UNIVERSITY OF PENNSYLVANIA - AFRICAN STUDIES CENTER
EUE: HARARGHE FARMERS BETWEEN SUSTENANCE & CASH ECONOMY - Title

EUE: Hararghe Farmers on the Cross-Roads Between Subsistence & Cash Economy


Prepared by Ralph Klingele, UNDP-EUE Field Officer


09/1998


I. Introduction

1.1 Study aims & methodology

The Hararghe highlands are situated in the eastern part of Ethiopia, circumscribed by East & West Hararghe Zones, part of the Oromyia National Regional State. As will be described hereafter, the area is known for its cash crop production and food crop deficit.

The main aims of the study are to reveal the recent trends of cash crop versus staple food production and to identify its impact on the rural economy in general and on food security in particular, based on the presumption that cash crop production is gaining on importance at the expense of food crops.

This report is based on information gathered during several field trips including a field survey, as well as from the study of relevant documents in Addis Ababa. The field trips, including a previous monitoring mission, allowed the writer a limited view of 15 aanaas (weredas) and the opportunity to consult the library of the Alamaya University of Agriculture. The field survey was conducted in the three aanaas of Deder, Kombolcha and Habro, where discussions were hold with groups of farmers according to their specific farm management, based on a detailed checklist.

We want to express our gratitude to the farmers for their frank and open contribution, to the zonal and communal offices of agriculture for their helpful collaboration, to the relevant staff of the Alamaya University of Agriculture for their effort to provide relevant documentation and to all other persons who shared their knowledge with the producer of this report.

The interpretation of findings, the conclusions and recommendations express the view of the writer of this report and do not imply the expression of any opinion on behalf of people having contributed to the collection of data.

1.2 General description of the area

1.2.1 Geographical conditions

The Hararghe area is situated in the eastern part of Ethiopia, 200 to 400 kms east of the capital city Addis Ababa, some 300 kms south of Djibouti and 250 kms west of Hargeisa towns. In the sub-regional context (Djibouti, Northwest Somalia, & East Ethiopia) Hararghe is the only highland area with adequate climatic conditions for rainfed agriculture and a reasonably well developed transportation network by road, rail and air. Hararghe thus enjoys a privileged position for cash crop production and marketing, with the trading potential still exceeding the actual production capacity.

The road sector development program foresees the upgrading of the gravel trunk road going from Awash to Kulubi with an asphalt concrete overlay and the rehabilitation of the Harar-Dengego & Kulubi-Dire Dawa roads from asphalt surface dressing to asphalt concrete overlay. The program might extend its rehabilitation works on link roads leading to wereda main towns, especially for roads under the responsibility of the Ethiopian Road Authority like the Arba Reketi/Darolebu road.

The agroclimatic range includes lowland (kolla, 30-40%), midland (weyna dega, 35-45%) and highland areas (dega, 15-20%), with lowest elevations at around 1,000 m asl, culminating at 3,405 m, at the top of Gara Muleta mountain. There are two rainy seasons, the small belg and the main meher. Belg production is limited within the dega zone and part of the wetter weyna dega, but belg rains are widely used for land preparation and seeding of long cycle meher crops (sorghum & maize). Annual rainfall averages range from below 700 mm for the lower kolla to nearly 1,200 mm for the higher elevations of weyna dega & dega zones. The variability of rainfall from year to year and its often uneven distribution during the growing seasons give place to a wide range of climatic hazards which farmers have to deal with.

The main staple food includes sorghum and maize, as well as sweet potato, which is extensively cultivated during bad years to improve food security. Other food crops include barley, wheat, teff and pulses. Cash crops like chat (a popular, mild narcotic) and coffee have a long standing tradition, complemented by Irish potatoes, onions/shallots and some other vegetables. They are mainly cultivated in the weyna dega zone, with some extension into the lower dega and exceptionally into kolla (chat). The eastern lowlands (Babile, Gursum) and to some extent the southern lowlands grow groundnuts as a cash crop. Some twenty years ago, the lowlands of Mieso produced sesame, but meanwhile cultivation has stopped for climatic (& eventually economic) reasons, even so sesame is more tolerant to aridity than groundnuts.

Climatic hazards are increasingly frequent in Hararghe, with pest infestations and crop diseases additionally hampering crop production. Coupled with high land pressure, the margin of farmers for agroeconomic decisions is progressively narrowing.

1.2.2 Population & livelihood

The overwhelming majority of the people are rural, with only 6% of urban population for the two zones. This figure might be slightly misleading, as the two major towns bordering or enclosed within Hararghe, Dire Dawa and Harar, are not part of the administrative circumscription.

The urban population is mainly active in the service sector, as members of public services and administration, or in trade and hostelry, with a small manufacturing component. The vast majority of rural population is living from agriculture, with some pastoralists and/or agropastoralists in the lowland areas.

The estimated population breakdown for 1998 per aanaa (wereda) and zone, as well as the population density is listed in Table I.

1.2.3 Development trends & impact

Increasing population density coupled with the lack of alternative employment opportunities leads to progressive land pressure and subsequent shrinking of individual landholdings. Likewise, arable land has to be used intensively, leaving practically no room for fallowing, as can be clearly seen in Table II. Under actual conditions, crop rotation and fallow is no longer practised through managerial decisions based on agricultural technics, but dictated by climatic hazards. During a bad year, fallow will increase, especially in the lowlands, whereas the crops to be planted on individual plots will have to be chosen according to moisture availability and expected length of growing period. In this context, short cycle crops increasingly gain on importance.

