experience. In addition,
the coefficients of regional factors are lower than all sam-
ples at all quantiles, while industry factors are just the op-
posite, which is also a significant feature of male earnings.
It should be pointed out that the fitting degree of the
male sample is obviously small, which will affect the
results of Shapley value decomposition. Using the same
method, this paper decomposes the earnings inequality of
male migrant workers, as shown in Table 6.
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Table 5. Quantile regression results of Mincer equation for male migrant workers’ earnings.
Q=10% Q=25% Q=50% Q=75% Q=90%
–0.0079*** –0.0064*** –0.0072*** –0.0079*** –0.0037
Age
(0.0022) (0.0016) (0.0012) (0.0019) (0.0036)
0.0034 0.0043 0.0180* 0.0151 0.0334
Education Level
(0.0140) (0.0128) (0.0101) (0.0129) (0.0208)
0.1489** 0.0892** 0.1453*** 0.1295*** 0.0900
Marital Status
(0.0526) (0.0373) (0.0291) (0.0390) (0.0635)
0.0263** 0.0312*** 0.0309*** 0.0300*** 0.0250**
Work Experience
(0.0112) (0.0065) (0.0051) (0.0065) (0.0104)
0.0012 0.0088 –0.0020 0.0083 0.0084
Health Status
(0.0181) (0.0136) (0.0146) (0.0144) (0.0286)
0.0767*** 0.0903*** 0.0808*** 0.1359*** 0.1278***
Job Position
(0.0268) (0.0154) (0.0191) (0.0272) (0.0309)
–0.0005 –0.0007*** –0.0006*** –0.0006** –0.0003
Square term of Experience
(0.0005) (0.0003) (0.0002) (0.0002) (0.0005)
Regional Per 0.2262** 0.2951*** 0.3952*** 0.4640*** 0.2595**
Capita GDP (0.1002) (0.0738) (0.0667) (0.0800) (0.1219)
Other Variables
Industry Average 1.2431*** 1.2773*** 1.3650*** 1.2753*** 0.8203***
Income (0.1977) (0.1693) (0.1568) (0.1729) (0.1990)
–4.6761** –5.6222*** –7.2649*** –7.1911*** –1.1552
Constant
(1.8957) (1.4042) (1.4611) (1.4081) (2.0636)
Pseudo R2 0.1466 0.1537 0.1875 0.1614 0.1156

Note: ***, **, * indicate significance at the significant level of 1%, 5%, and 10%, respectively, and the values in parentheses are
self-service standard errors.

Table 6. The decomposition results of male migrant workers’ earnings inequality: Taking the decomposition of Gini as
an example.
Q=10% Q=25% Q=50% Q=75% Q=90%
0.00547 0.00383 0.00376 0.00541 0.00143
Age
(4.80) (3.20) (2.87) (3.89) (1.17)
0.00029 0.00031 0.00197 0.00169 0.00604
Education Level
(0.25) (0.26) (1.51) (1.22) (4.95)
0.01429 0.00753 0.01333 0.01075 0.00798
Marital Status
(12.55) (6.29) (10.20) (7.73) (6.54)
0.04391 0.05320 0.05385 0.05039 0.05314
Work Experience
(38.57) (44.46) (41.19) (36.22) (43.55)
0.00023 0.00192 0.00001 0.00147 0.00124
Health Status
(0.20) (1.61) (0.01) (1.06) (1.02)
0.01236 0.01486 0.01286 0.02703 0.03076
Job Position
(10.85) (12.42) (9.83) (19.42) (25.22)
–0.00916 –0.01283 –0.01193 –0.01081 –0.00692
Square term of Experience
(–8.05) (–10.73) (–9.13) (–7.77) (–5.67)
Regional Per 0.00708 0.01017 0.01436 0.01763 0.00758
Other
Capita GDP (6.22) (8.50) (10.98) (12.67) (6.22)
Variables
Industry Average 0.03938 0.04068 0.04254 0.03557 0.02076
Income (34.59) (34.00) (32.53) (25.57) (17.04)
Residual (%) 52.04 49.60 44.92 41.39 48.61
Note: The degree of contribution to the inequality of estimated value is in parentheses.

