Economic Efficiency of Wheat Producers: The Case of Debra Libanos District, Oromia, Ethiopia

Ethiopia has enormous potential for wheat production, yet it remains a net wheat importer. This paper aims to examine the efficiency of wheat production in Debra Libanos district, Ethiopia. Two stages sampling technique was used to randomly select 150 farmers for the study. A stochastic production...

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Bibliographic Details
Main Authors: Kebebew Hundie Bezu, Badassa Wolteji Chala, Milkessa Wakjira Itticha
Format: Article
Language:English
Published: Hasan Eleroğlu 2021-06-01
Series:Turkish Journal of Agriculture: Food Science and Technology
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Online Access:http://www.agrifoodscience.com/index.php/TURJAF/article/view/4244
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Summary:Ethiopia has enormous potential for wheat production, yet it remains a net wheat importer. This paper aims to examine the efficiency of wheat production in Debra Libanos district, Ethiopia. Two stages sampling technique was used to randomly select 150 farmers for the study. A stochastic production frontier and two-limit Tobit estimator was utilized in the study. The study reveals that technical (78.5 %,), allocative (85.6%), and economic (66.7%) efficiencies. The yield gap was 5.13 quintal/ hectare showing a room to increase efficiencies. The study identified the determinants of wheat production efficiency in the area. Hence, to improve wheat production efficiencies strengthen extension services, improved technology utilization, and proper land ploughing. Besides, natural resource conservations that improve soil fertility should be the focus of the policymakers.
ISSN:2148-127X