6th International Young Scientist Congress (IYSC-2020) will be Postponed to 8th and 9th May 2021 Due to COVID-19. 10th International Science Congress (ISC-2020).  International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

Economic efficiency in maize production in Ilu Ababor zone, Ethiopia

Author Affiliations

  • 1Agricultural Economics, Bedele college of Agriculture and Forestry, Mettu University, Ethiopia
  • 2Animal Science, Bedele college of Agriculture and Forestry, Mettu University, Ethiopia
  • 3Dept. of Biochemistry, College of Health Sciences, Mettu University, Ethiopia

Res. J. Agriculture & Forestry Sci., Volume 5, Issue (12), Pages 1-8, December,8 (2017)

Abstract

The agriculture is the backbone of Ethiopian economy, but its performance is unsatisfactory and food production stood at behind the population growth. Improving productivity through introduction of modern technologies and/or improving the efficiency of inputs will be an important alternative to fill the gap between demand and supply. However, as the potential to increase production by obtaining new technologies became more and more limited due to shortage of resource, the efficiency of the farmer that they cannot use the available resources has received the greatest attention. Maize is a leading crop in production and contributes a greatest share in the Ethiopian economy, increasing its productivity and efficiency of inputs in its production could be considered as an important base in bringing food security. Therefore, the current study is aimed at analysing the economic efficiency in maize production in Ilu Ababor Zone of Oromo Regional State using cross sectional data collected from randomly selected 240 sample households during 2014/15 production season. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate the efficiencies levels, whereas Tobit model is used to identify determinants that affect efficiency levels of the sample farmers. The estimated results showed that the mean technical, allocative and economic efficiencies were 81.78%, 37.45% and 30.62% respectively. It indicated that there was significant inefficiency in maize production in the study areas. Among 13 explanatory variables hypothesised to affect the level of efficiencies, education level of the sample household was the most important factor that found to be statistically significant to affect the level of technical, allocative and economic efficiency all together. Whereas, land fragmentation and soil fertility were the major factors that affect the level of technical efficiency. Besides, land fragmentation, livestock ownership and frequency of extension contact were important factors that affect allocative efficiency of farmers in the study area. The results also further revealed that extension contact was the most important factor that found to be statistically significant to affect economic efficiency. However, the sign of the coefficients for extension contact in allocative and economic efficiencies was not as expected. The result showed that in study area, there is an opportunity to increase the economic efficiency in maize production. Hence, in order to increase the economic efficiency level in maize production, all concerned bodies and stakeholders should give due attention in determining coping up mechanism to significant determinants.

References

  1. CSA (Central Statistical Agency) (2014)., Statistical Report on population projected figures for the year 2014, Addis Ababa, Ethiopia.,
  2. WB (World Bank) (2011)., Maize Revolutions in Sub-Saharan Africa: Policy Research Working Paper., Agriculture and Rural Development Team, New York.
  3. Geda M.B. (2014)., Economic Efficiency in Barely Production: The Case of Chole District, East Arsi Zone, Oromia National Regional State, Ethiopia (Doctoral dissertation, Haramaya University).,
  4. Haji J. (2007)., Production efficiency of smallholders, Journal of African Economies, 16(1), 1-27.
  5. Sharma K.R., Leung P. and Zaleski H.M. (1999)., Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches., Agricultural economics, 20(1), 23-35.
  6. Coelli T.J. (1995)., Recent Development in Frontier Modelling and Efficiency Measurement., Australian Journal of Agricultural Economics, 39(3), 219-245.
  7. Haileselassie Amare (2005)., Analysis of Technical Efficiency in Sorghum Production: The Case of Smallholder Farmers in Raya-Azebo District, Southern Tigray, Ethiopia., M.Sc. Thesis Presented to the School of Graduate Studies of Alemaya University.
  8. Gujarati D.N. (1995)., Basic Econometrics., Third edition, Mc Graw Hill, Inc. New York.
  9. Abdul W. (2003)., Technical, Allocative and Economic Efficiency of Farm in Bangladesh: A Stochastic and DEA Approach., Journal of Developing Areas, 37(1), 109-126.
  10. Ayodele A. and Owombo P. (2012)., Economic Efficiency of Land Improvement Techniques among Cassava Farmers in Kogi State, Nigeria., Online Journal of Social Sciences Research, 1(5), 154-159.
  11. Himayatullah K. and Imranullah S. (2011)., Measurement of Technical, Allocative and Economic Efficiency of Tomato Farms in Northern Pakistan., Paper Presented at International Conference on Management, Economics and Social Sciences (ICMESS
  12. Fikadu Gelaw (2004)., Analysis of Technical Efficiency of Wheat Production in Machakel District, Ethiopia., M.Sc. Thesis presented to the School of Graduate Studies of Alemaya University.
  13. Kopp R.J. and Smith V.K. (1980)., Frontier Production Function Estimates for Steam Electric Generation. A Comparative Analysis., Southern Economic Journal, 46(4), 1049-1059.
  14. Mbanasor J. and Kalu K.C. (2008)., Economic Efficiency of Commercial Vegetable Production System in Akwa Ibom state, Nigeria., Journal of Tropical and Subtropical Agroecosystems, 8(3), 313-318.
  15. Alemayehu Ethiopia (2010)., Analysis of Factors Affecting the Technical Efficiency of Coffee Producers in Jimma Zone: A Stochastic Frontier Analysis., M.Sc. Thesis Presented to the School of Graduate Studies of Addis Ababa University.
  16. Solomon B. (2012)., Economic efficiency of wheat seed production: the case of smallholders in Womberma Woreda of West Gojjam Zone., An M.Sc. thesis presented to the School of Graduate Studies of Haramaya University.