Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia

Gadisa Muleta; Addisu Getahun

doi:doi:10.11648/j.ijber.20221103.17

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Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia

Gadisa Muleta, Addisu Getahun

Published in International Journal of Business and Economics Research (Volume 11, Issue 3)

Received: 6 May 2022 Accepted: 1 June 2022 Published: 14 June 2022

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Abstract

Potato is the most important food and cash crop in mid and highlands for its potential in high yielding, good nutritional values, early maturing, improving food security, reducing poverty, serving as a main source of income for farmers, and improving the livelihood of millions of farm households, especially in developing countries like Ethiopia. Therefore, assessment of the technical, allocative, and economic efficiency of potato farmers is paramount important, and this study was intended to achieve this objective. Accordingly, primary data were collected from 301 potato-producing households from two districts, Walmara and Ejersa Lafo districts from central Oromia, Ethiopia. The stochastic frontier model of truncated normal distribution and Cobb-Douglas production function was employed, and the result revealed that households from both districts were not efficient in potato production as the mean technical, allocative, and economic efficiency scores were 61.21, 79.56, and 50.23 percent respectively, indicating the possibility that the households can increase their potato production by 38.78%, and the possibility of reducing potato production cost by 49.76%. Gender of the head and experience in potato production were the variables that positively affected households’ technical efficiency, while Age of the head, the occurrence of potato diseases, and distance from institutions like farmers’ training centers and cooperative unions were the variables that negatively affected households’ technical efficiency in potato production.

Published in	International Journal of Business and Economics Research (Volume 11, Issue 3)
DOI	10.11648/j.ijber.20221103.17
Page(s)	158-165
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Technical Efficiency, Allocative Efficiency, Economic Efficiency, Stochastic Frontier, Potato, Ethiopia

References

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APA Style

Gadisa Muleta, Addisu Getahun. (2022). Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia. International Journal of Business and Economics Research, 11(3), 158-165. https://doi.org/10.11648/j.ijber.20221103.17

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ACS Style

Gadisa Muleta; Addisu Getahun. Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia. Int. J. Bus. Econ. Res. 2022, 11(3), 158-165. doi: 10.11648/j.ijber.20221103.17

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AMA Style

Gadisa Muleta, Addisu Getahun. Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia. Int J Bus Econ Res. 2022;11(3):158-165. doi: 10.11648/j.ijber.20221103.17

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@article{10.11648/j.ijber.20221103.17,
  author = {Gadisa Muleta and Addisu Getahun},
  title = {Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia},
  journal = {International Journal of Business and Economics Research},
  volume = {11},
  number = {3},
  pages = {158-165},
  doi = {10.11648/j.ijber.20221103.17},
  url = {https://doi.org/10.11648/j.ijber.20221103.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221103.17},
  abstract = {Potato is the most important food and cash crop in mid and highlands for its potential in high yielding, good nutritional values, early maturing, improving food security, reducing poverty, serving as a main source of income for farmers, and improving the livelihood of millions of farm households, especially in developing countries like Ethiopia. Therefore, assessment of the technical, allocative, and economic efficiency of potato farmers is paramount important, and this study was intended to achieve this objective. Accordingly, primary data were collected from 301 potato-producing households from two districts, Walmara and Ejersa Lafo districts from central Oromia, Ethiopia. The stochastic frontier model of truncated normal distribution and Cobb-Douglas production function was employed, and the result revealed that households from both districts were not efficient in potato production as the mean technical, allocative, and economic efficiency scores were 61.21, 79.56, and 50.23 percent respectively, indicating the possibility that the households can increase their potato production by 38.78%, and the possibility of reducing potato production cost by 49.76%. Gender of the head and experience in potato production were the variables that positively affected households’ technical efficiency, while Age of the head, the occurrence of potato diseases, and distance from institutions like farmers’ training centers and cooperative unions were the variables that negatively affected households’ technical efficiency in potato production.},
 year = {2022}
}

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TY  - JOUR
T1  - Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia
AU  - Gadisa Muleta
AU  - Addisu Getahun
Y1  - 2022/06/14
PY  - 2022
N1  - https://doi.org/10.11648/j.ijber.20221103.17
DO  - 10.11648/j.ijber.20221103.17
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 158
EP  - 165
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20221103.17
AB  - Potato is the most important food and cash crop in mid and highlands for its potential in high yielding, good nutritional values, early maturing, improving food security, reducing poverty, serving as a main source of income for farmers, and improving the livelihood of millions of farm households, especially in developing countries like Ethiopia. Therefore, assessment of the technical, allocative, and economic efficiency of potato farmers is paramount important, and this study was intended to achieve this objective. Accordingly, primary data were collected from 301 potato-producing households from two districts, Walmara and Ejersa Lafo districts from central Oromia, Ethiopia. The stochastic frontier model of truncated normal distribution and Cobb-Douglas production function was employed, and the result revealed that households from both districts were not efficient in potato production as the mean technical, allocative, and economic efficiency scores were 61.21, 79.56, and 50.23 percent respectively, indicating the possibility that the households can increase their potato production by 38.78%, and the possibility of reducing potato production cost by 49.76%. Gender of the head and experience in potato production were the variables that positively affected households’ technical efficiency, while Age of the head, the occurrence of potato diseases, and distance from institutions like farmers’ training centers and cooperative unions were the variables that negatively affected households’ technical efficiency in potato production.
VL  - 11
IS  - 3
ER  -

