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Research Article

volume 39 issue 3 (september 2019) : 184-189.,   Doi: 10.18805/ag.D-150

Efficiency, Yield Gaps, and Profitability of Potato (Solanum Tuberosum) Production in Kombolcha District, Oromia National Regional State, Ethiopia

A
Alem Mezgebo
A
Abadi Teferi
S
Shishay Teklay
G
Gebretnsae Hagos
1<div>Department of Agricultural Economics, Adigrat University,&nbsp;Adigrat, Ethiopia</div>
Cite article:- Mezgebo Alem, Teferi Abadi, Teklay Shishay, Hagos Gebretnsae (2019). Efficiency, Yield Gaps, and Profitability of Potato (SolanumTuberosum) Production in Kombolcha District, OromiaNational Regional State, Ethiopia. Agricultural Science Digest. 39(3): 184-189.. doi: 10.18805/ag.D-150.

ABSTRACT

The study assessed potato production efficiency using the stochastic frontier production function. The study also used descriptive statistics to analyze the data. A sample of 120 potato farmers was selected using multistage random sampling techniques. The results showed that farmers used inputs like land, labor, seed, NPS (Nitrogen, Phosphorus, and Sulfur) and Urea fertilizers to produce potato. On average, these farmers were not economically efficient in producing the crop. The average technical, economic and allocative efficiencies were 91%, 46% and 51%, which meant that the average inefficiency appeared 9%, 54%, and 49% respectively. The result also showed that 18.14 quintals per hectare of yields was lost due to inefficiency. Socio-economic and institutional factors determined efficiency scores. The results suggested that policy maker needs to consider these factors affecting efficiency scores.

REFERENCES

  1. Abdulai, A. and R. Eberlin (2001). "Technical efficiency during economic reform in Nicaragua: evidence from farm household survey data." Economic systems 25(2): 113-125.
  2. Abdulrahman, S., O. Yusuf and A. Suleiman (2015). "Profit efficiency of cocoyam production in Kaduna State, Nigeria." Journal of Experimental Agriculture International: 231-241.
  3. Aigner, D., C. K. Lovell and P. Schmidt (1977). "Formulation and estimation of stochastic frontier production function models." Journal of econometrics 6(1): 21-37.
  4. Alene, A. D. and R. M. Hassan (2006). "The efficiency of traditional and hybrid maize production in eastern Ethiopia: An extended efficiency decomposition approach." Journal of African Economies 15(1): 91-116.
  5. Amara, N., N. Traoré, R. Landry and R. Remain (1999). "Technical efficiency and farmers' attitudes toward technological innovation: The case of the potato farmers in Quebec." Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie 47(1): 31-43.
  6. Assa, M., A.-K. Edriss and G. Matchaya (2013). "Cost efficiency, Morishima, Allen-Uzawa and cross-price elasticities among Irish potato farmers in Dedza District, Malawi." International Journal of Economic Sciences and Applied Research 6(1): 59.
  7. Bifarin, J., T. Alimi, O. Baruwa and O. Ajewole (2010). "Determinants of technical, allocative and economic efficiencies in the plantain (musa spp.)." Production industry. Federal College of Agriculture, Nigeria.
  8. Chepng’etich, E., E. K. Bett, S. O. Nyamwaro and K. Kizito (2014). "Analysis of technical efficiency of sorghum production in lower eastern Kenya: a data envelopment analysis (DEA) approach."
  9. Cromme, N., A. B. Prakash, N. Lutaladio and F. Ezeta (2010). Strengthening potato value chains: technical and policy options for developing countries, Food and Agriculture Organization of the United Nations (FAO).
  10. CSA (Central Statistical Authority) (2014). Agriculture sample survey 2013/2014 (may, 2014). report on area and production of major crops (private peasant holdings, meher seasons). Addis Ababa Ethiopia, The FDRE statistical bulletin Volume 01-532.
  11. CSA (Central Statistical Agency) (2018).  Agricultural sample survey 2015/16 volume V. report on area, production and farm management practice of Belg season crops for private peasant holdings Addis Ababa July, 2018.
  12. Emana, B. and M. Nigussie (2011). "Potato value chain analysis and development in Ethiopia." International Potato Center (CIP-Ethiopia), Addis Ababa, Ethiopia.
  13. Essilfie, F. L., M. T. Asiamah and F. Nimoh (2011). "Estimation of farm level technical efficiency in small scale maize production in the Mfantseman Municipality."
  14. Farrell, M. J. (1957). "The measurement of productive efficiency." Journal of the Royal Statistical Society: Series A (General) 120(3): 253-281.
  15. Greene, W. (2003). "Econometric Analysis”, Pearson Education, Inc., Upper Saddle River, New Jersey. USA."
  16. Guenthner, J. (2010). "Past, present and future of world potato markets: an overview." Potato Journal 37(1/2): 1-8.
  17. Haque, M., N. Tabassum, S. Akter and M. Saha (2015). "Study on Profitability Using Modern Inputs against Traditional for Potato Production at Different Agro-Ecological Zones of Bangladesh." Journal of Environmental Science and Natural Resources 8(2): 83-87.
  18. Hirpa, A., M. P. Meuwissen, A. Tesfaye, W. J. Lommen, A. O. Lansink, A. Tsegaye and P. C. Struik (2010). "Analysis of seed potato systems in Ethiopia." American journal of potato research 87(6): 537-552.
  19. Jote, A., S. Feleke, A. Tufa, V. Manyong and T. Lemma (2018). "Assessing the efficiency of sweet potato producers in the southern region of Ethiopia." Experimental Agriculture 54(4): 491-506.
  20. Meeusen, W. and J. van Den Broeck (1977). "Efficiency estimation from Cobb-Douglas production functions with composed error." International economic review: 435-444.
  21. Nyagaka, D. O., G. A. Obare, J. M. Omiti and W. Nguyo (2010). "Technical efficiency in resource use: Evidence from smallholder Irish potato farmers in Nyandarua North District, Kenya." African Journal of Agricultural Research 5(11): 1179-1186.
  22. Shephard, R. W. (1970). "Theory of cost and production functions Princeton University press." Princeton, New Jersey.
  23. Tadesse, B. (2005). impact of policy reform and institutional transformation on agricultural performance, Peter Lang.
  24. Tobin, J. (1958). "Estimation of relationships for limited dependent variables." Econometrica: journal of the Econometric Society: 24-36.
  25. Umoh, G. S. (2006). "Resource use efficiency in urban farming: An application of stochastic frontier production function." International Journal of Agriculture and Biology 8(1): 38-44.
  26. Xu, X. and S. R. Jeffrey (1998). "Efficiency and technical progress in traditional and modern agriculture: evidence from rice production in China." Agricultural economics 18(2): 157-165.
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    Research Article

