TECHNICAL EFFICIENCY OF BARLEY PRODUCERS IN DAMBOYA WOREDA OF KEMBATA TEMBARO ZONE, SOUTHERN ETHIOPIA

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.