Towards inclusive mechanization? Two-wheel tractor-based service markets in Ethiopia, Burkina Faso, and Zimbabwe
Journal of Agribusiness in Developing and Emerging Economies
ISSN: 2044-0839
Article publication date: 21 May 2024
Abstract
Purpose
African agricultural mechanization could lead to a mechanization divide, where only large farms have access to machines. Technological solutions such as scale-appropriate machines and institutional solutions like service markets offer hope for more inclusive mechanization. Two-wheel tractor-based service markets combine both technological and institutional elements, but there is limited research on their economic viability and challenges.
Design/methodology/approach
We analyze the economic viability of two-wheel tractor-based service provision based on data from service providers in Ethiopia, Burkina Faso, and Zimbabwe. We also examine the institutional framework conditions for such service providers based on qualitative interviews with these service providers and stakeholders such as machinery dealers, spare parts providers, and banks.
Findings
Two-wheel tractor-based service provision is economically highly viable, largely due to multifunctionality. Post-production services such as threshing and transportation are particularly lucrative. However, the emergence and economic sustainability of service providers can be undermined by bottlenecks such as access to finance, knowledge and skills development, access to fuel and spare parts, and infrastructure problems.
Originality/value
This is the first study on the economics of two-wheel tractor-based service provider models. Past studies have focused on large four-wheel tractors, but two-wheel tractors are different in many aspects, including regarding investment costs, repair and maintenance costs, capacity, and multifunctionality.
Keywords
Acknowledgements
We would like to thank all study participants, project partners, and funders: Thank you! In particular, we appreciate the support and contribution of the service providers in Ethiopia, Burkina Faso and Zimbabwe In Ethiopia, we would also like to thank the Ethiopian Institute of Agricultural Research (EIAR), in particular the Melkassa Agricultural Research Center and the district agricultural offices in Machakel and Tiyo. The research benefited from fundings part of various projects. We are grateful for support from the project “Scaling Out Small Mechanization in the Ethiopian Highlands” project, which is funded through the Africa-RISING project by the United States Agency for International Development of the United States Government’s Feed the Future Initiative. We are also grateful the project “Farm Power and Conservation Agriculture for Sustainable Intensification (FACASI)”, which was funded by the Australian Centre for International Agricultural Research (ACIAR). We thank the “Innovative Financing for Sustainable Mechanization in Ethiopia (IFFSMIE - Grant number: 14.0156.1-107.00/81226774/C0209.01)” project, which was funded by the German Development Cooperation (GIZ) and the project “Appropriate mechanization in the context of GICAFS (Green Innovation Centres for the Agriculture and Food Sector)” of the Global Program of GIZ of the Federal Ministry for Economic Cooperation and Development (BMZ) (Grant number: 14.0967.1-101.00/81248407/C0223). The authors also acknowledge additional support received from the Maize and Wheat CGIAR Research Programmes (CRP) during the implementation of these projects.
Citation
Yahaya, R., Daum, T., Tadesse, E., Mupangwa, W., Barro, A., Matangi, D., Misiko, M., Baudron, F., Awoke, B.G., Odjo, S., Sanogo, D., Assefa, R. and Kassa, A. (2024), "Towards inclusive mechanization? Two-wheel tractor-based service markets in Ethiopia, Burkina Faso, and Zimbabwe", Journal of Agribusiness in Developing and Emerging Economies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JADEE-04-2023-0084
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited