Technical efficiency of Teff producer farmers in Raya Kobo district, Amhara National Regional State, Ethiopia

Abstract

Teff is among the most widely grown cereal crop in Ethiopia and important in national food security. The study aimed to measure technical efficiency and sources of inefficiencies of teff producer farmers. Primary data was collected from 146 farmers selected by a three-stage sampling technique. A one-stage estimation approach of the stochastic frontier model was used. The stochastic frontier model result indicated that labor, oxen power, land allocated for teff, seed rate, and interaction of land and labor significantly affect output of teff. In addition, 96.5% of teff output variation from the frontier was attributed to technical inefficiency. The mean technical efficiency of farmers was 76.4% indicating that in the short-run technical efficiency could be increased by 23.6% through better use of labor, oxen power, land allocated for teff, and seed. Moreover, the result of the inefficiency model confirmed that technical inefficiency of teff production was negatively affected by early harvesting, the experience of farmers, use of the improved seed, and education level of farmers while positively affected by the participation of farmers in non/off-farm activities, distance to district market and lodging. The finding implies that strengthen awareness to use improved seed; the need to strengthen informal education, experience sharing of farmers and development of market infrastructure, non/off-farm activities should be done during off-seasons and strengthen the extension service to let farmers use the recommended crop husbandry practices.

Keywords

• stochastic frontier
• cobb-douglas production function
• teff
• raya kobo