International Journal of Agricultural Economics

| Peer-Reviewed |

Determinants of Technical Efficiency in Wheat Production in Ethiopia

Received: 18 August 2020    Accepted: 1 September 2020    Published: 12 October 2020
Views:       Downloads:

Share This Article

Abstract

Ethiopia is the second largest wheat producing countries in Sub-Saharan Africa and most people rely on rain fed agriculture for their livelihoods. Wheat production has increased from 2,176,603 tons in 2005 to 4,219,257 tons in 2016 with 51.6% production volume increment. However, this production cannot meet the consumption demand and obliged to import wheat because of rapid population growth. This study intended to determine the technical efficiency of smallholder wheat farmers in Ethiopia. The main objective of study was to examine the effect of demographic, socioeconomic and institutional factors on technical efficiency of small holder wheat farmers in Ethiopia. The study used household level cross sectional data collected in 2015/16 cropping season from 1611 sample farmers selected by multistage sampling technique. A stochastic production frontier and two-limit Tobit regression models were used to estimate level of technical efficiency and identify factors affecting technical efficiency respectively. The study indicated that the average technical efficiency level of wheat producing farmers was 62% implying that there was technical efficiency variation among smallholder farmers in the study area. The result implied that there is an opportunity for wheat producers to increase output at existing levels of inputs with present technologies. By shifting the average farmer to the production frontier, the average yield would increase by 0.5 tons per hectare. The two-limit Tobit regression model results showed that experience of growing wheat, family size, own farm labor, livestock size, extension contact and training had positive and significant effect on technical efficiency. However, distant wheat plot have a negative and significance effect on technical efficiency level of the farmers. This suggests attention to productivity gains arising from efficient use of existing technologies is necessary. Therefore, the study suggested, policies and strategies should be directed towards increasing productivity through improving efficiency of the production process.

DOI 10.11648/j.ijae.20200505.19
Published in International Journal of Agricultural Economics (Volume 5, Issue 5, September 2020)
Page(s) 218-224
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), 2024. Published by Science Publishing Group

