Abstract:
The main objectives of this study is to estimate technical efficiency level of smallholder
barley producers and the factors that influence technical efficiency in barley production.
This study involved the use of a stochastic frontier analysis to predict the farm level
technical efficiency of barley production in Damboya Woreda Kembata Tembaro Zone,
Southern Ethiopia, by using a multi-stage sampling technique of sample 210 barley
producers. The result of the study revealed that the average level of technical efficiency
was 80.8 percent, which indicates that an average farmer was producing about 19.2
percent below a potential production level; which shows a substantial technical
inefficiency and there is a huge room to increase barley output (19.2 percent) through
adopting best practicing farmers ‘operation using the same combination of inputs and
existing technology. The main drivers of inefficiency effects reveals that educational level
of household ,sex of household, and frequency of extension contact are found to be
negative and significant, indicating that technical efficiency in barley production
increases as the size of these farm-specific efficiency factors increases encouragingly. The
results show that there is an opportunity to increase the efficiency of barley production in
the study area. The result confirmed that education level of the household calls a special
emphasis to upgrade the managerial ability of farmers or farmer’s education by providing
farmers training center, practical training and creation of awareness and knowhow about
the application of inputs and different farming system. Hence, emphasis should be given
to decrease the inefficiency level of those more inefficient farm households via
experience sharing among the farmers and usage of improved or certified barley seed.
Since extension services are the main instrument used in the promotion of demand for
modern technologies, appropriate and adequate extension services should be provided.
Besides to this, policies and strategies of the government should be directed towards
increasing farmers’ education, improve the system of input distributions and institutional
facilities.