Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda

Getachew Fikadu; Gemechu Mulatu

doi:doi:10.11648/j.ijae.20230805.12

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Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda

Getachew Fikadu, Gemechu Mulatu

Published in International Journal of Agricultural Economics (Volume 8, Issue 5)

Received: 20 January 2023 Accepted: 25 July 2023 Published: 9 October 2023

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Abstract

In Ethiopia, increasing population pressure and low levels of agricultural productivity have contributed a lot to the food security problems by widening the gap between demand for and supply of food. Increasing productivity in crop production, which among others could be possible by enhancing the level of technical efficiency, is an important step towards enlightening food security. This study was aimed at estimating the levels of technical efficiencies of smallholder potato producer and to identify factors affecting efficiency performances of smallholder farmers in potato production in Welmera district, Oromia National Regional State, Ethiopia. A two stages sampling technique was used to select 150 sample farmers to collect primary data pertaining of 2019/20 production year. Both primary and secondary data sources were used for this study. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate technical efficiency levels, whereas a two-limit Tobit model was employed to identify factors affecting efficiency levels of the sampled farmers. The stochastic production frontier model indicated that input variables such as land, mineral fertilizers and seed were the significant inputs to increase the quantity of potato output. The estimated mean values of technical efficiency were 73.7%, which indicate the presence of inefficiency in potato production in the study area. A two-limit Tobit model result indicated that technical efficiency positively and significantly affected by age, education, farming experience, TLU, seeding/hoeing frequency, extension contact, frequency of agronomic practice training, access to cooperative, loan, access to work party/Debo, but negatively affected by land fragmentation. In general, the result indicated that there is a room to increase technical efficiency and thereby to increase productivity of potato producers in the study area.

Published in	International Journal of Agricultural Economics (Volume 8, Issue 5)
DOI	10.11648/j.ijae.20230805.12
Page(s)	182-196
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Cobb-Douglas, Technical Efficiency, Ethiopia, Smallholder, Stochastic Frontier, Ethiopia

References

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[18]	Beneberu Teferra, Belaineh Legesse, Jema Haji Mohammed, Girma Tesfahun (2018) Farm Level Efficiency of Crop Production in the Central Highlands of Ethiopia, American Journal of Rural Development, 2018, Vol. 6, No. 2, 49-58Available online at http://pubs.sciepub.com/ajrd/6/2/4
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Getachew Fikadu, Gemechu Mulatu. (2023). Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda. International Journal of Agricultural Economics, 8(5), 182-196. https://doi.org/10.11648/j.ijae.20230805.12

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ACS Style

Getachew Fikadu; Gemechu Mulatu. Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda. Int. J. Agric. Econ. 2023, 8(5), 182-196. doi: 10.11648/j.ijae.20230805.12

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AMA Style

Getachew Fikadu, Gemechu Mulatu. Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda. Int J Agric Econ. 2023;8(5):182-196. doi: 10.11648/j.ijae.20230805.12

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@article{10.11648/j.ijae.20230805.12,
  author = {Getachew Fikadu and Gemechu Mulatu},
  title = {Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda},
  journal = {International Journal of Agricultural Economics},
  volume = {8},
  number = {5},
  pages = {182-196},
  doi = {10.11648/j.ijae.20230805.12},
  url = {https://doi.org/10.11648/j.ijae.20230805.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20230805.12},
  abstract = {In Ethiopia, increasing population pressure and low levels of agricultural productivity have contributed a lot to the food security problems by widening the gap between demand for and supply of food. Increasing productivity in crop production, which among others could be possible by enhancing the level of technical efficiency, is an important step towards enlightening food security. This study was aimed at estimating the levels of technical efficiencies of smallholder potato producer and to identify factors affecting efficiency performances of smallholder farmers in potato production in Welmera district, Oromia National Regional State, Ethiopia. A two stages sampling technique was used to select 150 sample farmers to collect primary data pertaining of 2019/20 production year. Both primary and secondary data sources were used for this study. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate technical efficiency levels, whereas a two-limit Tobit model was employed to identify factors affecting efficiency levels of the sampled farmers. The stochastic production frontier model indicated that input variables such as land, mineral fertilizers and seed were the significant inputs to increase the quantity of potato output. The estimated mean values of technical efficiency were 73.7%, which indicate the presence of inefficiency in potato production in the study area. A two-limit Tobit model result indicated that technical efficiency positively and significantly affected by age, education, farming experience, TLU, seeding/hoeing frequency, extension contact, frequency of agronomic practice training, access to cooperative, loan, access to work party/Debo, but negatively affected by land fragmentation. In general, the result indicated that there is a room to increase technical efficiency and thereby to increase productivity of potato producers in the study area.},
 year = {2023}
}

