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Technical Efficiency of Barley Production: The Case of Smallholde Farmers in Meket District, Amhara National Regional State, Ethiopia

Received: 14 December 2017     Accepted: 28 February 2018     Published: 19 March 2018
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Abstract

This study analyzed the technical efficiency of barley production by smallholder farmers in Meket district, Amhara National Regional State, Ethiopia. A cross sectional data from a sample of 123 barley producers during the 2016/17 production season was collected by applying two stage random sampling. To address the objective of the study, both descriptive statistics and econometric models were used to analyze the data. The trans-log functional form of the production function simultaneously with single stage estimation approach was used to estimate the production of barley output and technical inefficiency factors. The estimated stochastic production frontier model indicated that input variables such as fertilizer, human labor and oxen power were the significant variables to increase the quantity of barley output while, barley seed had a negative effect. The estimated mean levels of technical efficiency of the sample farmers were about 70.9% which revealed that, presence of a room to increase their technical efficiency level on average by 29.1% with the existing resources. The discrepancy ratio gamma indicated that 63% of the total variation from the frontier comes due to technical inefficiency while, the remaining 37% comes due to factors outside the control of farmers. Among the hypothesized factors that affect technical inefficiency; education level, extension contact and number of barley plots significantly and negatively affected technical inefficiency score. Besides, practice of crop rotation, distance of residence from the nearest main market, total expenditure and soil fertility was found to have a positive and significant effect. Hence, emphasis should be given to decrease the inefficiency level of those more inefficient farm households via experience sharing among the farmers and usage of improved or certified barley seed. Besides to this, policies and strategies of the government should be directed towards increasing farmers’ education, improve the system of input distributions and institutional facilities.

Published in Journal of Political Science and International Relations (Volume 1, Issue 2)
DOI 10.11648/j.jpsir.20180102.13
Page(s) 42-48
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), 2018. Published by Science Publishing Group

Keywords

Technical Efficiency, Stochastic Frontier, Trans-log, Meket, Barley

References
[1] Abu Tefera and Teddy, T. 2014. GAIN (Global Agricultural Information Network) Report on assessments of commodity and trade issues made by USDA staff. Addis Ababa, Ethiopia. Report no. 1301.
[2] Aigner, D. C., Lovell, K. C. A. and Schmidt, P. 1977. Formulation and estimation of stochastic frontier production functions models. Journal of Economics, 6: 21-37.
[3] Alemayehu, E. 2010. Analysis of factors affecting the technical efficiency of coffee producers in Jimma zone: a stochastic frontier analysis. MSc Thesis, Adiss Ababa, Ethiopia.
[4] Aung, N. M. 2012. Production and economic efficiency of earmers and Millers in Myanmar Rice Industry. Institute of Developing Economies, Japan External Trade Organization. V. R. F. Series No. 471.
[5] Berhane, G., Paulos, Z., Tafere, K. and Tamru, S. 2011. Food grain consumption and calorie intake patterns in Ethiopia. IFPRI Ethiopia Strategy Support Program II (ESSP II) Working Paper, 23.
[6] CSA (Central Statistics Agency). 2014. Annual Statistics Bulletin: Addis Ababa, Ethiopia.
[7] CSA (Central Statistical Agency). 2016. Agricultural sample survey report on area, production and farm management practice of belg season crops for private peasant holdings, 5.
[8] FAO (Food and Agricultural Organization). 2014. Annual report. Addis Ababa, Ethiopia.
[9] Hailemariam Leggesse. 2015. Technical efficiency in Teff production: The case of Bereh District, Oromia National Regional State. MSc Thesis, Haramaya University, Haramaya, Ethiopia.
[10] Hassen Beshir, 2011. Performance of mixed crop-livestock production system: The data envelopment approach. Livestock Research for Rural Development. 23(200).
[11] Jude, C., Benjamen C. and Patrick C. 2011. Measurement and determinants of production efficiency among smallholder sweet potato farmers in Imo state, Nigeria. European Journal of Scientific Research, 59 (3): 307-317.
[12] Musa Hasen, 2013. Economic efficiency of smallholder farmers maize production: The case of Arsi Negelle District of West Arsi Zone. MSc Thesis, Haramaya University, Haramaya, Ethiopia.
[13] Musa H., Lemma, Z. and Endrias, G. 2015. Measuring technical, economic and allocative efficiency of maize production in subsistence farming: Evidence from the Central Rift Valley of Ethiopia. Applied Studies in Agribusiness and Commerce, 9 (3): 63–74.
[14] Mustefa Bati. 2014. Economic efficiency in barely production: The case of Chole district, East Arsi Zone, Oromia National Regional State, Ethiopia. MSc Thesis, Haramaya University, Haramaya, Ethiopia.
[15] Shahidur Rashid, Gashaw T. Abate, Solomon Lemma, James Warner, Leulsegged Kasa and Nicholas Minot. 2015. The barley value chain in Ethiopia. REAP (Research for Ethiopias’ Agriculture Policy).
[16] Tan, S., Heerink, N., Kuyvenhoven, A. and Qu, F., 2010. Impact of land fragmentation on rice producers’ technical efficiency in South-East China. NJAS-Wageningen Journal of Life Sciences, 57 (2): 117-123.
[17] Wudineh Getahun and Endrias Geta. 2016. Technical efficiency of smallholder wheat farmers: The case of Welmera district, Central Oromia, Ethiopia Journal of Development and Agricultural Economics, 8 (2): 39-51.
[18] Yamane, Taro. 1967. Statistics: An Introductory Analysis, 2nd Edition, New York.
[19] Yami, M., Solomon, T., Begna, B., Fufa, F., Alemu, T. and Alemu, D. 2013. Sources of technical inefficiency of smallholder wheat farmers in selected water-logged areas of Ethiopia: A translog production function approach. Africa Jornal of Agricultural Research, 8 (29): 3930-3940.
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    Getachew Wollie. (2018). Technical Efficiency of Barley Production: The Case of Smallholde Farmers in Meket District, Amhara National Regional State, Ethiopia. Journal of Political Science and International Relations, 1(2), 42-48. https://doi.org/10.11648/j.jpsir.20180102.13

