Supply response, local reality and livelihood sustainability: the policy dilemma of khat (Catha edulis) production in eastern Ethiopia

Abstract

The cultivation of khat as a high value crop is rapidly expanding in the East Hararghe Zone of Ethiopia. Khat income currently supports the livelihood of millions and khat export generates a substantial foreign exchange earning. This article provides empirical evidence about the factors driving the process from the perspective of sustainable livelihood. The analysis is based on a set of data which was generated through qualitative fieldwork and a household survey. The analysis shows that the increasing shift by the farmers to khat production as a cash crop has primarily been triggered by market incentives. However, the shift reflects not only the price signal, but also that it is a response to context-specific factors such as demography, agro-climate and topography. The production of khat as a cash crop has positive income, food security and poverty effects at household level. Yet, khat is not a panacea; it is susceptible to frost damage, its market price varies widely over seasons across the year, and khat cultivation limits flexibility in resource use. Perhaps the most worrying is the status of the crop as a controlled substance in some countries against its dramatic expansion. The policy of hastily ‘criminalizing’ khat production and trade can have dire consequences on the livelihood of the poor and the national economy. A long-term development strategy is required to encourage and support khat-dependent farm households and others to gradually reduce their reliance on khat through diversification into other farm and non-farm activities.