The Microeconomics of Household Collection of Wild Coffee in Ethiopia: Some Policy Implications for in-situ Conservation of Coffea arabica Genetic Diversity Degnet Abebaw and Detlef Virchow Center for Development Research (ZEF), Univ. of Bonn, Germany

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The Microeconomics of Household Collection of
Wild Coffee in Ethiopia Some Policy Implications
for in-situ Conservation of Coffea arabica
Genetic DiversityDegnet Abebaw and Detlef
Virchow Center for Development Research (ZEF),
Univ. of Bonn, Germany
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Outline
1. Introduction 2. Background of the study 3.
Overview of the sample and hypotheses
of the study 4. Theoretical framework and
analytical model 5. Analytical results 6.
Conclusion and policy implications
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1.      Introduction 

• rich sources of genetic resources
• means of livelihood and safety nets
• crucial source of agricultural inputs (farm
• implements, seedlings, seeds)
• household furnitures (dining tables, beds,
  spoons, chairs, etc)
• carbon sequestration
• Local/regional/national climate regulation

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Challenges

• Deforestation and degradation of natural
  resources
• Population pressure
• Market developments
• Migration
• Inappropriate policies/policy failures

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• Models of conservation and development

• Fence and fine rule
• Integrated conservation and
• development

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2.      Background of the study

• Ethiopia has a rich diversity of crops
• - one among the eight Vivilovian gene
  center in the world
• Origin and center of diversity for Coffea arabica
  
• High diversity in coffee land races on peasant
  farms and wild gene pool
• Local benefits from the wild populations
• for income and
• for family consumption
• for breeding values
• Contributes about 6 to the total coffee
  production in Ethiopia

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• Some factors leading to depletion of wild coffee
  population in the Ethiopian Highlands

• rapid population growth
• resettlement in the nearby areas
• lack of favorable inter-sectoral linkages
  (agriculture with forestry)
• lack of coherent forest and agricultural policies
• lack of human resources and finance

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• Recent Developments

• Interest is growing for genetic resource
  conservation
• - from within the country (govt,
  academics, research)
• - from outside the country (donors,
  international univ.,
• research centers)
• e.g., Initiatives to conserve wild coffee genetic
  diversity has been in progress since recently
• Ethiopian Government/European Union,
• ZEF in collaboration with EARO

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• Objectives
• To identify the main features of household
  dependent on the collection of wild coffee from
  the places proposed for the conservation of
  forest coffee genetic diversity
• 2 To draw decision support inputs for
  integrating local needs and behavior with in-situ
  conservation of forest coffee genetic resources
  in Ethiopia.

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Study areas

• 1. Yayu district (Geba-Dogi)
• 10,000 ha of forest coffee
  demarcated
• 2. Gewata district (Boginda-Yeba)
• 2,764 ha

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• Yayu district

• 520 kilo meters from Addis Ababa
• Mixed farming systems (maize, sorghum, cattle and
  small ruminants)
• Coffee is a major cash crop and major source of
  livelihood followed by chat
• Perennial crops are very important

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• Land use characteristics

Total Area 1353 sq.km
Arable land percentage 853.74 (63.1)
Cultivated land 297.10 (21.96)
Pasture 129.89 (9.60)
Forest and shrub 261.13 (19.30)
Degraded 108.24 (8.0)
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2.3 Survey Design and data type

• A two-stage random sampling technique
• was employed
• 121 farm families in the region
• Primary and secondary data
• ? July 2002 to April 2003

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3. Overview of the sample and hypotheses of the
study
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Most important reasons for wild coffee extraction
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Access to wild coffee in the last 5 years
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Farmers perceptions of the stock of wild coffee
and montane rain forest in the study area
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Table 2. Hypothese and descriptive statistics
Explanatory variables Measurement Mean Std.Dev. Expected sign
AGE Age of hh head 42.88 13.63
ADUL Number of adults 3.02 1.85
SEX Sex of head, 1 if male 0.86 0.34
FMSZ Family size 5.50 2.26
RESID Redidence hist. , 1 if non-migrant 0.64 0.48
ANNC Land with annual crops 1.37 0.95 -/
PERC Land with perrenial crops 1.38 1.17 -/
ADJC Plots adjacent to forest, 1 if yes 0.39 0.49
PRISK Price risk perception 3.56 1.25
ASSET1 Value of farm equipments 63.02 57.42 -
ASSET2 Value of livestock 833.86 948.94 -
DIVER Number of crop enterprises 3.21 1.74 -
DISTW Minutes to reach the nearest market town 122.81 101.51 -/
DISFR Minutes to rearch forest edge 50.40 27.71 -
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4. Theoretical framework and empirical approach

• Conservation of Wild coffee (center for arabica
  coffee genetic diversity) provides short-term and
  long-term benefits to local people, national and
  international communities
• As elsewhere in other tropical forests, local
  people practice forest-based activities in
  general and extract NTFP (wild coffee ) from
  these forests and a sudden exclusion of these
  people will push them to further poverty and
  marginalization. Therefore, one way of
  alleviating the conflict of interst between
  conservation and current extraction needs is to
  look into the socioeconomics of participation in
  the wild coffee, NTFP (case study examples for
  NTFP elsewhere include Gunatileke and
  Chakravorty, 2003 Pattanayak and Sills, 2001)
• Farm household model
• Production ? Consumption ? Collection
• Risk and uncertainty in the coffee sector
• Expected utility maximization

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Empirical approach

• Define
• U1i sum current and expected utility
• that the ith household gets from
  wild
• coffee collection
• U0i sum of current and expected utility that
• the ith household gets from non-
• collection of wild coffee
• A rational household is assumed to participate in
  wild coffee collection as far as
• U1i -U0i gt0

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Empirical Approach (contd.)

• Ii ?Xvi
• Ci1 if Iigt0
• Ci0 if not
• Probit Regression

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Explanatory variables coefficients Marginal effects
Age -0.1706
Number of adults -0.3027 -0.1087
Sex 0.9019 0.3237
Famly size 0.1485 0.0533
Residence 0.2946
Annual crops 0.3463
Perrenial crops 0.1342
Adjacent plot 0.5694 0.2044
Perception of price risk -0.0003
Value of farm equipments -0.0002
Value of livestock Crop diversification 0.1E-4 -0.1016
Distance from Mkt. town -0.0017 -0.0006
Distance from forest edge -0.0098 -0035
Intercept -0.4912
Log likelihood function -79.86
Chi-squared 34.19
Correct ly predicted sample cases 74.38
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6. Conclusions and Policy implications

• The proposed wild coffee conservation area is an
  important source of income and employment to the
  local people
• Complete prohibition of picking wild coffee from
  such areas will harm a significant portion of the
  society
• Use pressure could be minimized by providing
  compensations and incentives while at the same
  time working through proper settlement/resettlemnt
  , family planning and crop
  diversification .............

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• Thank you!