Analysis of Technical Efficiency of Wheat Production in Horo District of Horoguduru Wollega Zone, Oromia region, Ethiopia

Abstract

The aim of the study was to measure the levels of technical efficiency of wheat producers and identify factors affecting them in Horo district of Horoguduru Wollega Zone, Oromia Region, Ethiopia. The study was based on cross-sectional data collected in 2016/17 production season from 124 randomly selected farm households. Stochastic production frontier model was used to estimate technical efficiency levels and used to identify factors affecting efficiency levels. Accordingly, the mean technical efficiency of sample household’s was 63.9%.The results indicated that there was substantial amount of in efficiency in wheat production in the study area. Land, seed, DAP and chemical were the variables that positively affected the production of wheat. Results of the factor model revealed that family size, experience in wheat production and extension contact positively and significantly affected technical efficiency. Total cultivated land had a significant negative effect on technical efficiency. Results indicate that there is a room to increase the efficiency in wheat production of the study area. Therefore, government authorities and other concerned bodies should take into consideration the above mentioned socio economic and institutional factors to improve the productivity of wheat in the study area.

Keywords: Horo district, technical efficiency, wheat, stochastic

DOI: 10.7176/JNSR/9-13-03

Publication date:July 31^st 2019