Analysis of Technical Efficiency of Teff producer Farmers in Raya Kobo District, Amhara National Regional State, Ethiopia

Teff is among the most widely grown cereals in Ethiopia. It accounts for about 24% of total cultivated land and 17.6% of gross grain production. It is a staple diet for greater than 50 million peoples, which is important in the national food security. However, the productivity varies from very low at around 15.8 qt/ha to the highest productivity of 25 qt/ha and research field trials reaching 40-50 qt/ha. The study aimed to measure technical efficiency of farmers in teff production and to identify sources of technical inefficiency in teff production in Raya Kobo District, Amhara National Regional State, Ethiopia. Both primary and secondary data were used to achieve the objectives of the study. Cross-sectional data of 2014/15 production year was collected from 146 farmers selected by using three-stage sampling techniques. Both descriptive statistics and econometric model were used to analyze the data. In the econometric model, stochastic frontier model (one-step approach) was used to measure the level of technical efficiency and to identify sources of technical inefficiency in teff production. The results of stochastic frontier model indicated that labor, oxen power, land allocated for teff, seed rate and interaction of land and labor significantly affect output of teff. The result indicated that 96.5% of teff output variation from the frontier was attributed to technical inefficiency. The mean technical efficiency of farmers was 76.4% indicating that efficiency in teff production among farmers could be increased by 23.6% through better use of labor, oxen power, land allocated for teff and seed in the short run. Moreover, the result of inefficiency model confirmed that technical inefficiency of teff production was negatively affected by early harvesting, experience of farmers, use of improved seed and education level of farmers while participation of farmers in non/off-farm activities, distance to district market and lodging positively affects technical inefficiency of teff production. The empirical finding implies that strengthen awareness to use improved teff varieties; the need to strengthen informal education; strengthenen experience sharing of farmer by preparing field and farmers day; strengthen the development of market infrastructure in order to increase access to agricultural inputs. Moreover, non/off-farm activities should be done during off-seasons and strengthen the extension service to let farmers to use the recommended crop husbandry practices.