Keywords

Yield Gap, Efficiency, Production, Productivity, Improved Variety, Ethiopia

References
[1] Per Pinstrup-Andersen, Rajul Pandya-Lorch, and Mark W. Rosegrant (1999): World Food Prospects: Critical Issues for the Early Twenty-First Century. Food Policy Report. International Food Policy Research Institute Washington, D. C. October 1999.
[2] Chimdessa Uma, Yadeta Bekele, Temesgen Hirko (2017): Determinants of Technical Efficiency of Wheat Production in Ethiopia: A Review, Journal of Economics and Sustainable Development, Vol. 8, No. 19, 2017.
[3] Villano, A. R., (2005). Technical efficiency of rain fed rice farms in the Philippines: A Stochastic Frontier Production Function Approach, Working Paper, School of Economics, University of New England, Armidale, NSW, 2351.
[4] CSA (Central Statistical Agency) (2015/16): Statistical Report on Area and Crop Production, (Private Peasant Holdings, Meher Season): Addis Ababa.
[5] Khan. H and Saeed. I (2011): Measurement of Technical, Allocative and Economic Efficiency of Tomato Farms in Northern Pakistan. International Conference on Management, Economics and Social Sciences. 459-468.
[6] Bealu Tukela, Endrias Geta, and Tadesse Ababu (2013): Factors Affecting Economic Efficiency In Maize Production: The Case of Boricha Woreda In Sidama Zone, Southern Ethiopia. 28 p.
[7] Amemiya, T. (1981): Qualitative Response Models: A Survey. Journal of Economic Literature 19: 1483-1536.
[8] Endrias Geta, Ayalneh Bogale, Belay Kassa and Eyasu Elias (2013): Productivity and Efficiency Analysis of Smallholder Maize Producers in Southern Ethiopia. 15 p.
[9] Greene, W. H., (2003): Econometric Analysis, 5th ed. Pearson Education Inc., Upper Saddle River, New Jersey. 1024 p.
[10] Mcdonald J. F. Moffitt R. A. (1980): The use of Tobit Analysis. The Review of Economics and Statistics. 62 (2): 318-321.
[11] Gould, B., W. Saup and R. Klemme (1989): Conservation tillage: the role of farm and operator characteristics and the perception of soil erosion. Land Economics, 65 (2): 167-182.
[12] Hunde K and Abera N. (2009): Technical Efficiency of Smallholder Farmers Wheat Production: The Case of Debra Libanos District, Oromia National Regional State, Ethiopia. J Agri Res 2019, 4 (5): 000232.
[13] Fekadu Gelaw and Bezabih Emana (2008): Analysis of Technical Efficiency of Wheat Production: A case study in Machakel Woreda, Ethiopia. Eth. J. of Agric. Econ. 7 (2).
[14] Alene D, Poonyth R, Hassan M (2000): Determinants of Adoption and Intensity of use of I proved Maize Varieties in the Central Highlands of Ethippia. A Tobit Analysis, Agrekon 39: 4.
[15] Hailu B (2008): Adoption of improved tef and wheat production technologies in crop-livestock mixed systems in Northern and Western Shewa Zones of Ethiopia. “PhD Thesis, Faculty of Natural and Agricultural science, University of Pretoria, Pretoria.
[16] Wudineh Getahun Tiruneh and Endrias Geta (2016): Technical efficiency of smallholder wheat farmers: The case of Welmera district, Central Oromia, Ethiopia. Journal of Development and Agricultural Economics. Vol. 8 (2), pp. 39-51, February, 2016.
[17] Tadele Mamo, Wudineh Getahun, Ali Chebil, Agajie Tesfaye, Tolessa Debele, Solomon Assefa and Tesfaye Solomon (2018): Technical efficiency and yield gap of smallholder wheat producers in Ethiopia: A Stochastic Frontier Analysis. African Journal of Agricultural Research. Vol. 13 (28), pp. 1407-1418, 12 July, 2018.
[18] K. M. Zahidul Islam, Stefan Bäckman and John Sumelius (2011): Technical, Economic and Allocative Efficiency of Microfinance Borrowers and Non-Borrowers: Evidence from Peasant Farming in Bangladesh. European Journal of Social Sciences-Volume 18, Number 3 (2011).
[19] Federal Democratic Republic of Ethiopia (2011): Ethiopia’s Climate-Resilient Green Economy Strategy. 14 p.
[20] Fisseha Zegeye, Bamlaku Alamirew, Degefa Tolossa, (2020): Analysis of Wheat Yield Gap and Variability in Ethiopia. International Journal of Agricultural Economics Volume 5, Issue 4, July 2020, Pages: 89-98.
[21] Ministry of Agriculture and Natural Resources (2016): Crop Variety Register. Issue No.19. June 2016. Addis Ababa, Ethiopia.
Cite This Article
  • APA Style

    Daniel Hailu. (2020). Determinants of Technical Efficiency in Wheat Production in Ethiopia. International Journal of Agricultural Economics, 5(5), 218-224. https://doi.org/10.11648/j.ijae.20200505.19

    Copy | Download

    ACS Style

    Daniel Hailu. Determinants of Technical Efficiency in Wheat Production in Ethiopia. Int. J. Agric. Econ. 2020, 5(5), 218-224. doi: 10.11648/j.ijae.20200505.19

    Copy | Download

    AMA Style

    Daniel Hailu. Determinants of Technical Efficiency in Wheat Production in Ethiopia. Int J Agric Econ. 2020;5(5):218-224. doi: 10.11648/j.ijae.20200505.19

