Maize Production Efficiency in Damot Woyede District, Southern Ethiopia: The Stochastic Frontier Analysis

Abstract

The study aimed to estimate the TE, AE, and EE levels and identified sources of the inefficiency of maize production in Damot Sore district in southern Ethiopia. A three-stage probability random sampling technique was used to select 384 sample farmers. The descriptive statistics, stochastic production frontier, and two-limit Tobit econometric model were used to estimate the efficiencies levels and identify the sources of maize production inefficiencies. The mean technical efficiency (TE), allocative efficiency (AE), and economic efficiency (EE 's were 82, 75, and 62 per cent, respectively. Maize output was determined by land size, the quantity of fertilizer, family labour, oxen power, seed, and pesticides. Sources of maize production inefficiencies are the gender of the household, landholding, training, education, farm experience, membership in cooperatives, age, distance from the plot of land, off-farm activities, livestock holding, and distance from the credit institution. Mainly it provides more concrete recommendations to policymakers to focus on agricultural advisory and support services. Including the provision of credit and short-term training on advanced maize production technologies for women and other disadvantaged groups and promoting the establishment of women farmer learning circles.