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Economic Efficiency of Potato Production by Smallholder Farmers in West Arsi Zone, Oromia Region Ethiopia

Received: 17 June 2023     Accepted: 7 December 2023     Published: 11 September 2024
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Abstract

This study investigated Economic Efficiency of Potato Production in West Arsi Zone, Oromia Region, Ethiopia. Structured questionnaires were used to collect data from 117 respondents randomly selected from designated locations in West Arsi Zone. A stochastic production frontier function was fitted to the sample households. The result revealed that the mean TE, AE and EE was about 75.60%, 91.41% and 69.07% of for potato production. The sum of the partial elasticity of all inputs were 1.17 for Potato indicating an increase in all inputs at the sample mean by one percent increase by 1.17%. This indicates that the production function is characterized by increasing returns to scale productions. The result of Tobit model estimation indicated that the technical efficiency of Potato production in West Arsi Zone is significantly influenced by the variables potato farming experience, education level, social participation and Extension contact affect efficiency positively while, distance to FTC affect technical efficiency negatively. The mean potato yield difference between sample farmer due to technical efficiency variation was 31.04 qt per ha. District office of Agriculture, stockholders and concerned bodies should focus on farmers experience sharing, providing technical support and farmers practice different social participation to improve his/her income could jointly contribute to the improvement in efficiency of Potato farmers in West Arsi Zone.

Published in American Journal of Agriculture and Forestry (Volume 12, Issue 5)
DOI 10.11648/j.ajaf.20241205.12
Page(s) 325-339
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), 2024. Published by Science Publishing Group

Keywords

Efficiency, West Arsi, Frontier Model, Tobit Model

References
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  • APA Style

    Bati, B. (2024). Economic Efficiency of Potato Production by Smallholder Farmers in West Arsi Zone, Oromia Region Ethiopia. American Journal of Agriculture and Forestry, 12(5), 325-339. https://doi.org/10.11648/j.ajaf.20241205.12

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    ACS Style

    Bati, B. Economic Efficiency of Potato Production by Smallholder Farmers in West Arsi Zone, Oromia Region Ethiopia. Am. J. Agric. For. 2024, 12(5), 325-339. doi: 10.11648/j.ajaf.20241205.12

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    AMA Style

    Bati B. Economic Efficiency of Potato Production by Smallholder Farmers in West Arsi Zone, Oromia Region Ethiopia. Am J Agric For. 2024;12(5):325-339. doi: 10.11648/j.ajaf.20241205.12

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  • @article{10.11648/j.ajaf.20241205.12,
      author = {Beriso Bati},
      title = {Economic Efficiency of Potato Production by Smallholder Farmers in West Arsi Zone, Oromia Region Ethiopia
    },
      journal = {American Journal of Agriculture and Forestry},
      volume = {12},
      number = {5},
      pages = {325-339},
      doi = {10.11648/j.ajaf.20241205.12},
      url = {https://doi.org/10.11648/j.ajaf.20241205.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajaf.20241205.12},
      abstract = {This study investigated Economic Efficiency of Potato Production in West Arsi Zone, Oromia Region, Ethiopia. Structured questionnaires were used to collect data from 117 respondents randomly selected from designated locations in West Arsi Zone. A stochastic production frontier function was fitted to the sample households. The result revealed that the mean TE, AE and EE was about 75.60%, 91.41% and 69.07% of for potato production. The sum of the partial elasticity of all inputs were 1.17 for Potato indicating an increase in all inputs at the sample mean by one percent increase by 1.17%. This indicates that the production function is characterized by increasing returns to scale productions. The result of Tobit model estimation indicated that the technical efficiency of Potato production in West Arsi Zone is significantly influenced by the variables potato farming experience, education level, social participation and Extension contact affect efficiency positively while, distance to FTC affect technical efficiency negatively. The mean potato yield difference between sample farmer due to technical efficiency variation was 31.04 qt per ha. District office of Agriculture, stockholders and concerned bodies should focus on farmers experience sharing, providing technical support and farmers practice different social participation to improve his/her income could jointly contribute to the improvement in efficiency of Potato farmers in West Arsi Zone.
    },
     year = {2024}
    }
    

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  • TY  - JOUR
    T1  - Economic Efficiency of Potato Production by Smallholder Farmers in West Arsi Zone, Oromia Region Ethiopia
    
    AU  - Beriso Bati
    Y1  - 2024/09/11
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    N1  - https://doi.org/10.11648/j.ajaf.20241205.12
    DO  - 10.11648/j.ajaf.20241205.12
    T2  - American Journal of Agriculture and Forestry
    JF  - American Journal of Agriculture and Forestry
    JO  - American Journal of Agriculture and Forestry
    SP  - 325
    EP  - 339
    PB  - Science Publishing Group
    SN  - 2330-8591
    UR  - https://doi.org/10.11648/j.ajaf.20241205.12
    AB  - This study investigated Economic Efficiency of Potato Production in West Arsi Zone, Oromia Region, Ethiopia. Structured questionnaires were used to collect data from 117 respondents randomly selected from designated locations in West Arsi Zone. A stochastic production frontier function was fitted to the sample households. The result revealed that the mean TE, AE and EE was about 75.60%, 91.41% and 69.07% of for potato production. The sum of the partial elasticity of all inputs were 1.17 for Potato indicating an increase in all inputs at the sample mean by one percent increase by 1.17%. This indicates that the production function is characterized by increasing returns to scale productions. The result of Tobit model estimation indicated that the technical efficiency of Potato production in West Arsi Zone is significantly influenced by the variables potato farming experience, education level, social participation and Extension contact affect efficiency positively while, distance to FTC affect technical efficiency negatively. The mean potato yield difference between sample farmer due to technical efficiency variation was 31.04 qt per ha. District office of Agriculture, stockholders and concerned bodies should focus on farmers experience sharing, providing technical support and farmers practice different social participation to improve his/her income could jointly contribute to the improvement in efficiency of Potato farmers in West Arsi Zone.
    
    VL  - 12
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Author Information
  • Oromia Agricultural Research Institute (OARI), Adami Tulu Agricultural Research Center, East Shewa Batu, Ethiopia

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