Economic Efficiency and Its Determinants of Smallholder Sorghum Producers: The Case of Hidabu Abote District, Ethiopia:: Science Publishing Group

Economic Efficiency and Its Determinants of Smallholder Sorghum Producers: The Case of Hidabu Abote District, Ethiopia

Gadisa Girma¹, Badassa Wolteji Chala², Diriba Idea³

¹Department of Agricultural Economics, Salale University, Fitche, Ethiopia

²Department of Economics, Ambo University, Ambo, Ethiopia

³Department of Agricultural Economics, Ambo University, Ambo, Ethiopia

Advances in Bioscience and Bioengineering, Volume 11, Issue 3, September 2023

Pages: 85-92

Received: Mar. 08, 2023

Accepted: Aug. 14, 2023

Published: Sep. 15, 2023

DOI: 10.11648/j.abb.20231103.18

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Abstract

In Ethiopia, increasing productivity and efficiency in crop production could be taken as an important step towards attaining food security. This study was aimed to measure economic efficiency and its determinants of smallholder sorghum producers in Hidabu Abote District, Ethiopia. Two stage sampling technique was used to select 153 sample farmers to collect primary data pertaining to the 2020/21 production year. Cobb-Douglas stochastic frontier and a two- limit Tobit model were used for the analysis. The result of the stochastic frontier model revealed a statistically significant positive elasticity of labour and oxen power. The estimated mean values of technical, allocative, and economic efficiency were 65.2%, 79.8%, and 51.9%, respectively. On average, there was a yield gap of 8.58 quintals/hectare due to inefficiency. A two-limit Tobit model indicates that education, soil fertility, frequency of extension contacts, sex, farm experience, and livestock owned contributed significantly and positively to efficiency, while striga weeds and distance from home to farmland had a significant and negative effect on efficiency. Therefore, due attention should be given to improve soil fertility, livestock raring, supply, striga resistance varieties, increasing the frequency of extension contact, and expanding of roads to improve the efficiency of sorghum farmers.

Keywords

Economic Efficiency, Ethiopia, Sorghum, Stochastic Frontier, Two-Limit Tobit

To cite this article

Gadisa Girma, Badassa Wolteji Chala, Diriba Idea. (2023). Economic Efficiency and Its Determinants of Smallholder Sorghum Producers: The Case of Hidabu Abote District, Ethiopia. Advances in Bioscience and Bioengineering, 11(3), 85-92. https://doi.org/10.11648/j.abb.20231103.18

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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