Table I: Population Breakdown: 1998 Estimation*

Zone

Aanaa (Wereda)
Rural

Population

Urban

Population

Total

Population

Pop. Density
W-Hararghe
Guba Koricha/Anchar
152'245

4'423
156'668


Mieso
82'724

22'738
105'462


Chiro
307'774

23'458
331'232


Doba
102'326

1'225
103'551

Total Area
Tulo
119'495

12'497
131'992


Mesela
121'798

3'671
125'469
?
?
Kuni
115'894

12'170
128'064


Habro
122'808

16'963
139'771


Boke
81'983

2'352
84'335


Darolebu
116'586

8'400
124'986

Subtotal
West Hararghe
1'323'633
93%
107'897
1'431'530


Number of Households
275'756

25'092
300'848
(4.8/4.3)
E-Hararghe
Gorogutu
114'111

4'877
118'988


Deder
186'220

15'855
202'075


Meta
186'660

7'831
194'491


Kersa
128'740

7'668
136'408


Kurfa Chele
40'298

3'101
43'399


Alemaya
166'592

20'914
187'506

Total Area
Kombolcha
87'013

6'180
93'193


Jarso
98'678

1'954
100'632
?
?
Gursum
160'664

9'744
170'408


Babile
46'156

10'349
56'505


Fedis
166'190

2'921
169'111


Grawa
196'821

4'885
201'706


Bedeno
192'402

5'020
197'422


Melka Balo
132'044

6'486
138'530


Gola Oda/Meyu Muluke
47'489

2'529
50'018

Subtotal
East Hararghe
1'950'078
95%
110'314
2'060'392


Number of Households
414'910

25'654
440'564
(4.7/4.3)
Total

3'273'711
94%
218'211
3'491'922


Number of Households
690'666

50'746
741'412

* based on 1994 census, readjusted by an annual growth rate of 3%

Table II: Estimate of Area under Different Land Use by Size of Individual Landholdings (1994/95)*

Type of

Size of Individual Landholdings & Area Coverage
Total
Land Use
0.10 - 0.50 ha
0.50 - 1.00 ha
1.00 - 2.00 ha
2.00 - 5.00 ha
5.00 - 10.00 ha
ha
West Hararghe
ha
%
ha
%
ha
%
ha
%
ha
%
ha
%
- Annual Crops
26'330
77%
41'290
79%
43'530
83%
21'020
83%
6'980
99%
139'150
81%
- Perennials
5'890
17%
7'360
14%
6'770
13%
3'590
14%
-
-
23'610
14%
- Grazing Land
130
-
780
2%
280
1%
430
2%
-
-
1'620
1%
- Fallow Land
90
-
710
1%
590
1%
-
-
-
-
1'390
1%
- Wood Land
-
-
-
-
-
-
-
-
-
-
-
-
- Other Land Use
2'010
6
2'120
4%
1'090
2%
260
1%
50
1%
5'530
3%
Total
34'450
100%
52'260
100%
52'260
100%
25'300
100%
7'030
100%
171'300
100%
%/Size of Landh.
20.1%

30.5%

30.5%

14.8%

4.1%

100%

East Hararghe












- Annual Crops
38'720
73%
70'620
80%
50'370
82%
9'430
79%
-
-
169'140
79%
- Perennials
5'860
11%
7'920
9%
5'560
9%
1'020
9%
-
-
20'360
9%
- Grazing Land
780
2%
2'000
2%
1'410
2%
640
5%
-
-
4'830
2%
- Fallow Land
2'670
5%
2'830
3%
2'030
3%
580
5%
-
-
8'110
4%
- Wood Land
-
-
-
-
30
-
-
-
-
-
30
-
- Other Land Use
4'800
9%
4'770
6%
2'180
4%
220
2%
-
-
11'970
6%
Total
52'830
100%
88'140
100%
61'580
100%
11'890
100%
-
-
214'440
100%
%/Size of Landh.
24.6%

41.1%

28.7%

5.6%



100%

E & W Hararghe
87'280

140'400

113'840

37'190

7'030

385'740

%/Size of Landh.
22.6%

36.4%

29.5%

9.7%

1.8%

100%

* Adapted from Tables of the Central Statistical Authority

The impact of land availability and distribution for individual farmers is shown in the following table. Choosing an estimated average size of landholding for each category, considering small landholdings ( 0.1-0.5 ha) above and bigger farms ( 2 ha) below average, we obtain the following approximate values of number of farms per average size of individual landholdings, which correspond to a possibly more realistic average rural household size of around 6.5 people, as compared to the 1994 census (W-H 4.8, E-H 4.7 persons/HH).

Table III: Average Size of landholdings

Area

Average Size of Individual Landholdings
Total

0.4 ha
0.75 ha
1.5 ha
3 ha
6 ha

West Hararghe






- Area Coverage
34'450 ha
52'260 ha
52'260 ha
25'300 ha
7'030 ha
171'300 ha
- Number of Farms
86'125
43%
69'680
35%
34'840
17%
8'433
4%
1'172
1%
200'250
100%
East Hararghe






- Area Coverage
52'830 ha
88'140 ha
61'580 ha
11'890 ha
-
214'440 ha
- Number of Farms
132'075
45%
117'520
40%
41'053
14%
3'963
1%
-
-
294'611
100%
E & W Hararghe
87'280 ha
140'400 ha
113'840 ha
37'190 ha
7'030 ha
385'740 ha
- Number of Farms
218'200
44%
187'200
38%
75'893
15%
12'396
3%
1'172
-
494'861
100%

According to the available data we obtain the result of 44% of farmers with landholdings not exceeding 0.5 ha and 82% of farmers with landholdings 1 ha. Even if the accuracy of available data is questionable, they nevertheless reveal the actual trend where farmers main capital besides labour, the arable land, is reaching a critical stage of fragmentation. The prevalence of extreme land pressure has already resulted in vast deforestation and the cultivation of unsuitable slopes in the highlands and mid-highlands, causing severe environmental damage. In addition, considering the fact that with a population growth rate of around 3%, farm units are expected to double approximately every 20 years, future prospects in agriculture look very bleak.

