Lower Output Prices Research Articles

Economics of Inter-Cropping: A Case Study of Onion and Tomato at District Muzaffargarh, Punjab, Pakistan

The current research is being conducted in Muzaffargarh district of Punjab, Pakistan to investigate the profitability and land equivalent ratio of intercropping onion and tomato. An economic analysis of intercropping in the Muzaffargarh district can inform farmers about the profitability and sustainability of this practice, aiding their decision-making between intercropping and monocropping. The study utilized a simple random sampling technique to select 45 vegetable growers out of 60, from two major vegetable-growing villages; Hajiwah and Beli Janubi. Descriptive analysis, including frequency distribution, mean, and percentages, was used to analyze the data. The results of the study showed that intercropping had a significantly higher yield (17897 kg/acre) than sole cropping of onions (6075 kg/acre) and tomatoes (16050 kg/acre). Intercropping also had a higher benefit-cost ratio of 1.59, compared to onion sole cropping (1.37) and tomato sole cropping (1.48). The land equivalent ratio was 1.31, which indicated that intercropping was more efficient in terms of land use than sole cropping. The study also revealed that intercropping onions and tomatoes provided additional income to farmers and helped maximize land use. However, farmers encountered challenges such as high seed costs, diseases, low output prices, and high transportation costs. In conclusion, the study suggested that intercropping onion and tomato is a viable agronomic strategy in the Muzaffargarh district, as it improves land-use efficiency and maximizes returns. The study showed that intercropping complemented each other and contributed to increasing yield per unit area and improving nutritional properties.

Assessment of Soybean Value Chain in North-Western Ethiopia

Soybean is one of the industrial crops that have been given high emphasis on GTP II to enhance its production and productivity through improved soybean varieties development and/or adaptation with different management and agronomic practices. Although Soybean has plenty importance to enhance soil fertility, source of nutrient to human and animals, main source of income to smallholder farmers and traders at household level as well as main source of income and foreign currency to Ethiopian economy as whole, smallholder farmers complain about its lowest output price relative to its production cost, other pulses and oil crops prices. This is due to one kilogram of soybean price could not cover the cost of one kilogram of faba bean, chicken pea, grass pea and other beans that purchased for “wet” purpose by selling soybean outputs. This research investigated the major opportunity and challenges of soybean production and marketing along value chain actors using focus group discussion, key informant interview and desk review. Storable ability, required less organic fertilizer, used as input for oil and feed industries and ongoing to enter ECX among major opportunity whereas low output price, poor linkage along value chain actors, lack of certified seed multiplier, limited usage of newly released improved soybean varieties were among major challenges of soybean sector. Therefore to stimulate the soybean sector GO and NGO should be focused on the strong linkage between soybean producers and oil and feed industries, soybean marketing agents and soybean seed multipliers with price ceiling. Keywords: Soybean, Production, Marketing Focus group and Key informant Interview DOI: 10.7176/RJFA/14-9-02 Publication date: May 31 st 2023

Soybean Production and Marketing in North-Western Ethiopia: In the Case of Jawi Distrcit Amhara Regional State

Soybean is one of the industrial crops that have been given high emphasis on GTP II to enhance its production and productivity through improved soybean varieties development and/or adaptation with different management and agronomic practices. Although Soybean has plenty importance to enhance soil fertility, source of nutrient to human and animals, main source of income to smallholder farmers and traders at household level as well as main source of income and foreign currency to Ethiopian economy as whole, smallholder farmers complain about its lowest output price relative to its production cost, other pulses and oil crops prices. This is due to one kilogram of soybean price could not cover the cost of one kilogram of faba bean, chicken pea, grass pea and other beans that purchased for “wet” purpose by selling soybean outputs. This research investigated the major opportunity and challenges of soybean production and marketing along value chain actors using focus group discussion, key informant interview and desk review. Storable ability, required less organic fertilizer, used as input for oil and feed industries and ongoing to enter ECX among major opportunity whereas low output price, poor linkage along value chain actors, lack of certified seed multiplier, limited usage of newly released improved soybean varieties were among major challenges of soybean sector. Therefore to stimulate the soybean sector GO and NGO should be focused on the strong linkage between soybean producers and oil and feed industries, soybean marketing agents and soybean seed multipliers with price ceiling. Keywords: Soybean, Production, Marketing Focus group and Key informant Interview DOI: 10.7176/JMCR/89-01 Publication date: April 30 th 2023

