Author
Wabele Sirgaga
University of Werabe Faculty of Business and Economics,
Werabe, Ethiopia.
Abstract
Ethiopian agriculture is known for low productivity. Productivity could be enhanced by perfecting the state of technology or enhancing the efficiency of producers and helping to ensure food security within the currently available technology. The study aimed to measure the level of efficiency of wheat production and to identify factors affecting efficiency in the study area. A multistage and purposive sampling technique was employed to select 366 wheat-growing smallholder farmers. Descriptive and inferential statistics, Tobit, and stochastic production functions were employed. The results show there was a significant level of inefficiency in Wheat production. The study result shows that 79.8%, 67.6%, and 53.4% are the mean levels of technical, allocative, and economic efficiency scores, respectively. The estimated stochastic production frontier model indicates that land, oxen, amounts of NPS and urea fertilizers, and amounts of seed are significant determinants of production level. The Tobit model results indicate that the education level of the household, participating in off-farm and non-farm activities, and livestock holdings have a significant positive impact on allocative and economic efficiencies. However, frequency of extension contacts, credit access, and row planting have a positive and significant effect on allocative efficiency. Therefore, policies and strategies of the government should be gathered towards the above-mentioned factors.
Keywords
Efficiency Ethiopian Lemo district Stochastic frontier Wheat production
How to Cite This Article
APA Citation
Sirgaga, W. (2025). Analysis of Factors Affecting the Efficiency of Smallholder Wheat Production in Lemo District, Hadiya Zone, SNNPR, Ethiopia. International Journal of Economics and Management Intellectuals, 1(2), 1-11.
Conclusion
The study revealed significant inefficiencies in smallholder wheat production in Lemo District with mean technical efficiency of 79.8%, allocative efficiency of 67.6%, and economic efficiency of 53.4%. Key inputs such as land, oxen, NPS fertilizer, urea, and seed significantly influence output.
Education, livestock ownership, off-farm activities, extension contacts, credit access, and row planting positively affect efficiency. Policies should focus on improving education, livestock development, extension services, credit access, and promotion of improved practices like row planting to enhance wheat productivity and food security.
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