Technical efficiency of vegetable production among smallholder farmers in Northwest Ethiopia

Vegetables are high value crops for food security and the livelihoods of smallholder farmers in Ethiopia. This study examines the technical efficiency levels and sources of inefficiency in tomato, onion, and potato production amongst smallholder farmers in Amhara region, Northwest Ethiopia. Primary data were collected from 310 farmers, and stochastic frontier analysis (SFA) combined with a beta regression model was employed. The results indicate that land allocation, seed quantity, and fertilizer application positively and significantly affect technical efficiency. The beta regression model reveals that gender, farming experience, tropical livestock units, and market information access reduce inefficiency in tomato production, while the active labor force and dependency ratio increase it. In onion production, gender, farming experience, education, and credit access reduce inefficiency, whereas the active labor force increases it. For potato production, farming experience, market information, extension services, and credit access reduce inefficiency, while distance to market and dependency ratio increase it. The findings underscore the need for optimizing resource allocation, improving land productivity, and providing key inputs like seeds and fertilizers. Policymakers should prioritize credit access, training, market infrastructure, and gender-sensitive policies. Farmers should enhance input usage, seek market information, and adopt modern practices to improve productivity and sustainability.