SENIOR RESEARCH ON TECHNICAL EFFICIENCY OF TEFF PRODUCTION IN SILTI DISTRICT ,SILTE ZONE,CENTRAL ETHIOPIA REGIONAL STATE

Abstract

Teff is one of the dominant crops and its productivity is low in the study area. This means that it is possible to obtained additional output from existing inputs used, if resource are properly used and efficiently allocated. The aim of this study was to determine the level of technical efficiency of smallholder teff producers and identify factors affecting technical efficiency of smallholder farmers in teff production of Silti district, Silte Zone, Ethiopia. A three stage sampling technique was employed to select 80 sample farmers who were interviewed using a structured schedule to obtain data pertaining to teff production during 2016/2017E.C production year. A Cobb-Douglas stochastic frontier production analysis approach with the inefficiency effect model was used to estimate technical efficiency and identify the determinants of efficiency of teff producing farmers. The maximum likelihood parameter estimates showed that teff output was positively and significantly influenced by seed, labor and number of oxen. This would mean that there is a room to increase teff output from the existing level if farmers are able to use these input variables in an efficient manner. The result further revealed that there were significant differences in technical efficiency among teff producers in the study area.Level of technical efficiency of teff producers mean,min and max are 0.68 ,0.37 and 1 respectively. The estimated stochastic production frontier model together with the inefficiency parameters showed that, extension contact, total number of livestock and credit were found to have negative and significant effect on technical inefficiency while household size was found to have positive and significant effect on technical inefficiency of teff production. Hence, local government should provide necessary supports such as formal as well as informal credit, extension contact and timely seed