Production improvement through the use of improved technologies and increasing efficiency of inputs in cereal production in general and wheat production in particular might be an important alternative to settle food security problem in Ethiopia. Wheat is the first cash crop produced in Angecha District, kembata Tambaro zone, with a total area covered of 4567.5ha. But, the efficiency of producers that they could not use available resources on hand was taken as a great attention.
So this study was aimed to analyze the levels of technical, allocative and economic efficiencies of wheat producers; and determining factors for inefficiency in farmers’ wheat production by using cross sectional data from randomly selected 123 households in 2018/19 production year.
The study used both primary and secondary data sources and stochastic production frontier approach was used to estimate the level of efficiencies. Ordinary least square estimation was used to identify factors that affect inefficiencies of sample farmers’ in study area. The regression model result indicated that input variables like land and seed were the significant variables to increase the yield of wheat output. 55.63%, 55.47% and 30.85% were the estimated mean values of technical, allocative and economic efficiencies respectively, which indicate the presence of inefficiency in wheat production in the study area.
Model result indicated that technical inefficiency positively and significantly affected by sex of the household head, and negatively affected by age, farm experience, land fragmentation, credit access and total livestock unit. Similarly, allocative inefficiency positively and significantly affected by sex and negatively by credit access and total livestock holdings. In addition, economic inefficiency negatively and significantly affected by credit access and total livestock holdings.
The policy measures implied from the results include: working further for quality seed and sustainable land management, expansion of gender sensitive and youth based strengthening of the extension services and trainings, strengthening the existing credit institutions services, and expansion of new livestock technologies in the study area.
Table of Contents
1. Introduction
1.1. Background
2. Methodology
2.1. Description of the study area
2.2. Sampling technique and sample size determination
2.3. DATA COLLECTION, TYPE AND SOURCES
2.4. METHODS OF DATA ANALYSIS
3. Results and Discussions
3.1. Descriptive statistics of variables used in production and cost functions
3.2. Socioeconomic and demographic characteristics of variables in efficiency model
3.3. Hypothesis test
3.4. Parametric stochastic production frontier of MLE
3.5. OLS estimation of different inefficiency variables
3.6. Summary of important explanatory variables in the inefficiencies
4. Conclusion and Recommendation
5. References
Research Objectives and Key Themes
This study aims to analyze the technical, allocative, and economic efficiency levels of wheat producers in the Angecha District, Ethiopia, and to identify the specific socio-economic factors that contribute to production inefficiency among smallholder farmers.
- Stochastic production frontier analysis of wheat output.
- Estimation of technical, allocative, and economic efficiency levels.
- Identification of determinants for production inefficiencies.
- Evaluation of socio-economic and demographic influences on farm performance.
- Formulation of evidence-based policy recommendations for agricultural extension and credit services.
Excerpt from the Book
2.2. Sampling technique and sample size determination
Two stages random sampling procedures was employed to draw a representative sample the District. In the first stage, two kebeles out of the 10 maximum wheat producing kebeles in the district were randomly selected. In the second stage, 123 sample farmers were selected using simple random sampling technique based on probability proportional to the size of wheat producers in each of two selected kebeles. To obtain a representative sample size, the study employed the sample size determination formula given by Yamane (1967) (Eq. 1).
n = N / 1+N(e^2) (1)
Where: n- Sample size; N- total number of wheat producing household heads in the District which account (4324); e- margin error (8%)
Summary of Chapters
1. Introduction: This chapter contextualizes the study by highlighting the importance of wheat as a staple crop in Ethiopia and the prevailing productivity challenges in the smallholder sub-sector.
2. Methodology: This section details the geographical area of the study, the statistical sampling procedures used to select 123 households, and the econometric models, specifically the stochastic production frontier, employed for analysis.
3. Results and Discussions: This chapter presents the statistical data and regression results, assessing the impact of various inputs and socio-economic variables on the efficiency of wheat production.
4. Conclusion and Recommendation: This section summarizes the findings on efficiency levels and proposes policy measures regarding land management, extension services, and credit availability to improve regional productivity.
5. References: A comprehensive list of academic sources and literature supporting the study's theoretical and empirical foundation.
Keywords
Angecha, economic efficiency, frontier, wheat production, stochastic frontier model, technical efficiency, allocative efficiency, smallholder farmers, Ethiopia, input utilization, regression analysis, production inefficiency, agricultural extension, socio-economic factors, land management.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on evaluating the economic efficiency of wheat production among smallholder farmers in the Angecha District of Ethiopia, aiming to understand how resources can be better utilized.
What are the primary areas covered in this work?
The study covers input-output analysis, the determination of efficiency levels (technical, allocative, and economic), and the impact of socio-economic factors like education, credit access, and total livestock holdings.
What is the central research question?
The primary goal is to determine the levels of efficiency in wheat production and identify the key factors that lead to household production inefficiency in the study area.
Which scientific methods are utilized?
The study employs a stochastic production frontier approach to estimate efficiency levels and Ordinary Least Square (OLS) estimation to identify factors affecting production inefficiencies.
What topics are addressed in the main body?
The main body covers the description of the study area, the research design and sampling, the presentation of descriptive and econometric statistics, and the discussion of hypothesis testing related to model functional forms.
Which keywords characterize this document?
Key terms include economic efficiency, wheat production, stochastic frontier, smallholder farmers, and efficiency determinants.
How does land fragmentation influence farmer efficiency?
The results suggest that farmers with more fragmented land are likely to be less inefficient, potentially because they focus more intensively on the production potential of each individual plot.
What policy recommendations does the author derive from the findings?
The author recommends enhancing extension services, improving access to credit institutions, promoting sustainable land management, and expanding the availability of new livestock technologies.
- Quote paper
- Alemayehu Bashe (Author), Asefa Ayele (Author), Matewos Matselo (Author), Tessema Erchafo (Author), Seyfu T/yohannes (Author), 2023, Economic efficiency in wheat production. Analysis of the case of Angecha District, Southern Ethiopia, Munich, GRIN Verlag, https://www.grin.com/document/1320287