Determinants of Income Diversification Strategies among Smallholder Wheat Farmers in Jigawa State, Nigeria

The study assessed the determinants of income diversification strategies among smallholder wheat farmers in Jigawa State. Primary data were collected from 255 smallholder wheat farmers in the study area selected using multi stage sampling procedure. The collected data were analysed using Logit regression, Simpson Diversification Index (SDI) and two stage least square regression analyses. The result revealed that non-farm income and number of income sources had significant positive relationship with income diversification. The two stage least square estimation with respect to Herfindahl Diversification Index (HDI) showed that age and years of education had positive significant relationship. The two stage least square estimation with respect to number of income share revealed that the number of income sources, age, farm size, frequency of extension contacts and years of education had significant positive relationship with per capita income. The major constraints to wheat production were limited production inputs (seed), pest and disease, low output price, lack of credit and timely preparation. Similarly, the effect of income diversification with reference to off farm income share showed that off farm income share, age and years of education had positive significant relationship. The study concluded that off farm income share and number of income sources were the most important determinants of income diversification and the major challenge to wheat production were limited access to right inputs, pest and diseases and low output prices. Thus, the study recommended that improving performance of determinants of diversification and linking farmers to better production and output markets as well as enlightening the farmers about pests and diseases control measures will improve the wellbeing of the farmers.

Mature offshore oil field development: Solving a real options problem using stochastic dual dynamic integer programming

Oil and gas companies are facing low output prices and are forced to focus on the development of mature fields. Relevant investment decisions for operators include lifetime-enhancing activities, such as drilling new wells or permanent shutdown. We study the problem of optimal timing of investments in mature oil and gas fields in the presence of price uncertainty, which is an example of a complex real options problem consisting of a portfolio of interdependent options. We formulate a multistage stochastic integer programming model that incorporates a detailed representation of the uncertain oil price, and demonstrate how such a complex real options problem can be efficiently solved using the Stochastic Dual Dynamic Integer Programming algorithm. The paper presents a numerical example based on realistic data and discusses our computational results. We find that only a small number of Markov states are required to represent the uncertain price process, while obtaining convergence of the lower and upper bounds of the objective function. The value of stochastic solution of 11% is considerable in this example. It is concluded that the shutdown decision tends to be postponed as a result of high decommissioning costs, high discount rates, high price uncertainty and low operational expenditures, while it generally is accelerated if the decommissioning costs increase over time.

Williamson, Pigou and Demsetz on Social Media

Monopolies traditionally increase prices by reducing output, creating a social deadweight loss. Social media networks have found a way to gain market power and lessen competition in the markets in which they dominate. However, their market power manifests itself in ways that are different – indeed, on their face, they mirror-image – those of a traditional monopoly. Their output is virtually unlimited, access is made available to all, and their services are offered at zero-price. Although social media platforms require no monetary payment, users face a “hidden cost” for the services they receive – the time and attention taken by the advertisements. In turn, social media companies sell users’ attention for a profit to advertisement agencies. Recasting some well-known ideas put forth by Williamson (1968), Pigou (1920) and Demsetz (1968), this paper examines the challenges in the regulation of the so-called “attention economy,” and considers how existing antitrust instruments (designed to regulate monopolistic markets, with low output and high prices) can be applied to address the problems posed by e-monopolies and social media networks (with unlimited output and “zero price”).

Small Farm Households’ Vulnerabilities in South Cotabato, Philippines

Low-productivity subsistence agriculture still prevails in many areas in the Philippines such as in the Municipality of Lake Sebu in the Province of South Cotabato in Mindanao. This study employs primary data collection methods, namely key informant interview (KII), focus group discussion (FGD) and a household survey to assess the conditions and problems constraining farming households in Lake Sebu. The study finds that constraints on sourcing and financing of farm inputs and on marketing of produce have perpetuated the dominating role of middlemen in agricultural financing and marketing that result in high input prices and low farm-gate output prices, and hence minimal net income for the farmers. The paper concludes with specific policy and program recommendations to achieve maximum and sustainable farming benefits, namely, an expansive farm-to-market infrastructure program, an institution and business support intervention program to link farmers and markets, conditional cash farming subsidies in lieu of direct provision of farm inputs, and crop diversification promotion and support programs.

Impact of Government Policy on Tuna Commodities in Malang District, East Java

Tuna commodity turns out to be one of fishery commodities contributing to an export increase by value above the average of 18.57%. This is an opportunity for Indonesia to improve the country's economy by utilizing existing fishery resources. Thus, government policies are needed in order to support the export performance of fishery products. This research was conducted to determine the impact of government policies toward tuna fish commodities in Malang. The method used was the Policy Analysis Matrix (PAM) that aimed at knowing the impact of government policies on tuna commodities. In this study, the respondents were 30 tuna fishermen at TPI Pondokdadap. The results of analysis showed that there were subsidies, taxes, and trade restrictions in input factor. Nonetheless, in output factor, fishermen did not receive subsidies. The existence of a policy on input is very helpful for fishermen so as to reduce production costs, while in the output policy the community receives more benefits at low output prices. However, it can be seen from the DRC and PCR values that they are less than one. This means that the tuna fish commodity in Malang still has comparative and competitive advantages in competitiveness.

Regret aversion and asymmetric price distribution

This paper examines the economic asymmetries between a regret-averse firm and a risk-averse firm under price uncertainty. We show that the global and marginal effects of price uncertainty on production are both positive (negative) when regret aversion prevails if the random output price is asymmetrically distributed with positive (negative) skewness. In this case, high (low) output prices are much more likely to be seen than low (high) output prices. To minimize regret, the firm is induced to raise (lower) its output optimal level. The skewness of the price distribution as such plays a pivotal role in determining the regret-averse firm’s production decision price uncertainty.

Tobacco contract farming in Zimbabwe: power dynamics, accumulation trajectories, land use patterns and livelihoods

ABSTRACT Zimbabwe's Fast Track Land Reform Programme resulted in a massive growth of the country's tobacco sector. Some authors have labelled this, the ‘tobacco boom’. The effects of this growth are variegated across space and time. This study explores the growth of tobacco contract farming in Goromonzi and Zvimba districts and the resultant effects on land use patterns, accumulation, power dynamics and livelihood outcomes. In illuminating on contract farming, the study also pays attention to non-contract farmers. The rise in the number of contract farmers is attributed to; better extension services, improved and guaranteed access to input and output markets. At the same time, tobacco contract farming is marked by several vicissitudes. Some farmers withdrew from the contracts due to low output prices and high input costs resulting in indebtedness. Similarly, some contracting firms dropped out from the contracting arrangements. Overall, many contracted growers accumulated more than non-contract farmers.

Profitability and constraints analysis of pulses production in some selected areas of Sirajganj Districtin Bangladesh

The study was conducted in three upazilas of Sirajganj district to estimate profitability of different pulses crops (Kheshari, Lentil and Mung) production and to identify the constraints associated with production of those pulses. To achieve the objectives of the study primary data were collected from 90 farmers through well-developed questionnaire. The sample farmers were selected through purposive sampling technique. Per hectare production cost and returns were determined to analyze profitability of growing pulses from the viewpoints of individual farmers. Profitability was measured in terms of gross return, gross margin, net return and benefit cost ratio (BCR). Results of the study revealed that the highest total cost of production was found in Mung (42476 Tk.. ha-1) and the lowest in kheshari (21818 Tk.. ha-1). Estimated Gross Return of kheshari, lentil and mung was Tk. 46800, Tk. 62280 and Tk. 60250 per ha, respectively. The highest net return was found from lentil cultivation (26906 Tk. ha-1) and the lowest from mung cultivation (17774 Tk. ha-1). The highest BCR was obtained from cultivation of kheshari (2.15) followed by lentil (1.76) and mung (1.42). The results of the study indicated that among the pulses, kheshari production was more profitable. The result of the study also find out some major constraints in producing pulses those were as Lack of technical knowledge, Non availability of good quality seed, High price of input, Low output price, Labour scarcity and high cost, Lack of subsidy for inputs, Weak research and extension linkages, Non availability of suitable literature, Environmental constraints. The results of the study clearly indicated that pulses production is profitable and if government should take some appropriate measure for solving the constraints in pulses production that will enhance increase production of pulses. As a result, the increased production of pulses will contribute to fulfil the per capita plant protein requirement in many respects and the country will able to attain self-sufficiency in pulses production.

