Review on Economic Efficiency of Maize Production in Ethiopia

Abstract

Despite the fact that, agriculture remains to be the most significant sector of the Ethiopian economy, its performance has been disappointing and food production has been lagging behind population growth. Although increasing population pressure and low levels of agricultural productivity have aggravated the food insecurity situation by widening the gap between the demand for and supply of food in the country. This gap can be decreased by improving productivity either through the introduction of modern technologies or improving the efficiency of crop production. However, as the possibility to enhance production by bringing more resources into use became more and more limited, the efficiency with which the farmers use available resources has received the greatest attention. Since maize is a significant contributor to the Ethiopian economy, escalating productivity and efficiency of maize production could be taken as an important step in achieving food security. This review was aimed at assessing the levels of technical, allocative and economic efficiencies of smallholder maize producers; and to identify factors affecting the efficiency of smallholder farmers in maize production in Ethiopia. In these review factors like education, land fragmentation, livestock ownership, a frequency of extension contact, soil fertility, off/non-farm activities, sex, land owned, credit utilization and perception on agricultural policy are identified as the key determinants of the economic efficiency of maize production in Ethiopia. The frequency distribution of technical, allocative and economic efficiency levels was not fairly distributed. The maize farms were being operated in a different level of efficiency. This implies that a large number of maize farmers in Ethiopia faced inefficiency problems.

Keywords: Maize, Economic efficiency, Determinants, Ethiopia

DOI: 10.7176/FSQM/84-04