Abstract:
Maximization of returns and production of marketable surplus from irrigation scheme,
which are constructed with huge capital resources, are vital for transformation of the
traditional agriculture and thereby agro-industrialization. The objective of this paper is
to compare production costs and benefits of horticultural crops versus cereal crops under
irrigation in North Wollo at Golina, Gimbora and Aela irrigation schemes. Data was
collected from 112 irrigation users and group discussion with beneficiaries. The results
show that the area coverage of cereals accounts 90% and 75% during the wet and dry
season, respectively. Under the current production practice, the average yields of cereals
and vegetables are 12 and 53 in wet season and 14 and 66 in dry season in quintal per
hectare, respectively. The gross margin of horticultural crops per hectare provides more
than three folds at the current crop budget. The result indicated that the improved crop
budget with research results provide more than ten folds gross margin per hectare of
irrigated land for horticultural crops than the current situation. This result indicated that
there is wide gap between potential of irrigation and its actual utilization. The main
reasons are minimal use of improved seed varieties and modern inputs, low managerial
and technical skill of horticultural crop growers, weak and fragmented link between
public and private support services. To transform the existing subsistence production
system under irrigation urgent need to develop management of business entrepreneurship
and production methods of horticultural crop growers, utilize recommended application
rate of modern inputs, and provide coordinated and integrated support services. This
could facilitate rural innovation so that small scale rural growers can find and manage
markets, access value adding technologies, achieve improved links with other actors, and
organize effective support services.
