Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia

Minilik Tsega; Tesfaye Haregewoin; Bamlak Alamirew

doi:doi:10.11648/j.ijae.20220705.11

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Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia

Minilik Tsega, Tesfaye Haregewoin, Bamlak Alamirew

Published in International Journal of Agricultural Economics (Volume 7, Issue 5)

Received: 11 July 2022 Accepted: 17 August 2022 Published: 5 September 2022

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Abstract

Maize is one of the most important cereal crops in Ethiopia, ranking first in total cereals production (30%). The crop is mainly produced by smallholder farmers. The crop current national yield (4.01t/ha) is far below the world average. Producers’ Technical Efficiency (TE) is one of the major factors for its low level of yield. The study sought to examine TE level of smallholder maize production and to explore socioeconomic factors explaining the variation in TE among smallholder maize producers in Amhara regional state, Ethiopia. A Translog stochastic production function model was used to analyze TE while Maximum Likelihood (ML) and Quintile Regression (QR) estimation techniques were employed to identify TE determinant factors. The study used a data collected from 239 maize producing households’ selected randomly from seven major maize growing districts of the study region. The study results showed presence of maize production inefficiency, which was accountable for 66.5% of variability between observed and frontier output. The estimated TE of smallholder maize producers in the study area ranges from 20% to 94% with a mean TE of 83%. The study also indicated that number of cultivated maize plots, total cultivated land size, improved variety adoption, contact with extension agents and cultivated plot’s soil fertility status as factors which have positive and significant TE effect. It has also identified household size, involvement in formal education and age of household head as factors having significant negative TE effect. The study underlines the possibility to improve the average TE of smallholder maize production in the study area by 17% (4.8qt/ha increase in productivity) through better use of the available resources, given the current state of technology.

Published in	International Journal of Agricultural Economics (Volume 7, Issue 5)
DOI	10.11648/j.ijae.20220705.11
Page(s)	204-213
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Technical Efficiency, Yield Gap, Stochastic Frontier Model, Translog Production Function, Quantile Regression, Smallholder Farmers

References

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[2]	Aigner, D. J., A. K. Lovell and P. Schmidt, 1977, Formulation and estimation of stochastic frontier production function models, Journal of Econometrics 6, 21-37.
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[4]	Beyan Ahmed, Jema Haji and Endrias Geta. 2013. Analysis of farm households' technical efficiency in production of smallholder farmers: the case of Girawa woreda, Ethiopia. American-Eurasian Journal of Agricultural and Environmental Sciences, 13 (12): 16151621.
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[9]	Getachew Magnar and Bamlaku Alamirew. 2014. Analysis of Technical Efficiency of Small Holder Maize Growing Farmers of Horo Guduru Wollega Zone, Ethiopia: A Stochastic Frontier Approach. Science, Technology and Arts Research Journal Sci. Technol. Arts Res. J., July-Sep 2014, 3 (3): 204-212 Journal Homepage: http://www.starjournal.org/
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[14]	Sisay D., Jema H., Degye G., and Abdi-K. Technical, allocative, and economic efficiency among smallholder maize farmers in Southwestern Ethiopia: Parametric approach. Journal of Development and Agricultural Economics. Vol. 7 (8), pp. 283-292, August, 2015 DOI: 10.5897/JDAE2015.0652 Article Number: 2EDA2F754352 ISSN 2006-9774.
[15]	Silva J V, Reidsma P, Laborte A G, van Ittersum M K. 2017. Explaining rice yields and yield gaps in Central Luzon, Philippines: An application of stochastic frontier analysis and crop modelling. European Journal of Agronomy, 82, 223–241.
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APA Style

Minilik Tsega, Tesfaye Haregewoin, Bamlak Alamirew. (2022). Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia. International Journal of Agricultural Economics, 7(5), 204-213. https://doi.org/10.11648/j.ijae.20220705.11

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ACS Style

Minilik Tsega; Tesfaye Haregewoin; Bamlak Alamirew. Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia. Int. J. Agric. Econ. 2022, 7(5), 204-213. doi: 10.11648/j.ijae.20220705.11

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AMA Style

Minilik Tsega, Tesfaye Haregewoin, Bamlak Alamirew. Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia. Int J Agric Econ. 2022;7(5):204-213. doi: 10.11648/j.ijae.20220705.11