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    Getachew Wollie. Technical Efficiency of Barley Production: The Case of Smallholde Farmers in Meket District, Amhara National Regional State, Ethiopia. J. Polit. Sci. Int. Relat. 2018, 1(2), 42-48. doi: 10.11648/j.jpsir.20180102.13

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    AMA Style

    Getachew Wollie. Technical Efficiency of Barley Production: The Case of Smallholde Farmers in Meket District, Amhara National Regional State, Ethiopia. J Polit Sci Int Relat. 2018;1(2):42-48. doi: 10.11648/j.jpsir.20180102.13

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  • @article{10.11648/j.jpsir.20180102.13,
      author = {Getachew Wollie},
      title = {Technical Efficiency of Barley Production: The Case of Smallholde Farmers in Meket District, Amhara National Regional State, Ethiopia},
      journal = {Journal of Political Science and International Relations},
      volume = {1},
      number = {2},
      pages = {42-48},
      doi = {10.11648/j.jpsir.20180102.13},
      url = {https://doi.org/10.11648/j.jpsir.20180102.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jpsir.20180102.13},
      abstract = {This study analyzed the technical efficiency of barley production by smallholder farmers in Meket district, Amhara National Regional State, Ethiopia. A cross sectional data from a sample of 123 barley producers during the 2016/17 production season was collected by applying two stage random sampling. To address the objective of the study, both descriptive statistics and econometric models were used to analyze the data. The trans-log functional form of the production function simultaneously with single stage estimation approach was used to estimate the production of barley output and technical inefficiency factors. The estimated stochastic production frontier model indicated that input variables such as fertilizer, human labor and oxen power were the significant variables to increase the quantity of barley output while, barley seed had a negative effect. The estimated mean levels of technical efficiency of the sample farmers were about 70.9% which revealed that, presence of a room to increase their technical efficiency level on average by 29.1% with the existing resources. The discrepancy ratio gamma indicated that 63% of the total variation from the frontier comes due to technical inefficiency while, the remaining 37% comes due to factors outside the control of farmers. Among the hypothesized factors that affect technical inefficiency; education level, extension contact and number of barley plots significantly and negatively affected technical inefficiency score. Besides, practice of crop rotation, distance of residence from the nearest main market, total expenditure and soil fertility was found to have a positive and significant effect. Hence, emphasis should be given to decrease the inefficiency level of those more inefficient farm households via experience sharing among the farmers and usage of improved or certified barley seed. Besides to this, policies and strategies of the government should be directed towards increasing farmers’ education, improve the system of input distributions and institutional facilities.},
     year = {2018}
    }
    

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  • TY  - JOUR
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    AU  - Getachew Wollie
    Y1  - 2018/03/19
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    DO  - 10.11648/j.jpsir.20180102.13
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    JF  - Journal of Political Science and International Relations
    JO  - Journal of Political Science and International Relations
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    PB  - Science Publishing Group
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    AB  - This study analyzed the technical efficiency of barley production by smallholder farmers in Meket district, Amhara National Regional State, Ethiopia. A cross sectional data from a sample of 123 barley producers during the 2016/17 production season was collected by applying two stage random sampling. To address the objective of the study, both descriptive statistics and econometric models were used to analyze the data. The trans-log functional form of the production function simultaneously with single stage estimation approach was used to estimate the production of barley output and technical inefficiency factors. The estimated stochastic production frontier model indicated that input variables such as fertilizer, human labor and oxen power were the significant variables to increase the quantity of barley output while, barley seed had a negative effect. The estimated mean levels of technical efficiency of the sample farmers were about 70.9% which revealed that, presence of a room to increase their technical efficiency level on average by 29.1% with the existing resources. The discrepancy ratio gamma indicated that 63% of the total variation from the frontier comes due to technical inefficiency while, the remaining 37% comes due to factors outside the control of farmers. Among the hypothesized factors that affect technical inefficiency; education level, extension contact and number of barley plots significantly and negatively affected technical inefficiency score. Besides, practice of crop rotation, distance of residence from the nearest main market, total expenditure and soil fertility was found to have a positive and significant effect. Hence, emphasis should be given to decrease the inefficiency level of those more inefficient farm households via experience sharing among the farmers and usage of improved or certified barley seed. Besides to this, policies and strategies of the government should be directed towards increasing farmers’ education, improve the system of input distributions and institutional facilities.
    VL  - 1
    IS  - 2
    ER  - 

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Author Information
  • Department of Economics, Samara University, Samara, Ethiopia

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