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

Author(s):  
Getachew Wollie

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.

Author(s):  
Getachew Wollie

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.


2019 ◽  
Vol 27 (3) ◽  
pp. 525-535
Author(s):  
Yadeta Bekele ◽  
Guta Regasa

This study analyzed the determinants of technical efficiency of smallholder malt barley producers and estimated their technical efficiency in Tiyo district of Arsi zone, Ethiopia. Data were obtained from 162 randomly selected malt barley farmers. Descriptive statistics and the translog functional form of the production function simultaneously with single stage estimation approach were used to estimate the production of barley output and technical inefficiency factors. The study revealed that the average technical efficiency of the farmers in the production of malt barley is 71%. This reveals that there exists a possibility to increase the level of malt barley yield by 29% utilizing the existing local technical knowledge of efficient farmers. This further implies that it is possible to produce the same output by reducing current input utilization by 29%. The discrepancy ratio (γ), which estimates the relative deviation of output from the frontier level due to inefficiency, was about 61%. This implies that about 62% of the variation in malt barley production among the sample farmers was credited to technical inefficiency while, the remaining 38% comes due to factors outside the control of farmers. The maximum likelihood parameter estimates showed that malt barley yield was significantly influenced by the amount of fertilizers (DAP and UREA), number of oxen, labour, malt barley seed, herbicide usage and land allocated for malt barley. The stochastic production frontier model shows that experience, education status, number of oxen, land size, and extension contact significantly affected technical inefficiency of malt barley production. Therefore, attention should be given to improve the less efficient farmers following the practices of relatively efficient farmers in the area. On top of this, policies and strategies of the government should give due focus for the determinants of technical inefficiencies in malt barley production.


2019 ◽  
Vol 11 (4(J)) ◽  
pp. 88-101
Author(s):  
Haile Girma ◽  
Gadisa Abera Dinka ◽  
Mohammedsani Ali Gelan

This study was conducted to estimate the technical efficiency of micro and small-scale manufacturing enterprises in Selected Towns of Jimma Zone, Oromia National Regional State by using the Stochastic Frontier Approach. The analysis used Cross-sectional data which was collected from 343 Micro and small-scale manufacturing enterprises in 2018. The finding shows the mean technical efficiency of sampled Micro and Small-Scale Manufacturing Enterprises is about 54.8% and output value-added is positively affected by capital input and raw material, but negatively affected by labor input. The finding from the inefficiency model indicates that technical inefficiency of sampled Micro and Small-Scale Manufacturing Enterprises is negatively affected by the amount of finance used for initial investment expenses; lower for enterprises which received land from the government, participate only in “Ekub”, participate in both “Ekub” and “Edir”. However, seasonal change in demand for a product is found to make technical inefficiency of enterprises higher. Thus, by improving Micro and Small-Scale Manufacturing Enterprises access to land, market, sufficient


2020 ◽  
Author(s):  
Assefa Ayele Anaye ◽  
Kassa Tarekegn Erkalo

Abstract Introduction Ethiopia is the largest wheat producer in Sub-Saharan Africa and wheat is one of the major staple food crops in many parts of the country. However, due to technical and socioeconomic factors the productivity of wheat is below the estimated potential. As a result of this the country remains a net importer of wheat. To improve this problem, row planting of wheat with improved level of efficiency becomes more crucial. This study was aimed to measure technical efficiency, yield gap due to inefficiency and identify the factors that influence the efficiency levels of wheat producers’ row planting and broadcasting methods in Hadiya zone, southern Ethiopia. Cross sectional data from 203 farmers from both row planting and broadcasting methods were selected using multistage sampling procedure and analyzed using stochastic frontier Cobb–Douglas production. Results and Conclusions Descriptive results indicated that the average wheat output in row planting (3250 kg/ha) was 1360 kg/ha higher than in broadcasting (1890 kg/ha). The estimated results of the Cobb-Douglas frontier model shows that the mean technical efficiency was 83.4% and 57.8% under row planting and broadcasting respectively. About 646.882 kg/ha under row planting and 1393.038 kg/ha under broadcasting of wheat output was lost due to inefficiency. This reveals that under the existing practices there is a room to increase wheat yield more under broadcasting (42.2%) than row planting (16.6%) following the best-practiced farms in the study area. The SPF model indicates that NPS, urea, labor and seed, are significant determinants of wheat production level in both methods. The estimated SPF model together with the inefficiency parameters shows that education, age, fertility status of the plot, family size and extension contact negatively and significantly affected technical inefficiency whereas land fragmentation positively and significantly affected technical inefficiency of wheat farmers. Hence, emphasis should be given to improve the efficiency level of those less efficient farmers by adopting the practices of relatively efficient farmers in the area. Beside this, policies and strategies of the government should be directed towards the above mentioned determinants.