The situation is complicated further by the multitude of very diverse farming systems, as practically every farmer follows his individual farm management strategy in terms of physical and human inputs, crop varieties, etc. As a common trend, especially in weyna dega zones, taking advantage of the specific geographical situation, farmers respond to the worsening situation by progressively increasing their cash crop production, in order to improve the performance of their farms in terms of cash value. The subsequent progressive shortage of staple food is made up by the supply of cereals originating from neighbouring surplus producing areas of Arsi, Bale and to a lesser extent East Shoa.

II. Main Cash Crops, Location & Development Trends

Main cash crops are chat and coffee as perennials and Irish potatoes, onions/shallots and other vegetables as annuals. They are grown within their respective agroclimatic zones, with a concentration on irrigable plots for vegetables and chat. Chat as a very perishable commodity can only be cultivated close to good roads and not too far from the main markets or airport. Its cultivation is therefore concentrated along the main road from Chiro aanaa up to Harar and Dire Dawa and in neighbouring areas with good link roads, like Habro and Kuni for West Hararghe and Deder, Kombolcha and Gursum for East Hararghe. Vegetables grown in Hararghe, being generally less perishable, enjoy a wider geographical market, with local concentrations according to climate or irrigation possibility and soil fertility. Coffee as a non-perishable commodity is grown within its agroclimatic zone nearly all over Hararghe, with a net concentration in remote areas with bad or no road access. In the eastern lowlands (Babile, Gursum) groundnuts are a common cash crop.

In general, the development trend for cash crops over the last decade is clearly positive, with chat being the leading crop, followed by Irish potatoes, onion/shallots & other vegetables; whereas coffee generally marks a very low development trend except for three aanaas in West Hararghe, while being the only cash crop showing some localised negative trends.

All farmers asked about their planned strategies for the future responded that they intend to increase their cash crop production. Farmers living in remote areas with difficult access are mainly interested in coffee, especially if Coffee Berry Disease can be controlled, whereas better located farmers foresee an expansion of their chat plantations. While the actual farming systems are still characterised by a strong subsistence component, the continuous trend in favour of cash crop production will soon bring the Hararghe farmers to the cross-roads between a subsistence and cash economy.

Table IV shows the breakdown of main cash crops for each aanaa according to their local importance, the specific cultivation methods, the development trends over the last decade and the percentage of farms cultivating them. They are based on estimations done by the zonal departments of agriculture.

III. Crop Description

3.1 Coffea arabica

All cultivated coffee species originate from Africa, the most appreciated for its quality, coffea arabica, from Ethiopia. The plant has meanwhile been propagated to other African countries and to overseas. The bulk of arabica coffee is produced on the American continent. Collection of wild coffee followed by the cultivation of coffee plants has a long tradition in Ethiopia and coffee was already exported to Arabic countries in the 15th century. Ethiopia is also the only African country with a long-standing coffee drinking tradition, well embedded in the everyday life.

In Hararghe coffee is generally grown at altitudes ranging from around 1,700m to 2,000m asl, the lower limit being determined by the average amount of rainfall ( 1,000 mm) and distribution and the higher by the ambient temperature (best growth with average daily maximum temperatures of 24º C).

Coffea arabica is a shrub with a height not extending 5 m. Its roots penetrate the soil up to 3 m deep, with an extensive superficial fibre root system, developing on a radius of up to 1.5 m around the stem. Coffee plants need deep, well drained soils with a good capacity for moisture retention. Optimal pH-level ranges between 5.5 to 6.5.

Table IV: Main Cash Crops per Aanaa & Development Trends

East Hararghe

Aanaa

Cash Crop
Cultivation Method
Last Decade
% of


rainfed
irrigated
pure stand
intercropped
Dev. Trend
Farms
Gorogutu
Chat

x

xxx
x

~ 50%
Deder
Chat
xxx
xxx
x
xxx
xxx



Coffee
xxx
x
xxx

(x)

~ 65%

Potato
x
xx
x

x(x)



Onion & Veg.
x
xx
x

x(x)


Meta
Chat
x
xxx

xxx
xxx



Potato
x
xxx
xxx

xx

~ 60%

Coffee
xxx

xxx

(x)



Onion
x
x
xxx

x


Kersa
Chat
xx
xx

xxx



Potato
x
xx
xxx

stable
~ 70%

Other Veg.
x
xx
xxx



Kurfa Chele
Potato
x
x
xxx

stable
~ 15%
Alemaya
Chat
(x)
xxx

xxx
xxx



Potato
x
xxx
xxx

xxx

~ 75%

Onion & Veg.
x
xxx
xxx

xxx


Kombolcha
Chat
x
xxx

xxx
xxx



Potato

xxx
xxx

xxx

~ 75%

Onion & Veg.

xxx
xxx

xxx


Jarso
Potato
xx
xx
xx
xx
x

~ 20%

Chat
x
xx
x

local consumpt.

Gursum
Chat
xx
xxx

xxx
xxx



Peanut
xxx

xxx

x

~ 35%

Coffee
x

xxx

x


Babile
Peanut
xxx

xx
x
(x)

