Abstract:
ABSTRACT
Post-harvest loss of the food product is significant given the lower total agricultural
productivity in Sub-Saharan Africa. Although the maize production potential in Ethiopia,
especially in West Gojjam zone, is estimated to be high, a substantial storage loss and lower
profit could happen due to the lack of using modern storage techniques. Thus, there is a high
demand to use modern storage technique like hermetic storage or Purdue Improved Crop
Storage (PICS). However, the economic costs and benefits are not well studied yet, which
prevents the widespread use of the technique. Therefore, this study ascertained to analyze the
economics of hermetic and other maize storage techniques and analyzing the determinants of
use of maize storage techniques in Bure and Womberma Woredas of Western Gojjam Zone,
Ethiopia. A multistage random sampling technique was used to select 450 household heads
(HHs) to collect a cross-sectional data through structured interview schedule in 2017. Besides,
focus group discussions and key informant interviews were held. The gross margin (GM),
partial budgeting, marginal analysis, descriptive, and inferential statistics were used to analyze
the data. Moreover, multivariate probit regression model was used to analyze the determinants
of use of maize storage techniques. Most farmers (87.8%) used traditional storage with
pesticide (TSP) while 66.7% and 19.6% used PICS and no storage or selling immediately (NS),
respectively. The PICS was the most profitable, with GM of 498.95 ETB Qt-1, the highest
difference in GM (134.67 ETB Qt-1) and highest marginal rate of return (MRR) (6.657) ratio
were observed when the storage technique changed from NS to PICS. The increment of
experiences in cooperatives and perceptions on the higher PICS price determined HHs decision
to sell the maize products immediately, whereas, age and non-food items expenditure influences
HHs decision to use TSP positively. Literate HHs, higher farming experience, earlier
cooperative membership trend, more livestock holding size and annual crop income, better
access to extension information about PICS, and positively perceiving the higher PICS storage
capacity probably increased the use of PICS; whereas the higher amount of own land holding
size and non-food items expenditure, other agricultural inputs demand and the lowest perceived
status that PICS has higher price negatively affected farmers to use PICS. Finally, wider
promotion and utilization of PICS is highly recommended to reduce storage loss and increase
profit in the study area, which can be achieved by optimizing the current initial investment cost,
diversified use of media for diffusing extension information about PICS, provision of PICS
credit, providing PICS which have larger storage capacity, and assisting farmers to establish
maize producers and marketing cooperatives so as to store large quantity in groups.
Keywords: Storage Techniques, PICS,Maize, Gross Margin, Marginal Rate of Return, Factors
Affecting, Multivariate Probit