2020 ◽  
Vol 10 (4(S)) ◽  
pp. 1-11
Author(s):  
Sandunika Jayakody ◽  
Sajitha Dishanka

While accepting the fact that the tea smallholdings sector of Sri Lanka immensely contribute to the annual tea output of the economy, the sector still faces various deficiencies due to problems pertaining to input related issues. Measuring the level of efficiency and identifying the factors which are attributed to inefficiency are in utmost importance in introducing remedies for that. A cross sectional survey was conducted on a sample of tea smallholders in Ratnapura district where highest contribution to the total tea production of the country is made. In this study, the Cobb-Douglas Stochastic production frontier model was used by incorporating the technical inefficiency effect model to estimate the level of technical efficiency in tea smallholdings sector. The study revealed that average technical efficiency of tea smallholdings sector in the study area was 87.36 percent that keeps a margin of 12.64 percent for further improvements through better use of available resources and technology. The results of the Cobb-Douglas model revealed that the estimated coefficients of land, labor and fertilizer are positively and significantly affect the green leaves production of the sector. The findings of the inefficiency model disclosed that age, farming experience, level of education, occupation, age of tea plants, farming group membership and credit access have significant negative impact on technical inefficiency


2020 ◽  
Author(s):  
Assefa Ayele Anaye ◽  
Meded Awel ◽  
Alemayehu Oljirra ◽  
Mulubrhan Bayessa ◽  
Ibrahim Aliyi ◽  
...  

Abstract Agriculture in Ethiopia is characterized by low productivity for most crops including teff which is gaining prominence as both a food and income crop. The low productivity is mostly attributed to inefficiencies. To solve this, improving efficiency of the farmer has received the greatest attention as it is more cost effective than introducing new technologies. This study was undertaken in southwest Ethiopia to assess productivity and technical, allocative and economic efficiencies of teff farmers and identifies factors that determine productivity and inefficiencies. Cross sectional data from a random sample of 323 teff producing farmers collected during 2018/19 production season were used for the analysis. A Cobb-Douglas production function was employed to assess teff productivity and factors conditioning productivity. In addition, stochastic production frontier model was used to estimate technical, allocative and economic efficiency level where as OLS regression was used to identify factors affecting inefficiencies level. The result depicted that productivity of teff was significantly influenced by the use of seed, fertilizer, and labor. The estimated mean values of technical, allocative and economic efficiencies were 69, 60 and 56% respectively, which indicate the presence of inefficiency in teff production in the study area. The OLS model results revealed that education levels, age, soil fertility and frequency of extension contact had a significant negative effect on technical inefficiency. Similarly, education levels, participation in off/non-farm activities, soil fertility and frequency of extension were found to have negative effect on allocative inefficiency while education levels, participation in off/non-farm activities and soil fertility had negative influence on economic inefficiency. Hence, policies and strategies of the government should be directed towards the above mentioned determinants.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bahadur Ali Soomro