~ 50%
Fedis
Shallot
xxx

xxx

x

~ 30%
Grawa
Coffee
xxx

xxx

x

~ 5%

Banana

x
xxx

stable
~ 8%
Bedeno
Coffee
xxx

xxx

xx

~ 15%
Melka Balo
Coffee
xxx

xxx

x

~ 20%

Chat
xx
xx

xxx
x


Ranking: xxx high xx medium x low

West Hararghe

Wereda

Cash Crop
Cultivation Method
Last Decade
% of


rainfed
irrigated
pure stand
intercropped
Dev. Trend
Farms
Anchar
Coffee
xxx

xxx
(x)
x

10%
Guba
Chat
xxx
x
xx
x
xx

5%
Koricha
Onion
xxx
x
xxx

x

4%
Mieso
Chat
x
xxx
xxx

xxx

5%
Chiro
Chat
xxx
xx
xx
x
xxx

40%

Coffee
xxx

xxx
(x)
x

20%

Onion
x
xxx
xxx

xxx

15%
Doba
Chat
xxx
xx
xx
x
xxx

15%

Coffee
xxx

xxx
(x)
x

15%

Onion
xx
xx
xxx

xx

5%
Tulo
Chat
xx
xx
xx
x
xx

20%

Coffee
xxx

xxx
(x)
x

10%

Onion
x
xxx
xxx

xx

10%
Mesela
Coffee
xxx

xxx

xxx

65%

Chat
xxx
xx
xx
x
xx

10%

Pepper
xxx

xxx

xx

3%
Kuni
Coffee
xxx

xxx


xxx
45%

Chat
x
xxx
xx
x
xxx

25%

Pepper
xxx
x
xxx

xxx

10%

Onion
xx
xx
xxx

xxx

5%
Habro
Coffee
xxx

xxx


xx
60%

Chat
x
xxx
xx
x
xxx

30%

Pepper
xxx

xxx

xx

5%

Onion
xx
xx
xxx

xx

3%
Boke
Coffee
xxx

xxx

xxx

65%

Chat
xxx

xx
x
x

3%

Pepper
xx

xx

x

2%
Darolebu
Coffee
xxx

xxx

xxx

75%

Chat
xxx

xx
x
x

8%

Pepper
xxx

xxx

x

5%

Sugar Cane

xxx
xxx

xx

3%
Ranking: xxx high xx medium x low

In Hararghe coffee is generally grown in pure stands, with intercropping only during the young stage. It is grown mostly under rainfed conditions, sometimes improved by water conservation measures and even harvesting devices for run-off water in more arid areas. In some locations irrigation is used, especially after the main rainy season until harvest time. Coffee seedlings are mostly bought from nurseries handled by the Ministry of Agriculture (MoA), with some farmers producing their own seedlings. They are planted mainly on flat land or gentle slopes with reasonably fertile soil, in pits enriched with manure, at a distance of generally 2 by 3m under normal climatic conditions and up to 2.5 by 4 m in dryer areas. Coffee plants are mostly grown under the full sun, with shadowing only practised in few areas.

Manure is applied every year according to availability, whereas chemical fertilisers are used intermittently, whenever financially possible. Weeding and harrowing is done two to four times a year. All consulted farmers are mulching their coffee plantations with different available materials. Pruning is generally done once a year after harvest. Old trees are cut back to rejuvenate. Without fertilisation coffee plantations decrease soil fertility and once well established, have a negative effect on neighbouring crops.

As main diseases on coffee, farmers mentioned above all Coffee Berry Disease (CBD), followed by die-back and leaf rust. CBD is causing severe damage and important yield reductions every year and is probably the main factor for the decreasing interest in coffee as a cash crop. Since farmers have to cover the full costs of phytosanitary measures, few coffee producers apply them for its prohibitive costs. Actually, fungicide applications are mostly not profitable, as expenses generally exceed the benefit from higher yields. The coffee implementation project (CIP), active since 15 years covering 60% of Ethiopia's coffee producing areas, works also in three aanaas of West Hararghe (Kuni, Habro, Darolebu) through the MoA offices. Unlike the Jimma area, it has not yet succeeded in selecting consistently more resistant varieties adapted to the agroclimatic conditions of Hararghe. Farmers have no local remedies against coffee diseases. Main measures mentioned to avoid high infestation is to refrain from working in the coffee plot during the rainy season.

Coffee is harvested between October and January. The average yield per hectare amounts to 400-500 kg of clean beans, with big variations between years, according to climatic conditions, degree of infestation and fertiliser application, ranging from below 400 kg up to 700 kg/ha and more. Coffee producers of East Hararghe and Mesela generally process their coffee on the farm to sell clean coffee beans, whereas the coffee produced in the central and southern part of West Hararghe (Kuni, Habro, Boke, Darolebu) is sold as dried cherries, the hulling being done by the traders.

Some coffee farmers hire casual labour, generally not exceeding 50 person-days per year. The wage rate amounts to around 5 Birr per day, with additional food and chat furnished by the employer. Workers generally originate from the aanaa or neighbouring areas, with some people coming from as far as Shoa and Gojam (W-H).

Main problems with coffee production mentioned by the farmers were: high incidence of CBD, high price for imported agricultural inputs like chemical fertilisers & phytosanitary products and price fluctuations on the coffee market.

3.2 Catha edulis

Chat is a tree reaching 25 m when grown naturally, but is generally kept to 1.5-4 m when cultivated as a cash crop. Chat occurs naturally in East Africa at elevations between 1,500 m to 2,500 m asl. Once established it grows well under a wide range of soils and climatic conditions, having a better drought tolerance than coffee. It can be grown in dry areas with irrigation, but does not tolerate poor drainage and does not do well in wet soils. It performs best in the midlands (weyna dega) between 1,500 m and 2,100 m asl, but is cultivated in Hararghe into the lower dega, until around 2,400 m asl, if not too cold and frost free (Amare Getahun & A.D. Krikorian, 1973).

The wood of chat trees is suitable for cabinet work, fuel wood and appreciated for house construction as termites do not attack it, while different parts of the tree are used as local medicine. Chat is cultivated as a cash crop for its young leaves and tender stems chewed as a mild natural stimulant, which, like coffee or alcoholic beverages, plays an important role in the social life of people in Ethiopia in general and in Hararghe & Somali Region in particular. It is also highly appreciated in neighbouring Somalia, Djibouti and Yemen. Its use in Africa and the Arabic peninsula goes back to the 13th century (Kalix 1985).

In Hararghe chat is generally planted on hillsides, in rows along contour lines on level bunds (spacing in the row 1m, between rows 2m). On reasonably fertile soils chat is intercropped with maize and other food crops, whereas on steep slopes and marginal land it is grown in pure stands. Alongside with the progressive development of chat production, farmers add additional rows in between, finally reaching pure stands. Pure stands have been more frequently observed in West Hararghe. Chat is usually planted or transplanted in August by vegetative propagation from suckers or branches. Irrigation is used whenever possible, to increase the number of main harvests, the yield, the quality and the price.

