Agricultural production of most smallholders in Ethiopia is dependent with recurrent rainfall resulted in production variations. Limited input availability and precarious environmental conditions determine smallholders’ decisions on their production and the production efficiencies vary from farmer to farmer. This study was carried out with the aim of analyzing the technical, allocative and economic efficiencies of smallholder farmers in the production of major crops and their determinants in central Ethiopia, Oromia special zone surrounding Addis Ababa. Multistage sampling technique was employed to randomly and proportionally select 386 smallholders from ten PAs. Primary data were collected from smallholders through a semi structured questionnaire using face to face interview. Cross sectional data collected from sampled households in the study area were analyzed using mathematical and econometric methods. Mathematical programming technique selected for this study was Data Envelopment Analysis (DEA) using linear programming technique assuming multi-input and multi-outputs were handled. Tobit regression model was regressed against the socioeconomic, demographic, and institutional variables that are expected to affect the technical, allocative and economic efficiencies of sampled households. The results of estimated efficiency scores show the mean technical, allocative and economic efficiencies were 0.75, 0.60 and 0.45 respectively. The mean scores of efficiencies show underutilization of resources and the possibilities of smallholders to increase their agricultural production by 25%, and reduce cost of production by 40% and total cost by 55%. Marital status, level of education, farming experience, access to credit, cooperative membership, access to farming information, and off/non-farm income has positive influence on the technical, allocative and economic efficiencies. While age of the household head, access to training and livestock size has negative relations to efficiencies. Delivery of agricultural inputs and trainings on time by the government is the key policy implication to improve the efficiencies of smallholders.
This study attempted to analyze the teff value chain in the Jimma Arjo District of East Wollega Zone, WesternEthiopia. The multistage sampling technique was employed to draw a sample of 123 teff producers, purposively selected 55 traders and 15 consumers. Both quantitative and qualitative data were collected from primary and secondary sources using pre-tested structured questionnaires and checklists. Descriptive statistics and Kendall’s coefficient of concordance were applied to analyze data. Results showed that the main teff value chain actors in the study area included input suppliers, producers, local collectors, wholesalers, retailers, andconsumers. In the district, there were no proper upgrading practices and governance systems in the teff value chain. The predicted probability that teff producers choose local collectors, wholesalers, retailers, and consumer outlets amounted to 45%, 69.9%, 20.4%, and 74.6%, respectively. Kendall’s coefficient of concordance (W) analysis showed that 68.5% and 46.2% of farmers agreed with each other on the ranking of constraints hindering teff production and marketing, respectively. Recommendations drawn from the study findings include the need to improve the input supply system and governance, eliminate issues found in the chain, train farmers, enhance the quality of market information, boost teff productivity and volume sales, strengthen the links between teff value chain actors, and improve support institutions.
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