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Farmers' Post-Harvest Grain Management Choices under Liquidity Constraints and Impending Risks: Implications for Achieving Food Security Objectives in Ethiopia

Author

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  • Gabriel, Abebe H.
  • Hundie, Bekele

Abstract

The purpose of this paper is to explore into the relationships between farmers' post-harvest grain management practices/capacities on the one hand, and liquidity constraints and impending risks on the other, in the context of achieving food security objective at household and national levels. The findings are primarily based on a household survey data from 300 randomly selected major food grain producing peasant households in three rural districts of Ethiopia. Results indicate that farmers perceived post-harvest grain loss as an imminent risk, and that instant sales of grains after harvest are triggered by temporary but immediate liquidity preferences to meet various obligations in the absence of or limited sources of cash other than crops sales, and by an impending risk of post-harvest grain loss and the limited capacity to prevent it. While specific considerations are essential, the general policy implication is that post-harvest grain management needs to be taken on board as a matter of strategic policy concern, not just from the perspective of reducing losses but also from the view point of considering it as a viable and dynamic economic activity in terms of generation of employment, value addition and income linkages.

Suggested Citation

  • Gabriel, Abebe H. & Hundie, Bekele, 2006. "Farmers' Post-Harvest Grain Management Choices under Liquidity Constraints and Impending Risks: Implications for Achieving Food Security Objectives in Ethiopia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25716, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25716
    DOI: 10.22004/ag.econ.25716
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    Cited by:

    1. Dingqiang Sun & Huanguang Qiu & Junfei Bai & Haiyan Liu & Guanghua Lin & Scott Rozelle, 2013. "Liquidity Constraints and Postharvest Selling Behavior: Evidence from China's Maize Farmers," The Developing Economies, Institute of Developing Economies, vol. 51(3), pages 260-277, September.
    2. Wondimagegn Tesfaye & Gebrelibanos Gebremariam, 2020. "Consumption smoothing and price enhancement motives for grain storage: empirical perspectives from rural Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-19, December.
    3. Martin Julius Chegere & Razack Lokina & Agnes G. Mwakaje, 2020. "The impact of hermetic storage bag supply and training on food security in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(6), pages 1299-1316, December.
    4. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2018. "The impacts of postharvest storage innovations on food security and welfare in Ethiopia," Food Policy, Elsevier, vol. 75(C), pages 52-67.

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