Economic Feasibility of Small-scale Onion and Tomato Production in the Central Rift Valley in Ethiopia: Evidence from Adama and Doddota Districts

Abstract

Vegetables contribute to food and nutritional security and provide employment opportunities for women and men. Onion and tomato, in Ethiopia, are major vegetables grown primarily for cash income under irrigated farming and high input agro-chemical use. The production of these crops has been expanding as more land and other agricultural inputs are allocated to them. Yet, the economic feasibility of the business in light of heavy agrochemical use, fluctuating prices, and gender participation, are points of discussion. Hence, the paper assesses the economic viability, the roles men and women play, and the benefits men and women farmers fetch from the onion and tomato production business. Primary data were collected from small-scale onion and tomato producers in the Arsi zone Doddota district and Adama district in the East Shewa zone. Results reveal that women constitute 24 percent of the household heads who participated in producing onion and tomato. Women contribute up to 36 percent of the labor participating in those crop production. Field data confirm that the business is economically feasible under varying inputs and produce prices. The profitability can be further boosted if the farmers reduce the excessively used agrochemicals by applying the recommended types and rates. The proportional variable costs of the over-used pesticides  were estimated to be 32% for onion and 36% for tomato production. Hence, reducing the chemicals used is commendable to increase economic profit while reducing the environmental risks posed by the excessive use of agrochemicals. In this aspect, hands-on training on appropriate pesticides use and handling may help producers enhance their income while curbing risks to human and animal health and environmental damage.