    volume 39 issue 3 (september 2019) : 184-189.,   Doi: 10.18805/ag.D-150

    Efficiency, Yield Gaps, and Profitability of Potato (Solanum Tuberosum) Production in Kombolcha District, Oromia National Regional State, Ethiopia

    A
    Alem Mezgebo
    A
    Abadi Teferi
    S
    Shishay Teklay
    G
    Gebretnsae Hagos
    1<div>Department of Agricultural Economics, Adigrat University,&nbsp;Adigrat, Ethiopia</div>
    Cite article:- Mezgebo Alem, Teferi Abadi, Teklay Shishay, Hagos Gebretnsae (2019). Efficiency, Yield Gaps, and Profitability of Potato (SolanumTuberosum) Production in Kombolcha District, OromiaNational Regional State, Ethiopia. Agricultural Science Digest. 39(3): 184-189.. doi: 10.18805/ag.D-150.

    ABSTRACT

    The study assessed potato production efficiency using the stochastic frontier production function. The study also used descriptive statistics to analyze the data. A sample of 120 potato farmers was selected using multistage random sampling techniques. The results showed that farmers used inputs like land, labor, seed, NPS (Nitrogen, Phosphorus, and Sulfur) and Urea fertilizers to produce potato. On average, these farmers were not economically efficient in producing the crop. The average technical, economic and allocative efficiencies were 91%, 46% and 51%, which meant that the average inefficiency appeared 9%, 54%, and 49% respectively. The result also showed that 18.14 quintals per hectare of yields was lost due to inefficiency. Socio-economic and institutional factors determined efficiency scores. The results suggested that policy maker needs to consider these factors affecting efficiency scores.

