Diversification of Livestock-Keeping Smallholders in Mountainous Rural Regions of Azerbaijan and Georgia

Regina Neudert, Naiba Allahverdiyeva, Niyaz Mammadov, Alexandre Didebulidze and Volker Beckmann
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Regina Neudert: Faculty of Law and Economics and Institute of Botany and Landscape Ecology, Greifswald University, 17489 Greifswald, Germany
Naiba Allahverdiyeva: Department of Farm Management, University of Kassel, 37213 Witzenhausen, Germany
Niyaz Mammadov: Department of Finance and Economic Theory, Azerbaijan State Agricultural University, 2000 Ganja, Azerbaijan
Alexandre Didebulidze: Faculty of Agricultural and Natural Sciences, Agricultural University of Georgia, 0159 Tbilisi, Georgia
Volker Beckmann: Faculty of Law and Economics and Institute of Botany and Landscape Ecology, Greifswald University, 17489 Greifswald, Germany

Land, 2020, vol. 9, issue 8, 1-25

Abstract: Diversified livelihoods combining farming, livestock keeping and non-farm income are characteristic of many rural households worldwide. For the Central Asian and Caucasian region, livestock keeping is especially important in terms of land use and socio-cultural heritage. We contribute to the literature with data from the under-researched Caucasus region and investigate: (i) the extent of diversification in smallholder households; (ii) the role of livestock keeping in diversification; (iii) the influence of household-specific and location-specific variables and diversification on household income. Based on a dataset of 303 households, we calculate contribution margins for the main agricultural activities, household income, and diversification indices and analyze the influence of diversification, asset and location variables on household income with a regression model. Household income is generally diversified and a combination of four income sources (crops, livestock, poultry/bees and social benefits) was the most frequent. The econometric analysis shows that higher household incomes are positively correlated with higher household land and livestock assets, the presence of non-farm work and social benefit income sources and with an increasing specialization as measured by the diversification index. For enhancing rural household incomes and slowing down rural-urban migration, the development of non-farm job opportunities is recommended.

Keywords: household income; smallholder; Caucasus; rural regions; diversification; agriculture; livestock keeping; arable farming; socio-economic analyses; contribution margin (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:9:y:2020:i:8:p:267-:d:397038

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