Masters Degrees (Agricultural Economics)

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Browsing Masters Degrees (Agricultural Economics) by Author "Bahta, Yonas T."

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    Analysis of trade structure and pattern of wool and mohair export of Lesotho
    (University of the Free State, 2015-01) Mokhethi, Nkhala Isdorinah; Bahta, Yonas T.; Ogundeji, Abiodun
    Lesotho has been a Southern African Custom Union (SACU) member from the inception of SACU, and most of its trade policies have been shaped at the SACU level. Lesotho’s trade related policies are mainly the responsibility of the Ministry of Trade and Industry, Co-operatives and Marketing. Lesotho is a founding member of the World Trade Organization (WTO); as such it took commitments on trade at the multi-lateral level for the first time during the Uruguay Round. Lesotho agreed to undertake very extensive commitments for the trade liberalization. The main objective of this study is to analyze trade structure and pattern of wool and mohair export commodities of Lesotho. The study set out to determine whether the trade policies has more protection on the agricultural products than needed and whether the policy provides more trade openness. The study further indicated trade performance of wool and mohair in the international markets. Most of the data collected were the secondary data. For the analysis of this study, different sources of data and methodologies have been used to achieve the objectives of this study, it includes: Revealed Comparative Advantage Index, Hirschman Index, Effective Rate of Protection, Nominal Rate of Protection and Trade Map. Findings from the Revealed Comparative Advantage Index indicated clearly that Lesotho enjoys Revealed Comparative Advantage of wool and mohair during the study period 2003 to 2012. The results also revealed that Lesotho is specializing with these agricultural commodities in the agricultural industry. The results indicated that market concentration of wool and mohair is low meaning that Lesotho is having few trade partners as indicated in the Hirschman Index theory. A country with few trade partners has low index values. All the values of wool and mohair are closed to zero. Lower concentration reduces the impact of international trade risk due to the possibility of price fluctuation of wool and mohair products. Trade Map results revealed that Lesotho’s wool and mohair are distributed to a couple of large trade partner countries which is China, South Africa and India. This indicates that there is low market concentration for Lesotho’s wool and mohair, therefore Lesotho needs to diversify the geographical destination of its trade. The study also shows that Effective Rate of Protection calculation is lower than the Nominal Rate of Protection for both wool and mohair in Lesotho. This means that the protection for input is higher than that of the output in both wool and mohair. The sub-sector is not subsidized by the government, but it is taxed by the government tariff policies.
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    A metafrontier analysis of sheep production in the N8 development corridor
    (University of the Free State, 2017-06) Nyam, Yong Sebastian; Matthews, Nicolette; Bahta, Yonas T.
    English: In South Africa, sheep enterprises play an important role as a source of livelihood for many farmers, especially smallholder farmers. The productivity of sheep farmers in South Africa is very low. The lack of analytical evidence on efficiency levels of smallholder sheep farmers in the different sheep production systems limits policy-making on optimal allocation of resources. In addition, these smallholder farmers are faced with numerous constraints regarding production, which is considered to be one of the many factors impeding their productivity and livelihood. Very little is known empirically about the constraints faced by these farmers and how they can be overcome. This study analysed the factors that influence the productivity of sheep production to enhance the livelihoods of smallholder sheep producers in the N8 development corridor and to identify and rank the constraints faced by smallholder sheep farmers along the N8 development corridor. Data for this study was collected with the use of structured questionnaires. A sample size of 217 smallholder sheep farmers comprising 157 from Thaba Nchu and 60 from Botshabelo was used. The stochastic metafrontier model was used to estimate technical efficiency and technology gaps across the different farms in the study areas. The Kendall’s coefficient of concordance was used to identify and rank the constraints faced by smallholder farmers. The empirical results of the study revealed that farmers in both Thaba Nchu and Botshabelo are technically inefficient. The empirical results show that herd size and feed cost had significant positive effects on sheep output in Thaba Nchu municipal district, indicating that these variables are vital for enhancing sheep production in Thaba Nchu. However, land size and sheep loss were found to have a significant negative effect on sheep output in Thaba Nchu. The negative effect of land size on sheep output was completely unexpected. It is assumed that these farmers have relatively small herds, and increasing land size will only add to the cost of managing the land. On the other hand, land and transport costs had significant positive effects on sheep output Botshabelo, indicating that these inputs are vital to enhancing sheep production in this district municipality. Sheep loss had the expected significant negative effect on sheep production in Botshabelo. In the pooled sample, herd size, feed cost and labour were found to have significant positive effects on sheep production in the study areas. However, land size and sheep loss were found to have a significant negative effect on sheep output in the pooled sample. The gamma value of 0.679 means that about 67.9% of the variation in sheep output in Thaba Nchu is explained by technical inefficiency, while 32.10% of the variation is due to random shocks and statistical noise. For Botshabelo, the gamma value (0.779) was relatively higher than in Thaba Nchu, indicating that the effects of inefficiency on variation of the sheep output is far larger than that of random shocks. The pooled sample had a gamma value of 0.799. This means that 79.9% of the variation in sheep production in the study areas is due to inefficiency and 11.1% is due to random shocks. The variation in sheep production for the study areas is generally due to technical inefficiency on the part of the sheep farmers. The stochastic production frontier analysis showed that the average technical efficiency of Thaba Nchu farmers was 67.3% and 65.7% for farmers in Botshabelo. This result indicates that there is 32.7% potential for Thaba Nchu farmers to expand their production by operating at full technical efficiency level, while the scope for Botshabelo to increase the level of efficiency using available farm resources and technologies is about 34.3%. The variables that influence the technical efficiency level of Thaba Nchu farmers are indigenous sheep breed, education level, veterinary services and market distance. Indigenous sheep and market distance had a significant negative effect on technical efficiency in Botshabelo while farm experience and crossbreeding method had significant positive effects on technical inefficiency. Theft, lack of capital, diseases and parasite were found to be the most severe constraints facing the sheep farmers. The average technical efficiency scores estimated relative to the metafrontier (TEm) for Thaba Nchu was 0.495 while for Botshabelo was 0.442. The results indicate further that a regional production frontier is necessary to advise farmers in each district on ways to improve the productivity and efficiency of sheep production. It can be concluded from the results of the study that farmers in the study area are producing well below the production frontier. This means that farmers have the potential to increase their productivity and efficiency in order to produce at full capacity. The policy recommendation arising from this study is that farmers should be trained on proper farm management techniques and that proper market channels should be developed for farmers to sell their products. Building new fences and improving old ones will help prevent theft and will increase sheep outputs.