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Author Information

Gadisa Muleta

Ethiopian Institute of Agricultural Research (EIAR), National Agricultural Biotechnology Research Center (NABRC), Holeta, Ethiopia
Addisu Getahun

Ethiopian Institute of Agricultural Research (EIAR), Holeta Agricultural Research Center (HARC), Holeta, Ethiopia

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APA Style

Gadisa Muleta, Addisu Getahun. (2022). Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia. International Journal of Business and Economics Research, 11(3), 158-165. https://doi.org/10.11648/j.ijber.20221103.17

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ACS Style

Gadisa Muleta; Addisu Getahun. Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia. Int. J. Bus. Econ. Res. 2022, 11(3), 158-165. doi: 10.11648/j.ijber.20221103.17

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AMA Style

Gadisa Muleta, Addisu Getahun. Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia. Int J Bus Econ Res. 2022;11(3):158-165. doi: 10.11648/j.ijber.20221103.17

Copy | Download

@article{10.11648/j.ijber.20221103.17,
  author = {Gadisa Muleta and Addisu Getahun},
  title = {Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia},
  journal = {International Journal of Business and Economics Research},
  volume = {11},
  number = {3},
  pages = {158-165},
  doi = {10.11648/j.ijber.20221103.17},
  url = {https://doi.org/10.11648/j.ijber.20221103.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221103.17},
  abstract = {Potato is the most important food and cash crop in mid and highlands for its potential in high yielding, good nutritional values, early maturing, improving food security, reducing poverty, serving as a main source of income for farmers, and improving the livelihood of millions of farm households, especially in developing countries like Ethiopia. Therefore, assessment of the technical, allocative, and economic efficiency of potato farmers is paramount important, and this study was intended to achieve this objective. Accordingly, primary data were collected from 301 potato-producing households from two districts, Walmara and Ejersa Lafo districts from central Oromia, Ethiopia. The stochastic frontier model of truncated normal distribution and Cobb-Douglas production function was employed, and the result revealed that households from both districts were not efficient in potato production as the mean technical, allocative, and economic efficiency scores were 61.21, 79.56, and 50.23 percent respectively, indicating the possibility that the households can increase their potato production by 38.78%, and the possibility of reducing potato production cost by 49.76%. Gender of the head and experience in potato production were the variables that positively affected households’ technical efficiency, while Age of the head, the occurrence of potato diseases, and distance from institutions like farmers’ training centers and cooperative unions were the variables that negatively affected households’ technical efficiency in potato production.},
 year = {2022}
}

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TY  - JOUR
T1  - Technical, Allocative, and Economic Efficiency of Potato Producers in Central Oromia, Ethiopia
AU  - Gadisa Muleta
AU  - Addisu Getahun
Y1  - 2022/06/14
PY  - 2022
N1  - https://doi.org/10.11648/j.ijber.20221103.17
DO  - 10.11648/j.ijber.20221103.17
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 158
EP  - 165
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20221103.17
AB  - Potato is the most important food and cash crop in mid and highlands for its potential in high yielding, good nutritional values, early maturing, improving food security, reducing poverty, serving as a main source of income for farmers, and improving the livelihood of millions of farm households, especially in developing countries like Ethiopia. Therefore, assessment of the technical, allocative, and economic efficiency of potato farmers is paramount important, and this study was intended to achieve this objective. Accordingly, primary data were collected from 301 potato-producing households from two districts, Walmara and Ejersa Lafo districts from central Oromia, Ethiopia. The stochastic frontier model of truncated normal distribution and Cobb-Douglas production function was employed, and the result revealed that households from both districts were not efficient in potato production as the mean technical, allocative, and economic efficiency scores were 61.21, 79.56, and 50.23 percent respectively, indicating the possibility that the households can increase their potato production by 38.78%, and the possibility of reducing potato production cost by 49.76%. Gender of the head and experience in potato production were the variables that positively affected households’ technical efficiency, while Age of the head, the occurrence of potato diseases, and distance from institutions like farmers’ training centers and cooperative unions were the variables that negatively affected households’ technical efficiency in potato production.
VL  - 11
IS  - 3
ER  -

Copy | Download