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@article{10.11648/j.ijae.20220705.11,
  author = {Minilik Tsega and Tesfaye Haregewoin and Bamlak Alamirew},
  title = {Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia},
  journal = {International Journal of Agricultural Economics},
  volume = {7},
  number = {5},
  pages = {204-213},
  doi = {10.11648/j.ijae.20220705.11},
  url = {https://doi.org/10.11648/j.ijae.20220705.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20220705.11},
  abstract = {Maize is one of the most important cereal crops in Ethiopia, ranking first in total cereals production (30%). The crop is mainly produced by smallholder farmers. The crop current national yield (4.01t/ha) is far below the world average. Producers’ Technical Efficiency (TE) is one of the major factors for its low level of yield. The study sought to examine TE level of smallholder maize production and to explore socioeconomic factors explaining the variation in TE among smallholder maize producers in Amhara regional state, Ethiopia. A Translog stochastic production function model was used to analyze TE while Maximum Likelihood (ML) and Quintile Regression (QR) estimation techniques were employed to identify TE determinant factors. The study used a data collected from 239 maize producing households’ selected randomly from seven major maize growing districts of the study region. The study results showed presence of maize production inefficiency, which was accountable for 66.5% of variability between observed and frontier output. The estimated TE of smallholder maize producers in the study area ranges from 20% to 94% with a mean TE of 83%. The study also indicated that number of cultivated maize plots, total cultivated land size, improved variety adoption, contact with extension agents and cultivated plot’s soil fertility status as factors which have positive and significant TE effect. It has also identified household size, involvement in formal education and age of household head as factors having significant negative TE effect. The study underlines the possibility to improve the average TE of smallholder maize production in the study area by 17% (4.8qt/ha increase in productivity) through better use of the available resources, given the current state of technology.},
 year = {2022}
}

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TY  - JOUR
T1  - Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia
AU  - Minilik Tsega
AU  - Tesfaye Haregewoin
AU  - Bamlak Alamirew
Y1  - 2022/09/05
PY  - 2022
N1  - https://doi.org/10.11648/j.ijae.20220705.11
DO  - 10.11648/j.ijae.20220705.11
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 204
EP  - 213
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20220705.11
AB  - Maize is one of the most important cereal crops in Ethiopia, ranking first in total cereals production (30%). The crop is mainly produced by smallholder farmers. The crop current national yield (4.01t/ha) is far below the world average. Producers’ Technical Efficiency (TE) is one of the major factors for its low level of yield. The study sought to examine TE level of smallholder maize production and to explore socioeconomic factors explaining the variation in TE among smallholder maize producers in Amhara regional state, Ethiopia. A Translog stochastic production function model was used to analyze TE while Maximum Likelihood (ML) and Quintile Regression (QR) estimation techniques were employed to identify TE determinant factors. The study used a data collected from 239 maize producing households’ selected randomly from seven major maize growing districts of the study region. The study results showed presence of maize production inefficiency, which was accountable for 66.5% of variability between observed and frontier output. The estimated TE of smallholder maize producers in the study area ranges from 20% to 94% with a mean TE of 83%. The study also indicated that number of cultivated maize plots, total cultivated land size, improved variety adoption, contact with extension agents and cultivated plot’s soil fertility status as factors which have positive and significant TE effect. It has also identified household size, involvement in formal education and age of household head as factors having significant negative TE effect. The study underlines the possibility to improve the average TE of smallholder maize production in the study area by 17% (4.8qt/ha increase in productivity) through better use of the available resources, given the current state of technology.
VL  - 7
IS  - 5
ER  -

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Author Information

Minilik Tsega

Ethiopian Agricultural Research Council Secretariat, Addis Ababa, Ethiopia
Tesfaye Haregewoin

Ethiopian Agricultural Research Council Secretariat, Addis Ababa, Ethiopia
Bamlak Alamirew

Collage of Development Studies, Addis Ababa University, Addis Ababa, Ethiopia

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APA Style

Minilik Tsega, Tesfaye Haregewoin, Bamlak Alamirew. (2022). Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia. International Journal of Agricultural Economics, 7(5), 204-213. https://doi.org/10.11648/j.ijae.20220705.11