All consulted farmers apply manure, generally once a year, with some farmers using also chemical fertilisers according to cash availability. Weeding and harrowing is done around three times a year. Few farmers are mulching their chat plantation. Aside of harvesting, pruning is done every three to four years to rejuvenate the plants. Defoliation is practised by part of the farmers, either in bad years during the dry season or to obtain best quality. Chat is believed to decrease soil fertility and to have some negative effects on neighbouring crops from shade, concurrence of nutrients and moisture. The widely used practise of intercropping somewhat attenuates the statement of the farmers and might mainly apply for chat plantations with narrow spacing between rows ( 2m).

Chat in Hararghe is not highly affected by pests and diseases, a situation which might slowly change for the worse with increasing density of plantations. Some fungal diseases can be observed during the rainy season, whereas insects are the main cause of damage. To control the infestations, farmers collect insects by hand, apply locally produced remedies (e.g. a mixture of crushed tobacco leaves, garlic & soap) or even spray insecticides.

Rainfed chat gives a maximum of two main harvests towards the end of the rainy seasons. Under irrigation three and more main harvests can be realised and eventually timed to fall into a high price period. In addition, lower quality chat is harvested all through the year, sold on local markets and used for home consumption. On the average chat yields around 700-1,000 kg per hectare.

From the consulted farmers during the field survey, only few hire casual labour for up to 30 person-days a year. The wage rate is equal to that offered by coffee producers.

Main problems with chat production mentioned by the farmers were: shortage of manure, high price for chemical fertiliser, lack of credit facilities and low availability of irrigation possibilities.

3.3 Comparative advantages of coffee & chat

Table V: Comparing Coffee and Chat Cultivation

Criteria

Coffee
Chat
Agroclimatic range

(without irrigation)

moist & wet weyna dega

1'700-2'000m

1'000 mm

lower dega, dry to wet weyna dega, moist higher kolla: 1'400m - 2'500m

optimal 1'500m - 2'100m

Soil conditions
well drained, deep & fertile
high range of soils, but well drained
Drought tolerance
moderate to good (in deep & fertile soils)
high
Establishment
3-6 years (first harvest/full establ.)
3-5 years
Cultivation area
according to agroclimatic range
only near to at least good secondary roads & not too far from markets & airports (except for local cons.)
Production/management
complex
easy
Agroforestry use
not adapted for its extensive

superficial fibre root system

well adapted
Vulnerability to pests &

diseases

high, especially for CBD
low; in the case of leaf hopper infest.,

damage produces expensive quality

Harvest
1 time per year, generally low due

to CBD, soil fertility, management

2 (rainfed) to 5 times/year (irrigated)

plus regular harvest for local market

Storage possibilities
for a long period
none
Price
good, but depending on fluctuating world market
medium to high, according to quality,

fluctuating, high tax charges

Income
medium
high

3.4 Irish potato

Irish potato is an annual root crop with a vegetative cycle of around four months. It is mainly grown in higher weyna dega and lower dega. Often cultivated in pure stand, it can also be found intercropped with chat (dega) or vegetables (irrigated). It is generally planted in April & July for rainfed and in October & December for irrigated plots.

Recommended plant density by the Alemaya University of Agriculture (AUA) amounts to 48,000 plants or 1,500 to 2,000 kg of seedlings per hectare. As potato seedlings have a short storage time, they are usually purchased or multiplicated during the first cropping season. Even though farmers often use a lower plant density than recommended, the purchase of seedlings represents a high investment and share cropping is common.

Potato plots are tilled and weeded around four times. Its cultivation is labour intensive, with an average of 1,000 to 1,500 hours per hectare (Storck 1997). Different diseases, especially late blight, are common and can seriously affect the yield. Farmers therefore often prefer the dryer belg season for cultivation with lower incidence of diseases. The AUA has selected a more resistant variety, but the amount of seedlings available is too little to satisfy the needs. In the average potato plots yield around 5-7 MT/ha under rainfed conditions. With irrigation it can easily double or even triple, especially with good management and adequate fertilisation.

High yield and calories production during a short growing cycle make potato an interesting food and cash crop. High expenses for seeds and chemical fertiliser, the risk of failure due to climatic hazards and diseases and the shortage of improved seeds resistant to the common diseases are the limiting factors for its successful production (Berhanu Adenew, Harmen Storck, 1992).

3.5 Onion & shallots

Onion and shallots are annual vegetables grown in weyna dega and lower dega under rainfed conditions and with irrigation. They are generally cultivated in pure stands. Planting periods are similar to Irish potato and when rainfed, farmers prefer the dryer belg season to lower the incidence of diseases. It is one of the most important commercial vegetable crops on the national market as well as for export.

The recommended planting rate amounts to 1,000 kg of bulbs per hectare. Like potatoes, the planting material is usually purchased and represents a considerable investment. The MoA disposes of some onion seeds, but farmers prefer the local varieties and bulb planting.

The cultivation of onion/shallots is even more labour intensive than that of potatoes, with an average of 1,300 to over 2,600 hours per hectare. Yields vary a lot and can be considered in the range between 3.5 to 9 MT per hectare. The not marketable yield, representing some 20%, will be used as planting material, for home consumption and for sell on the local market. Being an important ingredient for the Ethiopian kitchen, onion and shallots have a good marketing potential within the country and are less dependent on export trade, even if the price level might be lower.

3.6 Others

There are several other crops cultivated as cash crops or for dual purpose like pepper, various vegetables, groundnuts, sugar cane, fruits, etc., which are sold on the local or national markets or exported to neighbouring countries. For this survey we are limiting our observations to the four main cash crops, listed above.

IV. Marketing Possibilities & Practise

Coffee: Farmers sell their coffee directly to coffee merchants, who are generally established within the coffee producing aanaas. The coffee is either brought by the farmer or collected by the merchant. All coffee goes through dry processing. After harvest the coffee cherries get sun dried and then hulled, either by hand or with a huller. Coffee producers of East Hararghe and Mesela are selling the clean beans, whereas those of Kuni, Habro, Boke and Darolebu sell the dried cherries, the hulling being done by the merchants.

