Risks in Vegetables Production from the Perspective of Smallholder Farmers: The Case of Kombolcha Woreda, Oromia Region, Ethiopia

Abstract

In Ethiopia, vegetable crops are produced in different agro-ecological zones through commercial as well as smallholder farmers both as a source of income and food. However, due to perishable nature and biological nature of production process, vegetables productions are risky investment activities. In this context, risk perceptions play a key role in the production and investment behaviour of farmers in vegetable production decisions. However, in Kombolcha Woreda, only limited attention has been paid to understand the producers’ risk perceptions in vegetable production. Therefore, in this study, analysis of the major sources of risks in vegetable production, on the basis of farmers’ perceptions, was conducted. For the study, a two-stage sampling technique was used to select 130 sample households from six sample kebeles. Primary data collected through structured questionnaire and secondary data sources were used. A Likert scale, based on farmers’ perception, was used to rank the various sources of vegetable production risks. The mean scores results, derived based on Likert scales, indicated that production and market risks were perceived to be the most important risk sources. Hence, price support mechanisms and inputs subsidy, education and training on formal risk management mechanisms (production contract, marketing contract, etc.); drought tolerant, and pest/disease resistant vegetable varieties and cultural and biological methods, and chemicals should be used to control such risks.