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Regardless of the difference between the Gini of the
Whole sample and the sample of male migrant workers,
it only compares the difference in the degree of contribu-
tion of each variable to earnings inequality. The Gini of
the male migrant workers’ sample is decomposed into
eight explanatory variables. If the contribution of gender
is evenly distributed to each variable, the contribution of
each variable of the male migrant worker’s sample will
be higher than the same value in the whole sample. But
in fact, before and after comparison, the contribution of
marital status, work experience, job position, square term
of experience, and industry factors in the sample of male
migrant workers has increased, while the contribution of
education, health status, and regional factors has declined.
Among them, the contribution of health status and re-
gional factors in the five quantiles is lower than the value
of the whole sample.
The results show that, in terms of the contribution of
work experience to earnings inequality, it is the most
vital of all variables. Combined with the square term of
work experience, the contribution of the experience fac-
tor is lower than that of the industry factor in the lowest
two quantiles. In addition, it needs to be pointed out that
the analysis of this article finds that education has little
influence on earnings inequality. This is obviously related
to the distribution of the education of the migrant work-
ers, and the education level of them is mostly junior high
school or senior high school. While, this does not mean
that education is not important to earnings.
6. Conclusions and Prospect
Based on the survey data of migrant workers, this paper
studies the influence of work experience and other factors
on earnings inequality of migrant workers. On the basis
of quantile regression, the Shapley value decomposition
is used to obtain the contribution of various variables that
can affect earnings to the earnings inequality, including
experience. It is found that in the whole sample, gender
affects the earnings inequality of migrant workers to a
large extent. Furthermore, using the sample of male mi-
grant workers, we find that the impact of experience on
earnings inequality is still stable and essential.
In terms of policy, experience is different from educa-
tion. The latter can reduce the earnings inequality caused
by the uneven distribution of education by further imple-
menting compulsory education and increasing education
investment. But experience is related to age, occupation
and other factors. Can we adjust the policy and play a role
in reducing earnings inequality?
This article argues that if an individual’s experience is
related to age, the difference cannot be adjusted by exter-
nal factors such as policy, and there is no need to adjust.
However, it is necessary to minimize the differences in
the experience of employees of the same age level, which
requires more employment security to be provided to
employees, avoiding an unnecessary change of industries
or occupations, which will effectively accumulate work
experience.
What’s more, this article still has regrets in the follow-
ing two aspects, which need to be improved in follow-up
research. First, limited to the availability of data, the abil-
ity factor is not considered in the model, which will over-
estimate the rate of return of experience and education to
a certain extent. Second, there are many factors that affect
the earnings of migrant workers, which reduce the explan-
atory power of the classic labor theory. Because tradition-
al theories are often based on the completely free flow
of labor factors and other factors, in reality, due to the
restrictions of employment systems and industry barriers,
the classic Mincer equation cannot effectively explain the
earnings decision of migrant workers. In specific empiri-
cal research, the fitting degree of the regression equation
is often not high enough.
In addition, it needs to be explained that the employ-
ment of migrant workers is becoming more and more
diversified in reality, which makes the connotation of mi-
grant workers richer and richer and cannot be expressed
by manual workers. This also requires the further expan-
sion of the classical income determination theory.
Author Contributions
Zhiwang LV: writing—original draft preparation; Jiaqi
PENG: writing—review and editing; Ling MA: methodol-
ogy; Jun LI: supervision. All authors have read and agreed
to the published version of the manuscript.
Funding
This research was founded by the 2115 Talent Develop-
ment Program of China Agricultural University.
Data Availability
Not applicable.
Conflict of Interest
The authors declare no conflict of interest.
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