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TY  - JOUR
T1  - Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda
AU  - Getachew Fikadu
AU  - Gemechu Mulatu
Y1  - 2023/10/09
PY  - 2023
N1  - https://doi.org/10.11648/j.ijae.20230805.12
DO  - 10.11648/j.ijae.20230805.12
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 182
EP  - 196
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20230805.12
AB  - In Ethiopia, increasing population pressure and low levels of agricultural productivity have contributed a lot to the food security problems by widening the gap between demand for and supply of food. Increasing productivity in crop production, which among others could be possible by enhancing the level of technical efficiency, is an important step towards enlightening food security. This study was aimed at estimating the levels of technical efficiencies of smallholder potato producer and to identify factors affecting efficiency performances of smallholder farmers in potato production in Welmera district, Oromia National Regional State, Ethiopia. A two stages sampling technique was used to select 150 sample farmers to collect primary data pertaining of 2019/20 production year. Both primary and secondary data sources were used for this study. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate technical efficiency levels, whereas a two-limit Tobit model was employed to identify factors affecting efficiency levels of the sampled farmers. The stochastic production frontier model indicated that input variables such as land, mineral fertilizers and seed were the significant inputs to increase the quantity of potato output. The estimated mean values of technical efficiency were 73.7%, which indicate the presence of inefficiency in potato production in the study area. A two-limit Tobit model result indicated that technical efficiency positively and significantly affected by age, education, farming experience, TLU, seeding/hoeing frequency, extension contact, frequency of agronomic practice training, access to cooperative, loan, access to work party/Debo, but negatively affected by land fragmentation. In general, the result indicated that there is a room to increase technical efficiency and thereby to increase productivity of potato producers in the study area.
VL  - 8
IS  - 5
ER  -

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Author Information

Getachew Fikadu

College of Business and Economics, Madda Walabu University, Robe, Ethiopia
Gemechu Mulatu

College of Business and Economics, Wollega University, Nekemte, Ethiopia

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Getachew Fikadu, Gemechu Mulatu. (2023). Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda. International Journal of Agricultural Economics, 8(5), 182-196. https://doi.org/10.11648/j.ijae.20230805.12

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ACS Style

Getachew Fikadu; Gemechu Mulatu. Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda. Int. J. Agric. Econ. 2023, 8(5), 182-196. doi: 10.11648/j.ijae.20230805.12

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AMA Style

Getachew Fikadu, Gemechu Mulatu. Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda. Int J Agric Econ. 2023;8(5):182-196. doi: 10.11648/j.ijae.20230805.12

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@article{10.11648/j.ijae.20230805.12,
  author = {Getachew Fikadu and Gemechu Mulatu},
  title = {Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda},
  journal = {International Journal of Agricultural Economics},
  volume = {8},
  number = {5},
  pages = {182-196},
  doi = {10.11648/j.ijae.20230805.12},
  url = {https://doi.org/10.11648/j.ijae.20230805.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20230805.12},
  abstract = {In Ethiopia, increasing population pressure and low levels of agricultural productivity have contributed a lot to the food security problems by widening the gap between demand for and supply of food. Increasing productivity in crop production, which among others could be possible by enhancing the level of technical efficiency, is an important step towards enlightening food security. This study was aimed at estimating the levels of technical efficiencies of smallholder potato producer and to identify factors affecting efficiency performances of smallholder farmers in potato production in Welmera district, Oromia National Regional State, Ethiopia. A two stages sampling technique was used to select 150 sample farmers to collect primary data pertaining of 2019/20 production year. Both primary and secondary data sources were used for this study. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate technical efficiency levels, whereas a two-limit Tobit model was employed to identify factors affecting efficiency levels of the sampled farmers. The stochastic production frontier model indicated that input variables such as land, mineral fertilizers and seed were the significant inputs to increase the quantity of potato output. The estimated mean values of technical efficiency were 73.7%, which indicate the presence of inefficiency in potato production in the study area. A two-limit Tobit model result indicated that technical efficiency positively and significantly affected by age, education, farming experience, TLU, seeding/hoeing frequency, extension contact, frequency of agronomic practice training, access to cooperative, loan, access to work party/Debo, but negatively affected by land fragmentation. In general, the result indicated that there is a room to increase technical efficiency and thereby to increase productivity of potato producers in the study area.},
 year = {2023}
}

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TY  - JOUR
T1  - Analysis of Technical Efficiency of Potato Production: The Case of Smallholder Farmers in Welmera Woreda
AU  - Getachew Fikadu
AU  - Gemechu Mulatu
Y1  - 2023/10/09
PY  - 2023
N1  - https://doi.org/10.11648/j.ijae.20230805.12
DO  - 10.11648/j.ijae.20230805.12
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 182
EP  - 196
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20230805.12
AB  - In Ethiopia, increasing population pressure and low levels of agricultural productivity have contributed a lot to the food security problems by widening the gap between demand for and supply of food. Increasing productivity in crop production, which among others could be possible by enhancing the level of technical efficiency, is an important step towards enlightening food security. This study was aimed at estimating the levels of technical efficiencies of smallholder potato producer and to identify factors affecting efficiency performances of smallholder farmers in potato production in Welmera district, Oromia National Regional State, Ethiopia. A two stages sampling technique was used to select 150 sample farmers to collect primary data pertaining of 2019/20 production year. Both primary and secondary data sources were used for this study. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate technical efficiency levels, whereas a two-limit Tobit model was employed to identify factors affecting efficiency levels of the sampled farmers. The stochastic production frontier model indicated that input variables such as land, mineral fertilizers and seed were the significant inputs to increase the quantity of potato output. The estimated mean values of technical efficiency were 73.7%, which indicate the presence of inefficiency in potato production in the study area. A two-limit Tobit model result indicated that technical efficiency positively and significantly affected by age, education, farming experience, TLU, seeding/hoeing frequency, extension contact, frequency of agronomic practice training, access to cooperative, loan, access to work party/Debo, but negatively affected by land fragmentation. In general, the result indicated that there is a room to increase technical efficiency and thereby to increase productivity of potato producers in the study area.
VL  - 8
IS  - 5
ER  -

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