Impact of Government Subsidies on Smallholder Livestock Productivity in Ethiopia

Abstract

Purpose: The aim of the study was to assess the impact of government subsidies on smallholder livestock productivity in Ethiopia.

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: Government subsidies play a crucial role in influencing smallholder livestock productivity, particularly in developing economies. Subsidies often target inputs such as feed, veterinary services, and technology adoption, aiming to lower costs and improve efficiency for farmers. In many cases, these subsidies enable smallholders to access better quality inputs that they might otherwise find unaffordable, thereby enhancing the overall health and productivity of their livestock. This support also encourages investment in modern practices and technologies, leading to improved breeding outcomes and disease management. However, challenges such as distribution inefficiencies and bureaucratic delays can sometimes limit the effectiveness of these subsidies, especially in reaching remote or marginalized farming communities. Despite these challenges, government subsidies generally contribute positively to smallholder livestock productivity by promoting sustainable practices and economic stability within rural communities.

Implications to Theory, Practice and Policy: Institutional theory, resource dependence theory and agency theory may be used to anchor future studies on assessing the impact of government subsidies on smallholder livestock productivity in Ethiopia. In the realm of practical applications, policymakers and stakeholders should prioritize implementing capacity-building programs alongside subsidy initiatives. In the policy domain, it is imperative to design targeted subsidy programs that address specific challenges within different livestock sectors and geographical regions.