Technical Efficiency of Smallholder Maize Producers in Ethiopia: The Case of Wolaita and Gamo Gofa Zones

Abstract

Increasing population pressure and low levels of agricultural productivity have been critical problems of Ethiopia. These have aggravated the food insecurity situation by widening the gap between demand for and supply of food. Increasing efficiency in maize production could be taken an important step towards attaining food security. This study was undertaken to assess the technical efficiency of smallholder farmers and identify determinant factors. The mean technical efficiency was found to be 40 percent indicating that there was substantial level of technical inefficiency of smallholder farmers in maize production. Important factors that significantly affected the technical efficiency were agro-ecology, oxen holding, farm size and use of high yielding maize varieties. Thus, concerned authorities have to concentrate in lowlands, improve oxen holding farm households, consolidate the fragmented land holdings and promote high yielding maize varieties to enhance the technical efficiency of maize producers.

Keywords Data envelopment, Decision making unit, technical efficiency, Tobit