Tropentag 2023, September 20 - 22, Berlin, Germany "Competing pathways for equitable food systems transformation: trade-offs and synergies."

Tomato production in Ethiopia – gross margin comparison of smallholder tomato farmers

¹Weihenstephan-Triesdorf University of Applied Sciences, HSWT International School, Germany
²Arsi University, Dept. of Agricultural Economics, Ethiopia
³Hawassa University, School of Nutrition, Food Science and Technology, Ethiopia
⁴Bahir Dar University, College of Agriculture and Environmental Sciences, Ethiopia

Abstract

Tomato is one of the most important vegetable crops in Ethiopia, both in terms of its economic and nutritional value. It is a major cash crop for smallholder farmers and contributes significantly to household income and food security.The study aims to provide insights into the economic performance of tomato smallholder farming in Ethiopia and inform policies about interventions that can support the growth of the sector. It is imperative to understand available potential resources for vegetable cultivation, and production and management practices and technologies used by farmers in the study districts. With a survey, which was done in 2022 with face-to-face interviews of 1200 selected tomato farmers in three different regions of Ethiopia (Amhara, Oromia and Sidama region), smallholder farmers‘ characteristics and farm practices, with special emphasis on the production, economic parameters, harvest and storage of tomatoes are mapped.
One important measure of the profitability of tomato production is the gross margin, which is the difference between the total revenue and the total variable costs. A gross margin is an essential tool for farmers to evaluate the profitability of their crops and make informed decisions about production and marketing. This study will compare the gross margin of tomato production and the factors that affect profitability and identify strategies for improving the gross margin of tomato farming in the three mentioned Ethiopian regions.
The key output of the research will be to bring the evidence of tomato production gross margins from three different regions, detecting the differences and examining the factors, which lead to those differences in gross margins. The potential users of this study could be policy-makers, advisory services, researchers and tomato producers themselves.

Keywords: Ethiopia, food value chain, gross margin, tomato production

Contact Address: Anis Dzankovic, Weihenstephan-Triesdorf University of Applied Sciences, HSWT International School, Markgrafenstraße 16, 91746 Weidenbach, Germany, e-mail: anis.dzankovichswt.de