    REFERENCES

    1. Abdulai, A. and R. Eberlin (2001). "Technical efficiency during economic reform in Nicaragua: evidence from farm household survey data." Economic systems 25(2): 113-125.
    2. Abdulrahman, S., O. Yusuf and A. Suleiman (2015). "Profit efficiency of cocoyam production in Kaduna State, Nigeria." Journal of Experimental Agriculture International: 231-241.
    3. Aigner, D., C. K. Lovell and P. Schmidt (1977). "Formulation and estimation of stochastic frontier production function models." Journal of econometrics 6(1): 21-37.
    4. Alene, A. D. and R. M. Hassan (2006). "The efficiency of traditional and hybrid maize production in eastern Ethiopia: An extended efficiency decomposition approach." Journal of African Economies 15(1): 91-116.
    5. Amara, N., N. Traoré, R. Landry and R. Remain (1999). "Technical efficiency and farmers' attitudes toward technological innovation: The case of the potato farmers in Quebec." Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie 47(1): 31-43.
    6. Assa, M., A.-K. Edriss and G. Matchaya (2013). "Cost efficiency, Morishima, Allen-Uzawa and cross-price elasticities among Irish potato farmers in Dedza District, Malawi." International Journal of Economic Sciences and Applied Research 6(1): 59.
    7. Bifarin, J., T. Alimi, O. Baruwa and O. Ajewole (2010). "Determinants of technical, allocative and economic efficiencies in the plantain (musa spp.)." Production industry. Federal College of Agriculture, Nigeria.
    8. Chepng’etich, E., E. K. Bett, S. O. Nyamwaro and K. Kizito (2014). "Analysis of technical efficiency of sorghum production in lower eastern Kenya: a data envelopment analysis (DEA) approach."
    9. Cromme, N., A. B. Prakash, N. Lutaladio and F. Ezeta (2010). Strengthening potato value chains: technical and policy options for developing countries, Food and Agriculture Organization of the United Nations (FAO).
    10. CSA (Central Statistical Authority) (2014). Agriculture sample survey 2013/2014 (may, 2014). report on area and production of major crops (private peasant holdings, meher seasons). Addis Ababa Ethiopia, The FDRE statistical bulletin Volume 01-532.
    11. CSA (Central Statistical Agency) (2018).  Agricultural sample survey 2015/16 volume V. report on area, production and farm management practice of Belg season crops for private peasant holdings Addis Ababa July, 2018.
    12. Emana, B. and M. Nigussie (2011). "Potato value chain analysis and development in Ethiopia." International Potato Center (CIP-Ethiopia), Addis Ababa, Ethiopia.
    13. Essilfie, F. L., M. T. Asiamah and F. Nimoh (2011). "Estimation of farm level technical efficiency in small scale maize production in the Mfantseman Municipality."
    14. Farrell, M. J. (1957). "The measurement of productive efficiency." Journal of the Royal Statistical Society: Series A (General) 120(3): 253-281.
    15. Greene, W. (2003). "Econometric Analysis”, Pearson Education, Inc., Upper Saddle River, New Jersey. USA."
    16. Guenthner, J. (2010). "Past, present and future of world potato markets: an overview." Potato Journal 37(1/2): 1-8.
    17. Haque, M., N. Tabassum, S. Akter and M. Saha (2015). "Study on Profitability Using Modern Inputs against Traditional for Potato Production at Different Agro-Ecological Zones of Bangladesh." Journal of Environmental Science and Natural Resources 8(2): 83-87.
    18. Hirpa, A., M. P. Meuwissen, A. Tesfaye, W. J. Lommen, A. O. Lansink, A. Tsegaye and P. C. Struik (2010). "Analysis of seed potato systems in Ethiopia." American journal of potato research 87(6): 537-552.
    19. Jote, A., S. Feleke, A. Tufa, V. Manyong and T. Lemma (2018). "Assessing the efficiency of sweet potato producers in the southern region of Ethiopia." Experimental Agriculture 54(4): 491-506.
    20. Meeusen, W. and J. van Den Broeck (1977). "Efficiency estimation from Cobb-Douglas production functions with composed error." International economic review: 435-444.
    21. Nyagaka, D. O., G. A. Obare, J. M. Omiti and W. Nguyo (2010). "Technical efficiency in resource use: Evidence from smallholder Irish potato farmers in Nyandarua North District, Kenya." African Journal of Agricultural Research 5(11): 1179-1186.
    22. Shephard, R. W. (1970). "Theory of cost and production functions Princeton University press." Princeton, New Jersey.
    23. Tadesse, B. (2005). impact of policy reform and institutional transformation on agricultural performance, Peter Lang.
    24. Tobin, J. (1958). "Estimation of relationships for limited dependent variables." Econometrica: journal of the Econometric Society: 24-36.
    25. Umoh, G. S. (2006). "Resource use efficiency in urban farming: An application of stochastic frontier production function." International Journal of Agriculture and Biology 8(1): 38-44.
    26. Xu, X. and S. R. Jeffrey (1998). "Efficiency and technical progress in traditional and modern agriculture: evidence from rice production in China." Agricultural economics 18(2): 157-165.
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