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Technical efficiency of smallholder farmers in red pepper production in North Gondar zone Amhara regional state, Ethiopia

Author

Listed:
  • Tadie Mirie Abate

    (University of Gondar)

  • Abebe Birara Dessie

    (University of Gondar)

  • Taye Melese Mekie

    (University of Gondar)

Abstract

Indtroduction Currently, Ethiopia is following an agricultural development-led industrialization strategy with a major goal of helping agriculture grow so that it can encourage growth in other sectors of the country’s economy. However, it is characterized by low productivity due to technical and socioeconomic factors. To improve this problem, integration of modern technologies with improved level of efficiency becomes more crucial. Therefore, this study tries to fill the gap by investigating efficiency variations and factors affecting technical efficiency of red pepper production in North Gondar zone Amhara regional state, Ethiopia. Methods By using multistage sampling, cross-sectional data were collected from 385 systematically selected households. Stochastic frontier Cobb–Douglas production was estimated. Result and conclusion The results of the analysis revealed that a mean technical efficiency of red pepper was 78.80% (ranging from 16 to 94.9%). This implies that red pepper producers can reduce current level of input application by 21.2% given the existing technology level. The estimated stochastic production frontier (SPF) model also indicates that land, seed, chemical, oxen and labor are significant determinants of red pepper production level. The estimated SPF model together with the inefficiency parameters shows that age, education status, land size, land fragmentation, extension service, credit access and market information were found to statistically and significantly affect the level of TE of red pepper farmers in the study area. 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 so that they can be able to operate at the frontier. Specifically the concerned body should provide adult and vocational education for the farmers and create opportunities for farmers with lower technical efficiency to have experience and best practices sharing with those that scored efficiency scores close to one.

Suggested Citation

  • Tadie Mirie Abate & Abebe Birara Dessie & Taye Melese Mekie, 2019. "Technical efficiency of smallholder farmers in red pepper production in North Gondar zone Amhara regional state, Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-18, December.
    • Handle: RePEc:spr:jecstr:v:8:y:2019:i:1:d:10.1186_s40008-019-0150-6
    DOI: 10.1186/s40008-019-0150-6
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    References listed on IDEAS

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    1. Yu, Bingxin & Nin-Pratt, Alejandro & Funes, José & Gemessa, Sinafikeh Asrat, 2011. "Cereal production and technology adoption in Ethiopia:," ESSP working papers 31, International Food Policy Research Institute (IFPRI).
    2. Asfaw, Solomon & Shiferaw, Bekele A., 2010. "Agricultural Technology Adoption and Rural Poverty: Application of an Endogenous Switching Regression for Selected East African Countries," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 97049, African Association of Agricultural Economists (AAAE).
    3. Asefa, Shumet, 2011. "Analysis of technical efficiency of crop producing smallholder farmers in Tigray,Ethiopia," MPRA Paper 40461, University Library of Munich, Germany, revised 19 Sep 2012.
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    1. Muktar Geleto & Mohammed Essa, 2022. "Analysis of Red Pepper Production Risk Adjusted Technical Efficiency: The Case Of Lanfuro District In Siltie Zone, Southern Ethiopia," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 10(1), pages 30-58, May.
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    3. Debebe, Sisay & Gebre, Endale & Kuma, Tadesse, 2022. "Yield Gaps and Technical Inefficiency Factors for Major Cereal Crops in Ethiopia: Panel Stochastic Frontier Approach," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 31(01), April.
    4. Tigabu Dagnew Koye & Abebe Dagnew Koye & Taye Melese Mekie, 2022. "Analysis of technical efficiency of irrigated tomato production in North Gondar Zone of Amhara Regional State, Ethiopia," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 599-620, December.
    5. Cahyaningsih, Anggi Fitria & Rahayu, Endang Siti & Kusnandar, 2023. "Economic efficiency of cassava farming," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(3), September.
    6. Dagmawe Menelek Asfaw, 2021. "Analysis of technical efficiency of smallholder tomato producers in Asaita district, Afar National Regional State, Ethiopia," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-16, September.
    7. Purmiyati, Atik & Setyowati, Retno & Rakhima, Marta Sabila, 2021. "The Role of Microcredit Program and Micro Enterprises in Poverty Reduction," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(2), pages 29-38.
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    11. Abebe Birara Dessie & Tadie Mirie Abate & Betelhem Tsedalu Adane & Tiru Tesfa & Shegaw Getu, 2020. "Estimation of technical efficiency of black cumin (Nigella sativa L.) farming in northwest Ethiopia: a stochastic frontier approach," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-14, December.
    12. Raoul Akanro & Abraham Amoussouga Gero & Marie Odile Attanasso, 2022. "Estimation and determinants of technical efficiency of smallholder cashew (anacardium) farmers in Dassa district, Benin: a bootstrap data envelopment approach," SN Business & Economics, Springer, vol. 2(12), pages 1-17, December.
    13. Melese Tsegaye & Gurmis Nigus, 2024. "Technical Efficiency and Marketing Performance of Turmeric Production," Zagreb International Review of Economics and Business, Sciendo, vol. 27(1), pages 177-199.
    14. Birara Endalew & Adugnaw Anteneh & Kassahun Tasie, 2022. "Technical Efficiency of Teff Production Among Smallholder Farmers: Beta Regression Approach," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 1076-1096, April.
    15. Abebe Birara Dessie & Tigabu Dagnew Koye & Abebe Dagnew Koye & Asmamaw Alemu Abitew, 2019. "Analysis of red pepper marketing: evidence from northwest Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-14, December.
    16. Agerie Nega Wassihun & Tigabu Dagnew Koye & Abebe Dagnew Koye, 2019. "Analysis of technical efficiency of potato (Solanum tuberosum L.) production in Chilga District, Amhara National Regional State, Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-18, December.
    17. Shalander Kumar & Abhishek Das & Michael Hauser & Geoffrey Muricho & Tulu Degefu & Asnake Fikre & Chris Ojiewo & Setotaw Ferede & Rajeev K. Varshney, 2022. "Estimating the potential to close yield gaps through increased efficiency of chickpea production in Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(5), pages 1241-1258, October.
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