    Copy | Download

  • @article{10.11648/j.ijae.20200505.19,
      author = {Daniel Hailu},
      title = {Determinants of Technical Efficiency in Wheat Production in Ethiopia},
      journal = {International Journal of Agricultural Economics},
      volume = {5},
      number = {5},
      pages = {218-224},
      doi = {10.11648/j.ijae.20200505.19},
      url = {https://doi.org/10.11648/j.ijae.20200505.19},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20200505.19},
      abstract = {Ethiopia is the second largest wheat producing countries in Sub-Saharan Africa and most people rely on rain fed agriculture for their livelihoods. Wheat production has increased from 2,176,603 tons in 2005 to 4,219,257 tons in 2016 with 51.6% production volume increment. However, this production cannot meet the consumption demand and obliged to import wheat because of rapid population growth. This study intended to determine the technical efficiency of smallholder wheat farmers in Ethiopia. The main objective of study was to examine the effect of demographic, socioeconomic and institutional factors on technical efficiency of small holder wheat farmers in Ethiopia. The study used household level cross sectional data collected in 2015/16 cropping season from 1611 sample farmers selected by multistage sampling technique. A stochastic production frontier and two-limit Tobit regression models were used to estimate level of technical efficiency and identify factors affecting technical efficiency respectively. The study indicated that the average technical efficiency level of wheat producing farmers was 62% implying that there was technical efficiency variation among smallholder farmers in the study area. The result implied that there is an opportunity for wheat producers to increase output at existing levels of inputs with present technologies. By shifting the average farmer to the production frontier, the average yield would increase by 0.5 tons per hectare. The two-limit Tobit regression model results showed that experience of growing wheat, family size, own farm labor, livestock size, extension contact and training had positive and significant effect on technical efficiency. However, distant wheat plot have a negative and significance effect on technical efficiency level of the farmers. This suggests attention to productivity gains arising from efficient use of existing technologies is necessary. Therefore, the study suggested, policies and strategies should be directed towards increasing productivity through improving efficiency of the production process.},
     year = {2020}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Determinants of Technical Efficiency in Wheat Production in Ethiopia
    AU  - Daniel Hailu
    Y1  - 2020/10/12
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ijae.20200505.19
    DO  - 10.11648/j.ijae.20200505.19
    T2  - International Journal of Agricultural Economics
    JF  - International Journal of Agricultural Economics
    JO  - International Journal of Agricultural Economics
    SP  - 218
    EP  - 224
    PB  - Science Publishing Group
    SN  - 2575-3843
    UR  - https://doi.org/10.11648/j.ijae.20200505.19
    AB  - Ethiopia is the second largest wheat producing countries in Sub-Saharan Africa and most people rely on rain fed agriculture for their livelihoods. Wheat production has increased from 2,176,603 tons in 2005 to 4,219,257 tons in 2016 with 51.6% production volume increment. However, this production cannot meet the consumption demand and obliged to import wheat because of rapid population growth. This study intended to determine the technical efficiency of smallholder wheat farmers in Ethiopia. The main objective of study was to examine the effect of demographic, socioeconomic and institutional factors on technical efficiency of small holder wheat farmers in Ethiopia. The study used household level cross sectional data collected in 2015/16 cropping season from 1611 sample farmers selected by multistage sampling technique. A stochastic production frontier and two-limit Tobit regression models were used to estimate level of technical efficiency and identify factors affecting technical efficiency respectively. The study indicated that the average technical efficiency level of wheat producing farmers was 62% implying that there was technical efficiency variation among smallholder farmers in the study area. The result implied that there is an opportunity for wheat producers to increase output at existing levels of inputs with present technologies. By shifting the average farmer to the production frontier, the average yield would increase by 0.5 tons per hectare. The two-limit Tobit regression model results showed that experience of growing wheat, family size, own farm labor, livestock size, extension contact and training had positive and significant effect on technical efficiency. However, distant wheat plot have a negative and significance effect on technical efficiency level of the farmers. This suggests attention to productivity gains arising from efficient use of existing technologies is necessary. Therefore, the study suggested, policies and strategies should be directed towards increasing productivity through improving efficiency of the production process.
    VL  - 5
    IS  - 5
    ER  - 

    Copy | Download

Author Information
  • Department of Agricultural Economics, Ethiopian Institute of Agricultural Research (EIAR), Addis Ababa, Ethiopia

  • Sections