The producer price for clean beans varies from 12 to 16 Birr per kilo, while dried cherries fetch from 4.50 to 6 Birr per kilo. Farmers usually sell 80% to over 90% of their production, whereas the remaining is kept for home consumption. As the coffee price is generally lowest after harvest, farmers will store their production awaiting a better price, whenever they can afford it. The dried pericarp recuperated after hulling is also sold, fetching around 13 Birr per quintal. It is used to make a coffee-like beverage.

No marketing problems have been mentioned by the farmers. But, while farmers acknowledge the increment of the producer price for coffee, they compare it to the actual production and living costs which have equally risen, the lack of credit facilities, etc., to conclude that in the end, their financial situation has not changed much.

The Hararghe coffee is auctioned in Dire Dawa and exported through Djibouti, mainly to Arabic countries and Japan. While the coffee produced in East Hararghe and Mesela is highly quoted, the one from the other aanaas fetches a lower price or is even rejected by the exporters. According to coffee merchants, the good quality coffee is actually paid 17.35 Birr per kilo at the Dire Dawa export market since the past four months. Merchants have to pay a tax at aanaa level, which reportedly amounts to 5,000 Birr per truck load of 120 quintals.

Mesela in the West and Bedeno in the East Hararghe zone are well known for high quality coffee. There is also the yellow bean coffee, considered to be of highest quality, which is not area specific but occurring at localised places, supposed to have specific soil conditions.

Chat: Being a very perishable commodity which has to reach the consumer within two days, chat requires a sophisticated marketing system with a well functioning transportation network, especially when final destinations are as far as Djibouti & Aden (by air from Dire Dawa) and Hargeisa, Berbera & Boosaaso (by air from Hargeisa). Chat from Hararghe has known an ever growing export market. In 1948 exports amounted to 200 MT, in 1957 it reached already 1,400 MT. The current annual tonnage exported could not be determined, but with one single chat trader exporting by himself an average of 1,000 MT per year, one can imagine to what extent the trade has expanded.

Chat is generally harvested early in the morning or towards the evening and transported to the trader or the road side, where it gets collected. In some areas like Habro and Kuni, traders directly negotiate with the producer the crop of a plot, which then gets harvested by workers hired by the trader. Chat is either bought directly or through a broker, whose cost may be paid by the trader or the producer, depending on the area. Some traders purchase, process and export chat by themselves, others buy and transport it to a processing centre like Awadaye, who is the most important.

The main harvest of high quality chat is usually marketed by the head of household, while the chat sold for local consumption is handled by women. To facilitate the access to the production area, farmers usually contribute their labour to maintain the feeder roads. For the maintenance of the link road leading from Arba Reketi to Habro and Darolebu, farmers had reportedly to contribute 3 Birr each for grader work.

Generally over 90% of production is sold, the rest being used for home consumption. During the survey the producer price for export quality chat ranged from 20 to 50 Birr per kilo, with an average price of around 30 Birr. Farmers complained that prices have dropped considerably due to the imposed tax increase, which, paid by the trader, is finally weighing on the producer price. Traders confirmed the phenomena, adding, as additional reason for the price drop, the low purchasing power of consumers, provoked by the ban on livestock sales originating from Somalia, Ethiopia and Kenya. A chat trader, exporting to Hargeisa, listed the different tax loads as follows: At aanaa level 0.20/kg, Awodaye 5.60/kg (finance), Harar Region 0.20/kg, Jijiga 3.50 plus 0.20/kg, Togochale 0.50/kg, totalling over 10 Birr per kilo of chat from the producer area to the Somali border. There is virtually no other agricultural product fetching as high a tax income as chat.

Chat prices fluctuate also seasonally according to the amount of supply on the market. As the harvest of rainfed chat cannot be timed according to market trends and supply, the peak yield from chat farms of a same area will fall into the same period, provoking a high concurrence. Only the chat farmers having access to irrigation and eventually practising defoliation, can profit from top prices.

Main problems with marketing of chat mentioned by farmers are: the perishable character of product not allowing storage, the recent tax increase lowering producer prices and in some cases, the low number of traders resulting in imposed prices.

Irish potatoes, onion & shallots: Onion & shallots and to a lesser extent potatoes have an important inland market, as well as a high export potential. Moderately perishable, the products are generally sold quite soon after harvest, leaving little margin to fetch better prices. They are either sold directly to traders or temporarily stored by local merchants. Producer prices fetched reportedly 1.50 Birr per kilo of potatoes and around 3 Birr per kilo of onion. Retail prices in Harar amounted to 2 & 5 Birr per kilo of potatoes and onion respectively.

V. Impact of Cash Crop Production on Rural Household Economy & Food Security

5.1 Farm size & subsistence

Land, labour and livestock are the main productive assets of the Ethiopian farmers. Likewise other highland areas in Ethiopia, the absorption of the major part of population growth within the agricultural sector leads also in Hararghe to progressive land pressure and ever shrinking landholdings. Due to the scarcity of pasture land, livestock is partly fed on crop residues, the production of which is gradually decreasing according to farm size, lowering the margin for livestock production. Reduced manure application on crops and less animal products for sell further decrease the overall farm income, accentuating the vicious circle of impoverishment.

Over the years, Hararghe farmers have developed different strategies to counter the worsening situation, by making intensive use of available household labour for on- and off-farm activities and by intensifying their cash crop production whenever possible. A study, focusing on the minimum size of smallholder farms in the Hararghe highlands, based on data collected from a baseline survey during 1986/87, came already to the conclusion that the majority of the small farmers do not possess enough land even to cover their minimum subsistence, not to talk about some necessary additional minimum capital to invest in farm inputs, in order to increase the farm income generating capacity over time (Berhanu Adenew & Harmen Storck). The study came to the conclusion that "the shortage of cultivable land is becoming more and more severe in the face of an ever inceasing population in the highland and the land resource tends to fail to support the farming community even under very poor living conditions". To reverse the tendency, the authors recommended to improve land and livestock productivity by introduction of feasible innovations and other means and to create off-farm and non-farm employment opportunities for the farm families in order to reduce their dependence on land.