Intensification of waterlogged fallow land through growing water chestnuts in Bangladesh

The study has assessed the impact of small scale commercial water chestnut cultivation on farmers’ livelihood in the seasonal waterlogged areas of Jamalpur district in Bangladesh. Both purposive and multi-stage sampling techniques were used to select 120 water chestnut growers for the present study. Descriptive statistics and multiple regression analysis were used to analyze the data. Findings of the study revealed that on an average 67% of the total cost was involved for human labour followed by land use (14%), insecticides (7%) and seedlings (4%), respectively. The average yield of water chestnut was found to be 9.77 ton per hectare. The average profit and gross margin was estimated at BDT 63,122.35 and BDT 76,927, respectively. The production cost of water chestnut/kg was BDT 8.94 and return was BDT 15.40. It was also observed that all kinds of livelihood assets of the selected farmers increased significantly through commercial water chestnut farming. According to farmers’ assessment, lack of scientific production techniques, high infestation of insect pest especially red crab, siltation by river erosion, buyers syndicate and low output price were found the major hindrance in the study areas. Farmers cultivate water chestnut for utilizing waterlogged fallow land, it’s easy growing, and additional income and to generate year-round employment opportunity.

Review on Factors Affecting Production and Marketing of Spices in Ethiopia

Spices are produced in different agro-ecologies of Ethiopia that generate income for producers and traders involved in marketing. They are very important cash crops used for food flavor and medication purpose. Even though, their importance the sector is constrained by different factors. The objectives of this review paper are to review factors affecting production of spices, to review factors affecting marketing of spices and to review opportunities of spices production in Ethiopia. Traditional way of farming, absence of seeds and planting materials, high frequency of weeding, high input requirement, high input cost, lack of drying facility, taking long time to dry, shortage of access to credit and extension, different disease and pests, wild animal competition, poor quality of output, absence of proper post harvest handling practices and others are factors affecting production of spices in Ethiopia. Low output price, poor market access and imperfect market information, capital constraints, limited processing of spices, adulteration, mismatch between demand and spices, transportation problems, unlicensed traders, theft, low government support, lack of value addition, price volatility, weak market research and promotion, poor market infrastructure, lack of effective linkage of stakeholders, lack of capacity building, low bargaining power of producers, limited ability of producers to enter in market due to limited time, skill, and resources are some of the factors that affect spices marketing in Ethiopia. Ethiopia is suitable area for spices production due to suitable climate condition and presence of various agro-ecologies, abundant land, cheap labor and favorable policy environment. By reducing different production and marketing constraints the country can boost production and become competitor in the world spices market within a short period of time. Keywords: Spices; constraints; opportunities DOI : 10.7176/JBAH/9-6-02 Publication date :March 31 st 2019

Economics of Black gram cultivation and its impact on farmers livelihood in two selected districts of Bangladesh

The present study is an attempt to assess the existing agronomic practices of black gram cultivation, its impact on farmers livelihood and constraints of black gram production and marketing. Primary data from 85 farmers were collected during February to March 2016 through face to face interviews. Descriptive statistics and Garret ranking method were used to analyze the data. The majority of the farmers had sown seeds during the last week of September to first week of October. The average seed rate was found to be 19.36 kg per hectare which indicated that all farm households used below recommended dose of seeds (35-40 kg/ha). The average yield of black gram was found higher than the national average. The average net income was observed to be Tk. 26990 and Tk. 19845 in Sherpur and Jamalpur respectively. The average gross margin was observed to be Tk. 37629 on total variable cost basis. It was also found that average returns to labour was Tk. 1000/man-day in Sherpur and Tk. 692/man-day in Jamalpur district respectively. It was also observed that all kinds of livelihood assets of the selected farmers increased significantly through black gram farming. The results revealed that the main constraints faced by black gram grower were lack of irrigation facility, non availability of HYV seeds, low output price, labour scarcity, lack of knowledge about improved varieties with their production technology, excessive rainfall after flowering and weak research-extension farmers linkage etc. Farmers also faced some marketing related problems such as limited buyers, price instability, lack of storage facilities and high market toll. Farmers cultivated black gram because of higher yield, higher income, and easy growing.
 SAARC J. Agri., 16(2): 83-96 (2018)

Marketing Pattern and Price Spread of Green Fodder in Punjab

The study was conducted in three agro-climatic zones of Punjab state viz. Sub mountainous zone, Central zone and South Western zone for examining the marketing pattern, price spread and marketing efficiency of various marketing channels and marketing problems being faced by the fodder growers. It was observed that out of the total sample size of 120 farmers, only 20 farmers were involved in marketing of fodder. Majority of them were selling fodder occasionally, criteria of payment was daily cash basis and maximum distance covered by majority of the fodder growers for marketing of green fodder was between 5–10 kilometers. The major reason for sale of fodder was fodder production being economical followed by surplus fodder production. For the maize crop, there was only one marketing channel (Channel-I) which was not so popular channel. For sorghum crop, there were two marketing channels (Channel-II and III). For the bajra crop, there existed three channels (Channel-I, II and III) and for berseem crop, there were two marketing channels i.e. Channel-II and III. The marketing efficiency was highest in Channel-III for all the crops. The important marketing problems being faced by the fodder growers were lack of proper market followed by price fluctuations, low output prices and distant market.

