A COST-BENEFIT ANALYSIS OF WHITE PEA BEANS PRODUCTION IN ETHIOPIA: A CASE OF LIMITED DOMESTIC DEMAND

Glenn Jenkins (), Mikhail Miklyaev and Katarzyna (Kate) Pankowska ()

No 2013-13, Development Discussion Papers from JDI Executive Programs

Abstract: The aim of this study is to evaluate the profitability of white pea beans production in the context of a pro-poor intervention. The aim of the intervention is to graduate chronically food-insecure households from poverty through an increase of their annual income by US$365. The households have a limited land holding of only 0.25 ha and are currently growing maize. The assistance is coming from a loan enabling mechanism allowing the households to benefit from a subsidized interest rate. The interest rate on the loans is set at 15 percent as compared to the approximately 48 percent free market interest rate. The study revealed that the main risk factor is the international price for white pea beans. The commodity is traditionally perceived as a “food for donkeys” has a very limited demand in the local market. Ethiopia already exports white pea beans, hence, there is a ready market for the commodity. As in case of any internationally tradable commodity, however, the market price of white pea beans will fluctuate independently of domestic market conditions.

Keywords: cost-benefit analysis; investment appraisal; stakeholder analysis; pulses; white pea beans; value chain; mono-cropping; pro-poor interventions; chronic food insecurity; poverty reduction; sustainable development; Ethiopia (search for similar items in EconPapers)
JEL-codes: D13 D31 D61 D62 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2014-01
New Economics Papers: this item is included in nep-afr and nep-agr
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