Does membership in seed producer cooperatives improve smallholders’ teff productivity? A comparative analysis in North Ethiopia

Abstract

Although teff (Eragrostis tef) is a very important staple food crop in Ethiopia, its production is constrained by low productivity due to poor access and adoption rate of improved seed by farmers. The government of Ethiopia envisions realizing an efficient teff value chain that enables a sustainable increase of smallholder teff productivity. As a result, the government is supporting seed producer cooperatives (SPCs) to supply improved teff seeds to farmers. The aim of this study is to compare teff productivity at household level among members and nonmembers of SPCs. To this end, a cross-sectional survey design with multi-stage sampling method was used to select 386 sample households (193 SPC members and 193 nonmembers). As membership in a cooperative is voluntary, farmers may self-select into a given SPC according to their own motivation and interest. In a bid to address the potential issue of selection bias from both observed and unobserved heterogeneities, we employ the treatment effects model (TEM), which allows for a specific correlation structure between the unobservables that affect the treatment and the unobservables that affect the potential outcomes. Results show that, on average, SPC members produce 1.406 more quintals per hectare compared with their nonmember counterparts.