Regret theory and the competitive firm revisited

This paper revisits the impact of regret aversion on the behavior of the competitive firm under price uncertainty. We show that the firm optimally produces more (less) when regret aversion prevails if the random output price is positively (negatively) skewed. In this case, high (low) output prices are much more likely to be seen than low (high) output prices. To avoid regret, the firm is induced to raise (lower) its output optimal level. The skewness of the price distribution as such plays a pivotal role in determining how regret aversion affects the firm’s production decision.

Electricity in Europe: exiting fossil fuels?

There are many options for generating electricity with low carbon emissions, and the elec- trification of heat and transport can decarbonize energy use across the economy. This places the power sector at the forefront of any move away from fossil fuels, even though fossil-fuelled generators are more dependable and flexible than nuclear reactors or intermittent renewables, and vital for the second- by-second balancing of supply and demand. Renewables tend to supplement, rather than replace, fos- sil capacity, although output from fossil-fuelled stations will fall and some will have to retire to avoid depressing wholesale power prices. At times of low demand and high renewable output prices can turn negative, but electricity storage, long-distance interconnection, and flexible demand may develop to absorb any excess generation. Simulations for Great Britain show that while coal may be eliminated from the mix within a decade, natural gas has a long-term role in stations with or without carbon cap- ture and storage, depending on its cost and the price of carbon.

Views of Hair Goat Breeders Concerning the Relationship between Nomadic Livestock and Forestry: An Example from the Turkey

The obstacles towards this pursuit not only negatively affect the views and perceptions of the forest villagers about forest resources but also, from time to time, causes Turkey, which has the appropriate environment in terms of livestock, to become one of the countries that import meat. In this study, the perception and views of hair goat breeders about forestry & livestock breeding relations and how to develop these two sectors are investigated. Within the framework of this study, a survey including 121 hair goat breeders was conducted. According to the result of the study, it is found that; (1) Hair goat breeding has undergone a regression when compared with the past. Low output prices of meat and milk, contrary to high prices of feed and other input cost and negative forestry & livestock breeding relations, are the most important reasons of this regression. (2) The highest expectation of the respondents from the forests is related to livestock breeding. Thus, limitations towards goat grazing in the forests negatively affect local views and perceptions of forests.

Factors Influencing the Use of Organic Manure by Female Vegetable Farmers in Cross River State, Nigeria

The study investigated the factors influencing the use of poultry droppings by female farmers in Anantiga vegetable site, Calabar-South Local Government area of Cross River State, Nigeria. A two stage sampling technique was used to select sixty female vegetable farmers for the study. Primary data were gathered through the use of a structured questionnaire and an oral interview schedule. Descriptive statistics and Likert scale rating techniques were used to analyze the data. The findings of the study showed that, about 75%, being the majority of the farmers were educated, 68.33% rented the farm land used for cultivation of vegetable, 95% of the farmers have never been visited by extension agent, and 88.33% of the farmers were low income farmers, earning between ₦1,000 and ₦14,999 monthly. The following factors: farmers not being aware of the potentials of using organic manure, inadequate access to organic manure materials, low output price of

Income, saving, investment, and consumption pattern of farm households in Karnaldistrict of Haryana

The findings of the study revealed that on an average, the operational holding was 3.34 ha which varies between 1.40 ha to 7.24 ha on small and large category of farms and land rent was found to be `75916 per hectare. The leased in land was higher on large farms (1.23 ha), followed by medium (0.37 ha) and small category of farms (0.06 ha). More than seventy per cent farmers highlighted that lower income and savings, lower access to institutional credit and inadequate loan, higher cost of new machinery, lower output prices of agricultural crops, higher prices of inputs, higher rate of interest, higher family consumption expenditures, higher cost of education and small size of holding hindered the capital formation on farms. Hence, there is a need to encourage the investment on farms through liberal financing at lower rate of interest and making higher public investment on agricultural infrastructure development. The investment on productive farm assets was having positively significant relationship with income earnings and size of operational holding, while, non-significant with literacy and age of the respondent.