Frontiers in Sustainable Food Systems (Jan 2025)
Technical and cost efficiency analysis of irrigated onion production insight from smallholders irrigated onion farmers in north East Amhara National Regional State, Ethiopia
Abstract
IntroductionOnions are an imperative root crop that can be grown both under irrigation and rain-fed conditions. It is considered a complementary product to tomatoes and is a globally commercial crop. Onions are a popular crop in Ethiopia for human consumption and export.MethodsFor this study, 150 smallholder producers were surveyed to collect cross-sectional data. A single-step Cobb–Douglas stochastic frontier model was used to estimate both the technical and cost efficiency of irrigated onion production.ResultsThe results from the maximum likelihood stochastic frontier model result indicated that the technical efficiency in onions was influenced by the age of the household head, slope of the land, number of extension contacts with development agents, distance from the sampled respondent’s residence to the office of the kebele agriculture office, and the number of oxen owned by the sampled households. Cost efficiency, on the other hand, was determined by the age and educational status of the household head, family size in man equivalent, and the size of irrigated land owned by the onion farmer. The study found that the average technical efficiency score for irrigated onions in the study area was 87%, while the average cost efficiency score was 84%.DiscussionThis indicates that, on average, onion farmers in the study area could potentially increase their technical efficiency by 13% and their cost efficiency by 16% with existing inputs, technologies, and current environmental conditions. Thus, the study suggests institutional interventions such as providing extension services to farmers who are far from agriculture offices, advising on fertility reclamation measures, facilitating young farmers in onion production, and assisting in asset building, particularly in acquiring oxen, to maximize technical and cost efficiency in the study area.
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