Productivity and efficiency heterogeneity among maize smallholder farmers in Ethiopia

Abstract

AbstractMaize is the cheapest grain in Ethiopia, which is widely consumed by rural communities and low-income urban residents. As a result, the Ethiopian government has implemented various policy initiatives to increase its productivity. However, these policy initiatives have not contributed enough to improve maize productivity. This study utilized stochastic frontier analysis to investigate and analyze factors contributing to differences in productivity and efficiency among smallholder maize farmers in Ethiopia. The findings showed that the supply of inputs and technology significantly affected maize productivity. We found that women-managed households were more efficient than their male-managed counterparts. We also offered new insights into the non-linear effect of farmers’ education on their efficiency levels. Furthermore, we documented that households would benefit from a 14.40% productivity gain and 13.90% production cost savings if operating at full efficiency level. Land fragmentation and distance from the main market are key factors that have adversely affected the efficiency of smallholder maize farmers. Hence, policies that reduce land fragmentation and enhance rural market infrastructure development will enable Maize farmers to increase their efficiency and productivity.

Keywords

• Efficiency
• land fragmentation
• productivity
• smallholder
• stochastic frontier
• two-stage