Purpose At present, nearly the whole globe is facing a severe threat of COVID-19. This study aims to examine the COVID-19 complications and entrepreneurial intention among the entrepreneurs of Pakistan. Design/methodology/approach The study used a deductive approach. An online survey is conducted to collect cross-sectional data from entrepreneurs of Pakistan. Convenience sampling is applied to target the respondents. In total, 278 usable answers proceed for final analysis. The structural equation model (SEM) is used to infer the results. Findings The findings of the study highlight a significant negative effect of fear of COVID-19 (FO19), perceived susceptibility (PSU) and perceived severity (PSE) on entrepreneurial intention (EI) among the entrepreneurs. Practical implications The study would provide the guidelines for policymakers and planners to combat the barriers of fear, PSU and PSE during a pandemic. The findings of the second wave of COVID-19 may provide a warning to the government to take preventive measures to face the severe effect of the pandemic. Finally, the outcomes of the study may enrich the depth of COVID-19 literature globally. Originality/value This study is the first study highlighting factors such as fear, PSU and PSE toward EI in COVID-19 second wave.


2019 ◽  
pp. 097215091985493
Author(s):  
Syed Ali Fazal ◽  
Abdullah Al Mamun ◽  
Ghazali Bin Ahmad ◽  
Muhammad Mehedi Masud

Considering the significance of relevant competencies towards business success and the dependency of socio-economical vulnerable micro-entrepreneurs on their enterprise income, this study examined the effect of entrepreneurs’ competencies (i.e., opportunity recognizing competency, strategic competency, organizing competency, relationship competency, conceptual competency and commitment competency) on the competitive advantage of microenterprises in Malaysia. This study adopted a cross-sectional research design and collected quantitative data from 300 randomly selected respondents from Peninsular Malaysia. The findings revealed significant positive effects of organizing and commitment competency on the competitive advantage with a significantly negative effect of relationship competency on the competitive advantage. Apart from enriching the current literature, this study offers significant policy implications for the government and socio-developmental organizations in Malaysia for improving the micro-entrepreneurship and uplifting large low-income groups from poverty.


Author(s):  
Pauline Nyokabi Kamau ◽  
Geoffrey Kingori Gathungu ◽  
Rael Nkatha Mwirigi

This study focused on measuring farm level technical efficiency among smallholder Irish potato farmers in Molo Sub County and its determinants. Descriptive research design was applied. Cross-sectional data was collected through multistage sampling from smallholder Irish potato farmers located in Molo Sub County from April to June 2019. A Stochastic frontier approach assuming a Cobb-Douglas production function was adopted to analyze the level of technical efficiency and explain variations in this technical efficiency across farmers and estimation was done by applying the maximum likelihood method. Mean technical efficiency was 70.7%. The statistically significant variables with respect to the farm inputs were land (0.262), seed (0.629), fertilizer (-0.299) and fungicide (0.131) variables respectively. However, fertilizer variable had negative effects on Irish potato production. Education (-0.061), gender (-0.262), access to extension services (-0.078) and farmer group (-0.217) variables were significant and influenced technical inefficiency negatively.Increase in smallholder farmers’ literacy level, accessibility to extension services and farmer groups may improve Irish potato production technical efficiency. However, gender contribution towards Irish potato production technical efficiency needs a deeper understanding.


2020 ◽  
pp. 097215092095354
Author(s):  
Petro Maziku ◽  
Robert Mashenene

This study assessed the effect of non-tariff barriers (NTBs) on the production and marketing of maize for smallholder farmers in Mbozi and Momba Districts located in Songwe region in Tanzania. A cross-sectional design was employed in gathering primary data. A two-stage stratified sampling procedure was used in the selection of 400 smallholder farmers, who were surveyed using standardized questionnaires. In estimating the effect of NTBs on maize production and supply, the duality model was employed. The results indicate that NTBs have a depressive effect on the quantity of maize produced and marketed. The findings further show that a unit increase in transaction costs attributed to NTBs could reduce the quantity of maize produced by 16 per cent in the two districts. Based on these findings, it is concluded that the quantity of maize produced and supplied by farmers in the two districts decreases with an increase in the NTB costs. The study recommends the reduction and/or removal of the NTBs, which impede maize production and marketing among smallholder farmers. This would help the government to achieve its goals of creating high prices in the surplus districts and attain low consumer prices in the deficit urban centers, thus reducing poverty.


Sign in / Sign up

Export Citation Format

Share Document