Determinants of Technical Efficiency in Maize Production: The Case of Smallholderfarmers in Dhidhessa District of Illuababora Zone, Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Wondimu Tefaye

This study was conducted in Dhidhessa district of Illuababora zone during 2011 to measure the level of technical efficiency and identify its determinants in maize. A multi‐stage sampling technique was employed toselect 162 maize growing sample households. Inferential statistics and stochastic production functions were employed to achieve and interpret the result pertaining to objectives of the study. The results of the study indicated that the minimum, maximum and average yields of the maize production in the sample households were 10, 63 and 23.6 quintals per hectare, respectively. The Stochastic Production Frontier (SPF) result revealed that the area allocated to maize and chemical fertilizers appeared to be significantly influencing maize production at 1 percent probability level. The estimated gamma parameters indicated that 73% of the total variation in maize output was due to technical inefficiency. The average technical efficiency was 86% while return to scale (RTS) was 0.96 %.Based on the results, it was concluded that there existed scope for increasing maize output by 14 percent through efficient use of existing resources on the sample households. By improving the efficiency of maize production even through efficient use of existing resources of the farmers, an additional output of 2060 quintals of maize could have been produced on 7550 hectares of land allocated for maize production during the study period in the district. Thus, ample scope exists to realize higher output with existing resources and level of production technology. The socio‐economic variables that exercised important role for variations in technical efficiency were age, education, improved seed, training on maize production and labor availability in the household. Nevertheless, participation on off‐ farm income, interaction off‐ farm income and education, distance to market, and number of livestock were found to decrease efficiency significantly among farm households. Therefore, innovative institutional arrangement, education and farmers’ training accompanied with more access to fertilizer and improved seed were likely to enhance production efficiency in the study area.

Corporate Author: Getnet Alemu, Worku Gebeyehu & Demirew Getachew (Editors) & Ethiopian Economic Association (EEA)
Publisher: Ethiopian Economic Association (EEA)
ISBN/ISSN: 978-99944-54-38-9
Primary Descriptors: Maize production

Secondary Descriptor: Technical efficiency

Geographic Descriptors: Ethiopia, Illuababora
Cataloge Date: 03/16/2015
Broad Subject heading: Agriculture – maize production – Ethiopia
Call Number: 330.963 PRO 2014
Serial Key Title: Proceedings of the Eleventh International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: II
Publication date: 2014-06-02 00:00:00
Forum or Discussion date: 2013-07-17 00:00:00
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annually
Author: Wondimu Tefaye, Hassen Beshir and S.P.R.Chaurasia

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