5.2 Income possibilities from staple food & major cash crops

Table VI gives an overview of income possibilities from the main cereals and cash crops grown under rainfed conditions. It indicates the importance of respective production costs and main risk factors. It should be understood that with risk factors high for climatic hazards and/or pest and diseases, the overall risk taking increases considerably with high production costs. On the other hand, risks are much lower for crops cultivated under irrigation, alongside with a higher yield expectation (especially for Irish potatoes) and better producer prices.

Table VI: Comparison of Food Crop and Cash Crop Income Opportunities

Subject

Food Crops
Cash Crops

Sorghum
Maize
Coffee
Chat
Potato
Onion
yield/ ha (rainfed)
700-1'200 kg
1'000-1'300 kg
400-700 kg
700-1'000 kg
5'000-7'000 kg
3'500-8'000 kg
price/ kg
0.80 - 1.50
0.70 - 1.40
12 - 16.-
3/4 30.- 1/4 2.-
1.50
80% 3.- 20% 1.-
gross income/ha
560 - 1'800
700 - 1'820
4'800 - 11'200
16'100 - 23'000
7'500 - 10'500
9'100 - 20'800
Production costs
low
low
low-high
low
high
high
Average net income
low
low
medium
high
medium
medium-high
Risk factor: - climatic hazard
medium
medium-high
low-medium
low
high
high
- pest & diseases
low-medium
low-medium
high
low
high
medium-high

Even if less significant cereals like barley and wheat, mainly grown in the dega agro-climatic zone, might give a slightly better income per hectare than the more prevalent cereals, farmers obtain a much higher productivity in terms of cash value from cash crops as compared to cereals. While keeping a strong attachment to subsistence farming by producing as much as possible their own food crops, the ever growing land pressure forces farmers to cultivate more and more of their arable land with cash crops in order to subsist or eventually realise some growth.

The development trend over the last decade (as shown in chapter II), the actual trend and planned strategies of farmers become quite obvious and understandable by comparing the income possibilities from different crops. Likewise, it is only logical that chat has become the leading crop, not only for its high cash return and stable income, but equally for its hardiness and plasticity to grow under a wide range of soils and climatic conditions, its low production costs and little risk.

By adapting to the specific geographical situation and marketing potential, Hararghe's cash crop producing farmers could maintain or even improve their income level over time, even so price fluctuations and ever increasing tax loads moderate their potential income possibilities. The number of farm houses covered with corregated iron sheets is the most visible but probably not the most significant sign of high cash flow and a certain moderate wealth within the rural community of Hararghe as compared to areas with mere subsistence farming. Mixed farming systems and commercial farming result in higher food security than subsistence farming as long as the trading potential for cash crops is not exhausted, producer prices remain on an acceptable level and local market supplies with main staple food are assured.

5.3 Local staple food production: Actual trend & future impact

Hararghe has been known for many years as a cereal deficit production area. Increasing incidence of climatic hazards and progressive land use for cash crops amplify the negative trend. But Hararghe's markets have a sufficient supply of main staple foods, originating from neighbouring surplus producing areas like Arsi, Bale and to some extent East Shoa. Trading of cereals is a good income opportunity for small traders; larger traders being involved in the cash crop trade. Even when cereal prices double in response to high demand during stress periods, prices per quintal generally remain below 200 Birr. Farmers in all survey areas confirmed that staple food is always available on local markets, but with seasonal price fluctuations as mentioned before. While farmers generally prefer to consume their own products, some part of cereal production in Hararghe is also marketed, especially from the lowlands (e.g. Mieso is known for its sorghum production) and to some extent from highland areas.

Projecting actual trends, farmers of the midland and, to a lesser extent, highland areas will soon pass from a mixed cropping system to a cash economy with very low cereal production. Surplus production from neighbouring areas might then no longer suffice to fill the cereal gap of Hararghe and commercial importation of low priced food crops would become necessary.

VI Cash Crop Economy & its Impact on Rural Life

6.1 General

Cash crop economy is widespread in the weyna dega agroclimatic zone with most farmers having adopted a mixed farming system, using a progressively increasing part of their arable land for the production of one or several cash crops. It is followed by the dega or highland zone, where part of the farmers produce cash crops like potatoes, onion/shallots and in the lower parts chat. Subsistence farming is still predominant and cash crops are generally grown for complementary income. In the lowland zone we soon reach the limit for rainfed agriculture ( 700 mm rainfall per year) and even in areas with somewhat acceptable average rainfall, climatic hazards become more frequent than in the highlands. Areas with higher rainfall are mainly used for agriculture, with landholdings generally exceeding those of highland areas ( 1.5-2 ha), but with lower average yields and a growing importance of livestock production. Under rainfed conditions cash crop production is usually limited to groundnuts and some chat for local consumption. The lower, more arid parts of the kolla area are extensively used for livestock production with only some marginal cropping activities.

Based on a rough estimation one can assume that some 50% of the rural population of Hararghe is directly involved in the cash crop economy and an other 10% on a complementary base.

6.2 Local labour market & other complementary income possibilities

The limited number of farmers interviewed in various localities during the survey does not allow an interpolation of data. In order to give a general impression on the possible extent of actual employment generation through cash crop production, a rough estimation is given hereafter. Based on the assumption that one third to half of the main cash crop producers would employ an average of 40 person-days per year, one obtains 3.2 to 4.8 million person-days per year or the equivalent of a 1 month ration of cereals for 80,000 to 120,000 households (between 17% to nearly 25% of rural HH). While these figures have to be considered with caution, they still indicate a certain potential of income generating possibilities for vulnerable households, exceeding by far the possibilities existing in areas with mere subsistence farming.

