PRODUCTION EFFICIENCY OF SMALLHOLDER MAIZE PRODUCERS IN BORICHA WOREDA OF SIDAMA NATIONAL REGIONAL STATE, ETHIOPIA

In Ethiopia, increasing population pressure and low levels of agricultural productivity have aggravated the food insecurity situation by widening the gap between demand for and supply of food. Increasing productivity and efficiency in crop production could be taken an important step towards attaining food security. This study was aimed to assess the production efficiencies of smallholder maize producers in Boricha Woreda, Sidama National Regional State, Ethiopia. Across sectional data was collected from a total of 306 sample farm households using structured questionnaires was used. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate technical, allocative and economic efficiencies levels, whereas Tobit model was employed to identify factors affecting efficiency levels of the sampled farmers. The stochastic production frontier model result indicated that input variables such as land, labor, pesticide and seed were the significant inputs to increase the quantity of maize output. The estimated mean levels of technical, allocative and economic efficiencies were 62, 54 and 34% respectively, which indicate the presence of inefficiency in maize production in the study area. The result of tobit econometric model showed that, from a total of 12 explanatory variables used in the model, five variables such as education status of household head, farm size, frequency of extension contact, livestock holding and sex of household head had statistically significant influence on the Production efficiency of maize producer farmers in the study area. The result indicated, as there is a room to increase the efficiency of maize producers in the study area. Therefore, the study suggested the above mentioned significant variables have important for policy implications in that development programs may give fruitful attention so as to mitigate the existing level of inefficiency of farmers in the production of maize in the study area.