In ter na tio nal Food Po licy Re search Ins ti tu te All rights re ser ved. Sec tions of this re port may be re pro du ced without the ex press per mis sion of but with ackno wledg ment to the In ter na tio nal Food Po licy Re search Ins ti tu te.

Some small-holders are able to generate reliable and substantial income flows through small-scale dairy production for the local market; for others, a set of unique transaction costs hinders participation. Cooperative selling institutions are potential catalysts for mitigating these costs, stimulating entry into the market, and promoting growth in rural communities. Trends in cooperative organization in east-African dairy are evaluated. Empirical work focuses on alternative techniques for effecting participation among a representative sample of peri-urban milk producers in the Ethiopian highlands. The variables considered are a modern production practice (cross-bred cow use), a traditional production practice (indigenous-cow use), three intellectual-capital-forming variables (experience, education, and extension), and the provision of infrastructure (as measured by time to transport milk to market). A Tobit analysis of marketable surplus generates precise estimates of non-participants' 'distances' to market and their reservation levels of the covariatesmeasures of the inputs necessary to sustain and enhance the market. Policy implications focus on the availability of cross-bred stock and the level of market infrastructure, both of which have marked effects on participation, the velocity of transactions in the local community and, inevitably, the social returns to agroindustrialization. 0 cooperative sales organizations among resource-poor dairy producers in peri-urban settings.Small-scale dairy production is an important source of cash income for subsistence farmers in the east-African highlands. Dairy products are a traditional consumption item with strong demand, and the temperate climate allows the cross-breeding of local cows with European dairy breeds to raise productivity. Particularly where infrastructure and expertise in dairy processing exist, such markets 0169-5150/00/$ -see front matter 0 2000 Elsevier Science B.V. All rights reserved PII: S O l h 9 -5 1 5 0 ( 0 0 ) 0 0 0 8 9 -X

In less favoured areas such as the highlands of Ethiopia, farmers manage risk through land allocation to crops and varieties since they cannot depend on market mechanisms to cope. They also grow traditional varieties that are genetically diverse and have potential social value. Supporting the maintenance of crop and variety diversity in such locations can address both the current needs of farmers and future needs of society, though it entails numerous policy challenges. We estimate a model of crop and variety choice in a theoretical framework of the farm household model to compare the determinants of crop and variety diversity, revealing some of these policy considerations. Farm physical features and household characteristics such as wealth and labour stocks have large and significant effects on both the diversity among and within cereal crops, varying among crops. Policies designed to encourage variety diversity in one cereal crop may have opposing effects in another crop. Trade-offs between development-related factors and diversity in this resource-poor system are not evident, however. Market-related variables and population density have ambiguous effects. Education positively influences cereal crop diversity. Growing modern varieties of maize or wheat does not detract from the richness or evenness of these cereals on household farms. 0 2004 Published by Elsevier B.V. ( S . Benin), j.pender@cgiar.org (J. Pender).' Tel.: +I 202 862 5645; fax: +I 703 426 0416.In the less-favoured areas of the world where crop production is risky and opportunities are limited for insuring against risk through working off-farm, many farm families still depend directly on the diversity of 0169-5150/$see front matter 0 2004 Published by Elsevier B.V.

This paper investigates the impacts of population growth, market access, agricultural credit and technical assistance programs, land policies, livelihood strategies and other factors on changes in land management, natural resource conditions and human welfare indicators since 1991 in the northern Ethiopian highlands, based on a survey of 198 villages. We find that population growth has contributed significantly to land degradation, poverty and food insecurity in this region. In contrast, better market access and some credit and technical assistance programs were associated with improvement (or less decline) in land quality, wealth and food security; suggesting the possibility of "winwin-win" development outcomes with appropriate interventions. Land redistribution was associated with adoption of inorganic fertilizer, but also with declining use of fallow and declining soil fertility. We find also that different land management practices are adopted where different livelihood strategies are pursued, suggesting the importance of considering livelihood strategies in technical assistance programs. Development strategies should be tailored to the different comparative advantages of different locations; no "one-size-fits-all" strategy will work everywhere.

In less favoured areas such as the highlands of Ethiopia, farmers manage risk through land allocation to crops and varieties since they cannot depend on market mechanisms to cope. They also grow traditional varieties that are genetically diverse and have potential social value. Supporting the maintenance of crop and variety diversity in such locations can address both the current needs of farmers and future needs of society, though it entails numerous policy challenges. We estimate a model of crop and variety choice in a theoretical framework of the farm household model to compare the determinants of crop and variety diversity, revealing some of these policy considerations. Farm physical features and household characteristics such as wealth and labour stocks have large and significant effects on both the diversity among and within cereal crops, varying among crops. Policies designed to encourage variety diversity in one cereal crop may have opposing effects in another crop. Trade‐offs between development‐related factors and diversity in this resource‐poor system are not evident, however. Market‐related variables and population density have ambiguous effects. Education positively influences cereal crop diversity. Growing modern varieties of maize or wheat does not detract from the richness or evenness of these cereals on household farms.