Other job opportunities for daily labour can be found in the main rural towns, especially for chat processing, temporary jobs for loading/unloading of goods, etc. Several other income possibilities exist like the transport by donkey of farm products to the road side or local marketing centre (coffee, chat), the selling of hey for chat packing, and many other activities common to rural areas of Ethiopia like small trade, selling of wood, charcoal, grass, sisal products, etc.

The cash crop economy with its important cash flow offers a wider range of off-farm income possibilities as compared to subsistence farming areas, having a positive impact on vulnerable households by improving their capacity to cope with averse situations. But job opportunities and possibilities for self-employment created by the cash crop economy are by large insufficient to have any effect on the urgently needed decongestion of the agricultural sector. While cash crop producing farmers could positively adjust to the worsening situation of fragmented, and shrinking, landholdings, they are well aware of the fact that their coping strategy of progressively increasing cash crop production is limited in time and space. Asked about the future prospects of the young generation, most farmers responded that their children would have to find alternative employment (non-farm employment) and emphasised the importance of formal education as a means to enter alternative professions.

6.3 Rural & semi-urban infrastructure and public services

One could assume that high cash flow and important tax revenues over a long period of time would induce growth and development to the benefit of the overall population of the Hararghe zones. While the main trading tracks are generally in acceptable condition and further improvements are planned or ongoing, other basic infrastructure and public services are much like any other rural area in Ethiopia. While merchants and traders usually prefer investing their money in big towns rather than in rural areas, tax income seems to still lack the effect of decentralisation, which would enable the inhabitants to influence the nature of investments to be realised in their respective circumscription.

These facts raise some basic questions on how and when development starts and what are the preconditions and impulses needed to induce development.

V11. Conclusions & Recommendations

Progressive intensification of cash crop production is the main strategy used by farmers of the Hararghe midland and parts of the highland areas. Making optimal use of the particular geographical conditions of Hararghe, a substantial part of rural population has managed to cope successfully with the major challenges of the agricultural sector and to break the vicious circle of impoverishment. Many cash crop producers are able to overcome a bad year by their own means without external assistance.

The leading crop, allowing part of the rural population to reach not only food security, but to overcome mere subsistence and eventually induce some growth, is chat. While Hararghe farmers will always produce chat, be it only for local consumption, they are flexible in the choice of cash crops, adapting their farm management according to changing marketing situations, income possibilities and risk factors. From the agricultural, ecological and economical point of view, chat is the only agroforestry plant perfectly well adapted to the needs of farmers in this region. Its hardiness, plasticity and drought tolerance fit to the predominant agroclimatic conditions of Hararghe's midland and lower highland areas. Its low impact on neighbouring crops in combination with the widely used cultivation practise (alley cropping along contour lines on soil bunds) make it an ideal plant to realise and stabilise erosion control structures, while its regular yielding and high market value allow a stable and substantial cash return. In the context of soil and water conservation it has to be understood, that with progressively shrinking landholdings, farmers cannot afford to loose scarce arable land for conservation structures, while chat can fill the gap in a very profitable way no other plant could do.

When it comes to the appreciation of chat as a consumable commodity, opinions might spread wide apart. Trying to avoid any possible polemic, we will just list hereafter some basic considerations: Chat is a mild natural stimulant which is not subject to any chemical manipulation for strengthening of its narcotic effect. Its consumption is confined to a limited number of countries in one geographical area, where it is well embedded in century old traditions with high socio-cultural impact, not unlike alcoholic beverages in many other parts of the world. Its negative effect on health and social behaviour, when misused, is moderate and generally limited to few individuals. Educative efforts, eventually combined with adequate legislation to protect minors, should be sufficient to prevent possible abuses. Puritanical trends, like the prohibition period in the USA (1919-33) focusing on the production and marketing of alcoholic beverages, have usually shown little effect on actual consumption, while artificially criminalising its citizens.

Aside from chat, the main cash crops are coffee, Irish potatoes and onion, each of which has its specific advantages and problems. Coffee as a perennial crop needs some moderate investment for establishment and involves low to high yearly production costs, depending on cultivation methods. Main problems are connected with the high incidence of Coffee Berry Disease, which is substantially reducing annual yields. Irish potatoes and onion engage high costs for planting material and eventually chemical fertiliser, while needing adequate moisture and soil fertility. They are sensitive to diseases and production involves high risks, especially when cultivated under rainfed conditions. To successfully promote these cash crops, it is recommended to intensify efforts in the field of applied research in order to select more resistant varieties, well adapted to the specific conditions at farm sites, to promote the controlled multiplication of selected planting material at farm level (potatoes, onion) and to exhaust the still existing potential for irrigated land.

Roughly half of the rural population is either not or little involved in cash crop production. While possibilities for complementary income are rather good in normal years, job opportunities on cash crop producing farms are expected to diminish substantially during bad years, narrowing the income possibilities for vulnerable households. In spite of a generally higher food security as compared to areas with mere subsistence farming, part of the rural community remains vulnerable, having very limited means of subsistence and little access to the cash crop economy.

Hararghe's cash crop economy depends mainly on exports to countries in the immediate vicinity. The economy bears certain risks, as could be seen with the ban on livestock sales which is having a negative effect on purchasing power of clients and market prices. Also, the strategy of progressively increasing cash crop production is limited in time and space. Finally, as in other parts of the country, the urgent need for developing industrial activities in order to decongest the agricultural sector is also strongly felt in Hararghe, with farmers seeing no future for their children in agriculture.

DISCLAIMER

The designations employed and the presentation of material in this document do not imply the expression of any opinion whatsoever of the UN concerning the legal status of any country, territory, city or area of its authorities, or concerning the delimitation of its frontiers or boundaries.

21 September, 1998

UNDP-EUE Tel: 251-1-51 10 28/29

P.O. Box 5580 Fax: 251-1- 51 12 92

Addis Ababa, Ethiopia E-mail: undp-eue@telecom.net.et