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ACS Style

Minilik Tsega; Tesfaye Haregewoin; Bamlak Alamirew. Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia. Int. J. Agric. Econ. 2022, 7(5), 204-213. doi: 10.11648/j.ijae.20220705.11

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AMA Style

Minilik Tsega, Tesfaye Haregewoin, Bamlak Alamirew. Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia. Int J Agric Econ. 2022;7(5):204-213. doi: 10.11648/j.ijae.20220705.11

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@article{10.11648/j.ijae.20220705.11,
  author = {Minilik Tsega and Tesfaye Haregewoin and Bamlak Alamirew},
  title = {Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia},
  journal = {International Journal of Agricultural Economics},
  volume = {7},
  number = {5},
  pages = {204-213},
  doi = {10.11648/j.ijae.20220705.11},
  url = {https://doi.org/10.11648/j.ijae.20220705.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20220705.11},
  abstract = {Maize is one of the most important cereal crops in Ethiopia, ranking first in total cereals production (30%). The crop is mainly produced by smallholder farmers. The crop current national yield (4.01t/ha) is far below the world average. Producers’ Technical Efficiency (TE) is one of the major factors for its low level of yield. The study sought to examine TE level of smallholder maize production and to explore socioeconomic factors explaining the variation in TE among smallholder maize producers in Amhara regional state, Ethiopia. A Translog stochastic production function model was used to analyze TE while Maximum Likelihood (ML) and Quintile Regression (QR) estimation techniques were employed to identify TE determinant factors. The study used a data collected from 239 maize producing households’ selected randomly from seven major maize growing districts of the study region. The study results showed presence of maize production inefficiency, which was accountable for 66.5% of variability between observed and frontier output. The estimated TE of smallholder maize producers in the study area ranges from 20% to 94% with a mean TE of 83%. The study also indicated that number of cultivated maize plots, total cultivated land size, improved variety adoption, contact with extension agents and cultivated plot’s soil fertility status as factors which have positive and significant TE effect. It has also identified household size, involvement in formal education and age of household head as factors having significant negative TE effect. The study underlines the possibility to improve the average TE of smallholder maize production in the study area by 17% (4.8qt/ha increase in productivity) through better use of the available resources, given the current state of technology.},
 year = {2022}
}

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TY  - JOUR
T1  - Analysis of Technical Efficiency of Smallholder Maize Production Using Stochastic Frontier Approach: The Case of Amhara Region, Ethiopia
AU  - Minilik Tsega
AU  - Tesfaye Haregewoin
AU  - Bamlak Alamirew
Y1  - 2022/09/05
PY  - 2022
N1  - https://doi.org/10.11648/j.ijae.20220705.11
DO  - 10.11648/j.ijae.20220705.11
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 204
EP  - 213
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20220705.11
AB  - Maize is one of the most important cereal crops in Ethiopia, ranking first in total cereals production (30%). The crop is mainly produced by smallholder farmers. The crop current national yield (4.01t/ha) is far below the world average. Producers’ Technical Efficiency (TE) is one of the major factors for its low level of yield. The study sought to examine TE level of smallholder maize production and to explore socioeconomic factors explaining the variation in TE among smallholder maize producers in Amhara regional state, Ethiopia. A Translog stochastic production function model was used to analyze TE while Maximum Likelihood (ML) and Quintile Regression (QR) estimation techniques were employed to identify TE determinant factors. The study used a data collected from 239 maize producing households’ selected randomly from seven major maize growing districts of the study region. The study results showed presence of maize production inefficiency, which was accountable for 66.5% of variability between observed and frontier output. The estimated TE of smallholder maize producers in the study area ranges from 20% to 94% with a mean TE of 83%. The study also indicated that number of cultivated maize plots, total cultivated land size, improved variety adoption, contact with extension agents and cultivated plot’s soil fertility status as factors which have positive and significant TE effect. It has also identified household size, involvement in formal education and age of household head as factors having significant negative TE effect. The study underlines the possibility to improve the average TE of smallholder maize production in the study area by 17% (4.8qt/ha increase in productivity) through better use of the available resources, given the current state of technology.
VL  - 7
IS  - 5
ER  -

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