Technical Efficiency of Teff Production Among Smallholder Farmers: Beta Regression Approach

Birara Endalew (), Adugnaw Anteneh and Kassahun Tasie
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Birara Endalew: Bahir Dar University
Adugnaw Anteneh: Samara University
Kassahun Tasie: Bahir Dar University

The European Journal of Development Research, 2022, vol. 34, issue 2, No 20, 1076-1096

Abstract: Abstract In Ethiopia, the traditional production system is not sufficient to feed the population growing at an alarming rate. Thus, targeting the efficiency of smallholder farmers have a substantial contribution to attain the maximum possible output with the existing inputs. Accordingly, this study analyzed the technical efficiency of teff production among smallholder farmers' using the stochastic frontier model. For this purpose, a total of 384 smallholder farmers were selected using a multistage sampling technique. Face-to-face interviews, focus group discussion and key informant interviews were used to collect quantitative and qualitative data. The result shows that the number of oxen, land size allocated to teff, amount of Diammonium Phosphate (DAP), urea, and seed significantly explain teff production function. About 25.8% of smallholder teff producer farmers operate below the maximum capacity given the level of technology. Moreover, age of the household head, livestock ownership, and market distance affect smallholder farmers to produce below the maximum capacity; whereas, credit service users and large land size owners were less inefficient than their counterparts. Therefore, special priority should be given to land productivity, urea, DAP, improved seed and oxen days to improve smallholder farmers’ technical efficiency in teff production. Additionally, policymakers should design and implement policies targeting smallholder farmers' sources of technical inefficiency in teff production. Moreover, the option for enhancing production and productivity through technical efficiency improvement technologies should be targeted to minimize sources of inefficiency in teff production.

Keywords: Beta regression; Hulet Eju Enese; Technical inefficiency; Stochastic frontier; Yield gap (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1057/s41287-021-00417-w

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